Interim Results
Close Brothers Dev VCT PLC
26 September 2003
CLOSE BROTHERS DEVELOPMENT VCT PLC
INTERIM RESULTS
26 September 2003
Close Brothers Development VCT PLC VCT PLC ('the Company'), which offers
investors the opportunity to participate in a balanced portfolio of technology
and non-technology businesses, today announces interim results for the six
months to 30 June 2003.
Financial Highlights:
• NAV per Ordinary Share of 78.3 pence (2002: 92.0 pence)
• NAV per C Share of 94.3 pence
• Interim dividend of 1.8 pence per Ordinary Share (2002: 1.8 pence)
• Interim dividend of 0.75 pence per C Share(1) (2002: 1.8 pence)
(1) Dividend of 0.375 pence per C share for those shareholders registered after
31 December 2002.
R. M. Davidson, Chairman, commented: 'The period under review saw the closing of
the 'C' Share issue, in which the Company raised a total of £11.7 million for
further investment. This issue accounted for approximately 25% of the VCT
fundraising market as a whole for the 2003 season, and will enable the company
to diversify and develop further its investment portfolio.
Investment activity over the period for both the Ordinary and the 'C' Shares
portfolios concentrated on providing further funds for growth in existing
investee companies, though a number of interesting new opportunities are under
review, some of which should complete this financial year. Overall, existing
investee companies performed encouragingly in a slightly toughened economic
climate, though partial provisions were made against two of our investments,
Automotive Technik and Q Garden Centres. Following the half year, we sold our
entire shareholding in Swetenhams Marketing Services, which has generated a
return for the fund over the last four years of approximately 10 per cent. per
annum.'
For further information, please contact:
Patrick Reeve/ Ole Bettum Justin Griffiths/ John West
Close Venture Management Tavistock Communications
Tel: 020 7426 4000 Tel: 020 7600 2288
Notes to Editors:
1) Close Brothers Development VCT PLC is managed by Close Venture
Management.
2) Close Venture Management is a subsidiary of Close Brothers Investment
Limited and is regulated by the FSA.
3) Unaudited interim reports for the period will be sent to shareholders
shortly.
4) The financial information set out in the announcement does not
constitute the Company's statutory accounts for the six months ended 30 June
2003 or 2002. The financial information for the year ended 31 December 2002 is
derived from the statutory accounts delivered to the Registrar of Companies.
The auditors reported on those accounts; their report was unqualified and did
not contain a statement under s237 (2) or (3) of the Companies Act 1985.
Chairman's statement
Introduction
The investment strategy of the Company is to establish a diversified portfolio
of holdings in smaller, unquoted companies whilst at the same time selecting and
structuring investments in such a way as to reduce the risk normally associated
with investment in such companies. This is achieved as follows:
• Qualifying Investments representing approximately 80 per cent. of
net funds raised and comprise investments in businesses across a broad spread of
industries.
• Up to two thirds of Qualifying Investments comprising debt secured
on 'bankable' assets. This debt generates a significant proportion of the total
anticipated return from individual investments.
• Up to 20 per cent. of net funds raised being in Non-Qualifying
Investments comprising fixed and floating interest rate securities, financial
instruments and short term money market deposits all issued by or with major
banks with a Moody's credit rating of at least A.
Chairman's statement
Investment progress
The period under review saw the closing of the 'C' Share issue, in which the
Company raised a total of £11.7 million for further investment. This issue
accounted for approximately 25% of the VCT fundraising market as a whole for the
2003 season, and will enable the company to diversify and develop further its
investment portfolio.
Investment activity over the period for both the Ordinary and the 'C' Shares
portfolios concentrated on providing further funds for growth in existing
investee companies, though a number of interesting new opportunities are under
review, some of which should complete this financial year. Overall, existing
investee companies performed encouragingly in a slightly tougher economic
climate, though partial provisions were made against two of our investments,
Automotive Technik and Q Garden Centres. Following the half year, we sold our
entire shareholding in Swetenhams Marketing Services, which has generated a
return for the fund over the last four years of approximately 10 per cent. per
annum.
The Company remains committed to generating a strong and predictable dividend
yield, where possible, and the interim dividend for the Ordinary Shares has been
maintained at last year's 1.8 pence per share, along with the inaugural interim
dividend for the 'C' Shares at 0.75 pence per share (or 0.375 pence for those
who invested after 31 December 2002).
