Half Yearly Report

RNS Number : 2597B

Intl. Biotechnology Trust PLC

13 April 2012

 



INTERNATIONAL BIOTECHNOLOGY TRUST PLC (the "Company")

Half Yearly Report for the six months ended 29 February 2012

This announcement contains regulated information.

Chairman's Statement

Performance Summary
	6m	1yr	3yr
IBT NAV (£)	25.5%	23.2%	48.9%
Quoted	32.5%	33.2%	91.9%
Unquoted	1.8%	(6.2)%	(26.3)%
NBI (£)	26.1%	28.5%	71.7%
S&P500 (£)	14.4%	5.1%	67.1%
FTSE All-Share (£)	8.7%	(2.0)%	57.7%

Summary

I am very pleased to be able to report to you a strong positive return for shareholders over the half year to 29 February 2012. After taking account of a 25.5% increase in the Net Asset Value ("NAV") per share and a small narrowing of the discount from 12.7% to 11.0%, the Company's share price increased 28.0% to 183.0p per share, the highest level since August 2001, and above the adjusted price of the conversion C-share issue of February 2007.

The quoted portfolio, representing 76.5% of NAV at the end of the period, continues to be the main contributor to performance while the unquoted portfolio of early-stage investments matures. The quoted portfolio return of 32.5% during the period was ahead of the NBI (£). The unquoted portfolio, representing 16.1% of NAV at the end of the period, returned 1.8% during the interim period, reflecting the net result of a number of incremental valuation adjustments to the Company's venture-stage investments.

It is pleasing to see the Company's quoted portfolio performing well. A relatively concentrated portfolio, plus the volatility in the share prices of the Company's investments can exaggerate under and out-performance over the short-term. However, good stock selection should deliver superior returns over the long-term, and I believe a strong long-term performance record for the quoted portfolio is beginning to build nicely.

The Investment Manager's ability to identify high quality companies of strategic value within the healthcare industry continues, with three of the Company's investments acquired during the period - Caliper Life Sciences, Pharmasset and Micromet - and a fourth, Illumina, subject to an ongoing hostile takeover attempt. These, added to a further four (ProStrakan, Genzyme, Cadent and Axis Shield) since 28 February 2011, bring the total number of investments subject to merger and acquisition ("M&A") activity over the past twelve months to eight.

The Investment Manager believes that a high level of M&A activity will continue for the foreseeable future and that this trend will continue to be a key driver of portfolio returns for investors in the healthcare sector - particularly for the Company's unquoted venture investments. The Investment Manager believes these should begin to deliver attractive returns in the coming years. The Board of Directors are confident that the companies we have invested in are making good progress.

Further information on the unquoted portfolio is within the Investment Manager's Review.

Borrowing Facility

The Company has an overdraft facility in place with HSBC Bank plc for the amount of £15.0m. This facility provides the Company with funds to take advantage of investment opportunities that occur from time to time - whether quoted or unquoted - on occasions when the portfolio is otherwise fully invested.

While at 31 August 2011, £8.0m of the overdraft facility was drawn down, by the end of the half year on 29 February 2012, these borrowings had been fully repaid, and the Company held a positive cash balance (cash, money market instruments, in addition to current net assets and liabilities) of £8.4m.

It continues to be the intention of the Board that borrowings are made on a relatively short-term basis to exploit specific investment opportunities, rather than to apply long-term structural gearing to the Company's portfolio of investments.

Share Buybacks

Over the course of the last six months, the Company repurchased a total of 550,000 Ordinary shares into treasury at a total cost of £848,750 (excluding stamp duty) and at an average discount of 13.0%, resulting in an enhancement to the NAV per share of approximately 0.2p. At 29 February 2012, the Company held 3,850,000 Ordinary shares in treasury. It is the intention of the Board to continue its policy of buying back shares whether for cancellation or into treasury, to help provide liquidity in the Company's shares, to assist in reducing the volatility of the discount and to enhance the NAV.

Board

As previously announced I will be retiring from the Board today. I am delighted that the Board has appointed Alan Clifton to succeed me as Chairman and I wish him great success in his new role. Having already served on the Company's Board since 21 February 2001, Alan brings to the Chairman's role a wealth of fund management and investment companies experience.

I would like to extend the same very best wishes to all my fellow Directors and the excellent team who manage the Company and thank shareholders for their support over the last eleven years.

