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Pennine AIM VCT PLC (DI3O)


Thursday 14 April, 2005


Final Results

14 April 2005



                                                     Total return                   Year             Year
                                                               to                  ended            ended
                                                       31 January             31 January       31 January
                                                             2005                   2005             2004
                                                            pence                  pence            pence

                 Net asset value per Ordinary share         72.16                  72.16            69.80
     Total (gross) distributions per Ordinary share         79.06                    2.0              2.0
                    Total return per Ordinary share        151.22

The statement to Shareholders by the Chairman, Hugh Gillespie, includes the
following comments:


In the year to 31 January 2005, investors gained confidence and world stock
markets resumed their upward trend - though of course remaining well below
values achieved at the peak.  Smaller company shares participated in the upswing
and AIM stocks showed some good gains.  Our own portfolio, which cannot reflect
the spread of the whole market, enjoyed a successful year.

Net Asset Value

The NAV of the Ordinary Shares at the year-end was 72.16p, an increase of 2.36p
per share (3.4%) over the year.  I regard this as a satisfactory performance.
The restrictions on the type and size of companies in which we can invest limit
our scope for growth in line with indices.

Qualifying investments

The Company invested £1.7 million in qualifying investments during the year.
The Company also made nine disposals and wrote off one failed investment.

Listed fixed income securities

During the year, one short-dated gilt edged stock was purchased for £727,000.
Three of the securities matured, generating proceeds of £3.9 million and
realised losses of £79,000.  The portfolio also gave rise to unrealised losses
of £20,000 as the stocks approached maturity.  These losses have been offset by
a higher running yield than would have been available from cash.  The Directors
are satisfied with the performance of this portfolio.

Results and dividend

Gross revenue for the year was £349,000 (2004: £291,000) and net revenue after
taxation was £18,000 (2004 loss: £11,000).

The Directors propose a capital distribution of previously realised gains of 2p
per share (2004: 2p per share) for the year ended 31 January 2005 to be paid on
10 June 2005 to shareholders on the register at 6 May 2005.

Share repurchase

Your Board is conscious that the Company's share price is affected by the
illiquidity of its shares in the market. This results principally from the
requirement that most shareholders must retain their shares for at least three
years in order to retain their tax benefits.  In line with accepted practice for
VCTs, the Company has a policy of purchasing its own shares.  A Special
Resolution to continue with this policy is proposed for the forthcoming AGM.

The Board used this power to acquire 88,000 shares during the year at an average
consideration of 58.7p per share.

Annual General Meeting

The ninth Annual General Meeting of the Company will be held at 159 New Bond
Street, London W1Y 9PA at 10.30am on 9 June 2005.

Changes to VCT merger regulations

In our interim statement I mentioned that new regulations now allowed VCTs to
merge or liquidate while still protecting shareholders' tax concessions and said
that we were investigating what advantages these changes might produce for our
shareholders.   Your Board is actively pursuing one such opportunity and hopes
to be able to make an announcement shortly.


There continues to be a spate of good quality companies seeking to float on AIM,
some of which qualify for VCT investment.  The Directors are in agreement with
the Investment Manager's view that 2005 will see a continuation of the current
trend of the smaller company market and that there will be further opportunities
to invest in growing companies that meet our criteria.

Hugh Gillespie

STATEMENT OF TOTAL RETURN (incorporating the revenue account)
for the year ended 31 January 2005

                                                  Year ended                                Year ended
                                               31 January 2005                           31 January 2004

                                        Revenue      Capital        Total        Revenue       Capital         Total
                                          £'000        £'000        £'000          £'000         £'000         £'000
Gains on investments
                      - realised              -           47           47              -            55            55
                      - unrealised            -          472          472              -           327           327

Income                                      349            -          349            291             -           291

                                            349          519          868            291           382           673

Investment management fees                (156)            -        (156)          (140)             -         (140)

Other expenses                            (175)            -        (175)          (162)             -         (162)

Return on ordinary activities
before tax                                   18          519          537           (11)           382           371

Tax on ordinary activities                    -            -            -              -             -             -

Return attributable to equity
shareholders                                 18          519          537           (11)           382           371

Distributions in respect of equity
shareholders                                  -        (251)        (251)              -         (253)         (253)

Transfer to/(from) reserves                  18          268          286           (11)           129           118

Return per Ordinary share of 10p
each                                       0.1p         4.1p         4.2p         (0.1p)          3.4p          3.3p

The revenue column of this statement is the profit and loss account of the

All revenue and capital items in the above statement derive from continuing

as at 31 January 2005

                                                                                  2005                   2004
                                                                     £'000       £'000      £'000       £'000
Fixed Assets
Investments                                                                      7,413                  8,616

Current assets
Debtors                                                                 41                     76
Cash at bank and in hand                                             1,908                    516
                                                                     1,949                    592

Creditors: amounts falling due within one year                       (321)                  (401)

Net current assets                                                               1,628                    191

Net assets                                                                       9,041                  8,807

Capital and reserves
Called up share capital                                                          1,253                  1,262
Capital redemption reserve                                                          77                     68
Special reserve                                                                  1,747                  1,616
Share premium account                                                            4,984                  4,984
Capital reserve - realised                                                       1,092                  1,149
Capital reserve - unrealised                                                       142                      -
Revenue reserve                                                                  (254)                  (272)

Total equity shareholders' funds                                                 9,041                  8,807

Net asset value per Ordinary share                                              72.16p                 69.80p

for the year ended 31 January 2005
                                                                                Year                Year
                                                                               ended               ended
                                                                         31 Jan 2005         31 Jan 2004
                                                                               £'000               £'000

Net cash inflow/(outflow) from operating activities                               48                (30)

Taxation                                                                           -                   -

Capital expenditure
Purchase of investments                                                      (2,801)             (7,565)
Disposal of investments                                                        4,450               2,240
Net cash inflow/(outflow) from capital expenditure                             1,649             (5,325)

Equity distributions paid                                                      (252)               (809)

Net cash inflow/(outflow) before financing                                     1,445             (6,164)

New share issue                                                                    -               3,923
Purchase of own shares                                                          (53)                (62)
Net cash (outflow)/inflow from financing                                        (53)               3,861

Increase/(decrease) in cash                                                    1,392             (2,303)

Reconciliation of net cash flow to movement in net funds

Increase/(decrease) in cash during the year                                    1,392             (2,303)

Net funds at 31 January 2004                                                     516               2,819

Net funds at 31 January 2005                                                   1,908                 516

Announcement based on draft accounts (unqualified audit report)

The financial information has been prepared on the basis of the accounting
policies set out in the Company's financial statements for the year ended 31
January 2004.

The financial information set out in the announcement does not constitute the
Company's statutory accounts for the year ended 31 January 2005.  The statutory
accounts for the year ended 31 January 2005 will be finalised on the basis of
the financial information presented by the directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
Company's Annual General Meeting.

The financial information for the year ended 31 January 2004 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies.  The auditors reported on those accounts; this report was unqualified
and did not contain a statement under section 237(2) or (3) of the Companies Act

A copy of the full annual report and financial statements for the year ended 31
January 2005 will be printed and posted to shareholders. Copies will also be
available to the public at the registered office of the Company at 69 Eccleston
Square, London SW1V 1PJ.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                       

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