INTERNATIONAL BIOTECHNOLOGY TRUST PLC (the "Company")
Half Yearly Report for the six months ended 29 February 2012
This announcement contains regulated information.
Chairman's Statement
Performance Summary |
|||
|
6m |
1yr |
3yr |
IBT NAV (£) |
25.5% |
23.2% |
48.9% |
Quoted |
32.5% |
33.2% |
91.9% |
Unquoted |
1.8% |
(6.2)% |
(26.3)% |
|
|
|
|
NBI (£) |
26.1% |
28.5% |
71.7% |
S&P500 (£) |
14.4% |
5.1% |
67.1% |
FTSE All-Share (£) |
8.7% |
(2.0)% |
57.7% |
Summary
I am very pleased to be able to report to you a strong positive return for shareholders over the half year to 29 February 2012. After taking account of a 25.5% increase in the Net Asset Value ("NAV") per share and a small narrowing of the discount from 12.7% to 11.0%, the Company's share price increased 28.0% to 183.0p per share, the highest level since August 2001, and above the adjusted price of the conversion C-share issue of February 2007.
The quoted portfolio, representing 76.5% of NAV at the end of the period, continues to be the main contributor to performance while the unquoted portfolio of early-stage investments matures. The quoted portfolio return of 32.5% during the period was ahead of the NBI (£). The unquoted portfolio, representing 16.1% of NAV at the end of the period, returned 1.8% during the interim period, reflecting the net result of a number of incremental valuation adjustments to the Company's venture-stage investments.
It is pleasing to see the Company's quoted portfolio performing well. A relatively concentrated portfolio, plus the volatility in the share prices of the Company's investments can exaggerate under and out-performance over the short-term. However, good stock selection should deliver superior returns over the long-term, and I believe a strong long-term performance record for the quoted portfolio is beginning to build nicely.
The Investment Manager's ability to identify high quality companies of strategic value within the healthcare industry continues, with three of the Company's investments acquired during the period - Caliper Life Sciences, Pharmasset and Micromet - and a fourth, Illumina, subject to an ongoing hostile takeover attempt. These, added to a further four (ProStrakan, Genzyme, Cadent and Axis Shield) since 28 February 2011, bring the total number of investments subject to merger and acquisition ("M&A") activity over the past twelve months to eight.
The Investment Manager believes that a high level of M&A activity will continue for the foreseeable future and that this trend will continue to be a key driver of portfolio returns for investors in the healthcare sector - particularly for the Company's unquoted venture investments. The Investment Manager believes these should begin to deliver attractive returns in the coming years. The Board of Directors are confident that the companies we have invested in are making good progress.
Further information on the unquoted portfolio is within the Investment Manager's Review.
Borrowing Facility
The Company has an overdraft facility in place with HSBC Bank plc for the amount of £15.0m. This facility provides the Company with funds to take advantage of investment opportunities that occur from time to time - whether quoted or unquoted - on occasions when the portfolio is otherwise fully invested.
While at 31 August 2011, £8.0m of the overdraft facility was drawn down, by the end of the half year on 29 February 2012, these borrowings had been fully repaid, and the Company held a positive cash balance (cash, money market instruments, in addition to current net assets and liabilities) of £8.4m.
It continues to be the intention of the Board that borrowings are made on a relatively short-term basis to exploit specific investment opportunities, rather than to apply long-term structural gearing to the Company's portfolio of investments.
Share Buybacks
Over the course of the last six months, the Company repurchased a total of 550,000 Ordinary shares into treasury at a total cost of £848,750 (excluding stamp duty) and at an average discount of 13.0%, resulting in an enhancement to the NAV per share of approximately 0.2p. At 29 February 2012, the Company held 3,850,000 Ordinary shares in treasury. It is the intention of the Board to continue its policy of buying back shares whether for cancellation or into treasury, to help provide liquidity in the Company's shares, to assist in reducing the volatility of the discount and to enhance the NAV.
Board
As previously announced I will be retiring from the Board today. I am delighted that the Board has appointed Alan Clifton to succeed me as Chairman and I wish him great success in his new role. Having already served on the Company's Board since 21 February 2001, Alan brings to the Chairman's role a wealth of fund management and investment companies experience.
I would like to extend the same very best wishes to all my fellow Directors and the excellent team who manage the Company and thank shareholders for their support over the last eleven years.
