Interim Results
Close Technology & General VCT PLC
05 September 2002
CLOSE TECHNOLOGY & GENERAL VCT PLC
INTERIM RESULTS
5 September 2002
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 interim results for the six months to
30 June 2002.
Financial Highlights:
• NAV per Ordinary Share of 89.9 pence (2001: 94.5 pence)
• Interim dividend of 1.0 pence per Ordinary Share (2001: 1.0 pence)
• £2.39 million in qualifying investments made during the period
Dr Neil Cross, Chairman, commented: 'The Company has the aim of counterbalancing
the growth potential of a broad technology portfolio with the stability and
income generating characteristics of a conservatively structured portfolio of
non-technology investments. Trading conditions, particularly in the technology
sector, remain difficult but we see growth prospects on both sides of the
Company in the longer term. Despite current market conditions, we remain
committed to a steady dividend policy.'
Patrick Reeve, Managing Director of Close Venture Management, Manager of the
Close Technology & General VCT PLC added: 'We are pleased with the Company's
investment progress, and the resilience that the Company has shown during
difficult market conditions is testament to our low risk investment strategy.'
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 subsidiary of Close Brothers Investment
Limited and is regulated by the FSA.
3) Audited Financial Statements for the period will be sent to shareholders
shortly.
4) The financial information set out in the announcement does not
constitute the Company's statutory accounts for the six months ended 30 June
2002 or 2001. The financial information for the year ended 31 December 2001 is
derived from the statutory accounts delivered to the Registrar of Companies.
The auditors reported on those accounts; their report was unqualified and did
not contain a statement under s237 (2) or (3) of the Companies Act 1985.
Chairman's Statement
Introduction
Close Technology & General VCT has raised £14.3 million from private investors
since its launch in January 2001 and offers investors the opportunity to
participate in a balanced portfolio of technology and non-technology businesses.
Once fully invested, it is anticipated that the Company's investment portfolio
will be split approximately as follows:
• 50% to be invested in technology companies, of which:
• 20% will be invested in quoted investments in international
technology stocks; and
• 30% will be invested in unquoted UK technology-related companies.
• 50% to be invested in unquoted investments in UK non-technology
companies.
Investment Progress
The six months to 30 June 2002 have been a period of great market volatility,
with the FTSE 100 Index falling 10.8%, the techMARK 100 Index falling 41% and
the Nasdaq 100 Index by 33.3%. In these difficult conditions, the Company
recorded a negative return (comprising income and capital) of 9.6% over the
period and its interim dividend of 1 penny per share has been maintained.
At 30 June, qualifying investments by cost amounted to 52% of net funds raised,
or £7.26 million. Within this, the Company's portfolio of unquoted technology
investments now comprises 10 companies valued at £2.3 million, divided between
private businesses and companies quoted on AIM. Although the value of these has
fallen we believe that there is considerable potential within the portfolio. A
further £1.38 million has been invested subsequent to the half year in
qualifying investments.
The portfolio of non-technology investments has also grown, and provides a
useful counterbalance to the more volatile, though potentially higher growth,
technology portfolio. Investments range from the health care sector through to
sectors such as defence, retail and leisure, with many owning freehold or long
leasehold property as their principal asset.
Some £1.7 million is now invested in the non-qualifying portfolio of
international quoted technology stocks, leaving approximately £800,000 still to
be invested. Although the continued decline in the technology sector worldwide
has led to a fall in value to £1.26 million at 30 June 2002, this fall has been
partly counterbalanced by earlier profits taken on disposals, which at the half
year amounted to £465,000.
Outlook
The Company has the aim of counterbalancing the growth potential of a broad
technology portfolio with the stability and income generating characteristics of
a conservatively structured portfolio of non-technology investments. Trading
conditions, particularly in the technology sector, remain difficult but we see
growth prospects on both sides of the Company in the longer term. Despite
current market conditions, we remain committed to a steady dividend policy.
Results and Dividend
As at 30 June 2002 the net asset value of the Company was £12.89 million (2001:
£13.27million), equivalent to 89.9 pence per share (2001: 94.5p per share). Net
income after taxation was £169,000 for the period enabling the board to declare
a net interim dividend of 1.0 pence per share (2001: 1.0p per share to those
shareholders who invested prior to 16 January 2001 and 0.5 pence per share to
those shareholders who invested subsequent to 16 January 2001). Dividends will
be payable on 9 October 2002 to those shareholders registered on 11 September
2002.
