Annual Financial Report

RNS Number : 4776R

Intl. Biotechnology Trust PLC

28 October 2013

 



INTERNATIONAL BIOTECHNOLOGY TRUST PLC (the "Company")

Annual Financial Report Announcement of Audited Results for the year ended 31 August 2013

This announcement contains regulated information.

The information contained in this Annual Financial Report Announcement, including the 31 August 2012 comparatives, has been prepared in accordance with the applicable UK Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" (issued in January 2009 and adopted early).  The results for the year ended 31 August 2013 are audited but do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The statutory accounts have not yet been delivered to the Registrar of Companies. Full statutory accounts for the year ended 31 August 2012 included an unqualified audit report and have been filed with the Registrar of Companies.

Financial Summary

	31 August	31 August	%
	2013	2012	Change
Group Performance
Total equity (£'000)	172,672	128,922	33.9
Ordinary shares in issue# ('000)	55,158	55,458	(0.5)
Net asset value ("NAV") per share	313.05p	232.47p	34.7
Share price	269.00p	204.50p	31.5
Share price discount	(14.1)%	(12.0)%
Ongoing charges*	1.70%	1.86%
Ongoing charges including performance fee	1.70%	1.86%
Index Values
NASDAQ Biotechnology Index ("NBI") (Sterling-adjusted)	1,307.66	892.38	46.5
FTSE All-Share Index (Total Return)	5,050.57	4,247.77	18.9

^#Excludes those held in treasury (31 August 2013: 600,000; 31 August 2012: 550,000).

* Calculated in accordance with The Association of Investment Companies ("the AIC") guidance. Based on total expenses excluding finance costs and performance fee and expressed as a percentage of average daily net assets. The ratio including performance fee has also been provided, in line with the AIC recommendations.

Chairman's Statement

Total Return to 31 August 13	1yr	3yr	5yr
IBT NAV	34.7%	101.7%	94.7%
IBT Share Price	31.5%	101.1%	94.6%
NBI	46.5%	151.4%	174.3%
FTSE All-Share Index	18.9%	40.5%	42.6%

Investment Performance

I am pleased to report to you a substantial positive return for the year ended 31 August 2013. The NAV increased by 34.7% to 313.05p per share. With a small widening of the discount to 14.1% from 12.0%, the Company's share price increased by 31.5%. By comparison, the FTSE All-Share Index produced a total return of just 18.9% over the same period.

For the second year in succession, positive absolute performance was generated from both the quoted and unquoted parts of the portfolio, with increases of 37.7% and 17.5% recorded, respectively. Investor enthusiasm for the biotechnology sector continued in the period against a backdrop of positive price gains for the broader stock market.

The performance of the quoted portfolio, whilst encouraging, did not keep pace with the underlying NBI, which increased 46.5%.  The strong unquoted portfolio performance of 17.5% was assisted by the upward revaluation of four investments already exited for which the Company retains rights to receive future contingent performance-based payments.  The re-evaluation of the current fair carrying value of these contingent receipts has been undertaken in accordance with International Financial Reporting Standards ("IFRS") and the International Private Equity and Venture Capital Valuation Guidelines ("IPEV") - December 2012 edition - which we believe give a better estimate of fair value than our previous approach, which was to value them at close to zero.

Share buybacks during the period of £0.7m added 0.03p per share to the NAV, while other adjustments, including management and other expenses, reduced the NAV by 4.0p per share.

Currency movements had a positive impact of £4.9m or 8.8p per share. The Board regularly reviews the position but the present policy is not to hedge the currency exposure resulting from the Company's largely US Dollar denominated investments.

Share Buybacks

During the year under review, the Company repurchased a total of 300,000 Ordinary shares into treasury (2012: 550,000) representing 0.6% of the issued share capital at the start of the year. At year end there were 55,157,663 Ordinary shares in issue and 600,000 held in treasury, after 250,000 Ordinary shares held in treasury were cancelled during the year.

It is the intention of the Board to continue its policy of buying back shares whether for cancellation or into treasury, where appropriate, to assist in reducing the volatility of the discount and to enhance the NAV. The Board therefore proposes and recommends that powers to repurchase up to 14.99% of the Company's Ordinary shares for cancellation be renewed for a further period.

Board of Directors

Jim Horsburgh was appointed a Director of the Company on 1 February 2013, and will be presented for election at the forthcoming Annual General Meeting ("AGM"). In accordance with the Company's Articles of Association, the Directors retiring by rotation and seeking re-election at this year's AGM are David Clough and myself.  The Nomination Committee has met to consider the attributes and contributions of the individuals concerned and, following its review, the Board recommends the re-election of the retiring Board members as well as the election of Jim Horsburgh.

Investment Manager

At the end of April 2013 the lead manager of the quoted portfolio, David Pinniger, resigned. The Board wishes him well in his new role.

A new lead manager, Dr Carl Harald Janson, was appointed to SVLS on 2 September 2013. Carl Harald's most relevant previous experience was as principal fund manager of the Carnegie Biotechnology Fund for a period of over six years to March 2007.  He was subsequently an investment manager for Karolinska Development in Stockholm, Sweden.

During the period between the resignation of David Pinniger and the appointment of Carl Harald, the quoted portion of the fund was managed by Ailsa Craig. Ailsa has been a member of the SV Life Sciences Managers LLP team since 2006 and is well known to the Board. She will continue to work closely with Carl Harald.

Prospects

It has been another fruitful year for the Company and we remain very positive about its future prospects. Demand for new, effective therapies continues to grow and the need for innovative drugs, diagnostics and medical devices to prevent and treat debilitating diseases is ever increasing.

We are particularly excited by Carl Harald joining the Investment Manager's team because his performance record and combination of experience and academic background, together with those of the existing team, are a boost to the Company's prospects.

Biotechnology companies, at all stages, are working hard to tackle diseases with high unmet medical needs, and I believe we are only seeing the beginning of a bright future for medical advances. Your Board views the Company as an excellent vehicle for investors to gain exposure to this exciting area.

