Final Results

BioScience VCT plc 27 February 2004 BioScience VCT plc Preliminary Results for the year ended 31 December 2003 BioScience VCT Plc is a Venture Capital Trust. The investment manager is Octopus Asset Management Limited ('Octopus') and the technology adviser is Medical Marketing International Group plc ('MMI'). The Trust was launched in October 2001 and raised over £7m (£6.8m net of expenses) through an offer for subscription. The Trust invests in unquoted and quoted bioscience companies and aims to provide attractive long-term returns to shareholders. Financial highlights (figures as at 31 December 2003): • Net assets £6,911,000 • Net revenue before tax £48,000 • Revenue return per share* 0.5p • Net asset value per share 93.9p • Mid-market share price at end of year 70p • Dividend per share 0.5p * based on weighted average of 7,255,252 shares in issue in the year. For further information please contact: Chris Hulatt Octopus Asset Management Ltd 020 7255 7962 David Best Medical Marketing International Group plc 01223 477677 Management Commentary The Chairman of BioScience VCT plc, Dr Paul Nicholson, included the following points in his statement to shareholders: I am delighted to present my second annual report to shareholders in BioScience VCT. Background We continue to believe that companies in the bioscience sector are well-placed to benefit from the attractive industry back-drop. A combination of the demographic profile of the Western world and the increasing reliance of large pharmaceutical companies on bioscience companies for new products means that there is likely to be a buoyant market for the products and technologies emerging from such companies. In the first half of 2003, the Iraq crisis had an adverse impact upon global financial markets. This had a knock-on effect on bioscience companies, with many proposed funding rounds not being completed. However, following the end of the Iraq war, a renewed sense of confidence came back to the sector. Valuations remained at fairly low levels leading to an increase in the number of deals that happened in the sector. Investment Policy As described in my statement last year, we place a particular emphasis on companies that combine a strong scientific heritage with a high quality management team. During 2003, we identified a number of companies that met our requirements. I am pleased to be able to report that we had completed two investments in unquoted companies and two investments in AIM-quoted companies by the end of 2003. We also took advantage of the sharp rise in the share price of GTC Biotherapeutics to dispose of half of our holding. Net Asset Value ('NAV') After providing for a dividend of 0.5p, the NAV at 31 December 2003 was 93.9p, compared with a launch figure of 95p (after deducting issue expenses). When the dividend of 0.75p, paid on 6 May 2003, is taken into account, this means that the total of the current net asset value and cumulative dividends is 95.15p, a slight premium to the initial net asset value of 95p. The net return for 2003 was £50,000, equivalent to a return per share of 0.7p, based on the weighted average of 7,255,252 shares in issue throughout the period. The amount available for distribution to shareholders equates to approximately 0.5p per share in issue at the year-end. Therefore, the directors recommend a dividend of 0.5p per share, to be paid on 7th May 2004, to shareholders on the register on 2nd April 2004. The size of the proposed dividend has been affected by the low level of interest that has been earned by the Company's cash deposits during the year. As funds continue to be moved from money market securities into investments, it is likely that dividends paid out of the Company's income will remain small. However, in the medium-term, we will seek to realise capital gains from investment disposals for distribution to shareholders. In order to allow the Company to distribute capital gains to shareholders, the directors will dispense with the Company's investment company status at the appropriate time. This does not have any impact on VCT status. Share price The company's mid-market share price stood at 70p at the end of 2003, and, as is normal with a VCT in the first few years, there have been few transactions in the shares. We will be asking shareholders at the annual general meeting to renew the board's powers to purchase shares in the market for cancellation or purchase into treasury. This should assist the marketability of the shares and help prevent the shares from trading at a wide discount to NAV. During 2003, we repurchased 3,000 shares for cancellation at a price of 85p. The Board is seeking your authority to renew the shareholder approval to