Final Results
June 24 2003 - 12:28PM
UK Regulatory
RNS Number:7345M
Close Brothers Protected VCT PLC
24 June 2003
24 June 2003
CLOSE BROTHERS PROTECTED VCT PLC
("the Company")
Preliminary results for the year ended 31 March 2003
CHAIRMAN'S STATEMENT
Introduction
At the meeting held on 14 August 2002, Shareholders approved the continuation of
the Company as a Venture Capital Trust for a further five years and a change in
investment strategy to enable the Company gradually to replace the now low
yielding qualifying loans with asset-based investments. At the same time,
approval was given for a tender offer for up to 10 per cent. of the Company's
shares which resulted in the purchase and cancellation of 8.8 per cent. of the
Company's share capital at a price of 86 pence per share.
Investment Progress
Following the change in investment strategy referred to above, the Company has
invested #2.25 million in three asset-based investments to date and has
committed to invest up to #3 million in a new build Express by Holiday Inn at
Stansted airport, co-investing alongside Close Brothers Venture Capital Trust
PLC and Healthcare & Leisure Property Fund PLC.
The three investments made comprise: #1 million in Youngs VCT Limited, an
established residential property development company undertaking developments in
the South of England, in which Close Brothers Venture Capital Trust was already
invested; #250,000 in City Screen (Liverpool) Limited, in conjunction with
investment by all VCTs managed by Close Venture Management, to develop a three
screen 'art house' cinema in Liverpool; and #1 million in Maplecroft VCT
Limited, a residential development company which is currently developing four
houses in Walton-on-Thames. The three investments made to date give a running
yield from the loan stock element of the investment of 9.4 per cent. of total
funds invested. In addition, the Company has received an initial dividend of
#9,000 from Youngs VCT Limited. A variety of further asset-based investments are
under review, with particular concentration on the budget hotel and care home
sectors.
The AIM portfolio declined by 44 per cent. over the year under review compared
to a decline of 36 per cent. in the AIM Index. However, at 31 March 2003 the AIM
Index was some 51 per cent. lower than the level at the time of the Company's
commencement of trading in April 1997, whilst after taking account of
realisations the Company's AIM portfolio had fallen by approximately 17 per
cent. During the course of the year the Company made investments totalling
#660,000 in two new companies and a follow on investment of #50,000 in one
existing holding, while disposals resulted in net realised losses of #553,000.
Since the year end, the Company has realised a profit of #110,000 on part of its
holding in Inter Link Foods and has invested a further #75,000 in a follow on
investment in Deltex Medical. The AIM market meanwhile has begun to look a
little more buoyant and the Company was able to report an unaudited increased
net asset value of 81.5 pence per share as at 31 May 2003 (after the final
dividend).
Results and Dividend
As at 31 March 2003, the net asset value of the Company was #19.15 million, or
78.1 pence per share, compared to #25.15 million or 90.1 pence per share at 31
March 2002. Under the tender offer 2.4 million shares were bought in for
cancellation, resulting in a reduction in net assets of #2.1 million. Net income
before taxation was #301,000 (2002: #435,000) enabling the board to declare a
net final revenue dividend of 0.50 pence per share, which when added to the
interim dividend of 0.50 pence, amounts to a total dividend for the year of 1.00
pence per share. This compares to total dividends to 31 March 2002 of 2.25
pence, of which 0.75 pence was paid out of capital profits. The final dividend
will be paid on 6 August 2003 to shareholders registered on 4 July 2003.
Outlook
Following the change in investment policy, the Company's portfolio of higher
yielding asset-based investments is now being built up. In the current year, the
benefits of this should begin to show in revenue returns for shareholders,
though the full benefit will not be apparent until all the loans currently
guaranteed by The Royal Bank of Scotland have been returned and reinvested. This
may take up to three years, as the Company needs to ensure that its level of
qualifying investments remains comfortably above the required 70 per cent.
level.
In the meantime, we remain cautiously optimistic on the prospects for the AIM
portfolio, which we consider to provide the potential for attractive growth from
current depressed levels.
