Half-yearly Report

Half-yearly Report

Keydata AIM VCT

KEYDATA AIM VCT plc
Unaudited Interim Results for the six months ending 31 March 2009

Chairman’s Statement

During the six month period, the fund’s NAV declined by 12.5% against a backdrop of a 33.6% fall in the FTSE AIM All Share index. While it is always distressing to report a loss, this is a creditable performance under the circumstances.

Conversion of C shares

On 7 October 2008, in accordance with the Articles of Association, the C shares were converted into new Ordinary shares based on the respective net asset value per share of each fund at 30 September 2008. The conversion ratio was 1.23935 new ordinary shares for each C share held on 7 October 2008. The 17,719,270 C shares in issue were converted into 21,959,891 new ordinary shares which rank pari passu with the existing ordinary shares. The two investment funds were combined from this date

Results - Ordinary Fund

The net asset value per ordinary share decreased by 12.5% to 57.91 pence during the period. In the same period, the FTSE AIM All Share index fell 33.6%. Adjusted for dividends paid, the total return is 72.91 pence, a 9.1% reduction in the period. The loss per ordinary share for the period was 7.22 pence per share (comprising revenue profit of 0.06 pence and capital loss of 7.28 pence).

As at 31 March 2009, 69% of the fund was invested in equities and 31% in gilts and corporate bonds.

The Investment Manager invested a further £0.3 million in one qualifying AIM company during the period and made full or part disposals of 4 of the AIM investments, realising a net loss on sale of £0.8 million in the period. The main contributors to this realised loss were Zenith Hygiene, Optimisa and Work Group. In addition, 4 qualifying investments went into administration during the period (Fishworks, EBTM, Business Direct Group and Vicorp) realising a combined loss of £1.1 million. The bid value of qualifying investments at 31 March 2009 was £8.95 million invested in 52 AIM companies. With respect to the 70% investment test, as at 31 March 2009, 71.8% of the Company’s investments were in VCT Qualifying companies.

During the period, 10,000 ordinary shares were bought back for cancellation at a total cost of £84,800.

Results of an extraordinary general meeting held on 19 May 2009

Shareholders resolved at an EGM held on 19 May 2009 to pass all resolutions proposed in a circular dated 9 April 2009.

Tender Offer

At the EGM, a special resolution was passed by shareholders to give approval for a tender offer of up to 8,000,000 ordinary shares at a price of 52 pence per share. Valid acceptances were received by the closing date of 30 April 2009 from 179 shareholders for 5,076,447 ordinary shares which will be repurchased either for cancellation (2,365,313 shares) or for holding in treasury for issue by the company at a future date (2,711,134 shares). Cheques will be posted to shareholders by 29 May 2009.

Amendment to Investment Policy

At the EGM, an ordinary resolution was passed by shareholders to amend the investment policy of the fund to permit targeted investments in equities which are non-qualifying investments on an opportunistic basis to boost the performance of the fund. This strategy has been successfully deployed by Keydata AIM VCT 2 plc over the last 2 years.

Dividend

We are delighted to declare an interim dividend payable to ordinary shareholders of 2 pence per share (2008 – 4 pence). This interim dividend will be payable on 30 June 2009 to ordinary shareholders on the share register on 12 June 2009.

Outlook

The FTSE AIM index has recovered by 16% in April 2009. In comparison, the NAV on the Ordinary share fund increased by 6.6% to 61.72 pence per share at 30 April 2009.

While some commentators have reported signs of green shoots on the back of the money that the Treasury has pumped into the economy, we remain cautious in the medium term.

However with share prices at rock bottom there should be some attractive opportunities to invest in sound companies that merit capital for sensible expansion plans. While markets have been largely closed for new investment over much of the last year, we are seeing more activity in the last few weeks on the back of the rebound in equity markets.

Shareholder Communication

The Company’s daily share price can be found on various financial websites under the EPIC code “KEY” for ordinary shares or on our own dedicated website at www.keydata.co.uk/aimvct

Sir Aubrey Brocklebank Bt
Chairman

20 May 2009

Income Statement for the six months ended 31 March 2009 (unaudited)

  For the six months to
31 March 2009(unaudited)
Revenue   Capital   Total
£000 £000 £000
Realised gains on investments (1,595) (1,595)
Unrealised losses on investments - (691) (691)
Income

216

 

-

 

216

 

216 (2,286) (2,070)
 
Management fee (21) (62) (83)
Other expenses

(177)

 

-

 

(177)

 

(198) (62) (260)

 

 

 

Loss before taxation 18 (2,348) (2,330)
Taxation - - -

 

 

 

Loss after taxation

18

 

(2,348)

 

(2,330)

 

Loss per share (Note 2) 0.06p (7.28)p (7.22)p
 

The total column of this statement is the income statement of the Company. All
revenue and capital items in the above statement derive from continuing operations. revenue and capital items in the above statement derive from continuing operations.

