Interim Results
Keydata AIM VCT PLC
19 May 2005
KEYDATA AIM VCT plc
Unaudited Interim Results for the period ending 31 March 2005
Chairman's Statement
Introduction
This is my first statement as Chairman of Keydata AIM VCT which covers the
period from date of incorporation on 16 August 2004 to 31 March 2005. I would
like to welcome you as a shareholder and thank you for your support in the
launch of the VCT.
The Offer for Subscription closed on 30 April 2005 with gross funds raised of
around £14.3 million from 863 investors. The costs of the launch were set at 5
per cent of the gross funds raised and the net proceeds retained by the company
will be £13.6 million with an initial asset value per share of 95p. The net
assets stated in the balance sheet reflect allotment proceeds received as at 31
March 2005.
Results and Investments
The Investment Manager, Hargreave Hale, invested £2.16 million in nine
qualifying AIM companies during the period. The bid value of these investments
at 31 March 2005 was £2.63 million, representing a 21% uplift. Investments were
made in Accuma, Ant, Ascribe, Egdon Resources, FDM, Hardide, Sarantel, XN
Checkout and Zenith Hygiene.
This increase in the value of investments led to a capital return of 5.93p per
share over the period, which, after deducting the revenue losses of 0.37p per
share, resulted in a total return of 5.56p per share. The net asset value per
share at 31 March 2005 was 99.67p, although this decreased to 96.55p based on
valuations of investments at 30 April 2005 and the total number of shares issued
under the offer for subscription (14,337,731).
We are pleased with progress at this early stage but clearly we are focussed on
delivering long term returns.
The directors do not propose to recommend an interim dividend for the period.
When the portfolio is more fully established and as capital profits are
realised, the Directors intend to adopt a policy of distributing substantially
all of the available income and capital gains.
Outlook
New and secondary issues on AIM have increased strongly in number this year. The
quality of such issues has however been variable and the Investment Manager has
been selective in making new investments.
Our focus is to invest in new listings or secondary top ups of AIM companies.
While we could invest in OFEX and pre-IPO companies, we will not generally do so
due to the lack of liquidity in these companies.
Shareholder Communication
I look forward to reporting further progress in the Annual Report and Accounts
that will be sent to you in December 2005.
The Company's daily share price can be found on various financial websites under
the EPIC code 'KEY' or on our own dedicated website at www.keydataaimvct.co.uk
Sir Aubrey Brocklebank Bt
Chairman
19 May 2005
Statement of total return (incorporating the revenue account) for the period
ending 31 March 2005
For the period
16 August 2004
to 31 March
2005
(unaudited)
Revenue Capital Total
£000 £000 £000
Gains on
investments - 468 468
Investment income 66 - 66
-------- -------- --------
66 468 534
Management fees (16) (47) (63)
Other expenses (77) - (77)
-------- -------- --------
(93) (47) (140)
-------- -------- --------
Return on
ordinary
activities before
taxation (27) 421 394
Tax on ordinary activities - - -
-------- -------- --------
Return for the
period
attributable to
equity
shareholders (27) 421 394
-------- -------- --------
Return per share
(Note 2) (0.37)p 5.93p 5.56p
The revenue column of this statement is 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
Balance sheet as at 31 March 2005
As at 31 March
2005
(unaudited)
£000
Fixed assets
Investments 2,630
Current assets
Prepayments and accrued income 2
Cash 5,842
--------
5,844
Creditors: amounts falling due within one year
Accruals and deferred income (65)
--------
Net current assets 5,779
--------
Net assets 8,409
--------
Capital and Reserves
Called up share capital 84
Share premium 7,931
Capital reserve - realised (47)
Capital reserve - unrealised 468
Revenue reserve (27)
--------
Equity shareholders' funds 8,409
--------
Net asset value per share (Note 4) 99.67p
Cash flow statement for the period ending 31 March 2005
For the period
16 August 2004
to 31 March
2005
(unaudited)
£000
Net return on ordinary
activities before taxation (27)
Investment management fee
charged to capital (47)
Increase in debtors (2)
Increase in creditors 65
--------
Net cash outflow from
operating activities (11)
Financial investment
Purchase of investments (2,162)
Financing
Net proceeds from issue of
ordinary share capital 8,015
--------
Increase in cash 5,842
--------
Reconciliation of movement in shareholders' funds
For the period
16 August 2004
to 31 March
2005
(unaudited)
£000
Revenue return for period (27)
Capital return for the period 421
--------
394
Issue of ordinary shares 8,015
--------
Closing shareholders' funds 8,409
--------
Notes to the interim report
1 The accounts of the company are prepared in accordance with Accounting
Standards applicable in the United Kingdom. The accounting policies used in
preparing this report are consistent with those which will be adopted at the
year end. All AIM investments are valued on a bid price basis.
2 The total return per share of 5.56 pence is based on the profit after tax
for the period of £394,000 and the weighted average number of shares in
issue over the period to 31 March 2005 of 7,095,932.
3 The results should not be taken as a guide to the results for the period
ending 30September2005.
4 The net asset value per ordinary share is based on net assets of £8,409,000
and on 8,436,978 shares, being the number of shares in issue as at 31 March
2005.
5 The financial information contained in the 31 March 2005 statement of total
return, balance sheet and cash flow statement does not constitute full
financial statements and has not been audited.
