RNS Number:0604P
TriVest VCT PLC
20 December 2001
TriVest VCT plc
Preliminary Results Announcement
Chairman's Statement
I am pleased to present the first Annual Report of the Company for the period
from 6th September 2000 to 30th September, 2001.
You will recall that the Offer opened on 18th October 2000 and closed on 6th
April 2001 having raised a total of #41,801,516.
The objective of the Company is to provide its Shareholders with an attractive
return, by maximising the stream of dividend distributions from the income and
capital gains generated from a diverse portfolio of investments selected by
our three specialist managers, GLE, LICA and VCF Partners.
At 30th September, 2001 the Company's net asset value per share was 92.04
pence. This compares with a subscription price of 100 pence and an initial net
asset value (after expenses of issue) of 94.52 pence per share.
In the period under review, the tragic events of 11th September, 2001 and the
economic climate and difficult stock market, both prior to and following these
terrorist actions, has inevitably dominated the environment in which the
Company operates. The venture capital and private equity market has, if
anything, been as heavily hit as quoted technology stocks in that the general
sentiment for investing has been unfavourable. A "wait-and-see" mood has
prevailed. It is difficult to foresee this sentiment changing very rapidly
although clearly in due course exciting opportunities to invest should present
themselves and probably on more favourable terms.
As can be expected at this stage in its life, the Company's portfolio is still
comprised mainly of cash and short-dated Gilt-edged securities. However, in
the period under review, each of our three venture capital investment
managers, GLE, LICA and VCF Partners, has been active in carefully identifying
attractive companies in which TriVest can participate as an investor.
Considerable emphasis is being placed by the Company and its Managers on the
"due diligence" process. The Manager's report regularly and in detail to your
Board on the progress of their individual portfolios. In addition, your Board
has already taken the opportunity to visit the management of a number of the
Company's investments in order to assess personally their performance.
At 30th September, 2001 the Company had made investments in 13 venture capital
companies with a total cost of #8,722,624. A further #4,030,435 has been
earmarked for investment in 7 companies. Summary descriptions of each of these
investments can be found below and the entire portfolio has been valued in
accordance with BVCA guidelines.
The Company's revenue earnings were 1.67 pence per share and your Board is
recommending a final dividend per ordinary share in respect of the period
under review of 1.2 pence to be paid to shareholders on the register on 18
January 2002.
Despite the recent events in New York and Washington and the turbulent
development capital market over the last year, your Board are pleased with the
progress that the Company has made. We remain confident that the Company and
its Managers have the capability and experience to take advantage of good
investment opportunities which may arise in these difficult markets. We are
convinced that the multi-manager approach can only benefit the Company and its
Shareholders at this time.
David Atterton, Chairman.
20 December 2001.
Statement of Total Return
(incorporating the Revenue Account of the Company)
for the period from 6 September 2000 to 30 September 2001
Period ended 30 September 2001
Notes Revenue Capital Total
# # #
Unrealised gains and (losses) on - (782,897) (782,897)
investments
Realised gains and (losses) on - 112,584 112,584
investments
Income 1,240,092 - 1,240,092
Investment management fees 3 (168,395) (505,183) (673,578)
Other expenses (373,105) - (373,105)
----------- ------------ ------------
Return on ordinary activities 698,592 (1,175,496) (476,904)
before taxation
Tax on ordinary activities (157,001) 101,037 (55,964)
------------ ----------- -----------
Return on ordinary activities 541,591 (1,074,459) (532,868)
after taxation
Dividend 6 (501,618) - (501,618)
----------- ----------- -----------
Transfer to reserves 39,973 (1,074,459) (1,034,486)
----------- ----------- -----------
Return per Ordinary Share 1.67p (3.32)p (1.65)p
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the period.
Balance Sheet
As at 30 September 2001
as at 30 September 2001
# # #
Fixed Assets
Investments 16,034,927
Current Assets
Debtors and prepayments 515,195
Other assets 1,730,436
Cash at bank 21,315,917
-------------
23,561,548
Creditors: amounts falling due within
one year
Corporation tax 48,266
Other creditors 378,418
Accruals 694,688
-------------
(1,121,372)
Net current assets 22,440,176
-------------
Net assets 38,475,103
-------------
Capital and reserves
Called up share capital 418,015
Share premium account 39,091,574
Capital reserve - realised (291,562)
Capital reserve - unrealised (782,897)
Revenue reserves 39,973
-------------
38,475,103
-------------
NAV per share 92.04p
Summarised Cash Flow Statement
Period
ended
30th September
2001
Operating activities # #
Investment income received 725,400
Dividend income -
Investment management fees paid (411,302)
Other cash payments (72,094)
-------------
Net cash inflow from operating activities 242,004
Taxation
UK Corporation tax paid
Investing activities
Acquisition of investments (25,448,624)
Disposal of investments 8,743,384
-------------
(16,705,240)
Dividends
Payment of dividend -
Cash outflow before financing and liquid -------------
resource management (16,463,236)
Financing
Issue of ordinary shares 39,509,589
Management of liquid resources
Increase in monies held pending investment (1,730,436)
-------------
Increase in cash for the period 21,315,917
-------------
Notes
1. The revenue column of the statement of total return is the profit and loss
account of the Company.
