Interim Results
Close Technology & General VCT PLC
26 September 2007
26 September 2007
CLOSE TECHNOLOGY & GENERAL VCT PLC
Announcement of interim results for the six months ended 30 June 2007. This
announcement does not constitute the interim report and accounts and these can
be accessed via www.closeventures.co.uk
Close Technology & General VCT PLC ('the Company'), managed by Close Ventures
Limited, today announces the results for the six months ended 30 June 2007. The
announcement has been approved by the Board of Directors on 26 September 2007.
Financial Highlights
Ordinary Shares Ordinary Shares C Shares C Shares
30 June 2007 30 June 2006 30 June 2007 30 June 2006
Net asset value per share (pence) 115.9 113.5 93.4 94.4 (i)
Pence per Pence per C
Ordinary share share
(ii) (ii)
Shareholder value created per share since launch:
Total dividends paid during the year ended 31 December -
2001 (iii) 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 year ended 31 December
2006 8.00 0.50
Total dividends paid during the six months ended 30
June 2007 4.00 1.00
Total dividends paid to 30 June 2007 33.00 1.50
Net asset value at 30 June 2007 115.9 93.4
Total return to 30 June 2007 148.9 94.9
Notes
(i) Compares to the opening net asset value per share of 94.5 pence
(after costs) immediately following the closing of the Offer.
(ii) Excludes tax benefits upon subscription.
(iii)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.
In addition to the dividends paid as detailed, the Directors have declared a
second dividend of 4 pence per Ordinary Share (2 pence to be paid out of revenue
profits and 2 pence out of capital profits) and 1.5 pence per C Share (out of
revenue profits) to be paid on 2 November 2007 to shareholders on the register
as at 5 October 2007.
For further information, please contact:
Patrick Reeve/ Emil Gigov Roddi Vaughan-Thomas
Close Ventures Limited Peregrine Communications Group
Tel: 020 7422 7830 Tel: 020 7223 1552
www.closeventures.co.uk
Chairman's statement
Investment progress
The period under review has been a positive one for our Company with maturing
investments in the Ordinary Share portfolio leading to a strong return, while
the C Share investment portfolio continues to be built up as set out in the
prospectus.
The total return per Ordinary Share was 5.4 pence for the six months to 30 June
2007; part of this was due to the strengthening income stream from the
investment portfolio, though the majority was through the successful realisation
of investments. These comprised Careforce, which the VCT originally backed in
2002, and which, following its flotation on AIM in 2004, was taken over by Mears
Group in April of this year. In addition, profits were realised on the sale of
holdings in Intelligent Environments and Bond International, two companies
within our residual AIM portfolio, and also on the portfolio of International
Quoted Technologies, which was wound down during the period. Subsequent to the
half year, The Bold Pub Company was also sold, realising a profit of £240,000.
The C Share portfolio, meanwhile, which is still at a relatively early stage of
its development, recorded a negative return of 0.5 pence. This was principally
caused by a partial write down in two of our investments, Premier Leisure
Suffolk Limited and Helveta Limited. Overall, however, the C Share portfolio is
being built up according to plan with a balance between lower risk, income
producing businesses and a range of companies across the technology sector.
Investments are allocated between the two classes of shares in the ratio of cash
available for investment, with just under £1 million invested in the Ordinary
Share portfolio, and £6.7 million invested in the C Share portfolio during the
period.
Results and dividends
As at 30 June 2007, the net asset value of the Company's Ordinary Shares was
115.9 pence (30 June 2006: 113.5 pence) and the net asset value of the C Shares
was 93.4 pence (30 June 2006: 94.4 pence). Revenue return before tax for the
Ordinary Shares was £369,000 (30 June 2006: £324,000) and for the C Shares
revenue return before tax was £690,000 (30 June 2006: £323,000).
The second dividend for the year will be 4 pence per Ordinary Share (comprising
2 pence from revenue profits and 2 pence from realised capital profits) and 1.5
pence per C Share (from revenue profits). This takes total dividends for 2007
to 8 pence per Ordinary Share and 2.5 pence per C Share. The dividends will be
payable on 2 November 2007 to shareholders on the register on 5 October 2007.