Prospects
Over the years I have seen the Company grow and develop into what I believe is an effective vehicle for investing in medical innovation. As an industry, the global biotechnology and medical technology sector appears to be going from strength to strength, increasingly delivering more "personalised" medicine as first promised with the sequencing of the human genome just over a decade ago. With ageing populations within developed economies and growing populations within emerging market economies, the need and demand for innovative new drugs, diagnostics and medical devices to prevent and treat modern complex diseases has never been higher.
While large pharmaceutical companies are struggling to generate returns from internal research and development ("R&D") investment, smaller more nimble biotechnology companies are demonstrating higher success in providing the medical innovation required. This is reflected in the continued high level of M&A and deal-making activity between large and small companies in the industry. The NASDAQ biotechnology Index has outperformed the broader market (S&P500) over the past three years (a Sterling-adjusted gain of 71.7% against 67.1%) highlighting the value being created in the industry.
Investment trusts are one of the few investment vehicles that are suitable for risk diversified investment in the less liquid shares of companies developing early stage technologies. With a relatively stable pool of capital, the Company's Investment Manager is able to both exploit short-term pricing inefficiencies in the shares of early-stage companies traded in the public markets, and also support highly promising venture-stage technologies through the inevitable ups and downs of early stage technological development. The Board will consider carefully the implications for your Company and its shareholders of the changes to the recent taxation of Investment Companies.
In recent years exits from unquoted companies have come primarily from public company acquisition rather than Initial Public Offerings. Therefore in order to get exposure to these acquisitions it is necessary to have investments in unquoted companies.
While returns from the Company's unquoted portfolio of venture-stage investments have been muted in recent years, I would remind investors that investing in emerging medical technologies is a relatively long-term undertaking. The Company's portfolio of these venture-stage investments is beginning to mature and we expect strong returns from the unquoted portfolio in the coming years. We believe the Company has in its Investment Manager, SV Life Sciences, one of the strongest specialist global life sciences investors, with a track record of generating consistently strong returns from backing early-stage technologies.
Andrew Barker
Chairman
13 April 2012
Investment Manager's Review
Portfolio Summary
|
NAV 29 Feb 12 |
NAV 29 Feb 12 |
NAV 31 Aug 11 |
IBT NAV (£) |
£114.0m |
100.0% |
100.0% |
Quoted |
£87.2m |
76.5% |
85.5% |
Unquoted |
£18.4m |
16.1% |
18.9% |
Other |
£8.4m |
7.4% |
(4.4)% |
Overview
The six-months ended 29 February 2012 saw the Company's NAV per share increase by 25.5%. In comparison, the NASDAQ Biotechnology Index ("NBI") increased by 26.1%, while the S&P500 and FTSE All-Share indices increased by 14.4% and 8.7%, respectively. All Figures are Sterling-adjusted.
Within the portfolio, the quoted portfolio (76.5% of NAV at period-end) returned 32.5% and the unquoted portfolio (16.1% of NAV at period-end) returned 1.8%. Cash, money market instruments and other net assets were 7.4% of NAV at the end of the period.
By subsector, 60.0% of NAV was invested in the biotechnology sector, 10.8% in the medical device sector, 11.2% in the specialty pharmaceuticals sector, and 10.6% in the life sciences tools and diagnostics sector, emphasising the diversified nature of the Company's investments.
Members of the Investment Manager's team sat on the Boards of 20 portfolio companies (18 unquoted and two quoted) at the end of the period, a reduction of two from 31 August 2011. An active Board seat on private companies remains an important aspect of the Investment Manager's investing activities in early-stage unquoted biotechnology companies.
Quoted Portfolio
During the period under review, the combined effect of gains and losses on quoted investments, including currency movements, was to increase the NAV by £24.4m or 43.9p per share. The time-weighted return for the quoted portfolio over the period was 32.5%.
At 29 February 2012, the Company held investments in 42 quoted companies, representing 76.5% of NAV at £87.2m, as compared to 40 quoted companies, representing 85.5% of NAV at £78.5m at the start of the period.
Unquoted Portfolio
During the period under review, the combined effect of gains and losses on unquoted investments, including currency movements, was to increase the NAV by £0.7m or 1.2p per share. The time-weighted return for the unquoted portfolio over the period was 1.8%.
