Interim Results

TriVest VCT PLC 30 May 2001 TriVest VCT Plc Chairman's Interim Statement I am very pleased to present my first Interim Report of the Company for the period from 2nd November 2000 to 31st March, 2001. Our Offer for Subscription opened on 18th October 2000 and as at 31st March 2001 had raised £32,905,800. The Offer closed on 6th April 2001 having raised a total of £41,801,516. Trading in our shares commenced on 15th November 2000. As anticipated, at this stage in its life, the Company's portfolio is comprised mainly of short-dated Gilt-edged securities, which are managed by Cazenove Fund Management Limited. Nevertheless, in the period under review, each of the three Venture Capital Fund Managers has been active in identifying suitable companies in which TriVest can participate as an investor. It is already apparent that the Multi-Manager approach to selecting venture capital situations is producing a well diversified investment portfolio. At 31st March, 2001, LICA Development Capital Limited had made five investments in i-documentsystems group plc (Electronic Document Management), LeSac Limited (Industrial Packaging), MAST Limited (Industrial Heavy Machine Tools), Watkins Books Limited (Retail and Publishing) and Zynergy Group Limited (Meditech) respectively. VCF Partners had made three investments in Heritage Image Partnership Limited (Image Library), iDesk plc (Technical Help Desks) and Xpert Client Systems Limited (Software Asset Management). GLE Development Capital Limited had invested in T.J Brent Limited (Water Utility). Full descriptions of each of these investments are provided later in my report. In all, £5,717,625 had been invested in venture capital companies by 31st March, 2001 with a further £705,000 now earmarked for another investment. As stated in our Prospectus, the Board anticipates having between 80 and 90 per cent of the net funds raised in the recent issue of shares invested in Qualifying Companies within three years, or by April 2004, at the latest. At 31st March, 2001 revenue reserves available for distribution to shareholders were £135,510. The Board does not propose to declare an interim dividend but expects to be able to propose a final dividend for the period to 30th September 2001. I am pleased that the Company has made such positive progress already and I look forward to keeping shareholders informed on developments in our Company. David Atterton, Chairman. 30th May, 2001. Investment Portfolio Summary Cost Date of investment GLE Development Capital Limited £ T J Brent Limited 900,000 December 2000 Specialist contractor to water utility sector ------- 900,000 ------- LICA Development Capital Limited i-documentsystems group plc 517,625 December 2000 Electronic Document Management LeSac Limited 999,999 February 2001 Manufactures plastic packaging for powder/granular products and liquids Machinery & Automated Systems 1,000,000 February 2001 Technology Limited (MAST) Development of Vertical Turning and Machining Centres Zynergy Group Limited 1,000,000 February 2001 Commercialising new materials for medical devices Watkins Books Limited 500,000 March 2001 Supplier of books in Alternative Sciences, Health, Philosophy and related sectors ----------- £4,017,624 ----------- VCF Partners iDesk plc 250,000 November 2000 Technical Help Desks Heritage Image Partnership Limited 300,000 March 2001 Internet Image Library Xpert Client Systems Limited 250,000 March 2001 Software Asset Management -------- £800,000 -------- Fixed Interest Securities £16,726,000 ----------- TOTAL £22,443,624 ----------- NOTE: All the above venture capital investments have been valued at cost except for i-documentsystems group plc which is listed on AIM and has been valued at £583,334 in line with the mid-market price as at 31st March 2001. Completed Investments as at 31st March 2001 GLE Development Capital Limited T J Brent T J Brent is a specialist contractor, primarily to the water utility sector, and is involved in the laying and refurbishment of pipes, mains connection of houses and installation and replacement of water meters. The company also has divisions engaged in the management of mechanical and electrical products and the construction of water pumping and sewage treatment plants. Based in Bodmin, the company has operations throughout the West Country and elsewhere in the UK. TriVest invested £900,000 alongside other institutional investors in December 2000 to finance the management buy-out of the company from its parent, Pennon Group plc. The investment has been valued at cost as it was completed less than a year ago and there have been no audited accounts available since investment. LICA Development Capital Limited i-documentsystems group plc i-documentsystems group plc is an established and fast growing software company which specialises in the development of products for document, content and information management. The Group's principal product is Image-gen a sophisticated web-based software package which allows a complex paper- based process to be converted into a straightforward and robust electronic process leading to significant savings in cost and time. TriVest invested £517,625 in December 2000. The company is now listed on AiM, and at 29th May 2001 (the latest practicable date prior to the publication of this announcement), the value of TriVest's investment was £562,500. LeSac Limited LeSac is commercialising a unique packaging system that offers significant advantages over existing solutions through a combination of lower material content, increased space utilisation and lower environmental tax levies. During 1999 and early 2000, LeSac was restricted to the 10 litre liquid/solid product while the third generation machine was under development, so major potential customers' needs could not be satisfied during this development phase. The third generation machine, however, has now been fully developed. The pre-production machine has also been fully commissioned and now gives LeSac capacity to receive major orders. There are presently a number of large enquiries including Cerol, Brookleman, Dow Chemicals and Rau, any of which would be a significant step for LeSac. TriVest made an investment of £1,000,000 in February 2001. Machinery & Automated Systems Technology Limited (MAST) MAST is engaged in developing and manufacturing specialist machine tools, including a Vertical Turning & Machining Centre and LeSac's third generation packaging machinery. These machines are now moving from design/launch and pre- production prototypes, respectively, into full production in the current year. The first two orders for LeSac machines have been received and are currently being built. TriVest made an investment of £1,000,000 in February 2001. Zynergy Group Limited Zynergy Group is a rapidly developing global bio-meditech organisation exploiting its fully-developed materials, coatings and other similar technologies. These revolutionary technologies enable and enhance Zynergy's existing proprietary products in high-value sectors, namely minimally- invasive cardiology, balloons, stents and orthopaedics as well as other critical areas, with respiratory and urology products to follow. Its US subsidiary, ZCV Inc has obtained FDA and CE Mark approval for the majority of its first generation of electro- physiological catheters. Sales have now commenced and are starting to grow. Progress on a conformal catheter continues and it is the intention to seek FDA approval in 2001. Sales in the orthopaedics division continue to grow and are running at an annual rate in excess of £1.0million. TriVest made an investment of £1,000,000 in February 2001. Watkins Books Limited Watkins is the pre-eminent UK supplier of books and information in the Alternative Sciences, Health, Philosophy and related sectors. Watkins is doubling its retail space in Cecil Court in Central London. It will launch its first publishing list in the spring of 2001 and is developing a global Internet strategy and website. It has expansion plans to become the pre-eminent global provider in this growing sector. During the first year under new ownership, the existing and new management have done much necessary work to reposition the company for expansion. TriVest made an investment of £500,000 in March 2001. VCF Partners iDesk plc In November 2000, the Company invested £250,000 in iDesk plc. iDesk provides telcos, ISPs and other blue chip customers with outsourced technical help desks, operated from a call centre in London. iDesk has recently launched complementary new ASP services based on its proprietary and licensed CRM and electronic billing software. Heritage Image Partnership Limited In March 2001, TriVest invested £300,000 in Heritage Image Partnership Limited (HIP). HIP is creating a library of images available to customers over the Internet and has exclusive access to content from five heritage institutions including the British Library and the Science Museum. The images will be sold to media companies and advertising and design companies. Xpert Client Systems Limited In March 2001, TriVest invested £250,000 in Xpert Client Systems Limited (XCS), a provider of Software Asset Management tools, with over 100 customers. XCS has developed software that automatically builds a profile of software usage on a PC and compares this with the inventory of software installed on each PC and the licenses owned. As a result, savings are achievable on licence costs by removing unused software, administration costs and IT support time. Unaudited Statement of Total Return (incorporating the Revenue Account of the Company from 2nd November 2000 to 31st March 2001) Notes Period to 31st March 2001 (unaudited) Revenue Capital Total £ £ £ Realised gains and - - - losses on investments Unrealised gains and - 63,709 63,709 losses on investments Income 374,689 - 374,689 