Interim Results
26 6월 2003 - 4:02PM
UK Regulatory
RNS Number:7950M
Pennine Downing Ethical VCT PLC
26 June 2003
PENNINE DOWNING ETHICAL VCT PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2003
CHAIRMAN'S STATEMENT
The economic conditions I described in my statement with the last Annual Report
have continued throughout the six months ended 31 March 2003, perpetuating the
challenging environment in which our investee companies have had to operate.
Unsurprisingly this has had a further impact on the valuation of the Company's
portfolio.
Net Asset Value
At 31 March 2003, the Company's net asset value ("NAV") stood at 45.9p per
share, a fall of 5.4p or 11.9% since the previous year end of 30 September 2002.
By way of comparison the FTSE AIM Index fell by 10.3% over the same period.
Venture capital investments
During the period the Company made follow-on investments in six unquoted
companies totalling #404,000 and one small new investment, in Symphony Plastic
Technologies plc, a manufacturer of degradeable polythene bags and other
products.
There were two significant failures within the portfolio in the period.
Intersolar Group, a manufacturer of thin film solar cells, failed to raise
sufficient funds to continue trading and gave rise to a realised loss of
#100,000. UK Configuration was also unable to make satisfactory progress and
was forced to dispose of its trading assets for a nominal sum, giving rise to a
realised loss of #98,000.
On a positive note, the share price of Aero Inventory continued to strengthen
over the period and the opportunity was taken to make a small part disposal,
generating a realised gain of #23,000.
The majority of valuations have, however, fallen over the period with the total
effect on the AIM portfolio being a fall of #278,000 (equivalent to 2.5p per
share) and that of the unquoted portfolio being #216,000 (equivalent to 2.0p per
share).
Listed fixed income securities
This portfolio continues to be managed by Rathbone Investment Management Limited
and was valued at #1,805,000 at the period end.
Ethical Committee
The Ethical Committee has continued to monitor investee companies and new
investments for compliance with the Company's Ethical Policy. No breaches of
the policy were identified during the period.
Results and dividend
The revenue profit after taxation for the period amounted to #10,000,
representing 0.1p per share. No interim dividend will be paid.
With many of the investee companies at an early stage in their life dividend
income from them is at a very low level. It is therefore not expected the
Company will generate any significant revenue surpluses in future to allow the
payment of revenue dividends. Should the Company make profitable disposals the
Board will consider distributing these profits to shareholders by way of tax
free capital distributions.
Share repurchase
The Directors are conscious that the Company's share price is affected by the
illiquidity of its shares in the market resulting from the requirement that most
shareholders must retain their shares for at least five years in order to retain
their tax benefits.
During the period the Company purchased 11,667 of its own shares at a price of
42p per share. The Directors continue to monitor the market in the Company's
shares and will consider making share purchases when appropriate.
Publication of share price
The Company's share price is quoted in the Financial Times on a daily basis and
can be found within the "Investment Companies" sector.
Outlook
Conditions remain very difficult for small and medium sized companies and there
is little prospect of a rapid improvement in this situation. Many of the
companies within our portfolio have to develop significantly if they are to
ultimately prove to be successful.
Since the period end there have been some indications of an upturn in investor
confidence. The end of the war in Iraq has been welcomed by steady increases in
stock market indices, including the FTSE AIM index. It is, however, still far
too early to tell if this will lead to a sustained recovery that will be
reflected in the performance of your Company.
