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PUMA VCT PLC (PUA)

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Friday 30 October, 2009

PUMA VCT PLC

Half-yearly report





                            Puma VCT plc
                           Interim Report
               For the six months ended 31 August 2009

Chairman's Statement

Highlights

*         Undiluted net asset value per share of 102.71p. This
  represents a 7.6% increase from year-end.
*         Fully diluted net asset value per share of 101.69p. This
  represents a 6.5% increase from year-end.
*         Significant gains made on the AiM listed portfolio
  reflecting a recovering market.

Introduction

During the  six months  to 31  August  2009 the  Company has  seen  a
significant recovery  of  its holdings  both  in the  qualifying  and
non-qualifying portfolios  as the  AiM  quoted stocks  recovered.  In
addition to the increase in value of the existing listed holdings the
Investment  Manager  has   been  able  to   take  advantage  of   new
opportunities presented as the markets have shown signs of  recovery.
The Company's net asset value grew by 7.6% during the period,  before
accrued performance fees.

The gain  in value  is primarily  attributable to  the Company's  AiM
quoted stocks, however some of these continue to trade at a  discount
to their respective net asset values and the Investment Manager hopes
that the Company  will continue to  see a recovery  in the values  of
these holdings in the second half.

Qualifying investments

The six months to 31 August 2009 have seen progress for the Company's
qualifying investments.

In May  2009 Cadbury  House  Limited, the  leisure centre  and  hotel
complex near Bristol,  was granted  planning permission  to build  an
extension  to  the  hotel  containing  a  further  48  bedrooms.  The
construction is expected to commence in the next few months.

As announced  at the  year  end, the  Company's holding  in  Clifford
Contracting Limited  of £1,513,000  has been  sold in  the period  to
Telford Homes plc in exchange for new shares and secured loan  notes.
This investment continues to be  qualifying for VCT purposes and  the
exit  has  been  targeted  to  coincide  with  the  expected  wind-up
timetable of the VCT.

Bond Contracting Limited (in which the Company has invested £1.5m) is
in the final stages of constructing a 141 bed Hotel on the  outskirts
of Winchester. It is  on target to complete  the construction in  the
current year and be operational in early 2010.

At 31 August 2009 the listed holdings within the Company's qualifying
portfolio were valued  at £1,319,000. This  represents an  unrealised
gain of £477,000 over the value of £842,000 as at the year end.

Non-qualifying investments

The Investment  Manager  has  taken advantage  of  new  opportunities
presented as the markets  have shown signs  of recovery, focusing  on
corporate bonds and  other bond  funds. This  strategy has  generated
£58,000 in bond interest during the period, together with profits  of
£36,000 from disposals of bonds.

Just subsequent  to the  period end  the Company  fully realised  its
fixed rate loan stock holding in Lakan investments. The loan was  put
in place in November 2007 and has generated an IRR of over 21% during
its life.

The VCT also exited from Puma Brandenburg (in which it had originally
invested into at £1) as a result of its takeover at 60p per share  by
Shore Capital Group plc. The 60p exit price represented a premium  of
approximately 40 per  cent. to  the closing  price on  10 June  2009,
being the  last  practicable business  day  before the  takeover  was
announced.

During the period VCT  and VCT II invested  in £500,000 secured  loan
notes of INVU  plc of  which £296,000 was  for this  VCT. These  loan
notes bear  an attractive  coupon  and the  term coincides  with  the
expected VCT wind-up strategy.

Results and dividends

As set-out in the accounts for  the period ended 28 February 2009,  a
dividend of 2.75p per ordinary  share was declared during the  period
and paid  on  16 September  2009.   Your  Board is  not  proposing  a
dividend in  relation  to  this interim  period  but  reiterates  the
intention to distribute a large element of the available income  and,
if appropriate, realised capital gains in due course.

Principal risks and uncertainties

Although the UK economy has shown some limited signs of a recovery so
far this year, economic risks  remain.  The consequences of this  for
our investment portfolio  represent one  of the  principal risks  and
uncertainties for the Company in the second half of the year.

