Interim Results
Close Technology & General VCT PLC
14 September 2004
14 September 2004
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 2004.
Financial Highlights:
•NAV per Ordinary Share of 107.4 pence (2003: 83.0 pence)
•Interim dividend of 1.0 pence per Ordinary Share (2003: 0.5 pence)
Dr Neil Cross, Chairman, commented: 'The six months to 30 June 2004 have been
encouraging for the Company. Net assets per share have been steady at just over
107 pence, while there has been a recovery in net revenue enabling the Company
to declare an interim dividend of 1 penny per share compared with 0.5 pence for
the six months to 30 June 2003.
Performance has continued to be strong at the Company's largest investment by
value, Active Hotels, with profits running at over twice last year's levels,
though a general decline in valuation in the quoted sector have led us not to
alter the investment's value from its level at the end of 2003. Automotive
Technik is also performing well, with a substantial increase in its order book
leading to an increase in holding value. These two increases have been balanced
by a decline in the value of the Company's international quoted and AIM
portfolios, and partial provisions against Consolidated Communications and Q
Gardens.'
For further information, please contact:
Patrick Reeve/ Ole Bettum Justin Griffiths/ John West
Close Venture Management Tavistock Communications
Tel: 020 7422 7830 Tel: 020 7920 3150
Notes to Editors:
1) Close Technology & General VCT PLC is managed by Close Venture Management
limited.
2) Close Venture Management Limited is a subsidiary of Close Brothers Group
PLC 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 2004 or 2003. The financial information for the year ended 31 December
2003 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 2004 have been encouraging for the Company. Net
assets per share have been steady at just over 107 pence, while there has been
a recovery in net revenue enabling the Company to declare an interim dividend
of 1 penny per share compared with 0.5 pence for the six months to 30 June 2003.
Performance has continued to be strong at the Company's largest investment by
value, Active Hotels, with profits running at over twice last year's levels,
though a general decline in valuation in the quoted sector has led us not to
alter the investment's value from its level at the end of 2003. Automotive
Technik is also performing well, with a substantial increase in its order book
leading to an increase in holding value. These two increases have been balanced
by a decline in the value of the Company's international quoted and AIM
portfolios, and partial provisions against Consolidated Communications and Q
Gardens.
£527,000 was invested in qualifying companies during the period. This was
principally accounted for by investments in Grosvenor Healthcare, a business
providing healthcare outsourcing services to large corporates and Bold Pub
Company, which owns and operates a group of public houses in the North West of
England. Our holding in Leisure Links International was sold shortly after the
period end, at a price equal to the prevailing written down value, realising a
loss of £210,000.
Results and dividend
As at 30 June 2004 the net asset value of the Company was £15.05 million (30
June 2003: £11.90 million), equivalent to 107.4 pence per share (30 June 2003:
83.0p per share). Net income after taxation was £146,000 for the period enabling
the board to declare a net interim dividend of 1.0 pence per share (30 June
2003: 0.5p per share). Dividends will be payable on 21 October 2004 to those
shareholders registered on 24 September 2004.
Dr N E Cross
Chairman 14 September 2004
Portfolio Summary
The following is a summary of the qualifying investments at 30 June 2004.
Technology Investments Invested to Valuation at
====================== date at cost 30 June 2004
£'000 £'000
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. 500 4,247
Advanced Medical Solutions PLC (AIM Listed)
Advanced Medical Solutions Group
designs, develops and manufactures
products for the advanced wound care
market. 300 300
AIT Group PLC (AIM Listed)
AIT Group is a provider of IT
solutions principally for the retail
financial sector. 310 374
Bond International PLC (AIM Listed)
Bond International provides
software, hardware and related
support services, principally to the
recruitment industries. 70 83
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 as well as
providing high level technology
consulting to the telecoms and
financial sectors. 500 619
Deltex Medical Group PLC (AIM Listed)
Deltex develops, manufactures and
markets the 'CardioQ', an
oesophageal device which monitors in
real time the heart's response to
medical treatment. 101 181
Intelligent Environment Group PLC (AIM Listed)
iE is a leading provider of
integrated e-finance for the credit
and wealth management market. 270 578
OneClickHR PLC (AIM Listed)
OneClickHR develops and markets
human resources software under the
'Vizual' brand. 58 7
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. 360 180
Pilat Media Global PLC (AIM Listed)
The company develops, markets and
supports business operations
software for the media industry. 168 306
sparesFinder Limited
sparesFinder has developed a
software suite which enables
multinational, multi-site customers
to trace and control their
inventory. 500 158
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. 328 127
Warthog PLC (AIM Listed)
Warthog is a leading independent
games software developer. 90 3
-------------------------------------------------------------------------------
Total qualifying technology
investments 3,555 7,163
===============================================================================
Percentage of portfolio on cost 31%
Unquoted Non-Technology Investments Invested to Valuation at
------------------------------------ date at cost 30 June 2004
£'000 £'000
Automotive Technik Holdings Limited
Automotive Technik 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. 1,020 1,262
Careforce Staffing Group Limited
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. 1,080 1,158
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. 350 298
City Screen (Liverpool) Limited
City Screen was formed to own and
operate a three screen 'art house'
cinema in the centre of Liverpool,
which opened in February 2003. 50 45
Consolidated Communications Management Limited
Consolidated Communications is a
management buy-out of an established
public relations company with a
broad range of 'blue chip' clients. 1,000 988
Grosvenor Health Limited
Grosvenor Health is an occupational
health provider to major corporates. 275 277
Leisure Links International Limited
Leisure Links was formed to manage
and operate golf clubs. It
currently owns the Test Valley Golf
Course near Basingstoke. 950 740
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. 533 631
The Bold Pub Company Limited
The Bold Pub Company is a management
buy-in of a freehold pub operator in
the North West of England. 100 111
The Q Garden Company Limited
The Q Garden Company operates a
chain of garden centres based in the
South of England. 1,167 250
-------------------------------------------------------------------------------
Total unquoted qualifying
non-technology investments 6,525 5,760
===============================================================================
Percentage of portfolio on cost 57%
Total qualifying investments 10,080 12,923
===============================================================================
Total percentage of portfolio on
cost 88%
Non-qualifying technology investments
Ten largest holdings by value of non-qualifying international quoted technology
stocks.
