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Ventus 3 VCT PLC (VEN3)

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Tuesday 30 October, 2007

Ventus 3 VCT PLC

Half Yearly Financial Report

Ventus 3 VCT PLC
30 October 2007


Ventus 3 VCT plc

Half-yearly Financial Report

For the six month period ended 31 August 2007

Registered No: 5667211

Ventus 3 VCT plc (the 'Company') presents its half yearly financial report for
the period ended 31st August 2007 as required by the UK Listing Authority's
Disclosure and Transparency Rule 4.2.

A full version of the report will be available on the Company's website at
www.ventusvct.com.

A copy of the above document is to be submitted to the UK Listing Authority, and
will shortly be available for inspection at the UK Listing Authority's Document
Viewing Facility, which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS

Directors and advisers
Directors
D Pinckney (Chairman)
A Moore
P Thomas
C Wood

Secretary and registered office
Capita Company Secretarial Services Limited
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU

Auditor
Baker Tilly UK Audit LLP
Chartered Accountants
2 Bloomsbury Street
London
WC1B 3ST

Bankers
HSBC Bank Plc
27-32 Poultry
London
EC2P 2BX

Investment Manager
Climate Change Capital Limited
3 More London Riverside
London
SE1 2AQ

Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU

Broker
Brewin Dolphin Securities Limited
34 Lisbon Street
Leeds
LS1 4LX

VCT status advisers
PricewaterhouseCoopers LLP
1 Embankment Place
London
WC2N 6RH

Solicitors
Berwin Leighton Paisner LLP
Adelaide House
London Bridge
London
EC4R 9HA



Chairman's statement

I am pleased to present the half-yearly financial report and accounts of Ventus
3 VCT plc (the 'Company') for the six month period ended 31 August 2007.

Net asset value and results

At the period end, the net asset value per share of the company stood at 94.4
pence. Revenue attributable to shareholders for the period was £157,707 or 1.41
pence per share. The capital loss attributable to shareholders for the period
was £93,336 or 0.84 pence per share, resulting in a total return to shareholders
for the period of £64,371 or 0.57 pence per share. The main source of revenue
was interest earned on mezzanine loan stock, UK Government Treasury Bills and
cash deposits.

The Company declared and paid an annual dividend of 1.50 pence per share for the
period to 28 February 2007. This was paid as an interim dividend of 0.75 pence
per share on 15 February 2007 and a final dividend of 0.75 pence per share on 6
August 2007. Dividends to shareholders are accounted for in the period in which
the Company is liable to pay them, rather than in the period in respect of which
they are declared.

The Company has declared a further dividend for the half year to 31 August 2007
of 1.00 pence per share which will be paid to shareholders on 16 January 2008.

Principal risks

Under the UK Listing Authority's Disclosure and Transparency Rules, the
Directors are required to identify those material risks to which the Company is
exposed and take appropriate steps to mitigate those risks. Described below are
those risks which the Directors consider to be material and the steps that the
Directors have taken to identify and mitigate those risks:

•         Failure to meet the investment requirements for compliance with HM
Revenue and Customs VCT regulations

The Board mitigates this risk by regularly reviewing investment management
activity and by obtaining pre-approval from HM Revenue and Customs for each
investment.

•         Inadequate control environment at service providers

The Board mitigates this risk by only appointing service providers of a high
standing under agreements that set out their responsibilities and by obtaining
assurances from them that all exceptions have been reported to the Board.

  • Non-compliance with UK Listing Authority Rules, Companies Act Legislation,
    HM Revenue and Customs VCT regulations and other applicable regulations

The Board mitigates this risk by employing external advisers fully conversant
with applicable statutory and regulatory requirements who report regularly to
the Board on the Company's compliance.

VCT qualifying status

The Company retains PricewaterhouseCoopers LLP to review its compliance with HM
Revenue and Customs VCT regulations. The most recent review was undertaken prior
to the publication of the last Annual Report. The Directors are satisfied that
the Company has continued to fulfil the conditions for maintaining VCT status.

Responsibility statement

The Directors confirm that to the best of their knowledge:

(a)      the half-yearly financial statements have been prepared in accordance
with the Statement 'Half-yearly Financial Reports' issued by the UK Accounting
Standards Board and give a true and fair view of the assets, liabilities,
financial position and profit of the Company as required by the Disclosure and
Transparency Rules ('DTR') 4.2.4R;

(b)      the report includes a fair review of the information required by DTR
4.2.7R; and

(c)      the report includes a fair review of the information required by DTR
4.2.8R.

