Final Results
25 Mai 2007 - 6:42PM
UK Regulatory
Apollo VCT 1 plc
Financial Summary
for the period ended 31 January 2007
31 January 2007
Net assets �2,889,000
Net revenue loss after tax �(24,000)
Revenue loss per share* (4.22p)
Net asset value per share 93.4p
Total loss per share* (5.86p)
*based on a weighted average of 567,872 in issue in the period
Apollo VCT 1 plc ("Company" or "Fund") is a Venture Capital Trust
("VCT") and is managed by Octopus Investments Limited ("Octopus").
The Fund was launched in May 2006 together with Apollo VCT 2 plc.
Both companies have identical constitutions, boards of directors and
investment policies, and together launched an offer for subscription
comprising 25,000,000 ordinary shares each, or 50,000,000 in
aggregate (the "Offer"). The Offer closed on 5 April 2007 having
raised �17.6 million in aggregate (�16.8 million net of expenses).
The objective of the Fund is to invest in a diversified portfolio of
UK smaller companies in order to generate income and capital growth
over the long-term.
Chairman's Statement
It gives me great pleasure to present the first annual report to
shareholders in the Apollo VCT 1 plc.
Background
The Fund opened in May 2006 and had raised nearly �3.1 million by 31
January 2007. By 5 April 2007, the Fund had raised over �8.8
million. When combined with Apollo VCT 2, over �17.6m was raised in
the offer period, making it one of the largest VCTs launched last
year.
Net Asset Value ('NAV')
The NAV per share at 31 January 2007 was 93.4p. As expected in the
early stages of a VCT, expenses exceeded income leading to a decrease
in the NAV.
Investment portfolio
During the period under review, the Fund was actively seeking
investors rather than looking to make investments. As such, no
qualifying investments were held at the period end. However, Octopus
has taken an active approach to managing the cash raised through the
Offer prior to its investment in Qualifying Companies. The funds
raised have been invested by Goldman Sachs International in a range
of cash and cash equivalent assets.
Investment process
The majority of companies in which the Fund will invest will operate
in sectors where there is a high degree of predictability. Ideally,
these companies will have contractual revenues from financially sound
customers and will provide the opportunity for an exit within three
to five years.
Before investing in a company, the fund managers at Octopus will
conduct their own fundamental analysis. This will include a thorough
review and analysis of the company's business plan, meetings with
management teams, and a detailed evaluation of the company's
financial projections including scenario analysis (i.e. different
sales growth rates, margins and overheads). This analysis will focus
on the level of revenue visibility within the business and the extent
to which this revenue is contractually agreed.
Share Price and Buy-Back Facility
The Fund has a share buy-back facility, proposing to buy-back shares
at no more than a 10% discount to the prevailing NAV. This should
assist the marketability of the shares and help prevent the shares
from trading at a wide discount to NAV. The Fund's mid market share
price currently stands at 95p.
Shareholders should note that if they sell their shares within five
years of the original purchase they forfeit any income tax relief
obtained. If you need to sell your shares, please contact Octopus on
020 7710 2800.
VCT Qualifying Status
The Fund must be 70% invested in qualifying companies by 31 January
2010, and maintain this level on a day by day basis thereafter, in
order to comply with VCT regulations. The Directors will monitor the
Fund's progress towards meeting and maintaining HM Revenue and
Customs' conditions for VCT approval and have retained
PricewaterhouseCoopers LLP, one of the UK's leading firms of
accountants, to advise in this area.
Outlook
Growth in the economy has now been above the UK's long-term trend
rate for five straight quarters. All the momentum continues to come
from the services sector, which now accounts for three-quarters of
the UK economy.
Since Octopus has firmly established itself as one of the largest VCT
managers in the UK, with eight existing VCTs, we are confident that
we will be able to build a portfolio which will be well positioned to
deliver attractive returns to shareholders in the medium-term.
Andrew Boyle
Chairman
23 May 2007
Investment Manager's Review
We are delighted that the Fund raised over �8.8 million, and �17.6m
million when combined with Apollo VCT 2, by the time the fundraising
period closed on 5 April 2007. As is usual for a VCT in a
fundraising period, the Fund has yet to make its first investment.
Review of Investments
Although no qualifying investments were held at the period end, the
Fund has taken an active approach to managing the cash raised through
the Offer prior to its investment in Qualifying Companies. The funds
raised have been invested by Goldman Sachs International in a range
of cash and cash equivalent assets.
Personal Service
At Octopus, we pride ourselves not only on our team's track record
but also on our personalised customer service. We believe in open
communication and our regular updates are designed to keep you
involved and informed.
Octopus, founded in 2000, is one of the UK's fastest growing fund
management companies. The company is committed to bringing
innovative, high-return products to the broadest possible market.
Octopus currently manages more than �320 million on behalf of more
than 10,000 investors. Octopus is one of the largest VCT managers in
the UK and was recently voted 'Best VCT Provider of the Year 2007' in
the Professional Adviser Awards (voted for by financial advisers).
If you have any questions about this review, or if it would help to
speak to one of the fund managers, please do not hesitate to contact
us on 020 7710 2800.
Simon Rogerson
Chief Executive
Income Statement
for the period ended 31 January 2007
Period to 31 January 2007
Revenue Capital Total
�'000 �'000 �'000
Income 23 - 23
Investment management fees (3) (9) (12)
Other expenses (44) - (44)
Loss on ordinary activities before tax (24) (9) (33)
Tax on ordinary activities - - -
Loss on ordinary activities after tax (24) (9) (33)
Loss per share and diluted loss per
share (4.2p) (1.7p) (5.9p)
* the total column of this statement is the profit and loss
account of the Company
* all revenue and capital items in the above statement
derive from continuing operations
* the accompanying notes are an integral part of the
financial statements
* the Company has only one class of business and derives
its income from investments made in shares and securities and from
bank and money market funds.
Reconciliation of movements in shareholders' funds
Period ended 31 January
2007
�'000
Shareholders' funds at start of period -
Total losses recognised in period (33)
Issue of redeemable non-voting preference 50
shares
Redemption of redeemable non-voting (50)
preference shares
Net proceeds of share issue 2,922
Shareholders' funds at 31 January 2007 2,889
Balance Sheet
as at 31 January 2007
31 January 2007
�000's
Current assets
Investments 2,814
Debtors 106
Cash at bank 11
2,931
Creditors: amounts falling due within one year (42)
Net current assets 2,889
Net assets 2,889
Called up equity share capital 309
Share premium 2,613
Capital reserve - realised (9)
Revenue reserve (24)
Total equity shareholders' funds 2,889
Net asset value per share 93.4p
Cash flow statement
for the period ended 31 January 2007
31 January 2007
�'000
Net cash inflow from operating activities (97)
Net cash inflow from financial investment (97)
Management of liquid resources :
Increase in cash funds (2,814)
Financing :
Issue of own shares 3,076
Share issue expenses (154)
Total financing 108
Increase in cash resources 11
The above summary of results for the period ended 31 January 2007
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 auditor's report on those financial
statements under S235 of the Companies Act 1985 is unqualified and
does not contain a statement under S237 (2) or (3) of the Companies
Act 1985.
A copy of the full annual report and financial statements for the
period ended 31 January 2007 is expected to be posted to shareholders
shortly and will be available to the public at the registered office
of the company at 8 Angel Court, London, EC2R 7HP.
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Copyright � Hugin ASA 2007. All rights reserved.
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