Interim Results
31 Oktober 2007 - 8:02AM
UK Regulatory
RNS Number:6643G
Arc Growth Company VCT plc
31 October 2007
FOR IMMEDIATE RELEASE 31 October 2007
Arc Growth Company VCT plc
Interim Accounts
The directors are pleased to announce the results of the Company for the six
months ended 31 August 2007.
Chairman's Statement - Interim management report
I am pleased to present the third interim report to shareholders. The activity
level of the Company has increased during the half year under review and we have
now made fourteen investments and realised three of them, Talisker Pharma,
BFresh and Traction Technology, all at above investment cost.
Fund launch
The Company was launched in February 2005 and raised further funds in the years
ended 5 April 2006 and 2007.
Net Asset Value ('NAV')
The progress of the investments the Company has made is beginning to be
reflected in the Company's performance which has seen the NAV per share rise
from 94.6p at 28 February 2006 (after reflecting the fundraising costs of 5.5%),
123.5p at 28 February 2007 and 137.5p at 31 August 2007 and which represents a
net return in the period of 14.0p per share. The increase in the past half year
has been due mainly to the sale of the remaining holding in Traction Technology
plc which generated a net profit of almost #500,000. This is excellent progress
but shareholders should not assume we can sustain this rate of growth.
Dividends
The Company's policy is to maximise dividends to its shareholders. One of the
benefits of the Company's structure is that these dividends are paid tax-free
whether they arise from income or capital gains. Following the initial 7p
dividend from the year ending 28 February 2007, we are not declaring a dividend
for the half-year to 31 August 2007. However, we shall consider proposing a
second dividend, for the year ending 28 February 2008, if the positive trend in
performance continues.
The Company's VCT qualifying status
As you may be aware, the Company must be 70% invested in qualifying companies by
the end of its third accounting period to comply with VCT regulations. The board
of the Company is conscious of this absolute rule and will monitor progress
towards this rule regularly.
Outlook
It is encouraging that the Investment Manager, Arc Fund Management Limited, is
looking at an increasing flow of investment opportunities. Whilst the board has
asked them to be conservative in their investment approach, we do want the focus
to continue to be on investment opportunities that are capable of reasonably
early realisation. The recent turbulence in world stock markets caused by the
sub-prime lending problems in the US and the Northern Rock situation in the UK
may give investors cause for concern over the immediate future of the Company's
investments. The impact of the turbulence has been felt in the AIM and PLUS
markets but given that the Company is seeking investments prior to flotation on
such markets at present, it is not anticipated that this will impact
significantly upon the Company's investment performance or the opportunities
coming its way in the short term.
Richard Hargreaves
Chairman
30 October 2007
ARC Growth Company VCT plc
Investment Portfolio at 31 August 2007
Security Cost Valuation % of Net assets
31-Aug-07
# # %
AIM listed investments
Arc Fund Management
Holdings plc 98,245 185,784 7.64
Consolidated Vending plc 164,400 93,796 3.86
Vicorp Group plc 47,279 48,224 1.99
---------- ---------- ----------
309,924 327,804 13.49
---------- ---------- ----------
Unquoted investments
B Fresh Loan Stock 54,000 40,500 1.67
Clicknow Holdings plc 150,000 150,000 6.17
Famous Retail Ltd 100,000 100,000 4.11
M2FX plc 150,000 150,000 6.17
Rainbow Rewards Inc 153,947 187,500 7.72
Sarah Arnett Limited 150,000 170,000 7.00
Smart Implant Holdings plc 150,000 256,437 10.55
SPDG Ltd 150,000 150,000 6.17
---------- ---------- ----------
1,057,947 1,204,437 49.56
---------- ---------- ----------
Total investments 1,367,871 1,532,241 63.05
==========
Net current assets 898,042 36.95
---------- ----------
Shareholders' funds 2,430,283 100.00
========== ==========
ARC Growth Company VCT plc
Income Statement
Unaudited Unaudited Audited
6 months ended 31 August 6 months ended 31 August Year ended 28 February
2007 2006 2007
----------------------- ----------------------- -----------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Bank and
other
interest 19 - 19 32 - 32 57 - 57
Investment
management
(fee) /
clawback 3 - 3 16 - 16 24 - 24
Other
expenses (40) - (40) (35) - (35) (73) - (73)
