Final Results

Murray VCT 4 PLC 16 April 2003 Murray VCT 4 PLC Preliminary results for the year ended 28 February 2003 The Directors announce preliminary results, subject to final audit, of Murray VCT 4 PLC for the year ended 28 February 2003. Key facts •Proposed final dividend of 1.5p per share, making total dividend for the year of 2.5p per share ('pps'). •The Directors confirm that 70% of the Company's investments are in qualifying holdings. •Net Asset Value ('NAV'), before payment of dividends for the year, of 81.5pps. •Total return since launch, being the sum of dividends paid plus NAV, of 86.8pps. Investment activity Further investment during the year ended 28 February 2003 totalled £8.93 million. At 28 February 2003 the portfolio stood at 29 investments having a total cost of £20.86 million. The Directors confirm that 70% of the Company's investments are in qualifying holdings. Four new investments have been made since the publication of the interim report: PLM Dollar Group Limited (November 2002) - £401,785: Based in Inverness, PLM which trades as PDG Helicopters, is an operator of a fleet of commercial helicopters. Public Service Communication Agency Limited (December 2002) - £750,000: Based in Newcastle Upon Tyne, Public Service Communication Agency produces high quality publications aimed at public sector officials in central and local government. ScotNursing Limited (December 2002) - £750,000: Based in Glasgow, ScotNursing is an independent provider of temporary and agency nursing and care staff. TMI Foods Limited (January 2003) - £750,000: Based in Northampton, TMI Foods is a supplier of cooked bacon products to multiple retailers in the food industry. Performance Market conditions continue to be difficult and this is evident in reduced investor confidence in the stock market and increasing reports of weakening profits. These conditions continue to have an adverse impact on corporate performance and therefore on the valuations of the Company's investment portfolio. Realisations are also difficult to achieve in these depressed markets. The NAV per share at 28 February 2003, before payment of all dividends in respect of the year then ended, was 81.5p compared with 88.6p at 28 February 2002. This decrease in NAV of 8.0% compares with the significant reduction in stock market indices generally and, in particular, the FTSE Small Cap Index which fell by 28.6% over the period and the FTSE AIM Index which fell by 31.9%. Portfolio developments Further reductions in valuations have accordingly been necessary, reflecting the difficult economic conditions now prevailing. Sales of investee companies will be pursued but are only likely to occur when market conditions improve and/or when their underlying performance offers attractive exits. Valuation process Murray VCT 4's investments in unquoted companies are valued in accordance with the British Venture Capital Association guidelines. Investments are normally valued at cost, or cost less a provision, until they have been held for at least one year. As a result, should performance be ahead of plan, which may imply an increase in the value of the investment, this would not be reflected for at least 12 months; on the other hand, material underperformance will be immediately reflected in a reduced valuation. AIM stocks are valued at their mid-market price, discounted where necessary to reflect any trading restrictions. The most important measures for a VCT are the long-term record of income and capital gain dividend payments and the timing of those payments over the life of the Company. In the short-term, the NAV is a less important measure of performance, as the valuations do not necessarily reflect the true potential value of the underlying investments. Dividends and returns to date An interim dividend of 1.0p for the year ended 28 February 2003 was paid to Shareholders on 10 December 2002. The Board is proposing a final dividend of 1.5p to be paid on 18 July 2003 to Shareholders on the register on 20 June 2003. The total dividend for the year ended 28 February 2003 will therefore amount to 2.5p per share. Since the Company's launch, most Shareholders will have received 7.8p in tax free dividends. To an investor who took advantage of the initial income tax relief, this represents a return of over 9.7% of the effective initial investment