Final Results
Close Technology & General VCT PLC
26 March 2002
CLOSE TECHNOLOGY & GENERAL VCT PLC
5.9% Rise in Net Asset Value
26 March 2002
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 preliminary results for the period
ended 31 December 2001.
Highlights:
- NAV per Ordinary Share of 100.6 p an increase of 5.9 %
since launch (95p)
- Dividends per Ordinary Share of 2p
- £4.88 million invested in nine qualifying companies
- £1.48 million invested in four qualifying companies
(subsequent to period end)
- 27 investments made in quoted technology investments to
date
Dr Neil Cross, Chairman, commented: 'The Company's net asset value from a
starting point of 95 pence per share on launch has risen to 100.6 pence at 31
December 2001. This was principally caused by the excellent performance of the
Company's portfolio of international quoted technology stocks, most of which
were purchased after the tragic events of 11 September last year. This has led
the Company to outperform the FTSE 100 Index by a considerable margin since the
Company's shares first started trading on 16 January 2001. The Index fell by
14.2 per cent. over the period ended 31 December 2001 while the Company's net
asset value rose by 5.9 per cent.'
Patrick Reeve, Managing Director of Close Venture Management, Manager of Close
Technology & General VCT PLC added: 'The Company is over half-way through its
initial investment programme and has built up a broad portfolio of UK and
International investments across 38 companies, purchased at values which are
significantly below historical peaks. Our ability not only to generate a
healthy income stream, but more importantly enhance capital growth, at a time
when many technology funds are struggling, is testament to our prudent
investment strategy. We look forward to the future with confidence.'
For further information, please contact:
Patrick Reeve, Managing Director John West
Ole Bettum, Director Justin Griffiths
Close Venture Management Tavistock Communications
Tel: 020 7426 4000 Tel: 020 7600 2288
Notes to Editors:
1. Close Venture Management is the specialist Venture Capital Trust
division of Close Brothers Investment Limited (CBIL) led by Patrick Reeve
(Managing Director) and Ole Bettum (Director). It was established in 1996 and
currently manages a portfolio of four VCTs which have to date raised a total of
£96 million from private investors.
- Close Brothers Venture Capital Trust PLC invests in a broad range of
unquoted asset-backed businesses in the hotel, care home, residential property
development, health and fitness and cinema sectors. It is aimed at providing
investors with a lower risk investment profile whilst at the same time
generating a strong dividend yield
- Close Brothers Protected VCT PLC is similarly aimed at providing
investors with a lower risk investment opportunity, with 50% of net funds raised
invested in loans guaranteed by The Royal Bank of Scotland. The majority of the
balance is invested in a portfolio of 32 AIM stocks
- Close Brothers Development VCT PLC provides equity and debt finance to
growing unquoted companies across a variety of sectors, with investments ranging
from technology-orientated to service and asset-backed businesses
- Close Technology & General VCT PLC offers investors the opportunity to
participate in a balanced portfolio of technology and non-technology businesses
2. Close Brothers Investment limited is a subsidiary of Close Brothers Group plc
and is regulated by the FSA.
3. The financial information included in this announcement as regards the
company does not constitute statutory accounts for the period ended 31
December 2001 within the meaning of Section 240 of the Companies Act 1985.
Statutory accounts of the company for the financial period ended 31 December
2001, upon which the auditors of the company have given an unqualified
report, will be delivered to the Registrar of Companies.
Audited Financial Statements for the period will be sent to shareholders
shortly.
CHAIRMAN'S STATEMENT
Investment progress
We are pleased and encouraged with the progress made in this first financial
period of the Company. The investment rate has been strong, with some £4.88
million invested in nine qualifying companies during the period ended 31
December 2001, and a further £1.48 million invested in four qualifying companies
subsequent to the period end. In addition the Company's net asset value from a
starting point of 95 pence per share on launch had risen to 100.6 pence at 31
December 2001. This was principally caused by the excellent performance of the
Company's portfolio of international quoted technology stocks, most of which
were purchased after the tragic events of 11 September last year. This has led
the Company to outperform the FTSE 100 Index by a considerable margin since the
Company's shares first started trading on 16 January 2001. The Index fell by
14.2 per cent. over the period ended 31 December 2001 while the Company's net
asset value rose by 5.9 per cent.
Furthermore the Company has been able to pay a total dividend for the period of
2 pence per share to those shareholders invested by 16 January 2001, as
indicated in the original prospectus. This was despite falling interest rates
and underlines the income generating nature of the Company's unquoted
non-technology portfolio which invests in lower risk companies capable of
generating a strong yield.
