Interim Results
Aberdeen Growth Opps VCT PLC
25 July 2005
Aberdeen Growth Opportunities VCT PLC
Interim results
The Directors announce the unaudited interim results for the six months ended 31
May 2005.
Investment activity
During the six-months ended 31 May 2005, five new unquoted and seven new AIM
investments were made at a total cost of £2.3 million. Forty-one unquoted and
AIM investments having a total cost of £6.6 million had been completed as at 31
May 2005.
The following twelve investments, of which all except one are VCT qualifying,
have been made since the publication of the Annual Report:
Accuma Group plc* (March 2005) - £101,000: Accuma advises individuals on debt
solutions including Individual Voluntary Arrangements. The company raised £16.7
million on its AIM placing.
Augean plc* (December 2004) - £210,000: Augean was formed to acquire and manage
businesses in the UK water management and water supply sectors. The company
raised £100 million on its admission to AIM.
Elevation Events Group plc* (May 2005) - £150,000: Elevation Events was
originally floated on AIM as Monkleigh in July 2004. In May 2005, it raised £3.7
million to complete its first acquisition.
FFC (UK) Limited (March 2005) - £200,000: FFC designs and manufactures office
furniture.
Gladstone plc* (February 2005) - £175,000: Gladstone develops specialised
membership software for the leisure industry. The company recently raised £2
million to fund acquisitions.
Inspicio plc* (April 2005) - £125,000: Inspicio has been formed to make
acquisitions in the international testing, inspection and performance conformity
markets. The company raised £3 million from its AIM placing.
Original Shoe Company Limited (May 2005) - £300,000: Original Shoe is a retailer
of branded clothing and footwear. The company raised £2 million to finance an
increase in its retail outlets and geographic coverage.
Sanastro plc (December 2004) - £275,000: Sanastro is a financial publishing
house which acquired Laffertys Publishing as part of a £6.8 million development
capital financing led by Aberdeen Murray Johnstone Private Equity ("AMJPE").
Software Radio Technology (UK) Limited (March 2005) - £250,000: Software Radio
Technology is a leading edge digital wireless communication development
business. AMJPE participated in a syndicate of investors which provided £2
million of working capital for the ongoing development of the business.
Spectrum Interactive plc* (April 2005) - £117,000: Spectrum Interactive is the
second largest operator of payphones in the UK. The company raised £3.7 million
on its admission to AIM.
Travel Class Holdings Limited (February 2005) - £225,000: Travel Class provides
activity-based educational holidays for schoolchildren. The management buy-out
of the business was led by AMJPE in February 2005, when a total of £1.25 million
was raised from AMJPE clients.
Zetar plc* (March 2005) - £150,000: Zetar acquired Kinnerton, one of the leading
independent UK manufacturers of novelty and niche chocolate confectionery and
funded the acquisition from an AIM placing which raised £13.7 million.
* Quoted on AIM
Portfolio developments
Aberdeen Growth Opportunities VCT is continuing to build a diversified portfolio
of unlisted and AIM investments which offer excellent growth prospects and,
therefore, the opportunity to generate capital gains in the medium and longer
term. Some of the private equity investments in the unlisted portfolio are
showing signs of increasing maturity and improving performance, with the result
that exits in the short to medium term are in prospect. The AIM portfolio is
being actively traded and partial realisations from some of these investments
have resulted in capital gains of £212,000 being achieved during the six months
ended 31 May 2005.
In the Company's prospectus, it was anticipated that the investment portfolio
would not comprise more than 20% in AIM stocks. In the Annual Report published
in March 2005, it was explained that the Board had resolved to increase this
limit to 25% in view of the opportunities that were then available to the
Company for additional investment. In view of the growth and increasing maturity
of the AIM market, and the performance of the Manager in this area, the Board
has resolved to increase to a maximum of 30% the proportion of the portfolio
that may be invested in AIM quoted stocks.
Investments within the unlisted portfolio are generally trading well, but where
there is underperformance particular attention is being paid to those companies
by the Manager to effect an improvement and protect value.
