Final Results
Close Brothers Dev VCT PLC
6 March 2001
Close Brothers Development VCT PLC
Report and accounts for the period ended 31 December 2000
CHAIRMAN'S STATEMENT
Investment progress
The board of Close Brothers Development VCT PLC is pleased to announce the
results for the year to 31 December 2000.
A total of £4.75 million was invested or reserved for investment in qualifying
unquoted companies during the year, bringing the total level of investments by
cost to £5.5 million. It is pleasing to see that the Company's gradual and
cautious investment policy is beginning to show positive results, with the
unquoted portfolio now seeing upward revaluations of over £700,000. This
brings the Company's total unquoted investments, including amounts reserved
for investment, to £6.2 million by value.
The two main sources of revaluation are Swetenham's Marketing Services and
Odyssey Clubs Group. Both companies saw further investment by third party
investors at values higher than the VCT's original cost.
The Company is now in its third year of operation, and consequently the level
of qualifying investments needs to reach the Inland Revenue target of 70% of
total assets by the year end. Investments totalling £2.7 million are
currently in legal stages, and when completed, these will take total
investments, including amounts reserved for investment, to 60%. In addition,
further investments are in an advanced state of negotiation, ensuring that
your Company will reach the required level of investment by the year end.
Overall, the performance of the investment portfolio, and the strong cash
generation of the Company's investment structure have been satisfactory. The
use of high yielding loan stocks has led to an increase in the Company's
income for the year, which has in turn led to an increased total dividend of
3.75 pence per share.
Results and dividend
Net income after taxation was £570,000 for the year (1999: £327,000) enabling
the board to declare a net final dividend of 2.35 pence per share (1999: 1.5
pence). This is in addition to the interim dividend of 1.4 pence per share
(1999: 1.0 pence paid to those shareholders who invested by the First Closing
on 26 January 1999 and 0.6 pence per share paid to those shareholders who
invested subsequently, up to the Last Closing on 27 May 1999) bringing the
total dividend to 3.75 pence (2.5 pence).
As at 31 December 2000 and following the revaluations detailed above, the net
asset value applicable to the Ordinary Shares has risen to £14.1 million
(1999: £13.7 million), or 96.8 pence per share (1999: 93.7p). The dividend
will be paid on 27 April 2001 to shareholders on the register on 30 March
2001.
Roderick Davidson
Chairman 6 March 2001
Close Brothers Development VCT PLC
Statement of Total Return
(incorporating the revenue account)
for the year to 31 December 2000
Year ended Period ended
31 December 2000 31 December 1999
Rev. Cap. Tot. Rev. Cap. Tot.
£'000 £'000 £'000 £'000 £'000 £'000
Gains / (losses) on
investments - 652 652 - (7) (7)
Income 937 - 937 586 - 586
Investment management fees (81) (244) (325) (73) (218) (291)
Other expenses (99) (30) (129) (103) (23) (126)
____ ____ ____ ____ ____ ____
Return on ordinary
activities before tax 757 378 1,135 410 (248) 162
Tax on ordinary
activities (187) 67 (120) (83) 49 (34)
Return attributable to
shareholders 570 445 1,015 327 (199) 128
Dividends (550) - (550) (320) - (320)
____ ____ ______ ____ _____ _____
Transfer to/(from)
reserves 20 445 465 7 (199) (192)
===== ==== ===== ==== ===== =====
Return per share 3.9p 3.0p 6.9p 2.7p (1.6)p 1.1p
The revenue columns of this statement represent the profit and loss account of
the Company.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the period.
Close Brothers Development VCT PLC
Balance Sheet
at 31 December 2000
31 December 2000 31 December 1999
£'000 £'000
Fixed asset investments
Qualifying 3,566 756
Non-qualifying 8,983 5,981
______ ______
Total fixed asset investments 12,549 6,737
Current assets
Debtors 87 101
Short term money market deposits 2,037 7,270
______ _____
2,124 7,371
Creditors: due within one year (476) (371)
______ _____
Net current assets 1,648 7,000
______ _____
Net assets 14,197 13,737
====== ======
Represented by:
Called up share capital 7,331 7,331
Share premium account - 6,598
Special reserve 6,593 -
Capital reserve
realised (398) (192)
unrealised 644 (7)
Profit and Loss account 27 7
______ ______
Total equity shareholders' funds 14,197 13,737
====== ======
Net asset value per share 96.8p 93.7p
The financial statements were approved by the Board of Directors on 6 March
2001.
Signed on behalf of the Board of Directors
Roderick Davidson
Chairman
Close Brothers Development VCT PLC
Cashflow Statement
for the year ended 31 December 2000
Year ended Period ended
31 December 2000 31 December 1999
£'000 £'000
Operating activities
Investment income received 560 29
Deposit interest received 206 433
Investment management fees paid (322) (209)
Other cash payments (135) (75)
____ _____
Net cash inflow from operating activities 309 178
Taxation
UK corporation tax paid (18) -
Capital expenditure and financial investments
Purchase of qualifying investments 2,100 756
Purchase of non-qualifying investments (4,494) (5,981)
Disposals of non-qualifying investments 1,500 -
_____ ______
Net cash outflow from investing activities (5,094) (6,737)
Equity dividends paid
Dividends paid on ordinary shares (425) (101)
______ ______
Net cash outflow before financing (5,228) (6,660)
Financing
Cancellation of share premium (5) 13,930
______ ______
Net cash (outflow)/inflow (5,233) 7,270
====== ======
AUDITORS' REPORT
TO THE MEMBERS OF CLOSE BROTHERS DEVELOPMENT VCT PLC
Respective responsibilities of Directors and Auditors
The Directors are responsible for preparing the Annual Report, including, as
described on page 19, the preparation of the financial statements, which are
required to be prepared in accordance with applicable United Kingdom law and
accounting standards. Our responsibilities, as independent auditors, are
established by statute, the Auditing Practices Board, the Listing Rules of the
London Stock Exchange, and by our profession's ethical guidance.
We report to you our opinion as to whether the financial statements give a
true and fair view and are properly prepared in accordance with the Companies
Act 1985. We also report to you if, in our opinion, the directors' report is
not consistent with the financial statements, if the Company has not kept proper
accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law or
the Listing Rules regarding directors' remuneration and transactions with the
Company is not disclosed.
We review whether the corporate governance statement on pages * to * reflects
the company's compliance with the seven provisions of the Combined Code
specified for our review by the Stock Exchange, and we report if it does not.
We are not required to consider whether the Board's statements on internal
control cover all risks and controls, or form an opinion on the effectiveness
of the corporate governance procedures or risk and control procedures.
We read the other information contained in the Annual Report, including the
corporate governance statement, and consider whether it is consistent with the
audited financial statements. We consider the implications for our report if
we become aware of any apparent misstatements or material inconsistencies with
the financial statements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards
issued by the Auditing Practices Board. An audit includes examination, on a
test basis, of evidence relevant to the amounts and disclosures in the
financial statements. It also includes an assessment of the significant
estimates and judgements made by the Directors in the preparation of the
financial statements, and of whether the accounting policies are appropriate
to the circumstances of the Company, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state
of affairs of the Company as at 31 December 2000 and of the capital return,
revenue return and the total return of the Company for the year then ended and
have been properly prepared in accordance with the Companies Act 1985.
6 March 2001
Deloitte & Touche Stonecutter Court
Chartered Accountants 1 Stonecutter Street
and Registered Auditors London
EC4A 4TR
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