cost of 80p per share. This is equivalent to a gross annual dividend yield of 4.5% from a conventional listed equity for a higher rate taxpayer. This yield ignores the benefit of capital gains tax deferrals which some Shareholders may have received and compares with the FTSE SmallCap yield of 2.8% and the FTSE All-Share yield of 2.7%. The total return since launch is 86.8pps, being the sum of dividends paid plus NAV per share. Board changes The Board of Murray VCT 4 announces that it has accepted the resignations of Sir Gavin Laird, who attained the age of 70 on 14 March 2003, and Mr S J Dobbie, due to increased business commitments, both to be effective from the Annual General Meeting of the Company, to be held on 9 July 2003. The Board also announces that Mr W E Holt will be appointed a Director with effect from 17 April 2003. Outlook The preliminary results reported here reflect continuing poor market conditions; prospects for the current year remain uncertain. The portfolio contains a core of investments which have good prospects, but it could be some time before those prospects can be demonstrated in profitable realisations. The Manager is continuing to work with the portfolio companies to improve performance with a view to maximising the proceeds from eventual exits. The falls in stock market indices over the last three years have led to more realistic pricing expectations in the private equity market. However, although there is a continuing flow of suitable transactions being generated by the Aberdeen Murray Johnstone Private Equity regional network, the market has been, and is expected to remain, challenging. The transaction process has become more protracted through vendor resistance to price reductions and the Manager's caution regarding future prospects. This has had an impact on the investment rate to date and the Manager intends to maintain a cautious approach to investment in the foreseeable future. Murray VCT 4 PLC Profit and Loss Account For the year ended 28 February 2003 Year ended Year ended 28 February 28 February 2003 2002 £'000 £'000 Investment income and deposit interest 1,919 2,064 Investment management fees (1,002) (854) Other expenses (164) (224) ---------- --------- Operating profit 753 986 Profit on realisation of investments 147 3 ---------- --------- Profit on ordinary activities before taxation 900 989 Tax on ordinary activities (260) (308) ---------- --------- Profit on ordinary activities after taxation 640 681 Dividends (959) (963) ---------- --------- Balance transferred from reserves (319) (282) ---------- --------- Earnings per share (pence) 1.7 1.8 ---------- --------- Statement of Total Recognised Gains and Losses For the year ended 28 February 2003 Year ended Year ended 28 February 28 February 2003 2002 £'000 £'000 Profit on ordinary activities after taxation 640 681 Unrealised loss on revaluation of investments (3,705) (2,463) Current taxation attributable to 260 305 ---------- --------- Total recognised losses relating to the year (2,805) (1,477) ---------- --------- Note of Historical Cost Profits and Losses For the year ended 28 February 2003 Year ended Year ended 28 February 28 February 2003 2002 £'000 £'000 Profit on ordinary activities before taxation 900 989 Realisation of revaluation gains of previous years 309 85 Historical cost profit on ordinary activities 1,209 1,074 before taxation ---------- --------- Historical cost loss for the year retained (102) (223) after taxation and dividends ---------- --------- All items in the above statement are derived from continuing operations. The Company has only one class of business and derives its income from investments made in shares, securities and bank deposits. MURRAY VCT 4 PLC BALANCE SHEET As at 28 February 2003 28 February 28 February 2003 2002 £'000 £'000 £'000 £'000 Fixed assets Investments 21,279 33,900 Current assets Debtors 877 805 Cash and short-term deposits 9,118 343 -------- -------- 9,995 1,148 Creditors Amounts falling due within one year 893 878 -------- -------- Net current assets 9,102 270 ------- ------- 30,381 34,170 ------- ------- Capital and reserves Called up share capital 3,846 3,856 Share premium account 17,155 17,021 Revaluation reserve (5,727) (2,065) Capital redemption reserve 27 - Profit and loss account 15,080 15,358 ------- ------- Equity Shareholders' funds 