Following the further investments made subsequent to the period end, the
Company's portfolio, by cost, is currently made up as follows;
Number of Percentage of total Target
assets by cost
investments
Unquoted investments:
Technology 9 15% 30%
Non-technology 4 29% 50%
44% 80%
Quoted technology investments 27 12% 20%
Bank deposits and floating rate notes 44% 0%
Total assets 100% 100%
The Company is therefore over half-way through its initial investment programme
and has built up a broad portfolio of UK and International investments across 38
companies, purchased at values which are significantly below historical peaks.
We look to the future with confidence.
Results and dividend
Net income after taxation was £247,000 for the period enabling the board to
declare a net final dividend of 1.0 pence per share, (for those shareholders
investing before 16 January 2001, making a total dividend of 2.0 pence for the
period), or 1.5 pence for shareholders investing between 17 January 2001 and 30
June 2001.
As at 31 December 2001 and following revaluations the board is pleased to report
that the net asset value of the Company has risen to £14.2 million or 100.6
pence per share as opposed to net assets upon subscription and after issue costs
of £13.4 million or 95 pence per share. The dividend will be paid on 2 May 2002
to shareholders on the register on 5 April 2002.
Dr Neil Cross
Chairman 26 March 2002
THE PORTFOLIO OF INVESTMENTS
Qualifying investments
At 31 December 2001
Equity Invested Unrealised Total
held at cost appreciation/
(depreciation)
£'000 £'000 £'000
Technology
sparesFinder Limited 5% 500 - 500
Active Hotels Limited 5% 500 - 500
Tepnel Life Sciences Plc * 2% 328 (33) 295
Peakdale Molecular Limited 6% 267 - 267
Deltex Medical Group Plc* 2% 191 (34) 157
OneclickHR Plc* 0.2% 58 (10) 48
Total 1,844 (77) 1,767
Non-technology
Consolidated Communications Management Limited 7% 1,000 21 1,021
The Q Garden Company Limited 30% 1,000 1 1,001
Peakdale Molecular Limited 6% 533 4 537
Fastrack Resources Group Limited 16% 500 5 505
Total 3,033 31 3,064
Total qualifying investments 4,877 (46) 4,831
* AIM listed investments
sparesFinder Limited
Founded in 1999, sparesFinder Limited provides clients with a pooled inventory
solutions service accessed via the internet. Its service allows registered
clients to share inventories, locate and purchase goods or spare parts anywhere
throughout the world using the sparesFinders shared database of inventories.
Clients using the system include BAT, BP (North Sea) and Alsthom.
Active Hotels Limited
Founded in 1998, Active Hotels has developed internet based software to act as
an intermediary to the hotel industry enabling hotels to post their room
availability on on-line, real time booking sites. Active Hotels has built up a
large portfolio of hotel operators and is in the process of building up its
internet based distribution partners.
Tepnel Life Sciences Plc
Tepnel Life Sciences, an AIM listed investment, is a biotechnology company
committed to the commercialisation of DNA technologies, developing automated
systems for use in life science research, clinical diagnosis and food testing.
Peakdale Molecular Limited
Peakdale Molecular is a Derbyshire based contract chemistry company founded in
1992. Its business is that of developing and providing pharmaceutical customers
such as Glaxo SmithKline with novel compounds for use in later stage drug
discovery.
Deltex Medical Group Plc
Deltex listed on AIM in November 2001. It develops, manufactures and markets
the 'CardioQ', an oesophageal device which monitors the heart's response to
medical treatment.
OneclickHR Plc
OneclickHR develops and markets a range of human resources software under the '
Vizual' brand to assist companies in managing their human resource requirements.
The company is listed on AIM.
Consolidated Communications Management Limited
CCML was an MBO of a successful London based Public Relations consultancy, which
has recently won PR Week's consultancy of the year 2001. CCML continues to
perform satisfactorily and has a growing 'Blue Chip' client list.
The Q Garden Company Limited
The Q Garden Company is an emerging chain of garden centres based in the south
of England. With the investment by Close Technology & General VCT, The Q Garden
Company is now actively expanding their chain of centres.
Fastrack Resources Group Limited
Fastrack was formed from an MBO in 1999 and specialises in the placement of
permanent and temporary staff within the engineering sector, particularly in the
rail industry. The company has a small network of offices in the south of
England and is trading satisfactorily.
Subsequent to the 31 December 2001 Close Technology & General VCT has invested
in the following qualifying investments.
Leisure Links International Limited: £950,000
Leisure Links was formed to manage and operate golf clubs. It currently owns
two courses, the Test Valley course near Maidenhead and the Chelsfield Downs
course near Stevenage.
Warthog plc: £90,000
Warthog is a leading independent games software developer. The company is
listed on AIM.
Pilat Media Global plc: £150,000
The company recently floated on AIM and develops, markets and supports business
operations software for the media industry.
