Final Results
Close Technology & General VCT PLC
11 March 2004
CLOSE TECHNOLOGY & GENERAL VCT PLC
PRELIMINARY RESULTS
11 March 2004
Close Technology & General VCT PLC ('the Company'), which provides equity and
debt finance to growing unquoted companies across a variety of sectors, today
announces preliminary results for the year ended 31 December 2003.
Financial Highlights:
Ordinary Shares
Year ended
31 December
2003
Dividends per share 2.00 pence
Net asset value per share 107.78 pence
Shareholder value per share since launch (ii): Pence per share
Total dividends for the year ended 31 December 2001(i) 2.00
Total dividends for the year ended 31 December 2002 1.00
Interim dividend for the year ended 31 December 2003 0.50
Final dividend for the year ended 31 December 2003 1.50
----
Total dividends 6.00
Net asset value at 31 December 2003 107.78
-------
Total 113.78
=======
Notes
(i) based on subscription for Ordinary Shares by the First Closing on
16 January 2001.
(ii) excluding tax benefits received upon subscription.
For further information, please contact:
Patrick Reeve / Ole Bettum Justin Griffiths / John West
Close Venture Management Tavistock Communications
Tel: 020 7422 7831 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 division of Close Brothers Investment
Limited which is authorised and regulated by the Financial Services
Authority.
3) The financial information set out in this announcement does not constitute
the company's statutory accounts for the years ended 31 December 2003 or
2002, but is derived from those accounts. Statutory accounts for 2002 have
been delivered to the Registrar of Companies and those for 2003 will be
delivered shortly. The auditors have reported on these accounts, their
reports were unqualified and did not contain statements under s237(2) or
(3) Companies Act 1985.
CHAIRMAN'S STATEMENT
I am pleased to say that the year to 31 December 2003 has seen a sharp recovery
in the performance of the company with net asset value rising 44% to 107.8p.
This compares with a rise of 13% in the FTSE 100 Index and a 49% increase in the
Nasdaq 100 Index over the same period. In addition, with the proposed final
dividend of 1.50 pence per share, the company has been able to maintain the
annual total dividend of 2.00 pence per share, indicated as the target at the
time of flotation three years ago.
Investment progress
The single biggest element in the rise in shareholder value has been the further
revaluation of Active Hotels, the online hotel reservation system. As reported
at the interim stage, Active Hotels has moved sharply into profit and its
performance continues to improve to the point where it is now market leader in
the UK for online reservations, as well as being a major player in the rest of
Europe, and in particular in France. In addition, a general recovery in
technology stocks as well as improved trading prospects have led to an increase
in the value of both the AIM quoted technology businesses and the portfolio of
international quoted technology stocks.
Other than an investment of £350,000 in City Centres Breweries, a new company
formed to purchase the Smiles Brewery in Bristol, other investments during the
year have been restricted to existing companies in order to encourage further
growth. These comprise £300,000 into Automotive Technik, the manufacturer of
military vehicles which has seen a substantial growth in its order book,
£480,000 into Careforce Group to fund further acquisitions within the fragmented
domiciliary care sector, and £93,000 into Peakdale Molecular, to fund the
expansion of its product portfolio. In addition, a further £133,000 was invested
in The Q Garden Company, to support its operations in a difficult trading
environment.
Board change
Following his appointment to OFCOM, Kip Meek decided that it would be
appropriate to retire from the board of the VCT. I would like to thank him on
behalf of the board and shareholders for the excellent contribution that he has
made over the last 3 years. He has been replaced on the board by Patrick Reeve,
managing director of Close Venture Management, the manager of Close Technology &
General VCT.
Results and dividend
As at 31 December 2003, following revaluations, the net asset value of the
Company was £15.4 million or 107.8 pence per share, compared to net assets at 31
December 2002 of £10.7 million or 74.8 pence per share. Net income after
taxation was £273,000 (2002: £368,000) for the year enabling the board to
declare a net final dividend of 1.50 pence per share, making a total dividend of
2.00 pence per share for the year (2002: 2.00 pence). The dividend will be paid
on 22 April 2004 to shareholders on the register on 26 March 2004.
Outlook
Overall, we are encouraged by the progress of the Company and the prospects for
the investment portfolio look promising for the year ahead.
