TIDMORT
RNS Number : 3753Q
Ortus VCT PLC
18 October 2011
Ortus VCT
Half-yearly Report
For the six months ended 31 August 2011
Interim Management Report
Overview
When the Maven team took responsibility for your Company's
portfolio in December 2006 there was a clear and identifiable need
to improve the revenue position and achieve a broader asset base. A
strategy was implemented to address both the over-concentration in
a small number of relatively large assets and the lack of cash
available for investment in new and yielding private company
assets. In less than five years the Company has made 21 new,
income-generating, later-stage growth investments at a total cost
of GBP3.5m. In the same period, the portfolio has benefited from 3
private company exits and a number of selected AIM realisations
which have generated total proceeds of GBP4.3m and enabled the
Company to participate in all private company investments made by
Maven VCT clients from 2009 onwards. That said, 75% of the
portfolio by value remains invested in legacy assets, so there is
still work to do in achieving a balanced portfolio.
Despite the challenges facing smaller businesses operating in
the UK, the majority of your Company's new private company assets
are trading well, with cash-generative business models and only
modest levels of external debt, factors which contribute
significantly to mitigating the risk of corporate failure in an
uncertain economic environment.
Highlights for the six months:
-- NAV of 40.7p per share as at 31 August 2011, up 1.2% over six
months
-- revenue generation of 0.26p per share for the six months
-- three substantial new investments during the period
-- the exit of Dalglen 1150 (Walker Technical Resources)
achieved a 2.9x return and an IRR of
70%.
Dividends
Although there is an increase in recognised revenue for the
period under review, no dividend can be recommended until such time
as the deficit on the revenue account is further reduced and cash
becomes available for distribution.
Principal risks and uncertainties
The Board has reviewed the principal risks and uncertainties
facing the Company for the second half of its financial year. These
are unchanged from those it faced at the start of the year, which
are set out in the Annual Report, and are the risks involved in
investment in small and unquoted companies. In order to reduce the
exposure to investment risk, the Company has invested in a
broadly-based portfolio of established UK private company
investments.
The Company is also required to satisfy the HMRC 70% qualifying
and other tests on a continuous basis. The Board regularly reviews
the VCT qualifying status of the portfolio and is pleased to
confirm that all criteria continue to be met.
Manager's strategy
The investment strategy is to continue reducing the legacy
portfolio concentration in a small number of non-yielding and
low-yielding assets, which the Manager believes will provide both a
revenue base capable of supporting future dividends and the
liquidity required to make further investments. Although it should
also be noted that the large exposures in the inherited legacy
portfolio continue to create a risk profile which is at odds with
the overall diversified portfolio preferred by the Manager.
Maven deal teams operate from regional offices in Glasgow,
London, Aberdeen, Edinburgh, Manchester and Birmingham and continue
to see a high level of attractive investment opportunities across
the country, as growth businesses seek out alternative sources of
funding in the face of the continued scarcity of bank finance. The
Maven investment process is highly selective and employs strict
quality and yield generation criteria in reviewing every potential
investment. During 2010, Maven executives saw 382 private company
transactions across the UK and invested ultimately in seven
later-stage companies.
Investment activity
A total of GBP541,000 was invested during the six month period
ended 31 August 2011, including three new private company assets
and five follow-on investments where additional funding has helped
to support the growth of existing portfolio companies. One further
new private company investment was made after the period end.
Details of all investments completed during the period are noted
in the table below:
Investment
Investment Date Sector cost GBP'000
Unlisted
Oil equipment
ATR Holdings Jul 11 services 2
Claven Holdings Limited Apr 11 Financial services 3
Glacier Energy Services Oil equipment
Group Limited Mar 11 services 99
Lemac No. 1 Limited
(trading as John Automobiles
McGavigan Limited) Jul 11 and parts 43
Space Student Living
Limited Jun 11 Support services 99
TC Communications
Holdings Limited May 11 Support services 54
Torridon Capital
Limited Apr 11 Financial services 74
Tosca Penta Exodus Telecommunication
Limited Jun 11 services 150
Total Unlisted 524
--------------
AIM
Marwyn Management Investment
Partners Jul 11 company 17
Total AIM 17
--------------
Total 541
==============
Ortus VCT has co-invested in the three new transactions with
other clients of the Manager, and is expected to continue to do
so.
