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Murray VCT 3 PLC (MYV)

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Friday 15 October, 2004

Murray VCT 3 PLC

Interim Results


MURRAY VCT 3 PLC

Interim Results for the Six Months to 31 August 2004

The Directors announce the unaudited interim results of Murray VCT 3 PLC for the
six months to 31 August 2004.

Performance

As at 31 August 2004 the NAV was 56.4p, an increase from 56.1p at 29 February
2004. The Board and the Manager have been working to improve the performance of
the portfolio, which is explained more fully below, and the small NAV increase
is the first sign of progress. The Board believes that there are more favourable
prospects for an increasing number of the investee companies, but these will
inevitably take some time to come through.

Dividends

Having obtained Inland Revenue approval for the distribution of the capital gain
arising on the sale of Intron, a dividend of 0.20p per share ("pps") was paid on
17 September 2004. As in the previous year, the Board has not declared an
interim dividend for the year ending 28 February 2005. The Board has an
objective of distributing gains achieved on the sale of investments, while
taking into account the need to retain funds for the existing portfolio and new
investment opportunities. The decision to distribute in any particular year will
normally be taken in the light of the annual results.

Returns to date

Since the Company's launch most Shareholders will have received 24.9 pps in
tax-free dividends, comprising 16.1 pps in income dividends and 8.8 pps in
distributions of capital gains. To an investor who took advantage of the initial
income tax relief and who therefore has an effective initial investment cost of
80 pps, the tax free dividends represent a return of over 31% of that cost. The
total return, being the sum of dividends paid plus NAV, is 81.3 pps representing
102% of the initial investment cost. The board is confident that the Manager is
taking all necessary actions to increase this figure. In the short-term, the NAV
on its own is a less important measure of performance as the underlying
investments are long-term in nature and not readily realisable. The most
important measures for a VCT are the long term record of dividend payments and
the timing of those payments over the life of the Company.

Investment activity

Further unlisted investment during the six months ended 31 August 2004 totalled
£920,000. At 31 August 2004, the portfolio stood at 41 investments with a total
cost of £27.4 million.

The following new investment has been made since the publication of the Annual
Report:

RMS Europe Limited (July 2004) -£455,000: RMS operates ports at Goole, on the
Humber Estuary and at Flixborough and Gunness on the River Trent, providing
stevedoring and ships agency services together with the storage and onward
transport of materials. The total fundraising was £3.6 million and Murray VCT
PLC, Murray VCT 2 PLC, Murray VCT 4 PLC, Aberdeen Growth VCT I PLC, Aberdeen
Growth Opportunities PLC, Aberdeen Development Capital PLC and West Yorkshire
Pension Fund were co-investors.



Portfolio developments

Since the publication of the Annual Report, the holdings in Webfell have been
sold realising £396,574 and resulting in a loss of £603,426 against cost but a
gain of £63,384 over the February 2004 valuation. J and S Marine has repaid the
remaining loan stock of £263,890 at par.

While no further proceeds have been received from Conveco in addition to the
£1.9 million referred to in the annual report, the purchaser has confirmed that
the major condition for release of the deferred consideration has been satisfied
and it is likely that further amounts will be received when the escrow period
has expired.

Investment strategy

As reported in the Annual Report, the Board has implemented a comprehensive
review of the investment strategy with the Manager, following which five primary
objectives have been identified:

 intensive portfolio management to help restore profitability to the investee
  companies;

 concentration of resources on investments that display real exit or recovery
  potential;

 the resumption of dividend and interest payments to the Company from the
  portfolio, where these are in arrears;

 disposal of under-performing investments where possible; and

 investment of surplus cash, selectively, in larger companies with strong
  growth potential.

The aim of these objectives is to restore value and, ultimately, achieve
successful disposals from a stronger position in an improved market.

At present, the Company has approximately 26.2% of its assets in cash and gilts,
which will enable the necessary support to be given to existing investee
companies and also permit investment in new opportunities on the basis
indicated.

Valuation process

Murray VCT 3's investments in unlisted companies are valued at fair value in
accordance with the British Venture Capital Association guidelines. In line with
normal market practice for investment companies and investment trusts,
investments listed on the Alternative Investment Market (AIM) are valued at
their mid-market price, discounted to reflect any trading restrictions.

Share buy-back policy

Purchases of shares will be made within guidelines established from time to time
by the Board, at prices below the prevailing NAV per Ordinary share and in
accordance with the rules of the UK Listing Authority. Share purchases will be
funded from distributable reserves and, to the extent that shares are purchased,
the NAV of the remaining shares will increase.

