Final Results
Close Technology & General VCT PLC
20 April 2007
CLOSE TECHNOLOGY & GENERAL VCT PLC
PRELIMINARY RESULTS
20 April 2007
Close Technology & General VCT PLC ('the Company'), which offers investors the
opportunity to participate in a balanced portfolio of technology and
non-technology businesses, today announces preliminary results for the year
ended 31 December 2006. This announcement has been approved by the Board of
Directors 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 0.5
Net 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 0.5
2006
Total dividends paid to 31 December 29.0 0.5
2006
Net asset value per share as at 31 December 114.4 94.9
2006
Total return at 31 December 2006 143.4 95.4
In addition to the dividends summarised above, the Directors have declared a
First Dividend of 4 pence per Ordinary share and 1 pence per C share to be paid
on 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-Thomas
Close Ventures Limited Peregrine Communications Group
Tel: 020 7422 7831 Tel: 020 7223 1552
CHAIRMAN'S STATEMENT
I am pleased to present the results for the year to 31 December 2006. As
indicated at the time of the interim results, this year has been a period of
consolidation for the Ordinary shares after the excellent performance over the
previous 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 a
total return of 1.4 pence (2005: 18.5 pence). After payment of 8 pence per
share in dividends during the period, in line with your Company's distribution
policy, net asset value per share fell from 120.6 pence at the previous year end
to 114.4 pence.
Some £932,000 was invested in qualifying existing and new investee companies
within the Ordinary share portfolio. Small provisions needed to be made against
two investments, Peakdale Molecular, and Evolutions Television (which was
reduced to cost). In both cases, previous strong growth slowed in the early
months of the year. Other businesses, however, continued to perform strongly,
in particular Xceleron (the drugs testing business), and Pilat Media Global (IT
systems for TV broadcasters). Profits of £143,000 were realised on our small
portfolio of AIM stocks, while the international quoted technology stocks
realised profits of £154,000.
Subsequent to the year end, and not included in these results, a recommended
offer was received for Careforce, resulting in an uplift of £300,000 and
realising capital profits of £606,000. Also, since the year end, the Ordinary
shares 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 phone
manufacturers worldwide; Blackbay, which provides systems for field force and
supply chain logistics; Dexela, which has designed a potentially revolutionary
form of imaging system for the screening of breast cancer; Helveta, which
provides tracking systems to encourage the sustainable management of tropical
hardwood resources; and Xceleron, where second round expansion finance was
provided for this world-leading provider of drug development services. Asset
based investments included the provision of expansion finance to two of our
existing pub companies.
Since the year end, the C shares have invested a further £4,625,000 in a mixture
of sectors.
International quoted technology stocks
As we explain in more detail in the Directors' Report of the Report and
Financial Statement, your board is proposing that the current investment policy,
whereby 15 per cent of the investment portfolio is invested in quoted
international technology stocks and 25 per cent in unquoted technology-related
companies, be replaced by a new policy. Under this new policy, up to 40 per
cent of the VCT's portfolio will be invested solely in unquoted UK
technology-related companies, with no longer any international quoted element.
This proposal follows a review of public equity technology investment and a
change of emphasis within Close Investments, the Company's Technology Adviser,
away from offering direct technology investment capabilities. This in turn led
your Board to undertake a review of the Company's ongoing investment policy. In
view of the strong performance of your Company's unquoted technology
investments, and the breadth that has now been built up in the unquoted
investment portfolio as a whole, it is your Board's view that the proposed
change in policy would be in the interests of Shareholders. Resolution 5 to be
proposed at the forthcoming Annual General Meeting will allow shareholders to
vote 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 December
2005: 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 per
Ordinary share of which 1.5p will be paid out of revenue profits and 2.5p paid
out of capital profits.
As at 31 December 2006, the net asset value of the C shares was £33.7m
equivalent to 94.9p per share. Net income after taxation was £663,000 enabling
the Company to declare a first dividend for the new financial year of 1 pence
per share.
Both dividends will be paid on 25 May 2007 to shareholders on the register at 4
May 2007.
Overall, we are encouraged by the progress in both portfolios and the prospects
going forward.