Prospects

Over the years I have seen the Company grow and develop into what I believe is an effective vehicle for investing in medical innovation. As an industry, the global biotechnology and medical technology sector appears to be going from strength to strength, increasingly delivering more "personalised" medicine as first promised with the sequencing of the human genome just over a decade ago. With ageing populations within developed economies and growing populations within emerging market economies, the need and demand for innovative new drugs, diagnostics and medical devices to prevent and treat modern complex diseases has never been higher.

While large pharmaceutical companies are struggling to generate returns from internal research and development ("R&D") investment, smaller more nimble biotechnology companies are demonstrating higher success in providing the medical innovation required. This is reflected in the continued high level of M&A and deal-making activity between large and small companies in the industry. The NASDAQ biotechnology Index has outperformed the broader market (S&P500) over the past three years (a Sterling-adjusted gain of 71.7% against 67.1%) highlighting the value being created in the industry.

Investment trusts are one of the few investment vehicles that are suitable for risk diversified investment in the less liquid shares of companies developing early stage technologies. With a relatively stable pool of capital, the Company's Investment Manager is able to both exploit short-term pricing inefficiencies in the shares of early-stage companies traded in the public markets, and also support highly promising venture-stage technologies through the inevitable ups and downs of early stage technological development.  The Board will consider carefully the implications for your Company and its shareholders of the changes to the recent taxation of Investment Companies.

In recent years exits from unquoted companies have come primarily from public company acquisition rather than Initial Public Offerings.  Therefore in order to get exposure to these acquisitions it is necessary to have investments in unquoted companies.

While returns from the Company's unquoted portfolio of venture-stage investments have been muted in recent years, I would remind investors that investing in emerging medical technologies is a relatively long-term undertaking. The Company's portfolio of these venture-stage investments is beginning to mature and we expect strong returns from the unquoted portfolio in the coming years. We believe the Company has in its Investment Manager, SV Life Sciences, one of the strongest specialist global life sciences investors, with a track record of generating consistently strong returns from backing early-stage technologies.

Andrew Barker

Chairman

13 April 2012

Investment Manager's Review

Portfolio Summary

	NAV 29 Feb 12	NAV 29 Feb 12	NAV 31 Aug 11
IBT NAV (£)	£114.0m	100.0%	100.0%
Quoted	£87.2m	76.5%	85.5%
Unquoted	£18.4m	16.1%	18.9%
Other	£8.4m	7.4%	(4.4)%

Overview

The six-months ended 29 February 2012 saw the Company's NAV per share increase by 25.5%. In comparison, the NASDAQ Biotechnology Index ("NBI") increased by 26.1%, while the S&P500 and FTSE All-Share indices increased by 14.4% and 8.7%, respectively. All Figures are Sterling-adjusted.

Within the portfolio, the quoted portfolio (76.5% of NAV at period-end) returned 32.5% and the unquoted portfolio (16.1% of NAV at period-end) returned 1.8%. Cash, money market instruments and other net assets were 7.4% of NAV at the end of the period.

By subsector, 60.0% of NAV was invested in the biotechnology sector, 10.8% in the medical device sector, 11.2% in the specialty pharmaceuticals sector, and 10.6% in the life sciences tools and diagnostics sector, emphasising the diversified nature of the Company's investments.

Members of the Investment Manager's team sat on the Boards of 20 portfolio companies (18 unquoted and two quoted) at the end of the period, a reduction of two from 31 August 2011. An active Board seat on private companies remains an important aspect of the Investment Manager's investing activities in early-stage unquoted biotechnology companies.

Quoted Portfolio

During the period under review, the combined effect of gains and losses on quoted investments, including currency movements, was to increase the NAV by £24.4m or 43.9p per share. The time-weighted return for the quoted portfolio over the period was 32.5%.

At 29 February 2012, the Company held investments in 42 quoted companies, representing 76.5% of NAV at £87.2m, as compared to 40 quoted companies, representing 85.5% of NAV at £78.5m at the start of the period.

Unquoted Portfolio

During the period under review, the combined effect of gains and losses on unquoted investments, including currency movements, was to increase the NAV by £0.7m or 1.2p per share. The time-weighted return for the unquoted portfolio over the period was 1.8%.

At 29 February 2012, the Company held investments in 25 unquoted companies, representing 16.1% of NAV at £18.4m, as compared to 26 unquoted companies, representing 18.9% of NAV at £17.4m at the start of the period.

Where unquoted stocks became quoted stocks they are transferred within the Company's portfolio at their valuation on the date of becoming listed.