2. All revenue and capital items in the above statement of total return derive
from continuing operations.
3. In accordance with the policy statement published under "Management
Administration" in the Company's prospectus dated 13 October 2000, the
Directors have charged 75% of the investment management expenses to
capital reserve.
4. The basic return per Ordinary Share is based on the net revenue from
ordinary activities after tax of #541,591 and is based on 32,332,375
Ordinary Shares, being the weighted average number of Ordinary Shares in
issue during the period.
5. The financial information set out in these statements does not constitute
the Company's statutory accounts for the period ended 30 September 2001
but is derived from those accounts. Statutory accounts will be delivered
to the Registrar of Companies following the Company's Annual General
Meeting to be held on 13 February 2002. The auditors have reported on
these accounts; their reports were unqualified and did not contain
statements under Section 237(2) or (3) of the Companies Act 1985.
6. The Company proposes to pay a final dividend of 1.2p per share
on 18 February 2002 to all shareholders on the register on 18 January
2002.
Investment Portfolio Summary
Cost at Valuation at % of
portfolio
acquisition 30 Sept 2001 By value
GLE Development Capital Limited
T J Brent Limited #900,000 #900,000 5.61%
Specialist contractor to the water
utility sector
Letraset Limited #500,000 #500,000 3.12%
Graphic arts products
Total #1,400,000 #1,400,000
------------- -------------
LICA Development Capital Limited
Machinery and Automated Systems
Technology
Limited (MAST) #1,000,000 #950,000 5.92%
Development of Vertical Turning and
Machining Centres
Le Sac Limited #1,000,000 #1,000,000 6.24%
Manufactures plastic packing for powder
/
granular products and liquids
Trident Publishing Limited #705,000 #705,000 4.40%
Book publishing in the Maritime sector
i-documentsystems group plc #517,624 #666,667 4.16%
Document storage systems
Zynergy Group Limited #1,300,000 #640,000 3.99%
Commercialising new materials for
medical
devices
Watkins Books Limited #500,000 #500,000 3.12%
Supplier of books in Alternative
Sciences,
Heath, Philosophy and related sectors
Tikit Group plc #500,000 #478,260 2.98%
Consultancy, services and software
solutions for
law firms
Total #5,522,624 #4,939,927
------------- -------------
VCF Partners
ANT Limited #1,000,000 #1,000,000 6.24%
Provider of embedded browser/email
software
For consumer electronics and internet
appliances
Heritage Image Partnerships Limited #300,000 #300,000 1.87%
On-line image library
Monactive Limited (formerly Xpert
Client
Systems Ltd) #250,000 #250,000 1.56%
Software management tools that monitor
usage of
software versus licences held
iDesk plc #250,000 #125,000 0.78%
Helpdesk services and software,
Electronic
Billing Services
Total #1,800,000 #1,675,000
------------- -------------
Managers' Totals #8,722,624 #8,014,927
Fixed interest portfolio #8,020,000 50.01%
TOTAL #16,034,927 100.00%
-------------
Managers' Review
GLE Development Capital
T J Brent Limited
T J Brent is a specialist water utility contractor. Its principal activity
involves the laying and refurbishment of pipes, connection of houses to the
mains, and the installation and replacement of water meters. TriVest invested
#900,000 in T J Brent in December 2000. The business continues to trade in
line with business plan at the operating level. Whilst the company has lost a
significant contract in the period compensatory gains have been achieved in
other areas.
The investment remains valued at cost. No audited accounts have been produced
since the Company was incorporated on 24 July 2000. #38,492 was received as
income from loan stock during the period out of a total of #55,607 receivable.
TriVest owns 8.45% (7.6% post-dilution) of the total equity of the Company
which comprises 100% ordinary shares.
Letraset Limited
In June 2001 TriVest invested #500,000 in Letraset Limited, formerly Creative
Opportunities Limited.
The principal activity of Letraset is the production and worldwide
distribution of graphic arts products. The products are sold to end users via
a network of specialist distributors in each of the major developed markets.
Since investment, activities have been consolidated onto one site.
The company has traded in line with business plan despite a downturn in demand
from the US. The company has a pipeline of new product launches which serve to
underpin the sales growth strategy.
No audited accounts have been produced since the Company was incorporated on 9
October 2000 and TriVest's investment continues to be valued at cost. TriVest
owns 17.35% of the total equity of the Company which comprises 100% ordinary
shares. #11,967 was receivable as income from loan stock during the period.
