RNS Number:0025U
Crown Place VCT PLC
29 March 2007
29 March 2007
CROWN PLACE VCT PLC
Preliminary announcement of final results for the ten months ended 31 December
2006.
Crown Place VCT PLC ("the Company"), managed by Close Ventures Limited, today
announces the preliminary results for the ten months ended 31 December 2006. The
announcement has been approved by the Board of Directors on 29 March 2007.
Financial Highlights
Shareholder value since launch
Previous holders of shares in: Proforma (i) Murray Proforma (i) Crown Place
VCT PLC Murray VCT 2 PLC VCT PLC *
Dividends per share paid to 31 December 2006 32.25 31.91 27.18
(pence per share) (ii)
Net asset value (pence per share) as at 31 31.49 37.65 44.25
December 2006 (i)
63.74 69.56 71.43
(i) The proforma shareholder value is based on the dividends paid to 31
December 2006 per share, with a pro-rata net asset value per share based upon
the proportion of shares received by Murray VCT PLC (now renamed CP1 VCT PLC)
and Murray VCT 2 PLC (now renamed CP2 VCT PLC) shareholders at the time of the
merger.
(ii) Prior to 6 April 1999, venture capital trusts were able to add 20%
to dividends, and figures for the period until 6 April 1999 are included at the
gross equivalent rate actually paid to shareholders.
* Formerly Murray VCT 3 PLC
In addition to the dividends paid above, the Company paid a second dividend for
the period to 30 June 2007 of 1.25 pence per Crown Place VCT PLC share (0.8
pence to be paid out of revenue profits and 0.45 pence out of realised capital
gains) on 19 January 2007. The Directors have also declared a third dividend out
of realised capital gains of 0.8 pence per Crown Place VCT PLC share, subject to
approval from HM Revenue & Customs. The record date and payment date for this
dividend will be announced on the London Stock Exchange RNS Service.
For further information, please contact:
Patrick Reeve/ Emil Gigov Roddi Vaughan-Thomas
Close Ventures Limited Peregrine Communications Group
Tel: 020 7422 7830 Tel: 020 7223 1552
www.closeventures.co.uk
Chairman's statement
Overview
This is the second interim report of the Company for the sixteen month period to
30 June 2007; this report reflects the results for the ten month period to 31
December 2006. During this period the Company's net asset value increased from
43.0 pence per share to 44.3 pence per share. The Company paid a dividend of
1.25p per share in September 2006 and therefore, the total shareholder value
created in the period, including dividends paid was 2.55 pence per share. This
represents a return on net asset value of 5.9% in the ten month period.
Looking at the performance in the four months since the interim report to 31
August 2006, the Company's net asset value increased by 0.3 pence per share to
44.3 pence per share. Together with the first dividend of 1.25 pence per share
paid on 22 September 2006, shareholder value increased by 1.55p in the period,
which the Board considers to be a reasonable result.
The sustainability of the underlying investment income, and thus revenue
profits, continues to improve as older, underperforming investments have been
sold, the health of the remaining older legacy investments has improved, and new
income yielding investments have been made. This is in line with the Company's
strategy to focus on income generating investments which support the payment of
future dividends to shareholders. Following the period end, a second dividend of
1.25p was paid to shareholders on 19 January 2007, bringing the total dividend
since 28 February 2006 to 2.5 pence per share.
As reported earlier the Company's accounting year end is 30 June and the next
period end will be 30 June 2007.
Portfolio review
The value of the investment portfolio, taking into account the disposals made,
has increased in the four month period since the interim report to 31 August
2006. The AIM quoted investments appreciated well and in particular, the price
of Tanfield Group Plc performed strongly. The unquoted portfolio showed modest
overall gains. House of Dorchester Limited continued to trade well and this is
reflected in the valuation. The investment in Tower Bridge Health Clubs Limited
also appreciated, as evidenced by an independent valuation report. Against
this, we have reduced the valuation of ELE Advanced Technologies Limited, which
has experienced some trading volatility.