At the half year-end, 0.8% of NAV was legally committed to further investments in unquoted companies, while 6.7% was investment-committee approved or reserved for further investment in unquoted companies.

Investment Highlights

Broader equity markets performed strongly during the period under review. Against this backdrop, the biotechnology sector performed particularly strongly, driven by an unusually high level of M&A activity and positive clinical and regulatory newsflow updates on a number of major new biotechnology products. The Company's quoted portfolio in turn outperformed the NBI during the period.

Within the quoted portfolio, highlights during the period were life science tools company Caliper acquisition by PerkinElmer for $600m; Australian biotechnology Pharmaxis receiving a positive approval recommendation from the European regulators for its cystic Fibrosis drug Bronchitol; the culmination of the Axis Shield £235m hostile takeover by Alere; the acquisition of Pharmasset by Gilead for $11.0bn (one of the largest ever development-stage biotechnology M&A transactions); Medivation announcing very positive clinical data on its new prostate cancer drug MDV3100; Incyte receiving FDA approval for its new myelofibrosis drug Jakafi; Roche's hostile $5.7bn bid for DNA sequencing company Illumina; and the acquisition of the Company's largest portfolio investment, Micromet, by Amgen for $1.2bn.

Within the unquoted portfolio, specialty pharmaceutical company EUSA received FDA approval for its childhood leukaemia drug, Erwinaze, after which the company announced that it was reviewing its strategic options, including potentially a trade sale to a larger pharmaceutical company. Elsewhere within the portfolio, there were a number of incremental valuation adjustments (up and down). One new investment was made and four follow-on investments made for a total of £1.0m invested in unquoted venture investments during the period.

Best Performing Investments
			% increase in
		Increase	six months to
		in NAV	29 February
		£'000	2012
1	Micromet	4,176	135.2
2	Pharmasset	2,270	57.3
3	Medivation	1,546	146.1
4	Affymax	1,431	125.5
5	Alexion	1,143	49.5
Worst Performing Investments
			% decrease in
		Decrease	six months to
		in NAV	29 February
		£'000	2012
1	Vertex	(313)	(13.1)
2	Actelion	(278)	(9.4)
3	Momenta	(273)	(19.5)
4	Amarin	(232)	(13.6)
5	Reshape	(205)	(22.3)

Outlook

We believe the recent performance of the global biotechnology sector reflects its two key attractions to investors: predictable and stable above-market earnings growth and cash flow generation for the profitable companies during uncertain economic times; and an intense focus on research and development ("R&D") that is delivering a wave of highly innovative and valuable new drugs and medical technologies that are changing medicine.

Biotechnology has come of age and is now at the heart of the pharmaceutical industry's efforts to develop new medicines. A decade on from the sequencing of the human genome, there are now biotechnology companies generating tens of billions of dollars in drug sales annually, with a host of sophisticated new drugs being launched with long patent lives. There has never been a better time to invest in medical innovation - the fruits of which are a wave of new therapies addressing the major health challenges of modern times.

As some larger companies in the healthcare industry continue to rationalise internal R&D functions under economic pressure, they are now reliant on smaller biotech firms for innovation. As a result, M&A activity within the industry is at record levels. The acquisition of our largest portfolio investment Micromet - originally a venture-stage investment for the Company - by Amgen is the latest example of larger companies outsourcing their innovation, and follows six acquisitions within our portfolio over the past twelve months (with an eighth situation - Roche's hostile bid for Illumina - still ongoing).

The Company's quoted portfolio holds investments in the larger profitable biotech companies as they currently offer attractive earnings growth at low valuations by comparison with both absolute historical and relative current levels. However, the focus for new investment remains on companies making the transition to sustainable growth and profitability through the launch of paradigm-changing new drug or device products, as well as on smaller development-stage companies with under-appreciated assets.

While the Company's quoted portfolio gives shareholders exposure to an industry sector that is outperforming the broader equity market over the long-term, the unquoted venture portfolio continues to mature. The Company's venture portfolio has been built up since the C Share issue in February 2007. Five years on, the Investment Manager expects exits from the unquoted portfolio to drive NAV returns and shareholder value in the near and mid-term.

SV Life Sciences Managers LLP

Investment Manager

13 April 2012

Principal Risks and Uncertainties

The Company's principal risks and uncertainties are detailed in the Annual Report for the year ended 31 August 2011.  A detailed explanation can be found on pages 19 to 20 of the Annual Report which is available on the Company's website at www.ibtplc.com.

In the view of the Board, there have not been any changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.