In recent years, the perception of the biotechnology sector has subtly changed. Previously investors viewed these companies as a hunting ground for larger companies to acquire, capitalising on biotech's innovation and stemming the vast losses from their own patent expirations. That has proved to be true, with M&A activity an on-going driver for the sector. However, we are now seeing a new phenomenon emerging. New companies are growing into established large caps, without an M&A transaction.  Secondly, the older, dominant larger names are reinventing themselves as growth companies again.

The wider investment community is attracted by the sector's strong growth rates. The NBI has outperformed the broader market (S&P500) over the past three years (a Sterling adjusted gain of 151.4% against 64.4%). For the smaller companies, one strong drug launch can be transformational, which for the pharmaceutical giants, would have less impact. I believe this has driven the current rerating as investors realise that growth of the biotechnology sector will continue into the long-term.

The initial public offering ("IPO") window has re-opened in the US and gives your Board further confidence that the industry is going from strength to strength, as attractive unquoted companies now have the opportunity of a flotation to finance further growth. One of the Company's unquoted assets, Ophthotech (ticker: OPHT), came to the market soon after the Company's year end. The IPO was highly successful and significantly oversubscribed. Although performance of the unquoted portfolio has lagged that of the quoted portfolio in recent years, this year's performance on an absolute basis has been good, with a return of 17.5% for that portion of the fund.  I believe that investing across the spectrum of the whole biotechnology industry puts the Company's investors in a strong position to capture value at all levels of innovation whilst diversifying risk.

AIFMD

The Alternative Investment Fund Managers Directive ("AIFMD"), which became UK Law in July 2013, has actively been considered by the Board. Transitional provisions mean that there is a twelve month period from July 2013 in which to act upon the provisions of this new European Directive. The Board has considered the various options for complying with the AIFMD and has agreed in principle to appoint SVLS as the Company's AIFM, who will apply for Financial Conduct Authority ("FCA") authority in time for the July 2014 deadline for compliance.

AGM

This year's AGM will be held on Wednesday, 11 December 2013 at 12.00 pm at BNP Paribas Fortis, 5 Aldermanbury Square, London EC2V 7HR. In addition to the formal process of voting on various shareholder resolutions, the AGM is an opportunity for Shareholders to meet the Board and representatives of the Investment Manager. As in previous years, there will be a presentation from the Investment Manager.

If you have any detailed or technical questions, it would be helpful if you could raise these in advance of the meeting by emailing the Company Secretary at [e-mail] or in writing to BNP Paribas Secretarial Services Limited, 55 Moorgate, London EC2R 6PA. Shareholders who are unable to attend the AGM are encouraged to use their proxy votes.

I look forward to welcoming as many of you as possible to the meeting.

Alan Clifton

Chairman

28 October 2013

 

Investment Manager's Review

Summary

The year ended 31 August 2013 saw the Company's NAV per share increase by 34.7%. The Company's quoted portfolio gained 37.7% over the year, helped by strong equity markets and significantly increased investor interest in the biotechnology sector on the back of strong product development and M&A news flow. The quoted portfolio benefited from two acquisitions during the period - YM Biosciences and Onyx Pharmaceuticals. The unquoted portfolio returned 17.5% over the year, driven by valuation changes to four investments already exited for which the Company retains rights to receive future contingent performance-based payments and an increase in the valuation of Entellus which moved to a revenue multiple based valuation in the period.

Portfolio Overview and Performance

At 31 August 2013, the Company held investments in 75 companies: 46 quoted (representing 81.8% of NAV) and 29 unquoted companies (representing 15.8% of NAV). The remaining 2.4% comprised cash, money market instruments and other net assets. 1.2% of NAV is legally committed to further investments in unquoted companies, while 2.3% is reserved for further investment in unquoted companies.

As mentioned in the Chairman's Statement the performance of the quoted portfolio, did not keep pace with the underlying NBI, which increased 46.5%.  During the year, the quoted portfolio tracked the NBI until April and May 2013.  In these months the portfolio was significantly underweight in three stocks - Regeneron, Vertex and Biogen - which contributed strongly to the performance of the NBI but also the Company's underperformance, which began underperforming in April on a relative basis and ended April and May 7.1% and 8.9% below the Index respectively. The portfolio then tracked the NBI to the year end underperforming by 8.8%.

By subsector, 82% of NAV was invested in the biotechnology sector, 5% in the medical device sector, 3% in the specialty pharmaceuticals sector, 5% in the medical research services sector and 3% in the life sciences tools and diagnostics sector, emphasising the diversified nature of the Company's investments.

Representatives of the Investment Manager sat on the boards of 24 portfolio companies (22 unquoted and two quoted) at the end of the year. An active board seat on private companies remains an important aspect of the Investment Manager's investing activities in early-stage unquoted biotechnology companies.

Quoted Investments

During the year ended 31 August 2013, the combined effect of gains and losses on quoted investments, including currency movements, was to increase the Company's NAV by £42.4m or 76.9p per share. The return for the quoted portfolio over the year was an increase of 37.7%, after taking a currency gain of 1.9% into account.

Broader equity markets performed strongly during the year under review. Against this backdrop, the biotechnology sector performed particularly well, driven by strong earnings growth at attractive valuations, M&A activity and positive clinical and regulatory news flow updates on a number of major new biotechnology product opportunities.

During the year ended 31 August 2013 there were a number of IPOs for biotechnology companies raising $3.0bn. By comparison $1.1bn, $1.0bn and $1.6bn was raised in the calendar years 2012, 2011 and 2010, respectively.

The market for follow-on, or secondary, financings for public biotech companies continues to be robust, with $8.1bn raised calendar year to date by the end of August 2013, compared to $4.5bn, $6.0bn and $3.5bn for calendar years 2012, 2011 and 2010, respectively (source: BioCentury). High quality assets and management teams continue to be able to attract equity capital to fund research and development programmes.

Three companies were acquired during the period under review which positively contributed to NAV performance - YM Biosciences, Life Technologies and Onyx. In February 2013 Gilead Biosciences completed the acquisition of YM Biosciences for $510m, contributing £1.5m to the NAV this year. In April 2013, Thermo Fisher Scientific announced the $13.6bn acquisition of Life Technologies, contributing £1.5m to NAV. In August 2013, Amgen acquired Onyx Pharmaceuticals for $10.4bn, contributing £4.9m to NAV.

