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Rensburg AIM VCTPlc (RSB)

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Friday 24 May, 2013

Rensburg AIM VCTPlc

Final Results

RNS Number : 4856F
Rensburg AIM VCT Plc
24 May 2013
 

RENSBURG AIM VCT PLC

 

 

Preliminary results for the year ended 28 February 2013

 

Rensburg Aim VCT plc ("the Company"), the venture capital trust specialising in investing in companies trading on the Alternative Investment Market of the London Stock Exchange ("AIM"), today announces its preliminary results for the year to 28 February 2013.

 

FINANCIAL HIGHLIGHTS


Year ended

28 February

2013

Year ended

29 February

2012

Net assets

£17,531,000

£17,290,000

Net asset value (NAV) per share

44.49p

43.33p

Profit/(loss) on ordinary activities after taxation as per Income Statement

£3,090,000

(£206,000)

Profit/(loss) per share as per Income Statement

7.77p

(0.51p)

Dividends paid during the year

£2,384,000

£3,253,000

Dividends paid per share during the year

6.00p

8.00p

Total dividends per share paid since inception

54.25p

48.25p

Total dividends per share paid since inception and pending approval

56.75p

50.75p

 

Commenting on the results, Richard Battersby, Chairman, said:

 

"NAV at 28 February 2013 was 44.49 pence per share (2012: 43.33 pence per share), a 16.5% increase (2012: 0.6% decrease) after adjusting for the dividends of 6.00 pence per share (2012: 8.00 pence per share) paid during the year."

 

"In addition to the interim and special dividends of 1.50 and 2.00 pence per share paid in December 2012 and February 2013, we now propose, subject to shareholders' approval, to pay a final dividend of 2.50 pence (2012: 2.50 pence) per share on 31 July 2013 to shareholders on the register at the close of business on 5 July 2013."

 

"The Company is a member of the Association of Investment Companies and it is pleasing to note that, according to their independent research, as at 28 February 2013, your Company was placed third over one year and first over three, five and 10 years in terms of share price total return, for AIM VCTs operating over these periods (13 AIM VCTs over one, three years and five years and five over 10 years)."

 

"Since the beginning of the current financial year the Board has invested or committed to invest £617,000 in two AIM companies."

 

 

For further information please contact:

 

Barry Anysz

Rensburg Aim VCT plc

0113 245 4488

 

 

Chairman's Statement

 

Introduction

 

I am pleased to present my second report as Chairman of the Company. Our absolute performance during the year was pleasing, with a 16.5% increase in net asset value ('NAV') over the year to 28 February 2013. This compared well to the Total Return FTSE AIM All-Share Index which decreased by 9.5%. However, as we have stated before, measuring our performance against this index can be misleading as some 55% of AIM companies by market value included in this index are from the Resources, Financial and Property sectors, in which a Venture Capital Trust ('VCT'), generally, cannot invest.

 

With 40.5% of net assets in London Stock Exchange (LSE) main market equity investments and a mid-cap open ended investment company, our performance is also heavily influenced by companies in the Total Return FTSE 100 and Total Return FTSE All-Share indices, which increased by 12.4% and 14.1% respectively, and this partially explains our overall out-performance.

As shareholders may be aware, the Company is a member of the Association of Investment Companies (AIC) and it is pleasing to note that, according to their independent research, as at 28 February 2013, your Company was placed third over one year and first over three, five and 10 years in terms of share price total return, for AIM VCTs operating over these periods (13 AIM VCTs over one, three years and five years and five over 10 years). Your Company, according to the AIC statistics, also has the highest three year and current year average distribution yields.

 

After a long period with few initial public offers (IPO's) or placings in the secondary market on AIM of the type or quality we back, there appears be a revival of interest in raising new share capital from companies with reasonable prospects of providing a good return in the medium to long term.

 

Net Asset Value (NAV)

 

NAV at 28 February 2013 was 44.49 pence per share (2012: 43.33 pence per share), a 16.5% increase (2012: 0.6% decrease) after adjusting for the dividends of 6.00 pence per share (2012: 8.00 pence per share) paid during the year.