 

Income Statement for the six months ended 31 March 2008 (unaudited)

  For the six months to
31 March 2008 (unaudited)
Revenue   Capital   Total
£000 £000 £000
Realised gains on investments 565 565
Unrealised losses on investments - (4,034) (4,034)
Income

351

 

-

 

351

 

351 (3,469) (3,118)
 
Management fee (39) (115) (154)
Other expenses

(217)

 

-

 

(217)

 

(256) (115) (371)

 

 

 

Profit (loss) before taxation 95 (3,584) (3,489)
Taxation - - -

 

 

 

 

Profit (loss) after taxation

95

 

(3,584)

 

(3,489)

 

 

The total column of this statement is the income statement of the Company. All
revenue and capital items in the above statement derive from continuing operations. revenue and capital items in the above statement derive from continuing operations.

 

Income Statement for the year ended 30 September 2008

  For the year ended
30 September 2008 (unaudited)
Revenue   Capital   Total
£000 £000 £000
Realised gains on investments - 688 688
Unrealised gains on investments - (7,508) (7,508)
Income

661

 

-

 

661

 

661 (6,820) (6,159)
 
Management fee (68) (204) (272)
Other expenses

(288)

 

-

 

(288)

 

(356)

(204) (560)

 

 

 

Profit before taxation 305 (7,024) (6,719)
Taxation (38) 38 -

 

 

 

Profit after taxation

267

 

(6,986)

 

(6,719)

 

 

The total column of this statement is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations. All revenue and capital items in the above statement derive from continuing operations.

 

Balance sheet as at 31 March 2009 (unaudited)

    31 March 2009     30 Sep 2008     31 March 2008
£000 £000 £000
Fixed assets
Investments

13,033

 

20,694

 

20,490

 

Current assets
Prepayments and accrued income 44 156 34
Cash at bank and on deposit

5,635

 

609

 

6,462

 

5,679 765 6,496
Creditors: amounts falling due within one year
Accruals and deferred income

(71)

 

(81)

 

(94)

 

Net current assets

5,608

 

684

 

6,402

 

Net assets

18,641

 

21,378

 

26,892

 

Capital and Reserves
Called up share capital 322 989 1,019
Capital redemption reserve 718 51 20
Capital reserve – realised (1,939) 40 424
Capital reserve – unrealised (6,351) (5,660) (2,187)
Special reserve 25,614 25,699 27,405
Revenue reserve

277

 

259

 

211

 

Equity shareholders’ funds

18,641

 

21,378

 

26,892

 

Net asset value per share (Note 4) 57.91p 66.21p 88.52p
 

Cash flow statement for the six months ended 31 March 2009 (unaudited)

    6 months to     12 months to     6 months to
31 March 2009 30 Sep 2008 31 March 2008
£000 £000 £000
Profit (loss) before taxation 18 305 95
Management fee charged to capital (62) (204) (115)
Decrease (increase) in debtors 112 (107) 15
(Decrease) increase in creditors (10)

(35)

(21)

 

 

 

Net cash inflow (outflow) from operating
activities
 
Financial investment: 58 (41) (26)
Purchase of investments (7,592) (7,757) (950)
Sale of investments

Net financial investment

12,967

5,375

11,786

4,029

8,532

7,582

Dividends paid
 
Cash flow before management of liquid
resources (322) (712) (134)
 
Financing: 5,111 3,276 7,422
Purchase and cancellation of share capital

(85)

 

(3,395)

 

(1,688)

 

Increase (decrease) in cash

5,026

 

(119)

 

5,734

 

 

Reconciliation of movements in shareholders’ funds for the six months to 31 March 2009 (unaudited)

Ordinary Shares                        
Share Capital Capital Capital Special Revenue
Capital Redemption Reserve Reserve Reserve Reserve
Reserve Realised Unrealised
£000 £000 £000 £000 £000 £000
 
At 1 October 2008 989 51 40 (5,660) 25,699 259
Conversion of C shares

(666)

