Final Results
CHRYSALIS VCT PLC
ANNOUNCEMENT OF FINAL RESULTS
FOR THE YEAR ENDED 31 OCTOBER 2007
FINANCIAL SUMMARY
31 October 31 October
2007 2006
pence pence
Ordinary Shares
Net asset value (per share) 91.50 84.70
Cumulative distributions paid since launch (per 13.45 10.45
share)
Total return (net asset value plus cumulative 104.95 95.15
distributions paid) (per share)
'D' Shares
Net asset value (per share) 106.10 96.50
Cumulative distributions paid since launch (per 1.25 -
share)
Total return (net asset value plus cumulative 107.35 96.50
distributions paid) (per share)
'E' Shares
Net asset value (per share) 95.30 95.40
Cumulative distributions paid since launch (per 1.25 -
share)
Total return (net asset value plus cumulative 96.55 95.40
distributions paid) (per share)
The statement to shareholders by the Chairman, Robert Drummond,
includes the following comments:
I have pleasure in presenting the report and accounts for Chrysalis
VCT plc for the year ended 31 October 2007. The year under review
has seen the Company continue to perform well, particularly the
Ordinary Share pool where a number of the profitable exits from the
more mature investments have been achieved.
Net Asset Value
At 31 October 2007, the Net Asset Value ("NAV") per Ordinary Share
had risen to 91.5p, an increase of 9.8p or 12.0% over the year (after
adjusting for the dividend of 3p per share paid during the year).
The Total Return (NAV plus cumulative dividends paid since launch) to
Ordinary Shareholders since the Company's launch (when it was known
as Downing Classic VCT 3 plc) now stands at 104.95p per Ordinary
Share compared to an original investment (net of income tax relief)
of 80p per Ordinary Share.
At 31 October 2007, the Net Asset Value ("NAV") per 'D' Share had
risen to 106.1p, an increase of 10.85p or 11.4% over the year after
adjusting for the dividend of 1.25p per share paid during the year.
At 31 October 2007, the Net Asset Value ("NAV") per 'E' Shares had
risen to 95.3p, an increase of 1.15p or 1.2% over the year after
adjusting for the dividend of 1.25p per share paid during the year.
Venture capital investments
There were three major disposals during the year within the Ordinary
Share portfolio. The investment management team worked closely with
ProTx Group and Ma Potters to secure exits producing gains against
original cost totalling �3.3 million. Also, AIM-quoted Computer
Software Group plc was the subject of a takeover bid which produced a
gain against cost of �1.2 million. Total realised gains against
previous carrying values for the Ordinary Share pool over the year
amounted to �1.4 million and there were also unrealised gains of �1.5
million.
During the year 'D' Share portfolio made unrealised gains �26,000 and
realised gains of �27,000 gains. The 'E' Share portfolio made a
small unrealised loss of �4,000.
Listed fixed income securities
The Ordinary Share pool continues to hold a portfolio of fixed income
securities. At 31 October 2007, this portfolio was valued at �4.7
million. During the year this portfolio produced a small unrealised
loss of �33,000 and realised loss of �1,000.
Results and dividend
The total return on ordinary activities for the year was as follows:
Revenue Capital Total
�'000 �'000 �'000
Ordinary Share 580 2,538 3,118
'D' Share 11 48 59
'E' Share 15 (9) 6
606 2,577 3,183
Your Board is proposing to pay the following final dividends for the
year:
Ordinary Shares 3.5p per share
'D' Shares 2.0p per share
'E' Shares 2.0p per share
Subject to shareholder approval at the Annual General Meeting
("AGM"), the dividends will be paid on 20 March 2008 to Shareholders
on the register at 22 February 2008.
Share repurchase
In order to provide liquidity in the market for Shareholders wishing
to sell part of all of their holding, the Company has operated a
policy of buying in shares that become available for cancellation.
During the year the Company purchased 1,596,639 Ordinary Shares for
cancellation at an average price of 76.8p per share, which was
approximately equal to a 10% discount to the most recently published
NAV. No 'D' or 'E' Shares were purchased during the year.
The Board intends to continue with the policy of buying in shares for
cancellation and has decided to regularly review the price at which
buybacks are undertaken, although expects to buy shares at between a
10% and 20% discount to the last published NAV. A special resolution
to allow the Company to continue to repurchase shares in the market
is proposed for the forthcoming AGM.
Annual General Meeting
The next AGM of the Company will be held at Kings Scholars House, 230
Vauxhall Bridge Road, London SW1V 1AU at 11:00am on 18 March 2008.
One item of special business is proposed at the AGM in respect of the
authority to repurchase shares as described above.