 

Investments

 

At the year end, the Company had 27 qualifying investments in AIM and unquoted companies which cost £7.3m and were valued at £8.2m.

 

The Company also held non qualifying investments, costing £6.7m and valued at £7.7m.  These comprised LSE main market equities (£5.9m), OEICS (£1.2m), Fixed interest securities (£0.5m) and other assets (£0.1m).

During the year, we sold £3.9m of qualifying investments and £1.7m of non qualifying investments realising net gains over historic cost of £1.3m and £0.2m respectively.

 

The Company invested £0.7m in non qualifying investments but, as explained within the strategy review, did not make any new qualifying investments during the year. However, since the beginning of the current financial year the Board has invested or committed to invest £617,000 in two AIM companies.

 

Results

 

The profit on ordinary activities before tax for the year was £3.1m (2012: loss of £0.2m). Profits per share were 7.77 pence (2012: loss per share of 0.51 pence). It is important to note that most investments are classed as "fair value through profit and loss" and therefore unrealised gains and losses are included within the income statement.

 

Dividend

 

The Board continues to pay dividends from realised profits, and also distributes some of the proceeds from the sale of our holdings in investee companies when reinvestment opportunities in qualifying investments, that meet our criteria, are not available.

 

During the year we paid out dividends of £2,384,000 (2012: £3,253,000) which equates to 6.00 pence per share (2012: 8.00 pence). In addition to the interim and special dividends of 1.50 and 2.00 pence per share paid in December 2012 and February 2013, we now propose, subject to shareholders' approval, to pay a final dividend of 2.50 pence (2012: 2.50 pence) per share on 31 July 2013 to shareholders on the register at the close of business on 5 July 2013. The total dividend in respect of the year (excluding the special dividend payment of 2.00 pence per share) is therefore 4.00 pence per share (2012: 4.00 pence). Including the current proposed final dividend we will have paid a total of 56.75 pence per share to shareholders since the inception of the VCT. Shareholders in Rensburg VCT plc, which merged with the Company in December 2005, will have received dividends of 80.83 pence per share, assuming they subscribed to the initial public offering in 1996. It is important to note that all dividends are tax free in the hands of most shareholders.

 

Based on the interim dividend of 1.50 pence per share, the proposed final dividend of 2.50 pence per share and the share price at 28 February 2013, the annual yield is 9.6% which, as stated above, is free of UK income tax. We hope this relatively high yield will help to further stimulate the secondary market in the Company's shares.

 

VCT Status

 

The Board continues to be mindful of achieving and maintaining its VCT qualifying status. We must invest at least 70% of the net funds raised in any one accounting period in qualifying investments within three years. At the year end, we had satisfied all the relevant qualifying tests and we need to ensure that we continue to do so in the future. Our qualifying percentage in accordance with ICTA 2007 (s.274) shows 82% invested. I am pleased to report that HMRC has recently reconfirmed that we fully qualify as a VCT.

                                  

Share Buy-Back

 

The Board has maintained the share buy-back policy during the year and has repurchased for cancellation 498,089 shares at a cost of £199,000, an average of 39.9 pence per share compared to the year end NAV of 44.49 pence per share. At 28 February 2013, the middle share price was 41.75 pence per share, representing a discount of 6% (29 February 2012: 12%) to NAV at that date.  As stated previously, it is important to point out that all share buy-back trades are transacted via the LSE through a stockbroker or investment adviser as the Company does not purchase shares directly from shareholders. However, the buy-back policy can only operate within the restrictions of, currently, up to 10% of the share capital annually as approved by shareholders and subject to the LSE listing rules. The 'buy-back' policy is suspended during all closed periods of the Company, which are usually immediately prior to the half-yearly and final results announcements. At the Annual General Meeting (AGM) we will be asking shareholders to renew the Board's power to purchase the Company's shares in the market for cancellation.

 

Corporate Broker

 

In December 2012 the Board appointed Panmure Gordon (UK) Limited as corporate broker to the Company.