Investment management 3 (56,396) (169,187)(225,583) fees Other expenses (134,303) - (134,303) ------- -------- ------- Return on ordinary 183,990 (105,478)78,512 activities before taxation Tax on ordinary activities (48,480) 33,837 (14,643) activities ------- -------- ------- Return attributable to 135,510 (71,641) 63,869 equity shareholders Dividends in respect of - - - equity shares ------- -------- -------- Transfer to/(from) reserves £135,510 £(71,641) £63,869 reserves ------- -------- -------- Return per share 5 0.645p (0.341p) 0.304p Unaudited Balance Sheet as at 31st March 2001 Notes 31st March 2001 (unaudited) £ £ Fixed Assets Investments 7 22,507,333 ---------- 22,507,333 Current Assets Debtors and prepayments 442,813 Cash at Bank 12,962,032 ----------- 13,404,845 Creditors: amounts falling (4,697,503) due within one year ----------- Net current assets 8,707,342 ---------- Net assets £31,214,675 ----------- Capital and reserves 8 Called up share capital 329,058 Share premium account 30,821,748 Capital reserves - realised (135,350) Capital reserves - unrealised 63,709 Revenue reserves 135,510 ---------- Equity shareholders' funds £31,214,675 ---------- Net asset value per share 94.8p Summarised Cash flow Statement Period to 31st March 2001 £ Operating activities Net revenue on activities before taxation 183,990 Capitalised management fees (169,187) Decrease/(Increase) in creditors (442,813) Increase in creditors 4,682,860 ------------ Net cash inflow/(outflow) from operating 4,254,850 activities Acquisitions and disposals (22,443,624) Financing - issue of shares 31,150,806 ------------ Increase in cash for period £12,962,032 ------------ Reconciliation of net cash flow to movement in net debt Increase in cash for the period 12,962,032 Net funds at the start of the period - ------------ Net funds at the end of the period £12,962,032 ------------ Notes 1. The revenue column of the statement of total return is the profit and loss account of the Company. 2. All revenue and capital items in the above statement of total return derive from continuing operations. 3. In accordance with the policy statement published under 'Management Administration' in the Company's prospectus dated 13th October 2000, the Directors have charged 75% of the investment management expenses to capital reserve. 4. Earnings for the period to 31st March 2001 should not be taken as a guide to the results for the full year. 5. Basic return per Ordinary Share is based on the net revenue on ordinary activities after taxation and is based on a weighted average of 21,000,380 Ordinary Shares. 6. The financial information for the period to 31st March 2001 has not been audited, nor does it comprise full financial statements within the meaning of section 240 of the Companies Act 1985. 7. Summary of investments during the period. Fixed Traded Unlisted Loan Total interest on AIM or Stock securities traded on OFEX £ £ £ £ £ Cost/valuation - - - - - at 2nd November 2000 Purchases at 16,726,000 517,625 1,998,991 3,201,009 22,443,624 cost Sales - proceeds - - - - - - realised - - - - - gains / (losses) Increase/decrease (2,000) 65,709 - - 63,709 in unrealised gains / (losses) --------- ------ ------- ----------- ----------- Cost/valuation £16,724,000 £583,334 £1,998,991 £3,201,008 £22,507,333 at 31st March 2001 --------- ------ ------- ----------- ----------- Book cost at 16,726,000 517,625 1,998,991 3,201,008 22,443,624 31st March 2001 Unrealised gains (2,000) 65,709 - - 63,709 / (losses) at 31st March 2001 ---------- -------- ---------- ---------- ----------- £16,724,000 £583,334 £1,998,991 £3,201,008 £22,507,333 ---------- -------- ---------- --------- ----------- Gains on investments Net movement in £(2,000) £65,709 - - £63,709 unrealised appreciation / (depreciation) in the period --------- ------- ------- ------- -------- Gains / (losses) £(2,000) £65,709 - - £63,709 on investments at 31st March 2001 --------- ------- ------- ------- -------- 8. Capital and reserves Called Share Realised Unrea- Revenue Total up premium capital lised reserve share account reserve capital capital reserve At 2nd - - - - - - November 2000 Net proceeds 329,058 30,821,748 - - - 31,150,806 from issue of shares Realised - - - - - - losses for period Transfer on - - - - - - disposal of investment Net capital - - (135,350) - - (135,350) for period Increase in - - - 63,709 - 63,709 unrealised appreciation on investments Retained net - - - - 135,510 135,510 revenue for period -------- ----------- ---------- ------- -------- ----------- At 31st March £329,058 £30,821,748 £(135,350) £63,709 £135,510 £31,214,675 2001 -------- ----------- ---------- ------- -------- ----------- 9. The interim statement will be posted to shareholders in due course and will be available to members of the public at the Company's registered office: Gossard House, 7-8 Savile Row, London W1S 3PE.

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