666

-

-

-

-

Previously recognised gains now realised

-

-

(1,595)

1,838

-

-

 

 

 

 

 

 

Unrealised loss on
investmentsinvestments

-

- - (2,529) - -

Management fee charged
to capitalto capital

 - - (62) - - -
Cancellation of shares (1) 1 - - (85) -
Equity dividends paid - - ` (322) - - -

Profit after taxation for the
periodperiod

-

 

-

 

-

 

-

 

-

 

18

 

At 31 March 2009

322

 

718

 

(1,939)

 

(6,351)

 

25,614

 

277

 

 

Reconciliation of movements in shareholders’ funds for the six months to 31 March 2008 (unaudited)

Ordinary Shares                        
Share Capital Capital Capital Special Revenue
Capital Redemption Reserve Reserve Reserve Reserve
Reserve Realised Unrealised
£000 £000 £000 £000 £000 £000
At 1 October 2007 143 - 128 1,593 12,999 116

Previously recognised gains now
realisedrealised

 - - 333 (333) - -
Unrealised loss on investments - - - (2,289) - -
Management fee charged to capital - - (50) - - -
Cancellation of shares (18) 18 -` - (1,521) -

Profit after taxation for the
periodperiod

-

 

-

 

-

 

-

 

-

 

(19)

 

At 31 March 2008

125

 

18

 

411

 

(1,029)

 

11,478

 

97

 

C Shares                  
Share Capital Capital Capital Special Revenue
Capital Redemption Reserve Reserve Reserve Reserve
Reserve Realised Unrealised
£000 £000 £000 £000 £000 £000
At 1 October 2007 896 - (154) 254 16,094 134

Previously recognised gains
now realisednow realised

 - - 232 (232) - -

Unrealised loss on
investmentsinvestments

 - - - (1,180) - -
Management fee charged to capital - - (65) - - -
Cancellation of shares

Equity dividends paid

(2)

-

2

-

-

-

-

-

(167)

-

-

(134)

Profit after taxation for the
periodperiod

-

 

-

 

-

 

-

 

-

 

114

 

At 31 March 2008

894

 

2

 

13

 

(1,158)

 

15,927

 

114

 

 

Notes to the interim report

1       The accounts of the company are prepared in accordance with Accounting Standards applicable in the United Kingdom. The accounting policies used in preparing this report are consistent with those adopted at the year end. All AIM investments are valued at bid price.
2 The loss per ordinary share of 7.22p is based on the loss after tax for the period of £2,285,803 and the weighted average number of ordinary shares in issue over the six month period of 32,204,463.
3 The results should not be taken as a guide to the results for the year ending 30 September 2009
4 The net asset value per ordinary share at 31 March 2009 of 57.91p is based on net assets of £18,641,284 and on 32,187,796 shares, being the number of ordinary shares in issue as at 31 March 2009.
5 The financial information contained in the 31 March 2009 income statement, balance sheet, cash flow statement and reconciliation of movements in shareholders’ funds does not constitute full financial statements and has not been audited.

Investment portfolio summary as at 31 March 2009

Qualifying investments    

Book cost
£000

 

   

Valuation
£000

 

   

Valuation
%

 

Cohort 802 979 7.5
Abcam 209 750 5.8
Intercede 518 643 4.9
CBG 534 499 3.8
Advanced Computer Software 400 471 3.6
Brulines 540 404 3.1
Relax 650 389 3.0
Pressure Technologies 340 385 3.0
Mount Engineering 400 377 2.9
Animalcare 300 371 2.8
FDM 250 314 2.4
Mama 300 276 2.1
Craneware 150 255 2.0
Keycom 300 225 1.7
Rotala 400 205 1.6
Optare 548 198 1.5
Idox 150 185 1.4
Vertu Motors 600 180 1.4
K3 Business Technology 270 174 1.3
Feedback 201 117 0.9
Jelf 174 103 0.8
Universe 385 96 0.7
Plastics Capital 250 93 0.7
Neutrahealth 315 90 0.7
Sectorguard 250 89 0.7
Energetix 380 86 0.7
Portland Gas 46 83 0.6
Innovision Research 175 78 0.6
Infoserve Group 200 76 0.6
Advanced Power Components 148 74 0.6
Hexagon Human Capital 300 69 0.5
Maxima 251 65 0.5
Tangent Communications 300 63 0.5
Invocas 169 58 0.4
Tasty 288 57 0.4
Autoclenz 256 47 0.4
Richoux 300 42 0.3
Essentially Group 220 39 0.3
St Helens Capital 211 37 0.3
Enfis 146 36 0.3
Reneuron 168 22 0.2
Alterian 145 22 0.2
Egdon Resources 8 21 0.2
Expansys 389 20 0.2
Invu 200 18 0.1
TMN Group 173 17 0.1
Axeon 200 13 0.1
Sports Media Group 300 12 0.1
Hardide 396 11 0.1
York Pharma 250 6 0.0
Centrom 400 3 0.0
Accuma

