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Oxford Technology VCT plc (OXT)


Tuesday 07 June, 2011

Oxford Technology VCT plc

Annual Financial Report

                          Preliminary Announcement for

                   Oxford Technology Venture Capital Trust PLC

                      for the year ended 28 February 2011

                              Chairman's Statement

                              Investment Portfolio

In  July  2010 Oxford  Technology  VCT  (OT1)  paid a dividend of 10p per share,
bringing  the cumulative  dividends paid  to 42.7p.  This  followed the  sale of
OT1's  holding  in  Membrane  Extraction  Technology,  a  spin-out from Imperial
College,  in which OT1 invested £160,000  in December 1998 and a further £50,000
in  February  2007.  MET  developed  special  purpose  membranes  to improve the
separation  process following  a chemical  reaction, for  example to extract the
desired compound from a mix of reaction products.  OT1 received £834,000 for its
shares, on the sale of the company to the German chemical company, Evonik.

After  paying this dividend and after adjustments to the valuations of the other
holdings in the portfolio based on their progress, the net asset value per share
on  28 February 2011 was 26p compared to  41p on 28 February 2010.  The earnings
per  share in  the year  to 28 February  2011 showed a  loss of 5.0p compared to
earnings of 5.3p in the year to 28 February 2010.  These figures result from the
changes  to the valuations  of the investments  during the year  as shown in the
table  on page  5. The major  reason for  the reduction  was a  reduction in the
valuation  of Select and this in turn  was because Select raised some additional
capital  during the year at a  reduced share price, and it  is our policy to use
the  share price  at a  recent fundraising  as the  means of valuing an unquoted

OT1  owns a significant shareholding, currently 27.4%, in Select Technology Ltd.
Since 2005, Select has been working very closely with Ricoh, the world's leading
manufacturer  of MFDs  (Multi-Function Devices,  formerly known as photocopiers,
but which now do many other things as well, such as scanning, emailing, printing
and  faxing). Increasingly,  as with  computers 30 years  ago, what  persuades a
customer  to  buy  one  model  rather  than  another is not the hardware but the
software  which runs on the hardware, such  as software to allocate the costs of
using the MFDs on a global network to the appropriate departments. Ricoh are not
themselves experts in this software.  Select has developed software modules, now
known  as the m3i platform which can be embedded within Ricoh's operating system
and  which transmit data about  the state of affairs  within the MFD to external
software and which enables external software to control the MFD.  So m3i acts as
a bridge between Ricoh MFDs and external software. Select receives an average of
£250 (at a high gross margin) every time m3i is used on a particular MFD.

M3i enables a multitude of applications. For example the Access Module enables a
visually  impaired user to operate an MFD from  their own laptop or PDA, using a
screen  with large writing tailored to  their particular needs.  Ricoh named the
Access  Modules its  "Innovative product  of the  year" in September 2007.   But
progress  through Ricoh itself  has been agonisingly  slow, partly because Ricoh
has  made numerous acquisitions  and has been  adapting its business structures.
 However,   during   the  year,  Select  has  been  shifting  its  emphasis  and
concentrating on dealers, and this is beginning to bear fruit.   Sales have been
mainly through dealers in the UK, but it has been encouraging to see that once a
dealer starts to use m3i, the sales grow steadily each quarter.  The first sales
have  also been achieved in  the US and Europe.   So, if things continue to move
forward, Select may begin to generate significant profits.

Scancell has been building a portfolio of early stage therapeutic antibodies, as
well  as  working  on  a  novel  approach  to  therapeutic cancer vaccines - the
Immunobody  platform.   The  technology  uses  an  engineered  human  monoclonal
antibody  as a vector to target and  activate dendritic cells that are essential
for  stimulating a full  immune response against  the target cancer. Most cancer
vaccine  approaches induce T  cells of low  avidity that fail  to control tumour
growth.  Studies have repeatedly shown that  the Immunobody approach can deliver
high  avidity T cell responses that: lyse  tumour cells; inhibit growth of solid
tumours;  and prevent the  spread of metastatic  disease. The technology has the
potential to revolutionise the way certain cancers are treated.

In  2010 the company's shares  were admitted to  trading on AIM  and the company
raised  £2.5m of capital to enable it to begin phase 1/2a clinical trials of its
first  Immunobiology vaccine  for treatment  of malignant  melanoma. The company
received  approval  for  its  clinical  Trial  Application  in  mid  2010. As  a
benchmark,  Scancells's approach of  activating dendritic cells  is similar (but
clinically  simpler) to that  developed by US  company Dendreon Corp. Dendreon's
Provenge  therapy for prostate  cancer has demonstrated  positive results from a
phase  III trial, and the company saw  its market capitalisation soar from $100m
in  2009 to more than $3bn in January 2011. Scancell is currently capitalised at
circa £12m.

While  other companies in the portfolio continue to trade, (and Dataflow has had
its  best financial results for many years)  the best prospects of a good return
for shareholders reside with Select and Scancell.

