Interim Results
July 23 2003 - 9:47AM
UK Regulatory
RNS Number:8810N
Phoenix VCT PLC
23 July 2003
PHOENIX VCT PLC
UNAUDITED INTERIM RESULTS
FOR THE PERIOD ENDED 30 APRIL 2003
Financial highlights (figures as at 30 April 2003):
* Net assets #7.84 million
* Net asset value per share 94.8p
* Revenue return after tax #3,000 profit
* Capital return after tax #19,000 loss
* Revenue return per share 0.1p profit
* Total return per share (0.6)p
For further information, please contact:
Simon Rogerson 020 7255 7961
Justin Jordan 020 7255 7965
Octopus Asset Management
Chairman's Statement:
I am delighted to present my first report to shareholders since Phoenix VCT's
public share issue was launched in November 2002. Since launch, the fund raising
has gone well with Phoenix VCT accounting for a large percentage of all inflows
into the VCT asset class during the 2002/03 tax year. I would like to take this
opportunity to welcome all of our shareholders and to thank them for their
support.
The unaudited interim financial statements cover the period from the company's
incorporation on 29 October 2002 to 30 April 2003. The company was listed on
the London Stock Exchange on 8 January 2003. The financial statements include
the proceeds of shares allotted up to and including 30 April 2003, a total of
#7.86 million net of issue expenses.
Investments
During the period, Phoenix VCT's cash was held on deposit in the money markets.
As a result of the economic and political uncertainty over the period, we have
taken an especially cautious approach to making investments and had not
completed any transactions in the period to 30 April 2003.
However, our team has assessed a considerable number of investment opportunities
and, although we intend to retain a patient approach, we anticipate that we will
make several investments before the end of October 2003.
These investments will not be in early-stage companies or in companies whose
valuation is based upon optimistic business projections. Instead, we will be
targeting businesses that have a strong track record and which can demonstrate
to us that they should be able to deliver attractive returns in the future.
Additionally, we place a heavy emphasis on a company's management team and look
to back proven teams with a clear track record of success and experience.
Net Asset Value ("NAV")
Phoenix VCT had an initial NAV of 95.0p per share. As at 30 April 2003, I am
pleased to be able to report that the unaudited NAV was almost unchanged at
94.8p.
Revenue and dividend
The statement of total return for the period to 30 April 2003 includes interest
on the proceeds of share allotments, which took place on various dates from
December 2002 onwards. After deducting expenses, the revenue profit for the
period before tax was #3,000 - equivalent to a revenue profit per share of 0.1p
(based on the weighted average of 2,766,376 shares in issue during the period).
In line with industry practice, 75% of the management fee is charged to capital
giving rise to a negative capital return of (0.7)p per share for the period.
As stated in the prospectus, it is intended that the company's first dividend
will be paid in early 2004 as a final dividend in respect of the year ending 31
October 2003.
Outlook
Growing evidence of a UK economic recovery coupled with the current low
inflation and interest rate environment has resulted in an improving investment
background. This is particularly true for smaller companies which tend to be
more domestically focused than larger companies.
Although valuations are currently at reasonable levels, the short-term outlook
for the markets is likely to remain uncertain. As a result, Phoenix VCT will
seek to add value primarily through good stock selection.
Since the period end, Phoenix has made one investment in an AIM listed company
called Cardpoint plc, which operates an estate of approximately 2,000 cash
machines (ATM's) in the UK. Phoenix invested #53,099 in a placing and open offer
by Cardpoint in June to fund the purchase of a rival network of ATM machines.
This investment represents 0.6% of Phoenix's assets. The market price of
Cardpoint has risen some 15% to date since our investment. (Further information
on Cardpoint can be found at www.cardpointplc.com). The remainder of Phoenix's
assets is invested in cash deposits.
We are currently conducting extensive due diligence on a number of existing and
potential AIM companies and anticipate that Phoenix will make several
investments in the forthcoming months. The Board remains confident of building a
diversified portfolio of AIM companies that will provide solid prospects for
future returns to shareholders.
Fund Raising
The Phoenix VCT is still open to new investors and has so far raised just over
#9 million.
S Hazell-Smith
Chairman, Phoenix VCT Plc
The unaudited interim financial statements for the period from 29 October 2002
to 30 April 2003 are set out below.
STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
for the period ended 30 April 2003
Revenue Capital Total
#000 #000 #000
Gains on investments - - -
Income 36 - 36
Investment management fee (6) (19) (25)
Other expenses (27) - (27)
------ ------ ------
Return on ordinary activities
before tax 3 (19) (16)
Tax on ordinary activities - - -
------ ------ ------
Return on ordinary activities
after tax 3 (19) (16)
Dividends - - -
------ ------ ------
Transfer to reserves 3 (19) (16)
------ ------ ------
Return per share 0.1p (0.7)p (0.6)p
BALANCE SHEET
30 April 2003
#000
Fixed asset investments -
Net current assets 7,840
-------
Net assets 7,840
-------
Called-up equity share capital 827
Share premium 7,029
Capital reserve - realised (19)
- unrealised -
Revenue reserve 3
-------
Total equity shareholders' funds 7,840
-------
Net asset value per share 94.8p
CASH FLOW STATEMENT
for the period ended 30 April 2003
#000 #000
Reconciliation of net revenue before taxation to net cash flow from
operating activities
Net revenue before taxation 3
Increase in debtors -
Increase in creditors 14
Management fees charged to capital reserve (19)
------
Net cash inflow from operating activities (2)
------
Cash flow statement
Net cash inflow from operating activities (2)
Taxation:
Corporation tax paid -
Financial investment:
Purchase of investments -
Sale of investments -
------
Net cash outflow from financial investment -
Equity dividends paid -
------
Net cash inflow before financing (2)
Financing:
Issue of ordinary shares 8,156
Share issue expenses (300)
------
Net cash inflow from financing 7,856
------
Increase in cash at bank 7,854
------
Analysis of cash balance
At start of period -
Net cash inflow for the period 7,854
------
At end of period 7,854
------
NOTES
1. Principal accounting policies
The following accounting policies have been applied consistently throughout the
period. Full details of principal accounting policies will be disclosed in the
Annual Report.
a) Basis of accounting
The financial statements have been prepared under the historical cost convention
in accordance with applicable Accounting Standards in the United Kingdom and
with the Statement of Recommended Practice regarding the Financial Statements of
Investment Trust Companies.
b) Investments
Investments quoted on the AIM market are stated at mid-market prices.
2. All of the Company's activities are continuing.
3. In line with the expected long-term split of returns from the
investment portfolio of the Company, the Directors have charged 75% of the
investment management fee to the capital reserve.
4. The unaudited financial statements for the period ended 30 April 2003
do not constitute statutory accounts within the meaning of Section 240 of the
Companies Act 1985. The first financial statements of the Company will be those
for the financial period ending 31 October 2003 which will be delivered to the
Registrar of Companies in due course.
The Company was incorporated on 29 October 2002 and commenced operations
following the allotment of shares on the achievement of its minimum subscription
on 23 December 2002.
5. The calculation of the revenue and capital return per share is based on
the return on ordinary activities after tax for the period and on 2,766,376
ordinary shares, being the weighted average number of shares in issue during the
period from 29 October 2002 to 30 April 2003. 100,000 redeemable non-voting
shares of #0.50 which had been allotted on 7 November 2002 were redeemed on 8
January 2003.
6. Copies of this statement are being sent to all shareholders. Copies
are available to the public at the registered office of the company at 14 Dover
Street, London, W1S 4LW.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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