Dr N E Cross
Chairman 26 September 2007
INCOME STATEMENT
Ordinary Shares
Unaudited Unaudited Audited
Six months to 30 June 2007 Six months to 30 June 2006 Year to 31 December 2006
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses) on - 575 575 - (545) (545) - (3) (3)
investments
Investment income 472 - 472 414 - 414 832 - 832
Investment management fees (58) (173) (231) (60) (179) (239) (117) (351) (468)
Other expenses (45) - (45) (30) - (30) (57) - (57)
Return/(loss) on 369 402 771 324 (724) (400) 658 (354) 304
ordinary activities
before tax
Tax on ordinary (99) 57 (42) (122) 63 (59) (219) 114 (105)
activities
Return/(loss) 270 459 729 202 (661) (459) 439 (240) 199
attributable to
equity holders
Basic and diluted 2.0 3.4 5.4 1.5 (4.9) (3.4) 3.2 (1.8) 1.4
return/(loss) per
share (pence)
Comparative figures have been extracted from the accounts for the period ended
30 June 2006 and the statutory accounts for the year ended 31 December 2006.
The total column of this Income Statement represents the profit and loss account
of the Ordinary Shares.
All of the Company's activities derive from continuing operations.
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 (continued)
C Shares
Unaudited Unaudited Audited
Six months to 30 June 2007 Six months to 30 June 2006 Year to 31 December 2006
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on - (434) (434) - (11) (11) - 202 202
investments
Investment income 911 - 911 515 - 515 1,322 - 1,322
Investment management fees (119) (358) (477) (122) (367) (489) (246) (738) (984)
Other expenses (102) - (102) (70) - (70) (129) - (129)
Return/(loss) on 690 (792) (102) 323 (378) (55) 947 (536) 411
ordinary activities
before tax
Tax on ordinary (205) 117 (88) (97) 110 13 (284) 221 (63)
activities
Return/(loss) 485 (675) (190) 226 (268) (42) 663 (315) 348
attributable to equity
holders
Basic and diluted 1.4 (1.9) (0.5) 1.0 (1.2) (0.2) 2.3 (1.1) 1.2
return/(loss) per
share (pence)
Comparative figures have been extracted from the accounts for the period ended
30 June 2006 and the statutory accounts for the year ended 31 December 2006.
The total column of this Income Statement represents the profit and loss account
of the C Shares.
All of the Company's activities derive from continuing operations.
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 (continued)
Combined
Unaudited Unaudited Audited
Six months to 30 June Six months to 30 June Year to 31 December
2007 2006 2006
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses)
on investments - 141 141 - (556) (556) - 199 199
Investment
income 1,383 - 1,383 929 - 929 2,154 - 2,154
Investment
management
fees (177) (531) (708) (182) (546) (728) (363) (1,089) (1,452)
Other expenses (147) - (147) (100) - (100) (186) - (186)
Return/(loss)
on ordinary
activities
before tax 1,059 (390) 669 647 (1,102) (455) 1,605 (890) 715
Tax on
ordinary
activities (304) 174 (130) (219) 173 (46) (503) 335 (168)
Return/(loss)
attributable
to equity
holders 755 (216) 539 428 (929) (501) 1,102 (555) 547
Basic and
diluted
return/(loss)
per share
(pence) 3.4 1.5 4.9 2.5 (6.1) (3.6) 5.5 (2.9) 2.6
Comparative figures have been extracted from the accounts for the period ended
30 June 2006 and the statutory accounts for the year ended 31 December 2006.
The total column of this Income Statement represents the profit and loss account
of the Company.
All of the Company's activities derive from continuing operations.
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 30 June 31 December
2007 2006 2006
£'000 £'000 £'000
Fixed asset investments
Qualifying 11,062 10,947 10,965
Non-qualifying 482 1,757 2,332
Total fixed asset 11,544 12,704 13,297
investments
Current Assets
Debtors 255 43 23
Cash at bank 4,038 3,113 2,486
4,293 3,156 2,509
Creditors: amounts
falling (330) (435) (321)
due within one year
Net current assets 3,963 2,721 2,188
Net assets 15,507 15,425 15,485
Capital and reserves
Called up share capital 6,795 6,795 6,795
Share premium 165 165 165
Special reserve 5,554 5,555 5,554
Capital redemption 400 400 400
reserve
Own treasury shares (223) - (56)
reserve
Realised capital 4,184 3,751 3,432
reserve
Unrealised capital (1,906) (1,678) (1,276)
reserve
Revenue reserve 538 437 471
Total shareholders' 15,507 15,425 15,485
funds
Net asset value per
share (pence)
(excluding treasury 115.9 113.5 114.4
shares)