At 29 February 2012, the Company held investments in 25 unquoted companies, representing 16.1% of NAV at £18.4m, as compared to 26 unquoted companies, representing 18.9% of NAV at £17.4m at the start of the period.
Where unquoted stocks became quoted stocks they are transferred within the Company's portfolio at their valuation on the date of becoming listed.
At the half year-end, 0.8% of NAV was legally committed to further investments in unquoted companies, while 6.7% was investment-committee approved or reserved for further investment in unquoted companies.
Investment Highlights
Broader equity markets performed strongly during the period under review. Against this backdrop, the biotechnology sector performed particularly strongly, driven by an unusually high level of M&A activity and positive clinical and regulatory newsflow updates on a number of major new biotechnology products. The Company's quoted portfolio in turn outperformed the NBI during the period.
Within the quoted portfolio, highlights during the period were life science tools company Caliper acquisition by PerkinElmer for $600m; Australian biotechnology Pharmaxis receiving a positive approval recommendation from the European regulators for its cystic Fibrosis drug Bronchitol; the culmination of the Axis Shield £235m hostile takeover by Alere; the acquisition of Pharmasset by Gilead for $11.0bn (one of the largest ever development-stage biotechnology M&A transactions); Medivation announcing very positive clinical data on its new prostate cancer drug MDV3100; Incyte receiving FDA approval for its new myelofibrosis drug Jakafi; Roche's hostile $5.7bn bid for DNA sequencing company Illumina; and the acquisition of the Company's largest portfolio investment, Micromet, by Amgen for $1.2bn.
Within the unquoted portfolio, specialty pharmaceutical company EUSA received FDA approval for its childhood leukaemia drug, Erwinaze, after which the company announced that it was reviewing its strategic options, including potentially a trade sale to a larger pharmaceutical company. Elsewhere within the portfolio, there were a number of incremental valuation adjustments (up and down). One new investment was made and four follow-on investments made for a total of £1.0m invested in unquoted venture investments during the period.
Best Performing Investments |
|||
|
|
|
% increase in |
|
|
Increase |
six months to |
|
|
in NAV |
29 February |
|
|
£'000 |
2012 |
1 |
Micromet |
4,176 |
135.2 |
2 |
Pharmasset |
2,270 |
57.3 |
3 |
Medivation |
1,546 |
146.1 |
4 |
Affymax |
1,431 |
125.5 |
5 |
Alexion |
1,143 |
49.5 |
Worst Performing Investments |
|||
|
|
|
% decrease in |
|
|
Decrease |
six months to |
|
|
in NAV |
29 February |
|
|
£'000 |
2012 |
1 |
Vertex |
(313) |
(13.1) |
2 |
Actelion |
(278) |
(9.4) |
3 |
Momenta |
(273) |
(19.5) |
4 |
Amarin |
(232) |
(13.6) |
5 |
Reshape |
(205) |
(22.3) |
Outlook
We believe the recent performance of the global biotechnology sector reflects its two key attractions to investors: predictable and stable above-market earnings growth and cash flow generation for the profitable companies during uncertain economic times; and an intense focus on research and development ("R&D") that is delivering a wave of highly innovative and valuable new drugs and medical technologies that are changing medicine.
Biotechnology has come of age and is now at the heart of the pharmaceutical industry's efforts to develop new medicines. A decade on from the sequencing of the human genome, there are now biotechnology companies generating tens of billions of dollars in drug sales annually, with a host of sophisticated new drugs being launched with long patent lives. There has never been a better time to invest in medical innovation - the fruits of which are a wave of new therapies addressing the major health challenges of modern times.
As some larger companies in the healthcare industry continue to rationalise internal R&D functions under economic pressure, they are now reliant on smaller biotech firms for innovation. As a result, M&A activity within the industry is at record levels. The acquisition of our largest portfolio investment Micromet - originally a venture-stage investment for the Company - by Amgen is the latest example of larger companies outsourcing their innovation, and follows six acquisitions within our portfolio over the past twelve months (with an eighth situation - Roche's hostile bid for Illumina - still ongoing).
The Company's quoted portfolio holds investments in the larger profitable biotech companies as they currently offer attractive earnings growth at low valuations by comparison with both absolute historical and relative current levels. However, the focus for new investment remains on companies making the transition to sustainable growth and profitability through the launch of paradigm-changing new drug or device products, as well as on smaller development-stage companies with under-appreciated assets.
