Interim Results
Close Technology & General VCT PLC
26 September 2006
CLOSE TECHNOLOGY & GENERAL VCT PLC
INTERIM RESULTS
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 six
months to 30 June 2006. This announcement has been approved by the Board of
Directors on 26 September 2006.
FINANCIAL HIGHLIGHTS
The following is the total return of the Company since launch in January 2001.
Ordinary Shares C Shares
Pence per Pence per
share (ii) share (ii)
Shareholder value created per share since launch:
Total dividends paid during the
year ended 31 December 2001 (i) 1.00 -
Total dividends paid during the
year ended 31 December 2002 2.00 -
Total dividends paid during the
year ended 31 December 2003 1.50 -
Total dividends paid during the
year ended 31 December 2004 7.50 -
Total dividends paid during the
year ended 31 December 2005 9.00 -
Total dividends paid during the
period ended 30 June 2006 4.00 -
--------- ---------
Total dividends paid to 30 June
2006 25.00 -
Net asset value at 30 June 2006 113.5 94.4
--------- ---------
Total return to 30 June 2006 138.5 94.4
--------- ---------
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 and compares to the opening net
asset value per share of 94.5 pence (after costs) immediately following the
closing of the Offer.
For further information, please contact:
Patrick Reeve Clemmie Carr
Close Ventures Limited Tavistock Communications
Tel: 020 7422 7830 Tel: 020 7920 3150
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) 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 2006 or 2005. The
financial information for the year ended 31 December 2005 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 PLC raised £14.4m through an Ordinary share issue
launched in January 2001 and a further £35m with a C share issue launched in
November 2005. The Company's strategy is to offer investors the opportunity to
participate in a balanced portfolio of technology and non-technology businesses,
with the investment portfolio broadly split as follows:
•40% in technology companies, with 15% in quoted 'international' stocks
and 25% in unquoted UK technology related companies; and
•60% in unquoted UK non-technology companies.
Investment progress
The key event in the first six months of the year was the successful closing of
the C share issue which was fully subscribed at £35m. On behalf of the Board, I
would like to welcome all of our new shareholders.
Ordinary Share portfolio
After the strong performance of the last two years, where the excellent
performance of the Ordinary Shares was driven in large part by three successful
trade sales and a flotation, the first six months of this year represented a
period of consolidation, and there was a negative total return for the period
of 3.4 pence per share. Some £800,000 was invested in existing and new investee
companies within the Ordinary Share portfolio, further details of which are
given below. Within the existing portfolio, however, provision 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 Lowcosttravel Group
(the online travel business), both of whose sales have increased sharply since
our investment in 2005, and also The Bold Pub Company, whose profits generated
from its freehold estate continued to climb. We anticipate that these strong
performances will in due course be reflected in the valuations.
C Share portfolio
Just under £2m was invested in new investee companies during the first six
months of 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; and Dexela, which has designed a
potentially revolutionary form of imaging system for the screening of breast
cancer.
Results and dividend
At 30 June 2006 the net asset value of the Company's Ordinary Shares was £15.4m
(30 June 2005: £16.4m) equivalent to 113.5p (30 June 2005: 118.5p). Net revenue
return after taxation was £202,000 (2005: £222,000). The second dividend for the
current 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 30 June 2006 the net asset value of the C Shares was £33.5m equivalent to
94.4p per share, compared to opening net asset value of 94.5p per share (after
costs) following completion of the C Share Offer. Net income after taxation was
£226,000 enabling the Company to declare an inaugural dividend for the C Shares
of 0.5p per share.
Both dividends will be paid on 3 November to shareholders on the register at 6
October 2006.