Dr Neil Cross
Chairman 11 March 2004
THE PORTFOLIO OF INVESTMENTS
Qualifying At 31 December 2003
investments
Percentage Invested Unrealised Total Total Movement
of equity at cost appreciation/ value value at in value
held (depreciation) 31 December
2002
£'000 £'000 £'000 £'000 £'000
Technology
-----------
Active Hotels
Limited 6.2%(i) 500 3,747 4,247 500 3,747
Intelligent
Environments Plc* 6.0% 297 447 744 297 447
Cassium
Technologies
Limited 15.4% 500 19 519 250 269
Advanced Medical
Solutions Group Plc* 2.4% 300 88 388 318 70
AIT Group Plc* 1.1% 310 25 335 96 239
Deltex Medical
Group Plc* 2.4% 219 90 309 65 244
Pilat Media
Global Plc* 1.7% 150 98 248 124 124
Tepnel Life
Sciences Plc* 1.2% 328 (136) 192 135 57
Peakdale
Molecular
Limited 7.7% 360 (180) 180 225 (45)
sparesFinder
Limited 5.2% 500 (375) 125 125 -
Warthog plc* 0.4% 90 (76) 14 31 (17)
OneclickHR Plc* 0.2% 58 (48) 10 9 1
---------------------------------------------------
Total 3,612 3,699 7,311 2,175 5,136
Non-technology
---------------
Careforce
Group Limited 10.0% 1,080 61 1,141 613 528
Consolidated
Communications
Management Limited 10.8% 1,000 90 1,090 1,070 20
Automotive
Technik
(Holdings) Limited 14.3% 1,020 (99) 921 728 193
Leisure Links
International
Limited 22.8% 950 (232) 718 673 45
Peakdale Molecular
Limited n/a 533 79 612 575 37
The Q Garden
Company Limited 33.3% 1,134 (600) 534 955 (421)
City Centres
Breweries Limited 12.5% 350 - 350 - 350
City Screen
(Liverpool) Limited 4.5% 50 - 50 50 -
---------------------------------------------------
Total 6,117 (701) 5,416 4,664 752
Total qualifying
investments 9,729 2,998 12,727 6,839 5,888
=======================================================
* AIM listed investments
(i) Fully diluted stake
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 both hotel operators, principally in the UK and France, and
internet based distribution partners.
Intelligent Environments Group PLC
iE is a leading provider of integrated e-finance products for the credit and
wealth management market. The company is listed on AIM.
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.
Advanced Medical Solutions Group PLC
Advanced Medical Solutions Group, designs, develops and manufactures products
for the advanced wound care market. The company is listed on AIM.
AIT Group Plc
AIT Group is listed on AIM, and is a provider of IT solutions principally for
the retail financial sector.
Deltex Medical Group Plc
Deltex develops, manufactures and markets the 'CardioQ', an oesophageal device
which monitors in real time the heart's response to medical treatment. Deltex is
listed on AIM.
Pilat Media Global Plc
The company develops, markets and supports business operations software for the
media industry. It is listed on AIM.
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 principally engaged in research, processing and the supply
of chemical compounds to the major pharmaceutical companies. It operates from a
substantial freehold site in Chapel-en-le-Frith, Derbyshire.
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 sparesFinder shared database of inventories.
Clients using the system include BAT, BP and Alsthom.
Warthog plc
Warthog is listed on AIM and is a leading independent games software developer.
OneclickHR Plc
OneclickHR is listed on AIM, it develops and markets a range of human resources
software under the 'Vizual' brand.
Careforce Group Limited
Careforce Group 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. Careforce currently operates an expanding network
of branches around the UK.
Consolidated Communications Management Limited
Consolidated Communications is a management buy-out of an established public
relations agency, formed in 1991, with a broad range of 'blue-chip' clients. In
November 2001 the company was named 'Consultancy of the Year' at the PR Week
Awards.
Automotive Technik (Holdings) Limited
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.
Leisure Links International Limited
Leisure Links owns and operates the Test Valley golf course in Hampshire.
Peakdale Molecular Limited
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.
The Q Garden Company Limited
The Q Garden Company owns and operates a chain of garden centres based in the
South of England. It currently owns three centres located in Fareham
(Hampshire), Chinnor (Oxfordshire) and Stow-on-the-Wold (Gloucestershire).
City Centres Breweries Limited
City Centres Breweries was formed to purchase the Smiles Brewery in central
Bristol and thereafter to provide a base for building up an integrated brewery
and pub business based in the South West.
City Screen (Liverpool) Limited
The Company was formed to own and operate a three screen 'art house' cinema in
the centre of Liverpool, which opened in February 2003.
