TIDMILV2
RNS Number : 5771E
Ingenious Live VCT 2 plc
08 April 2011
For immediate release 8 April 2011
INGENIOUS LIVE VCT 2 plc ("the Company")
STATEMENT OF ANNUAL RESULTS
For the year ended 31 December 2010
CHAIRMAN'S STATEMENT
I am delighted to present the Company's fourth Annual Report and
Accounts covering the year to 31 December 2010 (the Reporting
Period).
Overview of Activities
The Company has now completed its investment strategy and is
fully invested under the VCT regulations and it will now continue
to focus upon maximising the returns from these investments. The
Company is pleased to announce that 2010 followed on from the
successes of the previous year, indicating that the strategy of
identifying investments which provide both annual profits and
increased capital value continues to deliver commercial
success.
I am pleased to report that the Company enjoyed another
successful summer season with its three main festivals all
delivering strong profits.
Creamfields sold out for the second year in a row with an
increased attendance from 30,000 to 40,000 per day. The 80s Rewind
Festival had an exceptionally strong second year and also saw
record attendances in 2010. Underage and Field Day had a solid
third year.
The 80s Rewind Tour performed below expectations, although the
Company remains confident in terms of the overall strategy for the
80s Rewind brand.
Results
The Company made a profit on ordinary activities of GBP89,000 in
the year to 31 December 2010 (2009: profit of GBP104,000).
The net asset value per share is 91.0 pence (31 December 2009:
97.1 pence) although this is after the deduction of the interim
dividend paid during the year of 7.0 pence per share.
The Directors do not recommend the payment of a final dividend
in respect of the Reporting Period.
Outlook
Now four years old, we believe that the Company has a strong
portfolio of investments and has the potential to deliver
significant upside from its equity interests. It continues to
maintain downside protection through its minimum revenue
arrangements.
Following the end of the financial year the Company declared an
interim dividend of 7.0 pence per share for the year to 31 December
2011. The dividend was paid on 11 February 2011.
I would like to take this opportunity to thank all Shareholders
for their continued support of the Company and I look forward to
seeing those of you that are able to attend the AGM, scheduled for
18 May 2011.
Andrew Morris
Chairman
7 April 2011
MANAGER'S REVIEW
Investment Objective
The Company's main objective is to invest in a portfolio of live
event companies engaged in the production of new and established
events providing Shareholders with an attractive return. This
strategy will aim to maximise the opportunities for making tax-free
dividends to Shareholders from both the actual income received and
capital profits on the sale of the Investee Companies or their
assets.
The Company has been fully invested since December 2009 and the
Manager continues to focus solely on the portfolio of investments
in order to deliver strong annual profits and, crucially, target
exceptional back-end values as the Company exits its investments
after the qualifying five-year period.
Festivals
Creamfields
Investment amount: GBP850,000 (GBP1,700,000 across the Ingenious
Live VCTs).
The success of Creamfields in 2009 was highlighted when the
event won 'Best Festival' at the 2010 Music Week Awards, beating
festivals including Glastonbury, Reading and Leeds. The 2010 event
took place on the weekend of 28 and 29 August and delivered strong
profitability for the Company as a result of the two-day dance
music festival expanding in size from a 30,000 to a 40,000 per day
capacity. Creamfields is now widely regarded as the leading dance
festival in the UK.
We are confident that 2011 will bring further expansion in
capacity as well as increased profitability over the bank holiday
weekend in August 2011. Based in Cheshire, Creamfields has in
previous years boasted an electrifying line up including the world
famous David Guetta, Swedish House Mafia, DeadMau5, Calvin Harris,
Tiesto, Eric Prydz and Laidback Luke.
Ticket sales for this year's event are already well ahead of
last year and we are confident that the festival will sell out in
advance for the third year running. This should generate further
returns to the Company and additional information will be provided
in the full year accounts to 31 December 2011.
80s Rewind Festival & 80s Rewind Tour
Investment amount (80s Rewind Festival): GBP346,348 (GBP692,696
across the Ingenious Live VCTs, and GBP545,196 across the Ingenious
Entertainment VCTs).
Investment amount (80s Rewind Tour): GBP328,350 (GBP656,700
across the Ingenious Live VCTs).