Market conditions
Interest rate increases imposed to control inflation, in particular in the
housing market, have contributed to a significant downturn in retail sales which
is flowing through to GDP growth. Oil prices have been at relatively high levels
for some time as the impact of supply and demand imbalances has been felt in
increased prices. Inflation forecasts for the medium term are being reduced on
the Bank of England's expectation that oil prices have now peaked. Manufacturing
output is continuing to decline, although the construction sector remains
strong.
Net Asset Value
The Net Asset Value (NAV) per share at 31 May 2005 was 96.7p per share ("pps")
compared with 93.6pps as at 30 November 2004. The increase in NAV of 3.3%
compares favourably with the FTSE Small Cap Index, which decreased by 6.0% over
the period, and the FTSE AIM Index, which decreased by 3.3%.
Unquoted investments held by Aberdeen Growth Opportunities VCT are valued in
accordance with the British Venture Capital Association guidelines. In
accordance with normal market practice, investments quoted on the Alternative
Investment Market (AIM) or a recognised stock exchange are valued at their
mid-market closing prices, discounted where necessary to reflect any trading
restrictions.
Co-investment
Aberdeen Growth Opportunities VCT has co-invested with other funds managed by
the Aberdeen Asset Management Group in a number of investments and is expected
to continue to do so. The advantage of this arrangement is that, together, the
funds are able to underwrite a wider range and size of transaction than would
otherwise be the case on a stand-alone basis.
Dividends and returns to date
The Board does not intend to declare an interim dividend for the period ended 31
May 2005.
Since the Company's launch, most Shareholders will have received 3.0pps in tax
free dividends. The total return since launch will be 99.7pps, being the sum of
dividends paid plus current NAV.
Outlook
The outlook for new investments remains positive, with a steady flow of both
unquoted and AIM opportunities available for consideration by the Manager. The
primary focus however, is to ensure that the Company continues to build, in a
measured fashion, a properly diversified portfolio of good quality smaller
company assets which will deliver sustained long term performance. Asset quality
will not be sacrificed for short term growth in the qualifying investment
portfolio.
ABERDEEN GROWTH OPPORTUNITIES VCT PLC
Statement of Total Return (incorporating the Revenue Account*)
for the six months ended 31 May 2005
Six months to
31 May 2005
(unaudited)
Revenue Capital Total
£'000 £'000 £'000
Gains on investments - 401 401
Income from investments 102 - 102
Other income 11 - 11
Investment management fees (28) (112) (140)
Other expenses (99) - (99)
Net return/(loss) on ordinary activities before (14) 289 275
taxation
Tax on ordinary activities - - -
Return/(loss) attributable to equity Shareholders (14) 289 275
Ordinary dividends on equity shares 1 - 1
Transfer to/(from) reserves (13) 289 276
Return per Ordinary share (pence) (0.13) 2.81 2.68
* The revenue column of this statement is the profit
and loss account of the Company.
ABERDEEN GROWTH OPPORTUNITIES VCT PLC
Statement of Total Return (incorporating the Revenue Account*)
for the six months ended 31 May 2005
Six months to
31 May 2004
(unaudited)
Revenue Capital Total
£'000 £'000 £'000
Gains on investments - 17 17
Income from investments 164 - 164
Other income 5 - 5
Investment management fees (26) (103) (129)
Other expenses (100) (1) (101)
Net return/(loss) on ordinary activities before 43 (87) (44)
taxation
Tax on ordinary activities (6) 6 -
Return/(loss) attributable to equity Shareholders 37 (81) (44)
Ordinary dividends on equity shares - - -
Transfer to/(from) reserves 37 (81) (44)
Return per Ordinary share (pence) 0.36 (0.78) (0.42)
* The revenue column of this statement is the profit
and loss account of the Company.
ABERDEEN GROWTH OPPORTUNITIES VCT PLC
Statement of Total Return (incorporating the Revenue Account*)
for the six months ended 31 May 2005
Year ended
30 November 2004
(audited)
Revenue Capital Total
£'000 £'000 £'000
Gains on investments - 255 255
Income from investments 419 - 419
Other income 21 - 21
Investment management fees (52) (207) (259)
Other expenses (209) - (209)
Net return/(loss) on ordinary activities before 179 48 227
taxation
Tax on ordinary activities (29) 30 1
Return/(loss) attributable to equity Shareholders 150 78 228
Ordinary dividends on equity shares (104) - (104)
Transfer to/(from) reserves 46 78 124
Return per Ordinary share (pence) 1.44 0.75 2.19
* The revenue column of this statement is the profit
and loss account of the Company.