Dr N E Cross
Chairman 5 September 2002
Portfolio Summary
The following is a summary of the qualifying investments made to date.
Unquoted Technology Investments Invested to Valuation at 30
date at cost June 2002
£'000 £'000
Active Hotels Ltd
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 is now in the process
of building up its distribution partners. 500 500
Intelligent Environment Group PLC (AIM Listed)
The company's activity is the provision of integrated e-business
software and services to allow Credit Cards and Wealth Management organisations
to disseminate information, integrate disparate systems and deliver 298 404
market leading e-business applications
Advanced Medical Solutions Plc (AIM Listed)
Advanced Medical Solutions designs, develops and manufactures novel high
performance polymers (both natural and synthetic) for the healthcare 300 309
market
Peakdale Molecular Ltd
Peakdale Molecular is a Derbyshire based contract chemistry company,
developing and providing pharmaceutical customers with novel compounds for use
in later stage drug discovery. 267 264
sparesFinder Ltd
sparesFinder has developed a software suite which enables
multinational, multi-site customers to trace and control their inventory. 500 250
Tepnel Life Sciences PLC (AIM Listed)
Tepnel Life Sciences develops automated systems for DNA purification and
offers a broad range of DNA related services such as genotyping. 328 193
Deltex Medical Group Plc (AIM Listed)
Deltex develops, manufactures and markets the 'CardioQ', an oesophageal
device which monitors the heart's response to medical treatment. 191 187
Pilat Media Global PLC (AIM Listed)
The company recently floated on AIM and develops, markets and supports
business operations software for the media industry 150 146
Warthog PLC (AIM Listed)
Warthog is a leading independent games software developer 90 57
OneClickHR plc (AIM Listed)
OneClickHR develops, markets and sells human resource software, offering
companies a range of solutions enabling them to manage their HR functions 58 25
Total unquoted qualifying technology investments 2,682 2,335
percentage of Portfolio on cost 19%
Target investment level 30%
Invested to Valuation at 30
date at cost June 2002
£'000 £'000
Unquoted Non-Technology Investments
Consolidated Communications Management Ltd
Consolidated Communications is a management buy-out of an established
public relations company with a broad range of 'blue chip' clients. 1,000 1,040
The Q Garden Company Ltd
The Q Garden Company is an emerging chain of garden centres
based in the south of England. 1,000 1,014
Leisure Links International Ltd
Leisure Links was formed to manage and operate golf clubs. It
currently owns two courses, the Test Valley course near Maidenhead and the 950 959
Chelsfield Downs course near Stevenage.
Careforce Staffing Group Ltd
Careforce Staffing 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. 600 603
Peakdale Molecular Ltd 533 556
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.
Fastrack Resources Group Ltd
Fastrack provides recruitment services in respect of both temporary
and permanent staff, with a particular specialisation in the rail 500 424
sector.
Total unquoted qualifying non-technology investments 4,583 4,596
Percentage of Portfolio on cost 33%
Target investment level 50%
Total qualifying investments 7,265 6,931
Percentage of Portfolio on cost 52%
Target qualifying investment level 80%
Qualifying investments made subsequent to 30 June 2002
Invested at cost
Investment Portfolio £'000
Automotive Technik Ltd Unquoted non-technology 720
Fastrack Resources Group Ltd Unquoted non-technology 160
Cassium Technologies Ltd Unquoted technology 500
Total invested 1,380
Non-qualifying technology investments
Ten largest holdings by value of non-qualifying international quoted technology
stocks.