Realised
gains on
investment
disposals - 214 214 - 48 48 - 119 119
Unrealised
appreciation
in investment
values - 50 50 - 155 155 - 387 387
------ ------ ------ ------ ------ ------ ------ ------ ------
Return on
ordinary
activities
before tax (18) 264 246 13 203 216 8 506 514
Tax charge
on ordinary
activities 1 - 1 (2) - (2) (1) - (1)
------ ------ ------ ------ ------ ------ ------ ------ ------
Return on
ordinary
activities
after tax (17) 264 247 11 203 214 7 506 513
====== ====== ====== ====== ====== ====== ====== ====== ======
Return per
share 5 (0.97p) 14.95p 13.98p 0.66p 13.02p 13.68p 0.37p 30.63p 31.00p
====== ====== ====== ====== ====== ====== ====== ====== ======
ARC Growth Company VCT plc
Reconciliation of movements in shareholders' funds
Unaudited Unaudited Audited
31-Aug-07 31-Aug-06 28-Feb-07
#'000 #'000 #'000
Shareholders' funds at start
of period 2,183 1,072 1,072
Total gains and losses recognised
in period 247 214 513
Net proceeds of share issue - 490 598
------ ------ ------
Shareholders' funds at end of period 2,430 1,776 2,183
====== ====== ======
ARC Growth Company VCT plc
Balance Sheet
Unaudited Unaudited Audited
31-Aug-07 31-Aug-06 28-Feb-07
------ ------ ------ ------ ------ ------
Notes #'000 #'000 #'000 #'000 #'000 #'000
Fixed asset
investments 1,532 803 1,120
------ ------ ------
Current
assets
Debtors 28 156 186
Cash and
cash
equivalents 881 901 891
------ ------ ------
909 1,057 1,077
Creditors:
amounts
falling due
within one
year 11 84 14
------ ------ ------
Net current
assets 898 973 1,063
------ ------ ------
Net assets 2,430 1,776 2,183
====== ====== ======
Called up
equity share
capital 177 165 177
Share
premium 1,492 1,396 1,492
Revenue
reserve (9) 12 8
Capital
reserve 770 203 506
------ ------ ------
Total equity
shareholders
funds 2,430 1,776 2,183
====== ====== ======
Net asset
value per
share 5 137.49p 107.56p 123.51p
====== ====== ======
ARC Growth Company VCT plc
Cash Flow Statement
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
31 31 28
August 2007 August 2006 February 2007
------ ------ ------ ------ ------ ------
#'000 #'000 #'000 #'000 #'000 #'000
Net cash
inflow from
operating
activities
Profit on
ordinary
activities
before tax 246 216 514
Adjusted
for:
Realised gains
on investment
disposals (214) (48) (119)
Unrealised
appreciation
in investment
values (50) (155) (387)
Taxation 1 - -
------ ------ ------
Cash generated
from
operations
before changes
in working
capital (17) 13 8
(Increase)/
decrease in
debtors 158 (19) (46)
Increase/
(decrease) in
creditors (3) 9 (63)
------ ------ ------
Net cash
generated from
operating
activities 138 3 (101)
Cash flows
from investing
activities
Purchases
of (825) (588) (752)
investments
Sales proceeds
of investments 677 98 248
------ ------ ------
Net cash flow
generated from
investing
activities (148) (490) (504)
Cash flows
from financing
activities
Issue of own
shares - 518 634
Share issue
expenses - (28) (36)
------ ------ ------
Total - - 490 598
financing
------ ------ ------
------ ------ ------
Net increase/
(decrease) in
cash and cash
equivalents (10) 3 (7)
====== ====== ======
Reconciliation
of net cash
flow to
movements in
cash and cash
equivalents
Net increase/
(decrease) in
cash and cash
equivalents (10) 3 (7)
Cash and cash
equivalents at
start of
period 891 898 898
------ ------ ------
------ ------ ------
Cash and cash
equivalents
at end
of period 881 901 891
====== ====== ======
ARC Growth Company VCT plc
Notes to the accounts for the six months ended 31 August 2007
1. The unaudited interim results cover the six months to 31 August 2007 and have
been drawn up in accordance with the Accounting Standard Board's (ASB) Statement
on Half-yearly Financial Reports (July 2007) and adopting the accounting
policies set out in the statutory accounts for the year ended 28 February 2007
which were prepared under UK GAAP and in accordance with the Statement of
Recommended Practice for investment companies issued by the Association of
Investment Trust Companies in January 2003, revised December 2005.
2. The financial information set out in this report has not been audited and
does not comprise full financial statements within the meaning of Section 240 of
the Companies Act 1985. Statutory accounts for the year ended 28 February 2007,
which were unqualified, have been lodged with the Registrar of Companies. No
statutory accounts in respect of any period after 28 February 2007 have been
reported on by the Company's auditors or delivered to the Registrar of
Companies.
