Interim Results
Close Technology & General VCT PLC
22 September 2005
CLOSE TECHNOLOGY & GENERAL VCT PLC
INTERIM RESULTS
Close Technology & General VCT PLC ('the Company'), today announces its interim
results for the six months to 30 June 2005.
Financial Highlights:
•NAV per Ordinary Share of 118.5 pence (2004: 108.4 pence (restated))
•Interim dividend paid in July 2005 of 4.0 pence per share (2004:
first interim dividend paid of 1.0 pence)
•A further interim dividend of 4 pence per share will be paid on 4 November
2005 to shareholders on the register on 7 October 2005.
For further information, please contact:
Patrick Reeve/ Will Fraser-Allen Clemmie Carr
Close Venture Management Limited Tavistock Communications
Tel: 020 7422 7830 Tel: 020 7920 3150
Notes to Editors:
1) Close Technology & General VCT PLC is managed by Close Venture Management
Limited.
2) Close Venture Management Limited is a subsidiary of Close Brothers Group
Plc and is regulated by the FSA.
3) Unaudited interim reports 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 2005 or
2004. The financial information for the year ended 31 December 2004 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 £14.4 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.
The Company's investment portfolio is currently split by value approximately as
follows:
• 30% invested in technology companies, of which:
- 12% in quoted investments in international technology stocks;
- 18% in unquoted UK technology-related companies,
• 70% in unquoted investments in UK non-technology companies.
Investment progress
The first six months of the year has seen excellent further progress in the
Company's portfolio, leading to another strong rise in asset value. This was
principally due to the sale of investments; first in Automotive Technik
(Holdings) Limited, a manufacturer of military vehicles, which realised a profit
of £2.05 million, and second in Cassium Technologies Limited, a software
services provider, for a profit of £790,000. This more than offset provisions in
other parts of the portfolio.
The main new investments in the period were £500,000 in Xceleron, a spin-out
from York University, which provides analysis services to the pharmaceutical
industry, £667,000 in Q Gardens, which secured us a first charge over the 7 acre
freehold garden centre in Fareham, and £500,000 in Weybridge Limited, which is
developing a health and fitness club on a 30 acre freehold site in Weybridge,
Surrey. Your Company also invested in an additional number of companies which
own and operate freehold pubs.
As a result of the introduction of revised Financial Reporting Standards for
periods commencing on or after 1 January 2005, dividends to shareholders are
recognised in the accounts in the period in which they are approved, rather than
the period in which they are proposed, as was previously the case. It is
intended that the 'interim' and 'final' dividends will be replaced by two
interim dividends. In the current financial year, however, shareholders will
receive three dividends. The first, of 1 penny, representing last year's 'final'
dividend was approved on 19 April 2005. The second, of 4 pence, was paid on
14 July 2005 to shareholders on the register on 24 June 2005. The third, which
is also 4 pence, was approved by the Board of Directors on 12 September 2005
and will be paid on 4 November 2005 to those shareholders on the register on 7
October 2005. It is intended that, so far as is practicable and if the Company's
performance permits, the Company will pay total dividends of 8 pence per annum
for future periods.
New C Share issue
As a result of our successful investment record, it is intended to increase the
scale of the Company by a new issue of C shares. The issue, which is currently
anticipated to raise £25 million, will be subject to shareholders' approval at
an extraordinary general meeting to be scheduled for November 2005. Further
details will be sent to shareholders over the next few weeks.
Results and dividend
As at 30 June 2005 the net asset value of the Company was £16.4 million (30 June
2004 restated: £15.2 million), equivalent to 118.46 pence per share (30 June
2004 restated: 108.4 pence per share). Net income after taxation was £222,000
for the period, which enabled the Board to pay a net interim revenue dividend of
2.0 pence per share which was combined with a capital dividend of 2.0 pence per
share. This was paid on 14 July 2005 (first interim 2004: 1 pence per share).
Dr N E Cross
Chairman 21 September 2005
Statement of total return
for the six months to 30 June 2005
Unaudited Unaudited Audited
Six months to Six months to, Year to,
30 June 2005 30 June 2004 31 December 2004
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses)
on investments - 1,609 1,609 - (17) (17) - 1,274 1,274
Investment
Income 421 - 421 305 - 305 670 - 670
Investment
management
fees (54) (161) (215) (50) (150) (200) (104) (312) (416)
Other expenses (72) - (72) (64) - (64) (126) - (126)
Return/(loss)
on ordinary
activities
before tax 295 1,448 1,743 191 (167) 24 440 962 1,402
Tax on
ordinary
activities (73) 49 (24) (45) 38 (7) (101) 78 (23)
Return/(loss)
attributable
to equity
shareholders 222 1,497 1,719 146 (129) 17 339 1,040 1,379
Amounts
recognised as
distributions
to equity
shareholders
in the period (415) (276) (691) (215) - (215) (353) (699) (1,052)
Transfer
(from)/to
reserves (193) 1,221 1028 (69) (129) (198) (14) 341 327
Return per
share (pence) 1.5 10.5 12.0 1.0 (0.9) 0.1 2.4 7.4 9.8
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued during the period.
*Comparative figures have been restated in accordance with FRS 21 in respect of
declared dividends.
Balance sheet
as at 30 June 2005
Unaudited Unaudited Audited
30 June 2005 30 June 2004 31 December 2004
(Restated)* (Restated)*
£'000 £'000 £'000
Fixed asset investments
Qualifying investments 8,674 12,923 9,534
Non-qualifying investments 1,673 1,426 1,328
Total fixed asset investments 10,347 14,349 10,862
Current assets
Debtors 318 55 61
Cash at bank 6,446 993 4,819
6,764 1,048 4,880
Creditors: amounts falling
due within one year (745) (213) (117)
Net current assets 6,019 835 4,763
Total assets less current
liabilities 16,366 15,184 15,625
Capital and reserves
Called up share capital 6,908 7,004 6,958
Share premium 165 165 165
Special reserve 5,785 5,978 5,894
Capital redemption reserve 287 191 237
Realised capital reserve 4,974 (777) 2,722
Unrealised capital reserve (1,779) 2,392 (637)
Revenue reserve 26 231 286
Total equity shareholders'
funds 16,366 15,184 15,625
Net asset value per share
(pence) 118.5 108.4 112.3
*Comparative figures have been restated in accordance with FRS21 in respect of
declared dividends.
The interim information was approved by the Board of Directors on 21 September
2005.
Signed on behalf of the Board of Directors by
Dr N E Cross
Chairman
Cash flow statement
for the six months to 30 June 2005
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2005 30 June 2004 31 December
2004
£'000 £'000 £'000
Operating activities
Investment income received 398 160 593
Deposit income received 42 10 50
Investment management fees
paid (158) (235) (480)
Other cash payments (84) (91) (119)
Net cash inflow/(outflow)
from 198 (156) 44
operating activities
Taxation
UK corporation tax paid - 4 (8)
Capital expenditure and financial
investment
Purchase of investments (3,484) (762) (2,959)
Disposal of investments 5,159 801 7,635
Net cash inflow from
investing activities 1,675 39 4,676
Equity dividends paid
Dividends paid on ordinary
shares (139) (212) (1,052)
Net cash inflow/(outflow)
before financing 1,734 (325) 3,660
Financing
Cancellation of shares (107) (192) (351)
Net cash outflow from
financing (107) (192) (351)
Increase/(decrease) in cash
in the period 1,627 (517) 3,309
_______________________________________________________________________________
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