issue further shares up to 10% of the existing share capital. If any shareholder would like to increase their shareholding by applying for new shares in the VCT, they should contact our investment managers, Octopus. VCT Qualifying Status Your board has retained KPMG LLP to monitor and report on the company's progress towards meeting the qualifying investment requirements as set out in the VCT legislation. As a result of the progress made in 2003 and the high level of dealflow, both in terms of quantity and quality, that is being experienced at present, we believe that we will meet the requirement to invest at least 70% of the VCT's funds in qualifying investments by 31 December 2004. Prospects The improvement in the environment for investing in bioscience companies which was experienced in the latter part of 2003 has continued into early 2004. We are evaluating a number of potential investments and I look forward to updating you on our progress throughout this year. Dr Paul Nicholson Chairman Statement of Total Return (incorporating the Revenue Account) For the period ended 31 December 2003 Year ended 31 December 2003 Year ended 31 December 2002 Revenue Capital Total Revenue Capital Total £000 £000 £000 £000 £000 £000 Realised gains on investments - 35 35 - - - Unrealised gains on investments - 117 117 - 7 7 Income 229 - 229 196 - 196 Investment management fee (50) (150) (200) (34) (102) (136) Other expenses (131) - (131) (105) - (105) ------ ----- ----- ----- ----- ----- Return on ordinary activities before tax 48 2 50 57 (95) (38) Tax on ordinary activities (9) 9 - - - - ------ ----- ----- ------ ----- ----- Return on ordinary activities after tax 39 11 50 57 (95) (38) Dividends (37) - (37) (54) - (54) ------ ----- ----- ------ ----- ----- Transfer to reserves 2 11 13 3 (95) (92) ------ ----- ----- ------ ----- ----- Return per share 0.5p 0.2p 0.7p 1.0p (1.6p) (0.6p) Balance sheet 31 December 2003 31 December 2002 £000 £000 £000 £000 Fixed asset investments 857 37 Current assets Investments 5,969 6,534 Debtors 9 40 Cash at bank 243 202 ------ ------ 6,221 6,776 Creditors (amounts falling due within one year) (167) (86) ------ ------ Net current assets 6,054 6,690 ------ ------ Net assets 6,911 6,727 ------- ------- Called-up equity share capital 3,679 3,589 Share premium 3,312 3,230 Capital redemption reserve 2 - Capital reserve - realised (208) (102) - unrealised 124 7 Revenue reserve 2 3 ------- ------- Total equity shareholders' funds 6,911 6,727 ------- ------- Net asset value per share 93.9p 93.7p Cash flow statement For the period ended 31 December 2003 31 December 2003 31 December 2002 £000 £000 £000 £000 Net cash outflow from operating (74) (53) activities Financial investment: Purchase of investments (617) (29) Sale of investments 50 - ----- ----- Net cash outflow from financial investment (567) (29) Equity dividends paid (54) - Management of liquid resources 565 (6,534) Net cash outflow before financing (130) (6,616) Financing: Issue of ordinary shares 183 7,100 Share issue expenses (9) (282) Repurchase of ordinary shares (3) - ----- ------ Net cash inflow from financing 171 6,818 ------ ------ Increase in cash at bank 41 202 ------ ------ Investment Portfolio Summary As at 31 December 2003 Investments Valuation £000's Unlisted investments Scancell Ltd 400 Insense Technologies Ltd 100 AIM-listed investments Cobra Biomanufacturing plc 187 Dawmed plc 128 Listed GTC Biotherapeutics Inc 42 Total 857 The above summary of results for the period ended 31 December 2003 does not constitute statutory financial statements within the meaning of Section 240 of the Companies Act 1985 and has not been delivered to the Registrar of Companies. Statutory financial statements will be filed with the Registrar of Companies in due course; the auditors' report on those financial statements under S235 of the Companies Act 1985 is unqualified and does not contain a statement under S237(2) or (3) of the Companies Act 1985. The proposed final dividend for the period ended 31 December 2003, if approved by shareholders, will be paid on 7 May 2004 to shareholders on the register at the close of business on 2 April 2004. A copy of the full annual report and financial statements for the period ended 31 December 2003 is expected to be posted to shareholders shortly and will be available to the public at the registered office of the company at Kett House, Station Road, Cambridge, CB1 2JY. The annual general meeting will be held at the offices of Eversheds at Kett House, Station Road, Cambridge, CB1 2JY on 24 March 2004 at 3:00pm. This information is provided by RNS The company news service from the London Stock Exchange

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