Final Results
Pennine AIM VCT plc
Final results for the year ended 31 January 2008
FINANCIAL HIGHLIGHTS
ORDINARY SHARES
Year Year
Ended Ended
31-Jan-08 31-Jan-07
Net asset value (per share) 54.7p 67.6p
Distributions paid during the year 3.0p 3.0p
Cumulative distributions paid since launch 85.1p 82.1p
Total return (Net asset value plus cumulative 139.8p 149.7p
distributions paid)
'D' SHARES
Year
Ended
31-Jan-08
Net asset value (per share) 93.1p
Distributions paid during the year -
Cumulative distributions paid since 'D' share offer -
Total return (Net asset value plus cumulative distributions 93.1p
paid)
CHAIRMAN'S STATEMENT
I present the Report and Accounts for the year ended 31 January 2008.
Market conditions in the second half of the year have been
difficult. This has had a significant negative impact on the net
asset value of the Ordinary Share pool.
Net Asset Value
The net asset value ("NAV") per Ordinary Share at the year-end stood
at 54.7p, a fall of 9.9p (or 15.3%) over the year after adjusting for
the dividend of 3.0p per share that was paid during the year. The
sharp change in the climate for investors that has taken place during
the year is evidenced by the fact that the Ordinary Share NAV grew by
9.4% in the six months to 31 July 2007 and then fell by 22.6% in the
six months to 31 January 2008.
The net asset value ("NAV") per 'D' Share at the year-end stood at
93.1p, a fall of 1.4p (or 1.5%) compared with the launch price of
94.5p after deducting fundraising costs.
Venture capital investments
During the year, the Company made �1.1 million worth of new venture
capital investments in the Ordinary Share pool and �470,000 in the
'D' Share pool.
At the year end, the Ordinary Share portfolio comprised 43
investments which were valued at �5.4 million. The portfolio
generated unrealised losses of �2.2 million and realised gains of
�846,000 over the year.
At the year end, the 'D' Share portfolio comprised 6 investments
which were valued at �439,000. The portfolio generated unrealised
losses of �31,000.
Listed fixed income and other investments
The Ordinary Share pool holds a non-qualifying portfolio which
includes a holding in a gilt edged stock and holdings in three hedge
funds. The portfolio had a value of �1.9 million at the year end and
showed an unrealised gain of �22,000 at the year end and a realised
loss of �4,000.
The 'D' Share pool holds a non-qualifying portfolio comprising of one
gilt edged stock and an investment in a FTSE index tracker. The
portfolio produced an unrealised loss of �7,000 over the year and a
realised loss of �10,000.
Results and dividends
The total return on ordinary activities for the year was as follows:
Revenue Capital Total
�'000 �'000 �'000
Ordinary Shares 39 (1,423) (1,384)
'D' Shares 38 (77) (39)
77 (1,500) (1,423)
Your Board is proposing to pay the following final dividends for the
year:
Ordinary Shares 3.0p per share
'D' Shares 1.0p per share
Subject to Shareholder approval at the Annual General Meeting
("AGM"), both dividends will be paid on 27 June 2008 to Shareholders
on the register at 13 June 2008.
Share buybacks
In order to provide liquidity in the Company's shares and in line
with common practice for VCTs, the Company operates a policy of
buying its own shares when they become available in the market, for
cancellation.
A Special Resolution to continue with this policy is proposed for the
forthcoming AGM and therefore the Board recommends Shareholders vote
for resolution 8.
The Board used this power to acquire an aggregate of 661,670 shares
during the year at an average price of 60.3p per share, which was
generally a 10% discount to the latest NAV. These shares were
subsequently cancelled.
Articles of Association
At the forthcoming AGM, the Board will seek Shareholder approval to
update the Company's Articles of Association. Resolution 9, which is
a special resolution, proposes the adoption of new articles of
association which incorporate a number of changes which are required
as a result of the implementation of the Companies Act 2006. An
explanation of the proposed changes is provided within the Report of
the Directors.
The Board recommends Shareholders vote for resolution 9 as, in the
Board's opinion, the resolution is in the best interests of
Shareholders.
Annual General Meeting
The twelfth AGM of the Company will be held at 159 New Bond Street,
London W1Y 9PA at 10.30am on 25 June 2008.
Two items of special business are being proposed at the meeting to
renew the authority to allow the Company to make market purchases of
the Company's shares and to update the Company's Articles of
Association as described above.
Outlook
Although many of the investments held by the Ordinary Share pool have
seen falls in their share prices over the second half of the year,
the Manager is satisfied that, in general, the performance of the
underlying businesses has not deteriorated and the falls have been
caused by a change in market sentiment.
The job of building the 'D' Share portfolio will continue over the
forthcoming year. In the current climate there is reduced deal flow
but, as the 'D' Share pool is reasonably small, we expect to be able
to identify an adequate number of suitable investment opportunities.
Should the UK economy move into recession, as some commentators are
expecting, the Company's investments will, no doubt, face new
challenges. Although the Company cannot fully protect itself against
a market downturn, the impact should be reduced by holding a
reasonably well diversified portfolio which includes some mature
investments, leaving the Company well-positioned when conditions
improve.
