Final Results
February 16 2007 - 9:23AM
UK Regulatory
RNS Number:4105R
Close IHT AIM VCT PLC
16 February 2007
CLOSE IHT AIM VCT PLC
PRELIMINARY ANNOUNCEMENT OF FINAL RESULTS
FOR THE PERIOD FROM 4 AUGUST 2005 TO 30 NOVEMBER 2006
Close IHT AIM VCT PLC ("the Company"), which invests in companies listed on the
Alternative Investment Market ("AIM"), across a variety of sectors, today
announces finals results for the period from incorporation on 4 August 2005
("date of incorporation") to 30 November 2006. The Company commenced activities
on 24 January 2006. This announcement was approved by the Board of Directors on
16 February 2007.
CHAIRMAN'S STATEMENT
I would like to welcome new shareholders to the Company and am pleased to
present your Company's first results, which relate to a period from
incorporation of the Company on 4 August 2005 to 30 November 2006.
Between January and March 2006, the Company raised #25 million (#23.63 million
net of expenses) through 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 30 November 2006, the Company completed twelve investments in
qualifying AIM listed companies, totalling #4.4 million. In the period, two of
these twelve investments - Debts.co.uk and Invocas - were sold, crystallising
profits in both cases. In addition, as detailed in the prospectus, #3.25 million
was invested 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 30 November 2006.
As a result of this, the Company's net asset value per share has risen slightly
from its initial 94.5p (net of fund raising costs) to 94.7p as at 30 November
2006.
Dividends
The Directors believe in maximising tax free dividends to shareholders and the
Company intends to pay dividends twice a year. The Company paid a first dividend
of 1.4p in September 2006 to shareholders from the initial allotment on 24
January 2006.
The Directors have declared a first dividend for the current financial period of
1.0p to all shareholders. This dividend will be paid on 23 March 2007 to
shareholders on the register as at 2 March 2007.
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
per share. This is designed to improve the marketability of the shares and to
encourage the shares to trade at a narrower discount to their underlying worth.
Shareholders wishing to sell their shares should first contact the Investment
Manager, Close Investments 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 relief that have been obtained.
Annual General Meeting
The Company's Annual General Meeting will be held at 10 Crown Place, London EC2A
4FT at 12 noon on Wednesday 18 April 2007. I look forward to seeing as many
shareholders there as possible. The Investment Manager will be presenting a
review of the portfolio and it will be an opportunity for you to meet the Board
and the Investment Manager to discuss the Company and its investments.
Outlook
Despite the continuing popularity of AIM in general, the flow of high quality
VCT qualifying investment opportunities remains thin. The main challenge for the
Investment Manager therefore, is finding enough new attractive qualifying
investments at sensible valuations.
The UK economy is forecast to record another year of satisfactory growth in
2007, although incipient signs of inflation, and the potential consequences for
interest rates, are a concern. To date, such concerns have not had a material
impact on individual portfolio companies, although they may in due course come
to have a negative impact on sentiment towards smaller companies generally.
The Investment Manager anticipates making several new investments in forthcoming
months. I look forward to updating you on their progress.
Keith Mullins
Chairman
16 February 2007
Income Statement
for the period from 4 August 2005 to 30 November 2006
Revenue Capital Total
#'000 #'000 #'000
Gains on investments - 56 56
Investment Income 760 - 760
Investment management fees (114) (342) (456)
Other expenses (119) - (119)
-------- -------- --------
Return on ordinary activities before finance costs
and taxation 527 (286) 241
-------- -------- --------
Finance costs (4) - (4)
-------- -------- --------
Return on ordinary activities before taxation 523 (286) 237
Taxation (charge)/credit on ordinary activities (95) 65 (30)
-------- -------- --------
Return attributable to equity shareholders 428 (221) 207
-------- -------- --------
Return per ordinary share (pence) - basic and
diluted 1.86p (0.96)p 0.90p
* All of the Company's activities derive from continuing activities.
* No operations were acquired or discontinued during the period.
* The Company has no recognised gains or losses other than those above,
accordingly a statement of total recognised gains and losses is not
required.
* The total column of the Income Statement represents the profit and loss
of the Company. The supplementary revenue return and capital return columns
have been prepared in accordance with the Association of Investment
Companies' Statement of Recommended Practice.
Balance Sheet
as at 30 November 2006
#'000
Fixed Assets
Investments 22,342
-----------
Current assets
Debtors 139
Cash at bank 1,551
-----------
1,690
-----------
Creditors: amounts falling due (357)
within one year
-----------
Net current assets 1,333
-----------
Net assets 23,675
-----------
Capital and reserves:
Called up share capital 3
Special reserve 23,623
Capital reserve - realised (209)
Capital reserve - unrealised (12)
Revenue reserve 270
-----------
Equity shareholders' funds 23,675
-----------
Net asset value per Ordinary share (pence) 94.70p
-----------
Reconciliation of movements in shareholders' funds
for the period from 4 August 2005 to 30 November 2006
Called up share Share premium Special reserve Capital reserve Capital reserve Revenue reserve Total
capital - realised - unrealised
#'000 #'000 #'000 #'000 #'000 #'000 #'000
As at 4 - - - - - - -
August
2005
Issue of
equity 3 24,998 - - - - 25,001
Issue costs
of - (1,375) - - - - (1,375)
equity
Transfer to
special
reserve - (23,623) 23,623 - - - -
Gains on
sales - - - 68 - - 68
of
investments
Capitalised
management - - - (342) - - (342)
fee
Tax on
capitalised
management
fees - - - 65 - - 65
Unrealised
depreciation
on - - - - (12) - (12)
investments
Revenue - - - - - 428 428
return
Dividends - - - - - (158) (158)
paid
------- ------- -------- -------- -------- ------- -------
As at 30
November 3 - 23,623 (209) (12) 270 23,675
2006 ------- ------- -------- -------- -------- ------- -------
Cash Flow Statement
for the period from 4 August 2005 to 30 November 2006
#'000
Operating activities
Investment income received 192
Deposit interest received 438
Other expenses paid (475)
-------------
Net cash inflow from operating activities 155
-------------
Servicing of finance
Interest paid (4)
Capital expenditure and financial investment
Purchase of investments (22,448)
Disposal of investments 380
-------------
Net cash (outflow) from investing activities (22,068)
-------------
Dividends
Equity dividends paid (158)
-------------
Financing
Issue of Ordinary share capital 23,626
-------------
Increase in cash 1,551
-------------
Notes:
1. Details about the Investment Manager
Close IHT AIM VCT PLC is managed by Close Investments Limited. Close Investments
Limited is authorised and regulated by the Financial Services Authority and is a
subsidiary of Close Brothers Group plc.
2. Return per Ordinary share
The revenue return per Ordinary share is based on the net revenue return on
ordinary activities after taxation of #428,000 in respect of the weighted
average number of shares in issue during the period from commencement of
activities, being 23,046,946 shares.
The capital return per Ordinary share is based on the net capital return on
ordinary activities after taxation of (#221,000) 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.
3. Net asset value per share
Net asset value per share is based on net assets attributable to Ordinary
shareholders of #23,675,165 and on 25,000,511 Ordinary shares in issue at 30
November 2006.
4. Financial Information
The financial information set out above is unaudited and does not constitute the
Company's statutory accounts for the period ended 30 November 2006. Statutory
accounts for the period ended 30 November 2006 will be delivered to the
Registrars of Companies in due course.
For further information, please contact:
Andrew Buchanan / Freda Isingoma Karen Wagg/Despina Constantinides
Close Investments Limited Polhill Communications
Tel: 020 7426 4000 Tel: 0207 6550500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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