TIDMCYS
Chrysalis VCT plc
HALF-YEARLY REPORT FOR THE SIX MONTHS ENDED 30 APRIL 2014
Recent performance summary
30 April 31 October 30 April
2014 2013 2013
pence pence pence
Net asset value per share 93.8 83.5 82.5
Cumulative dividends paid per share 44.0 40.7 39.0
Total return
(net asset value per share plus cumulative dividends) 137.8 124.2 121.5
CHAIRMAN'S STATEMENT
Introduction
Your Fund has had a very successful six months, with the focus on
realisations. As a consequence I am delighted to announce significant
dividend news.
Normally in this interim statement shareholders expect to hear of an
interim dividend and I am pleased to confirm that we will match the
1.75p paid last year. This payment will be made on 31 July 2014 to
Shareholders on the register at 4 July 2014.
More significantly, the Directors are delighted to announce a one-off
special dividend payment of 7.5p per share resulting from the sale of
our stake in Wessex Advanced Switching Products (WASP).
Chrysalis had been invested in WASP since 1999 and the eventual proceeds
of GBP8.9 million were over double WASP's carrying value and a very
healthy profit of GBP8.85 million on the original cost of just
GBP50,000 (as paid by Downing Classic VCT plc one of the VCTs which
merged to create the Chrysalis VCT).
The one-off 7.5p per share dividend payment will be made on the same
date as the regular interim dividend meaning shareholders will receive a
total of 9.25p per share in July.
We had long considered WASP a well-run and valuable component of the
Chrysalis portfolio and it illustrates the ideal relationship between
our Fund and a management team. I would like to put on record my thanks
to WASP management for their stewardship and enterprise over the years
and also make special mention of Robert Wilson, the member of our
investment team chiefly responsible for the WASP relationship and for
our role in the exit process.
Net asset value, results and dividends
At 30 April 2014, the net asset value per share ("NAV") stood at 93.8p,
an increase of 13.6p (16.3%) since the previous year end of 31 October
2013 (after adjusting for the 3.25p dividend paid on 30 April 2014).
The total return to Shareholders who invested at the launch of the
Company in 2000 (NAV plus cumulative dividends) is now 137.8p compared
to the original cost (net of income tax relief) of 80p per share.
The return on activities after taxation for the Company for the period
was GBP4.1 million, comprising a revenue return of GBP113,000 and a
capital return of GBP4.0 million.
Following the payment of the interim and special dividend on 31 July
2014, Shareholders who invested at launch will have received
distributions totalling 53.25p per share.
Venture capital portfolio
In addition to the successful realisation our investment team has also
been securing new investments and GBP3.6 million had been invested by
the end of the half year with a further GBP650,000 being invested in
May.
Perhaps the most note-worthy of the recent investments is a GBP1.96
million investment in Coolabi Group Limited, an international media
group and rights owner specialising in the creation, development and
brand management of intellectual property rights. This is the company
behind bringing back The Clangers to BBC television and it controls
several other well-known character brands.
Locale Enterprises Limited ("Locale") and London Italian Restaurants
Limited underwent a re-organisation during the year which has resulted
in an enlarged investment in Locale. The combination of the
transactions involved has resulted in an overall fall in value in the
new Locale group by GBP255,000.
Following the Board's review of the remaining investments, there were a
number of other valuation movements which resulted in a net decrease in
value of GBP268,000.
Fixed income securities
The Company invested GBP2.2 million in fixed income bonds during the
period with the portfolio being valued slightly above cost at the period
end. Unrealised gains arising in the period were GBP8,000, with a small
loss being recognised upon the redemption of one gilt.
Shares
In the past, share purchases by third parties in the market were
negligible but, as the attractions of our dividend policy and the
strength of the portfolio has become more widely known, more and more
shares are being taken up by secondary investors. We welcome these new
shareholders.
I would remind shareholders wishing to acquire more shares, or to sell,
that we recommend they contact the company brokers, Nplus1 Singer
Capital Markets, who are usually aware of other parties looking to buy
or sell.
Due to the lack of liquidity and the "close period" rules which apply to
Chrysalis as a listed company the Fund does not usually buy back shares,
although we keep this policy under constant review. The Directors feel
that, in general, our resources are better applied to the dividend
payments from which all Shareholders benefit directly, than to share
buy-backs.
Outlook
Our experience is that the economy and, in particular, the SME sector,
in which we operate, continues its slow but steady improvement. We
believe there will be good investment opportunities for your Fund and
our investment team, led by Chris Kay with his usual diligence and skill,
is in active pursuit of some opportunities which appear to have
potential. I thank them for their continued diligence and effort.