Outlook

The Company has a broad spread of investments and the Board and the Manager
believe that a number of these have positive prospects which should respond to
an improvement in the economic environment for smaller companies and to
intensive management. The immediate priority of the Manager is to concentrate
efforts with a view to improving performance. Market conditions are improving
and the Manager expects that a number of exits will be actively pursued in the
short to medium term. Deal flow has also increased and, if the pricing of new
investments continues to be attractive, the Manager will continue to pursue new
investments on a selective basis.

MURRAY VCT 3 PLC
SUMMARY OF INVESTMENT CHANGES
For the six months ended 31 August 2004


                 Valuation
                29 February  Net investment   Appreciation     Valuation
                2004         (disinvestment) (depreciation)   31 August 2004
               £'000       %           £'000          £'000    £'000       %

Unlisted
investments
Equities       4,490    19.4             160            816    5,466    23.7
Preference       474     2.0               -              4      478     2.1
shares
Loan stocks   12,195    52.8          (1,740)          (794)   9,661    42.0
              ------  ------      ----------      ---------  -------  ------
              17,159    74.2          (1,580)            26   15,605    67.8
AIM
investments
Equities                   -                              -                -
Listed
investments
Equities           -       -               -              -        -       -
Fixed          4,428    19.1             959             (9)   5,378    23.4
income        ------  ------      ----------      ---------  -------  ------
Total         21,587    93.3            (621)            17   20,983    91.2
investments
Other net      1,553     6.7             484              -    2,037     8.8
assets        ------  ------      ----------      ---------  -------  ------
Total         23,140   100.0            (137)            17   23,020   100.0
Assets        ======  ======      ==========      =========  =======  ======



MURRAY VCT 3 PLC
INVESTMENT PORTFOLIO SUMMARY
As at 31 August 2004
                                                                 % of
                                                   Valuation    total
Unlisted investments       Nature of business          £'000   assets

Synexus                    Provider of health          1,726      7.5
                           management services
TLC (Tender Loving         Operator of daycare         1,379      6.0
Childcare)                 nurseries
PSCA                       Government sector           1,106      4.8
                           publishing
Heathcotes Restaurants     Restaurant chain and        1,017      4.4
                           provider of outside
                           catering facilities
Clamonta Engineering       Precision engineering         866      3.8
Businesshealth             Management of clinical        751      3.3
                           trials
ELE Advanced               Precision engineering         750      3.2
Technologies
Transrent Holdings         Provider of transport         750      3.2
                           and trailer solution
                           services
Link Up Mitaka             Language translation          675      2.9
                           service provider
Sequoia Technology         Distributor of                600      2.6
                           electronic components
                           and equipment

Other investments valued individually at less than     5,985     26.0
£600,000                                              --------  -------
                                                      15,605     67.7
Listed fixed income investments
Treasury 8.5% 7/12/2005                                  633      2.7
Treasury 6.75% 7/11/2004                               2,222      9.7
Conversion 9.5% 8/04/                                  2,523     11.0
2005                                                  --------  -------
                                                       5,378     23.4
                                                      --------  -------
Total investments                                     20,983     91.1
                                                      --------  -------

Murray VCT 3 PLC
Independent Review Report to Murray VCT 3 PLC

Introduction

We have been instructed by the company to review the financial information for
the six months ended 31 August 2004 which comprises the Profit and Loss Account,
Balance Sheet, Cash Flow Statement, Statement of Total Recognised Gains and
Losses and the related notes 1 to 3. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

This report is made solely to the company in accordance with guidance contained
in Bulletin 1999/4 'Review of interim financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our work,
for this report, or for the conclusions we have formed.

Directors' Responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review Work Performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
'Review of interim financial information' issued by the Auditing Practices Board
for use in the United Kingdom. A review consists principally of making enquiries
of management and applying analytical procedures to the financial information
and underlying financial data, and based thereon, assessing whether the
accounting policies and presentation have been consistently applied, unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with United
Kingdom Auditing Standards and therefore provides a lower level of assurance
than an audit. Accordingly we do not express an audit opinion on the financial
information.

Review Conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 August 2004.