While the Company's quoted portfolio gives shareholders exposure to an industry sector that is outperforming the broader equity market over the long-term, the unquoted venture portfolio continues to mature. The Company's venture portfolio has been built up since the C Share issue in February 2007. Five years on, the Investment Manager expects exits from the unquoted portfolio to drive NAV returns and shareholder value in the near and mid-term.
SV Life Sciences Managers LLP
Investment Manager
13 April 2012
Principal Risks and Uncertainties
The Company's principal risks and uncertainties are detailed in the Annual Report for the year ended 31 August 2011. A detailed explanation can be found on pages 19 to 20 of the Annual Report which is available on the Company's website at www.ibtplc.com.
In the view of the Board, there have not been any changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.
Directors' Responsibility Statement
In respect of the Half Yearly Report for the six months ended 29 February 2012, we confirm that, to the best of our knowledge:
- the condensed set of Financial Statements contained within have been prepared in accordance with IAS 34 "Interim Financial Reporting"; and
- the Chairman's Statement and Investment Manager's Review include a fair review of the information required by 4.2.7R and 4.2.8R of the Financial Services Authority's Disclosure and Transparency Rules.
The Half Yearly Report for the six months ended 29 February 2012 was approved by the Board and the above Responsibility Statement has been signed on its behalf by:
Andrew Barker
Chairman
13 April 2012
Group Statement of Comprehensive Income
for the six months ended 29 February 2012
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
||||||
|
|
For the six months ended 29 February 2012 |
For the six months ended 28 February 2011 |
For the year ended 31 August 2011 |
||||||
|
|
Group |
Group |
Group |
Group |
Group |
Group |
Group |
Group |
Group |
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
Gains on investments held at fair value |
|
- |
25,021 |
25,021 |
- |
8,544 |
8,544 |
- |
7,179 |
7,179 |
Losses on current asset investments |
|
(45) |
- |
(45) |
- |
- |
- |
- |
- |
- |
Exchange losses on currency balances |
|
- |
(225) |
(225) |
- |
(76) |
(76) |
- |
(101) |
(101) |
Income |
2 |
112 |
- |
112 |
38 |
- |
38 |
196 |
- |
196 |
Expenses |
|
|
|
|
|
|
|
|
|
|
Management fees |
3 |
(567) |
- |
(567) |
(662) |
- |
(662) |
(1,351) |
- |
(1,351) |
Performance fee |
|
- |
(767) |
(767) |
- |
(684) |
(684) |
- |
(486) |
(486) |
Administrative expenses
|
|
(392) --------- |
- --------- |
(392) -------- |
(417) --------- |
- -------- |
(417) -------- |
(830) -------- |
- --------- |
(830) -------- |
(Loss)/profit before finance costs and tax |
|
(892) |
24,029 |
23,137 |
(1,041) |
7,784 |
6,743 |
(1,985) |
6,592 |
4,607 |
Finance costs |
|
|
|
|
|
|
|
|
|
|
Interest payable |
3
|
(19) --------- |
- --------- |
(19) -------- |
(7) --------- |
- -------- |
(7) -------- |
(23) -------- |
- --------- |
(23) -------- |
(Loss)/profit on ordinary activities before tax |
|
(911) |
24,029 |
23,118 |
(1,048) |
7,784 |
6,736 |
(2,008) |
6,592 |
4,584 |
Taxation expense |
|
(18) ===== |
- ===== |
(18) ===== |
(4) ====== |
- ===== |
(4) ===== |
(14) ====== |
- ===== |
(14) ===== |
(Loss)/profit for the period and total comprehensive income
|
|
(929) ===== |
24,029 ===== |
23,100 ===== |
(1,052) ====== |
7,784 ===== |
6,732 ===== |
(2,022) ====== |
6,592 ===== |
4,570 ===== |
Earnings per Ordinary share
|
4
|
(1.67)p ===== |
43.18p ===== |
41.51p ===== |
(1.76)p ====== |
13.01p ===== |
11.25p ===== |
(3.45)p ====== |
11.24p ===== |
7.79p ===== |
The total column of this statement represents the Group's Statement of Comprehensive Income prepared in accordance with International Financial Reporting Standards as adopted by the European Union.