Outlook
The impact of the US sub-prime lending crisis appears to have been
the catalyst for a change in the economic conditions, the extent of
which is not yet clear. With a less buoyant climate, further
profitable realisations will be more difficult to achieve,
particularly in the short-term. However, with a well-diversified and
balanced portfolio, the Board remains confident that the Company can
continue to make good progress.
INCOME STATEMENT
for the year ended 31 October 2007
Company position
Year ended 31 October 2007 Year ended 31 October
2006
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Income 1,294 - 1,294 1,149 - 1,149
Gains on investments - 2,992 2,992 - 3,755 3,755
1,294 2,992 4,286 1,149 3,755 4,904
Investment (125) (377) (502) (116) (349) (465)
management fees
Performance - (228) (228) - - -
incentive fees
Other expenses (308) - (308) (333) - (333)
Return on ordinary 861 2,387 3,248 700 3,406 4,106
activities
Share issue costs - - - (520) - (520)
Return on ordinary
activities 180 3,406 3,586
before tax 861 2,387 3,248
Tax on ordinary (255) 190 (65) (185) 111 (74)
activities
Return attributable
to equity (5) 3,517 3,512
shareholders 606 2,577 3,183
Return per Ordinary 1.7p 7.6p 9.3p (0.1p) 10.0p 9.9p
share
Return per 'D' share 2.1p 8.8p 10.9p 1.5p 0.4p 1.9p
Return per 'E' share 2.5p (1.4p) 1.1p 1.4p (0.5p) 0.9p
Split as:
Ordinary shares
Year ended 31 October Year ended 31 October 2006
2007
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Income 1,239 - 1,239 1,122 - 1,122
Gains on investments - 2,943 2,943 - 3,750 3,750
1,239 2,943 4,182 1,122 3,750 4,872
Investment (121) (363) (484) (114) (342) (456)
management fees
Performance - (228) (228) - - -
incentive fees
Other expenses (296) - (296) (328) - (328)
Return on ordinary 822 2,352 3,174 680 3,408 4,088
activities
Share issue costs - - - (520) - (520)
Return on ordinary
activities 160 3,408 3,568
before tax 822 2,352 3,174
Tax on ordinary (242) 186 (56) (181) 109 (72)
activities
Return attributable
to equity (21) 3,517 3,496
shareholders 580 2,538 3,118
'D' Ordinary shares
Year ended 31 October 2007 Year ended 31 October 2006
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Income 24 - 24 13 - 13
Gains on - 53 53 - 5 5
investments
24 53 77 13 5 18
Investment (2) (7) (9) (1) (4) (5)
management fees
Other expenses (6) - (6) (2) - (2)
Return on
ordinary 10 1 11
activities
before tax 16 46 62
Tax on ordinary (5) 2 (3) (2) 1 (1)
activities
Return
attributable to 8 2 10
equity
shareholders 11 48 59
'E' Ordinary shares
Year ended 31 October 2007 Year ended 31 October
2006
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Income 31 - 31 14 - 14
Losses on - (4) (4) - - -
investments
31 (4) 27 14 - 14
Investment (2) (7) (9) (1) (3) (4)
management fees
Other expenses (6) - (6) (3) - (3)
Return on ordinary
activities 10 (3) 7
before tax 23 (11) 12
Tax on ordinary (8) 2 (6) (2) 1 (1)
activities
Return attributable
to equity 8 (2) 6
shareholders 15 (9) 6
The revenue and capital movements in the year for the Ordinary
Shares, 'D' Ordinary Shares and 'E' Ordinary Shares relate to
continuing operations. The total column within the Income Statement
represents the profit and loss account of the Company.
