Half Yearly Report

RNS Number : 2842Q

F&C Private Equity Trust PLC

29 August 2014

 



To: Stock Exchange	For immediate release:
	29 August 2014

F&C Private Equity Zeros plc

Unaudited results for the half year to 30 June 2014

 

Chairman's Statement

I am pleased to present the Company's results for the six months ended 30 June 2014.

The Company is a wholly owned subsidiary of F&C Private Equity Trust plc ('F&C PET') and was established solely for the purpose of issuing and redeeming Zero Dividend Preference Shares ('ZDP Shares').  30,000,000 ZDP Shares were issued on 14 December 2009 at 100 pence per share and will redeem on 15 December 2014 at a price of 152.14 pence per ZDP Share, giving a redemption yield of 8.75 per cent per annum.  The proceeds of the ZDP Shares issue were lent to F&C PET for use in future investment opportunities.

As at 30 June 2014 the ZDP Share price was 150.125 pence, representing a premium of 2.9 per cent over the net asset value per ZDP Share of 145.93 pence.

Mark Tennant

Chairman

F&C Private Equity Zeros plc

Statement of Comprehensive Income

	Notes		Six months ended 30 June 2014	Six months ended 30 June 2013	Year ended 31 December 2013
			(unaudited)	(unaudited)	(audited)
			£'000	£'000	£'000
Revenue
Interest Income			293	287	582
Total income			293	287	582
Expenditure
Expenses			-	-	-
Total expenditure			-	-	-
Profit before finance costs and taxation			293	287	582
Finance costs	3		(1,944)	(1,774)	(3,662)
Loss before taxation			(1,651)	(1,487)	(3,080)
Taxation			-	-	-
Loss for the period			(1,651)	(1,487)	(3,080)
Loss per Ordinary Share			(3,302.0)p	(2,974.0)p	(6,160.0)p

F&C Private Equity Zeros plc

Balance Sheet

		As at 30 June 2014		As at 30 June 2013		As at 31 December 2013
		(unaudited)		(unaudited)		(audited)
	£'000	£'000	£'000	£'000	£'000	£'000
Non current assets
Investments	-		47		-
Inter-company receivable	-		11,079		-
Subordinated unsecured loan note	-		28,008		-
		-		39,134		-
Current assets
Investments	45		-		46
Inter-company receivable	14,911		-		12,967
Subordinated unsecured loan note	28,596		-		28,303
Loans and other receivables	1		1		1
Cash at bank	10		8		9
		43,563		9		41,326
Current liabilities
Zero dividend preference shares		(43,779)		-		(41,835)
Net current (liabilities)/assets		(216)		9		(509)
Total assets less current liabilities		(216)		39,143		(509)
Creditors: amounts falling due after one year
Zero dividend preference shares		-		(39,947)		-
Net liabilities		(216)		(804)		(509)
Equity
Ordinary share capital		50		50		50
Capital contribution reserve		14,911		11,079		12,967
Other reserve		(272)		(860)		(565)
Revenue reserve		(14,905)		(11,073)		(12,961)
Shareholders' funds		(216)		(804)		(509)
Net liabilities per Ordinary Share		(432.0)p		(1,608.0)p		(1,018.0)p
Net asset value per ZDP Share		145.93p		133.16p		139.45p

F&C Private Equity Zeros plc

Statement of Changes in Equity

For the period ended 30 June 2014 (unaudited)
	Share Capital	Capital Contribution Reserve	Other Reserve	Revenue Reserve	Total
	£'000	£'000	£'000	£'000	£'000
Net liabilities at start of period	50	12,967	(565)	(12,961)	(509)
Loss for the period	-	-	-	(1,651)	(1,651)
Capital contribution during the period	-	1,944	-	-	1,944
Transfer to other reserve	-	-	293	(293)	-
Net liabilities at 30 June 2014	50	14,911	(272)	(14,905)	(216)

For the period ended 30 June 2013 (unaudited)
	Share Capital		Capital Contribution Reserve		Other Reserve		Revenue Reserve		Total
	£'000		£'000		£'000		£'000		£'000
Net liabilities at start of period	50		9,305		(1,147)		(9,299)		(1,091)
Loss for the period	-		-		-		(1,487)		(1,487)
Capital contribution during the period	-		1,774		-		-		1,774
Transfer to other reserve	-		-		287		(287)		-
Net liabilities at 30 June 2013	50		11,079		(860)		(11,073)		(804)
For the year ended 31 December 2013 (audited)
		Share Capital		Capital Contribution Reserve		Other Reserve		Revenue Reserve		Total
		£'000		£'000		£'000		£'000		£'000
Net liabilities at start of year		50		9,305		(1,147)		(9,299)		(1,091)
Loss for the year		-		-		-		(3,080)		(3,080)
Capital contribution during the year		-		3,662		-		-		3,662
Transfer to other reserve		-		-		582		(582)		-
Net liabilities at 31 December 2013		50		12,967		(565)		(12,961)		(509)

