Final Results - Year Ended 31 January 2000
Quester VCT PLC
26 April 2000
QUESTER VCT PLC ('the Company')
Summary of results
Year ended 31 January 2000 1999 1998 1997
as as as
restated restated restated
(58 weeks)
Annual total return per share (pence) 32 4 13 5
Net asset value plus cumulative dividend
per share (pence) 150 118 113 100
Dividend per share (pence) 5.8 2.4 2.8 2.5
Cumulative dividend per share (pence) 13.5 7.7 5.3 2.5
Shareholders' funds (£'000) 42,213 34,181 32,715 13,238
Net asset value per share (pence) 136.5 110.1 107.6 97.2
Mid-market price per share (pence) 150 89 102 95
Net asset value per share as at 29 February was 140.2p
SHAREHOLDER INFORMATION
Annual General Meeting 25 May 2000
Final dividend for 1999/00 £nil
Special interim dividend for 2000/01 10p per share
Payment date 1 June 2000
Associated record date 8 May 2000
CHAIRMAN'S STATEMENT
Progress of investment
Investment has progressed at a steady rate throughout the year and a
total of 30 investments, 14 new, 16 follow-on, were completed. The
Company has now achieved its objective of investing approximately
80% of its initial funds in a broad spread of venture capital
opportunities which meet the criteria for venture capital trusts.
It was our original intention to invest 80% of the Company's funds
in venture capital opportunities, with the balance of 20% being
invested in the FTSE 350. In line with the policies applied by the
other Quester VCTs, this has evolved and we are now aiming to invest
85% in venture capital opportunities with the balance of 15% in the
FTSE 350. This minor change in policy results from our experience
of managing VCTs over the last four years.
PERFORMANCE OF THE VENTURE CAPITAL PORTFOLIO
The portfolio continued to perform well and is valued at the year
end at over £10 million above cost, representing an increase in
excess of 40%, which reflects good overall performance.
Whilst the majority of the unquoted portfolio remains valued at
cost, in line with our accepted valuation policy, we have increased
the value of two investments following arm's length transactions in
their stocks. The performance of the majority of the AIM traded
investments was also good. Whilst it is Quester VCT's objective to
invest mainly in unquoted businesses, approximately a fifth, by
cost, has been invested in AIM traded investments. Our technology
related AIM investments in particular performed extremely well
during the year, broadly in line with the rest of that market, and
unrealised gains of over £11 million have been generated.
During the year three disposals were made, realising capital profits
of £1.4 million. In addition, following the year end, the Company
made realisations from four of its investments, generating profits
of £4.5 million. The Company still retains significant investments
in all four of these companies. It is the Directors' intention that
these realised gains be distributed to shareholders.
As is inevitable with a portfolio of venture capital investments
comprising of a substantial number of relatively young businesses,
provisions have been made during the year to cover potential losses
arising from a small number of investments. In total, provisions of
£2 million have been made in respect of five investments.
DIVIDEND
During the financial year under review, Quester VCT broke new ground
for general venture capital trusts when it became the first general
VCT to pay a dividend out of capital profits. This dividend, which
amounted to 5.75p per share, was paid as a special interim dividend
in October 1999. The amount of the capital dividend represents a
significant increase over the dividends paid in prior periods that
were funded purely from income. No final dividend will be paid.
As a result of the post year end disposals referred to above, which
generated profits of £4.5 million, the directors have resolved to
pay an early interim dividend for the current year of 10p per share
absorbing £3.1 million.
DIRECTORATE
Richard Prest, who retires by rotation at this year's Annual General
Meeting, has decided not to seek re-election. My colleagues and I
would like to take this opportunity to thank him for his services
and significant contribution to both the Board and Audit Committee
over the past four years. It is the Company's intention to fill the
vacancy caused by Richard's retirement as soon as a suitable
candidate has been found.
OUTLOOK
Shareholders will be aware of the recent volatility in quoted
markets, which has resulted in sharp falls in the value of
technology related shares, including those in our AIM traded
portfolio. There seems little doubt, however, that technology
related businesses, identified by reference to sustainable valuation
criteria, offer the best growth prospects over the medium and long
term. Our managers, Quester Capital Management, who have teams
specialising in these areas, should be well placed to identify
further good opportunities on sensible terms.