ABERDEEN GROWTH OPPORTUNITIES VCT PLC
Balance Sheet
As at 31 May 2005
31 May 2005 31 May 2004 30 November 2004
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Fixed assets
Investments 7,227 9,429 4,852
Current assets
Debtors 164 218 149
Cash and overnight deposits 2,615 73 4,965
2,779 291 5,114
Creditors
Amounts falling due within one
year 152 120 250
Net current assets 2,627 171 4,864
9,854 9,600 9,716
Capital and reserves
Called up share capital 1,019 1,046 1,038
Share premium 2 4,685 4,676 4,676
Distributable reserve 2 4,009 4,209 4,157
Capital redemption reserve 2 28 - 8
Capital reserve - realised 2 (398) (292) (498)
Capital reserve - unrealised 2 462 (92) 273
Revenue reserve 2 49 53 62
Equity Shareholders' interest
9,854 9,600 9,716
Net Asset Value per Ordinary share
(pence) 96.7 91.8 93.6
Gregor Michie, Director
25 July 2005
ABERDEEN GROWTH OPPORTUNITIES VCT PLC
Cash Flow Statement
For the six months ended 31 May 2005
Six months to Six months to Year ended
31 May 2005 31 May 2004 30 November 2004
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating activities
Investment income received 88 233 632
Deposit interest received 12 6 19
Investment management fees paid (132) (123) (252)
Secretarial fees paid (30) (30) (61)
Cash paid to and on behalf of Directors (35) (50) (81)
Other cash payments (34) (23) (51)
Net cash inflow from operating activities (131) 13 206
Taxation
Corporation tax - 16 31
Financial investment
Purchase of investments (2,433) (3,547) (5,413)
Sale of investments 456 3,265 9,849
Net cash (outflow)/inflow from financial (1,977) (282) 4,436
investment
Equity dividends paid (94) (207) (207)
Net cash (outflow)/inflow before financing (2,202) (460) 4,466
Financing
Issue of Ordinary shares - 101 119
Share repurchases (148) - (52)
Net cash (outflow)/inflow from financing (148) 101 67
(Decrease)/increase in cash (2,350) (359) 4,533
Notes to the Financial Statements
1. Accounting policies
The financial information for the six months ended 31 May 2005 and the six
months ended 31 May 2004 comprises non-statutory accounts within the meaning of
Section 240 of the Companies Act 1985 and has been prepared on the basis of the
accounting policies set out in the Annual Report for the year ended 30 November
2004. The results for the year ended 30 November 2004 are abridged from the
full accounts for that year, which received an unqualified report from the
Auditors and have been filed with the Registrar of Companies.
Share Capital Capital Capital
premium Distributable redemption reserve reserve Revenue
account reserve reserve realised unrealised reserve
£'000 £'000 £'000 £'000 £'000 £'000
2. Movement in reserves
At 1 December 2004 4,676 4,157 8 (498) 273 62
Increase in unrealised
appreciation - - - - 227 -
Investment management fees - - - (112) - -
Issue of shares 9 - - - -
-
Share purchase and cancellation - (148) 20 - - -
Transfer on disposal of
investment - - - 38 (38) -
Net losses on realisation of - - - 174 - -
investments
Retained net revenue for period - - - - - (13)
As at 31 May 2005 4,685 4,009 28 (398) 462 49
3. Earnings per share
Earnings per Ordinary share have been calculated using the weighted average
number of shares in issue during the period of 10,278,864. Net Asset Values per
Ordinary share have been calculated using the number of shares in issue at 31
May 2005 of 10,188,708.
A summary of investment changes for the period under review and an investment
portfolio summary as at 31 May 2005 are attached.
A full copy of the Interim Report and Financial Statements will be printed and
issued to shareholders.
Copies of this announcement will be available to the public at the office of
Aberdeen Asset Management PLC, 123 St Vincent Street, Glasgow and at the
registered office of the Company, One Bow Churchyard, Cheapside, London.