The Group does not have any other comprehensive income and hence the (loss)/profit for the year, as disclosed above, is the same as the Group's total comprehensive income.
The revenue and capital columns are supplementary to this and are prepared under guidance published by the AIC.
All income is attributable to the equity holders of the company. There are no minority interests.
All items in the above statement derive from continuing operations.
The accompanying notes form part of these Financial Statements.
Group Balance Sheet
as at 29 February 2012
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
At 29 February |
At 28 February |
At 31 August |
|
|
2012 |
2011 |
2011 |
|
|
Group |
Group |
Group |
|
Notes |
£'000 |
£'000 |
£'000 |
Non-current assets |
|
|
|
|
Investments held at fair value through profit or loss
|
|
105,547 ------------ |
99,538 ------------- |
95,867 ------------- |
|
|
105,547 |
99,538 |
95,867 |
Current assets |
|
|
|
|
Current asset investments |
|
6,508 |
- |
- |
Other receivables |
|
1,158 |
1,222 |
5,427 |
Cash and cash equivalents |
|
1,770 ----------- |
360 ------------- |
23 ------------ |
|
|
9,436 ----------- |
1,582 ------------- |
5,450 ------------ |
Total assets |
|
114,983 |
101,120 |
101,317 |
|
|
|
|
|
Current liabilities |
|
|
|
|
Borrowings |
|
- |
- |
(7,996) |
Other payables |
|
(972) ----------- |
(2,197) ------------ |
(1,557) ------------ |
|
|
(972) ----------- |
(2,197) ------------ |
(9,553) ------------ |
Net assets |
|
114,011 ----------- |
98,923 ------------ |
91,764 ------------ |
Equity attributable to equity holders |
|
|
|
|
Called up share capital |
5 |
14,827 |
15,408 |
15,089 |
Share premium account |
|
18,805 |
18,805 |
18,805 |
Capital redemption reserve |
|
26,990 |
26,409 |
26,728 |
Share purchase reserve |
|
45,596 |
51,446 |
46,449 |
Capital reserves |
6 |
28,530 |
5,693 |
4,501 |
Revenue reserve |
|
(20,737) ------------- |
(18,838) ------------ |
(19,808) ------------ |
Equity shareholders' funds |
|
114,011 ------------- |
98,923 ------------ |
91,764 ------------ |
Net asset value per Ordinary Share |
7 |
205.58p ======= |
166.80p ======= |
163.84p ======= |
The accompanying notes form part of these Financial Statements.
Group Statement of Changes in Equity
|
Group For the six months ended 29 February 2012 (Unaudited) |
|||||||||
|
Called up |
Share |
Capital |
Share |
|
|
|
|||
|
share |
premium |
redemption |
purchase |
Capital |
Revenue |
|
|||
|
capital |
account |
reserve |
reserve |
reserves |
reserve |
Total |
|||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||
Balance at 31 August 2011 |
15,089 |
18,805 |
26,728 |
46,449 |
4,501 |
(19,808) |
91,764 |
|||
Total Comprehensive Income: |
|
|
|
|
|
|
|
|||
Profit/(loss) for the period |
- |
- |
- |
- |
24,029 |
(929) |
23,100 |
|||
Transactions with owners, recorded directly to equity: |
|
|
|
|
|
|
|
|||
Shares bought back and held in treasury |
- |
- |
- |
(853) |
- |
- |
(853) |
|||
Shares cancelled from treasury
|
(262) ---------- |
- --------- |
262 ---------- |
- --------- |
- ----------- |
- ----------- |
- ----------- |
|||
Balance at 29 February 2012
|
14,827 ====== |
18,805 ===== |
26,990 ====== |
45,596 ===== |
28,530 ====== |
(20,737) ====== |
114,011 ====== |
|||
|
|
|||||||||
|
Group For the six months ended 28 February 2011 (Unaudited) |
|||||||||
|
Called up |
Share |
Capital |
Share |
|
|
|
|||
|
share |
premium |
redemption |
purchase |
Capital |
Revenue |
|
|||
|
capital |
account |
reserve |
reserve |
reserves |
reserve |
Total |
|||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||
Balance at 31 August 2010 |
16,208 |
18,805 |
25,609 |
52,913 |
(2,091) |
(17,786) |
93,658 |
|||
Total Comprehensive Income: |
|
|
|
|
|
|
|
|||
Profit/(loss) for the period |
- |
- |
- |
- |
7,784 |
(1,052) |
6,732 |
|||
Transactions with owners, recorded directly to equity: |