Outlook

Despite the strong performance in the period we also remain  cautious
of the risk  of a  further downturn  in stock  markets. Our  existing
private equity investments are largely  in the form on secured  loans
and limit  the  Company's risk  exposure.  The quoted  holdings  have
performed well  during  the period  but  the values  of  these  still
reflect the prospects for a  long period of economic uncertainty  and
reduced  liquidity  in  small  cap  stocks.  However,  liquidity  has
improved in the larger more successful holdings.

Realisations and end of VCT life

We are  now  focused on  improving  the liquidity  of  the  portfolio
wherever possible whilst maintaining an appropriate risk/return.  The
full realisations of  Lakan Investments and  Puma Brandenburg Ltd  in
the period go someway towards this.  The new investments in INVU  plc
and Telford  Homes  plc  have been  structured  consistent  with  the
objective of achieving an orderly winding up of the VCT assets at the
end of its life.

As we draw near to the end of  its life we are reviewing how we  wind
up the Fund and manage its  assets in line with this requirement.  To
meet VCT rules, the process of formal winding up cannot begin until 1
June 2010, 5 years on from  the closing of the two VCTs'  flotations.
However if significant capital is  realised before this point, it  is
the intention of the Board to distribute it.

Recent Net Asset Value

The fully diluted net asset value  per share as at 30 September  2009
was 99.46p after the payment of the 2.75p dividend mentioned above.

I look forward to reporting the progress of the Company with the next
Annual Report for the year ended 28 February 2010.

Sir Aubrey Brocklebank Bt
Chairman
30 October 2009


Income Statement (unaudited)
For the six months ended 31 August 2009



                    Six months ended      Six months ended        Year ended
                    31 August 2009        31 August 2008          28 February 2009

                    Revenue Capital Total Revenue Capital Total   Revenue Capital  Total
               Note £'000   £'000   £'000 £'000   £'000   £'000   £'000   £'000    £'000

Gains/(losses)
on investments          -       731   731     -     (578)   (578)     -    (1,412) (1,412)
Income                  228     -     228     282     -       282     584      -       584

                        228     731   959     282   (578)   (296)     584  (1,412)   (828)


Investment
management
fees           4         13      40    53      36     108     144      63      189     252
Performance
fees                     21     102   123      31   (131)   (100)    (75)    (112)   (187)
Other expenses           34     -      34      61     -        61     114      -       114

                         68     142   210     128    (23)     105     102       77     179

Return /(loss)
on ordinary
activities
before
taxation                160     589   749     154   (555)   (401)     482  (1,489) (1,007)
Tax on return
on ordinary
activities             (33)      33   -      (29)      29     -      (72)       72     -

Return /(loss)
on ordinary
activities
after tax
attributable
to
 equity
shareholders            127     622   749     125   (526)   (401)     410  (1,417) (1,007)


Return /(loss)
per  Ordinary
Share (pence)  2      1.05p  5.15 p 6.20p   1.03p (4.35)p (3.32)p 3.39p   (11.72)p (8.33)p



The revenue column of  this statement is the  profit and loss of  the
Company.  All revenue and capital items in the above statement derive
from  continuing  operations.    No  operations   were  acquired   or
discontinued in the period.
Balance Sheet (unaudited)
As at 31 August 2009

                                      As at       As at         As at
                                  31 August   31 August   28 February
                           Note        2009        2008          2009
                                      £'000       £'000         £'000
Fixed Assets
Investments                7         11,662      11,638         9,368


Current Assets
Debtors                                 231         233           134
Cash at bank and in hand                585         465         2,113

                                        816         698         2,247
Creditors - amounts
falling due within one
year                                   (62)        (99)          (71)

Net Current Assets                      754         599         2,176

Total Assets less Current
Liabilities                          12,416      12,237        11,544

Creditors - amounts
falling due after more
than one year
(including convertible
debt)                                   (1)         (1)           (1)

Net Assets                           12,415      12,236        11,543

Capital and Reserves
Called up share capital                 121         121           121
Capital reserve - realised            1,004         891         1,016
Capital reserve -
unrealised                          (1,126)       (744)       (1,760)
Other reserve                           123          87             -
Revenue reserve                      12,293      11,881        12,166

Equity Shareholders' Funds           12,415      12,236        11,543


Net Asset Value per
Ordinary Share                3     102.71p     101.21p        95.49p

Diluted Net Asset Value
per Ordinary Share            3     101.69p     100.49p        95.49p





Cash Flow Statement (unaudited)
For the six months ended 31 August 2009


                                               Six months
                                    Six months      ended  Year ended
                                         ended  31 August 28 February
                                31 August 2009       2008        2009
                                         £'000      £'000       £'000

Operating activities
Investment income received                 220        221         625
Investment management fees paid          (127)      (145)       (264)
Cash paid to directors                    (11)       (11)        (22)
Foreign exchange loss on cash              -          (2)         -
Other cash payments                       (51)       (63)        (92)

Net cash inflow from operating
activities                                  31        -           247

Equity dividend paid                                (181)       (181)

Capital expenditure and
financial investment
Purchase of investments                (3,973)      (269)       (562)
Proceeds from sale of                                           2,236
investments                              2,410        500
Net realised gain/(loss) on
forward foreign exchange
contracts                                    4       (62)       (104)

Net cash (outflow)/inflow from
capital expenditure and
financial investment                   (1,559)        169       1,570

(Decrease)/increase in cash            (1,528)       (12)       1,636

Reconciliation of net cash flow
to movement in net funds
Decrease/increase in cash for                                   1,636
the period                             (1,528)       (12)
Net cash at start of the period          2,113        477         477

Net funds at the period end                585        465       2,113










Reconciliation of Movements in Shareholders' Funds (unaudited)
For the six months ended 31 August 2009




                   Called
                       up  Capital    Capital
                    share reserve-   reserve-   Other Revenue
                  capital realised unrealised reserve reserve   Total
                    £'000    £'000      £'000   £'000   £'000   £'000

                            Six months ended 31 August 2009

Balance at 1
March 2009            121    1,016    (1,760)     -    12,166  11,543
Total recognised
(losses)/gains
for the period        -       (12)        634     123     127     872
Balance at 31
August 2009           121    1,004    (1,126)     123  12,293  12,415

                            Six months ended 31 August 2008

Balance at 1
March 2008            121    1,092      (419)     187  11,937  12,918
Total recognised
(losses)/gains
for the period        -      (201)      (325)   (100)     125   (501)
Equity dividend
paid                  -        -          -       -     (181)   (181)
Balance at 31
August 2008           121      891      (744)      87  11,881  12,236

                          For the year ended 28 February 2009

Balance at 1
March 2008            121    1,092      (419)     187  11,937  12,918
Total recognised
(losses)/gains
for the period        -       (76)    (1,341)   (187)     410 (1,194)
Equity dividend
paid                  -        -          -       -     (181)   (181)
Balance at 28
February 2009         121    1,016    (1,760)     -    12,166  11,543



Notes to the Interim Report
For the six months ended 31 August 2009

1.             Accounting Policies

The financial statements have been prepared under the historical cost
convention, modified to include the revaluation of fixed asset
investments, and in accordance with applicable Accounting Standards
and with the Statement of Recommended Practice, "Financial Statements
of Investment Trust Companies" ("SORP") December 2005. Although this
SORP principally applies to Investment Trusts, many of the
characteristics of Investment Trusts are shared by VCTs therefore the
Company will continue to follow the SORP until investment company
status is revoked.

2.             Return per Ordinary Share

The total return per share of 6.20p (31 August 2008 - loss of 3.32p)
is based on the profit for the period of £749,000 (31 August 2008 -
loss of £401,000) and the weighted average number of shares in issue
as at 31 August 2009 of 12,087,700 (31 August 2008 - 12,087,700).