Ernst & Young LLP

Edinburgh

15 October 2004


MURRAY VCT 3 PLC
PROFIT AND LOSS ACCOUNT

                                                    Unaudited
                                              Six months to 31 August
                                                       2004
                                            Revenue   Capital    Total
                                               £000      £000     £000

Investment income and deposit income            473         -      473
Investment management fees                     (136)     (206)    (342)
Other expenses                                 (130)        -     (130)
                                             --------  -------- --------
Operating profit/(loss)                         207      (206)       1
Profit on realisation of investments              -       512      512
Amount written off investments                    -      (569)    (569)
                                             --------  -------- --------
(Loss)/profit on ordinary activities before     207      (263)     (56)
taxation
Tax on ordinary activities                      (61)       61        -
                                             --------  -------- --------
(Loss)/profit on ordinary activities after      146      (202)     (56)
taxation
Ordinary dividends on equity shares
Capital dividends nil (2004 - 0.2p)               -         -        -
Final 2004 - 1.8p                                 -         -        -
Over accrual in prior years                       5         -        5
                                             --------  -------- --------
Balance transferred (from)/to reserves          151      (202)     (51)
                                             --------  -------- --------
Earnings per share (pence) (note 3)             0.4      (0.5)    (0.1)
                                             --------  -------- --------

MURRAY VCT 3 PLC
PROFIT AND LOSS ACCOUNT

                                                     Unaudited
                                               Six months to 31 August
                                                       2003
                                             Revenue   Capital   Total
                                                £000      £000    £000

Investment income and deposit income             715         -     715
Investment management fees                      (157)     (236)   (393)
Other expenses                                  (109)        -    (109)
                                               -------   ------- -------
Operating profit                                 449      (236)    213
Profit on realisation of investments               -         -       -
Amount written off investments                     -        68      68
                                               -------   ------- -------
(Loss)/profit on ordinary activities before      449      (168)    281
taxation
Tax on ordinary activities                       (69)        -     (69)
                                               -------   ------- -------
(Loss)/profit on ordinary activities after       380      (168)    212
taxation
Ordinary dividends on equity shares
Capital dividends nil (2004 - 0.2p)                -         -       -
Final 2004 - 1.8p                                  -         -       -
Over accrual in prior years                        -        19      19
                                               -------   ------- -------
Balance transferred (from)/to reserves           380      (149)    231
                                               -------   ------- -------
Earnings per share (pence) (note 3)              0.9      (0.4)    0.5
                                               -------   ------- -------

MURRAY VCT 3 PLC
PROFIT AND LOSS ACCOUNT

                                                     Audited
                                               Year ended 29 February
                                                       2004
                                            Revenue   Capital    Total
                                               £000      £000     £000

Investment income and deposit income          1,687         -    1,687
Investment management fees                     (300)     (450)    (750)
Other expenses                                 (208)        -     (208)
                                             --------  -------- --------
Operating profit                              1,179      (450)     729
Profit on realisation of investments              -         -        -
Amount written off investments                    -       596      596
                                             --------  -------- --------
(Loss)/profit on ordinary activities before   1,179       146    1,325
taxation
Tax on ordinary activities                     (346)      147     (199)
                                             --------  -------- --------
(Loss)/profit on ordinary activities after      833       293    1,126
taxation
Ordinary dividends on equity shares
Capital dividends nil (2004 - 0.2p)               -       (83)     (83)
Final 2004 - 1.8p                              (743)        -     (743)
Over accrual in prior years                      19         -       19
                                             --------  -------- --------
Balance transferred (from)/to reserves          109       210      319
                                             --------  -------- --------
Earnings per share (pence) (note 3)             2.0       0.8      2.8
                                             --------  -------- --------


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 31 August 2004
(unaudited)

                                         Six months to 31 August 2004
                                        Revenue      Capital     Total
                                           £000         £000      £000

Profit/(loss) on ordinary activities        146         (202)      (56)
after taxation
Unrealised gain/(loss) on revaluation         -           76        76
of investments
Current tax attributable to unrealised       61          (61)        -
gains and losses on Investments
                                         --------     --------  --------
Total recognised gains and losses           207         (187)       20
relating to the period                   --------     --------  --------


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 31 August 2004
(unaudited)

                                         Six months to 31 August 2003
                                        Revenue      Capital     Total
                                           £000         £000      £000

Profit/(loss) on ordinary activities        309          (97)      212
after taxation
Unrealised loss on revaluation of             0       (1,870)   (1,870)
investments
Current tax attributable to unrealised      140          (71)       69
gains and losses on Investments
                                          -------     --------   -------
Total recognised gains and losses           449       (2,038)   (1,589)
relating to the period                    -------     --------   -------


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 31 August 2004 (unaudited)

                                               Year ended 29 February
                                                       2004
                                            Revenue   Capital    Total
                                               £000      £000     £000

Profit on ordinary activities after             833       293    1,126
taxation
Unrealised loss on revaluation of                 -    (3,112)  (3,112)
investments
Current tax attributable to unrealised          346      (147)     199
gains and losses on investments
                                             --------  --------  -------
Total recognised gains and losses relating    1,179    (2,966)  (1,787)
to the period                                --------  --------  -------