Investment portfolio summary as at 31 March 2005
Qualifying investments Book cost Valuation % of net assets
£000 £000 %
Accuma Group PLC 270 372 4.4
Ant PLC 75 109 1.3
Ascribe PLC 250 333 3.9
Egdon Resources PLC 249 224 2.6
FDM Group PLC 250 250 2.9
Hardide PLC 200 200 2.4
Sarantel Group PLC 343 431 5.1
XN Checkout Holdings PLC 244 365 4.3
Zenith Hygiene Group PLC 281 346 4.1
-------- -------- --------
Total qualifying investments 2,162 2,630 31.0
Non-qualifying investments
Cash 5,842 5,842 69.0
-------- -------- --------
Total investments 8,004 8,472 100
-------- -------- --------
New Investments
Accuma Group PLC
Accuma advises on debt solutions, in particular, Individual Voluntary
Arrangements, a highly attractive solution for indebted consumers and their
creditors alike. This is a fragmented but rapidly growing market and Accuma
wishes to scale up now to accelerate its market share from its current level of
6%. Personal indebtedness in the UK has breached £1,000 billion and is rising by
£1 million every four minutes. The slowdown in the housing market is limiting
debt consolidation through equity withdrawal. Over-indebted consumers will need
to find alternative remedies. Unlike many debt solutions, an Accuma IVA is free
to the debtor, runs for a finite period, is legally binding and affords the
creditor above average recovery rates.
Ant PLC
Ant is a specialist provider of embedded browser software specific to IPTV
(internet protocol TV) set top boxes. The software works behind the scene as the
interface between the user and the internet, positioning the image on the screen
and controlling and interpreting the interaction between the user and system. It
also allows customisation of user interfaces such as the Electronic Programme
Guide. Ant is currently the clear market leader and estimate that over 70% of
IPTV set top boxes contains their software with the expectation of further
growth. Presently, all the companies with major influence in this chain are
recommending Ant's browser. The imminent arrival of respectable broadband
connection speeds (2 megabytes per second) will allow a significant ramping up
of the rollout of IPTV.
Ascribe PLC
The health IT group focuses on medicine management through the development and
marketing of software solutions supporting patient, clinical and business
processes to the international healthcare market. Ascribe had a vision to
provide a centralised database of prescriptions available to all healthcare
professionals. The company now has over 300 customer sites worldwide, including
installations throughout the UK, Australia, New Zealand, Hong Kong and Malaysia.
Egdon Resources PLC
An independent UK-based oil and gas exploration company founded in 1997 with a
diverse portfolio of 19 exploration licenses containing a significant number of
oil and gas prospects. Their strategy is to become a significant and profitable
oil and gas producer through an active and focussed exploration and appraisal
programme, asset and/or company acquisitions, and proactive management of the
company's oil and gas assets.
FDM Group PLC
FDM is an IT services company that provides IT solutions in three areas: the
placement of IT professionals into contract positions of employment in the UK,
mainland Europe and North America; the development, support and implementation
of IT projects on behalf of corporate clients; and the production and delivery
of tailored trainingsolutions for a range of vertical business sectors. It
maintains a growing team of employees, trained in-house with the specialist IT
skills in most demand from its clients. They will focus on revenue and margin
growth by investing in higher margin activities.
Hardide PLC
Hardide was incorporated in August 2000 to develop and commercialise Hardide
technology jointly developed by the University of Moscow and the Russian Academy
of Science Institute of Physical Chemistry. Hardide is a patented surface
coating technology which combines ultra-hardness, low friction and chemical
resistance for use with steel, hard alloys and other materials. When applied via
chemical vapour deposition to customer components, the tungsten carbide coating
typically extends the component's useful life. The company moved to Oxfordshire
in 2003 where it has 3 coating machines in a 12,500 sq ft facility.
Sarantel Group PLC
Sarantel designs, manufactures and sells patented ceramic filtering antennae
which offer significant performance advantages for users and manufacturers. The
simple design allows design standardisation, lower costs and reduced time to
market. Their size, high efficiency, low emissions and superior field of view
make them ideal for mobile devices such as GPS. Other applications include
Wi-Fi, 3G, Bluetooth platforms and, most significantly, satellite radio.
Sarantel's antennae are already playing a leading role in enabling the
integration of GPS in mass-market mobile devices and PDAs and have significantly
increased the range and effective bandwidth of Wi-Fi devices.
XN Checkout Holdings PLC
XN Checkout is a leading supplier of IT hardware, software and services to the
bar, restaurant and leisure sectors. Formerly Checkout Computer Systems Limited,
XN Checkout is the market leader in the provision of EPOS (electronic point of
sale) systems and software to the UK managed house pub sector. It has more than
40,000 installed POS touch screens worldwide (35,000 in the UK) at more than
4,000 sites, mainly pubs, nightclubs, hotels and restaurants. The company has
become increasingly interested in electronic gaming platforms and recently made
3 acquisitions to further that revenue stream.
Zenith Hygiene Group PLC
Zenith Hygiene is one of the UK's leading contenders in the manufacture, supply
and provision of superior cleaning products for industrial and commercial
purposes. Their acquisition of SB Chemicals in October 2004 was a major boost to
the company allowing it for the first time to manufacture its own chemical
products. Zenith Hygiene has a strong client base that includes: The Dorchester,
The Ivy, ASK, Pizza Express, Holmes Place, Cafe Rouge, the Houses of Parliament
and Cambridge University.
This information is provided by RNS
The company news service from the London Stock Exchange