Dr N E Cross
Chairman 26 September 2006
INCOME STATEMENT
Ordinary Shares
Unaudited Unaudited Audited
Six months to 30 June 2006 Six months to 30 June 2005 Year to 31 December 2005
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
------- ------ ----- ------- ------- ----- ------- ------ -----
(Losses)/gains
on investments - (545) (545) - 1,609 1,609 - 2,412 2,412
Investment
income 414 - 414 421 - 421 812 - 812
Investment
management fees (60) (179) (239) (54) (161) (215) (126) (381) (507)
Other expenses (30) - (30) (72) - (72) (128) - (128)
------- ------ ------ ------- ------ ------ ------- ------ ------
Return/(loss)
on ordinary
activities
before tax 324 (724) (400) 295 1,448 1,743 558 2,031 2,589
Tax on ordinary
activities (122) 63 (59) (73) 49 (24) (133) 105 (28)
------- ------ ------ ------- ------ ------ ------- ------ ------
Return/(loss)
attributable
to equity
holders 202 (661) (459) 222 1,497 1,719 425 2,136 2,561
------- ------ ------ ------- ------ ------ ------- ------ ------
Basic and
diluted
return/(loss)
per share
(pence) 1.5 (4.9) (3.4) 1.5 10.5 12.0 3.1 15.4 18.5
------- ------ ------ ------- ------ ------ ------- ------ ------
All of the Company's activities derive from continuing operations.
The total column of this Income Statement represents the profit and loss account
of the Ordinary Shares.
The Company has no recognised gains or losses other than those disclosed above.
Accordingly a statement of total recognised gains and losses is not required.
INCOME STATEMENT
C Shares
Unaudited
Six months to 30 June 2006
Revenue Capital Total
£'000 £'000 £'000
------- ------ ------
Losses on investments - (11) (11)
Investment income 515 - 515
Investment management fees (122) (367) (489)
Other expenses (70) - (70)
------- ------ ------
Return/(loss) on ordinary activities before tax 323 (378) (55)
Tax on ordinary activities (97) 110 13
------- ------ ------
Return/(loss) attributable to equity holders 226 (268) (42)
------- ------ ------
Basic and diluted return/(loss) per share (pence) 1.0 (1.2) (0.2)
------- ------ ------
All of the Company's activities derive from continuing operations.
The total column of this Income Statement represents the profit and loss account
of the C Shares.
The Company has no recognised gains or losses other than those disclosed above.
Accordingly a statement of total recognised gains and losses is not required.
INCOME STATEMENT
Total
Unaudited Unaudited Audited
Six months to 30 June 2006 Six months to 30 June 2005 Year to 31 December 2005
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
------- ------ ----- ------ ------ ----- ------ ------- -----
(Losses)/gains
on investments - (556) (556) - 1,609 1,609 - 2,412 2,412
Investment
income 929 - 929 421 - 421 812 - 812
Investment
management fees (182) (546) (728) (54) (161) (215) (126) (381) (507)
Other expenses (100) (100) (72) - (72) (128) - (128)
------- ------ ------ ------ ----- ----- ------- ------ -----
Return/(loss)
on ordinary
activities
before tax 647 (1,102) (455) 295 1,448 1,743 558 2,031 2,589
Tax on
ordinary
activities (219) 173 (46) (73) 49 (24) (133) 105 (28)
------- ------ ------ ----- ----- ----- ------ ------ -----
Return/(loss)
attributable
to equity
holders 428 (929) (501) 222 1,497 1,719 425 2,136 2,561
------- ------ ------ ---- ----- ------ ------ ----- ----
Basic and
diluted
return/(loss)
per share
(pence) 2.5 (6.1) (3.6) 1.5 10.5 12.0 3.1 15.4 18.5
------- ------ ------ ---- ----- ------ ------ ----- -----
All of the Company's activities derive from continuing operations.
The total column of this Income Statement represents the profit and loss account
of the Company.
The Company has no recognised gains or losses other than those disclosed above.
Accordingly a statement of total recognised gains and losses is not required.