Results and Dividend
As at 30 June 2003 the net asset value of the Ordinary Share portfolio was £11.4
million, (2002: £13.5 million), equivalent to 78.3 pence per share (2002: 92.0
pence) for the Ordinary Shares, while the 'C' Shares portfolio was £11.0 million
or 94.3 pence per share. Net income after taxation was £311,000 for the six
months, (2002: £339,000) enabling the board to declare a maintained net interim
dividend of 1.8 pence per ordinary share (2002: 1.8 pence per share). Net income
after taxation for the 'C' Share portfolio was £60,000, enabling an interim
dividend of 0.75 pence to be paid (or 0.375 pence for those shareholders who
subscribed after 31 December 2002). Dividends are payable on 31 October 2003 to
those shareholders registered on 10 October 2003.
The following is the total return of the Company since launch in January 1999.
Pence per Ordinary Pence per 'C'
Share Share
Dividends declared for the year to
31 December 1999 2.50 -
Dividends declared for the year to
31 December 2000 3.75 -
Dividends declared for the year to
31 December 2001 4.00 -
Dividends declared for the year to
31 December 2002 4.50 -
Interim dividend for the six months to
30 June 2003 1.80 0.75
16.55 0.75
Net asset value at 30 June 2003 78.30 94.30
Total return at 30 June 2003 94.85 95.05
R M Davidson
Chairman 26 September 2003
Portfolio Summary
Ordinary Share Portfolio
Company %
owned
and Unrealised
voting Invested appreciation/
rights to date (depreciation) Total
£'000 £'000 £'000
Automotive Technik Ltd
The company holds the exclusive world-wide
licence to manufacture the Pinzgauer
off-road vehicle. Automotive Technik's
main clients include the UK Ministry of
Defence and overseas armed forces. 9% 480 (72) 408
Careforce Staffing Ltd
Careforce Staffing was established in 1999
to build, both organically and through
acquisition, a group providing home care
services to the elderly, principally on behalf
of local authorities. Careforce currently
operates nine branches around the UK. 36% 1,740 676 2,416
City Screen (Liverpool) Limited
The Company was formed to own and
operate a three screen 'art house' cinema
in the centre of Liverpool, which opened
in February 2003. 4% 50 - 50
Consolidated Communications Management Ltd
Consolidated Communications is a
management buy-out of an established
public relations company, formed in 1991,
with a broad range of 'blue chip' clients 10% 1,000 72 1,072
Dolphin Nurseries Ltd
Dolphin aims at building a group of private
children's day nurseries in and around
Greater London. The Company currently
operates four nurseries at Upminster,
Chigwell, Bracknell, and Tooting, with a
fifth under development in
Kingston-upon-Thames. 20% 1,049 145 1,194
Leisure Links International Ltd
Leisure Links was formed to own and
operate golf courses with two courses
now acquired at Test Valley in Hampshire
and Chesfield Downs outside Stevenage. 26% 1,100 (290) 810
Odyssey Clubs Group Ltd
Odyssey owns a 30,000 sq.ft. health and
fitness club on an 11 acre site outside
Stevenage, a 20,000 sq.ft.club in Henley
and has a 50% stake in a company which
owns a 30,000 sq.ft. club on a 6 acre site
outside Beaconsfield in Buckinghamshire. 16% 1,700 (318) 1,382
Peakdale Molecular Limited
Peakdale Molecular is a Derbyshire based
contract chemistry company, developing
and providing pharmaceutical customers
with novel compounds for use in later
stage drug discovery. 8% 1,064 74 1,138
Swetenhams Marketing Services Ltd
Swetenhams provides data-related marketing
services to the direct marketing industry,
comprising list broking and
management services, hosting and market automation
systems. The company has now been sold. 16% 1,500 181 1,681
The Q Garden Company Limited
The company was formed to own and operate garden
centres, and now has three sites in Fareham,
Chinnor and Stow-on-the-Wold. 15% 500 (167) 333
Total Qualifying investments made at 30 June 2003 10,183 301 10,484
'C' Shares Portfolio
Careforce Staffing Ltd
Further financing 3% 260 - 260
Peakdale Molecular Limited
Further financing 3% 133 - 133
Total Qualifying investments made at
30 June 2003 393 - 393
Statement of Total Return
(incorporating the revenue account)
for the six months to 30 June 2003
Ordinary Shares
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2003 30 June 2002 31 December 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Losses on - (255) (255) - (232) (232) - (1,771) (1,771)
investments
Income 515 - 515 563 - 563 1,059 - 1,059
Investment
management fees (34) (102) (136) (40) (119) (159) (77) (231) (308)
Other expenses (45) (13) (58) (53) (15) (68) (113) (29) (142)
Return on ordinary
activities before
tax 436 (370) 66 470 (366) 104 869 (2,031) (1,162)
Tax on ordinary
activities (125) 30 (95) (131) 37 (94) (227) 68 (159)
Return
attributable
to equity
shareholders 311 (340) (29) 339 (329) 10 642 (1,963) (1,321)
Dividends (262) - (262) (264) - (264) (660) - (660)
Transfer to/
(from) reserves 49 (340) (291) 75 (329) (254) (18) (1,963) (1,981)
Return per share 2.1p (2.3)p (0.2)p 2.3 p (2.2)p 0.1p 4.4p (13.4)p (9.0)p
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 year.
