RNS Number:9855F
TriVest VCT PLC
03 December 2004
TRIVEST VCT PLC
Chairman's Statement
I am pleased to present the preliminary results of the Company for the year
ended 30 September 2004.
Net Asset Value
At 30 September 2004, the Company's Net Asset Value (NAV) per share had risen to
80.02 pence (2003: 72.56 pence), a rise of just over 10%. This is a particularly
pleasing and welcome outcome. The Company, including the proposed final dividend
of 1.25 pence per share detailed below, will have distributed accumulated
dividends of 5.45 pence per share since the Company's launch. This compares with
the initial NAV (after the launch expenses of the issue) of 94.5 pence per
share.
Economic Background
The environment in which venture capital managers have worked over the last six
months has not been easy. The widely anticipated economic recovery has not
really occurred and, where it has, it has been uncertain and rather weaker than
expected. Stock markets have been affected by the continuing worldwide security
issues and by the rise in the price of oil. The new issues market, an important
possible exit route for venture capital investments, after a high level of
activity in the first six months of 2004, is now much more selective.
Nevertheless, this difficult environment has thrown up several interesting new
investments for TriVest and the Board remains hopeful that the improvement in
the performance of the portfolio will continue in the short to medium term.
Portfolio
At present, VCF LLP trading as Foresight Venture Partners Limited (Foresight)
manage some 50% of the portfolio with Matrix Private Equity Partners (MPEP)
managing nearly 40% and Nova Capital Management Limited (Nova) the balance. By
market sector, the portfolio is dominated by investments in technology companies
at nearly 60%, with manufacturing companies at 14%, construction and building
materials at just over 11% and the balance in a variety of other sectors. When
the portfolio is considered by stage of development, the portfolio is more
evenly spread with over 41% invested in MBO / MBI situations, over 28% in
development capital companies, nearly 22% in early stage investments with over
8% of the portfolio being quoted (primarily in AIM stocks).
Within the MPEP portfolio the performance of HWA Limited (trading as Holloway
White Allom) has been notable. In April 2004, following strong trading, that
company redeemed TriVest's Preference Shares for over #1m together with a
Preference Dividend of over #28,000. The company continues to trade strongly. In
May 2004, The Hunter Rubber Company Limited, a recent investment by TriVest,
which is also trading well, acquired another company in a similar business. In
June 2004, TJ Brent was sold to May Gurney Limited, an East Anglian based
contracting business. TriVest's share of the proceeds was #2.1m. Two new
investments have been made with #1m being invested into OA Acquisition Limited
(trading as Original Additions), a distributor of false nails and eyelashes and
depilatory products, and with #750,000 being invested into Tottel Publishing
Limited, a publisher of legal and other specialist books (this latter investment
was made after the year end).
Nova continues to work hard to recapture and create value from the portfolio
they inherited. An additional investment of #220,000 was made into IDOX plc
(formerly i-documentsystems group plc). Zynergy Group Limited was placed into
liquidation and it is still not clear whether TriVest will receive any
recoveries.
The Foresight portfolio has seen an active period. In July 2004, a new
investment of #50,000 was made into Aigis Engineering Solutions Limited, a
manufacturer of protective products in the security industry. Additional
investments were made in May 2004 into Sarantel Limited of #52,000 and in
October 2003 and June 2004 into Broadreach Networks Limited (and its subsidiary
Broadreach Train Services Limited) totaling #1,000,000. Also in June 2004, loans
of over #50,000 were approved to Alaric Systems Limited. In September 2004,
further investments of #200,000 and #153,732 were agreed to be made into
SmartFOCUS Group plc (formerly SmartFOCUS Holdings Limited) and Sarantel Limited
respectively, the former of which was linked to an IPO. That company is now
listed on AIM. In addition, several of the investments within the Foresight
portfolio are expected to be possible IPO candidates within the next twelve
months.
Board of Directors
In my recent Interim Report, I referred to Helen Sinclair's decision to resign
from the Board due to a possible perceived conflict of interests. The Board
continues to seek a suitably qualified replacement. This is at a final stage. In
the meantime, Helen continues to provide her services to the Company as
previously agreed with her.