 

New Management Agreement

 

As disclosed in last year's annual report and following shareholder approval at the 2012 Annual General Meeting, a new management agreement was signed on 28 February 2013 with Investec Wealth & Investment Limited (IW&I). The Manager has agreed that the revised charging structure should apply with effect from 1 March 2012. The main terms of the new agreement include a fixed fee of £45,000 per annum, a reduced annual fee of 1.5% of NAV (adjusted for dividends paid during the year), down from 1.8% and no performance incentive.

 

Strategy

 

During the year, the Board has continued to implement its stated investment policy of maximising the returns from current investments, whilst being open to new investment opportunities from both the existing portfolio and other AIM companies. Whilst it considers all qualifying investment opportunities from AIM and unquoted companies, the Board continues to focus on established and profitable, UK based, AIM Companies that offer potential for short or medium term appreciation. Encouragingly, the Board has recently seen some increase in the number of potential AIM investment opportunities. Having already exceeded the minimum 70% VCT qualifying holding requirement, the Board continues to invest selectively to maintain VCT status, without increasing overall portfolio risk, to any degree.

 

As stated previously, the Board feels there is considerable potential in the existing qualifying portfolio, comprising mainly AIM shares. Some of these have yet to reach maturity with several investee companies having produced excellent results during the year. Examples include Advanced Computer Software, Getech Group, Plastics Capital, Tracsis, Belvoir Lettings and Idox. We believe there are further 'undervalued' companies in the portfolio which will provide opportunities for profitable realisations over time. In the meantime, the portfolio provides income and funds readily available for new investment, where appropriate, regular dividend distributions and share buy-backs. As a proportion of these distributions are likely to come from capital this will result in a gradual erosion of NAV over time unless investment performance or new fund raisings compensate for these outflows. The Board is giving careful consideration to the prospects for additional fundraising this year.

 

Share Issues

 

Although we do not propose to issue any new shares immediately, the Board is seeking shareholder approval to do so in the future, should the opportunity arise.

 

Shareholder Communications

 

Shareholders wishing to keep in touch with our progress should visit our website at www.rensburgaimvct.co.uk. This contains publicly available information including annual accounts, half-yearly accounts, dividend payment history and also the latest NAV and share price. Those shareholders who wish to keep up to date with our performance should visit the AIC website at www.theaic.co.uk and refer to the statistics section on AIM VCTs.

 

Outlook

 

As at 30 April 2013 (the last month end prior to the publication of this announcement), the NAV of the Company was 44.52 pence per share, a fractional increase on the year end figure. The Total Return FTSE AIM All-Share Index decreased by 4.4% in the two months to 30 April 2013, whilst the Total Return FTSE 100 and Total Return FTSE All-Share Indices increased by 1.9% and 2.0%, respectively, over the same period. The majority of our investee companies are soundly financed and are, therefore, well placed to benefit from any improvement in the UK and global economies.

 

Finally, on behalf of all shareholders I would like to thank my fellow Directors, our Manager, IW&I, and our professional advisers for their continued contributions over the past year.

 

R. G. Battersby

Chairman

23 May 2013

 

 



Investment Portfolio Summary

as at 28 February 2013

 

Qualifying Investments



% of total


 

Book


net

Unrealised

 

cost*

Valuation

assets

gain/(loss)

 

£000

£000

(by value)

£000

 

Ten largest qualifying investments





Epistem Holdings plc

223 

827 

4.72

604 

Animalcare Group plc

286 

725 

4.14

439 

Idox plc

107 

709 

4.04

602 

Belvoir Lettings plc

357 

660 

3.76

303 

Advanced Computer Software plc

127 

660 

3.76

533 

Tracsis plc

180 

625 

3.57

445 

Andor Technology plc

147 

615 

3.51

468 

Surgical Innovations Group plc

263 

497 

2.84

234 

Getech Group plc

308 

433 

2.47

            125

Synectics plc

265 

412 

2.35

147 


--------

--------

--------

--------


2,263 

 

