Interim Results
28 Oktober 2005 - 6:50PM
UK Regulatory
RNS Number:3448T
Ingenious Music VCT PLC
28 October 2005
Ingenious Music VCT Plc
CHAIRMAN'S STATEMENT
Introduction
This is my first statement since Ingenious Music VCT plc first opened for
subscription and I would like to welcome all shareholders to the Company. I am
pleased to report that more than #15 million was raised in the period from 17
January 2005 to 30 June 2005, which was an excellent outcome and I would like to
thank our shareholders for their support.
Whilst this period has been largely dominated by fund raising, we are now in
advanced discussions regarding our first investment and are currently in the
process of finalising the legal documentation. Full details of our first
investment will be published once it has been completed.
Investment Objective
The investment objective of the Company is to provide shareholders with an
attractive return from investments in a portfolio of music companies that will
be engaged in the creation, development and exploitation of intellectual
property rights attaching to emerging bands and artists.
This will be achieved by maximising the opportunities for making tax-free
dividends to shareholders from both income received and from capital profits on
a sale of the investee companies or their assets.
VCT Qualifying Status
The Company is managed as a venture capital trust enabling shareholders to
benefit from both the income and capital gains tax reliefs available.
Shareholders will be aware that, in order to qualify for these tax reliefs, 70%
of net funds raised must be invested in VCT qualifying companies within three
years. Our Managers believe that the Company should meet this condition given
the number of investment opportunities being pursued.
In order to safeguard the capital available for investment in qualifying
companies, the net proceeds of the offer will be invested in cash and cash
equivalent instruments until they are required for qualifying investment
purposes. To that end, the Company has placed #1.5 million in the Ingenious
Enhanced Cash Fund, which is operated by Ingenious Asset Management Limited.
Results
As the majority of the funds were raised in the two months leading up to the end
of the reporting period, the Board is not recommending the payment of an interim
dividend.
Outlook
The current outlook for growth in recorded music revenues remains strong with
the UK continuing to play a key role in the market both in terms of new acts and
consumer spending.
Our Managers have held numerous discussions with record companies and managers
throughout this period and I am pleased to report that they continue to see a
good flow of high quality opportunities, which I intend to report on further in
my full statement to accompany the annual report and financial statements for
the year ended 31 January 2006.
P A McKenna
Chairman
28 October 2005
INCOME STATEMENT (UNAUDITED)
For the period from 17 November 2004 to 31 July 2005
#'000s
Continuing operations
Revenue -
Cost of sales -
Gross profit -
Administrative expenses (290)
-
Loss from operations (290)
Finance income 31
Loss for the period from continuing operations (before and after
taxation) attributable to equity holders (259)
Loss per ordinary share (1.72p)
BALANCE SHEET (UNAUDITED)
31 July 2005
Notes #'000s
Current assets
Trade and other receivables 13
Cash and cash equivalents 2 14,308
Total assets 14,321
Current liabilities
Trade and other payables (91)
Net assets 14,230
Equity
Share capital 3 151
Share premium account 3 14,338
Retained earnings (259)
Total equity 3 14,230
Net asset value per ordinary share 94.3p
CASH FLOW STATEMENT (UNAUDITED)
For the period from 17 November 2004 to 31 July 2005
Notes #'000s
Net cash from operating activities A (212)
Investing activities
Interest received 29
Investment income received 2
Net cash used in investing activities 31
Financing activities
Proceeds from issue of shares 15,093
Issue costs of ordinary shares (604)
Net cash used in financing activities 14,489
Net increase in cash and cash equivalents 14,308
Cash and cash equivalents at beginning of period -
-
Cash and cash equivalents at end of period 14,308
NOTES TO THE UNAUDITED CASH FLOW STATEMENT
For the period from 17 November 2004 to 31 July 2005
(A) Reconciliation of operating loss to net cash outflow from operating
activities
#'000s
Loss from operations (290)
Increase in receivables (13)
Increase in payables 91
Net cash from operating activities (212)
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the period from 17 November 2004 to 31 July 2005
1. Accounting policies
These interim financial statements, which have been prepared under the
historical cost convention and in accordance with applicable accounting
standards, have been approved by the directors and are unaudited. These
statements do not, therefore, comprise full financial statements within the
meaning of section 240 of the Companies Act 1985.
2. Cash and cash equivalents
This includes cash at bank and an initial investment of #1,500,000 into the
Ingenious Enhanced Cash Fund, which is operated by Ingenious Asset Management
Limited.
3. Equity
By 5 April 2005, 4,938,322 ordinary shares of 1p each had been issued and
allotted by the Company under the offer. Since that date, a further 10,154,959
ordinary shares have been issued and allotted under the offer bringing the total
issued ordinary share capital of the Company as at 30 June 2005 to 15,093,283
ordinary shares (including the two ordinary subscriber shares of 1p each created
upon the incorporation of the Company). All of the issued ordinary share capital
of the Company has been admitted to the Official List and to trading on the
London Stock Exchange. The offer closed on 30 June 2005.
During the period under review, 50,000 redeemable preference shares were issued
and redeemed at par.
On 26 October 2005, the High Court made an order for the confirmation of the
reduction of the Company's share premium account by #7,471,174. This amount will
be credited to the Company's capital redemption reserve.
Called-up share Share premium Income Total
capital account Statement
#'000s #'000s #'000s #'000s
As at 17 November 2004 - - - -
Shares issued
in the period 151 14,942 - 15,093
Share issue
costs - (604) - (604)
Loss for the
financial
period after
taxation - - (259) (259)
-
As at 31st
July 2005 151 14,338 (259) 14,230
This report will be sent to all registered shareholders during November 2005.
Copies for general release will be available from the Company Secretary,
Ingenious Music VCT plc, 100 Pall Mall, London SW1Y 5NQ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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