In September 2004, Christopher Moore was appointed Chairman of Oxonica Limited,
one of TriVest's investee companies.
Revenue Account
Total income received fell by #294,518. Net income has also fallen from #569,961
to #414,172, a fall of #155,789. This was mainly due to there being no income
from the higher income yielding Cazenove fixed-interest portfolio (#634,186
earned last year), which was liquidated during last year. The resulting funds
were moved into lower income-yielding OEIC money-market funds, which earned
#313,817 (2003: #167,914). The fall in income from funds pending investment was
partially offset by an increase in dividends and loan stock interest from
investments this year.
Fund management fees fell by #163,835, due to the fall in the percentage charged
from 2% to 1.6% of each Manager's portion of the portfolio.
Dividend
The Company's revenue return per Ordinary Share was 0.99 pence per share (2003:
1.37 pence per share). Your Board will be recommending a final dividend of 1.25
pence per Ordinary Share in respect of the year under review at the Annual
General Meeting to be held on 26 January 2005. The dividend will be paid on 4
February 2005 to shareholders on the Register on 7 January 2005.
Share buy-backs
During the year ended 30 September 2004, the Company continued to implement its
buy-back policy and, accordingly, bought back 467,282 Ordinary Shares
(representing 1.13% of the shares in issue at the period end) at a total cost of
#280,566 (net of expenses). These shares were subsequently cancelled by the
Company.
Colin Hook
Chairman
2 December 2004
STATEMENT OF TOTAL RETURN
(Incorporating the Revenue Account of the Company) for the year ended 30
September 2004
Year ended 30 September 2004 Year ended 30 September 2003
Revenue Capital Total Revenue Capital Total
# # # # # #
Unrealised losses on - 2,774,109 2,774,109 - (1,270,291) (1,270,291)
investments
Realised losses on investments - 666,281 666,281 - (261,901) (261,901)
Income 1,163,180 - 1,163,180 1,457,698 - 1,457,698
Investment management fees (152,171) (456,512) (608,683) (193,129) (579,389) (772,518)
Other expenses (441,468) - (441,468) (451,401) - (451,401)
------------ ------------ ------------ ------------ ------------ ------------
Return on ordinary
activities before taxation 569,541 2,983,878 3,553,419 813,168 (2,111,581) (1,298,413)
Tax on ordinary activities (155,369) 131,914 (23,455) (243,207) 182,120 (61,087)
------------ ------------ ------------ ------------ ------------ ------------
Return on ordinary
activities after taxation 414,172 3,115,792 3,529,964 569,961 (1,929,461) (1,359,500)
Dividend (515,996) - (515,996) (521,837) - (521,837)
------------ ------------ ------------ ------------ ------------ ------------
Transfer (from)/to reserves (101,824) 3,115,792 3,013,968 48,124 (1,929,461) (1,881,337)
------------ ------------ ------------ ------------ ------------ ------------
Return per Ordinary
Share - basic and diluted 0.99p 7.48p 8.47p 1.37p (4.63)p (3.26)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 2004
as at 30 September 2004 as at 30 September 2003
# # # # # #
Fixed Assets
Investments 20,746,041 15,867,353
Current Assets
Debtors and prepayments 424,795 304,694
Current investments 7,926,941 6,750,709
Cash at bank 4,633,219 8,136,664
------------ ------------
12,984,955 15,192,067
Creditors: amounts falling
due within one year
Corporation tax 24,456 97,918
Other creditors 546,681 542,930
Accruals 128,131 126,346
------------ ------------
(699,268) (767,194)
Net current assets ------------ 12,285,687 ------------ 14,424,873
------------ ------------
Net assets 33,031,728 30,292,226
------------ ------------
Capital and reserves
Called up share capital 412,797 417,470
Capital redemption reserve 5,218 545
Special reserve 38,777,875 39,059,851
Capital reserve - realised (3,215,081) (3,267,224)