Non-qualifying portfolio
Company Country of Listing Share Cost Unrealised Value
incorporation exchange Holding appreciation/
(depreciation)
£000's £000's £000's
Digital River Inc USA Nasdaq 9,300 29 86 115
Nortel Networks Corp Canada NYSE 42,200 164 (64) 100
Agere Systems Inc - A USA NYSE 58,500 114 (14) 100
Technomatix Technologies Ltd USA Nasdaq 12,200 74 17 91
Melexis N.V. Belgium Esdaq 12,000 57 21 78
Amdocs Ltd USA NYSE 12,000 88 (10) 78
Ascential Software Corp USA Nasdaq 5,000 32 41 73
Ericsson LM-B Sweden Stockholm 64,000 80 (16) 64
Applied Materials Inc USA Nasdaq 5,000 49 14 63
Infovista S.A. France Paris 35,000 40 20 60
Veritas Software Corp USA Nasdaq 2,500 33 19 52
Wind River Systems Inc USA Nasdaq 10,000 36 13 49
Taiwan Semiconductor MFG Taiwan NYSE 8,553 45 4 49
Verisign Inc USA Nasdaq 5,100 29 17 46
Orbotech Ltd Israel Nasdaq 3,300 60 (16) 44
Chordiant Software Inc USA Nasdaq 13,188 17 23 40
Ceva Inc USA Nasdaq 6,400 15 22 37
Take-Two Interactive
Software Inc UK Nasdaq 2,250 32 4 36
Network Associates Inc USA NYSE 4,000 42 (8) 34
Micronic Laser Systems AB Sweden Stockholm 4,900 14 18 32
UTStarcom, Inc USA Nasdaq 1,450 24 6 30
Parametric Technology Corp USA Nasdaq 13,000 23 6 29
TTI Telecom International Israel Nasdaq 10,471 36 (8) 28
Ciena Corp USA Nasdaq 7,500 22 5 27
Citrix Systems Inc USA Nasdaq 2,300 12 15 27
Brooks Automation Inc USA Nasdaq 1,750 23 - 23
Qiagen N.V. Netherlands Frankfurt 3,300 51 (28) 23
Marimba Inc USA Nasdaq 7,300 22 - 22
BEA Systems Inc USA Nasdaq 2,400 18 (1) 17
Kintera Inc USA Nasdaq 2,000 9 5 14
Parsytec Germany Frankfurt 4,100 9 3 12
DMX Technologies Group
Limited Bermuda Singapore 33,000 8 - 8
OneClickHR Plc UK LSE AIM 85,500 43 (36) 7
Peregrine Systems Inc USA Nasdaq 149 74 (72) 2
AIT Group Plc UK LSE AIM 1,000 1 - 1
Intelligent Environments Plc UK LSE AIM 6,100 0.5 - 0.5
Pilat Media Global Plc UK LSE AIM 1,000 0.5 - 0.5
--------------------------------
Total non-qualifying
investments 1,426 86 1,512
==================================
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 2003.
Listing exchange Currency Closing rate
31 December 2003
Nasdaq, NYSE US$ 1.790
Frankfurt, Amsterdam, Paris EUR 1.419
Stockholm SEK 12.880
Singapore Malaysian$ 3.040
LSE AIM GBP£ 1.000
Statement of Total Return
(incorporating the revenue account)
Year ended Year ended
31 December 2003 31 December 2002
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
-------------------------------------------------------------------------------
Gains/(losses) on
investments - 4,959 4,959 (3,622) (3,622)
Income 556 - 556 632 - 632
Investment management
fees (93) (278) (371) (67) (202) (269)
Other expenses (120) - (120) (106) - (106)
--------------------------------------------------------------------------------
Return on ordinary
activities before
taxation 343 4,681 5,024 459 (3,824) (3,365)
Taxation on ordinary
activities (70) 58 (12) (91) 40 (51)
--------------------------------------------------------------------------------
Return attributable to
equity 273 4,739 5,012 368 (3,784) (3,416)
shareholders
Dividends (286) - (286) (287) - (287)
--------------------------------------------------------------------------------
Transfer (from)/ to
reserves (13) 4,739 4,726 81 (3,784) (3,703)
================================================================================
Return per share 1.9p 33.1p 35.0p 2.6p (26.6)p (24.0)p
The revenue columns of this statement represent 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 year.
Balance Sheet
31 December 31 December
2003 2002
£'000 £'000
Fixed asset investments
Qualifying 12,727 6,839
Non-qualifying 1,512 2,443
----------------------------
Total fixed asset investments 14,239 9,282
Current assets
Debtors 70 8
Cash 1,510 1,688
----------------------------
1,580 1,696
Creditors: amounts falling due within one year (385) (257)
----------------------------
Net current assets 1,195 1,439
---------------------------
Net assets 15,434 10,721
============================
Represented by:
Called up share capital 7,160 7,170
Share premium 165 165
Special reserve 6,245 6,258
Capital redemption reserve 35 25
Capital reserve
realised (936) (622)
unrealised 2,680 (2,373)
Revenue reserve 85 98
---------------------------
Total equity shareholders' funds 15,434 10,721
===========================
Net asset value per share 107.8p 74.8p
The financial statements were approved by the Board of Directors on 11 March
2004.
Signed on behalf of the Board
Dr. Neil Cross
Chairman
Cash flow Statement
Year ended Year ended
31 December 2003 31 December 2002
£'000 £'000
--------------------------------------------------------------------------------
Operating activities
Investment income received 341 383
Deposit interest received 35 54
Investment management fees paid (273) (249)
Other cash payments (119) (112)
--------------------------
Net cash (outflow) /inflow from
operating activities (16) 76
Taxation
UK corporation tax paid (52) (10)
Capital expenditure and financial
investments
Purchase of qualifying investments (1,501) (4,089)
Purchase of non-qualifying investments (312) (5,053)
Disposals of qualifying investments 85 -
Disposals of non-qualifying investments 1,846 3,671
--------------------------
Net cash inflow/(outflow) from investing
activities
118 (5,471)
Equity dividends paid
Dividends paid on ordinary shares (215) (285)
--------------------------
Net cash outflow before financing (165) (5,690)
Financing
Issue of ordinary shares net of expenses - 179
Cancellation of share premium - -
Cancellation of share capital (13) (9)
--------------------------
Net cash (outflow)/inflow from financing (13) 170
Cash outflow in the year (178) (5,520)
==========================
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