The quoted portfolio continues to be structured to include large, mid and small-cap biotechnology, emerging medical device and life science tools and diagnostics companies, which we believe provides the optimal risk-reward structure for long-term capital gains.

Unquoted Investments

During the year ended 31 August 2013, the combined effect of gains and losses on unquoted investments, including currency movements, was to increase the Company's NAV by £4.2m or 7.6p per share. The return for the unquoted portfolio over the year was an increase of 17.5%, including a currency gain of 2.6%.

The main contributor to performance came from the upwards revaluation of four investments (ESBATech, EUSA Pharma,

Ikano Therapeutics and Itero Holdings) which increased the NAV by £3.5m or 6.3p per share. These companies have already

been exited but IBT retains rights to receive future contingent performance based payments.

After these changes, the Company currently recognises £3.5m of fair value for future milestone payments. The receipt of these payments is contingent on pre-agreed, and legally-binding, operational or clinical development milestones being achieved. If paid in full, these milestone payments are estimated to amount to £16.8m on current exchange rates, representing £13.2m of additional unrecognised value beyond that currently incorporated into the NAV.

Two companies reduced unquoted performance; Lux Biosciences and Vantia. Lux Biosciences announced that a pivotal late-stage clinical study for its key drug candidate for the treatment of uveitis (eye inflammation) failed to show any treatment benefit. With no clear way forward for the asset or the company, the value of this investment was written down from £1.3m to zero during the period. In addition the failure of Vantia's phase II B drug trial for nocturia meant that the value of this investment was also written down to zero from £0.6m.

More positively, portfolio companies Entellus and Celerion have performed strongly. Entellus' valuation moved to a trading multiple basis as revenues of this sinus treatment medical device company have developed in the period adding £1.0m to NAV. Celerion - a clinical research organisation - continues to perform strongly and the value of the company's interest has been written up in line with public market comparables adding £0.6m to the NAV during the period.

Since the year end, two noteworthy events have impacted the portfolio. On 25 September 2013, Ophthotech listed on NASDAQ (Ticker: OPHT) at a share price of $22 which added £1.2m to NAV. On 4 September 2013, TransEnterix merged with the OTCBB Listed SafeStitch (Ticker: SFES) alongside a $30m fund raising. The stock remains very thinly traded so the valuation is based on the share price of the fund raising which has added £0.3m to NAV.

Three new unquoted investments were made during the 12 months under review. These were: NCP Holdings, operating as Nordic Consulting Partners, a healthcare IT consulting business; Autifony, a spin-out from GlaxoSmithKline focused on developing drugs to treat hearing loss; and Oncoethix, a development-stage company focused on new cancer drug treatments. Follow-on investments were also made into 14 existing holdings. Investments into all unquoted holdings totalled £3.0m during the year.

At the year end, there were formal commitments to further invest in unquoted companies (based on certain operational or clinical milestone achievements) totalling £2.0m. There are also estimated reserves of an additional £4.1m for existing unquoted portfolio companies.

The life sciences venture capital industry remains challenging; while there are still very many innovative companies in which to make investments in North America and Europe, the environment for raising venture funds to invest and for realising exits, and so making returns for investors, has been weak. Despite this backdrop the Company's unquoted portfolio contains some promising companies with exit possibilities that will reward the patience of investors.

Outlook

The biotechnology sector has had another exceptional year, with impressive absolute and relative returns both against its peers within the healthcare sector, and versus other sectors within the S&P500.

In recent years, the sector has been valued at a discount because of the following factors: A lack of 'risk appetite' during the financial crisis that followed 2008; Unfounded concerns regarding healthcare reform and the belief that top line sales growth momentum would end after sales of the major profitable companies had matured; and, Investors had lost faith in the sector.

Since then these concerns have diminished helped by strong growth in these biotechnology companies which has seen their rating improve. In addition, new positive fundamental reasons to own the sector have emerged. R&D productivity has improved and numerous drugs, with multi-billion dollar sales potential, have been launched. Each derived from years of focused scientific research with funds raised through the equity markets.

The larger profitable companies have successfully reinvented themselves. Some acquired late stage assets which showed huge sales potential. This role was traditionally assumed to be for the pharmaceutical giants. However, strong management teams with an understanding of the best use of capital have taken advantage of the opportunities presented by late stage assets to get saleable products to the market.

Gilead purchased Pharmasset, with a promising phase two drug which has the potential for peak sales of $10bn annually.  Celgene bought Pharmion and most recently Amgen acquired Onyx Pharmaceuticals. All three acquisitions have transformed the prospects of these larger cap names. Biogen, however, proved that innovation still exists within a larger institution and developed Tecfidera which has sold $192m in its first quarter after the launch. Analysts predict Tecfidera sales could reach $5.7bn at its peak.

Secondly, new 'large cap' names were born. Regeneron's highly successful launch of Eylea and Alexion's stellar growth for wholly owned drug, Soliris, catapulted both names to profitability and multi-billion dollar market caps.

Today the large cap companies offer mid-twenties earnings growth over the next two to three years at reasonable share prices, attracting new investors and increasing valuations. Interest in innovation has returned once again and drug launches, pipelines and consolidation are not being ignored.

Investors might fear that a growth sector such as biotechnology, which is fundamentally being paid for by society and its governments, will face a financial dead-end.   However, the bulk of spending in the healthcare system stems from primary care and hospital-spend. Innovative drug therapies for high unmet medical needs and more efficient delivery of health solutions which is the hunting ground for biotech businesses should ensure that demand for innovative products continues in the long-term.

For example, Gilead's new drug for the hepatitis C virus, sofosbuvir could provide the opportunity of a cure for those who have recently contracted the disease or material alleviation of the impact for those in the early stages of disease development.  This will likely change disease management from what is a cumbersome treatment paradigm involving visits to hospital, poor side effects and only partial efficacy, to a relatively short period of oral therapy and possible cure. High pricing for these therapies might on the face of it cause concerns but the potential for long-term savings for society, governments and most importantly, patients themselves, preventing liver transplants, hospital stay and other knock on effects later in life, will result in huge cost savings overall.

