Interim Results
Close Brothers Venture Cap Tst PLC
14 December 2004
14 December 2004
CLOSE BROTHERS VENTURE CAPITAL TRUST PLC
Interim results for the six months ended 30 September 2004
Close Brothers Venture Capital Trust PLC ('the Company'), managed by Close
Venture Management Limited, today announces interim results for the six months
ended 30 September 2004.
Financial Highlights:
Ordinary Shares 'C' Shares
pence per share pence per share
Gross dividend for the year to 31 March 1997 5.00 -
Gross dividend for the year to 31 March 1998 6.00 5.00
Gross first and second interim dividends
and net final dividend for the year to 31 March 1999 7.75 6.25
Net dividend for the year to 31 March 2000 8.55 4.50
Net dividend for the year to 31 March 2001 7.50 7.50
Net dividend for the year to 31 March 2002 7.50 7.50
Net dividend for the year to 31 March 2003 8.00 8.00
Net dividend for the year to 31 March 2004 8.50 8.50
Net dividend for the six months to 30 September 2004 4.25 4.25
----- ------
Total dividends 63.05 51.50
Net asset value per share at 30 September 2004 113.27 113.27
------ ------
Total 176.32 164.77
======= ========
Note 1: following the cessation of tax credits on 5 April 1999, dividends paid
by VCTs no longer benefit from tax free tax credits for qualifying UK
shareholders.
Note 2: the above table does not take into account the income tax relief of 20%
nor the capital gains tax deferral relief of 40% upon subscription for
shares in the Company.
For further information, please contact:
Patrick Reeve/ Ole Bettum John West/Clemmie Carr
Close Venture Management Tavistock Communications
Tel: 020 7422 7830 Tel: 020 7920 3150
www.closeventures.co.uk
Notes to Editors:
1) Close Brothers Venture Capital Trust PLC is managed by Close Venture
Management Limited which is a subsidiary of Close Brothers Group plc and is
regulated by the FSA.
2) The financial information set out in the announcement does not
constitute the Company's statutory accounts for the six months ended 30
September 2004 or 2003. The financial information for the year ended 31
March 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
The principal event during the six months to 30 September 2004 was the sale
shortly after the year end of the five homes for people with learning
disabilities. As reported in my Chairman's statement in the annual report and
accounts, this realised a profit of £4 million on cost of £9.9 million. This was
accounted for in the year end accounts as an unrealised profit. The realisation
further boosts the level of realised capital reserves that are available for
distribution.
The Company made one new investment of £900,000 during the period, in CS
(Greenwich) Limited, as part of a total investment by funds managed or advised
by Close Venture Management Limited of £2.5 million. CS (Greenwich) Limited was
established to redevelop a redundant cinema in the heart of Greenwich in London
into a five-screen art house cinema with bars and restaurant in conjunction with
City Screen Limited which operates the cinemas owned by City Screen (Cambridge)
Limited and City Screen (Liverpool) Limited in which the Company is already an
investor. The Greenwich cinema is expected to re-open in the autumn of 2005.
In addition, the Company has made follow on investments of £1 million in Kew
Green VCT (Stansted) Limited, which is developing an Express by Holiday Inn
hotel at Stansted Airport; £1 million in Barleycroft Care Home Limited, which is
developing a care home in Romford; £925,000 in Applecroft Care Home Limited,
which owns a care home in Dover; and £140,000 in The Bold Pub Company Limited,
to enable it to buy a further pub in the North West of England. Subsequent to
the half year a further £860,000 has been invested in the Bold Pub Company
Limited, as part of additional investment of £3.5 million by funds managed or
advised by the Manager to enable it to acquire two further portfolios of pubs,
taking the total number of pubs owned by it to 26.
The principal change in valuation over the six months has been to Premier VCT
(Mailbox) Limited, which operates the Days Hotel in the Mailbox development in
the centre of Birmingham. A restructuring of the company in conjunction with the
acquisition of the shares belonging to our previous partner, Premier Hotels, by
our new partner, has enabled an uplift of over £700,000 in the valuation of the
Company's investment. Additionally the Company's holding in the Bold Pub Company
was revalued upwards at the time of the additional investment following strong
performance. The other changes in valuation since 31 March 2004 reflect changes
in the underlying companies' net current assets.
In the residential property development sector, we have seen some slowing in the
rate of sales but dividends were received from three out of four of the investee
companies during the period.
A summary of the Company's investments at 30 September 2004 is set out below:
Investee Investment at Revaluation Investment Reserved Revaluation
company cost at valuation for investment since 31 March 2004
£ 000's £ 000's £ 000's £ 000's £ 000's
Hotels
------
Premier VCT
(Mailbox) Ltd 4,600 1,807 6,407 - 719
Kew Green VCT
(Stansted) 3,000 - 3,000 2,000 -
Ltd
Care Homes
----------
Applecroft
Care Home Ltd 1,925 - 1,925 - -
Barleycroft
Care Home Ltd 2,000 - 2,000 275 -
Leisure
-------
City Screen
(Cambridge)
Ltd 1,210 158 1,368 - 32
Odyssey Glory
Mill Ltd 4,500 912 5,412 - (36)
City Screen
(Liverpool)
Ltd 200 (25) 175 - (6)
CS(Greenwich)
Ltd 900 - 900 - -
The Bold Pub
Company Ltd 400 49 449 860 49
Residential
Development
-------------
Chase Midland
VCT Ltd 1,600 - 1,600 - -
Country &
Metropolitan
VCT Ltd 3,000 - 3,000 - -
Prime VCT 2,200 - 2,200 - -
Ltd
Youngs VCT 1,200 - 1,200 - -
Ltd
Total at 30
September
2004 26,735 2,901 29,636 3,135 758
Total at 31
March 2004 32,710 6,180 38,890 5,340 -
Results and dividend
As at 30 September 2004 the net asset value of the Company was £40.64 million or
113.3 pence per share, which compares with a net asset value at 31 March 2004 of
£40.58 million or 113.1 pence per share. Net income before taxation was £1.46
million (2003: £1.38 million). In view of the level of realised capital reserves
and the relatively predictable levels of revenue the Board has decided to make
the levels of the interim and final dividends more equal. Accordingly, within
the Company's broader aim of a progressive dividend policy, the board has
declared a net interim dividend of 4.25 pence per share, including 1.45 pence
out of realised capital reserves, for the six months to 30 September 2004 (2003:
3.00 pence per share). The interim dividend will be paid on 7 January 2005 to
shareholders registered on 24 December 2004.