Directors' Responsibility Statement

In respect of the Half Yearly Report for the six months ended 29 February 2012, we confirm that, to the best of our knowledge:

- the condensed set of Financial Statements contained within have been prepared in accordance with IAS 34 "Interim Financial Reporting"; and

- the Chairman's Statement and Investment Manager's Review include a fair review of the information required by 4.2.7R and 4.2.8R of the Financial Services Authority's Disclosure and Transparency Rules.

The Half Yearly Report for the six months ended 29 February 2012 was approved by the Board and the above Responsibility Statement has been signed on its behalf by:

Andrew Barker

Chairman

13 April 2012

Group Statement of Comprehensive Income

for the six months ended 29 February 2012

		(Unaudited)			(Unaudited)			(Audited)
		For the six months ended 29 February 2012			For the six months ended 28 February 2011			For the year ended 31 August 2011
		Group	Group	Group	Group	Group	Group	Group	Group	Group
		Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair value		-	25,021	25,021	-	8,544	8,544	-	7,179	7,179
Losses on current asset investments		(45)	-	(45)	-	-	-	-	-	-
Exchange losses on currency balances		-	(225)	(225)	-	(76)	(76)	-	(101)	(101)
Income	2	112	-	112	38	-	38	196	-	196
Expenses
Management fees	3	(567)	-	(567)	(662)	-	(662)	(1,351)	-	(1,351)
Performance fee		-	(767)	(767)	-	(684)	(684)	-	(486)	(486)
Administrative expenses		(392) ---------	- ---------	(392) --------	(417) ---------	- --------	(417) --------	(830) --------	- ---------	(830) --------
(Loss)/profit before finance costs and tax		(892)	24,029	23,137	(1,041)	7,784	6,743	(1,985)	6,592	4,607
Finance costs
Interest payable	3	(19) ---------	- ---------	(19) --------	(7) ---------	- --------	(7) --------	(23) --------	- ---------	(23) --------
(Loss)/profit on ordinary activities before tax		(911)	24,029	23,118	(1,048)	7,784	6,736	(2,008)	6,592	4,584
Taxation expense		(18) =====	- =====	(18) =====	(4) ======	- =====	(4) =====	(14) ======	- =====	(14) =====
(Loss)/profit for the period and total comprehensive income		(929) =====	24,029 =====	23,100 =====	(1,052) ======	7,784 =====	6,732 =====	(2,022) ======	6,592 =====	4,570 =====
Earnings per Ordinary share	4	(1.67)p =====	43.18p =====	41.51p =====	(1.76)p ======	13.01p =====	11.25p =====	(3.45)p ======	11.24p =====	7.79p =====

The total column of this statement represents the Group's Statement of Comprehensive Income prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

The Group does not have any other comprehensive income and hence the (loss)/profit for the year, as disclosed above, is the same as the Group's total comprehensive income.

The revenue and capital columns are supplementary to this and are prepared under guidance published by the AIC.

All income is attributable to the equity holders of the company. There are no minority interests.

All items in the above statement derive from continuing operations.

The accompanying notes form part of these Financial Statements.

Group Balance Sheet

as at 29 February 2012

		(Unaudited)	(Unaudited)	(Audited)
		At 29 February	At 28 February	At 31 August
		2012	2011	2011
		Group	Group	Group
	Notes	£'000	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss		105,547 ------------	99,538 -------------	95,867 -------------
		105,547	99,538	95,867
Current assets
Current asset investments		6,508	-	-
Other receivables		1,158	1,222	5,427
Cash and cash equivalents		1,770 -----------	360 -------------	23 ------------
		9,436 -----------	1,582 -------------	5,450 ------------
Total assets		114,983	101,120	101,317
Current liabilities
Borrowings		-	-	(7,996)
Other payables		(972) -----------	(2,197) ------------	(1,557) ------------
		(972) -----------	(2,197) ------------	(9,553) ------------
Net assets		114,011 -----------	98,923 ------------	91,764 ------------
Equity attributable to equity holders
Called up share capital	5	14,827	15,408	15,089
Share premium account		18,805	18,805	18,805
Capital redemption reserve		26,990	26,409	26,728
Share purchase reserve		45,596	51,446	46,449
Capital reserves	6	28,530	5,693	4,501
Revenue reserve		(20,737) -------------	(18,838) ------------	(19,808) ------------
Equity shareholders' funds		114,011 -------------	98,923 ------------	91,764 ------------
Net asset value per Ordinary Share	7	205.58p =======	166.80p =======	163.84p =======

The accompanying notes form part of these Financial Statements.