MURRAY VCT 3 PLC
BALANCE SHEET
as at 31 August 2004 (unaudited)

                                 Unaudited       Unaudited       Audited
                             31 August 2004  31 August 2003  29 February 2004
                                      £000            £000        £000

Fixed assets
Investments                         20,983          22,155      21,587
Current assets
Debtors                              1,715           1,695       1,970
Cash and overnight                     650             586         653
deposits
                               ------------     -----------  ----------
                                     2,365           2,281       2,623
Creditors
Amounts falling due within             328             272       1,070
one year
                               ------------     -----------  ----------
Net current assets                   2,037           2,009       1,553
                               ------------     -----------  ----------
                                    23,020          24,164      23,140
                               ------------     -----------  ----------
Capital and reserves
Called up share capital              4,084           4,128       4,128
Share premium account                    -          20,750           -
Revaluation reserve                (10,815)        (13,461)    (13,031)
Capital redemption reserve             161             117         117
Profit and loss account             29,590          12,630      31,926
                               ------------     -----------  ----------
Equity shareholders' funds          23,020          24,164      23,140
                               ------------     -----------  ----------

Net asset value per ordinary          56.4            58.5        56.1
share (pence)



MURRAY VCT 3 PLC
CASH FLOW STATEMENT
for the six months ended 31 August 2004 (unaudited)

                                Unaudited        Unaudited         Audited
                               Six months to   Six months to     Year ended
                             31 August 2004    31 August 2003 29 February 2004
                                    £'000           £'000        £'000

Operating activities
Investment income received            600             685        1,574
Deposit interest received               6               4            7
Other Income                           21               6           10
Investment management fees           (349)           (457)        (809)
paid
Secretarial fees paid                 (34)            (27)         (55)
Cash paid to and on behalf of         (31)            (32)         (60)
directors
Other cash payments                   (63)            (38)        (114)
                                 ----------      ----------     --------
Net cash inflow from operating        150             141          553
activities
Financial investment
Purchase of investments            (6,004)         (2,870)      (6,625)
Sale of investments                 6,735           5,106        8,516
                                 ----------      ----------     --------
Net cash inflow from financial        731           2,236        1,891
investment
Equity dividends paid                (738)         (2,178)      (2,178)
                                 ----------      ----------     --------
Net cash inflow before                143             199          266
financing
Financing
Issue of ordinary shares                -             472          472
Repurchase of ordinary shares        (146)           (192)        (192)
                                 ----------      ----------     --------
Net cash (outflow)/inflow from       (146)            280          280
financing
(Decrease)/increase in cash            (3)            479          546
                                 ----------      ----------     --------

MURRAY VCT 3 PLC

NOTES

1.  Accounting policies

The financial information for the six months ended 31 August 2004 and the
six months ended 31 August 2003 comprises non-statutory accounts within the
meaning of Section 240 of the Companies Act 1985.

The financial information contained in this report has been prepared on the
basis of the accounting policies set out in the Annual Report for the year ended
29 February 2004. The results for the year ended 29 February 2004 are abridged
from the full accounts for that year, which received an unqualified report from
the auditors and have been filed with the Registrar of Companies.

Although the company is no longer an investment company, as investment company
status was revoked in order to permit the distribution of capital profits, the
directors believe that the presentation of the profit and loss account and the
statement of total recognised gains and losses is enhanced by showing the
returns attributable to revenue and to capital.

2.  Movement in reserves

                                                   Capital     Profit
                                     Revaluation   Redemption  and loss
                                     reserve       reserve     Account
                                       £000         £000        £000


As at 1 March 2004                  (13,031)         117    31,926
Repurchase and cancellation
of shares                                             44      (145)
Transfer of realised loss to profit
and loss account                      2,140                 (2,140)
Net increase in value of investments     76
Retained loss for the period                                   (51)
                                    --------    ---------   -------
As at 31 August 2004                (10,815)         161    29,590
                                    ========    =========   =======

3.  Earnings per share

Earnings per ordinary share have been calculated using the weighted average
number of shares in issue during the period of 41,094,110. Net asset values per
ordinary share have been calculated using the number of shares in issue at 31
August 2004 of 40,839,670.

A full copy of the interim report will be printed and issued to shareholders.

The results for the six months ended 31 August 2004 will be filed with the
Registrar of Companies.

Copies of this announcement will be available to the public at the office of
Aberdeen Asset Management PLC, 123 St Vincent Street, Glasgow and at the
registered office of the Company, One Bow Churchyard, Cheapside, London.

By Order of the Board

MURRAY JOHNSTONE LIMITED

SECRETARY

15 October 2004                                                                                                                                                                      

a d v e r t i s e m e n t