6,163 

35.16

3,900 

Other qualifying investments

5,057 

2,038 

11.62

(3,019)


--------

 

--------

--------

--------

Total qualifying investments

7,320 

8,201 

46.78

881


--------

 

--------

 

--------

 

--------

 

Non-qualifying investments

 





 





Other non-qualifying investments





Main List quoted equities

4,599 

5,947 

33.92

1,348 

Franklin Templeton Mid Cap OEIC

452 

1,156 

6.59

            704

Fixed Interest Securities

631 

520 

2.97

(111)

Non-qualifying AIM and unquoted investments

1,058 

77 

0.44

(981)

 





 

--------

--------

--------

--------

Total non-qualifying investments

6,740 

7,700 

43.92

960 

 

--------

--------

--------

--------

Total investments

14,060 

15,901 

90.70

1,841 


--------

--------

--------

--------

 

Net other assets


1,630 

9.30




--------

--------


Net assets


17,531 

100.00




--------

--------


* Historic cost of investments less write offs for permanent diminutions in value

 

 



Income Statement

for the year ended 28 February 2013

 


2013

£000

Revenue

 

2013

£000

Capital

2013

£000

Total

2012

£000

Revenue

2012

£000

Capital

2012

£000

Total

Income

726 

726 

484 

484 

Unrealised gain on fair value investments

1,635 

1,635 

598 

598 

Realised gain/(loss) on fair value investments

     484

      484

 (260)

(260)

Realised gain on available-for-sale-investments

755 

755 

84 

84 

Investment management fee

(87)

    (262)

(349)

(242)

(728)

(970)

Other expenses

(121)

(40)

(161)

(107)

(35)

(142)


--------

--------

--------

--------

--------

--------

Profit/(loss) on ordinary activities before taxation

518 

2,572

3,090

135 

(341)

(206)








Taxation


--------

 

--------

 

--------

 

--------

 

--------

 

--------

 

Profit/(loss) on ordinary activities after taxation

518 

  2,572

3,090

135 

  (341)

(206)


--------

--------

--------

--------

--------

--------

Return per ordinary share

1.30p

6.47p

7.77p

0.33p

(0.84)p

  (0.51)p


--------

--------

--------

--------

--------

--------

 

 



Statement of Total Recognised Gains and Losses

for the year ended 28 February 2013

 


2013

£000

Revenue

 

2013

£000

Capital

2013

£000

Total

2012

£000

Revenue

2012

£000

Capital

2012

£000

Total

Profit/(loss) on ordinary activities after taxation

518 

2,572 

  3,090 

135 

     (341)

  (206) 

Available-for-sale reserve movement

   (266)

  (266) 

         15

        15 


--------

--------

--------

--------

--------

--------

Total recognised gain/(loss) during the year

518 

2,306 

  2,824 

135 

     (326) 

(191) 


--------

--------

--------

--------

--------

--------

Total recognised gain/(loss) per ordinary share

    1.30p

 5.80p

7.10p

0.33p

   (0.80)p

   (0.47)p


--------

--------

--------

--------

--------

--------



Reconciliation of Movements in Shareholders' Funds

for the year ended 28 February 2013

 


2013

£000

 

2012

£000

 

Opening shareholders' funds

      17,290

21,054

Profit/(loss) on ordinary activities after taxation

        3,090

(206)

Dividends paid

(2,384)

(3,253)

Share Capital re-purchases

(199)

(320)

Available-for-sale reserve movement

(266)

15

 

--------

--------

Closing shareholders' funds

17,531

      17,290

 

--------

--------

 

 



Balance Sheet

as at 28 February 2013

 


2013

£000

 

2012

£000

 

Investments



Fair value through profit and loss account

15,019 

16,687 

Available-for-sale assets

882 

1,528 


--------

--------


15,901 

 

18,215 

 

Current assets



Debtors

119 

126 

Cash at bank and in hand

1,667 

576 


--------

--------


        1,786

           702

 

