Interim Results

Close Brothers Venture Cap Tst PLC 14 December 2004 14 December 2004 CLOSE BROTHERS VENTURE CAPITAL TRUST PLC Interim results for the six months ended 30 September 2004 Close Brothers Venture Capital Trust PLC ('the Company'), managed by Close Venture Management Limited, today announces interim results for the six months ended 30 September 2004. Financial Highlights: Ordinary Shares 'C' Shares pence per share pence per share Gross dividend for the year to 31 March 1997 5.00 - Gross dividend for the year to 31 March 1998 6.00 5.00 Gross first and second interim dividends and net final dividend for the year to 31 March 1999 7.75 6.25 Net dividend for the year to 31 March 2000 8.55 4.50 Net dividend for the year to 31 March 2001 7.50 7.50 Net dividend for the year to 31 March 2002 7.50 7.50 Net dividend for the year to 31 March 2003 8.00 8.00 Net dividend for the year to 31 March 2004 8.50 8.50 Net dividend for the six months to 30 September 2004 4.25 4.25 ----- ------ Total dividends 63.05 51.50 Net asset value per share at 30 September 2004 113.27 113.27 ------ ------ Total 176.32 164.77 ======= ======== Note 1: following the cessation of tax credits on 5 April 1999, dividends paid by VCTs no longer benefit from tax free tax credits for qualifying UK shareholders. Note 2: the above table does not take into account the income tax relief of 20% nor the capital gains tax deferral relief of 40% upon subscription for shares in the Company. For further information, please contact: Patrick Reeve/ Ole Bettum John West/Clemmie Carr Close Venture Management Tavistock Communications Tel: 020 7422 7830 Tel: 020 7920 3150 www.closeventures.co.uk Notes to Editors: 1) Close Brothers Venture Capital Trust PLC is managed by Close Venture Management Limited which is a subsidiary of Close Brothers Group plc and is regulated by the FSA. 2) The financial information set out in the announcement does not constitute the Company's statutory accounts for the six months ended 30 September 2004 or 2003. The financial information for the year ended 31 March 2004 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 The principal event during the six months to 30 September 2004 was the sale shortly after the year end of the five homes for people with learning disabilities. As reported in my Chairman's statement in the annual report and accounts, this realised a profit of £4 million on cost of £9.9 million. This was accounted for in the year end accounts as an unrealised profit. The realisation further boosts the level of realised capital reserves that are available for distribution. The Company made one new investment of £900,000 during the period, in CS (Greenwich) Limited, as part of a total investment by funds managed or advised by Close Venture Management Limited of £2.5 million. CS (Greenwich) Limited was established to redevelop a redundant cinema in the heart of Greenwich in London into a five-screen art house cinema with bars and restaurant in conjunction with City Screen Limited which operates the cinemas owned by City Screen (Cambridge) Limited and City Screen (Liverpool) Limited in which the Company is already an investor. The Greenwich cinema is expected to re-open in the autumn of 2005. In addition, the Company has made follow on investments of £1 million in Kew Green VCT (Stansted) Limited, which is developing an Express by Holiday Inn hotel at Stansted Airport; £1 million in Barleycroft Care Home Limited, which is developing a care home in Romford; £925,000 in Applecroft Care Home Limited, which owns a care home in Dover; and £140,000 in The Bold Pub Company Limited, to enable it to buy a further pub in the North West of England. Subsequent to the half year a further £860,000 has been invested in the Bold Pub Company Limited, as part of additional investment of £3.5 million by funds managed or advised by the Manager to enable it to acquire two further portfolios of pubs, taking the total number of pubs owned by it to 26. The principal change in valuation over the six months has been to Premier VCT (Mailbox) Limited, which operates the Days Hotel in the Mailbox development in the centre of Birmingham. A restructuring of the company in conjunction with the acquisition of the shares belonging to our previous partner, Premier Hotels, by our new partner, has enabled an uplift of over £700,000 in the valuation of the Company's investment. Additionally the Company's holding in the Bold Pub Company was revalued upwards at the time of the additional investment following strong performance. The other changes in valuation since 31 March 2004 reflect changes in the underlying companies' net current assets. In the residential property development sector, we have seen some slowing in the rate of sales but dividends were received from three out of four of the investee companies during the period. A summary of the Company's investments at 30 September 2004 is set out below: Investee Investment at Revaluation Investment Reserved Revaluation company cost at valuation for investment since 31 March 2004 £ 000's £ 000's £ 000's £ 000's £ 000's Hotels ------ Premier VCT (Mailbox) Ltd 4,600 1,807 6,407 - 719 Kew Green VCT (Stansted) 3,000 - 3,000 2,000 - Ltd Care Homes ---------- Applecroft Care Home Ltd 1,925 - 1,925 - - Barleycroft Care Home Ltd 2,000 - 2,000 275 - Leisure ------- City Screen (Cambridge) Ltd 1,210 158 1,368 - 32 Odyssey Glory Mill Ltd 4,500 912 5,412 - (36) City Screen (Liverpool) Ltd 200 (25) 175 - (6) CS(Greenwich) Ltd 900 - 900 - - The Bold Pub Company Ltd 400 49 449 860 49 Residential Development ------------- Chase Midland VCT Ltd 1,600 - 