3.             Net asset value per share


+-------------------------------------------------------------------+
|                 |             |             | Net Asset Value per |
|                 |             |             |        share        |
|                 |-------------+-------------+---------------------|
|                 | Net assets  |  Shares in  |  Basic   | Diluted  |
| Period          |             |    issue    |          |          |
|-----------------+-------------+-------------+----------+----------|
| 31 August 2009  | £12,415,000 |  12,087,700 | 102.71p  | 101.69p  |
|-----------------+-------------+-------------+----------+----------|
| 28 February     | £11,543,000 | 12,087,700  |  95.49p  |  95.49p  |
| 2009            |             |             |          |          |
|-----------------+-------------+-------------+----------+----------|
| 31 August 2008  | £12,236,000 | 12,087,700  | 101.21p  | 100.49p  |
+-------------------------------------------------------------------+


4.             Management fees

The Company pays the Investment Manager an annual management fee of
2% of the Company's net assets.  The fee is payable quarterly in
arrears.  The annual management fee is allocated 75% to capital and
25% to revenue.

5.             Related Party Transactions

Related party transactions are described the 2009 Annual Report and
Accounts on page 38. There were no other related party transactions
during the six months ended 31 August 2009.

6.             The financial information for the six months ended 31
August 2009 and 31 August 2008 has not been audited and does not
comprise full financial statements within the meaning of Section 240
of the Companies Act 1985. The financial information for the year
ended 28 February 2009 has been extracted from the company's full
financial statements for the period then ended that have been
delivered to the Registrar of Companies, and on which the report of
the Auditors was unqualified. The interim financial statements have
been prepared on the same basis as the annual financial statements.

Notes to the Interim Report continued
For the six months ended 31 August 2009

7.             Investment portfolio summary


                                                                                   Valuation
                                                                                   as a % of
                                                            Cost Valuation  Gain/        Net
As at 31 August 2009                                       £'000     £'000 (loss)     Assets

Qualifying investment - unquoted
Albemarle Contracting Ltd                                  1,000     1,000   -        8%
Bond Contracting
Ltd                                                        1,532     1,532   -        12%
Cadbury House Hotel & Country Club plc                     2,110     2,110   -        17%
Stocklight Limited                                           610       610   -        5%
Telford Homes Ltd                                          1,513     1,513   -        12%

Qualifying investment - quoted
@UK plc                                                      415         1  (414)     0%
Alterian plc                                                  19        24    5       0%
Clarity Commerce Solutions plc                               142       105  (37)      1%
I-Design Group plc                                            59        11  (48)      0%
INVU plc                                                     119         9  (110)     0%
Mount Engineering plc                                        223       165  (58)      1%
Patsystems plc                                               311       520   209      4%
Sport Media plc                                              305        19  (286)     0%
Universe Group plc                                           174        69  (105)     1%
Vertu Motors plc                                             593       396  (197)     3%
Total qualifying investments                               9,125     8,084 (1,041)    65%

Non-qualifying investments - unquoted

INVU plc                                                     296       296   -        2%
Lakan Investments Limited                                     85       104    19      1%

Non-qualifying investments - quoted
Anglo American Bonds                                         237       240    3       2%
Artemis Strategic Bonds                                      149       181    32      1%
Blackrock UK Emerging Cos Hedge Fund Limited                 552       719   167      6%
Brevan Howard Macro                                          249       269    20      2%
Cazenove Strategic Bond Fund                                 297       338    41      3%
Cazenove UK Dynamic Absolute UK                              250       265    15      2%
Jupiter Strategic Bonds                                      297       372    75      3%
Puma Brandenburg Limited                                     578       329  (249)     3%
Rio Tinto Finance Plc Bonds                                  155       156    1       1%
The Hotel Corporation plc                                    413       309  (104)     2%
Total non-qualifying investments                           3,558     3,578    20      29%

Total  investments                                        12,683    11,662 (1,021)    94%
Balance of portfolio                                         753       753            6%

Net Assets                                                13,436    12,415 (1,021)   100%

---END OF MESSAGE---




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