LICA Development Capital Limited
Machinery and Automated Systems Technology Limited (MAST)
MAST is engaged in developing and manufacturing specialist machine tools,
including a Mini-Millennium Vertical Turning & Machining Centre and LeSac's
third generation specialist packaging machinery for which it is the exclusive
supplier.
An investment of #1,000,000 was made by TriVest into MAST in February 2001 to
provide funding for product development and manufacturing for these products.
Information provided in the latest audited accounts for the period to 31
December 2000 is as follows: Turnover #1,373,032; Profit before Tax #23,466;
Net Assets #120,166. The valuation on the loan stock is at cost and a 50%
provision has been made against the equity in respect of production delays
that resulted in sales not achieved during the period. TriVest owns 24.99% of
the total equity of MAST which comprises 100% ordinary shares. #3,000 was
received as income from loan stock during the period.
LeSac Limited
LeSac is commercialising a unique packaging system that offers significant
advantages over existing solutions through a combination of lower material
content, increased space utilisation and lower environmental tax levies.
LeSac's third generation product addresses the higher compliance requirements
of the EU Packaging Waste Directive for the recovery and re-cycling of
packaging waste as well as creating cost savings and value added opportunities
for its customers.
In February 2001, TriVest made an investment of #1,000,000 in LeSac Limited to
provide additional working capital and production capacity for the Company.
Information provided in the latest audited accounts for the year ended 31
December 2000 is as follows: Turnover #226,266; Loss before Tax #764,707; Net
Liabilities #173,149. The valuation is at cost. TriVest owns 9.34% of the
total equity of LeSac which comprises 100% ordinary shares. #43,534 was
receivable as income from loan stock during the period.
Trident Publishing Limited
Trident publishing is a Newco which has been formed especially for the MBO
acquisition of Chatham Publishing, the leading, independent, maritime
publisher. The Company is a specialist in the military and historical
publishing sector.
TriVest made an investment of #705,000 in Trident in May 2001 and the Company
is on target with its original projections. The Company's year-end is 30
September and no audited accounts have been finalised since the incorporation
of the company. TriVest owns 36.84% of the total equity of the Company which
comprises 100% ordinary shares. The valuation is at cost. #14,405 was
receivable as income from loan stock during the period.
i-documentsystems group plc
i-documentsystems group plc ("i-dox") is an established and fast growing
software company which specialises in the development of products for
document, content and information management. The Group's principal product is
Image-Gen, a sophisticated web-based software package which allows a complex
paper-based process, such as the local authority planning application process,
to be converted into a straightforward and robust electronic process leading
to significant savings in cost and time. Image-Gen is a proven product which
has been "live" as a web-based system since 1995. i-dox has recently secured
business in Glasgow and Gosport relating to Building Control and Tax/Benefits
respectively. i-dox is thus achieving diversification of product deployment as
was envisaged at flotation.
TriVest made an investment of #517,624 in this fast growing software company
in December 2000. Now quoted on AIM, the value of TriVest's investment as at
30 September 2001 was #666,667. Information provided in the latest audited
accounts for the year ended 31 October 2001 is as follows: Turnover #
1,201,192; Loss before Tax #1,181,273; Net Assets #2,667,086. TriVest owns
3.2% of the total equity of i-documentsystems which comprises 100% ordinary
shares. No income was received from the investment during the period.
Zynergy Group Limited
Zynergy is a rapidly expanding global medi-tech organisation exploiting its
fully-developed materials, coatings and other similar technologies. These
revolutionary technologies enable and enhance Zynergy's existing proprietary
products in high-value sectors, namely minimally-invasive cardiology,
balloons, stents and orthopaedics as well as other critical areas, with
respiratory and urology products to follow.
On 20 September 2000 the Company acquired the entire issued share capital of
Blastrelease Limited now called Zynergy Orthopaedics Limited. During 2000 the
Company set up two new ventures. Zynergy Interventional Cardiology was
established to manufacture and market catheters and stents for the
interventional cardiology market and Zynergy Precision Extrusion was
established as a joint venture with Precision Extrusion Inc. to manufacture
and market tubing using the proprietary polymers of Zynergy Core Technology.
The Group will continue to invest in the medical sector.
TriVest invested #1,000,000 in Zynergy Group Limited in February 2001 and an
additional #300,000 in September 2001 to provide working capital and capital
for product development. Information provided in the latest audited accounts
for the period to 31 December 2000 is as follows: Turnover #2,179,080; Loss
before Tax #4,066,393, Net Assets #5,709,570. The valuation of the loan stock
is at cost. The valuation of the equity has however been decreased by #660,000
to take account of the effect of a current Rights Issue and Offer. TriVest
owns 1.9% of the total equity of the Company which comprises 100% ordinary
shares. #31,096 was receivable as income from loan stock during the period.