1,600 - - Country & Metropolitan VCT Ltd 3,000 - 3,000 - - Prime VCT 2,200 - 2,200 - - Ltd Youngs VCT 1,200 - 1,200 - - Ltd Total at 30 September 2004 26,735 2,901 29,636 3,135 758 Total at 31 March 2004 32,710 6,180 38,890 5,340 - Results and dividend As at 30 September 2004 the net asset value of the Company was £40.64 million or 113.3 pence per share, which compares with a net asset value at 31 March 2004 of £40.58 million or 113.1 pence per share. Net income before taxation was £1.46 million (2003: £1.38 million). In view of the level of realised capital reserves and the relatively predictable levels of revenue the Board has decided to make the levels of the interim and final dividends more equal. Accordingly, within the Company's broader aim of a progressive dividend policy, the board has declared a net interim dividend of 4.25 pence per share, including 1.45 pence out of realised capital reserves, for the six months to 30 September 2004 (2003: 3.00 pence per share). The interim dividend will be paid on 7 January 2005 to shareholders registered on 24 December 2004. David Watkins Chairman 14 December 2004 Statement of total return (incorporating the profit and loss account) for the six months to 30 September 2004 Unaudited Unaudited Audited six months to six months to year to 30 September 2004 30 September 2003 31 March 2004 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 -------------------------------------------------------------------------------------------------------- Realised gains on investments - 4,037 4,037 - - - - 21 21 Less: unrealised appreciation provided for in previous periods - (4,037) (4,037) - - - - - - Unrealised gains/(losses) on investments - 758 758 - (39) (39) - 2,950 2,950 Income 1,693 - 1,693 1,694 - 1,694 3,438 - 3,438 Investment management fees (97) (292) (389) (223) (290) (513) (419) (478) (897) Other expenses (129) - (129) (62) (58) (120) (151) (131) (282) Return on ordinary activities before interest and tax 1,467 466 1,933 1,409 (387) 1,022 2,868 2,362 5,230 Finance charge (5) (16) (21) (27) - (27) (54) - (54) Return on ordinary activities before tax 1,462 450 1,912 1,382 (387) 995 2,814 2,362 5,176 Tax on ordinary activities (422) 92 (330) (390) 97 (293) (802) 183 (619) Return attributable to Shareholders 1,040 542 1,583 992 (290) 702 2,012 2,545 4,557 Dividends (1,004) (520) (1,524) (1,004) (72) (1,076) (1,633) (1,417) (3,050) Transfer to/(from) reserves 36 22 58 (12) (362) (374) 379 1,128 1,507 ====== ====== ====== ====== ====== ====== ====== ====== ====== Return per ordinary share 2.9p 1.5p 4.4p 2.8p (0.8)p 2.0p 5.6p 7.1p 12.7p All revenue and capital items in the above statement derive from continuing operations. Balance sheet As at 30 September 2004 Unaudited Unaudited Audited 30 September 2004 30 September 2003 31 March 2004 £'000 £'000 £'000 Fixed asset investments Qualifying investments 29,636 32,724 38,890 Non-qualifying investments 62 - - ------ ------ ------ Total fixed asset investments 29,698 32,724 38,890 Current assets Debtors 258 428 225 Cash at bank and in hand 12,808 8,667 5,735 ------ ----- ----- 13,066 9,095 5,960 Creditors: due within one year (2,125) (2,119) (3,269) ------- ------- ------- Net current assets 10,941 6,976 2,691 ------ ----- ----- Creditors: due greater than one year - (1,000) (1,000) ------ ------- ------- Net assets 40,639 38,700 40,581 ====== ====== ====== Represented by: Called up share capital 17,939 17,939 17,939 Special reserve 14,110 14,111 14,110 Capital redemption reserve 1,914 1,914 1,914 Capital reserve - realised 3,154 1,917 222 - unrealised 2,901 2,625 5,811 Revenue reserve 621 194 585 ------ ------ ------ Total equity shareholders' funds 40,639 38,700 40,581 ====== ====== ====== Net asset value per ordinary share 113.3 pence 107.9 pence 113.1 pence This interim report was approved by the Board of Directors on 14 December 2004. Signed on behalf of the Board of Directors by David Watkins Chairman Cash flow statement for the six months to 30 September 2004 Unaudited Unaudited Audited Six months to Six months to Year to 30 September 30 September 31 March 2004 2003 2004 £'000 £'000 £'000 ----------------------------------------------------------------------------- Operating activities Investment income received 1,399 1,489 3,189 Dividend income received 65 - 208 Deposit interest received 190 170 287 Other income received 12 163 - Investment management fees paid (527) (201) (572) Management performance fee paid (505) (351) (351) Other cash payments (121) (108) (202) ------ ------ ------- Net cash inflow from operating activities 513 1,162 2,559 ------ ------ ------- Finance interest paid (31) (26) (53) ------ ------ ------- Taxation UK corporation tax paid (355) - (150) VAT paid (33) (20) 1 VAT received 1 28 - ------ ------ ------- (387) 8 (149) Investing activities Purchase of investments (4,026) (1,170) (4,428) Disposals of investments 13,977 - 89 Disposals of non-qualifying investments - - 100 ------ ------ ------- Net cash inflow/(outflow) from investing activities 9,951 (1,170) (4,239) ------ ------ ------- Dividends paid Equity dividends paid on ordinary shares (1,973) (1,866) (2,942) ------- ------ ------- Net cash inflow/(outflow) before financing 8,073 (1,892) (4,824) Financing Redemption of own shares - (92) (92) Loan repayment (1,000) - - -------- ------ ------- (1,000) (92) (92) -------- ------- ------- Increase/(decrease) in cash and cash equivalents 7,073 (1,984) (4,916) ======== ======== ======= This information is provided by RNS The company news service from the London Stock Exchange

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