Interim Results
August 31 2010 - 9:53AM
UK Regulatory
TIDMPUMAHI
Puma High Income VCT plc
Interim Report
Chairman's Statement
Introduction
I am pleased to be presenting to you as Chairman the first interim report for
Puma High Income VCT plc (the 'Company') for the period to 30 June 2010.
The Company was incorporated in October 2009 and launched its Prospectus in
November 2009. It raised over GBP13.5 million by the time it closed in May 2010,
the larger part being in the Spring of 2010. The Investment Manager, Shore
Capital Limited, now has approximately GBP58 million of VCT money under management
and a well established, experienced VCT team to manage the Company's deal flow.
Investments
The period under review includes only a short time following completion of the
fundraising. The investment manager has reviewed a number of suitable
qualifying investments and expects to begin making such investments in the
second half of the year. As discussed in the Company's Information Memorandum,
it is the investment manager's intention to take advantage of the general
financing difficulties afflicting smaller companies thus providing ample
opportunity to provide debt at attractive terms. I look forward to reporting the
investment manager's developments in the annual report.
Net Asset Value ('NAV')
The NAV per share, the measure by which the net assets of the Company are split
equally across the number of shares in issue, was 96.20p at 30 June 2010. Since
the close of the Offer, the larger part of the net proceeds raised have taken
advantage of the attractive interest rates on offer on longer term deposits. We
envisage the cash yields will enhance returns for investors whilst the cash
awaits investment in suitable qualifying companies. The Investment Manager has
invested approximately GBP3.2 million into a range of bonds, bond funds and
absolute return funds. Whilst these funds have under-performed in the short
term, it is expected that they will generate strong returns in the future and
prevent the effect of cash drag on the Company. Performance of these assets
since the half year has been more encouraging.
VCT Qualifying Status
PricewaterhouseCoopers LLP ('PwC') provides the board and the investment manager
with advice on the ongoing compliance with Her Majesty's Revenue & Customs
('HMRC') rules and regulations concerning VCTs. PwC assists the Investment
Manager in establishing the status of investments as qualifying holdings and has
reported that the Company has met all HMRC's criteria to date.
Principal risks and uncertainties
Continuing uncertainty whilst the UK slowly comes out of recession has meant
that markets remain turbulent. The consequences of this for the Company's
investment portfolio constitute the principal risk and uncertainty for the
Company in the second half of 2010.
Outlook
Since the close of the Offer, the Investment Manager has met a number of
companies which are potentially suitable for investment. There is a good flow of
opportunities which may lead to suitable investments. We will update you in due
course as investments are completed. The restrictions on availability of bank
credit continue to affect the terms on which target companies can raise finance.
This should both increase the demand for our offering and improve the terms we
can secure when we offer finance. There are many suitable companies which are
well-managed, in good market positions, and which can offer security and need
our finance. We therefore believe the Company is strongly positioned to assemble
a portfolio to deliver attractive returns to shareholders in the medium to long
term.
Raymond Pierce
Chairman
31 August 2010
Income Statement (unaudited)
For the period ended 30 June 2010
For the period 7 October|
2009|
to 30 June 2010|
|
|
Revenue Capital Total|
Note GBP'000 GBP'000 GBP'000|
|
|
Losses on investments - (150) (150)|
|
Income 45 - 45|
|
|
|
45 (150) (105)|
|
|
|
|
|
Investment management fees 4 20 59 79|
|
Performance fees - - - |
|
Other expenses 64 - 64|
|
|
|
84 59 143|
|
|
|
Return/(loss) on ordinary activities before |
taxation (39) (209) (248)|
|
Tax on return on ordinary activities - - - |
|
|
|
Return/(loss) on ordinary activities after tax |
attributable to |
equity shareholders (39) (209) (248)|
|
|
|
Basic and diluted |
|
Loss per Ordinary Share (pence) 2 (0.43)p (2.28)p (2.71)p|
|
|
|
The revenue column of this statement is the profit and loss of the Company. All
revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.