New investments
During the four month period from 1 September 2006 to 31 December 2006 the
Company made two new investments totalling #410,000. An investment of #210,000
was made in Helveta Limited, a company enabling sustainable forestry management
of the world's tropical hardwood resources through the provision of seamless
traceability, improved production efficiency and compliance checking across
extended supply chains (www.helveta.com). The company is trading in line with
our expectations. An investment of #200,000 was made in Xceleron Limited, which
provides services to the global drug development industry using the
nanotechnology of its accelerator mass spectrometer (www.xceleron.co.uk). Other
funds managed by Close Ventures Limited first invested in Xceleron Limited in
April 2005 and this funding round will allow the company to step up its
expansion. The company's trading performance continues to exceed original
expectations.
Following the period end Crown Place VCT PLC invested a total of #2,250,000 in
four companies. Chichester Holdings Limited is a management buy-out of a well
established drinks distribution business; West Kensington Health Clubs Limited
is a new freehold health and fitness club development in Olympia, London;
Premier Leisure Suffolk Limited is a freehold family entertainment centre in
Ipswich; Rostima Limited is an early-stage enterprise software company
providing labour management solutions to a range of industries
(www.rostima.com). The investment pipeline continues to be strong.
Disposals
During the period from 1 September to 31 December 2006, the Company sold its
investment in Heathcote Restaurants Limited, realising proceeds of #747,000.
Inhoco 3426 Limited repaid #275,000 being the first tranche of deferred
consideration following the sale of the company in 2005, while Clamonta Limited
repaid the entire outstanding consideration of #160,000. The Company also
reduced its holding in Tanfield Group Plc realising a profit of #102,000 on
proceeds of #224,000.
Dividends
The first dividend of 1.25p was paid on 22 September 2006. A second dividend of
1.25p was paid to shareholders on 19 January 2007. A third dividend of 0.8 pence
per share will, subject to HM Revenue & Customs approval, be paid in the spring
of 2007, bringing the total dividend for the period ending 30 June 2007 to 3.3
pence per share. The record date and payment date of this dividend will be
announced on the London Stock Exchange RNS service.
Chairman's statement (continued)
Buy back policy
It is the Company's policy to continue to buy back shares in the market, subject
to the overall constraint of ensuring that such purchases are in the Company's
interest, including the maintenance of sufficient resources for investment in
existing and new investee companies. This policy provides liquidity for the
shares and enables the share price discount to net asset value to be narrowed,
and thus is to the benefit of shareholders as a whole. During the period from
1 September 2006 to 31 December 2006 the Company bought back 787,757 Ordinary
shares at an average price of 39 pence per share. These shares are held in
Treasury and may be re-issued at a later date. The total number of Ordinary
Shares held in Treasury at the period end was 7,260,410, representing 8.4% of
issued share capital.
Outlook
The investment portfolio continues to perform in line with expectations. The
number of investments which provide an income return to the Company is
increasing, which bodes well for the future ability of the Company to
consistently pay dividends to shareholders. Overall, the Board continues to be
positive about the future prospects of the Company.
Patrick Crosthwaite
Chairman
29 March 2007
Consolidated Income Statement
for the ten months ended 31 December 2006
Unaudited Audited Unaudited
Ten months to 31 December Year to 28 February 2006 Ten months to 31 December 2005
2006
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Investment income and 1,644 - 1,644 1,073 - 1,073 1,119 - 1,119
deposit interest
Investment management (150) (450) (600) (160) (481) (641) (69) (207) (276)
fees
Other expenses (355) 23 (332) (351) (955) (1,306) (316) (316)
-
Non-recurring operating
expenses (4) - (4) (749) - (749) (1,562) (1,562)
Operating profit/(loss) 1,135 (427) 708 (187) (1,436) (1,623) (828) (207) (1,035)
Profit on investments - 1,158 1,158 - 2,504 2,504 - 926 926
Profit/(loss) before 1,135 731 1,866 (187) 1,068 881 (828) 719 (109)
taxation
Taxation (135) 135 - 42 - 42 - - -
Profit/(loss) for the 1,000 866 1,866 (145) 1,068 923 (828) 719 (109)
period
Basic and diluted
return/(loss) per
Ordinary share (pence)
(excluding treasury
shares) 2.32 2.03 (0.27)
The total column of this statement represents the Group's income statement,
prepared in accordance with International Financial Reporting Standards ('
IFRS'). The supplementary revenue and capital reserve columns are prepared under
guidance published by the Association of Investment Companies.