50

 

3

 

0.0

 

Total qualifying investments

15,305

 

8,946

 

68.6

 

Non-qualifying investments

 

 
Treasury 2.25% Stock 2014 981 987 7.6
Treasury 2.5% Indexed Linked 2016 491 491 3.8
Treasury 2.5% Indexed Linked 2020 482 486 3.7

 

 

 

Total – UK Gilts 1,954 1,964 15.1

 

 

 

 
Lloyds TSB 4% 2011 1,024 1,039 8.0
Nationwide BS 3.75% 2011 1,018 1,034 7.9

 

 

 

Total – UK Corporate bonds 2,042 2,073 15.9

 

 

 

Non-qualifying AIM investments 83 50 0.4

 

 

 

Total non-qualifying investments

4,079

 

4,087

 

31.4

 

Total investments

19,384

 

13,033

 

100.0

 

 

Top ten investments at 31 March 2009 by valuation

1. Cohort plc       159p
Investment date   February 2006   Unaudited results for 6 mths to October 08
Equity held 1.52% Turnover (£’000) 33,900
Purchase Price 123p Profit before tax (£’000) 2,600
Cost (£’000) 802 Net Assets (£’000) 42,529
Valuation (£’000) 979
 
Cohort is an independent technology business operating in defense and related markets. It was formed in 2006 as a holding company to acquire and grow businesses capitalizing on the growing demand in the UK and overseas, for independent technical advice and cost effective and flexible supply of niche products and services. It now has three well established, wholly owned subsidiaries providing a wide range of services and products covering the full defense procurement cycle in land, sea and air systems.
 
2. Abcam plc       600p
Investment date   October 2005   Unaudited results for 6 months to December 08
Equity held 0.36% Turnover (£’000) 23,074
Purchase Price 167p Profit before tax (£’000) 6,820
Cost (£’000) 209 Net assets (£’000) 28,561
Valuation (£’000) 750
 
Abcam is a producer and distributor of research-grade antibodies headquartered in Cambridge, UK, with offices in Cambridge, Massachusetts, USA and Tokyo, Japan. The Company produces and distributes its own and third party produced antibodies to academic and commercial users throughout the world. Product ordering is available through the Company's website where customers are also able to access up-to-date and detailed technical product data sheets. All the antibodies are sold under the Abcam brand name and the Company's vision is to build the world's largest online resource of high quality and commercially viable antibodies.
 
3. Intercede plc       41p
Investment date   May 2007   Unaudited results for 6 months to September 08
Equity held 4.20% Turnover (£’000) 1,981
Purchase Price 33p Profit before tax (£’000) 222
Cost (£’000) 518 Net assets (£’000) (815)
Valuation (£’000) 643
 
Intercede Group plc is a leading developer and supplier of smart card and identity credential management software. The company’s principal product, MyID, is a software solution that manages the secure registration, issuance and lifecycle of identity credentials and devices.
 
4. CBG plc       105p
Investment date   Nov 06   Unaudited results for 6 mths to December 08
Equity held 3.08% Turnover (£’000) 11,148
Purchase Price 102p Profit before tax (£’000) 1,093
Cost (£’000) 534 Net assets (£’000) 12,278
Valuation (£’000) 499
 
CBG Group is a Manchester based corporate general insurance, risk management and financial services intermediary. The Group offers a range of services principally in the area of commercial insurance, business risk management, healthcare and employee benefits. It also offers private client solutions to individuals centered on wealth management asset protection.
 
5. Advanced Computer Software plc       20p
Investment date   July 08   Unaudited results for 6 months to February 09
Equity held 1.23% Turnover (£’000) 7,327
Purchase Price 17p Profit before tax (£’000) 1,459
Cost (£’000) 400 Net assets (£’000) 25,442
Valuation (£’000) 471
 
Under new management, Advanced Computer Software plc (formerly known as Drury Lane) raised £14.6m in July 2008 to acquire Adastra Software Ltd, a data distribution and clinical support software provider to the primary care sectors in the UK, Ireland and the Netherlands as the first step to becoming a leading provider of software and services to the UK primary care market (the provision of first line patient services such as GPs, walk-in-centers, district nursing, and out-of-hours services). The Company's strategy is to consolidate the fragmented healthcare software market, through selective acquisitions, with a focus on primary care.
 