Capital reserve - unrealised (3,152,837) (6,223,996)
Revenue reserves 203,756 305,580
------------ ------------
Total equity shareholders' 33,031,728 30,292,226
funds
------------ ------------
Net asset value per
Ordinary Share - basic and 80.02p 72.56p
diluted
CASH FLOW STATEMENT
for the year ended 30 September 2004
Year ended Year ended
30 September 30 September
2004 2003
# # # #
Operating activities
Investment income received 912,272 1,634,004
Dividend income 115,857 81,892
Investment management
Fees paid (601,168) (717,189)
Other cash payments (415,146) (398,022)
------------ ------------
Net cash inflow from
operating activities 11,815 600,685
Taxation
UK Corporation tax paid (96,917) (232,355)
Financial investment
Acquisition of investments (4,589,395) (18,230,872)
Disposal of investments 3,151,097 30,825,561
-------------- --------------
(1,438,298) 12,594,689
Dividends
Payment of equity dividend (521,837) (731,009)
-------------- --------------
Cash (outflow)/inflow
before financing and
liquid resource
management (2,045,237) 12,232,010
Management of liquid
resources
(Increase) in monies held
pending investment (1,176,232) (4,099,551)
Financing
Purchase of own shares (281,976) (13,820)
-------------- --------------
(281,976) (13,820)
-------------- --------------
(Decrease)/increase in
cash for the year (3,503,445) 8,118,639
-------------- --------------
INVESTMENT PORTFOLIO SUMMARY
Cost Valuation Valuation
At at at % of
30 September 30 September 30 September portfolio
2004 2003 2004 by value
Foresight Venture Partners
Limited
Sarantel Limited 1,460,952 1,175,405 2,156,625 10.40%
Developer and manufacturer of
antennae for mobile phones
and other wireless devices
Oxonica Limited 1,677,389 900,033 1,677,389 8.08%
Specialist in the design, manipulation
and engineering of
properties of materials at the
nano-scale
ANT Limited
Provider of embedded browser/email 1,097,200 490,500 1,323,106 6.38%
software for consumer
electronics and Internet appliances
Broadreach Networks Limited 1,143,000 250,000 1,143,000 5.51%
Public access WLAN and fixed line
Internet Service Provider
- Broadreach Train Services Limited 107,000 n/a 107,000 0.52%
Camwood Limited 1,000,000 1,000,000 1,000,000 4.82%
Provider of software repackaging
Services
SmartFOCUS Group plc 500,000 500,000 893,333 4.31%
(formerly SmartFOCUS Holdings Limited)
Provider of analytic software to
support targeting and
execution of marketing campaigns
Aquasium Technology Limited 600,000 600,000 600,000 2.89%
Business engaged in the design,
manufacturing and marketing
of bespoke electron beam welding
and vacuum furnace equipment
Alaric Systems Limited 588,059 557,413 588,059 2.83%
Software developer and provider of
support services in the
credit/debit card authorisation and
payments market
Blue Curve Limited 500,000 396,666 396,666 1.91%
Provider of software for automating
the production and
distribution of research information
by banks and fund managers
DCG Datapoint Group Limited 250,000 n/a 250,000 1.21%
Design, supply and integration of data
storage solutions
Wire-e Limited 500,000 225,000 250,000 1.21%
Provider of mobile data
communication services
Monactive Limited 339,285 218,749 218,749 1.05%
Provider of software management
tools that monitor usage
of software versus licences held
Aigis Engineering Solutions
Limited 50,000 n/a 50,000 0.24%
Specialist blast containment materials
company
Other investments in the portfolio 250,000 Nil Nil 0.00%
Total 10,062,885 6,313,766 10,653,927 51.36%
Cost Valuation Valuation
At At At % of
30 September 30 September 30 September portfolio
2004 2003 2004 by value
Matrix Private Equity Partners
Limited
HWA Limited (trading as
Holloway White Allom Limited) 138,319 1,811,687 2,198,247 10.60%
Refurbishment, restoration and
construction of notable public
building and top-end residential