Statement of Total Return
(incorporating the revenue account)
for the six months to 30 June 2003
'C' Shares
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2003 30 June 2002 31 December 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 2 2 - - - - - -
Income 128 - 128 - - - 4 - 4
Investment
management fees (33) (97) (130) - - - (3) (7) (10)
Other expenses (35) (12) (47) - - - (4) (1) (5)
Return on ordinary
activities before
tax 60 (107) (47) - - - (3) (8) (11)
Tax on ordinary
activities - 26 26 - - - - 2 2
Return attributable
to equity
shareholders 60 (81) (21) - - - (3) (6) (9)
Dividends (53) - (53) - - - - - -
Transfer to/(from)
reserves 7 (81) (74) - - - (3) (6) (9)
Return per share 0.8 p (1.1)p (0.3)p 0.0p 0.0p 0.0p (0.2)p (0.4)p (0.6)p
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 year.
Statement of Total Return
(incorporating the revenue account)
for the six months to 30 June 2003
Total
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2003 30 June 2002 31 December 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Losses on
investments - (253) (253) - (232) (232) - (1,771) (1,771)
Income 643 - 643 563 - 563 1,063 - 1,063
Investment
management fees (67) (199) (266) (40) (119) (159) (80) (238) (318)
Other expenses (80) (25) (105) (53) (15) (68) (117) (30) (147)
Return on ordinary
activities before
tax 496 (477) 19 470 (366) 104 866 (2,039) (1,173)
Tax on ordinary
activities (125) 56 (69) (131) 37 (94) (227) 70 (157)
Return
attributable
to equity
shareholders 371 (421) (50) 339 (329) 10 639 (1,969) (1,330)
Dividends (315) - (315) (264) - (264) (660) - (660)
Transfer to/(from)
reserves 56 (421) (365) 75 (329) (254) (21) (1,969) (1,990)
Balance Sheet
at 30 June 2003
Ordinary Shares
Unaudited Unaudited Audited
30 June 2003 30 June 2002 31 December 2002
£'000 £'000 £'000
Fixed asset investments
Qualifying 10,484 11,015 10,193
Non-qualifying - 1,493 1,499
Total fixed asset investments 10,484 12,508 11,692
Current assets
Debtors 347 174 48
Cash: short term money market
deposits 1,195 1,411 694
1,542 1,585 742
Creditors: due within one year (611) (595) (663)
Net current assets
931 990 79
Net assets 11,415 13,498 11,771
Represented by:
Called up share capital 7,287 7,333 7,333
Share premium 48 48 48
Special reserve 6,447 6,513 6,513
Capital redemption reserve 97 51 51
Capital reserve
realised (1,953) (684) (779)
unrealised (623) 81 (1,458)
Revenue reserve 112 156 63
Total equity shareholders' funds 11,415 13,498 11,771
Net asset value per share 78.3p 92.0p 80.3p
Balance Sheet
at 30 June 2003
'C' Shares
Unaudited Unaudited Audited
30 June 2003 30 June 2002 31 December 2002
£'000 £'000 £'000
Fixed asset investments
Qualifying 393 - -
Non-qualifying 6,000 - -
Total fixed asset investments 6,393 - -
Current assets
Debtors (71) - 862
Cash: Short term money market
deposits 4,915 - 1,487
4,844 - 2,349
Creditors: due within one year (188) - (29)
Net current assets 4,656 - 2,320
Net assets 11,049 - 2,320
Represented by:
Called up share capital 5,859 - 1,226
Share premium 5,273 1,103
Special reserve - - -
Capital redemption reserve - - -
Capital reserve
realised (89) - (6)
unrealised 2 - -
Revenue reserve 4 - (3)
Total equity shareholders' funds 11,049 - 2,320
Net asset value per share 94.3p - 94.6 p
Balance Sheet
at 30 June 2003
Total
Unaudited Unaudited Audited
30 June 2003 30 June 2002 31 December 2002
£'000 £'000 £'000
Fixed asset investments
Qualifying 10,877 11,015 10,193
Non-qualifying 6,000 1,493 1,499
Total fixed asset investments 16,877 12,508 11,692
Current assets
Debtors 276 174 910