The consolidated income statement includes the results of the subsidiaries CP1
VCT PLC and CP2 VCT PLC following the acquisition.
The (loss)/profit for the ten months to 31 December 2005 was for the Company,
prior to the acquisition of CP1 VCT PLC and CP2 VCT PLC. The (loss)/profit for
the year ended 28 February 2006 includes results from the subsidiaries CP1 VCT
PLC and CP2 VCT PLC from the date of the acquisition on 13 January 2006.
Consolidated Balance Sheet
as at 31 December 2006
Unaudited Audited
31 December 2006 28 February 2006
#'000 #'000
Non-current assets
Investments 27,335 30,969
Current assets
Trade and other receivables 86 1,496
Cash and cash equivalents 8,102 4,846
8,188 6,342
Total assets 35,523 37,311
Current liabilities
Trade and other payables (381) (694)
Total assets less current liabilities 35,142 36,617
Non-current liabilities
Provision for bank guarantees (256) (1,662)
Total liabilities (637) (2,356)
Net assets 34,886 34,955
Equity attributable to equityholders
Ordinary share capital 8,610 8,610
Share premium 14,422 14,422
Capital redemption reserve 250 250
Own shares held (2,848) (1,908)
Retained earnings 14,452 13,581
Total shareholders' funds 34,886 34,955
Net asset value per Ordinary share (excluding treasury shares)
(pence) 44.3 43.0
The consolidated balance sheets as at 31 December 2006 and 28 February 2006
include the results of the subsidiaries CP1 VCT PLC and CP2 VCT PLC from the
date of the acquisition on 13 January 2006.
Company Balance Sheet
as at 31 December 2006
Unaudited Audited
31 December 2006 28 February 2006
#'000 #'000
Fixed assets
Fixed asset investments 27,335 30,969
Investment in subsidiary undertakings 17,883 17,506
45,218 48,475
Current assets
Debtors 72 806
Cash at bank 3,327 1,327
3,399 2,133
Total assets 48,617 50,608
Creditors: amounts falling due within one year (13,675) (15,066)
Total assets less current liabilities 34,942 35,542
Provision for bank guarantees (56) (587)
Total liabilities (13,731) (15,653)
Net assets 34,886 34,955
Capital and reserves
Called up share capital 8,610 8,610
Share premium 14,422 14,422
Capital redemption reserve 250 250
Own shares held (2,848) (1,908)
Retained earnings 14,452 13,581
Total shareholders' funds 34,886 34,955
Net asset value per Ordinary share (excluding
treasury shares) (pence) 44.3 43.0
The Company Balance sheet has been prepared in accordance with UK GAAP.