We believe that Quester VCT is well placed to build on its excellent
progress to date.
Tom Scruby
Chairman
25 April 2000
INVESTMENT PORTFOLIO SUMMARY
AS AT 31 JANUARY 2000
Venture capital investments % of
Cost Valuation portfolio
Industry Sector £'000 £'000 by value
Acedes Gear Tools Limited Manufacturing 995 995 2.8%
Advanced Valve Technology Manufacturing 444 444 1.3%
Limited
Anadyne Microelectronics IT hardware 625 625 1.8%
Limited
Armagard Limited Manufacturing 1,150 1,150 3.3%
Artisan Software Tools Limited Software 1,047 1,047 3.0%
Boxman.com plc Internet 750 750 2.1%
Cardionetics Limited Healthcare 550 847 2.4%
CDC Limited Software 500 500 1.4%
Communication & Control IT hardware 375 375 1.1%
Electronics Limited
Cotswold Outdoor Limited Retail 1,000 400 1.1%
Daisy & Tom Limited Retail 1,153 288 0.8%
Deep Sea Leisure plc1* Leisure 200 175 0.5%
Dragons Health Clubs plc* Leisure 950 2,066 5.9%
Dycem Limited Specialist 650 650 1.9%
engineering
Elateral Holdings Limited Internet 613 613 1.7%
First Fibre Limited Telecoms 1,250 1,250 3.6%
Harleyco Limited Retail 685 514 1.5%
HMV Media Group plc Retail 430 322 0.9%
HSL Holdings Limited Software 1,000 1,000 2.8%
HTC Healthcare Group plc Other services 325 325 0.9%
International Diagnostics Healthcare 990 990 2.8%
Group plc
International Resources Group Specialist 403 403 1.1%
Limited consulting
JSB Software Technologies plc* Software 1,000 8,355 23.8%
Linguaphone Group plc Publishing 250 250 0.7%
Methuen Publishing Limited Publishing 782 782 2.2%
Opsys Limited IT hardware 300 300 0.9%
Orchestream Limited Software 1,250 2,035 5.8%
Pipeline Engineering & Supply Specialist 496 496 1.4%
Co Limited engineering
Policy Master Group plc* Software 198 624 1.8%
Power X Limited IT hardware 600 600 1.7%
Purple Technologies Limited Software 200 200 0.6%
Shalibane plc* Specialist 1,205 899 2.6%
engineering
Sibelius Software Limited Software 700 700 2.0%
Sift plc Internet 625 625 1.8%
Sopheon plc* Software 200 1,108 3.2%
XKO Group plc* Software 625 2,391 6.8%
Total venture capital 24,516 35,094 100%
investments
* Shares traded on AIM or main London market
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2000
2000 1999
Notes as restated
£'000
£'000
(Loss)/profit on realisation of (1,395) 2,016
investments
Income 1 802 1,316
Investment management fee (852) (820)
Other expenses 2 (238) (248)
(Loss)/profit on ordinary (1,683) 2,264
activities before taxation
Tax on ordinary activities 3 (43) (133)
(Loss)/profit on ordinary (1,726) 2,131
activities after taxation
Dividend paid 4 (1,778) (580)
Retained (loss)/profit (3,504) 1,551
transferred to reserves
Basic and diluted 5 (5.6) 7.0
(loss)/earnings per share
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
2000 1999
as restated
£'000
£'000
(Loss)/profit on ordinary (1,726) 2,131
activities after taxation
Unrealised gain/(loss) on 11,664 (793)
revaluation of investments
Total gains and losses 9,938 1,338
recognised during the period
Total recognised gains per 5 32.1p 4.4p
share
Notes
The accompanying notes are an integral part of this statement.
All items in the above statement derive from continuing
operations.
The Company has only one class of business and derives its
income from investments made in shares and securities and bank
deposits.
In accordance with Financial Reporting Standard (FRS) 14, the
outstanding option gives rise to no dilution to the return per share
at this stage.