Investments

The Company's Investment Manager, Climate Change Capital Limited, continues to
identify and negotiate potential investment opportunities. The investments made
and the dividends paid constitute the important events of the period.

As at the date of this report, the Company has made investments in two companies
totalling £408,822. The Company has also contractually committed to invest and/
or holds exclusivity agreements with three companies representing potential
further investments of £1.16 million.

The Investment Manager's report on page 4 provides details of the investments
made as at 31 August 2007 and the amounts committed or under exclusivity
agreements as at the date of this report. All investments will be structured so
as to be treated as qualifying holdings for the purposes of VCT regulations
unless stated otherwise.

David Pinckney
Chairman
30 October 2007


Investment Manager's Report

Summary of investments

As at the date of this report, the Company has made investments in two companies
totalling £408,822. The Company also holds exclusivity agreements with two
companies representing potential further investments of £1.16 million.

The following table shows the investments made as at 31 August 2007, the
investments made since the end of the period and the total amount committed or
under exclusivity agreements as at the date of this report. All investments to
date have been structured so as to be treated as qualifying holdings for the
purposes of VCT regulations unless stated otherwise.


                                                                                              Invested,
                                                                                       Committed and/or
                                                                                                  Under
                                                       Investment         Investment        Exclusivity
                                                            as at              as at              as at
                                                   31 August 2007    30 October 2007    30 October 2007
Company Name         Details                                    £                  £                  £

Craig Wind           10 megawatt                          348,822            348,822            348,822
Farm Limited         wind farm
A7 Lochhead Limited  6 megawatt                                 -                  -            600,000
                     wind farm
Achairn Energy       6 megawatt                            60,000             60,000            600,000
Limited              wind farm
Olgrinmore Limited   4 megawatt wind farm                       -                  -            24,000*
                     (pre-consent)
                                                   ______________     ______________     ______________
Total                                                     408,822            408,822          1,572,822
                                                   --------------     --------------     --------------
                                                                                 * see commentary below

Craig Wind Farm Limited

The Company has completed its investment in Craig Wind Farm Limited, a company
operating a 10 megawatt wind farm in the Scottish Borders. The Company has
invested a total of £348,822 in Craig Wind Farm Limited by way of a £169,000
mezzanine loan facility and £179,822 invested in ordinary shares. The Company
owns 6.25% of the issued ordinary shares in Craig Wind Farm Limited.

The wind farm became operational in October 2007 after a period of delay caused
by the grid operating company. The first payment of mezzanine loan interest by
Craig Wind Farm Limited is expected in March 2008, subject to satisfactory
operational performance. Craig Wind Farm Limited is expected to commence paying
dividends to shareholders in September 2009.

Achairn Energy Limited

The Company is finalising contract negotiations to invest up to £600,000 in
Achairn Energy Limited, a company developing a 6 megawatt wind farm in
Caithness, Scotland. This site has full planning consent and has been provided
with an offer for a grid connection. The Company has already invested £60,000 in
ordinary shares to facilitate the payment of preliminary site development costs.
We are continuing to work with the developer and its consultants to secure the
contracts necessary to commence construction. The wind farm is expected to
become operational in the second half of 2008.

A7 Energy Lochhead

The Company has entered into a long term exclusivity agreement with A7 Energy
Limited in respect of the 6 megawatt Lochhead wind farm development in
Lanarkshire, Scotland. A7 Energy Limited has secured planning consent for this
wind farm, as well as an offer for connection to the grid. We are continuing to
work with the developer and its consultants to secure the contracts necessary to
commence construction. The wind farm is expected to start generating early in
2009. This project is expected to require an investment of approximately
£600,000 from the Company.

Olgrinmore Limited

The Company has committed to make an initial investment of £24,000 in Olgrinmore
Limited, a company developing a 4 megawatt wind farm in Caithness, Scotland.
Olgrinmore Limited is in the process of seeking planning permission for a two
turbine scheme from the local authority and expects to lodge an application
early in 2008. The investment will be used to contribute towards the planning
application costs. Olgrinmore Limited has accepted an offer for connection to
the grid and has secured the land for the development under an option. If
planning approval is granted the Company holds an option to make a further
investment to contribute towards the construction costs on pre-agreed terms with
the other shareholders. Initially, the investment would not be a qualifying
holding in accordance with HM Revenue & Customs VCT regulations. If the Company
contributes further capital upon grant of planning it will be possible to make
the existing investment and any future investments qualifying.