Portfolio developments
Most of the new private companies in the portfolio have traded
within an acceptable range of budget throughout the six month
period, and in a number of cases it has been appropriate to
increase valuations accordingly. In line with the objective of
increasing the size and breadth of the private company portfolio,
the Manager has continued to manage the remaining legacy assets
with the aim of making disposals for value when appropriate
opportunities arise. At the period end, the portfolio comprises 31
private companies and 7 AIM or PLUS quoted investments, at a total
cost of GBP7.9 million with a VCT qualifying level of 88%.
The three new private company investments completed during the
period under review were:
-- Glacier Energy Services, an oil & gas services group with
two specialist trading subsidiaries, Roberts Pipeline Machining
(Roberts) and Wellclad. Roberts designs and manufactures on-site
portable cutting machines for blue chip oil & gas clients.
Wellclad provides services to the European offshore and subsea
equipment market. Glacier will focus on growth within its core UK
market as well as promoting its technologies to the international
energy services market.
-- Space Student Living, a provider of contracted management
services across the student housing sector, offering a fully
integrated accommodation solution covering a range of activities
from the initial identification of sites, through overseeing the
planning and development phases, to ultimately managing the
accommodation under long term contract.
-- Tosca Penta Exodus, a new partnership established by Penta
Capital to implement a buy-and-build strategy in the business
telecommunications service sector based on the converging of
mobile, fixed-line, broadband, internet and IT technology
businesses. Penta is an established private equity firm with which
Maven previously co-invested in the successful 2010 management
buy-out of esure.
There were two private company exits during the period:
-- LG & DE was sold during March 2011. In the view of the
Manager this was the most vulnerable of the non-yielding legacy
investments and was realised for consideration of GBP958,000.
-- The investment in Dalglen 1150 (Walker Technical Resources)
was realised in July 2011, just two years after Maven led the
management buy-in. Total proceeds over the life of the investment
were GBP571,000, representing a 2.9x return on the initial
investment cost and an IRR of 70%. It is worth noting that the
positive impact on the NAV would have been much more pronounced had
the Company had the liquidity to participate at a greater
level.
As a further step in reshaping the portfolio, the Manager has
also sought to reduce exposure to the quoted markets, through the
continued structured realisation of the AIM portfolio.
The table below gives details of realisations during the
reporting period:
Cost of Value at Gain/(loss)
Date Complete/ shares 28 over 28
first partial disposed February Sales Realised February
invested exit of 2011 proceeds gain/(loss) 2011 value
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------ --------- ---------- --------- --------- --------- ------------ ------------
Unlisted
Atlantic
Foods
Group 2008 Partial 48 48 53 5 5
Attraction
World
Holdings 2010 Partial 30 30 30 - -
Dalglen
(1150)
(trading
as Walker
Technical
Resources) 2009 Complete 199 449 472 273 23
Lemac No. 1
(trading
as John
McGavigan) 2010 Partial 1 1 1 - -
LG & DE 2006 Complete 405 958 958 553 -
Vyre 2002 Partial 4 4 4 - -
687 1,490 1,518 831 28
--------- --------- --------- ------------ ------------
AIM
Deltex
Medical
Group 2001 Partial 25 55 77 52 22
Praesepe 2008 Complete 21 15 17 (4) 2
Vectura
Group 2001 Partial 250 229 273 23 44
296 299 367 71 68
--------- --------- --------- ------------ ------------
Total 983 1,789 1,885 902 96
========= ========= ========= ============ ============
One legacy AIM security was struck off the Register during the
period, resulting in the realisation of a loss of GBP894,000 (cost
GBP894,000), but there was no related impact on the NAV as a full
provision had been made in earlier periods.
Outlook
The breadth and yield characteristics of the portfolio continue
to improve as the Company invests in a wider range of later-stage
and income-producing assets. The Manager is experiencing steady
levels of deal flow across the country and its regional deal teams
continue to identify attractive investment opportunities across a
range of sectors. This strategy has significantly improved the
asset profile and revenue position of Ortus in recent years, and
will help with the medium term objective of creating an income base
for future Shareholder distributions.
