Leisure & Media VCT PLC
21 March 2005
LEISURE & MEDIA VCT PLC (the 'Company')
PRELIMINARY ANNOUNCEMENT OF RESULTS
The Directors announce the statement of results for the year ended 31 December
2004 as follows:
I am very pleased to report to shareholders on the Company's progress during the
financial year ended 31 December 2004. Three new investments were completed, in
financial publishing, pubs and health & fitness, bringing the fund to full
investment, and the first disposals took place, with excellent results.
During the year, gains of more than 100% were achieved on the sale of the
Company's investment in Dolphin Nurseries and the partial realisation of its
investment in XN Checkout Holdings. A modest gain was also earned on the sale
of the Renowned Holiday Villages position. Offsetting these, the sale of the
Odyssey Clubs Group investment realised a loss which had been largely provided
for in the 2003 financial statements. As a result of these realisations, more
than £1.6 million was held in cash at the year-end.
At the end of 2004, six investments reflected unrealised gains, four were
unchanged, and one, Brodie & Knight, reflected a write-down.
The Company completed two further investments in January 2005: a follow-on
investment in the pubs sector and a new investment in a music publisher. The
portfolio reflects good diversification, with investments at the year-end in
pubs, health & fitness, children's nurseries, bingo clubs, premium liquor,
financial publishing, leisure sector point of sale systems, and football
In keeping with the commitment made in the 2001 Prospectus, the Company made a
capital distribution to shareholders of 14.0 pence in October 2004, from the
proceeds of investments in the sub-funds of the J O Hambro Capital Management
Umbrella Fund plc.
At the year-end, the net asset value was 91.5 pence per share, bringing the
total return including dividends to 106.3 pence, compared with the 95.0 pence
(net of expenses) originally raised. Portfolio activity since the year-end has
resulted in a further increase in net asset value, to 99.3 pence per share at 28
February 2005, representing a total return of 114.1 pence.
Between 31 December 2004 and the date of this announcement all of the shares
held by the Company in XN Checkout Holdings plc have been sold, producing a gain
of approximately £453,000 in the 2005 financial year, equal to an increase of
approximately 5 pence in the Company's net asset value and cumulative total
return. Overall, this investment achieved a near tripling of its original
investment cost and an IRR of approximately 40%.
This success comes on the heels of the sale in December 2004 of the Company's
shares in Dolphin Nurseries Ltd., which generated a gain of more than 100% on
the investment, and an IRR of approximately 45%.
In addition, between 31 December 2004 and the date of this announcement the
Company recorded aggregate valuation increases of approximately £375,000 in
respect of its investments in Lindley Catering Limited, Brodie & Knight Limited,
Top Ten Holdings plc and Tomahawk Pubs plc, equal to an aggregate increase of
approximately 4 pence in the Company's net asset value and cumulative total
The Investment Manager, with the assistance of Humberts Leisure Limited, is
continuing to evaluate new opportunities for the reinvestment of proceeds
realised and the proceeds of the 'C' share issue. The Board expresses its
thanks to the Investment Manager for the continued success of the Company's
Following his appointment as Chairman of the BBC, Michael Grade stepped down
from the Board in 2004. In wishing him well in his new position, my fellow
Directors and I would like to extend our thanks to Michael for his expertise in
helping evaluate many of the media opportunities that the Investment Manager has
I look forward to welcoming you to the Annual General Meeting of the Company, to
be held on 12 May 2005 at 3:00 p.m., in the Boardroom, Ryder Court, 14 Ryder
Street, London SW1Y 6QB.