BALANCE SHEET
AS AT 31 JANUARY 2000
2000 1999
Notes as restated
£'000 £'000
Fixed assets
Investments 40,606 23,006
Current assets
Debtors 870 1,415
Cash at bank 1,094 10,583
1,964 11,998
Creditors (amounts falling due (357) (823)
within one year)
Net current assets 1,607 11,175
Net assets 42,213 34,181
Capital and reserves
Called-up equity share 1,546 1,553
capital
Share premium account 28,833 28,954
Revaluation reserve 12,537 1,682
Profit and loss account (703) 1,992
Total equity shareholders' funds 42,213 34,181
Net asset value per share 6 136.5p 110.1p
CASH FLOW STATEMENT
FOR THE YEAR ENDING 31 JANUARY 2000
2000 1999
as restated
£'000 £'000
Reconciliation of operating profit to
net cash inflow from operating
activities
Net (outflow)/revenue from ordinary (1,683) 2,264
activities before tax
Decrease in debtors 347 31
Increase in creditors 25 71
Tax withheld at source on franked (40) (108)
investment income
Repayment of income tax suffered at 261 -
source
Income tax suffered at source (67) (211)
Amortisation of gilts - 301
Loss/(profit) on realisation of 1,395 (2,016)
investments
Cash inflow from operating activities 238 332
Taxation
Advance corporation tax paid (69) (59)
Corporation tax refund (84) 33
85 306
Capital expenditure and financial
investment
Purchase of investments (17,914 (22,478)
Sale/redemption of investments 10,583 30,017
(7,246) 7,845
Equity dividends paid (2,115) (699)
Financing
Issue of ordinary shares - 812
Share issue expenses - (32)
Buy back of shares (128) (73)
(Decrease)/increase in cash for the (9,489) 7,853
year
Reconciliation of net cash flow to
movement in net funds
(Decrease)/Increase in cash for the (9,489) 7,853
year
Net funds at the start of the year 10,583 2,730
Net funds at the end of the year 1,094 10,583
NOTES TO THE FINANCIAL STATEMENTS
1 Income
2000 1999
£'000 £'000
Franked investment income
Unlisted companies 144 302
Listed companies 234 238
Interest receivable
Fixed interest securities 232 514
Bank deposits 95 217
Loans to unquoted companies 96 45
Sundry income 1 -
802 1,316
2 Other expenses
2000 1999
as restated
£'000 £'000
Administrative and secretarial 38 37
services
Directors' remuneration 48 45
Auditors' remuneration - audit 17 16
services
- non-audit 19 9
services
Legal and professional expenses 20 20
Irrecoverable VAT 59 93
Other expenses 37 28
238 248
3 Tax on ordinary activities
2000 1999
as restated
£'000 £'000
Under provision in prior year - 4
Tax attributable to franked 40 108
investment income
ACT written off 3 21
43 133
4 Dividends
2000 1999
£'000 £'000
Interim paid net - 5.75p per share 1,778 243
(1999: 0.8p)
Second interim proposed net - 0p - 303
per share (1999: 1.0p)
Final dividend proposed net - 0p - 34
per share (1999: 0.11p)
1,778 580
5 Loss/earnings per share
The 5.6p loss per share (1999: 7.0p earnings per share) is based on
the net loss from ordinary activities after tax of £1,725,807 (1999:
profit £2,130,287) and on shares of 30,954,344 (1999: 30,498,514),
being the weighted average number of shares in issue during the
year.
The total recognised gains per share is based on the total gains and
losses for the year of £9,937,659 (1999: £1,337,999) and on
30,954,344 (1999: 30,498,514) shares being the weighted average
number of shares in issue during the year.
6 Net asset value per share
The calculation of net asset value per share as at 31 January 2000
is based on net assets of £42,213,724 (1999:£34,181,250) divided by
the 30,918,637 (1999: 31,056,383) ordinary shares in issue at that
date.
The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 January 2000.
The statutory accounts for the year ended 31 January 2000 will be
finalised on the basis of the financial information presented by the
directors in the preliminary announcement and will be delivered to
the Registrar of Companies following the Company's Annual General
Meeting.
Copies of the full financial statements for the year ended 31
January 2000 are expected to be posted to shareholders on 25 April
2000 and will be available to the public at the registered office of
the Company at 29 Queen Anne's Gate, London, SW1H 9BU.
Latest directors dealings
- 2 days ago City of London Investment Group
- 2 days ago Aberdeen Group plc
- 2 days ago NATWEST GROUP
- 2 days ago Ondo Insurtech
- 2 days ago Banco Santander S.A.