RNS Number:1851Q
Close Technology & General VCT PLC
25 September 2003
25 September 2003
CLOSE TECHNOLOGY & GENERAL VCT PLC
INTERIM RESULTS
Close Technology & General VCT PLC ("the Company"), which offers investors the
opportunity to participate in a balanced portfolio of technology and
non-technology businesses, today announces interim results for the six months to
30 June 2003.
Financial Highlights:
* NAV per Ordinary Share of 83.0 pence (2002: 89.9 pence)
* Interim dividend of 0.5 pence per Ordinary Share (2002: 1.0 pence)
Dr Neil Cross, Chairman, commented: "The six months to 30 June 2003 have seen a
marked improvement in the Company's net asset value. This has been partly
market-driven, with the portfolio of international quoted and UK AIM investments
showing a strong recovery as markets have risen. In addition, the unquoted
portfolio has risen in value, due principally to the excellent performance of
Active Hotels, which moved strongly into profit during the period".
For further information, please contact:
Patrick Reeve/ Ole Bettum Justin Griffiths/ John West
Close Venture Management Tavistock Communications
Tel: 020 7426 4000 Tel: 020 7920 3150
Notes to Editors:
1) Close Technology & General VCT PLC is managed by Close Venture Management.
2) Close Venture Management is a subsidiary of Close Brothers Investment
Limited and is regulated by the FSA.
3) Unaudited interim reports for the period will be sent to shareholders
shortly.
4) The financial information set out in the announcement does not constitute
the Company's statutory accounts for the six months ended 30 June 2003 or
2002. The financial information for the year ended 31 December 2002 is
derived from the statutory accounts delivered to the Registrar of Companies.
The auditors reported on those accounts; their report was unqualified and
did not contain a statement under s237 (2) or (3) of the Companies Act 1985.
Chairman's Statement
Introduction
Close Technology & General VCT has raised #14.4 million from private investors
since its launch in January 2001 and offers investors the opportunity to
participate in a balanced portfolio of technology and non-technology businesses.
It is intended that the Company's investment portfolio will be split
approximately as follows:
* 50% to be invested in technology companies, of which:
* 20% will be invested in quoted investments in international technology
stocks; and
* 30% will be invested in unquoted UK technology-related companies.
* 50% to be invested in unquoted investments in UK non-technology companies.
Investment progress
The six months to 30 June 2003 have seen a marked improvement in the Company's
net asset value. This has been partly market-driven, with the portfolio of
international quoted and UK AIM investments showing a strong recovery as markets
have risen. In addition, the unquoted portfolio has risen in value, due
principally to the excellent performance of Active Hotels, which moved strongly
into profit during the period.
At 30 June 2003, the Company's unaudited net asset value stood at 83.0 pence per
share compared to 74.8 pence six months earlier. At 31 August 2003 the unaudited
net asset value had risen further, due to the continued strong performance of
the quoted portfolio.
The revenue return before taxation for the six months to 30 June 2003 amounted
to #101,762 compared to #211,019 for the first half of last year, resulting in a
reduction of the interim dividend from 1 penny to 0.5 pence per share. The
principal reason for this decrease was the decision taken to provide against the
income from two investments, Leisure Links and Q Gardens, where the equity in
each case has already been fully provided for. The company does, however, remain
committed to providing shareholders with a regular and predictable dividend
yield, and it is hoped that this decline in the dividend will only be short term
in nature.
During the period, the principal investments made have been in support of
existing investee companies with a view to funding further growth. The Company's
third anniversary since launch is 31 December 2003, and we are now within 1% of
achieving the 70% level of qualifying investments required by that date.
Results and dividend
As at 30 June 2003 the net asset value of the Company was #11.89 million (2002:
#12.89million), equivalent to 83.0 pence per share (2002: 89.9p per share). Net
income after taxation was #82,000 for the period enabling the board to declare a
net interim dividend of 0.5 pence per share (2002: 1.0p per share). Dividends
will be payable on 24 October 2003 to those shareholders registered on 3 October
2003.
Dr N E Cross
Chairman 25 September
2003
Portfolio Summary
The following is a summary of the qualifying investments at 30 June 2003.