The biotechnology sector fits neatly into this model of innovation and efficiency. These companies have already made a substantial impact on the diseases of mankind. HIV is now a chronic disease, when it used to be fatal. Hepatitis C has an effective cure on the horizon, and new treatments for cancer with improved efficacy will be launched in the near term.

Further into the future, innovation may provide solutions to diseases not yet understood, such as Alzheimers. A disease whose cost to society through nursing homes and round-the-clock care is very large. A biotechnology solution may be possible.

The Company invests across the spectrum of biotechnology, capturing innovation at every level. From the unquoted venture backed companies, which invest in the most innovative new drugs to the larger established, yet high growth profitable companies. We believe that giving our investors exposure to all the aspects of the biotechnology sector will provide excellent long-term performance and returns for their investment.

SV Life Sciences Managers LLP

Investment Manager

28 October 2013

Principal Risks and Uncertainties

The Board uses a framework of key risks which affect its business, and related internal controls designed to enable the Directors to take steps to mitigate these risks as appropriate. A full analysis of the Directors' system of internal control is set out in the Corporate Governance Statement on page 26 of the Annual Report.

The Company's key risks include:

Market Risk

The Company's returns are affected by changes in economic, financial and corporate conditions which can cause market fluctuations; a significant fall in equity markets is likely to affect adversely the value of the Company's portfolio. The Investment Manager provides the Board with information on the market at each Board meeting and the Board discusses appropriate strategies to manage the impact of any significant change in circumstances.

The biotechnology sector has its own specific risks leading to higher volatility than broad equity market indices. While the Company seeks to maintain a diversified portfolio within the confines of the current investment policy, biotechnology sector-specific or equity market risks cannot be eliminated by a diversified exposure to global biotechnology.

Investment and Strategy Risks

Alignment of the investment strategy with the Company's investment objective is essential and an inappropriate approach by the Investment Manager towards stock selection and asset allocation may lead to loss and/or underperformance and failure to achieve the Company's objective of long-term capital growth, resulting in a widening of the discount. The Board manages these risks through its framework of investment restrictions and regular monitoring of the Investment Manager's adherence to the agreed investment strategy.

SVLS provides regular reports to the Board on portfolio activity, strategy and performance, as well as risk monitoring. The reports are discussed in detail at Board meetings, which are all attended by the Investment Manager, to allow the Board to monitor the implementation of investment strategy and process.

Currency Risk

The Financial Statements and performance of the Company are denominated in Sterling because it is the currency of most relevance to the Company's investors. However, the majority of the Company's assets are denominated in US Dollars. Accordingly, the total return and capital value of the Company's investments can be significantly affected by movements in foreign exchange rates. It is not the Company's policy to hedge against foreign currency movements.

Discount to the NAV

Failure to meet investment objectives and/or poor sector-specific or general equity sentiment can affect the Company's share price, resulting in shares trading at a relatively large discount to the underlying NAV. The Board continually reviews the Company's investment performance, taking into account changes in the market, and regularly reviews the position of the NAV per share compared to the share price. Further information on the Company's discount is provided in the Chairman's Statement above.

Accounting, Legal and Regulatory Risks

To qualify for the status of an investment trust, the Company must comply with Section 1158 CTA. Further details of the Company's approval under Section 1158 CTA are set out in the Director's Report in "Status of the Company" on page 17 of the Annual Report.

A breach of Section 1158 CTA could result in the Company being subject to Capital Gains Tax on the sale of investments.  Consequently, pre-trade compliance checks are embedded into the investment procedures of the Investment Manager. Reports confirming the Company's compliance with the provisions of Section 1158 CTA are submitted by the Investment Manager to each Board meeting together with relevant portfolio and financial information.

The Company is also subject to compliance with other laws and regulations, including the Companies Act 2006 and the FCA Listing, Prospectus and Disclosure and Transparency Rules. Breaches of these laws and regulations could lead to criminal action being taken against Directors or suspension of the Company's shares from trading. The Investment Manager and Company Secretary provide regular reports to the Board on compliance with relevant provisions and report breaches without delay. The Board also relies on the services of its other professional advisers to minimise these risks.

The Board continues to be alert to the many developments in regulation. These include the AIFMD, the Foreign Account Tax Compliance Act and the Retail Distribution Review.

Operational Risks

As the Company's main functions are delegated to third party service providers, operational risk arises from insufficient processes of internal control which would include compliance with statutes and regulations governing the functions of the Company.

Such risks are assessed by the Audit Committee, which receives regular reports from its main service providers as to the internal control processes in place within those organisations.

Financial Risks

The financial risks faced by the Company are set out in note 24 to the Financial Statements on pages 51 to 59 of the Annual Report, which includes further analysis of financial risks including market and credit risks.

Related Party Transactions

The Directors of the Company are key management personnel. The total remuneration payable to Directors in respect of the year ended 31 August 2013 was £149,225 (2012: £163,109) of which £38,375 (2012: £nil) was outstanding at the year end.

At 31 August 2013 there was an outstanding balance of £511,000 due to Subsidiary, IBT Securities Limited (2012: £511,000 due to Subsidiary).

Management Report

Listed companies are required by the FCA's Disclosure and Transparency Rules (the "Rules") to include a management report in their annual financial statements. The information required to be in the management report for the purposes of the Rules is included in the Chairman's Statement above, the Investment Manager's Review above and the Business Review as contained in the Director's Report on pages 17 and 18 of the Annual Report. Therefore, a separate management report has not been included.

Directors' Responsibilities Statement

The Directors are responsible for preparing the Annual Report, the Directors' Remuneration Report and the Financial Statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare Financial Statements for each financial year. Under that law the Directors have prepared the Group and Parent Company Financial Statements in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union ("EU"). Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Parent Company and of the profit or loss of the Group for that period. In preparing these Financial Statements, the Directors are required to:

• Select suitable accounting policies and then apply them consistently;

• Make judgements and accounting estimates that are reasonable and prudent;

• State whether applicable IFRSs as adopted by the EU have been followed, subject to any material departures disclosed and explained in the Financial Statements; and

• Prepare Financial Statements on the going concern basis unless it is inappropriate to presume the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and the Group and enable them to ensure that the Financial Statements and the Directors' Remuneration Report comply with the Act and, as regards the Group Financial Statements, Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the Parent Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Annual Report is published on the following website: www.ibtplc.com, which is a website maintained by the Company's Investment Manager. The maintenance and integrity of the website maintained by the Investment Manager is, so far as it relates to the Company, the responsibility of the Investment Manager. The work carried out by the Auditors does not involve consideration of the maintenance and integrity of this website and accordingly, the Auditors accept no responsibility for any changes that have occurred to the Annual Report since it was initially presented on the website. Visitors to the website need to be aware that legislation in the UK governing the preparation and dissemination of the Annual Report may differ from legislation in their home jurisdiction.