BALANCE SHEET
Ordinary Shares
Unaudited Unaudited Audited
30 June 2006 30 June 2005 31 December 2005
£'000 £'000 £'000
--------- -------- -----------
Fixed asset investments
Qualifying 10,947 8,674 10,438
Non-qualifying 1,757 1,673 1,847
--------- -------- -----------
Total fixed asset investments 12,704 10,347 12,285
Current Assets
Debtors 43 318 45
Cash at bank 3,113 6,446 4,754
--------- -------- -----------
3,156 6,764 4,799
Creditors: amounts falling
due within one year (435) (745) (420)
--------- -------- -----------
Net current assets 2,721 6,019 4,379
--------- -------- -----------
Net assets 15,425 16,366 16,664
--------- -------- -----------
Capital and reserves
Called up share capital 6,795 6,908 6,908
Share premium 165 165 165
Special reserve 5,555 5,785 5,785
Capital redemption reserve 400 287 287
Realised capital reserve 3,751 4,974 4,311
Unrealised capital reserve (1,678) (1,779) (1,027)
Revenue reserve 437 26 235
--------- -------- -----------
Total shareholders' funds 15,425 16,366 16,664
--------- -------- -----------
Net asset value per share
(pence) 113.5 118.5 120.6
--------- -------- -----------
BALANCE SHEET
C Shares
Unaudited
30 June 2006
£'000
-----------
Fixed asset investments
Qualifying 1,938
Non-qualifying 25,309
-----------
Total fixed asset investments 27,247
Current Assets
Debtors 414
Cash at bank 6,131
-----------
6,545
Creditors: amounts falling due within one year (306)
-----------
Net current assets 6,239
-----------
Net assets 33,486
-----------
Capital and reserves
Called up share capital 17,740
Special reserve 15,788
Realised capital reserve (257)
Unrealised capital reserve (11)
Revenue reserve 226
-----------
Total shareholders' funds 33,486
-----------
Net asset value per share (pence) 94.4
-----------
BALANCE SHEET
Total
Unaudited Unaudited Audited
30 June 2006 30 June 2005 31 December 2005
£'000 £'000 £'000
--------- --------- ----------
Fixed asset investments
Qualifying 12,885 8,674 10,438
Non-qualifying 27,066 1,673 1,847
--------- --------- ----------
Total fixed asset investments 39,951 10,347 12,285
Current Assets
Debtors 457 318 45
Cash at bank 9,244 6,446 4,754
--------- --------- ----------
9,701 6,764 4,799
Creditors: amounts falling
due within one year (741) (745) (420)
--------- --------- ----------
Net current assets 8,960 6,019 4,379
--------- --------- ----------
Net assets 48,911 16,366 16,664
--------- --------- ----------
Capital and reserves
Called up share capital 24,535 6,908 6,908
Share premium 165 165 165
Special reserve 21,343 5,785 5,785
Capital redemption reserve 400 287 287
Realised capital reserve 3,494 4,974 4,311
Unrealised capital reserve (1,689) (1,779) (1,027)
Revenue reserve 663 26 235
--------- --------- ----------
Total shareholders' funds 48,911 16,366 16,664
--------- --------- ----------
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Ordinary Shares
Called up Capital Realised Unrealised
share Share Special redemption capital capital Revenue
capital premium reserve reserve reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1 July 2005 6,908 165 5,785 287 4,974 (1,779) 26 16,366
Net realised gains on investments in
the year - - - - 54 - - 54
Capitalised investment management
and performance fees - - - - (220) - - (220)
Tax relief on costs charged to capital - - - - 56 - - 56
Movement in unrealised appreciation - - - - - 752 - 752
Revenue return attributable
to shareholders - - - - - - 209 209
Dividends - - - - (553) - - (553)
As at 31 December 2005 6,908 165 5,785 287 4,311 (1,027) 235 16,664
Net realised gains on investments in
the year - - - - 106 - - 106
Capitalised investment management
and performance fees - - - - (179) - - (179)
Tax relief on costs charged
to capital - - - - 63 - - 63
Share redemptions (113) - (230) 113 - - - (230)
Movement in unrealised
appreciation - - - - - (651) - (651)
Revenue return attributable
to shareholders - - - - - - 202 202
Dividends - - - - (550) - - (550)
------- ------- ------- ------- ------- ------- ------- -------
As at 30 June 2006 6,795 165 5,555 400 3,751 (1,678) 437 15,425
======= ======= ======= ======= ======= ======= ======= =======