21 March 2005
STATEMENT OF TOTAL RETURN
(incorporating the revenue account*) for the year ended 31 December
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 759 759 - 822 822
Income 121 - 121 85 - 85
Investment management fees (46) (137) (183) (42) (126) (168)
Operating expenses (165) - (165) (186) - (186)
(Deficit)/return on ordinary (90) 622 532 (143) 696 553
activities before taxation
Taxation on ordinary - - - - - -
(Deficit)/return on ordinary (90) 622 532 (143) 696 553
activities after taxation
Capital dividend paid - (1,271) (1,271) - - -
Transfer (from)/to reserves (90) (649) (739) (143) 696 553
pence pence pence pence pence pence
Return per Ordinary Share (1.0) 6.9 5.9 (1.6) 7.7 6.1
* The revenue column of this statement is the revenue account of the Company.
All revenue and capital items in the above statement derive from continuing
as at 31 December
Investments 6,596 8,802
Debtors 112 47
Investments - short-term loan to portfolio company 50 -
Cash at bank 1,631 310
Creditors: amounts falling due within one year (82) (113)
Net current assets 1,711 244
Total assets less current liabilities 8,307 9,046
Capital and reserves
Called-up share capital 91 91
Special reserve 7,265 8,536
Capital reserve - realised 80 (720)
- unrealised 1,096 1,274
Revenue reserve (225) (135)
Equity shareholders' funds 8,307 9,046
Net asset value per Ordinary Share (after payment of 14.0p capital dividend 91.5 99.6
in October 2004)
CASH FLOW STATEMENT
for the year ended 31 December 2004 2003
Investment income received 68 69
Deposit interest received 11 10
Investment management fees paid (189) (162)
Other expenses paid (150) (193)
Net cash outflow from operating activities (260) (276)
Capital expenditure and financial investment
Purchases of fixed asset investments (1,494) (3,462)
Purchases of treasury bills (3,084) (6,801)
Proceeds from the sale of fixed asset investments 4,385 225
Proceeds from the sale of treasury bills 3,084 10,079
Gain on forward exchange contract 4 -
Net cash inflow from capital expenditure and financial investment 2,895 41
Equity dividends paid
Capital dividend paid (1,271) -
Net cash inflow/(outflow) before financing 1,364 (235)
Share issue expenses - C share issue (43) -
Net cash outflow from financing (43) -
Increase/(decrease) in cash 1,321 (235)
The above results have been prepared using the accounting standards and policies
adopted at the previous year end.
The Directors do not recommend the payment of a final dividend (2003: nil).
The revenue return per Ordinary Share is based on the net deficit on ordinary
activities after taxation for the year of £90,000 (2003: deficit of £143,000)
and on 9,081,460 (2003: 9,081,460) Ordinary Shares, being the number of Ordinary
Shares in issue throughout the year.
The capital return per Ordinary Share is based on the net capital gain for the
£622,000 (2003: gain of £696,000) and on 9,081,460 (2003: 9,081,460) Ordinary
Shares, being the number of Ordinary Shares in issue throughout the year.
The net asset value at 31 December 2004 is based on net assets of £8,307,000
(2003: £9,046,000) and on 9,081,460 (2003: 9,081,460) Ordinary Shares being the
number of shares in issue at that date.
The financial information set out above does not constitute the Company's
statutory financial statements for the year ended 31 December 2003 or 2004.
The statutory accounts for the year ended 31 December 2004 will be finalised on
the basis of the financial information presented by the Directors in this
preliminary announcement, and will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.
The Annual General Meeting will be held on 12 May 2005 at 3:00p.m. in the
Boardroom, Ryder Court, 14 Ryder Street, London SW1Y 6QB. The Annual Report will
be posted to shareholders and those individuals on the Company's mailing list as
soon as practicable after printing and will also be available on request from
the Company Secretary, J O Hambro Capital Management Limited, at Ground Floor,
Ryder Court, 14 Ryder Street, London SW1Y 6QB.
The above results for the year ended 31 December 2003 are an abridged version of
the statutory accounts for the year ended 31 December 2003 that have been
delivered to the Registrar of Companies and received an audit report which was
unqualified and did not contain statements under s237 (2) and (3) of the
Companies Act 1985.
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