Company Sector Invested to Valuation at
date at cost 30 June 2004
£'000 £'000
Digital River Inc E-commerce outsourcing 20 117
Infovista S.A. Data processing 40 94
Nortel Networks
Communications
Corp Software 125 88
Tecnomatix
Technologies
Ltd Software 74 88
Ericsson B Telecommunications 64 84
Amdocs Limited Software 88 80
Melexis N.V. Microelectronics 51 68
Wind River Software applications
Systems Inc development 36 65
Verisign Inc Internet and telecommunications
services 29 56
Applied Materials Inc Semiconductor 48 54
-------------------------------------------------------------------------------
575 794
27 other non-qualifying international quoted
technology stocks 779 632
-------------------------------------------------------------------------------
Total non-qualifying
investments 1,354 1,426
================================================================================
Total percentage of
portfolio on cost 12%
Statement of total return
(incorporating the profit and loss account)
for the six months to 30 June 2004
---------------------------------------------------------------------------------
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2004 30 June 2003 31 December
2003
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
------------------------------------------------------------------------------------------
(Losses)/
gains on
investments - (17) (17) - 1,267 1,267 - 4,959 4,959
Investment
income 305 - 305 198 - 198 556 - 556
Investment
management
fees (50) (150) (200) (37) (112) (149) (93) (278) (371)
Other
expenses (64) - (64) (59) - (59) (120) - (120)
------------------------------------------------------------------------------------------
Return on
ordinary
activities
before tax 191 (167) 24 102 1,155 1,257 343 4,681 5,024
Tax on
ordinary
activities (45) 38 (7) (20) 22 2 (70) 58 (12)
------------------------------------------------------------------------------------------
Return
attributable
to equity
shareholders 146 (129) 17 82 1,177 1,259 273 4,739 5,012
Dividends (138) - (138) (72) - (72) (286) - (286)
------------------------------------------------------------------------------------------
Transfer
to/(from)
reserves 8 (129) (121) 10 1,177 1,187 (13) 4,739 4,726
=========================================================================================
Return per
share 1.0p (0.9)p 0.1p 0.6p 8.2p 8.8p 1.9p 33.1p 35.0p
-------------------------------------------------------------------------------------------
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.
No operations were acquired nor discontinued during the period.
Balance sheet
as at 30 June 2004
-------------------------------------------------------------------------------
Unaudited Unaudited Audited
30 June 2004 30 June 2003 31 December 2003
£'000 £'000 £'000
-------------------------------------------------------------------------------
Fixed asset investments
Qualifying investments
----------------------
Unquoted technology 5,204 1,933 5,071
AIM technology stocks 1,959 1,691 2,240
Unquoted non-technology 5,760 4,657 5,416
-------------------------------------------------------------------------------
Total qualifying investments 12,923 8,281 12,727
Non-qualifying investments
-------------------------
Quoted international
technology stocks 1,426 1,369 1,512
Floating rate notes - 1,501 -
-------------------------------------------------------------------------------
Total non-qualifying
investments 1,426 2,870 1,512
Total investments 14,349 11,151 14,239
Current assets
Debtors 55 64 70
Cash: short term money
market deposits 993 916 1,510
-------------------------------------------------------------------------------
1,048 980 1,580
Creditors: due within one
year (351) (236) (385)
--------------------------------------------------------------------------------
Net current assets 697 744 1,195
--------------------------------------------------------------------------------
Net assets 15,046 11,895 15,434
===============================================================================
Represented by:
Share capital 7,004 7,160 7,160
Share premium account 165 165 165
Special reserve 5,978 6,245 6,245
Capital redemption reserve 191 35 35
Capital reserve
realised (777) (702) (936)
unrealised 2,392 (1,116) 2,680
Revenue reserve 93 108 85
-------------------------------------------------------------------------------
Total equity shareholders'
funds 15,046 11,895 15,434
================================================================================
Net asset value per share 107.4p 83.0p 107.8p
--------------------------------------------------------------------------------
Cash flow statement
For the six months to 30 June 2004
-------------------------------------------------------------------------------
Six months to Six months to Year to
30 June 2004 30 June 2003 31 December 2003
£'000 £'000 £'000
-------------------------------------------------------------------------------
Operating activities
Investment income received 160 140 341
Deposit interest received 10 21 35
Investment management fees
paid (235) (93) (273)
Other cash payments (91) (68) (119)
--------------------------------------------------------------------------------
Net cash flow from operating
activities (156) - (16)
Taxation
UK corporation tax
received/(paid) 4 - (52)
Investing activities
Purchase of investments (762) (744) (1,813)
Disposal of investments 801 129 1,931
--------------------------------------------------------------------------------
Net cash flow from investing
activities 39 (615) 118
Equity dividends paid
Dividends paid on ordinary
shares (212) (144) (215)
--------------------------------------------------------------------------------
Net cash outflow before
financing (325) (759) (165)
Financing
Redemption of own shares (192) (13) (13)
--------------------------------------------------------------------------------
Net cash outflow from
financing (192) (13) (13)
--------------------------------------------------------------------------------
Decrease in cash (517) (772) (178)
--------------------------------------------------------------------------------
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