dwellings in and around London
Brookerpaks Limited 500,000 500,000 1,140,503 5.50%
Importer and distributor of garlic and
vacuum-packed vegetables to
supermarkets and the wholesale
trade
Image Source Group Limited 1,000,000 1,000,000 1,041,902 5.02%
Royalty free picture library
OA Acquisition Limited (Original
Additions) 1,000,000 n/a 1,000,000 4.82%
Manufacturer and distributor of
beauty products
Letraset Limited 1,000,000 1,098,050 967,367 4.66%
Manufacturer and worldwide
distributor of graphic art
products
Special Mail Services Limited 1,303,571 562,500 651,786 3.14%
Specialist, secure credit card
delivery business
The Hunter Rubber Company
Limited 500,000 n/a 500,000 2.41%
Manufacturer of Wellington boots,
safety footwear and diving suits
BBI Holdings plc 369,890 n/a 393,500 1.90%
Manufacturer of gold conjugate for
the medical diagnostics industry
BG Consulting Group Limited 1,000,000 1,000,000 125,000 0.60%
Technical training business
Inca Interiors Limited 350,000 300,000 100,000 0.48%
Design, supply and installation
of quality kitchens to house
developers
Other investments in the portfolio Nil 1,557,950 Nil 0.00%
Total 7,161,780 7,830,187 8,118,305 39.13%
Cost Valuation Valuation
At At at % of
30 September 30 September 30 September portfolio
2004 2003 2004 by value
Nova Capital Management
Limited
I-DOX (formerly
i-documentsystems group plc) 737,625 458,333 764,000 3.68%
Provider of document storage
systems
Tikit Group plc 517,624 521,738 623,912 3.01%
Provider of consultancy, services and
software solutions for law firms
DriveTec (UK) Limited 500,000 417,750 408,570 1.97%
Developer of transmissions
technologies for applications
in the automotive, construction and
industrial sectors
Watkins Books Limited 500,000 112,500 112,500 0.54%
Supplier of books in alternative
sciences, health, philosophy
and related sectors
Biomer Technology Limited 50,000 50,000 50,000 0.24%
Developer of biomaterials for
medical devices
Stortext Group Limited 380,435 18,079 14,827 0.07%
Integrated outsourced document
storage business
Other investments in the portfolio 3,988,529 50,000 Nil 0.00%
Total 6,674,213 1,628,400 1,973,809 9.51%
Total 23,898,878 15,722,353 20,746,041 100.00%
Notes
1. The revenue column of the statement of total return is the
profit and loss account of the Company.
2. In accordance with the policy statement published under
"Management and Administration" in the Company's Prospectus dated 13 October
2000, the Directors have charged 75% of the investment management expenses to
capital reserve.
3. The basic revenue return per Ordinary Share is based on
the net revenue from ordinary activities after taxation of #414,172 (2003:
#569,961) and is based on 41,647,506 (2003: 41,754,219) Ordinary Shares, being
the weighted average number of Ordinary Shares in issue during the year.
4. The basic capital return per Ordinary Share is based on
net realised capital return of #3,115,792 (2003: loss #1,929,461) and on
41,647,506 (2003: 41,754,219) Ordinary Shares, being the weighted average number
of Ordinary Shares in issue during the year.
5. The financial information set out in these statements does
not constitute the Company's statutory accounts for the year ended 30 September
2004 but is derived from those accounts. Statutory accounts will be delivered
to the Registrar of Companies after the Annual General Meeting.
6. The Company proposes to pay a final dividend of 1.25p
(2003: 1.25p) per share on 4 February 2005 to all shareholders on the Register
on 7 January 2005.
7. The Annual General Meeting will be held at 11.00 am on 26
January 2005 at 1 Jermyn Street, London SW1Y 4UH.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UUGCWPUPCURW
Touchstar (LSE:TST)
Historical Stock Chart
From Jun 2024 to Jul 2024
Touchstar (LSE:TST)
Historical Stock Chart
From Jul 2023 to Jul 2024