Comparative figures have been extracted from the accounts for the period ended
30 June 2006 and the statutory accounts for the year ended 31 December 2006.
BALANCE SHEET (continued)
C Shares
Unaudited Unaudited Audited
30 June 30 June 31 December
2007 2006 2006
£'000 £'000 £'000
Fixed asset investments
Qualifying 9,411 1,938 3,116
Non-qualifying 19,997 25,309 28,430
Total fixed asset investments 29,408 27,247 31,546
Current Assets
Debtors 1,405 414 332
Cash at bank 2,793 6,131 2,145
4,198 6,545 2,477
Creditors: amounts falling
due within one year (472) (306) (344)
Net current assets 3,726 6,239 2,133
Net assets 33,134 33,486 33,679
Capital and reserves
Called up share capital 17,740 17,740 17,740
Special reserve 15,768 15,788 15,768
Realised capital reserve (484) (257) (505)
Unrealised capital reserve (506) (11) 190
Revenue reserve 616 226 486
Total shareholders' funds 33,134 33,486 33,679
Net asset value per share
(pence) 93.4 94.4 94.9
Comparative figures have been extracted from the accounts for the period ended
30 June 2006 and the statutory accounts for the year ended 31 December 2006.
BALANCE SHEET (continued)
Combined
Unaudited Unaudited Audited
30 June 30 June 31 December
2007 2006 2006
£'000 £'000 £'000
Fixed asset investments
Qualifying 20,473 12,885 14,081
Non-qualifying 20,479 27,066 30,762
Total fixed asset 40,952 39,951 44,843
investments
Current Assets
Debtors 1,660 457 355
Cash at bank 6,831 9,244 4,631
8,491 9,701 4,986
Creditors: amounts
falling (802) (741) (665)
due within one year
Net current assets 7,689 8,960 4,321
Net assets 48,641 48,911 49,164
Capital and reserves
Called up share capital 24,535 24,535 24,535
Share premium 165 165 165
Special reserve 21,322 21,343 21,322
Capital redemption 400 400 400
reserve
Own treasury shares (223) - (56)
reserve
Realised capital 3,700 3,494 2,927
reserve
Unrealised capital (2,412) (1,689) (1,086)
reserve
Revenue reserve 1,154 663 957
Total shareholders' 48,641 48,911 49,164
funds
Comparative figures have been extracted from the accounts for the period ended
30 June 2006 and the statutory accounts for the year ended 31 December 2006.
The interim information was approved by the Board of Directors and authorised
for issue on 26 September 2007.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS FUNDS
Ordinary Shares
Called Own
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 2006 6,908 165 5,785 287 - 4,311 (1,027) 235 16,664
Share
redemptions (113) - (230) 113 - - - - (230)
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
Movement in
unrealised
appreciation - - - - - - (651) - (651)
Revenue return
attributable
to
shareholders - - - - - - - 202 202
Dividends - - - - - (550) - - (550)
As at 1 July
2006 6,795 165 5,554 400 - 3,751 (1,678) 437 15,424
Net realised gains
on investments in
the year - - - - - 140 - - 140
Capitalised
investment
management
and performance
fees - - - - - (172) - - (172)
Treasury
shares purchased - - - - (56) - - - (56)
Tax relief on
costs charged
to capital - - - - - 51 - - 51
Movement in
unrealised
appreciation - - - - - - 402 - 402
Revenue return
attributable
to shareholders - - - - - - - 237 237
Dividends - - - - - (338) - (203) (541)
As at 31
December 2006 6,795 165 5,554 400 (56) 3,432 (1,276) 471 15,485
Net realised gains
on investments in
the year - - - - - 1,205 - - 1,205
Capitalised
investment
management
and performance
fees - - - - - (173) - - (173)
Tax relief on
costs charged
to capital - - - - - 57 - - 57
Treasury
shares
purchased - - - - (167) - - - (167)
Movement in
unrealised
appreciation - - - - - - (630) - (630)
Revenue return
attributable
to
shareholders - - - - - - - 270 270
Dividends - - - - - (338) - (203) (541)
As at 30 June
2007 6,795 165 5,554 400 (223) 4,184 (1,906) 538 15,507
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS FUNDS (continued)
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 1 January - - - - - - - -
2006
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
attributable
to
shareholders - - - - - - 226 226
As at 1 July
2006 17,740 - 15,788 - (257) (11) 226 33,486
