Final Results
24 Dezember 2003 - 10:39AM
UK Regulatory
RNS Number:6507T
Northern AIM VCT PLC
24 December 2003
24 DECEMBER 2003
NORTHERN AIM VCT PLC
PRELIMINARY RESULTS
FOR THE YEAR ENDED 31 OCTOBER 2003
Northern AIM VCT PLC is a Venture Capital Trust (VCT) managed by Northern
Venture Managers. The trust was launched in October 2000; its portfolio of
VCT-qualifying investments is focussed on companies quoted on the Alternative
Investment Market (AiM) but also includes a number of later-stage unquoted
holdings.
Financial highlights (comparative figures as at 31 October 2002):
* Net assets #15,937,000 #12,089,000
* Net asset value per share 72.9p 55.2p
* Share price 60p 55p
* Investment income #382,000 #283,000
* Net revenue before tax #155,000 #48,000
* Revenue return per share 0.7p 0.2p
* Dividend per share 0.6p 0.25p
For further information, please contact:
Northern Venture Managers Limited
Alastair Conn, Managing Director 0191 244 6000
Norman Yarrow, Investment Director 0131 260 1000
Website: www.nvm.co.uk
Polhill Communications
Lucy Copeman/Marlene Scott 020 7655 0540
CHAIRMAN'S STATEMENT
The Chairman of Northern AIM VCT PLC, James Dawnay, included the following
points in his statement to shareholders:
In my statement to shareholders last year I reported on a disappointing
performance over the year to October 2002 and outlined the strategy which your
board intended to follow in order to initiate a recovery. Twelve months on, I
am pleased to report that the company has achieved a considerable improvement.
Net asset value
The net asset value of your company's shares as at 31 October 2003 was 72.9p, an
increase of 32.1% over the corresponding figure of 55.2p at 31 October 2002.
Over the same period the FTSE All-Share index rose by 9.6% and the FTSE AiM
index by 33.5%. Compared with the opening position (net of issue expenses) when
Northern AIM VCT was launched in October 2000, the net asset value is down by
23.3% whilst the All-Share index has fallen by 28.6% and the AiM index by 51.8%.
Investments
During the year four new Aim-quoted holdings were added to the portfolio at a
cost of #900,000 and two unquoted investments were completed at a cost of
#575,000. At 31 October 2003 the company's venture capital investments were
valued at #13.1 million, of which the AiM-quoted and unquoted elements each
represented approximately 50%. As I mentioned last year, there has been a
relative lack of VCT-qualifying new issues on AiM during the past three years
but we have been able to compensate for this by participating in Northern
Venture Managers' strong flow of later-stage unquoted venture capital
investments. As a result we have exceeded the Inland Revenue's 70% qualifying
investment test at the end of our third financial year. The venture capital
portfolio has continued to perform well and we expect further progress in the
future.
I reported last year that the quoted smaller companies portfolio managed by
Edinburgh Fund Managers was to be reduced to 10-15 core holdings with a value of
approximately #1.5 million, thus releasing additional funds for VCT-qualifying
investments. Performance has been better during the past year and at 31 October
2003, after cash withdrawals of some #1.8 million, the portfolio comprised 14
holdings with an aggregate value of #1.4 million. We will continue to keep
these investments under close review and it is possible that in due course they
will be liquidated in order to fund additional VCT-qualifying investments.
Revenue and dividend
Investment income for the year totalled #382,000, up 35% over the preceding
year. Over three quarters of this income is derived from the unquoted venture
capital portfolio where most investments are structured to provide a good
running yield as well as long-term capital growth. The revenue return before
tax increased from #48,000 to #155,000 and revenue per share from 0.2p to 0.7p.
As in previous years no interim dividend was declared. However your directors
do recommend a final dividend of 0.6p per share (last year 0.25p), to be paid on
5 March 2004 to shareholders on the register on 6 February 2004. The level of
dividend in the future will depend first on earnings, which may fluctuate from
year to year, and secondly on our managers' ability to generate realised capital
gains from the portfolio.
Northern Venture Managers
Shareholders will be aware that Edinburgh Fund Managers, the parent group of
Northern Venture Managers, was acquired by Aberdeen Asset Management in October
2003. This introduced a note of uncertainty concerning the future of NVM, so I
am very pleased to report that NVM's executives, including Alastair Conn and our
fund manager Norman Yarrow, completed an amicable management buyout of their
business from the Aberdeen group on 23 December 2003.
Prospects
Your company has benefited from a strong upturn in the financial markets over
the past nine months and the world's major economies, including the USA, are all
recovering. However the horizon is by no means clear of dark clouds and it is
too early to conclude that we are once again in a period of sustained market
growth. Given the continuing uncertainties it is encouraging that we now have a
diversified portfolio of carefully selected investments, mostly in
well-established and profitable companies, and we expect to see a further
recovery in the company's position over the next 12 months.
James Dawnay
Chairman
The financial statements for the year ended 31 October 2003 will show the
results set out below.
STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
for the year ended 31 October 2003
Year ended 31 October 2003 Year ended 31 October 2002
Revenue Capital Total Revenue Capital Total
#000 #000 #000 #000 #000 #000
Gains/(losses) on investments
Realised on disposals - (4,307) (4,307) - (2,959) (2,959)
Unrealised revaluation movements - 8,349 8,349 - (553) (553)
------ ------ ------ ------ ------ ------
- 4,042 4,042 - (3,512) (3,512)
Income 382 - 382 283 - 283
Investment management fee (65) (194) (259) (81) (243) (324)
Other expenses (162) - (162) (154) - (154)
------ ------ ------ ------ ------ ------
Return on ordinary activities
before tax 155 3,848 4,003 48 (3,755) (3,707)
Tax on ordinary activities (6) 6 - - - -
------ ------ ------ ------ ------ ------
Return on ordinary activities
after tax 149 3,854 4,003 48 (3,755) (3,707)
Dividends (131) - (131) (55) - (55)
------ ------ ------ ------ ------ ------
Transfer to/(from) reserves 18 3,854 3,872 (7) (3,755) (3,762)
------ ------ ------ ------ ------ ------
Return per share 0.7p 17.6p 18.3p 0.2p (17.1)p (16.9)p
Dividend per share 0.6p - 0.6p 0.25p - 0.25p
BALANCE SHEET
as at 31 October 2003
31 October 2003 31 October 2002
#000 #000
Venture capital investments:
AiM 6,370 4,173
Unquoted 6,706 4,492
------- -------
Total venture capital 13,076 8,665
investments
Listed smaller company 1,351 2,666
investments
------- -------
Total fixed asset investments 14,427 11,331
------- -------
Net current assets:
Debtors 67 22
Cash at bank 1,630 841
------- -------
1,697 863
Creditors (amounts falling due
within one year) (187) (105)
------- -------
Net current assets 1,510 758
------- -------
Net assets 15,937 12,089
------- -------
Capital and reserves:
Called-up equity share capital 1,093 1,096
Share premium 9,900 9,900
Capital redemption reserve 7 4
Special reserve 9,820 9,844
Capital reserve:
Realised (7,870) (3,375)
Unrealised 2,966 (5,383)
Revenue reserve 21 3
------- -------
Total equity shareholders' funds 15,937 12,089
------- -------
Net asset value per share 72.9p 55.2p
CASH FLOW STATEMENT
for the year ended 31 October 2003
Year ended Year ended
31 October 2003 31 October 2002
#000 #000 #000 #000
Cash flow statement
Net cash outflow from
operating activities (78) (203)
Taxation:
Corporation tax recovered - 4
Financial investment:
Purchase of investments (1,926) (5,222)
Sale of investments 2,872 4,574
------- -------
Net cash inflow/(outflow) from
financial investment 946 (648)
Equity dividends paid (55) (143)
------- -------
Cash inflow/(outflow) before use
of liquid resources and financing 813 (990)
Net cash inflow from
management of liquid resources - 1,190
Financing:
Share purchased for cancellation (24) (56)
------- -------
Increase in cash at bank 789 144
------- -------
Reconciliation of net revenue
before taxation to net cash flow from
operating activities
Net revenue before tax 155 48
Decrease/(increase) in debtors (45) 1
(Decrease)/increase in creditors 6 (9)
Management fees charged to (194) (243)
capital
------- -------
Net cash outflow from operating (78) (203)
activities
------- -------
Analysis movement in net funds
1 November Cash flows 31 October 2003
2002
#000 #000 #000
Cash at bank 841 789 1,630
------- ------- -------
INVESTMENT PORTFOLIO SUMMARY
as at 31 October 2003
Valuation % of net assets
#000 by valuation
Venture capital investments
(* denotes traded on AiM, others unquoted)
DMN Installations 2,709 17.0
Stainton Metal Company 1,219 7.6
T J Brent 1,002 6.3
PM Group* 708 4.4
Aero Inventory* 684 4.3
Atlantic Global* 642 4.0
Centurion Electronics* 567 3.6
Pilat Media Global* 555 3.5
Fitzhardinge* 487 3.1
Crantock Bakery 443 2.8
Horncastle Industries 438 2.8
Media Square* 434 2.7
SectorGuard* 391 2.5
Spring Grove Property Maintenance* 373 2.3
Hartest Holdings* 352 2.2
------- ------
Fifteen largest venture capital investments 11,004 69.1
Longhirst Group 350 2.2
1st Dental Laboratories* 337 2.1
Keith Prowse 280 1.8
i-documentsystems group* 240 1.5
John Laing Partnership 225 1.4
Cobra Biotechnology* 198 1.2
Warthog* 129 0.8
Fulcrum Pharma* 104 0.7
AdVal Group* 76 0.5
OMG* 53 0.3
First Artist Corporation* 46 0.3
Bank Restaurant Group* 34 0.2
------- ------
Total venture capital investments 13,076 82.1
------- ------
Listed smaller company investments
French Connection 154 1.0
Liontrust Asset Management 133 0.8
Radstone Technology 131 0.8
Forth Ports 121 0.8
Alterian 117 0.7
Edinburgh Oil & Gas 114 0.7
Johnson Service Group 113 0.7
Abbot Group 110 0.7
Others (valuation less than #100,000) 358 2.2
------- ------
Total listed smaller company investments 1,351 8.4
------- ------
Total fixed asset investments 14,427 90.5
Net current assets 1,510 9.5
------- ------
Net assets 15,937 100.0
------- ------
The above summary of results for the year ended 31 October 2003 does not
constitute statutory financial statements within the meaning of Section 240 of
the Companies Act 1985 and has not been delivered to the Registrar of Companies.
Statutory financial statements will be filed with the Registrar of Companies
in due course; the auditors' report on those financial statements under Section
235 of the Companies Act 1985 is unqualified and does not contain a statement
under Section 237(2) or (3) of the Companies Act 1985.
The proposed final dividend for the year ended 31 October 2003 will, if approved
by shareholders, be paid on 5 March 2004 to shareholders on the register at the
close of business on 6 February 2004.
Copies of the full annual report and financial statements for the year ended 31
October 2003 are expected to be posted to shareholders on 14 January 2004 and
will be available to the public at the registered office of the company at
Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FEISULSDSEDE