Investment pipeline & market overview

We are actively assessing investment opportunities in over 30 individual
companies developing in excess of 400 megawatts of generating capacity. Whilst
the main investment strategy to date has been to seek investments in planning
approved onshore wind developments, the Company's investment strategy also
includes pursuing opportunities with companies developing non-wind technologies
such as landfill gas and small scale hydro-electric schemes, companies owning
existing operational assets and companies seeking planning permission for new
schemes.

As at the date of this report the British Wind Energy Association (''BWEA'')
database showed the following information about all UK onshore wind projects
which are under construction, have planning consent or have been submitted for
planning consent and are awaiting a decision:

                                             Consented but not    Awaiting planning
                                                     yet under            decisions
                       Under construction         construction                                     Total
                                                                                                   
Number of projects                     30                  103                  221                  354
Total megawatts                       822                1,942                7,873               10,637


In September 2007 the BWEA published their report 'Countdown to meeting the 10%
UK renewable electricity target by 2010' which showed that renewable energy
currently generates just over 4.5% of the UK's total electricity supply
requirement. The report states that the rate of installation of new renewable
generation capacity is behind target and needs to more than double by 2010 to
meet the 10% target. The BWEA also predicts that onshore wind needs to account
for almost half of this 10% target given limiting factors associated with other
technologies. For onshore wind this equates to a target of approximately 6,000
megawatts of total installed capacity. The UK currently has just over 2,000
megawatts of onshore wind capacity installed and operational.

Even if all projects under construction in the UK and those that are consented
but not yet under construction are completed and added to the total existing
operational capacity, there would be a shortfall, in relation to the 2010
target, of almost 1,300 megawatts which would need to be met by new projects.
The main barrier to the target being achieved is the increasing time taken to
acquire planning consents, both locally and through central government planning
authorities.

The following table summarises information published by the BWEA about the
number of onshore wind projects in the planning system across the UK:

                                                                                Northern
                                                                                 Ireland
                              England          Scotland             Wales                            Total

Number of projects                 64                98                19             40               221
Total megawatts                 1,183             5,300               347          1,043             7,873

The rate of new approvals coming out of the planning system over the last two
years has restricted the number of new investment opportunities for the Company
in the consented onshore wind sector.

As a key element of the Company's investment strategy, and alongside continuing
to progress investment opportunities in onshore wind, we are working to identify
and negotiate investments in developments using other renewable energy
technologies such as landfill gas, small scale hydro and biomass.  We are also
assessing a number of opportunities in the pre-planning sector, where there is
the potential to make earlier stage investments in companies developing projects
in return for an exclusive option to invest construction funding upon grant of
planning consent at a later stage.

On the basis of an assessment of the potential investments in the pipeline we
have advised the Directors that we are satisfied that sufficient projects are
available to fully invest the funds in accordance with the investment strategy
and the time period required to satisfy HM Revenue and Customs requirements in
respect of maintaining the Company's VCT status.

Climate Change Capital Limited
Investment Manager
30 October 2007


Income statement
for the six month period ended 31 August 2007 (unaudited)

                                              Six months                        Period                  
                                                   ended                         ended                   Period ended
                                               31 August                     31 August                    28 February   
                                                    2007                          2006                           2007
                                              (unaudited)                   (unaudited)                      (audited)
                             Revenue Capital       Total   Revenue Capital       Total   Revenue Capital        Total
                       Notes    £000    £000        £000      £000    £000        £000      £000    £000         £000

Income                           290       -         290       187       -         187       453       -          453
                              ------  ------      ------    ------  ------      ------    ------  ------       ------
                                 290       -         290       187       -         187       453       -          453
                              ------  ------      ------    ------  ------      ------    ------  ------       ------

Expenditure
Management fees          2        39     117         156        32      96         128        71     214          285
Other expenses                    54       -          54        53       -          53       106       -          106
                              ------  ------      ------    ------  ------      ------    ------  ------       ------
                                  93     117         210        85      96         181       177     214          391
                              ------  ------      ------    ------  ------      ------    ------  ------       ------

Return on ordinary 
activities                       
before taxation                  197   (117)          80       102    (96)           6       276   (214)           62
Tax on ordinary 
activities               3      (40)      24        (16)       (3)       -         (3)      (54)      41         (13)
                              ------  ------      ------    ------  ------      ------    ------  ------       ------
Return attributable 
to equity                        
shareholders                     157    (93)          64        99    (96)           3       222   (173)           49
                              ------  ------      ------    ------  ------      ------    ------  ------       ------

Basic and diluted 
return per               
ordinary share (p)       4      1.41  (0.84)        0.57      1.03  (1.00)        0.03      2.13  (1.65)         0.47


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

The Company has only one class of business and derives its income from
investments made.