Maven Capital Partners UK LLP
Manager
18 October 2011
SUMMARY OF INVESTMENT CHANGES
For the period ended 31 Aug
2011
Valuation Net investment Appreciation Valuation
28 February
2011 (disinvestment) (depreciation) 31 August 2011
--------------- ---------------- --------------- ---------------
GBP'000 % GBP'000 GBP'000 GBP'000 %
------------- -------- ----- ---------------- --------------- -------- -----
Unlisted
investments
Equities 9,565 65.9 (223) 164 9,506 64.6
Preference 958 6.6 (958) - - 0.0
Loan Stock 2,564 17.7 187 17 2,768 18.8
-------- ----- ---------------- --------------- -------- -----
13,087 90.1 (994) 181 12,274 83.4
AIM
investments
Equities 886 6.1 (350) 45 581 3.9
Total
investments 13,973 96.2 (1,344) 226 12,855 87.3
Other net
assets 548 3.8 1,307 - 1,855 12.6
Total net
assets 14,521 100 (37) 226 14,710 100
-------- ----- ---------------- --------------- -------- -----
Investment Portfolio
Summary
as at 31 August 2011
% of
equity
% of % of held
Valuation Cost total equity by other
Investment GBP'000 GBP'000 assets held clients
Unlisted
Vyre 3,661 324 24.9 29.8 -
Espresso Group 2,795 461 19.0 7.2 -
Higher Nature 1,650 500 11.2 11.2 -
Nessco Group Holdings 475 298 3.2 3.6 31.4
Networks by Wireless 400 400 2.7 12.8 -
Torridon Capital 316 161 2.1 1.2 38.8
Lab M Holdings 292 1,000 2.0 17.6 -
TC Communications
Holdings 272 303 1.8 10.4 62.9
Ashford Colour Press 223 214 1.5 8.7 -
Baby Innovations
Marketing
Internationais LDA 200 200 1.4 0.8 -
Flexlife Group 198 149 1.3 0.6 14.0
Westway Services 195 75 1.3 0.8 21.1
Lawrence Recycling &
Waste Management 187 187 1.3 2.4 59.6
Tosca Penta Exodus
Limited Partnership 150 150 1.0 0.3 4.3
Tosca Penta
Investments Limited
Partnership 146 100 1.0 - 0.3
Attraction World
Holdings 140 94 1.0 1.9 36.6
ATR Holdings 135 121 0.9 1.6 51.5
Venmar (trading as
XPD8 Solutions) 121 159 0.8 2.4 32.6
CHS Engineering
Services 114 114 0.8 1.3 22.1
Training for Travel
Group 103 228 0.7 2.3 27.7
Space Student Living 99 99 0.7 1.1 28.9
Intercede (Scotland) 1 99 99 0.7 1.1 27.4
Glacier Energy
Services Group 99 99 0.7 1.0 24.1
Lemac No. 1 (trading
as John McGavigan) 82 82 0.6 2.8 34.0
Atlantic Foods Group 71 71 0.5 - 8.8
Claven Holdings 48 19 0.3 3.3 46.7
Others 3 1,732 -
Total unlisted 12,274 7,439 83.4
---------- --------- --------
AIM
Vectura Group 308 257 2.2 0.1 0.3
Chime Communications 93 95 0.6 0.1 0.2
Deltex Medical Group 90 42 0.6 0.4 -
OMG 47 47 0.3 0.3 -
Angle 32 16 0.2 0.4 -
Marwyn Management
Partners 11 17 0.1 - 0.3
Total AIM 581 474 4.0
---------- --------- --------
Total 12,855 7,913 87.4
========== ========= ========
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
-- The Financial Statements for the six months ended 31 August
2011 have been prepared in accordance with applicable accounting
standards and with the Statement of Recommended Practice 'financial
Statements of Investment Trust Companies' (the SORP) issued in
January 2009
-- The Interim Management Report includes a fair review of the
information required by DTR 4.2.7R in relation to the indication of
important events during the first six months, and of the principal
risks and uncertainties facing the Company during the second six
months, of the year ending 28 February 2012
-- The Interim Management Report includes adequate disclosure of
the information required by DTR 4.2.8R in relation to related party
transactions and any changes therein.