Balance Sheet (unaudited)
As at 30 June 2010
As at
30 June 2010
Note GBP'000
Fixed Assets
Investments 7 3,067
Current Assets
Debtors 68
Cash 10,319
10,387
Creditors - amounts falling due within one year (300)
Net Current Assets 10,087
Total Assets less Current Liabilities 13,154
Creditors - amounts falling due after more than one year
(including convertible debt) (1)
Net Assets 13,153
Capital and Reserves
Called up share capital 137
Share premium account 13,264
Capital reserve - realised (61)
Capital reserve - unrealised (148)
Other reserve -
Revenue reserve (39)
Equity Shareholders' Funds 13,153
Net Asset Value per Ordinary Share 3 96.20p
Diluted Net Asset Value per Ordinary Share 3 96.20p
Cash Flow Statement (unaudited)
For the period ended 30 June 2010
For the period 7 October 2009 to 30 June 2010
GBP'000
Operating activities
Investment income received 8
Other cash payments (4)
Net cash inflow from operating activities 4
Financing
Proceeds received from issue of ordinary share capital 13,519
Proceeds received from issue of redeemable preference shares 13
Proceeds received from convertible loan notes 1
Net cash inflow from financing 13,533
Capital expenditure and financial investment
Purchase of investments (3,216)
Transaction costs (2)
Net cash outflow from capital expenditure and financial investment (3,218)
Increase in cash 10,319
Reconciliation of net cash flow to movement in net funds
Increase in cash for the period 10,319
Net cash at start of the period -
Net funds at the period end 10,319
Reconciliation of Movements in Shareholders' Funds (unaudited)
For the period ended 30 June 2010
Called up Share Capital Capital
share premium reserve- reserve- Other Revenue
capital account realised unrealised reserve reserve Total
GBP'000 GBP'00 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the period 7 October 2009 to 30 June 2010
Share 13,535
issues in
the period 137 - - - - 13,672
Expenses of
share issues - (271) - - - - (271)
Total
recognised
losses for
the period - - (61) (148) - (39) (248)
--------------------------------------------------------------------
Balance at
30 June 2010 137 13,264 (61) (148) - (39) 13,153
Notes to the Interim Report
For the period ended 30 June 2010
1.Accounting Policies
The financial statements have been prepared under the historical cost
convention, modified to include the revaluation of fixed asset investments, and
in accordance with applicable Accounting Standards and with the Statement of
Recommended Practice, "Financial Statements of Investment Trust Companies and
Venture Capital Trusts" ("SORP").
2.Return per Ordinary Share
The total loss per share of 2.71p is based on the loss for the period of
GBP248,000 and the weighted average number of shares in issue as at 30 June 2010
of 9,151,432 calculated from the date of the first receipt of proceeds from the
issue of ordinary share capital.
3.Net asset value per share
+--------------+-------------+-----------------+---------------------------+
| | | | Net Asset Value per share |
| +-------------+-----------------+--------+------------------+
| Period | Net assets | Shares in issue | Basic | Diluted |
+--------------+-------------+-----------------+--------+------------------+
| 30 June 2010 | GBP13,153,000 | 13,671,870 | 96.20p | 96.20p |
+--------------+-------------+-----------------+--------+------------------+
4.Management fees
The Company pays the Investment Manager an annual management fee of 2% of
the Company's net assets. The fee is payable quarterly in arrears. The annual
management fee is allocated 75% to capital and 25% to revenue.
5.Related Party Transactions
The Company has appointed Shore Capital Limited, a company of which Graham
Shore is a director, to provide investment management services. During the
period GBP79,000 was due in respect of investment management fees. The total of
this balance was outstanding as at the period end.
6.The financial information for the period ended 30 June 2010 has not been
audited and does not comprise full financial statements within the meaning of
Section 423 of the Companies Act 2006. The interim financial statements have
been prepared on the same basis as will be used to prepare the annual financial
statements.
Notes to the Interim Report continued
For the period ended 30 June 2010
7.Investment portfolio summary
Valuation Cost Gain/ Valuation as a % of Net
As at 30 June 2010 GBP'000 GBP'000 (loss) Assets
Non-qualifying investments
BluBay Macro Fund Limited 242 250 (8) 3%
HBOS Capital Funding LP Bond 207 238 (31) 2%
Investec Finance Bond 139 146 (7) 1%
Jupiter Strategic Bond 191 200 (9) 1%
Legal & General Dynamic Bond
Trust 189 200 (11) 1%
Old Mutual Corporate Bond 193 200 (7) 1%
Puma Absolute Return Fund
Limited 1,832 1,900 (68) 14%
RBS 7.375% Perpetual Bond 74 82 (8) 1%
--------------------------------------------------
Total investments 3,067 3,216 (149) 23%
Balance of portfolio 10,086 10,086 77%
--------------------------------------------------
Net Assets 13,153 13,302 (149) 100%
[HUG#1441681]
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(i) the releases contained herein are protected by copyright and
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Puma High Income VCT PLC via Thomson Reuters ONE
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