Technology Investments
Invested to Valuation
date at at
cost 30 June
2003
#'000 #'000
Active Hotels Ltd
Active Hotels has developed internet based
software to act as an intermediary to the
hotel industry enabling hotels to post their
room availability on-line in real time
through booking sites. 500 1,200
Advanced Medical Solutions PLC (AIM Listed)
Advanced Medical Solutions designs, develops
and manufactures novel high performance
polymers (both natural and synthetic) for
the healthcare market. 300 318
AIT Group plc (AIM Listed)
AIT Group is a provider of IT solutions
principally for the retail financial sector. 240 103
Cassium Technologies Limited
Cassium is an IT services company which
provides web service solutions using
Microsoft.NET technology. The company has
developed a suite of proprietary products
under the Active Web and Active Forms Names. 500 250
Deltex Medical Group Plc (AIM Listed)
Deltex develops, manufactures and markets
the 'CardioQ', an oesophageal device which
monitors the heart's response to medical
treatment. 266 175
Intelligent Environment Group PLC (AIM Listed)
The company's activity is the provision of
integrated e-business software and services
to allow Credit Cards and Wealth Management
organisations to disseminate information,
integrate disparate systems and deliver
market leading e-business applications. 298 616
OneClickHR plc (AIM Listed)
OneClickHR develops, markets and sells human
resource software, offering companies a
range of solutions enabling them to manage
their HR functions. 58 8
Peakdale Molecular Ltd
Peakdale Molecular is a Derbyshire based
contract chemistry company, developing and
providing pharmaceutical customers with
novel compounds for use in later stage drug
discovery. 360 358
Invested Valuation at
to date at 30 June 2003
cost
#'000 #'000
Pilat Media Global PLC (AIM Listed)
The company develops, markets and supports
business operations software for the media
industry. 150 191
sparesFinder Ltd
SparesFinder has developed a software suite which
enables multinational, multi-site customers to
trace and control their inventory. 500 125
Tepnel Life Sciences PLC (AIM Listed)
Tepnel Life Sciences develops automated systems
for DNA purification and offers a broad range of
DNA related services such as genotyping. 328 246
Warthog PLC (AIM Listed)
Warthog is a leading independent games software
developer. 90 34
----- -----
Total unquoted qualifying technology investments 3,590 3,624
======= =======
Percentage of Portfolio on cost 28%
Target investment level 30%
Invested to Valuation
date at at
cost 30 June
2003
#'000 #'000
Unquoted Non-Technology Investments
Automotive Technik Holdings Ltd
The company holds the exclusive world-wide licence
to manufacture the Pinzgauer off-road vehicle.
Automotive Technik's main clients include the UK
Ministry of Defence and overseas armed forces. 720 612
Careforce Staffing Group Ltd
Careforce Staffing was established in 1999 to build,
both organically and through acquisition, a group
providing home care services to the elderly,
principally on behalf of local authorities. 950 989
City Screen (Liverpool) Ltd
The company was formed to own and operate a three
screen 'art house' cinema in the centre of
Liverpool, which opened in February 2003. 50 50
Consolidated Communications Management Ltd
Consolidated Communications is a management buy-out
of an established public relations company with a
broad range of 'blue chip' clients. 1,000 1,072
Leisure Links International Ltd
Leisure Links was formed to manage and operate golf
clubs. It currently owns two courses, the Test
Valley course near Basingstoke and the Chesfield
Downs course near Stevenage. 950 673
Peakdale Molecular Ltd
This part of the Peakdale investment (as discussed
above) is in loan stock secured against debtors and
property and is classified as a non-technology
holding. 533 594
The Q Garden Company Ltd
The Q Garden Company operates a chain of garden
centres based in the south of England. 1,000 667
------- ------
Total unquoted qualifying non-technology investments 5,203 4,657
======= =======
Percentage of Portfolio on cost 41%
Target investment level 50%
Total qualifying investments 8,793 8,281
======= =======
Total percentage of portfolio on cost 69%
Total target qualifying investment level 80%
Non-qualifying technology investments
Ten largest holdings by value of non-qualifying international quoted technology
stocks.