|
|
|
|
|
|
|
|||
Shares bought back and held in treasury |
- |
- |
- |
(1,467) |
- |
- |
(1,467) |
|||
Shares cancelled from treasury
|
(800) --------- |
- --------- |
800 ---------- |
- ---------- |
- ---------- |
- ---------- |
- ---------- |
|||
Balance at 28 February 2011
|
15,408 ===== |
18,805 ====== |
26,409 ====== |
51,446 ====== |
5,693 ====== |
(18,838) ====== |
98,923 ====== |
|||
|
|
|||||||||
|
Group For the year ended 31 August 2011 (Audited) |
|||||||||
|
Called up |
Share |
Capital |
Share |
|
|
|
|||
|
share |
premium |
redemption |
purchase |
Capital |
Revenue |
|
|||
|
capital |
account |
reserve |
reserve |
reserves |
reserve |
Total |
|||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||
Balance at 31 August 2010 |
16,208 |
18,805 |
25,609 |
52,913 |
(2,091) |
(17,786) |
93,658 |
|||
Total Comprehensive Income: |
|
|
|
|
|
|
|
|||
Profit/(loss) for the period |
- |
- |
- |
- |
6,592 |
(2,022) |
4,570 |
|||
Transactions with owners, recorded directly to equity: |
|
|
|
|
|
|
|
|||
Shares bought back and held in treasury |
- |
- |
- |
(6,464) |
- |
- |
(6,464) |
|||
Shares cancelled from treasury
|
(1,119) ---------- |
- ---------- |
1,119 ---------- |
- ---------- |
- ---------- |
- ---------- |
- ---------- |
|||
Balance at 31 August 2011
|
15,089 ====== |
18,805 ====== |
26,728 ====== |
46,449 ====== |
4,501 ====== |
(19,808) ====== |
91,764 ====== |
|||
The accompanying notes form part of these Financial Statements.
Group Cash Flow Statement
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
For the six months |
For the six months |
For the year |
|
ended 29 February |
ended 28 February |
ended 31 August |
|
2012 |
2011 |
2011 |
|
Group |
Group |
Group |
|
£'000 |
£'000 |
£'000 |
Cash Flows from operating activities |
|
|
|
Profit before finance costs and tax |
23,137 |
6,743 |
4,607 |
Exchange losses on currency balances |
225 |
76 |
101 |
Adjustments for: |
|
|
|
Increase in investments |
(9,680) |
(8,089) |
(4,418) |
(Increase)/decrease in current asset investments |
(6,508) |
1,500 |
1,500 |
Decrease/(Increase) in receivables |
4,269 |
(348) |
(4,553) |
(Decrease)/Increase in payables |
(585) |
787 |
138 |
Taxation
|
(18) ----------- |
(4) ------------ |
(14) ------------- |
Net cash Flows from/(used in) operating activities
|
10,840 ----------- |
665 ------------ |
(2,639) ------------- |
Cash Flows from financing activities |
|
|
|
Share repurchase costs |
(853) |
(1,467) |
(6,464) |
Interest paid on bank overdrafts
|
(19) ----------- |
(7) ------------ |
(14) ------------- |
Net cash used in financing activities
|
(872) ----------- |
(1,474) ------------ |
(6,478) ------------- |
Net increase/(decrease) in cash and cash equivalents |
9,968 |
(809) |
(9,117) |
Effect of foreign exchange losses |
(225) |
(76) |
(101) |
Cash and cash equivalents at beginning of period
|
(7,973) ----------- |
1,245 ----------- |
1,245 ------------ |
Cash and cash equivalents at end of period
|
1,770 ====== |
360 ======= |
(7,973) ======= |
The accompanying notes form part of these Financial Statements.
Notes to the Financial Statements
1. Accounting policies
The consolidated Financial Statements have been prepared on a going concern basis, in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union and are presented in Sterling, as this is the principal currency of the primary economic environment in which the Group operates.
The Financial information for each of the six month periods ended 29 February 2012 and 28 February 2011 comprises non-statutory accounts within the meaning of Sections 434 - 436 of the Companies Act 2006. The financial information for the year ended 31 August 2011 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
The Company's principal risks and uncertainties remained unchanged to those described in the Annual Report for the year ended 31 August 2011.