I am grateful also to my two director colleagues, Julie Baddeley and
Martin Knight, for their valuable counsel and contributions to Board
issues.
Having successfully survived the last few years and delivered strong
dividends and sound portfolio growth, we are certainly not smug, but
recent events definitely put a smile on all our faces - a smile which I
hope will be reflected on the faces of all our shareholders when they
receive their forthcoming dividend cheques.
Peter Harkness
Chairman
SUMMARY OF INVESTMENT PORTFOLIO
as at 30 April 2014
Valuation % of
movement portfolio
Cost Valuation in the period by value
GBP'000 GBP'000 GBP'000
Top ten venture capital
investments
Locale Enterprises Limited 2,638 2,283 (818) 9.3%
Precision Dental Laboratories
Limited 1,710 2,185 - 8.9%
Coolabi Group Limited 1,956 2,006 50 8.2%
MyTime Media Holdings Limited 750 1,705 107 7.0%
Triaster Limited 319 1,068 31 4.4%
Internet Fusion Limited 700 870 (10) 3.5%
Autocue Group Limited 300 747 136 3.0%
K10 (London) Limited 600 604 (56) 2.5%
VEEMEE Limited 500 500 (324) 2.0%
Ensign Communication Holdings
Limited 292 408 (30) 1.7%
9,765 12,376 (914) 50.5%
Other venture capital
investments 3,072 1,223 (172) 4.9%
Fixed income securities 2,210 2,218 8 9.0%
15,047 15,817 (1,078) 64.4%
Cash at bank and in hand 8,708 35.6%
Total investments 24,525 100.0%
All venture capital investments are unquoted unless otherwise stated
SUMMARY OF INVESTMENT MOVEMENTS
for the six months ended 30 April 2014
Additions
GBP'000
New investments
Coolabi Group Limited 1,956
Follow-on investments
K10 (London) Limited 250
Locale Enterprises Limited ** 1,300
Planet Sports Holding Limited 58
3,564
Fixed income securities
Intermediate Capital Group plc 7% 745
Lloyds Banking Group 7% 724
Provident Financial 7% 741
2,210
Total additions 5,774
Disposals
Gain/(loss)
Value at Disposal against Total
Cost 1 Nov 2013 * proceeds cost realised gain/(loss)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Venture
capital
investments
Quoted
Best of the
Best plc 81 64 70 (11) 6
Unquoted
Autocue Group
Limited 200 200 200 - -
Life's
Kitchen
Limited 10 10 10 - -
London
Italian
Restaurants
Limited ** 1,000 437 1,000 - 563
Newquay
Helicopters
(2013)
Limited 126 126 217 91 91
Triaster
Limited 98 98 98 - -
Wessex
Advanced
Switching
Products
Ltd 704 4,115 8,919 8,215 4,804
Dissolution,
liquidation
and
retention
Kids
Safetynet
Limited 637 - - (637) -
Retentions - - 63 63 63
Fixed income
securities
S&W
Investment
Funds Cash
Fund 9 9 9 - -
United
Kingdom
2.25% Gilt
07/03/2014 415 423 420 5 (3)
3,280 5,482 11,006 7,726 5,524
* Adjusted for purchases in the period where applicable
** The consideration for London Italian Restaurants Limited was partly
settled by shares in Locale Enterprises Limited
UNAUDITED INCOME STATEMENT
for the six months ended 30 April 2014
Year
ended
Six months ended Six months ended 31 Oct
30 Apr 2014 30 Apr 2013 2013
Revenue Capital Total Revenue Capital Total Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income 320 - 320 586 - 586 966
Net gains/(losses) on
investments
- realised - 5,524 5,524 - 2 2 191
- unrealised - (1,078) (1,078) - 36 36 731
320 4,446 4,766 586 38 624 1,888
Investment
management
fees (52) (154) (206) (52) (155) (207) (411)
Performance
incentive
fees - (340) (340) - (2) (2) (98)
Other expenses (127) (28) (155) (118) (20) (138) (272)
Return/(loss)
on ordinary
activities
before
taxation 141 3,924 4,065 416 (139) 277 1,107
Taxation (28) 28 - (36) 31 (5) -
Return/(loss)
attributable
to equity
shareholders 113 3,952 4,065 380 (108) 272 1,107
Return per 0.4p 13.2p 13.6p 1.3p (0.4p) 0.9p 3.7p
share
The total column within the Income Statement represents the profit and
loss account of the Company. No operations were acquired or discontinued
during the period.
A Statement of Total Recognised Gains and Losses has not been prepared
as all gains and losses are recognised in the Income Statement as noted
above.