Cash: Short term money
market deposits 6,110 1,411 2,181
6,386 1,585 3,091
Creditors: due within one year (799) (595) (692)
Net current assets 5,587 990 2,399
Net assets 22,464 13,498 14,091
Represented by:
Called up share capital 13,146 7,333 8,559
Share premium 5,321 48 1,151
Special reserve 6,447 6,513 6,513
Capital redemption reserve 97 51 51
Capital reserve
realised (2,042) (684) (785)
unrealised (621) 81 (1,458)
Revenue reserve 116 156 60
Total equity shareholders' funds 22,464 13,498 14,091
Cash flow Statement
for the six months to 30 June 2003
Ordinary Shares
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2003 30 June 2002 31 December 2002
£'000 £'000 £'000
Operating activities
Investment income received 228 362 713
Deposit interest received 28 11 25
Investment management fees paid (138) (91) (250)
Other cash payments (91) (65) (152)
Net cash inflow from operating activities 27 217 336
Taxation
UK corporation tax paid - 6 (108)
Capital expenditure and financial investments
Purchase of qualifying investments (564) (410) (1,269)
Purchase of non-qualifying investments - - -
Disposal of non-qualifying investments - - 300
Disposals of non-qualifying investments 1,500 1,500 1,500
Net cash inflow from investing activities 936 1,090 531
Equity dividends paid
Dividends paid on ordinary shares (396) (350) (614)
Net cash inflow before financing 567 963 145
Financing
Issue of equity net of expenses - - 101
Purchase of own shares (66) - -
Increase in cash 501 963 246
Cash flow Statement
for the six months to 30 June 2003
'C' Shares
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2003 30 June 2002 31 December 2002
£'000 £'000 £'000
Operating activities
Investment income received (5) - -
Deposit interest received 95 - 4
Investment management fees paid (10) - -
Other cash payments (3) - -
Net cash inflow from operating activities 77 - 4
Taxation
UK corporation tax paid - - -
Capital expenditure and financial investments
Purchase of qualifying investments (6,131) - -
Purchase of non-qualifying investments - - -
Disposals of non-qualifying investments - - -
Net cash outflow from investing activities (6,131) - -
Equity dividends paid
Dividends paid on ordinary shares - - -
Net cash outflow before financing (6,054) - 4
Financing
Issue of equity net of expenses 9,482 - 1,483
Purchase of own shares - - -
Increase in cash 3,428 - 1,487
Cash flow Statement
for the six months to 30 June 2003
Total
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2003 30 June 2002 31 December 2002
£'000 £'000 £'000
Operating activities
Investment income received 223 362 713
Deposit interest received 123 11 29
Investment management fees paid (148) (91) (250)
Other cash payments (94) (65) (152)
Net cash inflow from operating activities 104 217 340
Taxation
UK corporation tax paid - 6 (108)
Capital expenditure and financial investments
Purchase of qualifying investments (6,695) (410) (1,269)
Purchase of non-qualifying investments - - -
Disposals of qualifying investments - - 300
Disposals of non-qualifying investments 1,500 1,500 1,500
Net cash (outflow)/ inflow from investing (5,195) 1,090 531
activities
Equity dividends paid
Dividends paid on ordinary shares (396) (350) (614)
Net cash (outflow)/ inflow before financing (5,487) 963 149
Financing
Issue of equity net of expenses 9,482 - 1,584
Purchase of own shares (66) - -
Increase in cash 3,929 963 1,733
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 5 hours ago Coral Products
- 7 hours ago HSBC Holdings
- 7 hours ago Aptamer Group
- 8 hours ago Trifast
- 8 hours ago RWS Holdings