David Watkins
Chairman 14 December 2004
Statement of total return
(incorporating the profit and loss account)
for the six months to 30 September 2004
Unaudited Unaudited Audited
six months to six months to year to
30 September 2004 30 September 2003 31 March 2004
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
--------------------------------------------------------------------------------------------------------
Realised gains
on investments - 4,037 4,037 - - - - 21 21
Less:
unrealised
appreciation
provided for
in previous
periods - (4,037) (4,037) - - - - - -
Unrealised
gains/(losses)
on investments - 758 758 - (39) (39) - 2,950 2,950
Income 1,693 - 1,693 1,694 - 1,694 3,438 - 3,438
Investment
management
fees (97) (292) (389) (223) (290) (513) (419) (478) (897)
Other expenses (129) - (129) (62) (58) (120) (151) (131) (282)
Return on
ordinary
activities
before
interest and
tax 1,467 466 1,933 1,409 (387) 1,022 2,868 2,362 5,230
Finance charge (5) (16) (21) (27) - (27) (54) - (54)
Return on
ordinary
activities
before tax 1,462 450 1,912 1,382 (387) 995 2,814 2,362 5,176
Tax on
ordinary
activities (422) 92 (330) (390) 97 (293) (802) 183 (619)
Return
attributable
to Shareholders 1,040 542 1,583 992 (290) 702 2,012 2,545 4,557
Dividends (1,004) (520) (1,524) (1,004) (72) (1,076) (1,633) (1,417) (3,050)
Transfer
to/(from)
reserves 36 22 58 (12) (362) (374) 379 1,128 1,507
====== ====== ====== ====== ====== ====== ====== ====== ======
Return per
ordinary share 2.9p 1.5p 4.4p 2.8p (0.8)p 2.0p 5.6p 7.1p 12.7p
All revenue and capital items in the above statement derive from continuing
operations.
Balance sheet
As at 30 September 2004
Unaudited Unaudited Audited
30 September 2004 30 September 2003 31 March 2004
£'000 £'000 £'000
Fixed asset investments
Qualifying investments 29,636 32,724 38,890
Non-qualifying
investments 62 - -
------ ------ ------
Total fixed asset
investments 29,698 32,724 38,890
Current assets
Debtors 258 428 225
Cash at bank and in
hand 12,808 8,667 5,735
------ ----- -----
13,066 9,095 5,960
Creditors: due within
one year (2,125) (2,119) (3,269)
------- ------- -------
Net current assets 10,941 6,976 2,691
------ ----- -----
Creditors: due greater
than one year - (1,000) (1,000)
------ ------- -------
Net assets 40,639 38,700 40,581
====== ====== ======
Represented by:
Called up share
capital 17,939 17,939 17,939
Special reserve 14,110 14,111 14,110
Capital redemption
reserve 1,914 1,914 1,914
Capital reserve
- realised 3,154 1,917 222
- unrealised 2,901 2,625 5,811
Revenue reserve 621 194 585
------ ------ ------
Total equity
shareholders' funds 40,639 38,700 40,581
====== ====== ======
Net asset value per
ordinary share 113.3 pence 107.9 pence 113.1 pence
This interim report was approved by the Board of Directors on 14 December 2004.
Signed on behalf of the Board of Directors by
David Watkins
Chairman
Cash flow statement
for the six months to 30 September 2004
Unaudited Unaudited Audited
Six months to Six months to Year to
30 September 30 September 31 March
2004 2003 2004
£'000 £'000 £'000
-----------------------------------------------------------------------------
Operating activities
Investment income received 1,399 1,489 3,189
Dividend income received 65 - 208
Deposit interest received 190 170 287
Other income received 12 163 -
Investment management fees paid (527) (201) (572)
Management performance fee paid (505) (351) (351)
Other cash payments (121) (108) (202)
------ ------ -------
Net cash inflow from operating
activities 513 1,162 2,559
------ ------ -------
Finance interest paid (31) (26) (53)
------ ------ -------
Taxation
UK corporation tax paid (355) - (150)
VAT paid (33) (20) 1
VAT received 1 28 -
------ ------ -------
(387) 8 (149)
Investing activities
Purchase of investments (4,026) (1,170) (4,428)
Disposals of investments 13,977 - 89
Disposals of non-qualifying
investments - - 100
------ ------ -------
Net cash inflow/(outflow) from
investing activities 9,951 (1,170) (4,239)
------ ------ -------
Dividends paid
Equity dividends paid on ordinary
shares (1,973) (1,866) (2,942)
------- ------ -------
Net cash inflow/(outflow) before
financing 8,073 (1,892) (4,824)
Financing
Redemption of own shares - (92) (92)
Loan repayment (1,000) - -
-------- ------ -------
(1,000) (92) (92)
-------- ------- -------
Increase/(decrease) in cash and cash
equivalents 7,073 (1,984) (4,916)
======== ======== =======
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