Creditors (amounts falling due within one year)

        (156)

(1,627)


--------

--------

Net current assets

      1,630

(925)

 

--------

--------

 

--------

--------

 



Net assets

17,531 

17,290 

 

--------

--------

Capital and reserves



Called-up share capital

1,971 

1,996 

Special reserve

7,035 

7,035 

Capital redemption reserve

363 

338 

Available-for-sale reserve

526 

792 

Other reserves

1,300 

1,973 

Profit and loss account

6,336 

5,156 


--------

--------

Shareholders' funds

17,531 

17,290 

 

--------

--------

Net asset value per share

44.49p

43.33p

 

--------

--------

 

 



Cash Flow Statement

for the year ended 28 February 2013

 


2013

£000

 

2012

£000

 

Net cash outflow from operating activities

(1,248)

(109)

 



Capital expenditure and financial investment



Purchases of available-for-sale assets

(5)

-  

Purchases of fair value investments

(710)

(2,029)

Proceeds from disposals of fair value investments

4,495 

4,993 

Proceeds from the disposals of available-for-sale investments

1,142 

141 





--------

--------

Net cash inflow from capital expenditure and financial investment

4,922 

3,105 

 

--------

--------

Dividends



Dividends paid

(2,384)

(3,253)




Financing



Buy-back of ordinary shares

(199)

(320)





--------

--------

Increase/(decrease) in cash

1,091

(577)


--------

--------

 

 



Notes to the Cash Flow Statement

 

 


2013

£000

 

2012

£000

 

 

1) Analysis of changes in net funds

 

Opening net cash

           576

1,153 

Net cash inflow/(outflow) for the year

        1,091

           (577)


--------

--------

Closing net cash

1,667 

576 

 

--------

--------

 

 

 

 

 

 

2) Reconciliation of operating profit/(loss) to net cash outflow from operating activities

2013

£000

 

2012

£000

 

 



Profit/(loss) on ordinary activities before tax

3,090

(206)

Decrease/(increase) in debtors

                7

(8)

(Decrease)/increase in creditors

(1,471)

527 

Unrealised gain on fair value investments

(1,635)

(598)

Realised (gain)/loss on fair value investments

(484)

260

Realised gain on available-for-sale investments

(755)

(84)


--------

--------

Net cash outflow from operating activities

(1,248)

(109)

 

--------

--------

 



Notes to the Preliminary Statement:

 

1.

Profit per share of 7.77p (2012: Loss of 0.51p) is based on the profit on ordinary activities after tax of £3,090,000 (2012: Loss of £206,000) on 39,779,435 (2012: 40,519,763) ordinary shares, being the weighted average number of shares in issue during the year.

 

Total recognised profits per share of 7.10p (2012: Loss of 0.47p) is based on total recognised profits for the year of £2,824,000 (2012: Loss of £191,000) on 39,779,435 (2012: 40,519,763) ordinary shares, being the weighted average number of shares in issue during the year.

 

The net asset value per share at 28 February 2013 is based on net assets of £17,531,000 (2012: £17,290,000) and on 39,406,378 (2012: 39,904,467) ordinary shares, being the number of ordinary shares in issue on that date.

 

2.

The preliminary figures for the year ended 28 February 2013 are based on the full accounts of the Company. These figures have not yet been filed with the Registrar of Companies. The auditors have reported on these figures and their report was unqualified and did not contain a statement under Section 498 of the Companies Act 2006.

 

3.

The comparative figures for the year ended 29 February 2012 do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for that period have been delivered to the Registrar of Companies. The audit report on those accounts was unqualified and did not contain a statement under Section 498 of the Companies Act 2006.

 

4.

Copies of the annual report and accounts will be sent to shareholders on or before 20 June 2013 and will be available from the Company's registered office at Quayside House, Canal Wharf, Leeds, LS11 5PU from this date.

 

5.

The Annual General Meeting will be held at 11:00 am on 24 July 2013 at Quayside House, Canal Wharf, Leeds, LS11 5PU.

 

 

 


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