Net realised gains
on investments in
the year - - - - 12 - - 12
Capitalised
investment
management
and
performance
fees - - - - (371) - - (371)
Tax relief on
costs charged
to capital - - - - 111 - - 111
Movement in
unrealised
appreciation - - - - - 201 - 201
Cost of
cancellation
of share
premium - - (20) - - - - (20)
Revenue return
attributable
to
shareholders - - - - - - 437 437
Dividends - - - - - - (177) (177)
As at 31
December 2006 17,740 - 15,768 - (505) 190 486 33,679
Net realised gains
on investments in
the year - - - - 262 - - 262
Capitalised
investment
management
and
performance
fees - - - - (358) - - (358)
Tax relief on
costs charged
to capital - - - - 117 - - 117
Movement in
unrealised
appreciation - - - - - (696) - (696)
Revenue return
attributable
to
shareholders - - - - - - 485 485
Dividends - - - - - - (355) (355)
As at 30 June
2007 17,740 - 15,768 - (484) (506) 616 33,134
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS FUNDS (continued)
Combined
Called Own
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 2006 6,908 165 5,785 287 - 4,311 (1,027) 235 16,664
Issue of share
capital 17,740 17,740 - - - - - - 35,480
Issue costs - (1,952) - - - - - - (1,952)
Share
redemptions (113) - (230) 113 - - - - (230)
Cancellation
of share
premium
reserve - (15,788) 15,788 - - - - - -
Net realised gains
on investments in
the year - - - - - 106 - - 106
Capitalised
investment
management
and performance
fees - - - - - (546) - - (546)
Tax relief on
costs charged
to capital - - - - - 173 - - 173
Movement in
unrealised
appreciation - - - - - - (662) - (662)
Revenue return
attributable
to shareholders - - - - - - - 428 428
Dividends - - - - - (550) - - (550)
As at 1 July
2006 24,535 165 21,342 400 - 3,494 (1,689) 663 48,910
Net realised gains
on investments in
the year - - - - - 152 - - 152
Cost of
cancellation
of share
premium - - (20) - - - - - (20)
Capitalised
investment
management
and
performance
fees - - - - - (543) - - (543)
Treasury
shares
purchased - - - - (56) - - - (56)
Tax relief on
costs charged
to capital - - - - - 162 - - 162
Movement in
unrealised
appreciation - - - - - - 603 - 603
Revenue return
attributable
to
shareholders - - - - - - - 674 674
Dividends - - - - - (338) - (380) (718)
As at 31
December 2006 24,535 165 21,322 400 (56) 2,927 (1,086) 957 49,164
Net realised gains
on investments in
the year - - - - - 1,467 - - 1,467
Capitalised
investment
management
and
performance
fees - - - - - (531) - - (531)
Tax relief on
costs charged
to capital - - - - - 174 - - 174
Treasury
shares
purchased - - - - (167) - - - (167)
Movement in
unrealised
appreciation - - - - - - (1,326) - (1,326)
Revenue return
attributable
to
shareholders - - - - - - - 754 754
Dividends - - - - - (338) - (558) (896)
As at 30 June
2007 24,535 165 21,322 400 (223) 3,700 (2,412) 1,154 48,641
CASH FLOW STATEMENT
Ordinary Shares
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2007 30 June 2006 31 December 2006
£'000 £'000 £'000
Operating activities
Investment income received 348 243 621
Deposit interest received 53 52 102
Other cash received 6 112
-
Investment management fees paid (229) (130) (534)
Other cash payments (55) (69) (259)
Net cash inflow/(outflow) from operating 123 208 (70)
activities
Taxation
UK corporation tax paid 3 2 (46)
Capital expenditure and financial
investments
Purchase of investments (1,431) (1,404) (2,073)
Disposal of investments 3,605 332 1,185
Net cash inflow/(outflow) from investing 2,174 (1,072) (888)
activities
Equity dividends paid
Dividends paid on ordinary shares (541) (550) (1,091)
Net cash inflow/(outflow) before 1,759 (1,412) (2,095)
financing
Financing
Purchase of own shares (287)
(167) -
Intercompany account movement 114
(40) -
Cancellation of share capital (229)
- -
Net cash outflow from financing (207) (229) (173)
Cash inflow/(outflow) in the period 1,552 (1,641) (2,268)
CASH FLOW STATEMENT (continued)
C Shares
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2007 30 June 2006 31 December 2006
£'000 £'000 £'000
Operating activities