Watkins Books Limited
In March 2001, TriVest made an investment of #500,000 in Watkins Books
Limited. Watkins is the pre-eminent UK supplier of books and information in
the alternative sciences, health, philosophy and related sectors.
Its business is organised in four distinct divisions: Watkins Bookshop and
Watkins Esoteric Centre; Watkins Readings; Watkins Website and Mail Order; and
Watkins Publishing which are all currently under development. The original
Watkins bookshop in Cecil Court has been refurbished with an increased sales
area and three additional shops are being developed. The Watkins website is
due to be launched in the first quarter of 2002 and mail order sales are
rising sharply. 40 publishing titles have been commissioned of which 50% have
progressed to publication.
Information provided in the audited accounts for the period to 31 March 2000
is as follows: Turnover #333,716; Loss before tax #35,137; Net Assets #73,868.
The valuation is at cost. TriVest owns 12.5% of the total equity of the
Company which comprises 100% ordinary shares. #20,416 was receivable as income
from loan stock during the period.
Tikit Group plc
Tikit provides consultancy services and software solutions primarily to IT
departments of the top 200 law firms. Tikit also resells third party software
applications where it considers these to be 'best of breed'.
Tikit has developed a proficient technical skillbase focussed on the
requirements of major legal practices and has established a strong brand
reputation in its market sector. Since it was established in 1994, the Company
has shown profitable growth in each financial year to date and increased
turnover from #6.5m to #9.3m in 2000. Tikit has been innovative in developing
the market for specific applications in the legal sector, establishing
commercial relationships with a number of software vendors for specific
applications relevant to that sector. It combines these with its own software
enhancement modules and integration capabilities to provide solutions tailored
principally for major law firms.
An investment of #500,000 was made by TriVest in June 2001, in Tikit Group
plc. Tikit has been listed on the Alternative Investments Market since June
2001 and the value of TriVest's investment as at 30 September 2001 was #
478,260. Information provided in the latest audited accounts for the period to
31 December 2000 is as follows: Turnover #1,866,351; Loss before Tax #848,332,
Net Assets #317,667. TriVest owns 3.0% of the total equity of Tikit which
comprises 100% ordinary shares. No income was received from the investment
during the period.
VCF Partners
ANT Limited
ANT Ltd is a software company that develops embedded browsers to improve
users' interactive communication with digital television sets and other
consumer electronic devices.
TriVest made an investment of #1,000,000 in ANT Limited in July 2001.
Information provided in the latest audited accounts for the period to 31
December 2000 is as follows: Turnover #1,866,351; Loss before Tax #848,332,
Net Assets #317,667. TriVest owns 5.3% of the total equity of the Company
which comprises 100% ordinary shares. #518 was receivable as income from loan
stock during the period.
Heritage Image Partnership Limited
Heritage Image Partnership Limited is building an online library of
high-resolution images from exclusive access to the content of heritage
institutions, principally museums and libraries, and sells directly to
business customers.
The company launched its service in April 2001 and is generating a good level
of interest.
TriVest invested #300,000 in Heritage Image Partnership Ltd in March 2001.
Information provided in the latest audited accounts for the 11 months to 31
December 2000 is as follows: Turnover Nil; Loss before Tax #1,376,794, Net
liabilities #1,375,795. TriVest owns 5.9% of the total equity of the Company
which comprises 100% ordinary shares. No income was received from the
investment during the period.
Monactive Limited (formerly Xpert Client Systems Limited)
Monactive Limited is a leading provider of Software Asset Management (SAM)
tools with over 100 customers. The Company's software monitors software usage
on PC networks providing corporates with data for cost reduction and
compliance. Its customers are able to reduce their software licensing costs
whilst demonstrating legal compliance.
TriVest invested #250,000 in Monactive Ltd in March 2001. Information provided
in the latest audited accounts for the period to 31 July 2000 is as follows:
Turnover #261,753; Loss before Tax #320,800; Net Liabilities #287,249. TriVest
owns 5.9% of the total equity of the Company which comprises 100% ordinary
shares. #2,521 was receivable as income from loan stock during the period.
iDesk plc
IDesk provides telcos, ISPs and other blue chip customers with outsourced
technical help desks, operated from a call centre in London. iDesk also sells
its proprietary and licensed CRM software and provides electronic billing
services. The Board believes it is prudent to write down the investment by 50%
due to difficult trading conditions in the company's market. TriVest made an
investment in iDesk plc of #250,000 in November 2000. Information provided in
the latest audited accounts for the 17 month period to 31 December 2000 is as
follows: Turnover #8,303,186; Loss before Tax #1,398,464, Net Liabilities #
989,723. TriVest owns 0.83% of the total equity of the Company which comprises
100% ordinary shares. No income was received from the investment during the
period.
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