New Developments
February 27 2001 - 6:04AM
UK Regulatory
RNS Number:5766Z
TriVest VCT PLC
27 February 2001
TRIVEST VCT PLC
NEW DEVELOPMENTS
27 February 2001
Size of the Offer for Subscription
On 26 February 2001 the board of TriVest resolved to increase
the size of the offer for subscription from 40,000,000
ordinary shares of 1p each to 55,000,000 ordinary shares of 1p
each at an issue price of 100p per share.
Investments
On 14 December 2000 the Company made an investment of
#515,000 (valued at #515,000 as at 27 February 2001) in
i-documentsystems group plc ("i-documentsystems") in return
for a 3.2 per cent. interest, with each share carrying
one vote. i-documentsystems produces and develops
software which provides a fully integrated and adaptable
system for document, content and information management
through a web based application. Its principal product
is Image-Gen, a sophisticated web-based software package
which allows a complex paper-based process, such as a
local authority planning application, to be converted
into a straightforward and robust electronic process
leading to significant savings in cost and time.
The proceeds from the placing of shares will be used to
fund a sales drive, as well as continued product
development, roll-out of the UK planning internet model,
which is the latest adaptation of Image-Gen, and the
launch of an active service page facility.
The following financial information has been extracted
from the audited accounts of i-documentsystems for the
year ended 31 March 2000: turnover #795,000; loss before
taxation #103,000; retained losses #2.33 million; net
liabilities #1.59 million.
On 15 December 2000 the Company made an investment of
#900,000 (valued at #900,000 as at 27 February 2001)
in TJ Brent Limited ("Brent") in return for a 8.45 per
cent. interest, with each share carrying one vote.
Brent's principal activity is contracting for the water
utility sector. This involves the laying and
refurbishment of pipes, connections of houses to the
mains and the installation and replacement of water
meters. Brent also supplies services to an electricity
utility company.
The proceeds from the placing were used to finance the
management buyout of Brent from Pennon Group Plc.
The following financial information has been extracted
from the audited accounts of Brent for the year ended 31
March 2000: turnover #56.0 million; profit before
taxation #1.43 million; net assets #5.36 million.
On 15 February 2001 the Company made an investment of
#1,000,000 (valued at #1,000,000 as at 27 February 2001)
in Zynergy Group Limited ("Zynergy") in return for a 2.0
per cent. interest, with each share carrying one vote.
Zynergy is a rapidly growing global meditech company and
has developed core technology expertise in the areas of
materials, coatings and process technologies. It has
existing proprietary products in two areas - medical
devices and materials for medical devices. In the
medical devices world it is focused on minimally invasive
electrophysiology, cardiology and orthopaedics. In the
future Zynergy will introduce further products based on
similar technologies for use in urology and respiratory
care.
The proceeds from the placing will be used for working
capital.
The following financial information has been extracted
from the audited accounts of Zynergy for the year ended
31 December 1999: turnover #3.62 million; loss before
taxation #4.50 million; net assets #4.24 million.
On 15 February 2001 the Company also made an investment
of #1,000,000 (valued at #1,000,000 as at 27 February
2001) in LeSac Limited ("LeSac") in return for an 8.8 per
cent. interest, with each share carrying one vote. LeSac
is commercialising patented packaging equipment and
patented product offering significant advantages over
existing solutions. The technology consists of a
polythene 'bag' offering the benefits of space efficiency
and flexibility when empty and rigidity when full. The
EU Packaging Waste Directive has set compliance targets
for the recovery and recycling of packaging waste. To
achieve these targets, levies are being imposed by all
member countries to encourage the packaging industry to
minimise packaging used and therefore reduce costs of
disposal. LeSac has developed such a system and is
commercialising a unique patented product which will
address the environmental legislation as well as create
cost savings and high value-added opportunities for its
customers.
The proceeds from the placing will be used for working
capital and capital expenditure for new machinery.
The following financial information has been extracted
from the audited accounts of LeSac form the year ended 31
December 1999: turnover #352,000; loss before taxation
#434,000; net assets #97,000.
On 15 February 2001 the Company also made an investment
of #1,000,000 (valued at #1,000,000 as at 27 February
2001) in Machinery & Automated Technology Limited
("MAST") in return for a 25 per cent. interest, with each
share carrying one vote. MAST is engaged in developing
and bringing to market LeSac's third generation packaging
machinery and a Mini-Millenium Vertical Turning & Machine
Centre. MAST has been chosen by LeSac as exclusive
supplier of its third generation specialist packaging
machines. The Mini-Millenium is a smaller low-
specification machine that complements the Millenium
machine range developed and manufactured by Webster &
Bennett Limited.
The proceeds from the placing will be used to fund
further product development and manufacturing.
MAST commenced trading in May 2000 and there are no
audited accounts to date.
The investments in i-documentsystems, Brent, Zynergy,
LeSac and MAST have been valued in line with British
Venture Capital Association guidelines.
VCF Partners' Track Record
On 13 October 2000 the Company published a prospectus
("the Prospectus") in connection with an offer for
subscription of up to 40,000,000 ordinary shares of 1p
each at 100p per share.
In the Prospectus, the following statements were made
regarding the track record of one of TriVest's managers,
VCF Partners, who also act as investment advisers to
Foresight Technology VCT plc ("Foresight") and Fleming
Ventures Limited ("Fleming Ventures").
"The Ordinary Share fund of Foresight has produced a
return of 164 per cent. per annum to 30 September 2000."
and "The return for the Ordinary Share fund of Foresight
and Fleming Ventures was 20 per cent. per annum to 30
September 2000."
These reported returns included the valuation at 30
September 2000 of an investment in e-district.net plc
("e-district") which at that date comprised a substantial
part of the venture capital portfolio of Foresight.
On 19 February 2001 TriVest noted announcements by
e-district and Foresight which included the following. "The
board of e-district has reason to believe that the
reported numbers for registered users, page impressions
and revenues have been substantially overstated. It is
not clear over what period of time this overstatement has
occurred, but it could include all of 2000". "The
board, together with its external advisers, has commenced
a full investigation. In order to protect investors, the
board has requested a suspension of the quotation of
e-district's shares."
In order to provide information to TriVest shareholders
in advance of the outcome of the investigations, the
returns achieved by VCF Partners in the Foresight and
Fleming Ventures funds have been recalculated excluding
the investment in e-district. The Board believes that
this is the most appropriate and prudent course of
action.
It is emphasised that TriVest itself has no investment in
e-district and the only effect on TriVest is in respect
of the returns achieved by VCF Partners in other funds
that they manage.
Excluding the current investment in e-district, the
Ordinary Share fund of Foresight has produced a return of
95 per cent. per annum to 30 September 2000 and the
return for the Ordinary Share fund of Foresight and
Fleming Ventures was 18 per cent. per annum to 30
September 2000.
Excluding the current investment in e-district, the
Ordinary Share fund of Foresight has produced a return of
79 per cent. per annum to 16 February 2001 and the return
for the Ordinary Share fund of Foresight and Fleming
Ventures was 21 per cent. per annum to 16 February 2001.
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