30,381 34,170 ------- ------- Net Asset Value per Ordinary share 79.0 88.6 (pence) MURRAY VCT 4 PLC CASH FLOW STATEMENT For the year ended 28 February 2003 28 February 2003 28 February 2002 £'000 £'000 £'000 £'000 Operating activities Investment income received 2,055 2,028 Deposit interest received 10 19 Investment management fees paid (964) (807) Secretarial fees paid (63) (60) Cash paid to and on behalf of Directors (40) (56) Other cash payments (74) (114) ------- ------- Net cash inflow from operating activities 924 1,010 ------- ------- Taxation 36 (544) Financial investment Purchase of investments (13,407) (4,444) Sale of investments 22,268 4,420 ------- ------ Net cash inflow/(outflow) from 8,861 (24) financial investment Equity dividends paid (960) (1,075) ------- ------- Net cash inflow/(outflow) before 8,861 (633) financing Financing Issue of Ordinary shares 90 178 Repurchase of Ordinary shares (176) - ------- ------- Net cash (outflow)/inflow from financing (86) 178 ------- ------- Increase/(decrease) in cash 8,775 (455) ------- ------- The results stated above for the year ended 28 February 2002 are abridged from the full accounts for that year, which received an unqualified report from the Auditors and have been filed with the Registrar of Companies. Earnings per Ordinary share have been calculated using the average number of shares in issue during the period of 38,468,537. Net Asset Values per Ordinary share have been calculated using the number of share in issue at 28 February 2003 of 38,462,957. A summary of investment changes during the year and the portfolio of investments as at 28 February 2003 are attached. The results for the year to 28 February 2003, which are subject to final audit, will be filed with the Registrar of Companies. A full copy of the Annual Report will be printed and issued to Shareholders. Copies of this announcement will be available to shareholders of the Company at the registered office of the Company, One Bow Churchyard, Cheapside, London EC4M 9HH and at Aberdeen's office at 123 St Vincent Street, Glasgow G2 5EA. By Order of the Board MURRAY JOHNSTONE LIMITED SECRETARY 16 April 2003 MURRAY VCT 4 PLC SUMMARY OF INVESTMENT CHANGES For the period ending 28 February 2003 Valuation Net Appreciation Valuation investment 28 February (disinvestment) (depreciation) 28 February 2002 2003 £'000 % £'000 £'000 £'000 % Unlisted investments Equities 3,048 7 8.9 1,733 (1,327) 3,454 11.4 Preference 449 1.3 536 (444) 541 1.8 shares Loan stock 5,732 16.8 6,604 (1,976) 10,360 34.1 ------ ------ ------- ------- ------- ------ 9,229 27.0 8,873 (3,747) 14,355 47.3 ------ ------ ------- ------- ------- ------ Listed investments Fixed 24,671 72.2 (17,936) 189 6,924 22.8 income ------- ------ -------- ------- ------- ------ Total 33,900 99.2 (9,063) (3,558) 21,279 70.1 investments ------- ------ -------- ------- ------- ------ Other net 270 0.8 8,832 - 9,102 29.9 assets ------- ------ -------- ------- ------- ------ Equity 34,170 100.0 (231) (3,558) 30,381 100.0 Shareholders'------- ------ -------- ------- ------- ------ funds MURRAY VCT 4 PLC INVESTMENT PORTFOLIO SUMMARY As at 28 February 2003 % of Valuation total Unlisted investments Nature of business £'000 assets Conveco Convenience store 1,674 5.5 operator TLC (Tender Loving Operator of day care 1,137 3.7 Childcare) nurseries CCM Motorcycles Motorcycle 1,008 3.3 manufacturer Tuscan Energy Group Oil production 850 2.8 Transys Projects Provider of engineering 825 2.7 services to the rail industry TMI Foods Cooked bacon food 750 2.5 processor Public Service Government sector 750 2.5 Communication Agency publishing Scot Nursing Provider of temporary 750 2.5 and agency nursing and care staff Synexus Management of clinical 695 2.3 trials House of Dorchester Manufacturer of high 650 2.1 quality chocolate confectionery Other investments valued individually at less than 5,266 17.4 £650,000 -------- ------ 14,355 47.3 Listed fixed income investments European Investment Bank 6% 26/11/2004 3,645 12.0 Treasury 8.5% 7/12/2005 1,131 3.7 Treasury 5% 7/6/2004 1,124 3.7 Treasury 6.5% 7/12/2003 1,024 3.4 -------- ------ 6,924 22.8 -------- ------ Total investments 21,279 70.1 -------- ------ This information is provided by RNS The company news service from the London Stock Exchange

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