F&C Private Equity Zeros plc

Cash Flow Statement

	Six months ended 30 June 2014	Six months  ended 30 June 2013	Year ended  31 December 2013
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Cash flows from operating activities
Loss before taxation	(1,651)	(1,487)	(3,080)
Non-cash adjustment to reconcile loss before
taxation to net cash flow:
Interest on subordinated unsecured loan note	(292)	(286)	(580)
Working capital adjustment:
Change in inter-company receivable	1,944	1,774	3,662
subordinated unsecured loan note
Net cash inflow from operating activities/increase in cash and cash equivalents	1	1	2
Cash and cash equivalents at beginning of period	9	7	7
Cash and cash equivalents at end of period	10	8	9

Principal Risks and Uncertainties

The Directors believe that the principal risks and uncertainties faced by the Company include final capital entitlement; liquid market for ZDP shares; macroeconomic and investment risks; and regulation risk.  These risks and the way in which they are managed are described in more detail under the heading Principal Risks and Uncertainties and Risk Management within the Business Model and Strategy in the Company's Annual Report for the year ended 31 December 2013.  The Company's principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the remaining six months of the Company's financial year.

Statement of Directors' Responsibilities in Respect of the Half Year Report

We confirm that to the best of our knowledge:

·      The condensed set of financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' and give a true and fair view of the assets, liabilities, financial position and profit of the Company;

·      The Chairman's Statement (constituting the Interim Management Report) includes a fair review of the information required by the Disclosure and Transparency Rules ('DTR') 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements;

·      The Statement of Principal Risks and Uncertainties shown above is a fair review of the information required by DTR 4.2.7R;and

·      The condensed set of financial statements includes a fair review of the information required by DTR 4.2.8R, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the Company during the period, and any changes in the related party transactions described in the last Annual Report that could do so.

On behalf of the Board

Mark Tennant

Chairman

Notes (unaudited)

1.   The unaudited half-year results have been prepared on the basis of the accounting policies set out in the statutory accounts of the Company for the year ended 31 December 2013 and in accordance with International Accounting Standard ('IAS') 34.

2.   Earnings for the six months to 30 June 2014 should not be taken as a guide to the results for the year to 31 December 2014.

3.   Finance costs

		Six months ended 30 June 2014	Six months ended 30 June 2013	Year ended  31 December 2013
		£'000	£'000	£'000
ZDP Share interest costs		1,791	1,647	3,392
Amortisation of issue expenses		153	127	270
		1,944	1,774	3,662

4.   Loss per Ordinary Share

The calculation of loss per Ordinary Share is based on a loss after tax for the period of £1,651,000 (period ended 30 June 2013: £1,487,000; year ended 31 December 2013: £3,080,000) and a weighted average number of 50,000 Ordinary Shares in issue during the period (period ended 30 June 2013: 50,000; year ended 31 December 2013: 50,000).  The basic and diluted earnings per Ordinary Share are the same.

5.   Zero Dividend Preference Shares

	Number of ZDP Shares	Amount due to ZDP shareholders
		£'000
As at 31 December 2013	30,000,000	41,835
ZDP Shares finance costs	-	1,944
As at 30 June 2014	30,000,000	43,779

On 14 December 2009 the Company issued 30,000,000 ZDP Shares at £1 each.  These shares redeem on 15 December 2014 at a price of 152.14 pence per share giving a redemption yield of 8.75 per cent per annum. 

6.   Net (liabilities)/asset value per Ordinary Share

The net liabilities per Ordinary Share are based on net liabilities of £216,000 (30 June 2013: £804,000; 31 December 2013: £509,000) and on 50,000 Ordinary Shares (30 June 2013: 50,000; 31 December 2013: 50,000), being the number of Ordinary Shares in issue at the period end.

The net asset value per ZDP Share is based on the entitlement due of £43,779,000 (30 June 2013: £39,947,000; 31 December 2013: £41,835,000) at the period end and on 30,000,000 (30 June 2013: 30,000,000; 31 December 2013: 30,000,000) ZDP Shares, being the number of ZDP Shares in issue at the period end.

7.   These are not statutory accounts in terms of Section 434 of the Companies Act 2006 and have not been audited or reviewed by the Company's auditors. The information for the year ended 31 December 2013 has been extracted from the latest published financial statements which received an unqualified audit report and have been filed with the Registrar of Companies. No statutory accounts in respect of any period after 31 December 2013 have been reported on by the Company's auditors or delivered to the Registrar of Companies. The Half-Year Report is available at the parent company's website address, www.fcpet.co.uk.

For more information, please contact:

Hamish Mair (Fund Manager)	0131 718 1184 [e-mail]
Gordon Hay Smith (Company Secretary)	0131 718 1018 [e-mail]

 

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