Company Sector Invested Valuation
to date at
at cost 30 June
2003
#'000 #'000
Digital River Inc E-commerce outsourcing 29 108
Amdocs Limited Software 88 90
Agere Systems A Wireless technology 113 83
Nortel Network Communications network
Communication technology 164 69
Melexis Microelectronics 57 64
Network Associates Inc Software 84 62
Ascential Software Corp Provider of integration
solutions 32 53
Take Two Interactive Software
Software 42 51
Taiwan Semiconductor Ads Semi-conductors 45 48
Tecnomatix Technologies Software 74 82
Ltd ------ ------
728 710
19 other non-qualifying
international quoted technology
stocks 983 659
------ ------
Total non-qualifying
international quoted technology
stocks 1,711 1,369
======== =======
Percentage of portfolio on cost 13%
Target non-qualifying investment
level 20%
Floating Rate Notes
---------------------
Bradford & Bingley 1,499 1,501
Total non-qualifying investments 3,210 2,870
======= ========
Total percentage of non-qualifying portfolio on cost 32%
Total target non-qualifying investment level 20%
Unaudited Statement of Total Return
(incorporating the profit and loss account)
for the six months to 30 June 2003
Six months to Six months to Year to
30 June 2003 30 June 2002 31 December 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Gains/
(losses)
on
investments - 1,267 1,267 - (1,454) (1,454) - (3,622) (3,622)
Investment
income 198 - 198 306 - 306 632 - 632
Investment
management
fees (37) (112) (149) (43) (130) (173) (67) (202) (269)
Other
expenses (59) - (59) (52) - (52) (106) - (106)
---------------------------------------------------------------------------------
Return
on
ordinary
activities
before
tax 102 1,155 1,257 211 (1,584) (1,373) 459 (3,824) (3,365)
Tax on
ordinary
activities (20) 22 2 (42) 26 (16) (91) 40 (51)
----------------------------------------------------------------------------------
Return
Attributable
to
equity
shareholders 82 1,177 1,259 169 (1,558) (1,389) 368 (3,784) (3,416)
Dividends (72) - (72) (144) - (144) (287) - (287)
--------------------------------------------------------------------------------
Transfer
to/(from)
reserves 10 1,177 1,187 25 (1,558) (1,533) 81 (3,784) (3,703)
================================================================================
0.6p 8.2p 8.8p 1.2p (10.9)p (9.7)p 2.6p (26.6)p (24.0)p
All revenue and capital items in the above statement derive from continuing
operations.
The revenue column of this statement is the profit and loss account of the
Company.
Unaudited Summary Balance Sheet
at 30 June 2003
30 June 2003 30 June 2002 31 December
2002
#'000 #'000 #'000
Fixed asset investments
Qualifying investments
Unquoted technology 1,933 1,014 1,100
AIM technology stocks 1,691 1,321 1,075
Unquoted non-technology 4,657 4,596 4,664
------ ------ ------
Total qualifying investments 8,281 6,931 6,839
Non-qualifying investments
Quoted international
technology stocks 1,369 1,261 944
Floating rate notes 1,501 4,497 1,499
------ ------ -------
Total non-qualifying
investments 2,870 5,758 2,443
Total investments 11,151 12,689 9,282
Current assets
Debtors 64 30 8
Cash: short term money market
deposits 916 453 1,688
----- ----- -------
980 483 1,696
Creditors: due within one
year (236) (281) (257)
------- ------- -------
Net current assets 744 202 1,439
----- ----- -------
Net assets 11,895 12,891 10,721
======== ======== ========
Represented by:
Share capital 7,160 7,170 7,170
Share premium account 165 165 165
Special reserve 6,245 6,258 6,258
Capital redemption reserve 35 25 25
Capital reserve
realised (702) 149 (622)
unrealised (1,116) (918) (2,373)
Revenue reserve 108 42 98
------ ----- -----
Total equity shareholders'
funds 11,895 12,891 10,721
======== ======== ========
Net asset value per share 83.0p 89.9p 74.8p
Unaudited Cash Flow Statement
Six months to 30 June 2003
Six months Six months Year to
to 30 June to 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
Operating activities
Investment income received 140 145 383
Deposit interest received 21 42 54
Investment management fees
paid (93) (109) (249)
Other cash payments (68) (62) (112)
------ ------ -------
Net cash inflow from
operating activities - 16 76
Taxation
UK corporation tax paid - - (10)
Investing activities
Purchase of investments (744) (7,262) (9,142)
Disposal of investments 129 454 3,671
----- ----- -------
Net cash outflow from
investing activities (615) (6,808) (5,471)
Equity dividends paid
Dividends paid on ordinary
shares (144) (142) (285)
------- ------- -------
Net cash outflow before
financing (759) (6,934) (5,690)
Financing
Issue of shares net of
expenses - 188 179
Redemption of own shares (13) (9) (9)
------ ----- -----
Net cash (outflow)/ inflow from
financing (13) 179 170
------ ----- -----
Decrease in cash (772) (6,755) (5,520)
====== ======== ========
This information is provided by RNS
The company news service from the London Stock Exchange
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