Each of the Directors, whose names and functions are listed on page 5 of the Annual Report, confirms that, to the best of his or her knowledge:

• The Group Financial Statements, which have been prepared in accordance with IFRSs as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit of the Group;

• The Directors' Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties that it faces; and

• As outlined on page 22 of the Annual Report, the Directors have undertaken all necessary reviews to provide a going concern recommendation.

In accordance with Section 418 of the Act, the Directors at the date of approval of this Report, as listed on page 5 of the Annual Report, confirm that:

(a) so far as the Director is aware, there is no relevant audit information of which the Company's Auditors are unaware; and

(b) he/she has taken all the steps that he/she ought to have taken as a Director in order to make himself/herself aware of any relevant audit information and to establish that the Company's Auditors are aware of that information.

By order of the Board

Alan Clifton

Chairman

28 October 2013

 

GROUP STATEMENT OF COMPREHENSIVE INCOME

		For the year ended 31 August 2013			For the year ended 31 August 2012
		Revenue	Capital	Total	Revenue	Capital	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair value	2	-	46,621	46,621	-	39,683	39,683
Exchange losses on currency balances		-	(204)	(204)	-	(179)	(179)
Income	3	562	-	562	380	260	640
Expenses
Management fee		(1,660)	-	(1,660)	(1,269)	-	(1,269)
Administrative expenses		(840) ----------	- -----------	(840) ----------	(802) ------------	- ----------	(802) -----------
(Loss)/profit before finance costs and tax		(1,938)	46,417	44,479	(1,691)	39,764	38,073
Finance costs
Interest payable		(13) ----------	- -----------	(13) ----------	(20) ------------	- ----------	(20) -----------
(Loss)/profit on ordinary activities before tax		(1,951)	46,417	44,466	(1,711)	39,764	38,053
Taxation		(38) ----------	- -----------	(38) ----------	(42) ------------	- ----------	(42) -----------
(Loss)/profit for the year attributable to owners of the parent		(1,989) ======	46,417 ======	44,428 =====	(1,753) ======	39,764 =====	38,011 ======
Basic and diluted (loss)/earnings per Ordinary share	4	(3.59)p ======	83.89p ======	80.30p =====	(3.16)p ======	71.58p =====	68.42p ======

The total column of this statement represents the Group's Statement of Comprehensive Income, prepared in accordance with IFRSs as adopted by the EU.

The Group does not have any other comprehensive income and hence the net (loss)/profit for the year, as disclosed above, is the same as the Group's total comprehensive income.

The revenue and capital columns are supplementary and are prepared under guidance published by the AIC.

 

The accompanying notes form part of these Financial Statements.

 

GROUP AND COMPANY STATEMENTS OF CHANGES IN EQUITY

 

	Called up	Share	Capital	Share
Group	share	premium	redemption	purchase	Capital	Revenue
For the year ended	capital	account	reserve	reserve	reserves	reserve	Total
31 August 2013	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 September 2012	14,002	18,805	27,815	45,596	44,265	(21,561)	128,922
Total Comprehensive Income:
Profit/(loss) for the year	-	-	-	-	46,417	(1,989)	44,428
Transactions with owners, recorded directly to equity:
Shares bought back and held in treasury	-	-	-	(678)	-	-	(678)
Shares cancelled from treasury	(63) -----------	- -----------	63 ------------	- -----------	- -----------	- ------------	- -----------
Balance at 31 August 2013	13,939 ======	18,805 ======	27,878 ======	44,918 ======	90,682 ======	(23,550) ======	172,672 ======
	Called up	Share	Capital	Share
Group	share	premium	redemption	purchase	Capital	Revenue
For the year ended	capital	account	reserve	reserve	reserves	reserve	Total
31 August 2012	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 September 2011	15,089	18,805	26,728	46,449	4,501	(19,808)	91,764
Total Comprehensive Income:
Profit/(loss) for the year	-	-	-	-	39,764	(1,753)	38,011
Transactions with owners, recorded directly to equity:
Shares bought back and held in treasury	-	-	-	(853)	-	-	(853)
Shares cancelled from treasury	(1,087) -----------	- ----------	1,087 -----------	- ------------	- ------------	- ------------	- ------------
Balance at 31 August 2012	14,002 ======	18,805 ======	27,815 ======	45,596 ======	44,265 ======	(21,561) ======	128,922 ======
	Called up	Share	Capital	Share
Company	share	premium	redemption	purchase	Capital	Revenue
For the year ended	capital	account	reserve	reserve	reserves	reserve	Total
31 August 2013	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 September 2012	14,002	18,805	27,815	45,596	43,754	(21,561)	128,411
Total Comprehensive Income:
Profit/(loss) for the year	-	-	-	-	46,417	(1,989)	44,428
Transactions with owners, recorded directly to equity:
Shares bought back and held in treasury	-	-	-	(678)	-	-	(678)
Shares cancelled from treasury	(63) -----------	- -----------	63 ------------	- ------------	- ------------	- ------------	- -----------
Balance at 31 August 2013	13,939 ======	18,805 ======	27,878 ======	44,918 ======	90,171 ======	(23,550) ======	172,161 ======
	Called up	Share	Capital	Share
Company	Share	premium	redemption	purchase	Capital	Revenue
For the year ended	capital	account	reserve	reserve	reserves	reserve	Total
31 August 2012	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 September 2011	15,089	18,805	26,728	46,449	3,990	(19,808)	91,253
Total Comprehensive Income:
Profit/(loss) for the year	-	-	-	-	39,764	(1,753)	38,011
Transactions with owners, recorded directly to equity:
Shares bought back and held in treasury	-	-	-	(853)	-	-	(853)
Shares cancelled from treasury	(1,087) -----------	- -----------	1,087 -----------	- -----------	- -----------	- -----------	- -----------
Balance at 31 August 2012	14,002 =====	18,805 =====	27,815 =====	45,596 =====	43,754 ======	(21,561) ======	128,411 ======

 

The accompanying notes form part of these Financial Statements.