Andrew Davison
Chairman
UNAUDITED SUMMARISED BALANCE SHEET
as at 31 March 2003
31 March 31 March 30 Sept
2003 2002 2002
#'000 #'000 #'000
Fixed assets
Venture capital investments 2,611 4,997 3,290
Listed fixed income investments 1,805 2,017 2,054
4,416 7,014 5,344
Net current assets 651 708 412
Net assets 5,067 7,722 5,756
Capital and reserves
Called up share capital 552 553 552
Capital redemption reserve 1 - 1
Share premium account - 9,933 -
Special reserve 9,928 - 9,933
Capital reserve - realised (1,962) (329) (552)
Capital reserve - unrealised (3,461) (2,440) (4,177)
Revenue reserve 9 5 (1)
Total equity shareholders' funds 5,067 7,722 5,756
Net asset value per share 45.9p 69.8p 52.1p
UNAUDITED STATEMENT OF TOTAL RETURNS
(incorporating the revenue account)
for the six months ended 31 March 2003
Six months ended
31 March 2003
Capital Capital Total
#'000 #'000 #'000
Income 79 - 79
Losses on investments:
- Realised - (179) (179)
- Unrealised - (494) (494)
79 (673) (594)
Investment management fees (7) (19) (26)
Other expenses (62) (2) (64)
Return on ordinary activities before taxation 10 (694) (684)
Tax on ordinary activities - - -
Return attributable to equity shareholders 10 (694) (684)
Net dividends - - -
Transfer to/(from) reserves 10 (694) (684)
Return per share 0.1p (6.3p) (6.2p)
Six months ended Year ended
31 March 2002 30 September
2002
Revenue Capital Total Total
#'000 #'000 #'000 #'000
Income 102 - 102 181
Losses on investments:
- Realised - (5) (5) (6)
- Unrealised - (91) (91) (2,028)
102 (96) 6 (1,853)
Investment management fees (18) (53) (71) (100)
Other expenses (90) - (90) (159)
Return on ordinary (6) (149) (155) (2,112)
activities before taxation
Tax on ordinary activities - - - -
Return attributable to (6) (149) (155) (2,112)
equity shareholders
Net dividends - - - -
Transfer to/(from) reserves (6) (149) (155) (2,112)
Return per share (0.1p) (1.3p) (1.4p) (19.1p)
The revenue column of this statement is the profit and loss account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations.
The Company has only one class of business and derives its income from
investments made in shares, securities and bank deposits.
UNAUDITED CASHFLOW STATEMENT
for the six months ended 31 March 2003
Six Six
months months Year
ended ended ended
31 Mar 31 Mar 30 Sept
2003 2002 2002
#'000 #'000 #'000
Cash inflow/(outflow) from operating activities and returns
on investments (Note 1) 7 (50) (101)
Taxation - - -
Capital expenditure
Purchase of listed fixed income securities (1,009) - -
Purchase of venture capital investments (434) (111) (400)
Proceeds on disposal of listed fixed income securities 1,249 444 444
Proceeds on disposal of venture capital investments 449 1 23
Net cash inflow from capital expenditure 255 334 67
Equity dividends paid - (55) (55)
Net cash inflow/(outflow) before financing 262 229 (89)
Financing
Costs of shares repurchased (5) - (9)
Net cash outflow from financing (5) - (9)
Increase/(decrease) in cash (Note 2) 257 229 (98)
Notes to the cashflow statement:
1 Cash inflow/(outflow) from operating activities and
returns on investments
Net revenue before taxation 10 (6) (3)
Expenses charged to capital (21) (53) (75)
Decrease in other debtors 24 55 23
Decrease in other creditors (6) (46) (46)
Net cash inflow/(outflow) from operating activities 7 (50) (101)
2 Analysis of net funds
Beginning of period 285 383 383
Net cash inflow/(outflow) 257 229 (98)
End of period 542 612 285
SUMMARY OF INVESTMENT PORTFOLIO
as at 31 March 2003
Cost Valuation % of
portfolio
#'000 #'000 by value
Top ten venture capital investments
Aero Inventory plc * 197 593 13.4%
Global Investor Relations Limited 233 233 5.3%
Oasis Healthcare plc * 300 201 4.6%
Qube Strategic Marketing Limited 99 177 4.0%
Conder Environmental plc * 200 120 2.7%
Preston North End plc * 250 120 2.7%
Advance Media Information Limited 150 112 2.5%
Lamda Polytech Limited 204 108 2.5%
Giardino Group plc * 248 99 2.2%
Milkround Online Limited 85 96 2.2%
1,966 1,859 42.1%
Other venture capital investments 4,132 752 17.0%
Listed fixed income securities 1,779 1,805 40.9%
Total investments 7,877 4,416 100.0%
All venture capital investments are unquoted unless otherwise stated.
* Quoted on the Alternative Investment Market ("AIM")
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
1. The above financial information has been prepared on the basis of the
accounting policies set out in the Annual Report.
2. The calculation of the revenue and capital return per share for the period
is based upon the net revenue profit and capital loss after tax of #10,000 and
#694,000 respectively, divided by the weighted average number of shares in issue
during the period of 11,038,632.
3. The comparative figures were in respect of the six months ended 31 March
2002 and the year ended 30 September 2002 respectively.
4. The unaudited financial statements set out herein do not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985
and have not been delivered to the Registrar of Companies. The figures for the
year ended 30 September 2002 have been extracted from the financial statements
for that year, which have been delivered to the Registrar of Companies; the
auditors' report on those financial statements was unqualified.
5. Copies of the unaudited interim results will be sent to shareholders
shortly. Further copies can be obtained from the Company's Registered Office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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