D M Bralsford
Chairman 24 June 2003
Close Brothers Protected VCT PLC
Statement of Total Return
(incorporating the revenue account)
for the year ended 31 March 2003
31 March 2003 31 March 2002
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
Losses on
investments - (3,186) (3,186) - (2,022) (2,022)
Investment
income 536 - 536 692 - 692
Investment
management
fees (91) (126) (217) (88) (173) (261)
Other expenses (144) (71) (215) (94) (46) (140)
------- ------- ------- ------- ------- -------
Return on
ordinary
activities
before tax 301 (3,383) (3,082) 510 (2,241) (1,731)
Tax on
ordinary
activities (24) 16 (8) (75) 32 (43)
------- ------- ------- ------- ------- -------
Return
attributable
to
shareholders 277 (3,367) (3,090) 435 (2,209) (1,774)
Dividends (245) - (245) (415) (207) (622)
------- ------- ------- ------- ------- -------
Transfer to/
(from)
reserves 32 (3,367) (3,335) 20 (2,416) (2,396)
======= ======= ======= ======= ======= =======
Return per
share (pence) 1.1p (13.0)p (11.9)p 1.6p (8.0)p (6.4)p
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the year.
Close Brothers Protected VCT PLC
Balance Sheet
at 31 March 2003
31 March 31 March
2003 2002
#'000 #'000
Fixed asset investments
Qualifying investments 17,084 17,774
Non-qualifying investments 3 4,007
------- -------
Total fixed asset investments 17,087 21,781
Current assets
Debtors 97 267
Cash at bank and in hand 2,211 3,624
------- -------
2,308 3,891
Creditors: amounts falling due
within one year (244) (527)
Net current assets 2,064 3,364
------- -------
Total assets less current
liabilities 19,151 25,145
======= =======
Capital and reserves
Called up share capital 12,260 13,832
Special reserve 9,706 12,365
Capital redemption reserve 1,678 106
Realised capital reserve (722) 12
Unrealised capital reserve (3,839) (1,206)
Revenue reserve 68 36
------- -------
Equity shareholders' funds 19,151 25,145
======= =======
Net asset value per ordinary share (pence) 78.1p 90.9p
Close Brothers Protected VCT PLC
Cash Flow Statement
for the year ended 31 March 2003
2003 2002
#'000 #'000
Operating activities
Investment income received 524 481
Deposit interest received 117 75
Other income received - 1
Investment management fees paid (226) (278)
Other cash payments (226) (141)
------- -------
Net cash inflow from operating
activities 189 138
Taxation
UK income tax repaid - 232
Capital expenditure and
financial investment
Purchase of investments (3,935) (1,910)
Disposals of investments 5,529 4,206
------- -------
Net cash inflow from investing
activities 1,594 2,296
Equity dividends paid
Revenue dividends paid on
ordinary shares (414) (486)
Capital dividends paid on
ordinary shares (123) (278)
------- -------
Net cash inflow before financing 1,246 1,902
Financing
Purchase of own shares (2,659) (143)
------- -------
Net cash outflow from financing (2.659) (143)
------- -------
(Decrease)/increase in cash (1,413) 1,759
======= =======
For further information, please contact:
Patrick Reeve Justin Griffiths/John West
Close Venture Management Tavistock Communications
Tel: 020 7426 4000 Tel: 020 7600 2288
Notes to Editors:
1) Close Venture Management is a division of Close Brothers
Investment Limited, which is a subsidiary of Close Brothers Group plc and is
regulated by the FSA.
2) The financial information set out in this announcement does
not constitute the company's statutory accounts for the years ended 31 March
2003 or 2002, but is derived from those accounts. The financial information
for the year ended 31 March 2002 is derived from the statutory accounts for
that year which have been delivered to the Registrar of Companies. The
auditors reported on those accounts; their report was unqualified and did
not contain statements under s237(2) or (3) Companies Act 1985. The
statutory accounts for the year ended 31 March 2003 will be finalised on
the basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of
Companies shortly.
3) Audited Financial Statements for the year will be sent to shareholders
shortly.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEMFWLSDSEEM
