Interim Results

Close IHT AIM VCT PLC 18 July 2007 CLOSE IHT AIM VCT PLC Interim results for the six months to 31 May 2007 Close IHT AIM VCT PLC (the 'Company'), which invests in companies listed on the Alternative Investment Market and PLUS, across a variety of sectors, today announces interim results for the six months ended 31 May 2007. This announcement was approved by the Board of Directors on 18 July 2007. CHAIRMAN'S STATEMENT It is pleasing to be able to report satisfactory progress on a number of fronts in the six months to 31 May 2007. In a volatile stock market the Net Asset Value (NAV) has progressed, a good rate of investment has been maintained and the share price discount to NAV has remained narrow. Performance Shareholders may recall that there were serious fears amongst investors worldwide at the end of February and in early March 2007. Some of those fears have started to resurface, prompted mainly by the problems in the sub-prime lending markets in the United States and AIM in general cannot be wholly immune from such worldwide financial market trends and changes in sentiment. However, it appears at present that many of the smaller companies on AIM continue to trade well, so despite stock market volatility, the NAV has risen in the six months to 31 May 2007. In that period the AIM All Share Index has risen 19%, nearly twice the rate of increase of the FTSE All Share Index. In comparison the NAV of your company has increased by 7.9%. The rise in the index has been driven to a significant extent by a number of the larger international companies, (in particular the oil and gas and mining companies, which account for 30% of AIM), in which your Company is unable to invest. Against this background, and given that your Company is not yet fully invested and so retains a substantial cash balance, your Board regards this performance as satisfactory. Dividends Your Board believes in maximising tax free dividends to shareholders and it is the Board's intention to produce a steady and appropriate dividend stream. In the short term, however, dividend progression will be constrained as new investments are made and the cash balance reduced. Following the 1.0p per share paid to all shareholders last March, a first interim dividend of 1.0p per share has been declared. The dividend will be paid on 24 August 2007 to shareholders on the register on 27 July 2007. Buy-back Policy The Board has adopted a share buy-back policy whereby the Company, when able, will buy back shares at around an 8% discount to the prevailing net asset value per share. This is designed to improve the marketability of the shares and to encourage the shares to trade at a narrower discount to their underlying worth. During the period, the Company bought back 20,400 shares at 90p. Shareholders wishing to sell their shares should first contact the Investment Manager, Close Investments Limited. Shareholders should note that if they sell their shares within three years of the original purchase, they would lose any tax relief that has been obtained. Portfolio Activity Over the period, various holdings within the portfolio reported positive results. Brulines continues to trade well as their major pub chain customers embark on extensive roll out programs of its flow monitoring system throughout their estates. Both Hatpin and Hexagon reported good results as both appear to be benefiting from a buoyant recruitment sector backdrop. Vertu Motors, the acquiror and consolidator of UK based motor retail businesses, made its first major acquisition earlier this year after raising a further £26m. It has since made 3 further acquisitions. In March this year, BBI acquired Theratese, a UK listed manufacturer and supplier of specialist enzymes to the medical diagnostics industry. The company's recent announcement confirmed that BBI continues to trade well and that the integration process is on track. In my statement with the last accounts, I remarked that the Investment Manager anticipates making several new investments in forthcoming months. I am pleased to report that that has been the case and that, in total seven new investments have been made. At the date of writing, one further investment has been made since the end of May 2007. Altogether these new holdings amount to £3.61m, of which £3.1m was invested in the six months to 31 May 2007. The following new investments were made during the period under review: Hexagon PLC Hexagon is a profitable multi-discipline interim and permanent recruitment consultant. Neuropharm PLC Neuropharm is a UK based pharmaceutical company focussed on the development of products that treat conditions affecting the brain and nerves, mainly autism. Claimar Care Group PLC Claimar is a provider of domiciliary care services for Local Authorities across the UK. BGlobal PLC BGlobal manufactures smart metering and data retrieval services for electricity, natural gas and water utilities. IDOX PLC IDOX develops integrated and adaptable software systems for document, content and information management. Pressure Technologies PLC Pressure Technologies designs, manufactures and provides testing services for a range of niche high pressure and seamless steel gas cylinders. Mount Engineering PLC Mount Engineering manufactures and distributes a range of valves and thread conversion components to the oil & gas and other process markets. Including the amount invested up to 30 November 2006, your Company has invested £7.2m since February 2006. At the time of writing, the fund was 36% invested in qualifying holdings. Your Board believes that the target of a minimum level of 70% required by HM Revenue & Customs for VCT status will be achieved in the three year timescale. Budget Changes to VCTs Shareholders will, no doubt, be aware of the Chancellor's changes to VCT regulations in the Budget in March 2007. One change relating to the treatment of investment sale proceeds should prove helpful to your Company in the future. However, changes affecting the nature of eligible investments do not have a direct bearing on your Company or the present portfolio. Outlook Although the rate of new issues has slowed down over the last year, the Investment Manager has managed to acquire a number of qualifying investments at sensible valuations for the portfolio. Despite the probability of a lull during the summer months, a reasonable rate of new investment activity should continue. That trend should be helped by the UK economy which continues to grow, despite the trend of higher interest rates and the potential for a slowdown in consumer spending as the year progresses. There remain, however, concerns for investors across a number of areas, ranging from inflation and growth rates to volatility in the credit markets. Potentially some of these issues may mean that ratings and valuations of new investments come down from initial expectations to the advantage of long-term investors in a VCT. That remains to be seen. In the meantime companies in the existing portfolio generally report reasonable trading and I look forward to reporting on further progress in the full accounts early next year. Keith Mullins Chairman 18 July 2007 Income Statement Unaudited Unaudited Period to Audited Six months to 31 May 2006 Year ended 31 May 2007 30 November 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 2,092 2,092 - 137 137 - 56 56 Investment income 466 - 466 310 - 310 760 - 760 Investment management fees (73) (220) (293) (42) (124) (166) (114) (342) (456) Other expenses (93) - (93) (40) - (40) (119) - (119) Return on ordinary activities 300 1,872 2,172 228 13 241 527 (286) 241 before finance costs and taxation Finance costs - - - - - - (4) - (4) Return on ordinary activities 300 1,872 2,172 228 13 241 523 (286) 237 before taxation Taxation on ordinary (47) 42 (5) (20) - (20) (95) 65 (30) activities Return attributable to equity 253 1,914 2,167 208 13 221 428 (221) 207 shareholders Return per share (pence) - basic and diluted 1.01 7.66 8.67 1.51 0.10 1.61 1.86 (0.96) 0.90 All of the Company's activities derive from continuing operations. No operations were acquired or discontinued during the period. The Company has no recognised gains or losses other than those disclosed above, accordingly a statement of total recognised gains and losses is not required. The total column of the Income Statement represents the profit and loss of the Company. The supplementary revenue return and capital return columns have been prepared in accordance with the Association of Investment Companies' Statement of Recommended Practice. Balance Sheet Unaudited Unaudited Audited 31 May 2007 31 May 2006 30 November 2006 £'000 £'000 £'000 Fixed asset investments - at fair value through profit or loss Qualifying investments 7,768 3,021 3,768 Non-qualifying investments 16,322 3,193 18,574 24,090 6,214 22,342 Current assets Debtors 156 165 139 Cash at bank 2,048 17,549 1,551 2,204 17,714 1,690 Creditors: (720) (81) (357) Amounts falling due within one year Net current assets 1,484 17,633 1,333 Net assets 25,574 23,847 23,675 Capital and reserves Called up share capital 3 3 3 Share premium - 23,623 - Special reserve 23,605 - 23,623 Realised capital reserve (237) (73) (209) Unrealised capital reserve 1,930 86 (12) Revenue reserve 273 208 270 Equity shareholders' funds 25,574 23,847 23,675 Net asset value per share (pence) 102.38 95.39 94.70 Reconciliation of movements in shareholders' funds for the six months to 31 May 2007 Called up Share Capital Capital Revenue Total share premium Special reserve reserve reserve capital reserve realised unrealised £'000 £'000 £'000 £'000 £'000 £'000 £'000 Period ended 31 May 2007 As at 30 November 2006 3 - 23,623 (209) (12) 270 23,675 Net return after taxation - - - (28) 1,942 253 2,167 for the period Dividends paid - - - - - (250) (250) Shares purchased for - - (18) - - - (18) cancellation As at 31 May 2007 3 - 23,605 (237) (1,930) 273 25,574 Called up Share Capital Capital Revenue Total share premium Special reserve reserve reserve capital reserve realised unrealised £'000 £'000 £'000 £'000 £'000 £'000 £'000 Period ended 31 May 2006 As at 4 August 2005 - - - - - - - Issue of equity 3 24,998 - - - - 25,001 Issue costs of equity - (1,375) - - - - (1,375) Net return after taxation - - - (73) 86 208 221 for the period As at 31 May 2006 3 23,623 - (73) 86 208 23,847 Called up Share Capital Capital Revenue Total share premium Special reserve reserve reserve capital reserve realised unrealised £'000 £'000 £'000 £'000 £'000 £'000 £'000 Period ended 30 November 2006 As at 4 August 2005 - - - - - - - Issue of equity 3 24,998 - - - - 25,001 Issue costs of equity - (1,375) - - - - (1,375) Transfer to special reserve - (23,623) 23,623 - - - - Net return after taxation - - - (209) (12) 428 207 for the period Dividends paid - - - - - (158) (158) As at 30 November 2006 3 - 23,623 (209) (12) 270 23,675 Cash Flow Statement for the six months to 31 May 2007 Unaudited Unaudited Audited Six months to Period to Period ended 31 May 2007 31 May 2006 30 November 2006 £'000 £'000 £'000 Operating activities Investment income received 420 144 192 Deposit interest received 32 - 438 Investment management fees paid (326) (143) (409) Other expenses paid (74) (1) (66) Net cash inflow from operating activities 52 - 155 Servicing of finance Interest paid - - (4) Capital expenditure and financial investment Purchase of qualifying investments (2,698) (3,160) (18,272) Purchase of non-qualifying investments (17) (3,250) (4,176) Disposal of qualifying investments 419 333 380 Disposal of non-qualifying investments 3,009 - - Net cash inflow/(outflow) from investing activities 713 (6,077) (22,068) Dividends Equity dividends paid (250) - (158) Financing Issue of equity net of expenses - 23,626 23,626 Cancellation of shares (18) - - Net cash (outflow)/inflow from financing (18) 23,626 23,626 Increase in cash 497 17,549 1,551 1. Details about the Investment Manager Close IHT AIM VCT PLC is managed by Close Investments Limited. Close Investments Limited is authorised and regulated by the Financial Services Authority and is a subsidiary of Close Brothers Group plc. 2. Statutory accounts The information for the period ended 30 November 2006 does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. A copy of the statutory accounts for the year has been delivered to the Registrar of Companies. This interim announcement has not been audited. 3. Changes in equity There were no changes in equity other than those arising from capital transactions with the owners and distribution to owners. 4. Accounting policies This information is prepared on the basis of the accounting policies as stated in the latest statutory accounts. For further information, please contact: Andrew Buchanan / Freda Isingoma Karen Wagg Close Investments Limited Polhill Communications Tel: 020 7426 4000 Tel: 0207 6550500 This information is provided by RNS The company news service from the London Stock Exchange

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