By order of the Board
Maven Capital Partner UK LLP
Secretary
18 October 2011
Income Statement
For the six months ended 31 August 2011 (unaudited)
Six months ended
31 August 2010
(unaudited)
----------------------------
Revenue Capital Total
Notes GBP'000 GBP'000 GBP'000
---------------------------------------- ------ -------- -------- --------
Gains/(losses) on investments - 226 226
Investment income and deposit interest 236 - 236
Investment management fees 4 (36) (110) (146)
Incentive fees (19) (21) (40)
Finance costs - - -
Other expenses (87) - (87)
---------------------------------------- ------ -------- -------- --------
Profit/(loss) on ordinary activities
before taxation 94 95 189
Tax on ordinary activities - - -
---------------------------------------- ------ -------- -------- --------
Profit/(loss) on ordinary activities
after taxation 94 95 189
---------------------------------------- ------ -------- -------- --------
Earnings per share (pence) 0.26 0.26 0.52
---------------------------------------- ------ -------- -------- --------
Six months ended
31 August 2010
(unaudited)
----------------------------
Revenue Capital Total
Notes GBP'000 GBP'000 GBP'000
---------------------------------------- ------ -------- -------- --------
Gains/(losses) on investments - (67) (67)
Investment income and deposit interest 100 - 100
Investment management fees 4 (38) (115) (153)
Incentive fees (7) (5) (12)
Finance costs - - -
Other expenses (96) - (96)
---------------------------------------- ------ -------- -------- --------
Profit/(loss) on ordinary activities
before taxation (41) (187) (228)
Tax on ordinary activities - - -
---------------------------------------- ------ -------- -------- --------
Profit/(loss) on ordinary activities
after taxation (41) (187) (228)
---------------------------------------- ------ -------- -------- --------
Earnings per share (pence) (0.11) (0.51) (0.62)
---------------------------------------- ------ -------- -------- --------
Year ended
28 February 2011
(audited)
----------------------------
Revenue Capital Total
Notes GBP'000 GBP'000 GBP'000
---------------------------------------- ------ -------- -------- --------
Gains/(losses) on investments - (593) (593)
Investment income and deposit interest 276 - 276
Investment management fees 4 (76) (229) (305)
Incentive fees (29) (39) (68)
Finance costs - - -
Other expenses (220) - (220)
---------------------------------------- ------ -------- -------- --------
Profit/(loss) on ordinary activities
before taxation (49) (861) (910)
Tax on ordinary activities - - -
---------------------------------------- ------ -------- -------- --------
Profit/(loss) on ordinary activities
after taxation (49) (861) (910)
---------------------------------------- ------ -------- -------- --------
Earnings per share (pence) (0.10) (0.30) (0.40)
---------------------------------------- ------ -------- -------- --------
A Statement of Total Recognised Gains and Losses has not been
prepared, as all gains and losses are recognised in the Income
Statement.
All items in the above statement are derived from continuing
operations. The Company has only one class of business and derives
its income from investments made in shares, securities and bank
deposits.
The total column of this Statement is the Profit and Loss Account
of the Company.
Reconciliation of movements in Shareholders' Funds
Six months Six months
ended ended Year ended
Reconciliation of Movements in 31 August 31 August 28 February
Shareholders' Funds 2011 2010 2011
GBP'000 GBP'000 GBP'000
Opening Shareholders' funds 14,521 15,431 15,431
Profit on ordinary activities 189 (228) (910)
Closing Shareholders' funds 14,710 15,203 14,521
Balance Sheet
As at 31 August 2011
31 August 31 August 28 February
2011 2010 2011
---------------------------- ------ ------------ ------------ ------------
(unaudited) (unaudited) (audited)
---------------------------- ------ ------------ ------------ ------------
Notes GBP'000 GBP'000 GBP'000
---------------------------- ------ ------------ ------------ ------------
Fixed assets
Investments at fair value
through profit or loss 12,855 14,298 13,973
Current assets
Debtors 1,116 149 128
Cash and overnight deposits 803 872 628
---------------------------- ------ ------------ ------------ ------------
1,919 1,021 756
Creditors: amounts falling
due within one year (64) (116) (208)
---------------------------- ------ ------------ ------------ ------------
Net current assets 1,855 905 548
---------------------------- ------ ------------ ------------ ------------
Net assets 14,710 15,203 14,521
---------------------------- ------ ------------ ------------ ------------
Capital and reserves
Called up share capital 3,611 3,611 3,611
Special reserve 2 24,022 24,022 24,022
Share premium reserve 2 3,261 3,261 3,261
Capital redemption reserve 2 455 455 455
Capital reserve - realised 2 (20,569) (20,189) (20,446)
Capital reserve -
unrealised 2 4,940 5,139 4,722
Revenue reserve 2 (1,010) (1,096) (1,104)
---------------------------- ------------ ------------ ------------
Net assets attributable to Ordinary
Shareholders 14,710 15,203 14,521
------------------------------------ ------------ ------------ ------------
Net Asset Value per
Ordinary Share (pence) 40.7 42.1 40.2
---------------------------- ------ ------------ ------------ ------------
The Financial Statements of Ortus VCT PLC, registered number
3160586, were approved and authorised for issue by the Board of
Directors and were signed on its behalf by:
D Potter, Director
18 October 2011
The accompanying notes are an integral part of the financial
statements.
