Interim Results
24 November 2003 - 6:00PM
UK Regulatory
RNS Number:3703S
Advent VCT PLC
24 November 2003
Advent VCT plc
24 November 2003
RESULTS FOR THE HALF-YEAR ENDED 30 SEPTEMBER 2003.
The Board of Advent VCT plc announces the results of the company for the
half-year ended 30 September 2003.
Highlights
During the period, the remaining holding in ADVA Optical Networking was sold for
#0.2 million. The aggregate returns from the sale of the entire holding
represents a total return multiple of 3.8 times the original cost.
Follow-on investments totalling #0.3 million were made in three existing
portfolio companies in the period.
Valuations of quoted stocks in the portfolio have risen in the period. The
valuations of Elam-T Ltd and Pelikon Ltd have increased favourably following
success in their respective funding rounds.
Half year ended Year ended Half year ended
30 September 2003 31 March 2003 30 September 2002
(unaudited) (audited) (unaudited)
pence pence pence
Revenue return per ordinary share 0.0 0.1 (0.2)
Net asset value per share 48.9 48.2 71.5
Dividends paid since inception (gross) 7.2 7.2 7.2
--------- --------- ---------
Net asset value plus dividends 56.1 55.4 78.7
An interim dividend is not being recommended.
Chairman's Statement
This interim report of Advent VCT covers the half-year ended 30 September 2003
and gives details of developments during that period.
Portfolio Developments
The six-month period under review has seen the portfolio's performance
stabilising after the sharp fall in net asset value experienced in the previous
year. The Manager's efforts have been focussed on ensuring that all portfolio
companies have as far as possible preserved their cash resources. This has been
largely successful, with follow-on funding requirements totalling only #316,000
in the period, all advanced to companies which the Manager believes should
ultimately generate significant value (Pelikon, DNA Research Innovations and
Elam-T). The Company's own cash resources were enhanced by the sale of the
remaining shares in ADVA AG and sale of the investment in Keep Able.
The net asset value of the Company has increased marginally in the period to
48.9p per share at 30 September 2003 compared with 48.2p as at 31 March 2003.
As stated above, the Manager sold the remaining holding in ADVA AG, realising
proceeds of #168,000. Although this last tranche of shares was realised at a
loss to book cost, overall the proceeds from this investment totalled #6.6m,
representing a return of 3.8 times the original cost. The holding in Keep Able
was sold to a trade buyer for #522,000, realising a loss of #779,000, although
an existing provision covered most of this loss. The Manager's decision to sell
reflected the lack of belief that the company could grow its business further
without significant extra funding. The Manager also disposed of the Company's
holding in OnMedica Group Ltd for nominal consideration, the loss arising again
being covered by an existing provision.
Changes to valuations in the portfolio during the period have largely had a
positive impact on net asset value. The valuation of the holding in Pelikon
reflects the third party price established in the funding round completed in May
2003. The quoted stocks in the portfolio have risen in line with the main
market indices, with Bond International and Oasis Healthcare showing good
performances.
The single reduction in valuation in the portfolio relates to the holding in
Oxagen, which was previously valued at the price of the last funding round in
December 2000. A change in strategy by the company has delayed progress and the
Manager considers it prudent to reduce the valuation to cost.
Dividend
The surplus on the revenue account for the period is #3,000. Consequently, the
Board is not recommending an interim dividend.
Balance Sheet
The net asset value of the Company at 30 September 2003 was 48.9p per share
compared with 48.2p as at 31 March 2003. The venture capital investments have
been valued in accordance with guidelines issued by the British Venture Capital
Association.
Outlook
The erosion of shareholder value in the Company appears to have abated and the
Manager continues to make every effort to prevent any further decline. Although
conditions are still difficult, there are some signs of recovery in the markets
in which the portfolio companies operate. Whilst it is too early to confidently
predict a firm recovery, there has at least been a return of stability to the
portfolio and, with the improvement in the cash position of the Company, funding
can be made available to those portfolio companies with the potential to
generate significant value. I hope to be able to report further progress in the
Annual Report.
