Interim Results

Murray VCT 4 PLC 10 October 2000 MURRAY VCT 4 PLC ---------------- Initial Report for the period to 31 August 2000 ----------------------------------------------- The directors are pleased to announce the unaudited interim results of Murray VCT 4 PLC for the period 12 January to 31 August 2000. Key Points ---------- - £38.3 million raised at launch of fund - Three investments completed - Interim dividend of 1.0p for the period to 28 February 2001 - Portfolio 4% invested in qualifying investments at 31 August 2000 SUMMARY OF INVESTMENT CHANGES FOR THE PERIOD TO 31 AUGUST 2000 Net invest- Apprec- ment iation Net proceeds (disinv- (deprec- Valuation of share estment) iation) 31.8.00 issue* £000 % £000 £000 £000 % Venture capital investments Equities - - 541 - 541 1.5 Loan stock - - 827 - 827 2.3 ------------------------------------------------------ - - 1,368 - 1,368 3.8 Listed investments Listed fixed income - - 34,532 82 34,614 94.9 ------------------------------------------------------ Total investments - - 35,900 82 35,982 98.7 Other net assets 36,383 100.0 (35,924) - 459 1.3 ------------------------------------------------------ Equity shareholders' interest 36,383 100.0 (24) 82 36,441 100.0 ====================================================== * After issue expenses of £1,914,908 which were equivalent to 5% of monies raised. INVESTMENT PORTFOLIO SUMMARY AS AT 31 AUGUST 2000 Valuation % of Venture capital investments Nature of business £000 fund ELE Advanced Technologies Precision Engineering 641 1.8 Limited Stratumsoft Limited E - business & virtual media software designer 397 1.1 Cool Beans Production Digital animation & Limited design studio 330 0.9 ----------------- 1,368 3.8 Listed fixed income Treasury 8% Stock 2003 6,197 17.0 Treasury 10% Stock 2001 6,110 16.8 Treasury 5% Stock 2004 5,830 16.0 Treasury 8.5% Stock 2005 5,613 15.4 Treasury 9.75% Stock 2002 5,335 14.6 European Investment Bank 6% 2004 3,432 9.4 Treasury 6.75% Stock 2004 2,097 5.7 ------ ---- 34,614 94.9 ------ ---- Total investments 35,982 98.7 ====== ==== Investment Activity ------------------- Three investments, at a total cost of £1.37 million, were made during the period under review. The first three investments were: - - ELE Advanced Technologies Limited (May 2000) - £640,775: Operating from Coln and Kelbrook in Lancashire ELE is engaged in the precision milling of sophisticated materials and other engineering processes for companies serving the gas turbine industry. The total fundraising was approximately £2.5 million. Murray VCT, Murray VCT 2 and Murray VCT 3 were co-investors. - Stratumsoft Limited (June 2000) - £397,250: Stratumsoft is an established e-business and virtual media software designer whose technology enables operation in digital television, PC and WAP environments. The total fundraising was £1.75 million with a further £1.75 million committed up to March 2001. Murray VCT, Murray VCT 2, Murray VCT 3 and Ventures North West were co-investors. - Cool Beans Productions Limited (June 2000) - £330,000: Based in Sheffield, Cool Beans is a well-established producer of computer generated animations for computer games and broadcast media. The total fundraising was approximately £1.5 million with a further £1 million to be drawn down over the next 18 months. Murray VCT, Murray VCT 2, Murray VCT 3 and South Yorkshire Venture Fund were co-investors. All three fundraisings were led by Murray Johnstone Limited Co-investment ------------- Murray VCT 4 has co-invested with the other Murray VCTs in a number of investments and will continue to do so. The advantages are that, together, the funds are able to underwrite a wider range and size of transaction than would otherwise be the case. The presence of parallel funds ensures that when one fund becomes fully invested, adequate deal flow continues to be attracted by the others, thus ensuring availability of opportunities for future investment when holdings are realised. Murray VCT 3 has a prior right to investment opportunities under £750,000 until that fund first achieves the 70% investment threshold. Murray VCT 3 has achieved a qualifying investment level of 38% as at 31 August 2000. The priority right will then transfer to Murray VCT 4 until if first achieves the 70% qualifying investment level. Larger investment opportunities will be apportioned between the venture capital trusts pro rata to the their respective issued share capital. Participation in each case is also dependent on the availability of funds and other portfolio requirements. These co-investment arrangements have been approved by the directors whose approval is required to depart from the above arrangements. Net asset performance --------------------- The net asset value per share at 31 August 2000, before payment of the interim dividend was 96.2p compared with 95p immediately after launch. Murray VCT 4's investments in unlisted 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, performance which is ahead of plan and which may imply an increase in the value of the investment will not be reflected for at least twelve months; on the other hand material underperformance will be immediately reflected in the valuation. AIM stocks are valued at a discount to mid-market price. Dividends --------- The board has declared an interim dividend for the period ended 28 February 2001 of 1.0p per share. The dividend will be paid on 8 December 2000 to shareholders on the register at close of business on 10 November 2000. Outlook ------- The deal flow is strong with a growing number of larger investment opportunities being considered by Murray Johnstone's regional network of six offices. The economic environment remains challenging. However, with modest economic growth in a low inflation environment, prospects are encouraging for both existing and new investments and conditions will improve if, as is widely believed, UK interest rates are now at or close to their cyclical peak. The board is confident that Murray VCT 4 will achieve the minimum investment target of 70% to comply with the Venture Capital Trust legislation within the three year qualifying period ending on 28 February 2003. MURRAY VCT 4 PLC STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT) for the 33 weeks ending 31 August 2000 Revenue Capital Total £000 £000 £000 Gains on investments - 82 82 Income Income from investments 830 - 830 Other income 25 - 25 Investment management fees (106) (159) (265) Other expenses (77) - (77) --------------------------------- Net return on ordinary activities before tax 672 (77) 595 Tax on ordinary activities (202) 48 (154) --------------------------------- Return attributable to equity shareholders 470 (29) 441 Ordinary dividends on equity shares (383) - (383) --------------------------------- Transfer to (from) reserves (after aggregate dividends declared of £383,000) 87 (29) 58 ================================= Return per ordinary share 1.2p (0.1)p 1.1p Note: The revenue column of the statement of total return is the profit and loss account of the company. MURRAY VCT 4 PLC BALANCE SHEET as at 31 August 2000 £000 £000 Fixed assets 35,982 Investments Current assets Debtors 552 Cash and overnight deposits 663 ------- 1,215 Creditors Amounts falling due within one year 756 ------- Net current assets 459 ------- 36,441 ======= Capital and reserves Called up share capital 3,830 Share premium 32,553 Realised capital losses (85) Unrealised capital gains 56 Revenue reserve 87 ------ Equity shareholders' funds 36,441 ====== Net asset value per ordinary share 95.2p MURRAY VCT 4 PLC CASH FLOW STATEMENT For the 33 weeks ending 31 August 2000 £000 £000 Operating activities Investment income received 538 Deposit interest received 24 Investment management fees paid (100) Secretarial fees paid (9) Cash paid to directors (7) Other cash payments (8) ------- 438 Financial investment Purchase of investments (40,371) Sale of investments 4,252 -------- Net cash outflow from financial investment (36,119) ------ Net cash outflow before use of liquid resources and financing 35,681 Issue of ordinary shares 38,298 Expenses of share issue (1,954) -------- Net cash inflow from financing 36,344 ------ Increase in cash 663 ====== INDEPENDENT REVIEW REPORT TO MURRAY VCT 4 PLC Introduction ------------ We have been instructed by the company to review the financial information set out on pages ** to ** and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities --------------------------- The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The Listing Rules of the Financial Services Authority require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review of work performed ------------------------ We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information. Review conclusion ----------------- On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the period from 12 January to 31 August 2000. Ernst & Young Glasgow 10 October 2000 A full copy of the initial report and accounts will be printed and issued to shareholders. By Order of the Board Murray Johnstone Limited 10 October 2000 Copies of this announcement will be available to shareholders of the Company at the registered office of the Company, 2 Cavendish Square, London W1M 9HA and at Murray Johnstone's office at 7 West Nile Street, Glasgow G1 2PX.

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