3. Copies of the Interim Report to Shareholders have been sent to shareholders
and are available at the Company's Registered Office: 22 Lovat Lane, London EC3R
8EB or from Woodside Corporate Services, 4th Floor, 150-152 Fenchurch Street,
London EC3M 6BB
4. During the period under review, the Company did not issue any new Ordinary
Shares of 10 pence each.
5 The revenue return per share is based on income from ordinary activities after
tax of #247,123 and on 1,767,557 ordinary shares of 10p, being the weighted
average number of shares in issue during the period. The net assets per share is
based on total net assets of #2,430,283 and 1,767,557 ordinary shares of 10p in
issue at the period end.
6. Related party transactions
Renwick Haddow , a director of the Company until 17 September 2007, is a
director and shareholder of Arc Fund Management Holdings plc ("AFMH"). Richard
Hargreaves and Kevin Morley , who are both directors of the Company, are also
shareholders of AFMH. Arc Equities Limited, a subsidiary of AFMH is also the
registered holder of 100,000 Ordinary Shares of the Company. The Company has
employed Arc Fund Management Limited ("AFM"), a subsidiary of AFMH as Investment
Manager. The management fee is payable quarterly in advance and is based on 2.5%
of the net asset value, capped at 3.6% per annum. The Company has recovered
#3,070 from AFM in the period in accordance with the management fee cap
agreement. At 31 August 2007 the Company is owed #3,070 by AFM.
There are no other related party transactions that have materially effected the
financial position or performance of the company during the period and there
have not been any changes to the related part transactions described in the
statutory accounts to 28 February 2007 that could do so.
For further information please contact:
Graham Urquhart, Director 0203 216 2000
Roland Cornish, 0207 628 3396
Chairman, Beaumont Cornish
Responsibility statement of the Directors in respect of the half-yearly
financial report
We confirm to the best of our knowledge:
* the condensed set of financial statements have been prepared in
accordance with the Statement Half-yearly financial reports issued by the UK
Accounting Standards Board;
* the interim management report includes a fair review of the information
required by:
o DTR 4.2.7R of the Disclosure and Transparency Rules, being
an indication of the important events that have occurred during the first six
months of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
o DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six months of the
current financial year and that may have materially effected the financial
position or performance of the entity during that period; and any changes in the
related party transactions described in the last annual report that could do so.
By order of the Board
Graham Urquhart FCIS
Secretary
30 October 2007
ARC GROWTH COMPANY VCT PLC
Independent review report to Arc Growth Company VCT PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements for six months ended 31 August 2007 which comprises the Income
Statement, Reconciliation of Movements in Shareholders' Funds, Balance Sheet,
Cash Flow Statement and the related explanatory notes. We have read the other
information contained in the half-yearly financial report and considered whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Services Authority
("the UK FSA"). Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work, for
this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the DTR of the UK FSA.
As disclosed in note 1, the annual financial statements of the Company are
prepared in accordance with UK Accounting Standards and applicable law (United
Kingdom Generally Accepted Accounting Practice). The condensed set of financial
statements included in this half-yearly report has been prepared in accordance
with the Statement 'Half-yearly Financial Reports' as issued by the UK
Accounting Standards Board.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily if persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Review conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 31 August 2007 is not prepared, in all material
respects, in accordance with the Statement 'Half-yearly Financial Reports' as
issued by the UK Accounting Standards Board and the DTR of the UK FSA.
Spofforths LLP
Chartered Accountants
1 Horsham Gates
North Street
Horsham
West Sussex
RH13 5PJ
30 October 2007
ARC GROWTH COMPANY VCT PLC
Directors
Richard Lawrence Hargreaves
Kevin Thomas Morley
David Andrew Lowe
Graham Kenneth Urquhart
Robert Wilson
Company Registered Number
05323692
Details of advisers
Secretary and Registered Office
Graham K Urquhart FCIS
22 Lovat Lane
London EC3R 8EB
Solicitors
Fladgate Fielder, Solicitors
25 North Row
London W1K 6DJ
Investment Manager
Arc Fund Management Limited ("AFM")
22 Lovat Lane
London EC3R 8EB
Registrars
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
West Midlands B63 3DA
VCT Monitoring
James Cowper
3 Wesley Gate
Queen's Road
Reading
Berkshire RG1 4AP
Independent Auditors
Spofforths LLP
1 Horsham Gates
North Street
Horsham
West Sussex RH13 5PJ
Sponsor, Financial Adviser and Stockbrokers
Beaumont Cornish Limited
5th Floor
10-12 Copthall Avenue
London EC2R 7DE
Bankers
Barclays Bank plc
7th Floor
United Kingdom House
180 Oxford Street
London WID 1EA
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FDFFASSWSEDS
Arc Growth Vct (LSE:AGCV)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Arc Growth Vct (LSE:AGCV)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