Consolidated Statement of Changes in Equity
for the ten months ended 31 December 2006 (unaudited)
Ordinary Capital Own
share Share Revaluation redemption shares Retained
capital premium reserve reserve held earnings Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000
As at 28 February 2006 8,610 14,422 - 250 (1,908) 13,581 34,955
Net profit for the period - - - - - 1,866 1,866
Cost of ordinary shares purchased - - - - (940) - (940)
Dividends paid in period - - - - - (995) (995)
As at 31 December 2006 8,610 14,422 - 250 (2,848) 14,452 34,886
As at 28 February 2005 (restated) 3,995 - (15,287) 250 - 28,389 17,347
Adjustment in respect of IAS 39 - - - - - (17) (17)
Reclassification of revaluation
reserve - - 15,287 - - (15,287) -
3,995 - - 250 - 13,085 17,330
Net profit for the period - - - - - (109) (109)
Dividends paid in period - - - - - (400) (400)
As at 31 December 2005 3,995 - - 250 - 12,576 16,821
As at 28 February 2005 (restated) 3,995 - (15,287) 250 - 28,389 17,347
Adjustment in respect of IAS 39 - - - - - (17) (17)
Revised adjustment in respect of
IAS 39 - - - - - (27) (27)
Reclassification of revaluation
reserve - - 15,287 - - (15,287) -
As at 1 March 2005 (restated and
adjusted) 3,995 - - 250 - 13,058 17,303
Net profit for the year - - - - - 923 923
Cost of ordinary shares purchased - - - - (1,908) - (1,908)
Shares issued in year 4,615 14,422 - - - - 19,037
Dividends paid in year - - - - - (400) (400)
As at 28 February 2006 8,610 14,422 - 250 (1,908) 13,581 34,955
Consolidated Cash Flow Statement
for the ten months to 31 December 2006
Unaudited Audited Unaudited
Ten months to Year to Ten months to
31 December 2006 28 February 2006 31 December 2005
#'000 #'000 #'000
Cash flows from operating activities
Investment income received 1,472 1,087 814
Deposit interest received 167 30 21
Secretarial fees paid (51) (91) (58)
Investment management fees paid (825) (694) (334)
Other cash payments (469) (1,324) (1,223)
Cash generated/(expended) from operations 294 (992) (780)
1,431
Tax recovered 90 78
Net cash flows from/(used in) operating 1,725 (902) (702)
activites
Cash flows from investing activities
Purchases of investments (2,507) (2,169) (1,739)
Disposals of investments 7,413 6,349 6,555
Payment to solicitors re loan guarantee (1,406) - -
Net cash flows from investing activities 3,500 4,180 4,816
Cash flows from financing activities
Equity dividends paid (995) (400) (400)
Cash acquired from subsidiaries at date - 3,791 -
of acquisition
Repurchase of Ordinary shares - (140) (140)
Purchase of Ordinary shares for treasury (974) (1,897) -
Net cash flows (used in)/from financing (1,969) 1,354 (540)
activities
Increase in cash and cash equivalents 3,256 4,632 3,574
Cash and cash equivalents at start of 4,846 214 214
period
Cash and cash equivalents at end of 8,102 4,846 3,788
period
The consolidated cash flow statements for the ten months ended 31 December 2006
and the year ended 28 February 2006 include the transactions of the subsidiaries
CP1 VCT PLC and CP2 VCT PLC from the date of the acquisition on 13 January 2006.
The cash flow statement for the ten months ended 31 December 2005 was for the
Company prior to the acquisition of CP1 VCT PLC and CP2 VCT PLC.
Notes to the announcement
1. Details about the Investment Manager
Crown Place VCT PLC is managed by Close Ventures Limited. Close Ventures Limited
is a subsidiary of Close Brothers Group plc and is authorised and regulated by
the Financial Services Authority.
2. Statutory accounts
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the periods ended 31 December 2006 or 31
December 2005, as defined in Section 240 of the Companies Act 1985. Statutory
accounts for the year ended 28 February 2006 have been delivered to the
Registrar of Companies. The Auditors have reported on those accounts; their
report was unqualified and did not contain statements under section 237(2) or
(3) of the Companies Act 1985.
Whilst the financial information included in this preliminary announcement has
been computed in accordance with International Financial Reporting Standards
(IFRSs), this announcement does not itself contain sufficient information to
comply with IFRSs. The Company expects to publish full financial statements
that comply with IFRSs within the next two weeks.
3. Accounting policies
The accounts have been prepared on the basis of the accounting policies set out
in the latest annual report for the year ended 28 February 2006.
4. Basic and diluted return per share
Return per share has been calculated on 80,268,569 Ordinary shares being the
weighted average number of shares in issue in the period (excluding Treasury
shares).
There are no convertible instruments, derivatives or contingent share agreements
in issue for the Company hence there are no dilution effects to the return per
share. The basic return per share is therefore the same as the diluted return
per share.
5. Net asset value
The net asset value per share is based on net assets of #34,886,000 and on
78,839,463 Ordinary shares being the number of Ordinary shares in issue
(excluding Treasury shares) at the period end.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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