The Group's accounting policies have not varied from those described in the Annual Report for the year ended 31 August 2011.
2. Income
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
For the six months |
For the six months |
For the year |
|
ended 29 February |
ended 28 February |
ended 31 August |
|
2012 |
2011 |
2011 |
|
£'000 |
£'000 |
£'000 |
Income from investments held at fair value through profit or loss: |
|
|
|
Franked dividends |
1 |
- |
7 |
Unfranked dividends |
111 |
35 |
183 |
Interest on debt securities |
- ----------- |
2 ----------- |
2 ---------- |
|
112 |
37 |
192 |
Other income: |
|
|
|
Income from current asset investments |
- |
1 |
3 |
Other income |
- ----------- |
- ----------- |
1 ---------- |
|
112 ======= |
38 ======= |
196 ======= |
3. Management fees and interest payable
The investment management fee and any finance costs on borrowings for investment purposes are apportioned 100% to the revenue reserve. As of 29 February 2012 a performance fee of £767,000 has been accrued but not paid relating to gains made on quoted investments.
4. Earnings per Ordinary Share
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
For the six months |
For the six months |
For the year |
|
ended 29 February |
ended 28 February |
ended 31 August |
|
2012 |
2011 |
2011 |
|
£'000 |
£'000 |
£'000 |
Net revenue loss |
(929) |
(1,052) |
(2,022) |
Net capital profit |
24,029 ------------ |
7,784 ------------ |
6,592 ------------ |
|
23,100 ======= |
6,732 ======= |
4,570 ======= |
Weighted average number of Ordinary shares in issue |
55,652,993 |
59,830,867 |
58,642,458 |
Revenue loss per Ordinary share |
(1.67)p |
(1.76)p |
(3.45)p |
Capital profit per Ordinary share |
43.18p ------------ |
13.01p ------------ |
11.24p ------------ |
Total profit per Ordinary share |
41.51p ======= |
11.25p ======= |
7.79p ======= |
5. Called Up Share Capital
During the six months ended 29 February 2012, the Company repurchased 550,000 Ordinary shares to be held in treasury, at a cost of £853,000, which reduced the number of Ordinary shares in issue from 56,007,663 shares to 55,457,663. A further 1,050,000 shares held in treasury were cancelled, leaving 3,850,000 shares in treasury. Since the half-year end, the Company cancelled a further 500,000 Ordinary Shares from treasury.
The Ordinary shares held in treasury have no voting rights and are not entitled to dividends.
6. Capital reserves
The capital reserve account comprises both realised gains on investments sold and unrealised gains and losses on investments held, which are analysed as follows:
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
At 29 February |
At 28 February |
At 31 August |
|
2012 |
2011 |
2011 |
|
£'000 |
£'000 |
£'000 |
Capital reserve - on investments sold |
24,357 |
992 |
10,200 |
Capital reserve - on investments held |
4,173 ----------- |
4,701 ----------- |
(5,699) ------------ |
|
28,530 ====== |
5,693 ======= |
4,501 ======= |
7. Net asset value per ordinary share
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
At 29 February |
At 28 February |
At 31 August |
|
2012 |
2011 |
2011 |
Net assets attributable to ordinary shareholders (£'000) |
114,011 |
98,923 |
91,764 |
Ordinary shares in issue at end of period |
55,457,663 |
59,307,663 |
56,007,663 |
Net asset value per ordinary share
|
205.58p ======= |
166.80p ======= |
163.84p ======== |
8. Related party transactions
There have been no related party transactions that have materially affected the financial position or the performance of the Group during the six month period to 29 February 2012.
9. Half Yearly Report
The Company's Half Yearly Report for the six months ended 29 February 2012 will be posted to shareholders in April 2012. Copies of the Half Yearly Report will be available from the Registered Office of the Company at 55 Moorgate, London EC2R 6PA and on the website, www.ibtplc.com, which is a website maintained by the Company's Investment Manager, SV Life Sciences Managers LLP.
For further information, please contact:
Kate Bingham/David Pinniger
Investment Manager
SV Life Sciences Managers LLP
Telephone: 020 7412 7070
Rhona Gregg
Company Secretary
BNP Paribas Secretarial Services Limited
Telephone: 0141 225 3009
13 APRIL 2012