Hugh Gillespie
Chairman
INCOME STATEMENT
for the year ended 31 January 2008
Year ended 31 January 2008 Year ended 31 January 2007
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Income 339 - 339 146 - 146
(Losses)/gains - (1,352) (1,352) - 58 58
on investments
339 (1,352) (1,013) 146 58 204
Investment (49) (147) (196) (40) (121) (161)
management
fees
Other expenses (204) (10) (214) (183) - (183)
Return on
ordinary 86 (1,509) (1,423) (77) (63) (140)
activities
before tax
Tax on (9) 9 - - - -
ordinary
activities
Return
attributable 77 (1,500) (1,423) (77) (63) (140)
to equity
shareholders
Basic and
diluted return 0.3p (10.2p) (9.9p) (0.5p) (0.4p) (0.9p)
per Ordinary
Share
Basic and
diluted return 1.5p (3.0p) (1.5p) N/A N/A N/A
per 'D' Share
The total column within the Income Statement represents the profit
and loss account of the Company. A Statement of Total Recognised
Gains and Losses has not been prepared as all gains and losses are
recognised in the Income Statement shown.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 31 January 2008
Year ended
31 January
Year ended 31 January 2008 2007
Total/
Ordinary 'D' Ordinary
Shares Shares Total Shares
�'000 �'000 �'000 �'000
Opening shareholders' funds 9,627 - 9,627 10,565
Proceeds from share issue - 2,836 2,836 -
Share issue costs - (156) (156)
Purchase of own shares (401) - (401) (353)
Total recognised losses for (1,384) (39) (1,423) (140)
the year
Distributions paid (420) - (420) (445)
Closing shareholders' funds 7,422 2,641 10,063 9,627
BALANCE SHEET
as at 31 January 2008
Year ended 31 January 2008 2007
Total/
Ordinary 'D' Ordinary
Shares Shares Total Shares
�'000 �'000 �'000 �'000
Fixed asset
Investments 7,331 2,608 9,939 8,753
Current assets
Debtors 124 37 161 176
Cash at bank and in hand 28 22 50 900
152 59 211 1,076
Creditors: amounts falling due
within one year (61) (26) (87) (202)
Net current assets 91 33 124 874
Net assets 7,422 2,641 10,063 9,627
Capital and reserves
Called up share capital 1,357 284 1,641 1,423
Capital redemption reserve 250 - 250 184
Special reserve - - - 756
Share premium account 4,984 2,396 7,380 4,984
Capital reserve - realised 2,471 (39) 2,432 1,418
Capital reserve - unrealised (2,600) (38) (2,638) (59)
Revenue reserve (441) 38 (403) (480)
Merger reserve 1,401 - 1,401 1,401
Total equity shareholders' 7,422 2,641 10,063 9,627
funds
Basic and diluted net asset
value 54.7p 93.1p 67.6p
per share
CASH FLOW STATEMENT
for the year ended 31 January 2008
Year ended 31 January 2008 2007
Total/
Ordinary 'D' Ordinary
Shares Shares Total Shares
�'000 �'000 �'000 �'000
Net cash outflow from
operating activities (165) (1) (166) (214)
Capital expenditure
Purchase of investments (4,529) (4,782) (9,311) (637)
Disposal of investments 4,773 2,125 6,898 1,739
Net cash inflow/(outflow)
from capital expenditure 244 (2,657) (2,413) 1,102
Equity distributions paid (420) - (420) (445)
Net cash (outflow)/ inflow
before financing (341) (2,658) (2,999) 443
Financing
Proceeds from share issue (82) 2,836 2,754 -
Share issue costs - (156) (156) -
Receipts in advance for 'D' - - - 82
share issue
Purchase of own shares (449) - (449) (365)
Net cash (outflow)/ inflow (531) 2,680 2,149 (283)
from financing
(Decrease)/increase in cash (872) 22 (850) 160
NOTES for the year ended 31 January 2008
1. Return per share
Ordinary shares 'D' Shares
Return per share based on:
Net revenue after taxation for the 39 38
financial year (�'000)
Weighted average number of shares in 13,980,205 2,548,625
issue
Capital return per share based on:
Net capital loss for the financial year (1,423) (77)
(�'000)
Weighted average number of shares in 13,980,205 2,548,625
issue
As the Company has not issued any convertible securities or share
options, there is no dilutive effect on return per ordinary share.
The return per share disclosed therefore represents both basic and
diluted return per ordinary share.
2. Net asset value per share
2008 2007
Shares in issue Net Asset Value Net Asset Value
2008 2007 Pence �'000 Pence �'000
per per
share share
Ordinary 7,422
Shares 13,569,956 14,231,626 54.7p 67.6p 9,627
'D' Shares 2,836,269 N/A 93.1p 2,641 N/A N/A
10,063 9,627
As the Company has not issued any convertible securities or share
options, there is no dilutive effect on net asset value per share.
The net asset value per share disclosed therefore represents both
basic and diluted net asset value per share.
Announcement based on audited accounts
The financial information set out in this announcement does not
constitute the Company's statutory financial statements in accordance
with section 434 Companies Act 2006 for the year ended 31 January
2008, but has been extracted from the statutory financial statements
for the year ended 31 January 2008, which were approved by the Board
of Directors on 28 May 2008 and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting. The
Independent Auditor's Report on those financial statements was
unqualified and did not contain any emphasis of matter nor statements
under s498 (2) and (3) of the Companies Act 2006.
The statutory accounts for the year ended 31 January 2007 have been
delivered to the Registrar of Companies and received an Independent
Auditors report which was unqualified and did not contain any
emphasis of matter nor statements under S237(2) or (3) of the
Companies Act 1985.
A copy of the full annual report and financial statements for the
year ended 31 January 2008 will be printed and posted to shareholders
shortly. Copies will also be available to the public at the
registered office of the Company at Kings Scholars House, 230
Vauxhall Bridge Road, London SW1V 1AU and will be available for
download from www.downing.co.uk.
- ---END OF MESSAGE---
Pennine Aim Vct (LSE:PAV)
Historical Stock Chart
From Jul 2024 to Aug 2024
Pennine Aim Vct (LSE:PAV)
Historical Stock Chart
From Aug 2023 to Aug 2024