Group Statement of Changes in Equity

	Group For the six months ended 29 February 2012 (Unaudited)
	Called up			Share	Capital		Share
	share			premium	redemption		purchase	Capital	Revenue
	capital			account	reserve		reserve	reserves	reserve	Total
	£'000			£'000	£'000		£'000	£'000	£'000	£'000
Balance at 31 August 2011	15,089			18,805	26,728		46,449	4,501	(19,808)	91,764
Total Comprehensive Income:
Profit/(loss) for the period	-			-	-		-	24,029	(929)	23,100
Transactions with owners, recorded directly to equity:
Shares bought back and held in treasury	-			-	-		(853)	-	-	(853)
Shares cancelled from treasury	(262) ----------			- ---------	262 ----------		- ---------	- -----------	- -----------	- -----------
Balance at 29 February 2012	14,827 ======			18,805 =====	26,990 ======		45,596 =====	28,530 ======	(20,737) ======	114,011 ======
		Group For the six months ended 28 February 2011 (Unaudited)
		Called up		Share		Capital	Share
		share		premium		redemption	purchase	Capital	Revenue
		capital		account		reserve	reserve	reserves	reserve	Total
		£'000		£'000		£'000	£'000	£'000	£'000	£'000
Balance at 31 August 2010		16,208		18,805		25,609	52,913	(2,091)	(17,786)	93,658
Total Comprehensive Income:
Profit/(loss) for the period		-		-		-	-	7,784	(1,052)	6,732
Transactions with owners, recorded directly to equity:
Shares bought back and held in treasury		-		-		-	(1,467)	-	-	(1,467)
Shares cancelled from treasury		(800) ---------		- ---------		800 ----------	- ----------	- ----------	- ----------	- ----------
Balance at 28 February 2011		15,408 =====		18,805 ======		26,409 ======	51,446 ======	5,693 ======	(18,838) ======	98,923 ======
		Group For the year ended 31 August 2011 (Audited)
		Called up	Share		Capital		Share
		share	premium		redemption		purchase	Capital	Revenue
		capital	account		reserve		reserve	reserves	reserve	Total
		£'000	£'000		£'000		£'000	£'000	£'000	£'000
Balance at 31 August 2010		16,208	18,805		25,609		52,913	(2,091)	(17,786)	93,658
Total Comprehensive Income:
Profit/(loss) for the period		-	-		-		-	6,592	(2,022)	4,570
Transactions with owners, recorded directly to equity:
Shares bought back and held in treasury		-	-		-		(6,464)	-	-	(6,464)
Shares cancelled from treasury		(1,119) ----------	- ----------		1,119 ----------		- ----------	- ----------	- ----------	- ----------
Balance at 31 August 2011		15,089 ======	18,805 ======		26,728 ======		46,449 ======	4,501 ======	(19,808) ======	91,764 ======

The accompanying notes form part of these Financial Statements.

Group Cash Flow Statement

	(Unaudited)	(Unaudited)	(Audited)
	For the six months	For the six months	For the year
	ended 29 February	ended 28 February	ended 31 August
	2012	2011	2011
	Group	Group	Group
	£'000	£'000	£'000
Cash Flows from operating activities
Profit before finance costs and tax	23,137	6,743	4,607
Exchange losses on currency balances	225	76	101
Adjustments for:
Increase in investments	(9,680)	(8,089)	(4,418)
(Increase)/decrease in current asset investments	(6,508)	1,500	1,500
Decrease/(Increase) in receivables	4,269	(348)	(4,553)
(Decrease)/Increase in payables	(585)	787	138
Taxation	(18) -----------	(4) ------------	(14) -------------
Net cash Flows from/(used in) operating activities	10,840 -----------	665 ------------	(2,639) -------------
Cash Flows from financing activities
Share repurchase costs	(853)	(1,467)	(6,464)
Interest paid on bank overdrafts	(19) -----------	(7) ------------	(14) -------------
Net cash used in financing activities	(872) -----------	(1,474) ------------	(6,478) -------------
Net increase/(decrease) in cash and cash equivalents	9,968	(809)	(9,117)
Effect of foreign exchange losses	(225)	(76)	(101)
Cash and cash equivalents at beginning of period	(7,973) -----------	1,245 -----------	1,245 ------------
Cash and cash equivalents at end of period	1,770 ======	360 =======	(7,973) =======

The accompanying notes form part of these Financial Statements.