Investment income received 721 6 750
Deposit interest received 74 150 314
Investment management fees paid (496) (421) (735)
Other cash payments (143) (165) (109)
Net cash inflow/(outflow) from operating
activities 156 (430) 220
Taxation
UK corporation tax paid
- - -
Capital expenditure and financial
investments
Purchase of investments (8,133) (26,980) (31,594)
Disposals of investments 8,940 297
-
Net cash inflow/(outflow) from investing 807 (26,980) (31,297)
activities
Equity dividends paid
Dividends paid on C shares
(355) - (177)
Net cash inflow/(outflow) before 608 (27,410) (31,254)
financing
Financing
Intercompany account movement 40 - (114)
Issue of share capital (net of costs) - 33,541 33,513
Net cash inflow from financing 40 33,541 33,399
Cash inflow in the period 648 6,131 2,145
CASH FLOW STATEMENT (continued)
Combined
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2007 30 June 2006 31 December 2006
£'000 £'000 £'000
Operating activities
Investment income received 1,069 249 1,371
Deposit interest received 127 202 416
Other cash received 6 112
-
Investment management fees paid (725) (551) (1,269)
Other cash payments (198) (234) (368)
Net cash inflow/(outflow) from operating 279 (222) 150
activities
Taxation
UK corporation tax paid 3 2 (46)
Capital expenditure and financial investments
Purchase of investments (9,564) (28,384) (33,667)
Disposals of investments 12,545 332 1,482
Net cash inflow/(outflow) from investing 2,981 (28,052) (32,185)
activities
Equity dividends paid
Dividends paid on ordinary shares (896) (550) (1,268)
Net cash inflow/(outflow) before financing 2,367 (28,822) (33,349)
Financing
Purchase of own shares (167) - (287)
Issue of share capital (net of costs) - 33,541 33,513
Intercompany account movement - - -
Cancellation of share capital - (229) -
Net cash (outflow)/inflow from financing (167) 33,312 33,226
Cash inflow/(outflow) in the period 2,200 4,490 (123)
Notes to the announcement
1. Details about the Investment Manager
Close Technology & General VCT PLC is managed by Close Ventures Limited. Close
Ventures Limited is a subsidiary of Close Brothers Group plc and is authorised
and regulated by the Financial Services Authority.
2. Statutory accounts
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the periods ended 30 June 2007 or 30 June 2006,
as defined in Section 240 of the Companies Act 1985. Statutory accounts for the
year ended 31 December 2006 have been delivered to the Registrar of Companies.
The Auditors have reported on those accounts; their report was unqualified and
did not contain statements under section 237(2) or (3) of the Companies Act
1985.
Whilst the financial information included in this announcement has been computed
in accordance with Financial Reporting Standards (FRSs), this announcement does
not itself contain sufficient information to comply with FRSs. The Company
expects to publish its full Interim Report and Accounts within the next two
weeks.
3. Accounting policies
The accounts have been prepared on the basis of the accounting policies set out
in the latest annual report for the year ended 31 December 2006.
4. Basic and diluted return per share
Return per share has been calculated on 13,509,404 Ordinary shares excluding
Treasury shares (2006: 13,771,468) and 35,479,122 C Shares (2006: 21,611,995)
being the weighted average number of shares in issue in the period.
There are no convertible instruments, derivatives or contingent share agreements
in issue for the Company hence there are no dilution effects to the return per
share. The basic return per share is therefore the same as the diluted return
per share.
5. Net asset value
The net asset value per share is based on net assets of £15,507,000 and on
13,374,853 Ordinary shares being the number of Ordinary shares in issue
(excluding Treasury shares) and net assets of £33,134,000 on 35,479,122 C shares
being the number of C shares in issue at the period end.
This information is provided by RNS
The company news service from the London Stock Exchange
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