                        Investment Policy & Fundraising

The  Company has  built a  balanced portfolio  of investments with the following
·  unlisted, UK based, science, technology and engineering businesses
·  investments typically in the range of £100,000 to £500,000
·  generally located within approximately 60 miles of Oxford
                              Results for the year
Interest  on bank  deposits and  investee loans  produced gross income of £4,000
(2010: £5,000) in the year.  The loss for the year was £271,000 (2010: profit of
£280,000)  and earnings per share for the year showed a loss of 5.0p (2010: gain
of 5.3p).
Shareholders  should note that the  AGM for Oxford Technology  VCT (OT1) will be
held  on Wednesday 6th July  2011, at the Magdalen  Centre, Oxford Science Park,
starting  at 12.00 noon and will include  presentations by some of the companies
in  which the Oxford Technology  VCTs have invested. A  formal Notice of AGM has
been  included at the back  of these Accounts together  with a Form of Proxy for
those not attending.
John Jackson - Chairman

6 June 2011

       Profit and Loss Account for the year ended 28 February 2011

                                    Year ended                        Year ended

                                              28/02/11                  28/02/10

                                                  £000                      £000

(Loss) on disposal of                            (105)
investments held at fair value                                    (14)

Unrealised (loss)/gain on fair                   (106)                       349
value of investments

Other income                                         4                         5

Investment management fees                        (32)                      (28)

Other expenses                                    (32)                      (32)

                                ­­­­­­­­­­­­­­________                   _______

(Loss)/profit on ordinary                        (271)                       280
activities before tax

Taxation on profit/(loss) on                         -                         -
ordinary activities

                                                ======                    ======

(Loss)/profit on ordinary                        (271)                     (280)
activities after tax

                                                ======                    ======

Earnings per share (basic and                   (5.0)p                      5.3p

                                                ======                    ======

Historic cost profits and losses note

                                                   Year ended         Year ended

                                                             28/02/11   28/02/10

                                                                 £000       £000

(Loss)/profit for the year:                                     (271)        280

Unrealised loss/(gain) on fair value of                           106      (349)

Loss/(profit) on disposal of investments held at                  105         14
fair value

Profit/(loss) on disposal of investments held at                  164      (173)
historical value

Historical cost (loss)/profit before tax                          104      (228)

Historical cost (loss)/profit after tax                           104      (228)

                       Balance sheet at 28 February 2011

                                        28 February 2011       28 February 2010
                                                  Audited                Audited

                                    £000             £000  £000             £000

Fixed assets

Investments at fair value                           1,115                  2,051

Current assets

Debtors & prepayments                  8                      3

Cash at bank                         292                    122

                                   _____                  _____

                                     300                    125

Creditors: amounts falling due       (5)                    (7)
within one year

                                   _____                  _____

Net current assets                                    295                    118

                                                    _____                  _____

Net assets                                          1,410                  2,169

                                                    =====                  =====

Capital and reserves

Called up share capital                               543                    529

Share premium                                         176                    135

Profit and loss account                               710                  1,149

Unrealised capital reserve                           (19)                    356

Shareholders' funds                                 1,410                  2,169

                                                    =====                  =====

Net asset value per share                             26p                    41p

                                                    =====                  =====

            Cash flow statement for the year ended 28 February 2011

                                                       2011 Audited 2010 Audited

                                                               £000         £000

Net cash (outflow) from operating activities                   (66)         (57)

Capital expenditure and financial investment

                               Purchase of investments        (110)         (58)

                               Disposal of investments          835            -

                                                             ______       ______

Net cash (outflow) from capital expenditure and                 725         (58)
financial investment

Net cash outflow before financing                               659        (115)


Issue of Shares                                                  58           92

Expenses paid in connection with share issue                    (3)          (5)

Net cash inflow from financing                                   55           87

Dividends paid                                                (543)            -

                                                             ______       ______

(Decrease) in cash                                              171         (28)

                                                             ======       ======


1. Basis of preparation

The   financial   statements  have  been  prepared  under  the  historical  cost
convention,  modified to include  the revaluation of  investments. The financial
statements have been prepared in accordance with applicable accounting standards
and  with  the  Statement  of  Recommended  Practice  'Financial  statements  of
investment trust companies' issued in 2009.

2. Earnings per Ordinary Share

The  calculation of  earnings per  share for  the period  is based on the profit
attributable to shareholders divided by the weighted average number of shares in
issue during the period.
3.  Valuation of Investments

Quoted  investments are stated at the bid price. Unquoted investments are stated
at fair value, where fair value is estimated after following the guidelines laid
down  by the  International Private  Equity and  Venture Capital Guidelines. The
Directors'  policy is to initially state investments  at cost and then to review
the  valuation every three months. The  Directors' may then apply an appropriate
methodology  which, as far as possible, draws on external, objective market data
such as where fair value is indicated by:
·  a material  arms length  transaction by  a third  party in  the shares of the
company,  with  discounting  for  more  junior  asset  classes, and reviewed for
impairment; or
·           a suitable  revenue or earnings  multiple where the  company is well
established  and generating maintainable profits. The  multiple will be based on
comparable  listed  companies  but  may  be  discounted  to  reflect  a  lack of
marketability; or
· the net assets of the business.
Where such objective data is not available the Directors' may choose to maintain
the  value  of  the  company  as  previously  stated  or  to discount this where
indicated by underperformance against plan.
During  the  year  ended  28 February  2006 the directors revoked the Investment
Company  status  to  enable  distributions  of  capital profits to shareholders.
 Consequently  the accounts have been prepared to include a statutory profit and
loss  account and  a note  of historical  profits and  losses in accordance with
schedule 4 of the Companies Act 2006 and Financial Reporting Standard 3 (FRS 3).

The  directors consider that this basis  of valuation of unquoted investments is
consistent with the International Private Equity and Venture Capital Guidelines.
4. General

The  financial information  set out  in this  preliminary announcement  does not
constitute  statutory accounts as defined in section 434(3) of the Companies Act
2006. The  balance sheet  at 28 February  2011 and the  profit and loss account,
cash  flow statement  and associated  notes for  the year  then ended  have been
extracted from the company's 2011 statutory financial statements.

Those  financial statements have  been delivered to  the Registrar of Companies,
contain  an  auditors'  opinion  that  is  unqualified  and  do  not include any
statement under section 498(2) or (3) of the Companies Act 2006.

This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
Source: Oxford Technology VCT plc via Thomson Reuters ONE



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