A Statement of Total Recognised Gains and Losses relating to each
class of share has not been prepared as all gains and losses are
recognised in the relevant Income Statements as shown above.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 31 October 2007
Year ended Year ended
31 October 2007 31 October 2006
Ordinary 'D' 'E' Ordinary 'D' 'E'
shares shares shares Total shares shares shares Total
�'000 �'000 �'000 �'000 �'000 �'000 �'000 �'000
Opening
shareholders'
funds 29,033 517 574 30,124 26,683 - - 26,683
Adjustment
for dividends
provided - - - - - 718 - - - 718
Opening
shareholders'
funds 29,033 517 574 30,124 27,401 - - 27,401
Issue of
shares - - - - - 536 601 1,137
Share issue
costs - - - - - (29) (33) (62)
Purchase of
own shares (1,232) - - (1,232) (1,153) - - (1,153)
Total
recognised
gains for
the year 3,118 59 6 3,183 3,496 10 6 3,512
Distributions (1,021) (7) (7) (1,035) (711) - - (711)
Closing
shareholders'
funds 29,898 569 573 31,040 29,033 517 574 30,124
BALANCE SHEET
at 31 October 2007
Year ended Year ended
31 October 2007 31 October 2006
Ordinary 'D' 'E' Ordinary 'D' 'E'
shares shares shares Total shares shares shares Total
�'000 �'000 �'000 �'000 �'000 �'000 �'000 �'000
Fixed assets
Investments 26,068 410 246 26,724 24,621 155 - 24,776
Current
assets
Debtors 278 5 5 288 180 3 - 183
Cash at bank 3,772 158 328 4,258 4,481 361 576 5,418
and in hand
4,050 163 333 4,546 4,661 364 576 5,601
Creditors:
amounts (249) (2) (2) (253)
falling due
within one
year (220) (4) (6) (230)
Net current 3,830 159 327 4,316 4,412 362 574 5,348
assets
Net assets 29,898 569 573 31,040 29,033 517 574 30,124
Capital and
reserves
Called up 327 5 6 338 343 5 6 354
share capital
Capital 49 - - 49 33 - - 33
redemption
reserve
Share premium - 502 562 1,064 - 502 562 1,064
Merger 8,694 - - 8,694 8,694 - - 8,694
reserve
Special 7,318 - - 7,318 9,436 - - 9,436
reserve
Capital 9,858 19 (7) 9,870 5,787 (3) (2) 5,782
reserve
- -realised
Capital 2,966 31 (4) 2,993 4,634 5 - 4,639
reserve -
unrealised
Revenue 686 12 16 714 106 8 8 122
reserve
Equity 29,898 569 573 31,040 29,033 517 574 30,124
shareholder's
funds
Net asset 91.5p 106.1p 95.3p 84.7p 96.5p 95.4p
value per
share
CASH FLOW STATEMENT
for year ended 31 October 2007
Year ended Year ended
31 October 2007 31 October 2006
Ordinary 'D' 'E' Ordinary 'D' 'E'
shares shares shares Total shares shares shares Total
�'000 �'000 �'000 �'000 �'000 �'000 �'000 �'000
Net cash inflow
from operating
activities 145 9 10 164 337 4 8 349
Taxation (1) (1) (73)
(71) - - - -
Capital
expenditure
Purchase of
investments (7,323) (278) (250) (7,851) (3,471) (200) - (3,671)
Sale of
investments 8,821 74 - 8,895 4,287 50 - 4,337
Net cash inflow/
(outflow) from
capital
expenditure 1,498 (204) (250) 1,044 816 (150) - 666
Acquisitions
Purchase of
subsidiary
undertakings - - - - (18) - - (18)
Equity
distributions
paid (1,021) (7) (7) (1,035) (711) - - (711)
Net cash
(outflow)/inflow
before
financing 551 (203) (248) 100 424 (146) 8 286
-
Financing -
Shares issued in
period - - - - - 536 601 1,137
Share issue
costs (6) - - (6) (465) (29) (33) (527)
Shares
repurchased (1,254) - - (1,254) (1,120) - - (1,120)
(1,260) - - (1,260) (1,585) 507 568 (510)
(Decrease)/
increase in cash (709) (203) (248) (1,160) (1,161) 361 576 (224)
NOTES ON THE ACCOUNTS
for the year ended 31 October 2007
1. Accounting policies
Basis of accounting
The Company has prepared its financial statements under UK Generally
Accepted Accounting Practice ("UK GAAP") and in accordance with the
Statement of Recommended Practice "Financial Statements of Investment
Trust Companies" revised December 2005 ("SORP").
The financial statements are prepared under the historical cost
convention as modified by the revaluation of certain financial
instruments and on the basis that it is not appropriate to prepare
consolidated accounts.
Presentation of Income Statement
In order to better reflect the activities of venture capital trust
and in accordance with guidance issued by the Association of
Investment Companies ("AIC"), supplementary information which
analyses the Income Statement between items of a revenue and capital
nature has been presented alongside the Income Statement. The net
revenue is the measure the directors believe appropriate in assessing
the Company's compliance with certain requirements set out in Part 6
of the Income Tax Act 2007.
Investments
All investments are designated as "fair value through profit or loss"
assets and are initially measured at cost, equivalent to their fair
value. Thereafter the investments are measured at subsequent
reporting dates at fair value.
Listed fixed income investments and investments quoted on AIM are
measured using bid prices with illiquidity discounts applied where
deemed appropriate in accordance with the International Private
Equity and Venture Capital Valuation Guidelines.
In respect of unquoted instruments, fair value is established by
using International Private Equity and Venture Capital Valuation
Guidelines. Where no reliable fair value can be estimated for such
unquoted equity investments they are carried at cost, subject to any
provision for impairment. Where an investee company has gone into
receivership or liquidation the investment, although not physically
disposed of, is treated as being realised.
