Interim Results
December 02 2003 - 7:40AM
UK Regulatory
RNS Number:7472S
Close Brothers Protected VCT PLC
02 December 2003
Close Brothers Protected VCT PLC
2 December 2003
Close Brothers Protected VCT PLC ("the Company"), managed by Close Venture
Management, today announces interim results for the six months ended 30
September 2003.
Financial Highlights:
Summary of dividends and Net Asset Value as at 30 September 2003
Pence per share
Gross dividend for the year to 31 March 1998 4.00
Gross interim dividends and net final dividend
for the year to 31 March 1999 4.00
Net dividend for the year to 31 March 2000 4.00
Net dividend for the year to 31 March 2001 3.25
Net dividend for the year to 31 March 2002 2.25
Net dividend for the year to 31 March 2003 1.00
Net dividend for the six months to 30 September 2003 0.75
19.25
Net asset value at 30 September 2003 87.30
Total 106.55
Note 1: following the cessation of tax credits on 5 April 1999, dividends paid
by VCTs no longer benefit from tax credits.
Note 2: the above table does not take into account the income tax relief of 20%
or the capital gains tax deferral relief of 40% upon subscription for shares in
the Company.
For further information, please contact:
Patrick Reeve/Henry Stanford Justin Griffiths/ John West
Close Venture Management Tavistock Communications
Tel: 020 7426 4000 Tel: 020 7920 3150
www.closeventures.co.uk
Notes to Editors:
1) Close Brothers Protected VCT PLC is managed by Close Venture Management.
2) Close Venture Management is a subsidiary of Close Brothers Investment
Limited and is regulated by the FSA.
3) The financial information set out in the announcement does not
constitute the Company's statutory accounts for the six months ended 30
September 2003 or 2002. The financial information for the year ended 31
March 2003 is derived from the statutory accounts delivered to the Registrar
of Companies. The auditors reported on those accounts; their report was
unqualified and did not contain a statement under s237 (2) or (3) of the
Companies Act 1985.
Chairman's Statement
Investment review
During the six months to 30 September 2003, I am pleased to say that the
Company's net asset value per share increased by 11.8%, while the interim
dividend per share grew by 50% from last year's depressed levels. The growth in
net asset value was prompted by the strong performance of our AIM portfolio,
which now accounts for 28% of the Company's assets, and which increased in value
by almost 60%, compared to the growth of the AIM Index of 38.5% over the same
period.
At the same time, the Company's interim dividend has increased to 0.75 pence per
share from last year's 0.50 pence per share. This has been the result of the
continuing progress in replacing the low-yielding portfolio of loans guaranteed
by Royal Bank of Scotland PLC with a higher yielding portfolio of asset-based
investments. New investments in this area include an initial #1 million (to be
followed by up to a further #2 million) in Kew Green VCT (Stansted), a newly
formed company which will build and operate a 183 room Express by Holiday Inn
hotel in Stansted Airport. With continued progress in this area, as at the date
of this statement, asset-based investments now account for #5.3 million of the
investment portfolio, with a further #4.2 million reserved for investment. This
underlies the Company's policy of supplementing the prospects of lower-risk
capital growth with a reliable income yield.
The following is a profile of the Company's investment portfolio by value
following the decision to change its investment strategy:
30 September 31 March 30 September 31 March
2003 2003 2002 2002
Investments by value # 000's # 000's # 000's # 000's
Qualifying loan
investments guaranteed by
RBS 8,705 11,105 11,505 11,180
Qualifying AIM investments 5,951 3,729 4,952 6,594
Qualifying asset based
investments 3,333 2,250 1,000 -
Cash and other
non-qualifying investments 3,588 2,214 3,385 7,630
--------- --------- --------- ---------
Total 21,577 19,298 20,842 25,404
--------- --------- --------- ---------
As at 30 September 2003 the net assets of the Company were #21.4 million, or
87.3 pence per share compared with net assets at 31 March 2003 of #19.2 million,
or 78.1 pence per share and net assets at 30 September 2002 of #20.7 million, or
83.3 pence per share. The rise in the AIM market led to a total capital profit
for the period of #2.35 million (2002: #2.0 million loss). Net revenue income
before taxation amounted to #205,000 in the six months against #135,000 in the
comparable period last year, with the increase due to the build up of the high
yielding portfolio of asset-based investments. The Board has therefore declared
a net interim dividend of 0.75 pence per share (2002: 0.50 pence). The dividend
will be paid on 7 January 2004 to shareholders on the register on 12 December
2003.