By Order of the Board
ABERDEEN ASSET MANAGEMENT PLC, SECRETARY
25 July 2005
ABERDEEN GROWTH OPPORTUNITIES VCT PLC
Summary of Investment Changes
For the six months ended 31 May 2005
Valuation Appreciation/ Valuation
30 Nov 2004 Transactions (depreciation) 31 May 2005
£'000 % £'000 £'000 £'000 %
Listed investments
Unit trusts 705 7.2 - 2 707 7.2
Equities - AIM 1,707 17.6 591 447 2,745 27.8
Unlisted investments
Equities 753 7.7 590 (30) 1,313 13.3
Preference shares 135 1.4 - - 135 1.4
Fixed income 1,552 16.0 793 (18) 2,327 23.6
Total investments 4,852 49.9 1,974 401 7,227 73.3
Other net assets 4,864 50.1 (2,237) - 2,627 26.7
Total assets* 9,716 100.0 (263) 401 9,854 100.0
* Total assets represents Equity Shareholders' interest.
ABERDEEN GROWTH OPPORTUNITIES VCT PLC
Investment Portfolio Summary
As at 31 May 2005
% of
Valuation total
Nature of business £'000 assets
Unlisted investments
Original Shoe Company Clothing and footwear retailer 300 3.1
Sanastro Provider of business to business publishing services 275 2.8
Axeon Exploitation of semiconductor intellectual property rights 250 2.5
Deckflat Design and manufacture of cash drawers 250 2.5
Software Radio Provision of wireless technology to TETRA and AIS marine 250 2.5
Technology markets
PSCA International Government sector publishing 230 2.4
Travel Class Children's adventure holidays 225 2.3
FFC Design and manufacture of office furniture 200 2.0
Transrent Holdings Provider of trailer and transport solution services 187 1.9
Palgrave Brown Manufacturer of timber products 179 1.8
(Holdings)
Albanet Software and services 172 1.8
Elam-T Developer of flat screen technologies 162 1.6
Enterprise Food Group Provider of supply chain and management services to the bakery 150 1.5
industry
Essential Viewing Video streaming technology 150 1.5
Systems
Llanllyr Water Extraction and bottling of mineral spring water 150 1.5
ScotNursing Provider of temporary and agency nursing and care staff 135 1.4
RMS Europe Ports operator 114 1.2
Driver Hire Supplier of temporary drivers 100 1.0
Inovas Software developer 100 1.0
AMGas Manufacturer of gas sensors for application in oil and gas 87 0.9
exploration
Room 2 Retailer of household textiles, furniture, lighting & home 59 0.6
accessories
PLM Dollar Group Operator of commercial helicopter fleet 50 0.5
3,775 38.3
AIM investments
Tanfield Technical solutions and manufacturing group 255 2.6
Careforce Provider of domiciliary care services 235 2.4
Augean Water and waste management services 204 2.1
Zetar Manufacture of chocolate confectionery 203 2.0
Begbies Traynor Group Independent insolvency and rescue recovery specialist 187 1.9
Elevation Events Group Provider of event management and corporate hospitality services 175 1.8
Imagesound Provider of background messaging services 166 1.7
Gladstone Developer of specialised software for the leisure industry 158 1.6
Cello Group Media and advertising company 156 1.6
Avanti Screen Media Provider of screens and media advertising content to retailers, 147 1.5
pubs, clubs and leisure facilities
Air Music & Media Producer and supplier of low priced entertainment products 145 1.5
Inspicio Provider of testing, inspection and performance conformity 128 1.3
services
Public Recruitment Group Provider of public sector staffing, healthcare and education 123 1.2
Fountains Provider of specialist environmental services 119 1.2
Spectrum Interactive Operator of payphones and internet 117 1.2
Business Serve Internet service provider 103 1.0
Asfare Manufacture and supply of equipment for the emergency services 53 0.5
Accuma Provider of personal debt advice specialising in IVAs 51 0.5
Award International Sourcing and delivering of merchandising materials 20 0.2
Holdings
2,745 27.8
Listed unit trusts
Aberdeen International Fixed Interest Fund 499 5.1
Aberdeen International Sterling Bond Fund 208 2.1
707 7.2
Total investments 7,227 73.3
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