Company Sector Invested to Valuation at 30
date at cost June 2002
£'000 £'000
Applied Materials Inc Silicon products 97 124
Network Associates Inc Software 84 101
Business Objects E-business intelligence 66 96
Atmel Corp Semi-conductors 70 74
Synopsis Inc Chip Technology 51 72
Taiwan Semiconductor Ads Semi-conductors 45 68
Take Two Interactive Software 70 68
Tecnomatix Ltd Software 74 67
Digital River Inc E-commerce outsourcing 29 56
Melexis Microelectronics 56 54
642 780
19 other non-qualifying international quoted technology 1,064 481
stocks
Total non-qualifying international quoted technology stocks 1,706 1,261
Percentage of Portfolio on cost 12%
Target non-qualifying investment level 20%
Floating Rate Notes
Bradford & Bingley 1,499 1,499
Barclays Bank 1,499 1,499
Alliance & Leicester 1,500 1,499
4,498 4,497
Total non-qualifying investments 6,204 5,758
Percentage of Portfolio on cost 44%
Target investment level 20%
Unaudited Statement of Total Return
(incorporating the profit and loss account)
for the six months to 30 June 2002
Six months to Period to Period to
30 June 2002 30 June 2001 31 December 2001
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(Losses) /
gains on - (1,454) (1,454) - - - - 997 997
investments
Investment 306 - 306 218 - 218 504 - 504
income
Investment
management
fees (43) (130) (173) (37) (110) (147) (87) (260) (347)
Other expenses (52) - (52) (51) - (51) (108) - (108)
Return on
ordinary
activities
before tax 211 (1,584) (1,373) 130 (110) 20 309 737 1,046
Tax on
ordinary (42) 26 (16) (26) 22 (4) (62) 52 (10)
activities
Return
attributable
to equity
shareholders 169 (1,558) (1,389) 104 (88) 16 247 789 1,036
Dividends (144) - (144) (88) - (88) (230) - (230)
Transfer
to/(from) 25 (1,558) (1,533) 16 (88) (72) 17 789 806
reserves
1.2p (10.9) p (9.7) p 0.9p (0.8)p 0.1p 2.0p 6.4p 8.4p
All revenue and capital items in the above statement derive from continuing
operations.
The revenue column of this statement is the profit and loss account of the
company.
Unaudited Summary Balance Sheet
for the six months to 30 June 2002
30 June 2002 30 June 2001 31 December 2001
£'000 £'000 £'000
Fixed asset investments
Qualifying investments
Unquoted technology 1,014 500 1,767
Unquoted non-technology 4,596 1,001 2,564
AIM technology stocks 1,321 - 500
Total qualifying investments 6,931 1,501 4,831
Non-qualifying investments
Quoted international technology stocks 1,261 157 2,430
Floating Rate Notes 4,497 - -
Total non-qualifying investments 5,758 157 2,430
Total investments 12,689 1,658 7,261
Current assets
Debtors 30 4 18
Short term money market deposits 453 11,975 7,208
483 11,979 7,226
Creditors: due within one year (281) (372) (241)
Net current assets 202 11,607 6,985
Net assets 12,891 13,265 14,246
Represented by:
Share capital 7,170 7,019 7,080
Share premium account 165 6,318 73
Special reserve 6,258 - 6,267
Capital redemption reserve 25 - 20
Capital reserve
realised 149 (88) 91
unrealised (918) - 698
Revenue reserve 42 16 17
Total equity shareholders' funds 12,891 13,265 14,246
Net asset value per share 89.9p 94.5p 100.6p
Unaudited Cash Flow Statement
for the six months to 30 June 2002
Six months to Period to Period to
30 June 2002 30 June 2001 31 December 2001
£'000 £'000 £'000
Operating activities
Investment income received 145 - 48
Deposit interest received 42 212 405
Investment management fees paid (109) (49) (337)
Other cash payments (62) (25) (69)
Net cash inflow from operating 16 138 47
activities
Taxation
UK corporation tax paid - - -
Investing activities
Purchase of investments (7,262) (1,500) (6,888)
Disposals of investments 454 - 687
Net cash outflow from investing (6,808) (1,500) (6,201)
activities
Equity dividends paid
Dividends paid on ordinary shares (142) - (88)
Net cash outflow before financing (6,934) (1,362) (6,240)
Financing
Issue of shares net of expenses 188 13,337 13,498
Redemption of own shares (9) - (32)
Cancellation of share premium - - (18)
Net cash inflow from financing 179 13,337 13,448
(Decrease)/increase in cash (6,755) 11,975 7,208
This information is provided by RNS
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