Martin Bralsford
Chairman
2 December 2003
Unaudited Statement of Total Return
(incorporating the profit and loss account)
for the six months to 30 September 2003
Six months to Six months to Year to
30 September 2003 30 September 2002 31 March 2003
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
------------------------------------------------------------------------------------------------------
Realised
gains/
(losses) on
investments - 23 23 - (239) (239) - (553) (553)
Unrealised
gains/
(losses) on
investments - 2,327 2,327 - (1,712) (1,712) - (2,633) (2,633)
Income 305 - 305 259 - 259 536 - 536
Investment
management
fees (48) (78) (126) (45) (66) (111) (91) (126) (217)
Other
expenses (52) (25) (77) (79) (39) (118) (144) (71) (215)
----- ----- ----- ----- ----- ----- ----- ----- -----
Return on
ordinary
activities
before tax 205 2,247 2,452 135 (2,056) (1,921) 301 (3,383) (3,082)
Tax on
ordinary
activities (26) 13 (13) (6) 5 (1) (24) 16 (8)
----- ----- ----- ----- ----- ----- ----- ----- -----
Return
attributable
to
Shareholders 179 2,260 2,439 129 (2,051) (1,922) 277 (3,367) (3,090)
Dividends (184) - (184) (124) - (124) (245) - (245)
----- ----- ----- ----- ----- ----- ----- ----- -----
Transfer
to/(from)
reserves (5) 2,260 (2,255) 5 (2,051) (2,046) 32 (3,367) (3,335)
====== ====== ======= ====== ======= ======= ====== ======= =======
Return per
ordinary
share 0.7p 9.2p 9.9p 0.5p (7.6)p (7.1)p 1.1p (13.0)p (11.9)p
All revenue and capital items in the above statement derive from continuing
operations.
There were no recognised gains or losses other than those disclosed above.
Unaudited Summary Balance Sheet
At 30 September 2003
30 September 2003 30 September 2002 31 March
2003
#'000 #'000 #'000
---------------------------------------------------------------------------------
Fixed asset investments
Qualifying investments 17,989 17,457 17,084
Non-qualifying investments 4 2,005 3
------ ------ ------
Total fixed asset
investments 17,993 19,462 17,087
Current assets
Debtors 143 101 97
Cash at bank and in hand 3,584 1,380 2,211
------ ------ ------
3,727 1,481 2,308
Creditors: due within one
year (314) (225) (244)
------ ------ ------
Net current assets 3,413 1,256 2,064
------ ------ ------
Net assets 21,406 20,718 19,151
====== ====== ======
Represented by:
Called up share capital 12,260 12,445 12,260
Special reserve 9,706 9,984 9,706
Capital redemption reserve 1,678 1,493 1,678
Capital reserve
realised (789) (328) (722)
unrealised (1,512) (2,917) (3,839)
Revenue reserve 63 41 68
------ ------ ------
Total equity shareholders'
funds 21,406 20,718 19,151
====== ====== ======
Net asset value per
ordinary share 87.3p 83.3p 78.1p
This interim report was approved by the Board of Directors on 2 December 2003
Signed on behalf of the Board of Directors by
D M Bralsford
Chairman
Unaudited Cashflow Statement
for the six months to 30 September 2003
Six months to Six months to Year to
30 September 2003 30 September 31 March
#'000 2002 2003
#'000 #'000
--------------------------------------------------------------------------------
Operating activities
Investment income received 324 278 524
Deposit interest received 18 89 117
Other income received - 1 -
Investment management fees paid (109) (118) (226)
Other cash payments (87) (150) (226)
------ ------ ------
Net cash inflow from operating
activities 146 100 189
Taxation
UK corporation tax refund 12 - -
Investing activities
Purchase of investments (1,227) (2,635) (3,935)
Disposals of investments 2,583 3,087 5,529
------- ------- -------
Net cash inflow from investing
activities 1,356 452 1,594
------ ------ ------
Equity dividends paid
Dividends paid on ordinary
shares (123) (414) (537)
------- ------- -------
Net cash inflow before financing 1,391 138 1,246
Financing
Purchase of shares net of
expenses - (2,382) (2,659)
Capital restructuring expenses (18) - -
------ ------- -------
(18) (2,382) (2,659)
------ ------- -------
Increase/(decrease) in cash and
cash equivalents 1,373 (2,244) (1,413)
====== ======= =======
This information is provided by RNS
The company news service from the London Stock Exchange
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