In its second year, the 80s Rewind Festival held in August 2010
experienced an impressive increase in attendance figures across
both days from 23,000 in 2009 to over 35,000 in 2010. Highlights
included performances from Boy George, Tony Hadley, Go West and
Rick Astley. As expected, the event proved profitable and as a
result of its success and in order to raise more brand awareness
across the Christmas period, the Ingenious Live VCTs also agreed to
invest in the 80s Rewind Tour, which visited major cities across
the UK. Even though this event performed below expectations, there
is now international interest in licensing the brand for events
outside the UK, in locations such as Holland, South Africa and
Australia.
As a result of this strong performance, the Company remains
confident that 80s Rewind will continue to perform strongly in the
future. Tickets for the 2011 event are already on sale and have
surpassed the target number of sales expected at this stage. The
festival will be held between 19 and 21 August and will host an
impressive line up including The Human League, Holly Johnson, Billy
Ocean and Ali Campbell's UB40, along with many more.
Underage and Field Day Festivals
Investment amount: GBP500,000 (GBP1,000,000 across the Ingenious
Live VCTs).
This year the event continued to move from strength to strength
with 2010 boasting an impressive line-up featuring artists such as
M.I.A., Tinie Tempah, Tinchy Stryder, Ellie Goulding and Crystal
Castles. Following four successful years the event has firmly
established its market niche as the summer music event for 13 to 17
year olds.
Meanwhile, Field Day, which is well established as the leading
alternative music festival in London, featured exciting and dynamic
performances from Phoenix, Moderat and The Fall. The 2010 events
delivered a good profit for the Company. Field Day and Underage
attracted over 28,000 people across the weekend.
We believe that the Underage and Field Day brands still have
strong potential to be 'rolled out', both in the UK and overseas.
This would assist in enhancing the capital value of the events,
which is key to our investment strategy.
Exhibitions
Brand Events - Taste of Christmas and the Taste Festivals
Investment amount (Taste of Christmas): GBP902,489 (GBP1,804,978
across the Ingenious Live VCTs).
Taste of Christmas, the festive food and drink event returned
for the third year to the ExCel Centre in London during December
2010 and attracted over 20,000 people. Despite the severe weather
conditions, the exhibition was extremely well attended and as a
result, the event became profitable for the first time in 2010. A
high proportion of exhibitors and sponsors have already signed up
for the next exhibition to be held in December 2011, which will
once again inspire and educate consumers while offering them the
very best in food shopping, fine wines and access to celebrity
chefs.
Investment amount (Taste Festivals): GBP1,000,000 (GBP2,000,000
across the Ingenious Live VCTs).
TheTaste Festivals are established as successful outdoor food
and wine events featuring a number of famous chefs including Gary
Rhodes, Michel Roux Jr, Giorgio Locatelli and Theo Randall who
serve up their signature dishes for the public to taste. The London
event took place in Regent's Park between 17 and 20 June 2010,
whilst the Edinburgh event was held in Inverleith Park between 28
and 29 May 2010.
Taste of London is the jewel in the Taste Festivals' crown,
attracting 50,000 visitors to Regent's Park every year. Taste
Festivals have set a new benchmark for food and drink events
worldwide with 13 Taste Festivals now being hosted around the world
including Dublin, Cape Town, Sydney and Dubai. The investment
generated a small profit to the Company.
Taste of Londonreturns to Regent's Park between 16 and 19 June
2011.
O(2) Golf Live
Investment amount: GBP275,000 (GBP1,100,000 across the Ingenious
Live VCTs and the Ingenious Entertainment VCTs).
O(2) Golf Live is a new three--day interactive golf event which
was staged at Stoke Park in Buckinghamshire between 14 and 16 May
2010. O(2) Golf Live returns in 2011 and will be held at the
prestigious London Golf Club in Kent from 20 to 22 May. In
conjunction with our co-promoters Brand Events and IMG, the event
will again be hosted by last year's Ryder Cup captain, Colin
Montgomerie. The 2010 event was described by those who attended as
the most exciting and dynamic event to be added to the golfing
calendar.
IMG invested into the event as an equity partner giving Brand
Events access to worldwide sporting talent. IMG Worldwide is a
global sports, fashion and media business and is excited to be
working with Brand Events, who together aim to roll the event out
to further prestigious golf courses around the world. O(2) , Jaguar
and the European Tour were amongst the partners for the initial UK
launch and have all agreed to continue to sponsor and support the
event in 2011.
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