Final Results
Proven VCT PLC
02 June 2005
ProVen VCT plc
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 28 FEBRUARY 2005
Financial Highlights
Year ended Year ended Year ended Year ended
28 February 29 February 28 February 28 February
2005 2004 2003 2002
Revenue return per share (pence) for the year 1.9p 0.2p 1.2p 2.4p
Total return per share (pence) for the year 14.6p 30.8p (16.1)p (5.2p)
Dividends per share (pence) 6.5p 3.5p 1.0p 2.3p
Cumulative dividends per share (pence) 15.7p 9.2p 5.7p 4.7p
Net asset value per share (pence) 106.7p 98.7p 71.4p 88.4p
NAV total return (net asset value plus cumulative 122.4p 107.9p 77.1p 93.1p
dividends per share) (pence)
Mid-market price per share (pence) 93.0p 70.0p 65.0p 90.0p
Shareholders' funds (£'000) 23,998 21,521 15,639 19,406
The statement to shareholders by the Chairman, Andrew Davison, includes the
following comments:
Introduction
I have pleasure in presenting the annual report and accounts for your company
for the year ended 28 February 2005. The year has been marked by 11% growth in
the FTSE All Share Index despite geopolitical uncertainty and concerns in the
wider international economy.
Investment Portfolio
During the year your company made one new investment of £200,000 and a further
£762,000 was invested in existing portfolio companies. Your company also made a
number of realisations realising a profit of £1.0 million. These realisations
include cash and shares from the sale of Espotting Media to US NASDAQ listed
FindWhat.com which concluded in July 2004. Subsequent to the year end,
Notability Solutions was sold generating a return of 2.4 times the initial
investment in only two years.
At the balance sheet date your company had a portfolio of 24 investments at a
total cost of £16.9 million and a valuation of £21.7 million. Your company also
held £3.1 million in cash and liquidity funds.
Net Asset Value and Dividends
The total net asset value return per share at 28 February 2005 was 122.4p
comprising a net asset value per share of 106.7p and dividends paid and proposed
of 15.7p. This represents a return of 29% over the initial net asset value at
launch of 95p and compares very favourably with the total return on the FTSE All
Share Index of -7% over the same period.
Your company is proposing a final dividend of 3.5p per share. This is in
addition to the interim dividend of 3.0p per share paid in November 2004. This
dividend will be paid on 6 July 2005 to shareholders on the register at 10 June
2005.
Share Capital Issues and Buy Backs
During the year your company issued a further 1,110,732 shares following the
offer for subscription for the tax year 2003/2004. Subsequent to 28 February
2005, in the 2004/2005 and 2005/2006 tax years, your company has issued a
further 2,143,430 shares following two further offers for subscription. The
funds raised from these offers are required to be 70% invested in qualifying
holdings within approximately three years and will be used to further diversify
the portfolio.
Your company also purchased 415,955 shares in the market at a cost of £374,000,
representing a discount of 10% to the published net asset value at the time of
the purchases. In order to maintain your company's ability to purchase its own
shares where this is in the interest of shareholders, the Board will at the
forthcoming annual general meeting once again be seeking shareholder approval to
renew its authority to purchase shares in the market. Any shareholder wishing to
sell shares should contact Downing Corporate Finance in the first instance.
Prospects
The performance of the portfolio continues to be encouraging and is reflected in
the increased valuations for a number of companies. This results from a number
of factors: the initial due diligence process which identifies which investments
are to be made; the quality of the portfolio companies' management teams in
delivering goods and services in their respective markets and the conversion of
this performance to shareholder value; and the ongoing advice provided by the
investment manager to the portfolio companies. These efforts have been rewarded
with the strong performance of your company relative to its peer group.
In addition, the individual portfolio companies' performance and valuations are
sensitive to the market in which we operate. The prospects for the UK economy
look more uncertain than at this time last year and we expect the market for
investments to be affected by the £500 million recently raised by other VCTs for
investment. Nonetheless I continue to have confidence in the performance of
your company.
Annual General Meeting
The annual general meeting will be held at 11.00 a.m. on 5 July 2005 at 39
Earlham Street, London WC2H 9LT. I look forward to meeting those shareholders
that are able to attend.
