Interim Results
August 09 2006 - 12:23PM
UK Regulatory
RNS Number:4734H
Close IHT AIM VCT PLC
09 August 2006
CLOSE IHT VCT PLC
PRELIMINARY ANNOUNCEMENT OF INTERIM RESULTS
FOR THE PERIOD FROM 4 AUGUST 2005 TO 31 MAY 2006
Close IHT AIM VCT PLC ("the Company"), which invests in companies listed on the
Alternative Investment Market, across a variety of sectors, today announces
interim results for the period from incorporation on 4 August 2005 to 31 May
2006. The Company commenced activities on 24 January 2006. This announcement
was approved by the Board of Directors on 9th August 2006.
Chairman's statement
I would like to welcome new shareholders to the Company and am pleased to
present your Company's first report. These accounts relate to a period from
inception of the company on 4th August 2005 to 31 May 2006. The year-end of the
Company is November, so the next formal report to shareholders will be the
annual report and accounts to 30 November 2006.
Between January and March 2006, your Company raised #25 million (#23.63 million
net of expenses) via three allotments of shares. These share issues were split
7.32 million A shares and 17.68 million B shares. The A share class follow the
traditional AIM VCT structure, whereas the novel B share class (with a minimum
investment of #50,000) offer investors the opportunity to obtain inheritance tax
relief under present legislation.
Performance
From launch to 31 May 2006, the VCT completed six investments in qualifying AIM
listed companies, totalling #2.88million, and in line with its prospectus
invested #3.25million in the Close Special Situations Fund. Further details of
these investments can be found in the Investment Manager's report. I am pleased
to say that, in aggregate, these investments are showing a modest premium to
book cost at 31 May 2006.
As a result of this, the VCT's net asset value has risen from its initial 94.5p
(net of issue costs) to 95.39p at 31 May 2006.
Dividends
Your directors believe in maximising tax free dividends to shareholders and the
Company intends to pay dividends twice a year. The directors have declared a
first interim dividend of 1.4p. In accordance with its prospectus, this dividend
is payable to shareholders from the initial allotment on 24 January 2006, of
3,133,767 A Ordinary shares and 8,126,550 B Ordinary shares.
Buy-back Policy
The Board has adopted a share buy-back policy whereby the Company, when able,
will buy-back shares at around an 8% discount to the prevailing net asset value.
This is designed to improve the marketability of the shares and prevent the
shares from trading at a wide discount to their underlying worth.
Shareholders wishing to sell their shares should first contact the Investment
Manager, Close Investment Limited on 020 7426 4059. Shareholders should note
that if they sell their shares within three years of the original purchase, they
would lose any tax advantages that have been obtained.
Outlook
Recent months have seen a global market correction. A number of related factors
have prompted this setback, but in particular concerns about commodity prices
and other inflationary pressures have led to fears that global interest rates
might have to rise further than previously thought. In addition the current
worsening of the situation in the Middle East has contributed to the general
unease. However, as far as the UK economy is concerned, although consumer
spending remains subdued by the pressure on household disposable incomes, near
trend GDP growth is still expected this year, with low inflation and relatively
full employment.
The investment manager continues to see a healthy pipeline of new and existing
qualifying AIM companies raising money at reasonable valuations and hence
anticipates making several new investments in forthcoming months. I look forward
to updating you on their progress.
Keith Mullins
Chairman
9 August 2006
Income statement
for the period from 4 August 2005 to 31 May 2006
Revenue Capital Total
#'000 #'000 #'000
Gains on investments - 137 137
Investment Income 310 - 310
Investment management fees (42) (124) (166)
Other expenses (40) - (40)
Return on ordinary
activities before taxation 228 13 241
Taxation on ordinary
activities (20) - (20)
Return attributable to
equity shareholders 208 13 221
Basic and diluted return per
ordinary share (pence per
share) 1.51 0.10 1.61
Balance Sheet
as at 31 May 2006
#'000
Investments - at fair value through profit or loss
Qualifying investments 3,021
Non-qualifying investments 3,193
6,214
Current assets
Debtors 165
Cash at bank 17,549
17,714
Creditors: amounts falling due
within one year (81)
Net current assets 17,633
Net assets 23,847
Shareholders' funds
Called up share capital 3
Share premium 23,623
Capital reserve - realised (73)
Capital reserve - unrealised 86
Revenue reserve 208
Total shareholders' funds 23,847
Net asset value per ordinary share (pence) 95.39
Reconciliation of movements in Shareholders' funds
For the period from 4 August 2005 to 31 May 2006
Called up share Share Capital reserve - Capital reserve - Revenue Total
capital premium realised unrealised reserve
#'000 #'000 #'000 #'000 #'000 #'000
As at 4 August 2005 - - - - - -
Issue of equity 3 24,998 - - - 25,001
Issue costs of equity - (1,375) - - - (1,375)
Gains on sales of - - 51 - - 51
investments
Capitalised management - - (124) - - (124)
fees
Unrealised appreciation - - - 86 - 86
of investments
Revenue return - - - - 208 208
As at 31 May 2006 3 23,623 (73) 86 208 23,847
Cash Flow Statement
for the period from 4 August 2005 to 31 May 2006
#'000
Operating activities
Investment income received 144
Investment management fees paid (143)
Other expenses paid (1)
Net cash inflow from operating activities
-
Capital expenditure and financial investment
Purchase of qualifying investments (3,160)
Purchase of non-qualifying investments (3,250)
Disposal of qualifying investments 333
Net cash inflow from investing activities (6,077)
Financing
Issue of equity net of expenses 23,626
Net cash inflow from financing 23,626
Increase in cash 17,549
Notes:
1. Details about the Investment Manager
Close IHT AIM VCT PLC is managed by Close Investment Limited. Close Investment
Limited is authorised and regulated by the Financial Services Authority and is a
subsidiary of Close Brothers Group plc.
2.Statutory accounts
The financial information set out in this announcement does not constitute the
Company's statutory accounts for the period ended 31 May 2006, but is derived
from those accounts.
3. Return per share
The revenue return per Ordinary share is based on the net revenue return on
ordinary activities after taxation of #208,000 in respect of the weighted
average number of shares in issue during the period from commencement of
activities, being 13,738,016 shares.
The capital return per Ordinary share is based on the net capital return on
ordinary activities after taxation of #13,000 in respect of the same weighted
average number of shares in issue as stated above.
There are no dilutive elements and hence the basic return per share is the same
as the diluted return per share.
4. Net asset value per share
Net asset value per share is based on net assets attributable to Ordinary
shareholders of #23,847,000 and on 25,000,511 Ordinary shares in issue at 31 May
2006.
For further information, please contact:
Andrew Buchanan / Justin Jordan Karen Brunskill / Laura Cronin
Close Investment Limited Lansons
Tel: 020 7426 4000 Tel: 020 7294 3685/ 020 7294 3607
This information is provided by RNS
The company news service from the London Stock Exchange
END
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