 

 

GROUP AND COMPANY BALANCE SHEETS

		At 31 August	At 31 August	At 31 August	At 31 August
		2013	2013	2012	2012
		Group	Company	Group	Company
	Note	£'000	£'000	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss		168,438 -------------	168,438 ------------	120,389 -------------	120,389 -------------
		168,438	168,438	120,389	120,389
Current assets
Current asset investments		-	-	6,043	6,043
Receivables		2,823	2,823	355	355
Cash and cash equivalents		1,635 -------------	1,635 ------------	2,334 ------------	2,334 -------------
		4,458 -------------	4,458 ------------	8,732 ------------	8,732 -------------
Total assets		172,896	172,896	129,121	129,121
Current liabilities
Payables		(224) ------------	(735) ------------	(199) ------------	(710) ------------
		(224) ------------	(735) ------------	(199) ------------	(710) ------------
Net assets		172,672 ------------	172,161 ------------	128,922 ------------	128,411 ------------
Equity attributable to equity holders
Called up share capital		13,939	13,939	14,002	14,002
Share premium account		18,805	18,805	18,805	18,805
Capital redemption reserve		27,878	27,878	27,815	27,815
Share purchase reserve		44,918	44,918	45,596	45,596
Capital reserves		90,682	90,171	44,265	43,754
Revenue reserve		(23,550) -------------	(23,550) ------------	(21,561) ------------	(21,561) ------------
Total equity		172,672 =======	172,161 ======	128,922 ======	128,411 ======
Basic and diluted net asset value per Ordinary share	5	313.05p =======	312.13p ======	232.47p ======	231.55p ======

The financial statements on pages 33 to 59 of the Annual Report were approved by the Board on 28 October 2013 and signed on its behalf by Alan Clifton, Chairman and John Aston, Audit Committee Chairman.

GROUP AND COMPANY CASH FLOW STATEMENTS

	For the	For the	For the	For the
	year ended	year ended	year ended	year ended
	31 August	31 August	31 August	31 August
	2013	2013	2012	2012
	Group	Company	Group	Company
	£'000	£'000	£'000	£'000
Cash flows from operating activities
Profit before finance costs and tax	44,479	44,479	38,073	38,073
Adjustments for:
(Increase) in investments	(48,049)	(48,049)	(24,522)	(24,522)
Decrease/(increase) in current asset investments	6,043	6,043	(6,043)	(6,043)
(Increase)/decrease in receivables	(2,468)	(2,468)	5,072	5,072
Increase/(decrease) in payables	25	25	(1,349)	(1,349)
Taxation	(38) -----------	(38) -------------	(42) -------------	(42) -----------
Net cash flows (used in)/generated from operating activities	(8) -----------	(8) -------------	11,189 -------------	11,189 -----------
Cash flows used in financing activities
Share repurchase costs	(678)	(678)	(853)	(853)
Interest paid on bank overdrafts	(13) -----------	(13) -------------	(29) ------------	(29) -----------
Net cash used in financing activities	(691) -----------	(691) -------------	(882) ------------	(882) -----------
Net (decrease)/increase in cash and cash equivalents	(699)	(699)	10,307	10,307
Cash and cash equivalents at 1 September	2,334 -----------	2,334 -------------	(7,973) -----------	(7,973) ------------
Cash and cash equivalents at 31 August	1,635 =====	1,635 ======	2,334 ======	2,334 ======

The accompanying notes form part of these Financial Statements.

 

 

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2013

1. Accounting Policies

The Group comprises International Biotechnology Trust plc (the "Company") and its wholly owned subsidiary, IBT Securities Limited (the "Subsidiary").

The nature of the Group's operations and its principal activities are set out in the Report of the Directors on page 17 of the Annual Report.

Consolidated and Company Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") and those parts of the Companies Act 2006 (the "Act") applicable to companies reporting under IFRSs. These comprise standards and interpretations approved by the International Accounting Standards Board ("IASB") and International Accounting Standards Committee ("IASC"), as adopted by the EU.

For the purposes of the consolidated Financial Statements, the results and financial position of each entity is expressed in pounds Sterling, which is the functional currency of the Company and of its Subsidiary and the presentational currency of the Group. Sterling is the functional currency because it is the currency which is most relevant to the majority of the Company's Shareholders and creditors and the currency in which the majority of the Group's operating expenses are paid. 

The principal accounting policies followed, which have been applied consistently for all years presented, are set out below:

(a) Basis of preparation

The consolidated and parent company Financial Statements have been prepared on a going concern basis and under the historical cost convention, as modified by the inclusion of investments at fair value through profit or loss.

Where presentational guidance set out in the Statement of Recommended Practice ("the SORP") for investment trusts issued by The Association of Investment Companies ("the AIC") in January 2009 is consistent with the requirements of IFRS, the Directors have sought to prepare the Financial Statements on a basis compliant with the recommendations of the SORP.

(b) Basis of consolidation

The consolidated Financial Statements of the Group comprise the Financial Statements of the Company and its Subsidiary. The Subsidiary is fully consolidated from the date on which control is transferred to the Group. Control is achieved where the Company has power to govern the financial and operating policies of an investee entity so as to obtain all the benefits from its activities. Inter-company transactions, balances and unrealised gains/losses on transactions between group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

No Statement of Comprehensive Income is presented for the Company, as permitted under Section 408 of the Act.

(c) Presentation of Statement of Comprehensive Income

In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the Statement of Comprehensive Income.

The net profit after taxation in the revenue column is the measure the Directors believe appropriate in assessing the Group's compliance with certain requirements set out in Section 1158 Corporation Tax Act 2010 ("CTA").