The total columns of this statement are the profit and loss accounts of the
Company for the respective periods. The supplementary revenue and capital
columns have been prepared under guidance published by the Association of
Investment Companies.

There were no recognised gains and losses for the period other than those shown
above.


Balance Sheet
as at 31 August 2007 (unaudited)
                                                         31 August 2007     31 August 2006   28 February 2007
                                                            (unaudited)        (unaudited)          (audited)
                                               Note                £000               £000               £000
Fixed assets
Investments                                                         409                169                169
                                                              ---------          ---------          ---------
                                                                    409                169                169
                                                              ---------          ---------          ---------
Current assets
Debtors                                                              32                 10                 15
Short term investments in UK treasury bills                      10,042             10,321             10,149
Cash at bank                                                        114                127                267
                                                              ---------          ---------          ---------
                                                                 10,188             10,458             10,431
Creditors: amounts falling due within one year                     (56)               (28)               (39)
                                                              ---------          ---------          ---------
Net current assets                                               10,132             10,430             10,392
                                                              ---------          ---------          ---------
Net assets                                                       10,541             10,599             10,561
                                                              ---------          ---------          ---------

Share Capital & Reserves
Ordinary share capital                                            2,793              2,793              2,793
Special reserve                                                   7,803              7,803              7,803
Capital reserve - realised                                        (290)               (96)              (173)
Revenue reserve                                                     235                 99                138
                                                              ---------          ---------          ---------
Shareholders' funds                                              10,541             10,599             10,561
                                                              ---------          ---------          ---------

Basic and diluted net asset value per ordinary   
share (p)                                        5                 94.4               94.9               94.5



Cash flow statement
for the six month period ended 31 August 2007 (unaudited)

                                       Six months ended                Period ended                Period ended
                                         31 August 2007              31 August 2006            28 February 2007
                                            (unaudited)                 (unaudited)                   (audited)
                                                   £000                        £000                        £000

Net cash (outflow)/inflow
from operating activities
and returns on investments                        (206)                          21                          39

Capital expenditure
Purchase of venture capital                       
investments                                       (240)                       (169)                       (169)

Equity dividends paid                              (84)                           -                        (84)

Management of liquid resources
Proceeds from maturity of                       
UK treasury bills                                15,349                           -                           -
Purchase of UK treasury bills                  (14,972)                    (10,321)                    (10,115)
                                            -----------                 -----------                 -----------
Net cash outflow before                           
financing                                         (153)                    (10,469)                    (10,329)
                                            -----------                 -----------                 -----------

Financing
Shares issued                                         -                      11,173                      11,173
Issue costs                                           -                       (577)                       (577)
                                            -----------                 -----------                 -----------
Net cash inflow from financing                        -                      10,596                      10,596
                                            -----------                 -----------                 -----------
(Decrease)/increase in cash                       (153)                         127                         267
                                            -----------                 -----------                 -----------

Net cash (outflow)/inflow
from operating activities and 
returns on investments
Return on ordinary                                   
activities before taxation                           80                           6                          62
Increase in debtors                                (17)                        (10)                        (15)
Increase in creditors                                 1                          25                          26
Net unrealised gains on                           
short term investments                            (270)                           -                        (34)
                                            -----------                 -----------                 -----------
Net cash (outflow)/inflow                         
from operating activities
and returns on investments                        (206)                          21                          39
                                            -----------                 -----------                 -----------

Analysis of net funds
At beginning of period                              267                           -                           -
Net cash flows for the period                     (153)                         127                         267
                                            -----------                 -----------                 -----------
At end of period                                    114                         127                         267
                                            -----------                 -----------                 -----------


Reconciliation of movements in shareholders' funds
for the six month period ended 31 August 2007 (unaudited)


                                        Six months ended              Period ended              Period ended
                                          31 August 2007            31 August 2006          28 February 2007
                                             (unaudited)               (unaudited)                 (audited)
                                                    £000                      £000                      £000