Cash flow Statement
For the six months ended 31 August 2011
Six months
Six months to to Year ended
28 February
31 August 2011 31 August 2010 2011
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- -------- --------- -------- -------- -------- --------
Net cash outflow
from operating
activities (227) (94) (169)
Financial investment
Purchase of
investments (541) (245) (873)
Sale of investments 943 362 821
--------------------- -------- --------- -------- -------- -------- --------
Net cash
inflow/(outflow)
from financial
investment 402 117 (52)
Net cash
inflow/(outflow)
before financing 175 23 (221)
Financing - - -
--------- -------- -------- -------- --------
Net cash outflow
from financing - - -
--------------------- -------- --------- -------- -------- -------- --------
Increase/(decrease)
in cash 175 23 (221)
--------------------- -------- --------- -------- -------- -------- --------
At 28 At 31
February Cash August
2011 flows 2011
GBP'000 GBP'000 GBP'000
Cash and overnight
deposits 628 175 803
Net funds 628 175 803
--------- -------- --------
Notes to the Financial Statements
1. Accounting policies
The financial information for the six months ended 31 August
2011 and the six months ended 31 August 2010 comprises non-statutory
accounts within the meaning of the companies Act 2006. The
financial information contained in this report has been prepared
on the basis of the accounting policies set out in the annual
Report and Financial Statements for the year ended 28 February
2011, which have been filed at Companies House and which
contained an Auditor's Report which was not qualified and
did not contain a statement under s. 498 (2) or s.498(3)
of the Companies Act 2006.
The results for the year ended 28 February 2011 are extracted
from the full accounts for that year, which received an unqualified
report from the Auditor and have been filed with the Registrar
of Companies.
Capital Capital Capital
Special Share redemption reserve reserve Revenue
reserve premium reserve realised unrealised reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Movement in
2. reserves
At 28 February
2011 24,022 3,261 455 (20,446) 4,722 (1,104)
Gain on
sales of
investments - - - 8 - -
Net increase
in value of
investments - - - - 218 -
Investment
management
fees - - - (110) - -
Incentive
fees - - - (21) - -
Net profit for
period - - - - - 94
As at 31 August
2011 24,022 3,261 455 (20,569) 4,940 (1,010)
======== ======== =========== ========= =========== ========
Six months
ended
31 August
3. Return per Ordinary Shares 2011
The returns per share have been based on
the following figures:
Weighted average number of ordinary
shares 36,110,992
Revenue Return GBP94,000
Capital Return GBP95,000
Six months ended Six months ended Year ended
Investment
Management 28 February
4 Fees 31 August 2011 31 August 2010 2011
(unaudited) (unaudited) (audited)
-------- ------------ -------- ------------ -------- ----------
Revenue Capital Revenue Capital Revenue Capital
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Fees for period 36 110 38 115 76 229
36 110 38 115 76 229
======== ============ ======== ============ ======== ==========
Copies of this announcement will be available to the public at
the office of Maven Capital Partners UK LLP, 149 St Vincent Street,
Glasgow and at the registered office of the Company, 9 - 13 St
Andrew Street, London.
The Interim Report and Financial Statements will be printed and
sent to Shareholders.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
18 October 2011
ENDS
Neither the content of the Company's website nor the contents of
any website accessible from hyperlinks on the company's website (or
any other website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UWVRRANARAAA
Ortus Vct (LSE:ORT)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Ortus Vct (LSE:ORT)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024