(d) Income

Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend basis. Special dividends are treated as revenue return or as capital return, depending on the facts of each individual case. Income from current asset investments is included in the revenue for the year on an accruals basis and is recognised on a time apportionment basis. Where the Group has elected to receive its dividends in the form of additional shares rather than cash, the amount of cash dividend foregone is recognised as income in the revenue column of the Statement of Comprehensive Income. Any excess in the value of shares over the amount of cash dividend foregone is recognised as a gain in the capital column of the Statement of Comprehensive Income.

Interest from fixed income securities is recognised on a time-apportionment basis so as to reflect the effective yield on the fixed income securities.

Deposit interest outstanding at the year end is calculated and accrued on a time apportionment basis using market rates of interest.

(e) Expenses and interest payable

Administrative expenses including the management fee and interest payable are accounted for on an accruals basis and are recognised when they fall due.

All expenses and interest payable have been presented as revenue items except as follows:

• Any performance fee payable is allocated wholly to capital, as it is primarily attributable to the capital performance of the Company's assets; and

• Transaction costs incurred on the acquisition or disposal of investments are expensed and included in the costs of acquisition or deducted from the proceeds of sale as appropriate.

(f) Taxation

Deferred tax is provided in full, using the liability method, on all taxable and deductible temporary differences at the Balance Sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability settled, based on tax rates and tax laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be utilised.

In line with recommendations of the SORP, the allocation method used to calculate tax relief on expenses presented in the capital column of the Statement of Comprehensive Income is the marginal basis. Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue column of the Statement of Comprehensive Income, then no tax relief is transferred to the capital column.

(g) Non-current asset investments held at fair value

Investments are recognised or derecognised on the trade date where a purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned.

On initial recognition all non-current asset investments are designated as held at fair value through profit or loss as defined by IFRSs. They are further categorised into the following fair value hierarchy:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Having inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: Having inputs for the asset or liability that are not based on observable market data.

All non-current investments (including those over which the Group has significant influence) are measured at fair value with gains and losses arising from changes in their fair value being included in net profit or loss for the year as a capital item.

The fair value for quoted investments is either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted.

In respect of unquoted investments, or where the market for a financial instrument is not active, fair value is established by using various valuation techniques, in accordance with the International Private Equity and Venture Capital ("IPEVC") Valuation Guidelines (August 2010). These may include using recent arm's length market transactions between knowledgeable, willing parties, if available, reference to recent rounds of re-financing undertaken by investee companies involving knowledgeable parties, reference to the current fair value of another instrument that is substantially the same or an earnings multiple.

As many of the unquoted investments are early stage investments, without revenue, valuation is also assessed up or down with reference to a range of factors among which are: ability of portfolio company management to keep cash and operating budgets, clinical developments towards management and/or investor milestone targets, clinical trial data, progress of competitor products, performance and quality of the management team, litigation brought by or against the portfolio company, patent approval or challenge, the market for the product being developed and the broad climate of the economies of the countries in which they will likely be sold by reference to public stock market performance.

Any gains and losses realised on disposal are recognised in the capital column of the Statement of Comprehensive Income.

(h) Current asset investments

Current asset investments are measured at fair value with gains and losses arising from their changes in fair value being included in the Statement of Comprehensive Income as a revenue item. Current asset investments comprise liquidity funds as disclosed in note 10 on page 47 of the Annual Report. These are all short-term in nature and held for less than one year.

(i) Investment in Subsidiary

The Company's investment in the Subsidiary is included at cost in the Company's Balance Sheet.

(j) Foreign currencies

Transactions involving currencies other than Sterling are recorded at the exchange rate ruling on the transaction date.

At each Balance Sheet date, monetary items and non-monetary assets and liabilities that are fair valued, which are denominated in foreign currencies, are retranslated at the closing rates of exchange. Foreign currency exchange differences arising on translation are recognised in the Statement of Comprehensive Income. Exchange gains and losses on investments held at fair value through profit or loss are included within "Gains on investments held at fair value".

(k) Critical accounting estimates and judgements

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.

The critical estimates and assumptions relate, in particular, to the valuation of unquoted investments, as summarised in (g) above.

Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

(l) Cash and cash equivalents

In the Statement of Cash Flows, cash and cash equivalents includes cash in hand, short-term deposits and bank overdrafts. These are held for the purpose of meeting short-term cash commitments rather than for investment or other purpose and cash balances are held at their value (translated to Sterling at the Balance Sheet date where appropriate) and are stated at £1.6m. In the Balance Sheet, bank overdrafts are shown within borrowings in current liabilities.

(m) Receivables

Other receivables do not carry any right to interest and are short-term in nature. Accordingly they are stated at their nominal value (amortised cost) reduced by appropriate allowances for estimated irrecoverable amounts.

(n) Payables

Other payables are not interest-bearing and are stated at their nominal amount (amortised cost). Where there are any long-term borrowings, finance costs are calculated over the term of the debt on the effective interest basis.

(o) Repurchase of Ordinary shares (including those held in treasury)

The costs of repurchasing Ordinary shares including related stamp duty and transaction costs are taken directly to equity and reported through the Statement of Changes in Equity as a charge on the share purchase reserve. Share repurchase transactions are accounted for on a trade date basis. The nominal value of Ordinary share capital repurchased and cancelled is transferred out of called up share capital and into the capital redemption reserve. Where shares are repurchased and held in treasury, the transfer to capital redemption reserve is made if and when such shares are subsequently cancelled.

(p) Reserves

(i) Capital redemption reserve:

The capital redemption reserve, which is non-distributable, holds the amount by which the nominal value of the Company's issued share capital is diminished when shares redeemed or purchased out of the Company's distributable reserves are subsequently cancelled.

(ii) Share premium account:

A non-distributable reserve, represents the amount by which the fair value of the consideration received exceeds the nominal value of shares issued.

(iii) Share purchase reserve:

A distributable reserve, which is used to finance the repurchase of shares in issue.

(iv) Capital reserves

The following are accounted for in this reserve:

• Gains and losses on the realisation of investments;

• Unrealised investment holding gains and losses;

• Foreign exchange gains and losses; and

• Performance fee.