Gains and losses arising from changes in fair value are included in
the Income Statement for the year as a capital item and transaction
costs on acquisition or disposal of the investment expensed.
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.
Income
Dividend income from investments is recognised when the shareholders'
rights to receive payment has been established, normally the ex
dividend date.
Interest income is accrued on a timely basis, by reference to the
principal outstanding and at the effective interest rate applicable
and only where there is reasonable certainty of collection.
Expenses
All expenses are accounted for on an accruals basis. In respect of
the analysis between revenue and capital items presented within the
Income Statement, all expenses have been presented as revenue items
except as follows:
* Expenses which are incidental to the disposal of an
investment are deducted from the disposal proceeds of the
investment.
* Expenses are split and presented partly as capital items
where a connection with the maintenance or enhancement of the value
of the investments held can be demonstrated. The Company has
adopted the policy of allocating investment managers fees, 75% to
the Capital Account and 25% to the Revenue Account as permitted by
the SORP. The allocation is in line with the Board's expectation
of long term returns from the Company's investments in the form of
capital gains and income respectively.
* Performance incentive fees arising from the disposal of
investments are deducted from the Capital Account.
Taxation
The tax effects on different items in the Income Statement are
allocated between capital and revenue on the same basis as the
particular item to which they relate using the Company's effective
rate of tax for the accounting period.
Due to the Company's status as a Venture Capital Trust and the
continued intention to meet the conditions required to comply with
Part 6 of the Income Tax Act 2007, no provision for taxation is
required in respect of any realised or unrealised appreciation of the
Company's investments which arises.
Deferred taxation is provided in full on timing differences that
result in an obligation at the balance sheet date to pay more tax, or
a right to pay less tax, at a future date, at rates expected to apply
when they crystallise based on current tax rates and law. Timing
differences arise from the inclusion of items of income and
expenditure in taxation computations in periods different from those
in which they are included in the accounts.
2. Income
2007 2006
�'000 �'000
Income from investments
Loan stock interest 702 625
Dividend income 75 111
Listed fixed income security interest 247 246
1,024 982
Other income 5 -
Deposit interest 265 167
1,294 1,149
3. Return per share
Ordinary shares 'D' Shares 'E' Shares
Return per share based on:
Net revenue after taxation 580 11 15
for the financial year
(�'000)
Weighted average number or 33,574,306 536,072 601,376
shares in issue
Capital return per share
based on:
Net capital gain/(loss) for 2,538 48 (9)
the financial year (�'000)
Weighted average number or 33,574,306 536,072 601,376
shares in issue
4. Net asset value per ordinary share
2007 2006
Shares in issue Net Asset Value Net Asset Value
2007 2006 Pence �'000 Pence �'000
per per
share share
Ordinary
shares 32,669,120 34,265,759 91.5p 29,898 84.7p 29,033
'D'
Ordinary
shares 536,072 536,072 106.1p 569 96.5p 517
'E'
Ordinary
shares 601,376 601,376 95.3p 573 95.4p 574
31,040 30,124
5. Reconciliation of return on ordinary activities before
taxation to net cash flow from operating activities
2007 2006
�'000 �'000
Return on ordinary activities before taxation 3,248 3,586
Gains on investments (2,992) (3,755)
Share issue costs - 520
Provision against bad debts - 8
Costs relating to prior year merger - 21
Decrease in accrued income and prepayments (106) (39)
Increase in other creditors and accruals 14 8
Net cash inflow from operating activities 164 349
6. Analysis of changes in cash during the year
2007 2006
�'000 �'000
Beginning of year 5,418 5,642
Net cash outflow (1,160) (224)
End of year 4,258 5,418
Announcement based on audited accounts
The financial information set out in the announcement does not
constitute the Company's statutory financial statements in accordance
with section 240 Companies Act 1985 for the year ended 31 October
2007. The statutory accounts for the period ended 31 October 2006
have been delivered to the Registrar of Companies and received an
Independent Auditors report which was unqualified and did not contain
any emphasis of matter nor statements under S237(2) or (3) of the
Companies Act 1985. The statutory accounts for the year ended 31
October 2007, which were approved by the Board of Directors on 29
January 2008, will be delivered to the Registrar of Companies
following the Company's Annual General Meeting. The Independent
Auditor's Report on those financial statements was unqualified and
did not contain any emphasis of matter nor statements under s237 (2)
and (3) of the Companies Act 1985.
A copy of the full annual report and financial statements for the
year ended 31 October 2007 will be printed and posted to
shareholders. Copies will also be available to the public at the
registered office of the Company at Kings Scholars House, 230
Vauxhall Bridge Road, London, SW1V 1AU.
- ---END OF MESSAGE---
Chrysalis Vct (LSE:CYS)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Chrysalis Vct (LSE:CYS)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
