Interim Results
June 29 2001 - 8:33AM
UK Regulatory
RNS Number:1314G
Pennine Downing Ethical VCT PLC
29 June 2001
PENNINE DOWNING ETHICAL VCT PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2001
CHAIRMAN'S STATEMENT
I present my interim statement for the six month period ended 31 March 2001
for Pennine Downing Ethical VCT plc.
Trading results
At 31 March 2001 the net asset value per share was 84.1p, a disappointing
decrease of 10.4p over the value at 30 September 2000. The period under
review has been a difficult one for equities, with all major UK indices
showing substantial falls. Although a number of investments in the portfolio
have shown increased valuations, these have been outweighed by a larger
number of investments showing falls over period.
Net revenue after taxation for the period was #43,000 representing 0.4p per
share.
Venture capital investments
The Company has continued to invest throughout the period. Ten new
investments were made at a total cost of #1.5 million and eight follow on
investments totalling #0.2 million. New investments include Conder
Environmental plc, which manufactures and markets pollution control devices,
Preston North End plc, holding company for the Division One football club,
ZeTek Power plc, a company producing zero-emission commercial power products,
and Giving plc, which facilitates the collection of tax reliefs on charitable
donations.
During the period one full and two partial disposals of AIM investments were
made. Holdings in Aero Inventory and Biofocus which originally cost #74,000
and #76,000 respectively were disposed of, generating profits against
original cost of #85,000 and #71,000 respectively. The remaining holding in
Totally plc, which originally cost #62,500, was disposed of giving rise to a
loss of #34,000. Things You Like Best Limited, an investment which originally
cost #100,000, but was fully provided for in the year-end accounts, is in
liquidation and has now been treated as realised.
Your Company has now achieved the VCT target of having at least 70% of its
investments comprising qualifying investments well within the three year
deadline which expires on 30 September 2002.
Listed investments
During the period the Company invested #2.0 million in four listed fixed
income investments.
Dividend payment
Now that the Company is nearly fully invested in venture capital investments,
the future revenue returns are likely to remain at a lower level as the focus
will now be principally on capital growth. As a result the Directors have
decided not to pay an interim dividend. It is planned that a final dividend
for the full year will be proposed with the year end results based on the
revenue earnings for the period.
Publication of share price
The Company's share price continues to be quoted in the Financial Times on a
daily basis in the "Investment Companies" sector.
New share issue
There has been significant demand from potential investors wishing to
subscribe for new shares in the Company. In order to improve liquidity and
ensure that the Company is able to take advantage of the continuing strong
flow of investment opportunities, the Directors are planning to issue up to
1,000,000 new ordinary shares under the authority given at the last AGM.
Outlook
Performance for the period has been disappointing, however it must be viewed
against the background of difficult market conditions. It is reassuring to
note that, since the 31 March 2001, investment valuations have stabilised.
The Company is near to being fully invested with a well spread portfolio
comprising 48 investments and is now focussing on developing the existing
portfolio to maximise returns to shareholders.
Andrew Davison
Chairman
29 June 2001
UNAUDITED STATEMENT OF TOTAL RETURN
(incorporating the revenue account)
for the six months ended 31 March 2001
Six Period
months ended
ended 30 Sept
31 March 2000
2001
Revenue Capital Total Revenue Capital Total
#000 #000 #000 #000 #000 #000
Income 139 - 139 250 - 250
Gains/(losses)
on investments:
- Realised - 103 103 - 435 435
- Unrealised - (1,217) (1,217) - (415) (415)
Investment (19) (58) (77) (31) (94) (125)
management fees
Other expenses (67) - (67) (113) - (113)
Return on 53 (1,172) (1,119) 106 (74) 32
ordinary
activities
before taxation
Tax on ordinary (10) 10 - (21) 19 (2)
activities
Return 43 (1,162) (1,119) 85 (55) 30
attributable to
equity
shareholders
Net dividends - - - (81) - (81)
Transfer to 43 (1,162) (1,119) 4 (55) (51)
reserves
Return per share 0.4p (10.8p) (10.4p) 1.1p (0.7p) 0.4p
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.
The comparative figures were in respect of the period from commencement of
trading on 5 October 1999 to 30 September 2000.
UNAUDITED SUMMARISED BALANCE SHEET
as at 31 March 2001
31 March 30 Sept
2001 2000
#000 #000
Fixed assets
Venture capital investments 6,137 5,917
Listed fixed income investments 2,018 -
8,155 5,917
Net current assets 908 4,265
Net assets 9,063 10,182
Capital and reserves
Called up share capital 539 539
Share premium account 9,694 9,694
Capital reserve - realised 334 360
Capital reserve - unrealised (1,551) (415)
Revenue reserve 47 4
Total shareholders' funds 9,063 10,182
Net asset value per share 84.1p 94.5p
UNAUDITED CASHFLOW STATEMENT
For the six months ended 31 March 2001
Six months ended Period ended
31 March 2001 30 Sept 2000
#'000 #'000
Cash (outflow)/ inflow from operating (151) 43
activities and returns on investments
(see note 1 below)
Equity dividends paid (81) -
Investing activities
Purchase of listed fixed income (1,998) -
securities
Purchase of venture capital investments (1,688) (6,498)
Proceeds on disposal of venture capital 334 601
investments
(3,352) (5,897)
Net cash outflow before financing (3,584) (5,854)
Financing
Issue of ordinary shares - 10,772
Expenses of share issue - (539)
Net cash inflow from financing - 10,233
(Decrease)/ increase in cash (see note 2 (3,584) 4,379
below)
Notes to the cashflow statement:
1 Cash (outflow)/ inflow from operating
activities and returns on investments
Net revenue before taxation 53 106
Management fees charged to capital (58) (94)
Increase in prepayments and accrued (81) (63)
income
Decrease in other creditors (65) 94
Net cash (outflow)/ inflow from (151) 43
operating activities
2 Analysis of changes in cash during the
period
Beginning of period 4,379 -
Net cash (outflow)/ inflow (3,584) 4,379
End of period 795 4,379
NOTES
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 and capital after tax of #43,000 and #1,162,000
respectively, divided by the weighted average number of shares in issue
during the period of 10,771,500.
3. The unaudited financial statements set out above 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 period ended 30 September 2000 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.
Copies of the unaudited interim results are being sent to shareholders
shortly. Further copies can be obtained from the Company's Registered Office.
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