GRAHAM ROSS RUSSELL
Chairman
Statement of Total Return
(incorporating the Revenue Account*)of the company for the half-year ended 30
September 2003
Half year ended Year ended Half year ended
30 September 2003 31 March 2003 30 September 2002
(Unaudited) (Audited) (Unaudited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Gains/ (losses)
on investments - 358 358 - (12,932) (12,932) - (5,557) (5,557)
Income 143 - 143 313 - 313 127 - 127
Investment
management fees (50) (149) (199) (96) (287) (383) (95) (296) (391)
Other expenses (66) - (66) (139) - (139) (75) - (75)
------ ------ ----- ------ ------- ------ ------ ------ ------
Net return
before taxation 27 209 236 78 (13,219) (13,141) (43) (5,853) (5,896)
Tax on ordinary
activities (24) 24 - (46) 46 - (20) 20 -
------ ------ ----- ------- ------- ------ ------ ------ ------
Return
attributable to
equity
shareholders 3 233 236 32 (13,173) (13,141) (63) (5,833) (5,896)
Dividends on
ordinary shares - - - - - - - - -
------ ------ ----- ------ ------- ------ ------ ------ ------
Transfer to /
(from) reserves 3 233 236 32 (13,173) (13,141) (63) (5,833) (5,896)
------ ------ ----- ------ ------ ------ ------ ------ ------
Return per
ordinary share 0.0p 0.7p 0.7p 0.1p (42.4)p (42.3)p (0.2)p (18.8)p (19.0)p
------ ------ ----- ------ ------ ------ ------ ------ ------
*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. No operations were acquired or discontinued in the period.
Balance Sheet at 30 September 2003
30 September 31 March 30 September
2003 2003 2002
(Unaudited) (Audited) (Unaudited)
#'000 #'000 #'000
Fixed assets
Venture capital investments
Listed 788 88 124
Quoted on Deutsche Bourse - 48 26
Quoted on AIM 2,200 1,197 376
Unquoted 10,512 12,320 20,959
------ ------- ------
13,500 13,653 21,485
Listed fixed income investments - - 253
------ ------ ------
13,500 13,653 21,738
Current assets
Debtors 248 330 485
Cash and money market deposits 1,426 1,031 46
------ ------ ------
1,674 1,361 531
Current liabilities: amounts
falling due within one year (26) (102) (112)
------ ------ ------
Net current assets 1,648 1,259 419
Net assets 15,148 14,912 22,157
------ ------ ------
Capital and reserves
Called-up share capital 1,548 1,548 1,548
Share premium account 20,493 20,493 20,493
Capital redemption reserve 27 27 27
Other reserves
Distributable reserve 7,510 7,510 7,510
Capital reserve - realised (7,523) (2,941) (3,060)
Capital reserve - unrealised (6,920) (11,735) (4,276)
Revenue reserve 13 10 (85)
------ ------ ------
Shareholders' funds 15,148 14,912 22,157
------ ------ ------
Net asset value per ordinary share 48.9p 48.2p 71.5p
------ ------ ------
Cash Flow Statement for the half-year ended 30 September 2003
Half year ended Year ended Half year ended
30 September 31 March 30 September
2003 2003 2002
(Unaudited) (Audited) (Unaudited)
#'000 #'000 #'000
Reconciliation of revenue to net cashflow from
operating activities
Net revenue before taxation 27 78 (43)
Income received in the form of shares - (279) -
Investment management fee charged to capital (149) (287) (296)
Decrease in creditors (76) (116) (64)
Decrease/(increase) in accrued income - 217 (97)
Decrease/(increase) in debtors 82 (284) (161)
Amortisation of bonds - 3 2
------ ------ ------
Net cash outflow from operating activities (116) (668) (659)
------ ------ ------
Taxation - 76 70
Net capital expenditure and financial 511 1,342 354
investment
Equity dividends paid - - -
Management of liquid resources (395) (689) 303
Financing - (64) (64)
------ ------ ------
(Decrease)/increase in cash for the period - (3) 4
------ ------ ------
Reconciliation of net cash flow to movement in
net funds
(Decrease)/increase in cash for the period - (3) 4
Net funds at start of period 4 7 7
------ ------ ------
Net funds at end of period 4 4 11
------ ------ ------
Contacts for information:
Advent Fund Managers Limited:
Sir David Cooksey 020 7931 2100
Les Gabb
Capital MS&L
Annabel O'Connor 020 7878 3181
Teather & Greenwood:
Jonathan Becher 020 7426 9000
This information is provided by RNS
The company news service from the London Stock Exchange
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