UNAUDITED BALANCE SHEET
as at 30 April 2014
As at As at As at
30 Apr 2014 30 Apr 2013 31 Oct 2013
Note GBP'000 GBP'000 GBP'000
Fixed assets
Investments 15,817 20,250 16,603
Current assets
Debtors 3,943 371 2,031
Cash at bank and in hand 8,708 4,147 6,445
12,651 4,518 8,476
Creditors: amounts falling due
within one year (396) (84) (100)
Net current assets 12,255 4,434 8,376
Net assets 28,072 24,684 24,979
Capital and reserves
Called up share capital 7 299 299 299
Capital redemption reserve 8 89 89 89
Share premium 8 1,478 1,478 1,478
Merger reserve 8 1,464 2,031 1,981
Special reserve 8 3,397 3,384 2,320
Capital reserve - realised 8 18,186 9,395 11,051
Capital reserve - unrealised 8 2,631 7,134 7,122
Revenue reserve 8 528 874 639
Equity shareholders' funds 6 28,072 24,684 24,979
Net asset value per share 6 93.8p 82.5p 83.5p
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the six months ended 30 April 2014
As at As at As at
30 Apr 2014 30 Apr 2013 31 Oct 2013
Note GBP'000 GBP'000 GBP'000
Opening Shareholders' funds 24,979 25,168 25,168
Issue of shares - 326 326
Issue of shares under Share Realisation and Reinvestment
Programme - 6,968 6,985
Share issue costs - (74) (90)
Purchase of own shares under Share Realisation and
Reinvestment Programme - (7,003) (7,020)
Total recognised gains in the period 4,065 272 1,107
Dividends paid 5 (972) (973) (1,497)
Closing Shareholders' funds 6 28,072 24,684 24,979
UNAUDITED CASH FLOW STATEMENT
for the six months ended 30 April 2014
Six months Six months Year
ended ended ended
30 Apr 2014 30 Apr 2013 31 Oct 2013
Note GBP'000 GBP'000 GBP'000
Cash (outflow)/inflow from operating activities and
returns on investments 9 (46) 57 260
Capital expenditure
Purchase of investments (5,212) (264) (1,970)
Proceeds on disposal of investments 8,493 1,439 5,809
Net cash inflow from capital expenditure 3,281 1,175 3,839
Management of liquid resources
Redemption of current investment - 2,000 2,000
Net cash inflow from liquid resources - 2,000 2,000
Equity dividends paid (972) (973) (1,497)
Net cash inflow before financing 2,263 2,259 4,602
Financing
Proceeds from share issue - 326 326
Proceeds from shares issued under Share Realisation
and Reinvestment Programme - 6,968 6,985
Share issue costs - (45) (90)
Purchase of own shares - (48) (48)
Purchase of own shares under Share Realisation and
Reinvestment Programme - (7,003) (7,020)
Net cash inflow from financing - 198 153
Increase in cash 10 2,263 2,457 4,755
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
1. The unaudited half yearly financial results cover the six months to
30 April 2014 and have been prepared in accordance with the accounting
policies set out in the statutory accounts for the year ended 31 October
2013 which were prepared under UK Generally Accepted Accounting Practice
and in accordance with the Statement of Recommended Practice "Financial
Statements of Investment Trust Companies" revised January 2009.
2. The Company has only one class of business and derives its income
from investments made in shares, securities and bank deposits.
3. The comparative figures were in respect of the six months ended 30
April 2013 and the year ended 31 October 2013 respectively.
4. Basic and diluted return per share
Six months Six months Year
ended ended ended
30 Apr 2014 30 Apr 2013 31 Oct 2013
Return per share based on:
Net revenue return for the period
(GBP'000) 113 380 519
Capital return per share based on:
Net capital gain/(loss) for the
period (GBP'000) 3,952 (108) 588
Weighted average number of shares 29,917,025 29,810,501 29,864,316
5. Dividends paid
Year
Six months ended ended
30 Apr 2014 31 Oct 2013
Pence Revenue Capital Total Total
per share GBP'000 GBP'000 GBP'000 GBP'000
Paid in period
2013 Final 3.25 224 748 972 -
2013 Interim 1.75 - - - 524
2012 Final 3.25 - - - 973
224 748 972 1,497
6. Basic and diluted net asset value per share
Six months Six months Year
ended ended ended
30 Apr 2014 30 Apr 2013 31 Oct 2013
Net asset value per share based on:
Net assets (GBP'000) 28,072 24,684 24,979
Number of shares in issue at the
period end 29,917,025 29,917,625 29,917,025
Net asset value per share 93.8p 82.5p 83.5p
7. Called up share capital
Shares in issue GBP'000
Period ended 30 April 2014 29,917,025 299
Period ended 30 April 2013 29,917,625 299
Year ended 31 October 2013 29,917,025 299
8. Reserves
Capital
redemption Share Merger Special Capital reserve Capital reserve Revenue
reserve premium reserve reserve -realised -unrealised reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 November
2013 89 1,478 1,981 2,320 11,051 7,122 639
Expenses
capitalised - - - - (522) - -
Tax on
capital
expenses - - - - 28 - -
Gains on
investments - - - - 5,524 (1,078) -
Realisation
of
revaluations
from
previous
years - - - - 3,413 (3,413) -
Realisation
of assets
acquired
through
historic
merger - - (517) - 517 - -
Transfer
between
reserves - - - 1,077 (1,077) - -
Retained net
revenue for
the period - - - - - - 113
Dividends
paid - - - - (748) - (224)
At 30 April
2014 89 1,478 1,464 3,397 18,186 2,631 528
The special reserve is available to the Company to enable the purchase
of its own shares in the market without affecting its ability to pay
dividends, and also allows the Company to make transfers between
reserves to offset realised capital losses arising on disposals and
impairments.