(v) Revenue reserve:

Comprises accumulated undistributed revenue profits available for distribution as dividends.

(q) Accounting developments

At the date of authorisation of these Financial Statements, the following Standards and Interpretations were in issue. They are not yet mandatory, but are available for early adoption. They are not expected to have any significant impact on the Group or Company:

• IFRS 9, 'Financial Instruments: Classification and Measurement' (effective for annual periods beginning on or after 1 January 2015). This standard has not yet been adopted by the EU.

• IFRS 10, 'Consolidated Financial Statements' (effective for annual periods beginning on or after 1 January 2014).

• IFRS 11, 'Joint Arrangements' (effective for annual periods beginning on or after 1 January 2014).

• IFRS 12, 'Disclosure of Interests in Other Entities' (effective for annual periods beginning on or after 1 January 2014).

• IFRS 13, 'Fair Value Measurement' (effective for annual periods beginning on or after 1 January 2013).

• IAS 27 (revised 2011), 'Separate Financial Statements' (effective for annual periods beginning on or after 1 January

2014).

• IAS 19 (amendment), 'Employee Benefits' (effective for annual periods beginning on or after 1 January 2013).

• IAS 28 (revised 2011), 'Associates and Joint Ventures' (effective for annual periods beginning on or after 1 January 2014).

• IAS 32 (amendment), 'Offsetting Financial Assets and Liabilities' (effective for annual periods beginning on or after 1 January 2014).

• Additions to IFRS 9, 'Financial Instruments' (effective for annual periods beginning on or after 1 January 2015).

• IFRS 10, 11 and 12 (amendment) transition guidance.

• IAS 12 (amendment), 'Income Taxes'.

• IFRS 7 (amendment), 'Financial Instruments: Disclosures', on offsetting financial assets and liabilities (effective for annual periods beginning on or after 1 January 2014).

• IFRS 10, 12 and IAS 21 (amendments) (effective for annual periods beginning on or after 1 January 2014).

• IAS 36 (amendment), 'Impairment of assets' (effective for annual periods beginning on or after 1 January 2014).

The following became effective during the year but had no impact on the Financial Statements:

• IAS 1, 'Financial Statement Presentation'.

2.	Gains on Investments Held at Fair Value

	For the year ended	For the year ended
	31 August	31 August
	2013	2012
	£'000	£'000
Net gains on disposal of investments at historic cost	27,065	24,336
Less fair value adjustments in earlier years	(8,685) -----------	(5,221) -----------
Gains based on carrying value at previous Balance Sheet date	18,380	19,115
Investment holding gains during the year	28,241 -----------	20,568 -----------
	46,621 ======	39,683 ======
Attributable to:
Listed investments	42,427	35,025
Unquoted investments	4,194 ------------	4,658 ------------
	46,621 ======	39,683 ======

 

3.

Income

	For the year ended	For the year ended
	31 August	31 August
	2013	2012
	£'000	£'000
Revenue:
Income from investments held at fair value through profit or loss:
Franked dividends	-	3
Unfranked dividends	377	276
Interest on debt securities	323 ------------	108 ----------
	700	387
Other income:
Income from current asset investments	(139)	(7)
Bank interest	1 ------------	- ----------
	562 ======	380 =====
Capital:
Special dividends allocated to capital	- =======	260 =====

 

 

4.	Net (Loss)/Earnings per Ordinary Share

 

	For the year ended	For the year ended
	31 August	31 August
	2013	2012
	£'000	£'000
Net revenue loss	(1,989)	(1,753)
Net capital profit	46,417 ---------------	39,764 ----------------
	44,428 ========	38,011 ========
Weighted average number of Ordinary shares in issue during the year*	55,328,622 ========	55,554,794 ========
	Pence	Pence
Revenue loss per Ordinary share	(3.59)	(3.16)
Capital profit per Ordinary share	83.89 ---------------	71.58 ----------------
Total earnings per Ordinary share	80.30 ========	68.42 ========

*Excluding those held in treasury.

The increase in the NAV per share from 232.47p (31 August 2012) to 313.05p (31 August 2013) includes the total profit per share as disclosed above and the effect of the Company, during the year, repurchasing shares at a discount to the prevailing NAV per share.

5.	Net Asset Value per Ordinary Share

The calculation of the NAV per Ordinary share is based on the following:

	At 31 August	At 31 August	At 31 August	At 31 August
	2013	2013	2012	2012
	Group	Company	Group	Company
NAV (£'000)	172,672 ========	172,161 ========	128,922 ========	128,411 ========
Number of Ordinary shares in issue	55,157,663 ========	55,157,663 ========	55,457,663 ========	55,457,663 ========
Basic NAV per Ordinary share (pence)	313.05 ========	312.13 ========	232.47 ========	231.55 ========

6.

The figures and financial information for the year ended 31 August 2012 have been extracted from the latest published Financial Statements and do not constitute the statutory accounts for that year as defined in Section 434 of the Companies Act 2006.  Those Financial Statements have been delivered to the Registrar of Companies and included the Report of the Auditors which was unqualified and did not contain a statement under Section 498 of the Companies Act 2006.   This Annual Financial Report Announcement does not constitute statutory accounts for the year ended 31 August 2013 as defined in Section 434 of the Companies Act 2006.

7.

The Annual Report for the year ended 31 August 2013 will be posted to shareholders in October 2013 and thereafter copies will be available upon request at the Company's registered office: 55 Moorgate, London EC2R 6PA.  The Annual Report will also be available on the Company's website, www.ibtplc.com, from today.  A copy of the Annual Report for the year ended 31 August 2013 has been submitted to the National Storage Mechanism of the UK Listing Authority and will shortly be available for inspection at: www.Hemscott.com/nsm.do. The Company's AGM will be held at 12 noon on Wednesday, 11 December 2013 at the offices of BNP Paribas Fortis, 5 Aldermanbury Square, London EC2V 7HR.

 

 

For further information, please contact:

Kate Bingham

Telephone: [phone]

SV Life Sciences Managers LLP

Investment Manager

Rhona Gregg

Telephone: [phone]

BNP Paribas Secretarial Services Limited

Company Secretary

28 October 2013

 

 

END

 

 

FR FELFMIFDSEDS