Notes to the Financial Statements

1. Accounting policies

The consolidated Financial Statements have been prepared on a going concern basis, in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union and are presented in Sterling, as this is the principal currency of the primary economic environment in which the Group operates.

The Financial information for each of the six month periods ended 29 February 2012 and 28 February 2011 comprises non-statutory accounts within the meaning of Sections 434 - 436 of the Companies Act 2006. The financial information for the year ended 31 August 2011 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The Company's principal risks and uncertainties remained unchanged to those described in the Annual Report for the year ended 31 August 2011.

The Group's accounting policies have not varied from those described in the Annual Report for the year ended 31 August 2011.

2. Income

	(Unaudited)	(Unaudited)	(Audited)
	For the six months	For the six months	For the year
	ended 29 February	ended 28 February	ended 31 August
	2012	2011	2011
	£'000	£'000	£'000
Income from investments held at fair value through profit or loss:
Franked dividends	1	-	7
Unfranked dividends	111	35	183
Interest on debt securities	- -----------	2 -----------	2 ----------
	112	37	192
Other income:
Income from current asset investments	-	1	3
Other income	- -----------	- -----------	1 ----------
	112 =======	38 =======	196 =======

3. Management fees and interest payable

The investment management fee and any finance costs on borrowings for investment purposes are apportioned 100% to the revenue reserve. As of 29 February 2012 a performance fee of £767,000 has been accrued but not paid relating to gains made on quoted investments.

4. Earnings per Ordinary Share

	(Unaudited)	(Unaudited)	(Audited)
	For the six months	For the six months	For the year
	ended 29 February	ended 28 February	ended 31 August
	2012	2011	2011
	£'000	£'000	£'000
Net revenue loss	(929)	(1,052)	(2,022)
Net capital profit	24,029 ------------	7,784 ------------	6,592 ------------
	23,100 =======	6,732 =======	4,570 =======
Weighted average number of Ordinary shares in issue	55,652,993	59,830,867	58,642,458
Revenue loss per Ordinary share	(1.67)p	(1.76)p	(3.45)p
Capital profit per Ordinary share	43.18p ------------	13.01p ------------	11.24p ------------
Total profit per Ordinary share	41.51p =======	11.25p =======	7.79p =======

5. Called Up Share Capital

During the six months ended 29 February 2012, the Company repurchased 550,000 Ordinary shares to be held in treasury, at a cost of £853,000, which reduced the number of Ordinary shares in issue from 56,007,663 shares to 55,457,663. A further 1,050,000 shares held in treasury were cancelled, leaving 3,850,000 shares in treasury.  Since the half-year end, the Company cancelled a further 500,000 Ordinary Shares from treasury.

The Ordinary shares held in treasury have no voting rights and are not entitled to dividends.

6. Capital reserves

The capital reserve account comprises both realised gains on investments sold and unrealised gains and losses on investments held, which are analysed as follows:

	(Unaudited)	(Unaudited)	(Audited)
	At 29 February	At 28 February	At 31 August
	2012	2011	2011
	£'000	£'000	£'000
Capital reserve - on investments sold	24,357	992	10,200
Capital reserve - on investments held	4,173 -----------	4,701 -----------	(5,699) ------------
	28,530 ======	5,693 =======	4,501 =======

7. Net asset value per ordinary share

	(Unaudited)	(Unaudited)	(Audited)
	At 29 February	At 28 February	At 31 August
	2012	2011	2011
Net assets attributable to ordinary shareholders (£'000)	114,011	98,923	91,764
Ordinary shares in issue at end of period	55,457,663	59,307,663	56,007,663
Net asset value per ordinary share	205.58p =======	166.80p =======	163.84p ========

8. Related party transactions

There have been no related party transactions that have materially affected the financial position or the performance of the Group during the six month period to 29 February 2012.

9. Half Yearly Report

The Company's Half Yearly Report for the six months ended 29 February 2012 will be posted to shareholders in April 2012. Copies of the Half Yearly Report will be available from the Registered Office of the Company at 55 Moorgate, London EC2R 6PA and on the website, www.ibtplc.com, which is a website maintained by the Company's Investment Manager, SV Life Sciences Managers LLP.

For further information, please contact:

Kate Bingham/David Pinniger

Investment Manager

SV Life Sciences Managers LLP

Telephone: [phone]

Rhona Gregg

Company Secretary

BNP Paribas Secretarial Services Limited

Telephone: [phone]                              

13 APRIL 2012

 

END

 

 

IR GGUWUCUPPGRP