Distributable reserves are calculated as follows:
Six months Six months Year
ended ended ended
30 Apr 2014 30 Apr 2013 31 Oct 2013
GBP'000 GBP'000 GBP'000
Special reserve 3,397 3,384 2,320
Capital reserve - realised 18,186 9,395 11,051
Revenue reserve 528 874 639
Merger reserve - distributable element 275 275 275
Unrealised losses - excluding unrealised unquoted
gains (478) (1,151) (88)
21,908 12,777 14,197
9. Reconciliation of return on ordinary activities before taxation to
net cash flow from operating activities
Six months Six months Year
ended ended ended
30 Apr 2014 30 Apr 2013 31 Oct 2013
GBP'000 GBP'000 GBP'000
Return on ordinary activities before
taxation 4,065 277 1,107
Gains on investments (4,446) (38) (922)
Decrease/(increase) in other debtors 40 (181) 27
Increase/(decrease) in other
creditors 295 (1) 48
Net cash (outflow)/inflow from
operating activities (46) 57 260
10. Reconciliation of net cash flow to movement in net funds
Net funds at Net funds at
1 Nov 2013 Cash flows 30 Apr 2014
GBP'000 GBP'000 GBP'000
Cash at bank and in hand 6,445 2,263 8,708
11. Risks and uncertainties
Under the Disclosure and Transparency Directive, the Board is required
in the Company's half year results to report on principal risks and
uncertainties facing the Company over the remainder of the financial
year.
The Board has concluded that the key risks facing the Company over the
remainder of the financial period are as follows:
1. investment risk associated with investing in small and immature
businesses; and
2. failure to maintain approval as a VCT.
In both cases, the Board is satisfied with the Company's approach to
these risks. As a VCT, the Company is forced to have significant
exposure to relatively immature businesses. This risk is mitigated to
some extent by holding a well-diversified portfolio.
The Company's compliance with the VCT regulations is continually
monitored by the Administration Manager, who regularly reports to the
Board on the current position. The Company also retains
PricewaterhouseCoopers to provide regular reviews and advice in this
area. The Board considers that this approach reduces the risk of a
breach of the VCT regulations to a minimal level.
12. Going concern
The Company has sufficient financial resources at the period end, and
holds a diversified portfolio of investments. As a consequence, the
Directors believe that the Company is well placed to manage its business
risks successfully despite the current uncertain economic outlook.
The Directors confirm that they are satisfied that the Company has
adequate resources to continue in business for the foreseeable future.
For this reason, they believe that the Company continues to be a going
concern and that it is appropriate to apply the going concern basis in
preparing the financial statements.
13. The Directors confirm that, to the best of their knowledge, the half
yearly financial statements have been prepared in accordance with the
"Statement: Half Yearly Financial Reports" issued by the UK Accounting
Standards Board and the half yearly financial report includes a fair
review of the information required by:
1. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
of 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
2. 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 have materially affected 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.
14. The unaudited financial statements set out herein do not constitute
statutory accounts within the meaning of Section 434 of the Companies
Act 2006 and have not been delivered to the Registrar of Companies. The
figures for the year ended 31 October 2013 have been extracted from the
financial statements for that year, which have been delivered to the
Registrar of Companies; the Independent Auditor's Report on those
financial statements was unqualified.
15. Copies of the unaudited half yearly report will be sent to
Shareholders shortly. Further copies can be obtained from the Company's
registered office and will be available for download from
www.downing.co.uk.
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Chrysalis VCT PLC via Globenewswire
HUG#1798910
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