6. Brulines plc           92p
Investment date October 06   Unaudited results for 6 mths to Sept 08
Equity held 1.57% Turnover (£’000) 8,896
Purchase Price 123p Profit before tax (£’000) 2,165
Cost (£’000) 541 Net assets (£’000) 13,943
Valuation (£’000) 405
 
Brulines is a leading provider of volume and revenue protection systems for draught alcoholic drinks for the UK Licensed on-trade, in particular the tenanted pub sector. The Dispense Monitoring Division, which represents the Group’s core product, measures the actual volume of liquid dispensed each hour against legitimate deliveries and protects the pub owners from the potential loss of revenue from ‘buying out’. The Group also has a Brand Quality Monitoring solution undergoing commercial trials with a number of customers. In September 2008 they acquired Edensure Ltd, which provides Intelligent Forecourt Solutions for the UK Petrol forecourt market, and in December 2008 it completed the acquisition of Vianet Ltd, that provides market leading telemetry and data capture solutions to the vending industry.
 
7. Relax plc       56p
Investment date   May 2006   Audited results for year to July 2008
Equity held 2.28% Turnover (£’000) 12,923
Purchase Price 180p Profit before tax (£’000) 14
Cost (£’000) 650 Net Assets (£’000) 13,581
Valuation (£’000) 389
 
Relax plc, formerly known as Debts.co.uk, provides a range of solutions to over-indebted individuals that includes IVAs, trust deeds, debt management programs, bankruptcy and secured loans.
 
8. Pressure Technologies plc       170p
Investment date   May 2007   Audited results for year to September 08
Equity held 2.00% Turnover (£’000) 23,660
Purchase Price 150p Profit before tax (£’000) 5,046
Cost (£’000) 340 Net assets (£’000) 11,167
Valuation (£’000) 385
 
Pressure Technologies plc designs, manufactures and offers testing and refurbishment services for a range of specialty high pressure, seamless steel gas cylinders for global energy, defense and industrial gases markets. The business is conducted under the 'Chesterfield' brand which is a long established name in the cylinders and specialized pressure vessel market. The company is aiming to grow the business through a mixture of organic growth, diversification and acquisition of complementary business to achieve a GBP 40 million turnover business within five years.
 
9. Mount Engineering plc       66p
Investment date   June 2007   Unaudited results for year to December 2008
Equity held 2.35% Turnover (£’000) 11,778
Purchase Price 70p Profit before tax (£’000) 3,071
Cost (£’000) 400 Net assets (£’000) 18,398
Valuation (£’000) 377
 
Mount Engineering plc was established in April 2007 for the purpose of acquiring Mount York Limited. The acquisition of Mount York Limited marks the first step in implementing a strategy to grow the new group, both by selective acquisition and from the continual expansion of the product range. Mount Engineering has three UK subsidiaries, each well established within its industry, with a strong brand name and a recognition for quality products. The major end user market for all three subsidiaries are the oil and gas and petrochemical industries, however they also serve a range of other industrial markets including mining, waste water and pharmaceuticals.
 
10. Animalcare plc           68p
Investment date December 2007   Unaudited results for 6 months to December 08
Equity held 2.77% Turnover (£’000) 7,760
Purchase Price 55p Profit before tax (£’000) 90
Cost (£’000) 300 Net assets (£’000) 14,312
Valuation (£’000) 371
 
Animalcare Group previously known as Ritchey, listed it shares on AIM following the acquisition of Animalcare from Genus plc by Ritchey. The enlarged group has two divisions, Animalcare and Ritchey. Ritchey is a long-established manufacturer and supplier of premium livestock products, whilst Animalcare markets and sells a range of licensed veterinary pharmaceuticals, animal identification microchips and other veterinary supplies products, with a particular focus on the companion animal sector within the UK and Ireland. It is also present in the livestock and food production animal sector.
 

20 May 2009

For further information please contact:

Craig McNeil
Company SecretaryCompany Secretary
Keydata AIM VCT plcKeydata AIM VCT plc
0141 228 6310 0141 228 6310

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