Statement of Total Return (incorporating the revenue account)
for the year ended 28 February 2005
Year ended Year ended
28 February 2005 29 February 2004
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments
- realised - 1,000 1,000 - 607 607
- unrealised - 2,248 2,248 - 6,363 6,363
Income 866 - 866 356 - 356
Investment management fee (152) (456) (608) (97) (290) (387)
Other expenses (188) - (188) (213) - (213)
Return on ordinary activities before 526 2,792 3,318 46 6,680 6,726
taxation
Tax (charge)/credit on ordinary activities (92) 92 - (9) 6 (3)
Return on ordinary activities after taxation 434 2,884 3,318 37 6,686 6,723
Dividends (508) (956) (1,464) - (763) (763)
Transfer (from)/to reserves (74) 1,928 1,854 37 5,923 5,960
Return per ordinary share
Basic and fully diluted 1.9p 12.7p 14.6p 0.2p 30.6p 30.8p
The revenue return per ordinary share is based on the net revenue on ordinary
activities after taxation of £434,000 (2004 - £37,000) and on 22,656,549
ordinary shares (2004 - 21,860,400 ordinary shares), being the weighted average
number of ordinary shares in issue during the year.
The capital return per ordinary share is based on a net realised and unrealised
capital profit of £2,884,000 (2004 - profit of £6,686,000) and on
22,656,549 ordinary shares (2004 - 21,860,400 ordinary shares), being the
weighted average number of ordinary shares in issue during the year.
Balance Sheet
at 28 February 2005
28 February 29 February
2005 2004
£'000 £'000
Fixed assets
Investments 21,673 19,741
Current assets
Debtors 256 612
Cash at bank and in hand 3,129 2,103
3,385 2,715
Creditors: amounts falling due (1,060) (935)
within one year
Net current assets 2,325 1,780
Total assets less current liabilities 23,998 21,521
Capital and reserves
Called up share capital 1,125 1,090
Share premium 941 -
Special reserve 16,743 17,722
Capital redemption reserve 30 9
Capital reserve - realised 353 68
Capital reserve - unrealised 4,751 2,503
Revenue reserve 55 129
Total equity shareholders' funds 23,998 21,521
Net asset value per share 106.7p 98.7p
Net asset value per share is based on net assets at 28 February 2005 of
£23,998,000 (2004 - £21,521,000) and on 22,490,512 ordinary shares (2004 -
21,795,735 ordinary shares) in issue at that date.
Cash Flow Statement
for the year to 28 February 2005
Year ended Year ended
28 February 29 February
2005 2004
£'000 £'000
Net cash outflow from operating activities
Net revenue from ordinary activities before tax 526 46
(Increase)/decrease in debtors (176) 82
Increase in creditors 56 17
Capitalised interest receipts (175) -
Management fees charged to capital (456) (290)
Net cash outflow from operating activities (225) (145)
Financial investment
Purchase of investments (787) (5,023)
Sale of investments 2,809 6,992)
Net cash inflow from financial investment 2,022 1,969
Corporation tax paid - (3)
Equity dividends paid (1,439) -
Financing
Issue of ordinary shares 1,054 -
Share issue expenses (58) -
Purchase of ordinary shares (328) (78)
Net cash inflow/(outflow) from financing 668 (78)
Increase in cash in the year 1,026 1,743
Analysis of cash balance
At 29 February 2004 2,103 360
Net cash inflow for the year 1,026 1,743
At 28 February 2005 3,129 2,103
Announcement based on statutory accounts (unqualified audit report)
The financial information set out in the announcement does not constitute the
company's statutory accounts for the year ended 28 February 2005. The statutory
accounts for the year ended 28 February 2005 will be delivered to the Registrar
of Companies following the company's Annual General Meeting.
The financial information for the year ended 29 February 2004 is derived from
the statutory accounts for that year which have been delivered to the Registrar
of Companies. The auditors reported on those accounts; this report was
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985.
The financial information set out in the announcement is prepared on the basis
of the accounting policies consistent with those in the full financial
statements.
The company revoked its investment company status within the meaning of s266,
Companies Act 1985 during the year. However, it conducts its affairs as a
venture capital trust for taxation purposes under s842AA of the Income and
Corporation Taxes Act 1988. Notwithstanding, and as permitted by the Statement
of Recommended Practice 'Financial Statements of Investment Trust Companies'
(SORP), issued by the Association of Investment Companies in January 2003, the
company has prepared its financial statements in accordance with the SORP. The
directors consider that the departure from the Companies Act 1985 is necessary
to enable the financial statements to give a true and fair view.
A copy of the full annual report and financial statements for the year ended 28
February 2005 will be printed and posted to shareholders. Copies will also be
available to the public at the registered office of the company at 39 Earlham
Street, London WC2H 9LT.
This announcement was approved by the Board on 2 June 2005.
This information is provided by RNS
The company news service from the London Stock Exchange
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