Intelligent Environment Group PLC: £297,500
iE is a leading provider of integrated e-finance products for the credit and
wealth management market. The company is listed on AIM.
Non-qualifying portfolio
Company Country Listing Share Cost Unrealised Value
of exchange Holding appreciation/
incorporation (devaluation)
£000's £000's £000's
Taiwan Semiconductor Taiwan NYSE 16,000 100 89 189
Agere Systems Inc - A USA NYSE 46,000 104 76 180
Network Associates Inc. USA NYSE 10,000 105 73 178
Rational Software Corp. USA Nasdaq 12,000 67 94 161
Veritas Software Corp. USA Nasdaq 5,000 65 89 154
Nortel Networks Corp. Canada NYSE 29,700 153 (1) 152
Applied Materials Inc. USA Nasdaq 5,000 97 41 138
Technomatix Technologies Ltd. USA Nasdaq 12,200 74 46 120
Ericsson LM-B Sweden Stockholm 32,000 72 47 119
Business Objects USA Paris 5,000 66 49 115
Digital River Inc. USA Nasdaq 9,300 29 73 102
Amdocs Ltd. USA NYSE 4,100 77 19 96
Atmel Corp. USA Nasdaq 18,000 71 20 91
Electronic Arts USA Nasdaq 2,000 62 20 82
Synopsis Inc. USA Nasdaq 2,000 51 30 81
Peregrine Systems Inc. USA Nasdaq 7,300 74 - 74
Cirrus Logic Inc. USA Nasdaq 8,000 36 37 73
Optimal Robotics Corp. Canada Nasdaq 2,600 51 12 63
Comverse Technology Inc. USA Nasdaq 3,000 51 (5) 46
Orbotech Israel Nasdaq 2,100 49 (4) 45
Qiagen N.V. Netherlands Frankfurt 3,300 51 (8) 43
Crucell N.V. Netherlands Amsterdam 10,300 50 (11) 39
Advance Fibre Communications USA Nasdaq 3,000 39 (3) 36
OneclickHR PLC UK LSE AIM 85,500 43 (7) 36
Chordiant Software Inc. USA Nasdaq 3,188 9 8 17
Total 1,646 784 2,430
Note
Listings on the following exchanges were translated upon purchase at prevailing
exchange rates, whilst valuations were translated at the following rates as
listed in the Financial Times at close of business on 31 December 2001.
Listing exchange Currency Closing rate
31 December 2001
Nasdaq, NYSE, Nasdaq OTC US$ 1.455
Frankfurt, Amsterdam, Paris € 1.635
Stockholm SEK 15.270
LSE AIM £ 1.000
Statement of Total Return
(incorporating the revenue account)
for the period from incorporation on
21 November 2000 to 31 December 2001
Period ended
31 December 2001
Revenue Capital Total
£'000 £'000 £'000
Gains on investments - 997 997
Income 504 - 504
Investment management fees (87) (260) (347)
Other expenses (108) - (108)
Return on ordinary activities before tax 309 737 1,046
Tax on ordinary activities (62) 52 (10)
Return attributable to
shareholders 247 789 1,036
Equity dividends (230) - (230)
Transfer to reserves 17 789 806
Return per share 2.0p 6.4p 8.4p
The revenue column of this statement represents the profit and loss account of
the Company.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the period.
Balance Sheet
at 31 December 2001
31 December 2001
£'000
Fixed asset investments
Qualifying 4,831
Non-qualifying 2,430
Total fixed asset investments 7,261
Current assets
Debtors 18
Cash at bank and in hand 7,208
7,226
Creditors: amounts falling due within one year (241)
Net current assets 6,985
Net assets 14,246
Represented by:
Called up share capital 7,080
Share premium 73
Special reserve 6,267
Capital redemption reserve 20
Capital reserve
realised 91
unrealised 698
Revenue reserve 17
Total equity shareholders' funds 14,246
Net asset value per share 100.6p
Cash Flow Statement
for the period ended 31 December 2001
Period ended
31 December 2001
£'000
Operating activities
Investment income received 48
Deposit interest received 405
Other income 2
Investment management fees paid (337)
Other cash payments (69)
Net cash inflow from operating activities 49
Taxation
UK corporation tax paid -
Capital expenditure and financial investments
Purchase of qualifying investments (4,877)
Purchase of non-qualifying investments (2,011)
Disposals of non-qualifying investments 687
Net cash outflow from investing activities
(6,201)
Equity dividends paid
Dividends paid on ordinary shares (88)
Net cash outflow before financing (6,240)
Financing
Issue of capital net of expenses 13,498
Cancellation of share capital (32)
Cancellation of share premium (18)
Net cash inflow from financing 13,448
Increase in cash in the period 7,208
This information is provided by RNS
The company news service from the London Stock Exchange
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