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
C Shares
Called up Capital Realised Unrealised
share Share Special redemption capital capital Revenue
capital premium reserve reserve reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 31 December 2005 - - - - - - - -
Capitalised investment management
and performance fees - - - - (367) - - (367)
Tax relief on costs charged
to capital - - - - 110 - - 110
Issue of share capital 17,740 17,740 - - - - - 35,480
Issue costs - (1,952) - - - - - (1,952)
Cancellation of share premium
account - (15,788) 15,788 - - - - -
Movement in unrealised
appreciation - - - - - (11) - (11)
Revenue return - - - - - - 226 226
------- ------- ------- ------- ------- ------- ------- -------
As at 30 June 2006 17,740 - 15,788 - (257) (11) 226 33,486
======= ======= ======= ======= ======= ======= ======= =======
CASH FLOW STATEMENT
Ordinary Shares
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2006 30 June 2005 31 December 2005
£'000 £'000 £'000
-------- -------- ----------
Operating activities
Investment income received 243 398 614
Deposit interest received 52 42 112
Other cash receipt 112 - 174
Investment management fees
paid (130) (158) (389)
Other cash payments (69) (84) (136)
-------- -------- ----------
Net cash inflow from
operating activities 208 198 375
Taxation
UK corporation tax paid 2 - (25)
Capital expenditure and financial
investments
Purchase of investments (1,404) (3,484) (4,599)
Disposal of investments 332 5,159 5,537
-------- -------- ----------
Net cash (outflow)/inflow
from investing activities (1,072) 1,675 938
Equity dividends paid
Dividends paid on ordinary
shares (550) (139) (1,244)
-------- -------- ----------
Net cash (outflow)/inflow
before financing (1,412) 1,734 44
-------- -------- ----------
Financing
Cancellation of share capital (229) (107) (109)
-------- -------- ----------
Net cash outflow from
financing (229) (107) (109)
-------- -------- ----------
Cash (outflow)/inflow in the year (1,641) 1,627 (65)
-------- -------- ----------
CASH FLOW STATEMENT
C Shares
Unaudited
Six months to
30 June 2006
£'000
--------
Operating activities
Investment income received 6
Deposit interest received 150
Investment management fees paid (421)
Other cash payments (165)
--------
Net cash outflow from operating activities (430)
Taxation
UK corporation tax paid -
Capital expenditure and financial investments
Purchase of investments (26,980)
Disposals of investments -
--------
Net cash outflow from investing activities (26,980)
Equity dividends paid
Dividends paid on C shares -
--------
Net cash outflow before financing (27,410)
--------
Financing
Issue of share capital (net of costs) 33,541
--------
Net cash inflow from financing 33,541
--------
Cash inflow in the year 6,131
--------
CASH FLOW STATEMENT
Total
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2006 30 June 2005 31 December 2005
£'000 £'000 £'000
---------- ---------- ----------
Operating activities
Investment income received 249 398 614
Deposit interest received 202 42 112
Other cash receipt 112 - 174
Investment management fees
paid (551) (158) (389)
Other cash payments (234) (84) (136)
---------- ---------- ----------
Net cash (outflow)/inflow from
operating activities (222) 198 375
Taxation
UK corporation tax paid 2 - (25)
Capital expenditure and financial
investments
Purchase of investments (28,384) (3,484) (4,599)
Disposals of investments 332 5,159 5,537
---------- ---------- ----------
Net cash (outflow)/inflow from
investing activities (28,052) 1,675 938
Equity dividends paid
Dividends paid on ordinary
shares (550) (139) (1,244)
---------- ---------- ----------
Net cash (outflow)/inflow
before financing (28,822) 1,734 44
---------- ---------- ----------
Financing
Issue of share capital (net of
costs) 33,541 - -
Cancellation of share capital (229) (107) (109)
---------- ---------- ----------
Net cash inflow/(outflow) from
financing 33,312 (107) (109)
---------- ---------- ----------
Cash inflow/(outflow) in the
year 4,490 1,627 (65)
---------- ---------- ----------
This information is provided by RNS
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