Equity shareholders' funds                        
at beginning of period                            10,561                         -                         -
Return on ordinary                                    
activities after tax                                  64                         3                        49
Dividends paid in the period                        (84)                         -                      (84)
Net proceeds of share issues                           -                    10,596                    10,596
                                            ------------                 ---------                 ---------
Equity shareholders' funds                        
at end of period                                  10,541                    10,599                    10,561
                                            ------------                 ---------                 ---------

Notes to the financial statements
for the six month period ended 31 August 2007 (unaudited)


1.       The unaudited half-yearly financial statements for the six months ended
31 August 2007 do not constitute statutory accounts within the meaning of
Section 240 of the Companies Act and such statements have not been delivered to
the Registrar of Companies. The half-yearly financial statements, which have not
been audited, have been prepared in accordance with UK Generally Accepted
Accounting Practice (UKGAAP) and under the same accounting policies as the
financial statements for the period ended 28 February 2007. The half-yearly
financial statements have been prepared using the guidance set out in the
Statement of Recommended Practice (SORP) 'Financial Statements of Investment
Trust Companies' (revised in December 2005), to the extent that the guidance is
consistent with UKGAAP.  The financial statements for the period ended 28
February 2007 have been filed with the Registrar of Companies and received an
unqualified audit report.

The half-yearly results are for the six month period from 1 March 2007 to 31
August 2007 and the comparative results are for the period from 5 January 2006
(incorporation date) to 31 August 2006 and 28 February 2007 respectively.

All investments are designated as 'fair value through profit or loss' assets and
are initially measured at cost. Thereafter the investments are measured at
subsequent reporting dates at fair value.

      Investments in unquoted companies are valued in accordance with
International Private Equity and Venture Capital Valuation Guidelines. Under
these guidelines, the investments are valued at fair value at the reporting
date, except in situations where fair value cannot be measured reliably. In such
situations, the investments are reported at the carrying value at the previous
reporting date, unless there is evidence that an investment has since then been
impaired.

      When an investee company has gone into receivership or liquidation, the
investment, although physically not disposed of, is treated as being realised.
It is not the Company's policy to exercise either significant or controlling
influence over investee companies. Therefore the results of these companies are
not incorporated into the revenue account, except to the extent of any income
accrued.

      The majority of monies held pending investment are invested in financial
instruments with same day or two-day access and as such are treated as current
investments. These are valued at middle market prices as at 31 August 2007.
Under FRS 26 investments should be valued at bid market prices. There is no
material difference between the valuation at bid prices and the valuation at
middle market prices.

2.       The Company pays the Investment Manager an annual management fee equal
to 2.5% of the Company's net assets. The fee is exclusive of VAT and is payable
quarterly in advance. The annual management fee is allocated 75% to capital and
25% to revenue.

3.       The half-yearly tax charge of £16,461 is based on the likely effective
tax rate for the year. This has been estimated at 20% and applied to the return
on ordinary activities for the half-year.

4.       The basic and diluted return per share of 0.57 pence (period ended 31
August 2006: 0.03 pence; period ended 28 February 2007: 0.47 pence) is based on
the profit for the period to 31 August 2007 of £64,371 (period ended 31 August
2006: £3,040; period ended 28 February 2007: £49,448) and the weighted average
number of shares in issue during the period of 11,172,954 (period ended 31
August 2006: 9,686,224; period ended 28 February 2007: 10,444,247).

5.       The basic and diluted net asset value per share of 94.4 pence (period
ended 31 August 2006: 94.9 pence; period ended 28 February 2007: 94.5 pence) is
based on net assets of £10,542,194 (period ended 31 August 2006: £10,599,009;
period ended 28 February 2007: £10,561,620) and the number of shares in issue as
at 31 August 2007 of 11,172,954 (31 August 2006: 11,172,954; 28 February 2007:
11,172,954).

6.       The half-yearly financial statements were approved by the Directors on
30 October 2007.

7.       An interim dividend of 1.00 pence per share has been declared for the
period ending 31 August 2007 which will be paid to shareholders on 16 January
2008. A final dividend for the period ended 28 February 2007 of 0.75 pence per
share was paid in the period ended 31 August 2007.

8.       Copies of this half-yearly report have been sent to shareholders and
are available from the Company Secretary, c/o Capita Company Secretarial
Services Limited, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.


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