Dr Neil Cross
Chairman
20 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) 202 202 199 199
investments - - -
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) 715
activities before tax
Tax (charge)/credit on
ordinary
activities (219) 114 (105) (284) 221 (63) (503) 335 (168)
Return attributable to 439 (240) 199 663 (315) 348 1,102 (555) 547
shareholders
Basic and diluted return 3.2 (1.8) 1.4 2.3 (1.1) 1.2 5.5 (2.9) 2.6
per share (pence)
(excluding Treasury
shares)
The total column of this Income Statement represents the profit and loss account
of the Company. The supplementary revenue and capital columns have been prepared
in accordance with the Association of Investment Trust Companies' Statement of
Recommended 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 as
disclosed above. Accordingly a statement of total recognised gains and losses is
not 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 2,589
activities before tax
Tax (charge)/credit on (133) 105 (28) - - - (133) 105 (28)
ordinary
activities
Return attributable to 425 2,136 2,561 - - - 2,136 2,561
shareholders 425
Basic and diluted return 3.1 15.4 18.5 - - - 3.1 15.4 18.5
per share (pence)
The total column of this Income Statement represents the profit and loss account
of the Company. The supplementary revenue and capital columns have been prepared
in accordance with the Association of Investment Trust Companies' Statement of
Recommended 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 as
disclosed above. Accordingly a statement of total recognised gains and losses is
not 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 investments
Qualifying 10,965 3,116 14,081
Non-qualifying 2,332 28,430 30,762
Total fixed asset investments 13,297 31,546 44,843
Current assets
Debtors 23 332 355
Cash 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 reserves
Called up share capital 6,795 17,740 24,535
Share premium 165 - 165
Special reserve 5,554 15,768 21,322
Capital redemption reserve 400 - 400
Own Treasury shares reserve (56) - (56)
Realised capital reserve 3,432 (505) 2,927
Unrealised 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 94.9
Treasury shares)
The financial statements were approved by the Board of Directors on 20 April
2007.
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 investments
Qualifying 10,438 - 10,438
Non-qualifying 1,847 - 1,847
Total fixed asset investments 12,285 - 12,285
Current assets
Debtors 45 - 45
Cash 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 reserves
Called up share capital 6,908 - 6,908
Share premium 165 - 165
Special reserve 5,785 - 5,785
Capital redemption reserve 287 - 287
Own Treasury shares reserve - - -
Realised capital reserve 4,311 - 4,311
Unrealised 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 - - 2,694
investments in the year
Capitalised investment - - - - - (381) - - (381)
management and
performance fees
Tax relief on costs - - - - - 105 - - 105
charged to capital
Share redemptions (50) - (109) 50 - - - - (109)
Movement in unrealised - - - - - - (279) - (279)
appreciation
Revenue return - - - - - - - 425 425
attributable 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 - - 246
investments in the year
Capitalised investment - - - - - (351) - - (351)
management and
performance fees
Tax relief on costs - - - - - 114 - - 114
charged to capital
Share redemptions (113) - (231) 113 - - - - (231)
Purchase of own shares - - - - (56) - - - (56)
for Treasury
Movement in unrealised - - - - - - (249) - (249)
appreciation
Revenue return - - - - - - - 439 439
attributable 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 - 190
appreciation
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 activities
Investment income received 621 750 1,371
Deposit income received 102 314 416
Investment 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 paid
Dividends paid on ordinary shares (1,091) (177) (1,268)
Net cash outflow before financing (2,095) (31,254) (33,349)
Financing
Issue of share capital (net of costs) - 33,513 33,513
Purchase 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 activities
Investment income received 614 - 614
Deposit income received 112 - 112
Other cash received 174 174
Investment management fees paid (389) - (389)
Other cash payments (136) -
(136)
Net cash inflow from operating activities 375 - 375
Taxation
UK corporation tax paid (25) - (25)
Capital expenditure and financial investments
Purchase of investments (4,599) - (4,599)
Disposals of investments 5,537 - 5,537
Net cash inflow from investing activities 938 - 938
Equity dividends paid
Dividends paid on ordinary shares (1,244) - (1,244)
Net cash inflow before financing 44 - 44
Financing
Issue 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 Financial
Services Authority.
3) The financial information set out in this announcement does not
constitute the Company's statutory accounts for the year ended 31 December 2006
or 2005.
4) The financial information for the year ended 31 December 2005 is derived
from the statutory accounts for that year delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was unqualified
and 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 been
derived from the statutory accounts for the year which will be delivered to the
Registrar of Companies shortly. The auditors reported on those accounts; their
report 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 the
accounting policies set out in the Company's financial statements for the year
ended 31 December 2005.
7) There were no changes in equity other than those arising from capital
transactions with owners and distributions to owners.
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