Octopus Eclipse VCT Octopus Eclipse Vct Plc : Final Results
28 January 2016 - 3:54AM
UK Regulatory
TIDMOEC1
Octopus Eclipse VCT plc
Annual Report & Accounts for the year ended 30 September 2015
Final Results
27 January 2016
Octopus Eclipse VCT plc, managed by Octopus Investments Limited, today
announces the final results for the year to 30 September 2015.
These results were approved by the Board of Directors on 27 January
2016.
You may shortly view the Annual Report in full at
www.octopusinvestments.com. All other statutory information will also be
found there.
Octopus Eclipse VCT plc is a venture capital trust which aims to provide
shareholders with attractive tax-free dividends and long-term capital
growth, by investing in a diverse portfolio of unquoted and AIM-quoted
companies.
Financial Summary
Year to 30 September Year to 30 September
2015 2014*
Net assets (GBP'000s) 35,089 35,084
Profit after tax
(GBP'000s) 66 5,889
Net asset value per share
('NAV') 34.7p 36.6p
Cumulative dividends paid
since launch 77.7p 75.7p
Total Value (NAV plus
cumulative dividends
paid) 112.4p 112.3p
Total Return** 0.1p 6.2p
Total Return %*** 0.3% 15.7%
Dividends paid in the year 2.0p 9.0p
Declared special dividend 1.0p 7.0p
Proposed final dividend 1.0p 1.0p
* These figures have been restated as discussed fully in note 2 in the
Annual Report.
** Calculated as the change in NAV in the year plus dividends paid in
the year
*** Calculated as total return / opening NAV
KEY DATES
Special dividend payment date 26
February 2016
Annual General Meeting 17
March 2016 (3.00 p.m. at 33 Holborn, London EC1N 2HT)
Final dividend payment date 1 April
2016
Half-yearly results to 31 March 2016 published May 2016
Annual results to 30 September 2016 announced January 2017
Annual Report and financial statements published February 2017
NAV AND DIVIDENDS
Period Ended NAV Dividends paid NAV + cumulative dividends (total
in period value)
30 November 2004 96.0p - 96.0p
31 May 2005 96.8p - 96.8p
30 November 2005 94.2p 1.45p 95.7p
31 May 2006 96.8p - 98.3p
30 November 2006 113.5p 1.25p 116.2p
31 May 2007 126.1p 4.00p 132.8p
30 November 2007 118.9p 4.00p 129.6p
31 May 2008 104.8p 3.00p 118.5p
30 November 2008 83.7p 7.00p 104.4p
31 July 2009 80.7p 5.00p 106.4p
31 January 2010 77.9p 5.00p 108.6p
31 July 2010 76.5p 5.00p 112.2p
31 January 2011 71.8p 5.00p 112.5p
31 July 2011 66.2p 2.00p 108.9p
31 January 2012 56.8p 4.00p 103.5p
30 September 2012 49.2p 8.00p 103.9p
31 March 2013 38.7p 11.00p 104.4p
30 September 2013 39.4p 1.00p 106.1p
31 March 2014 46.1p 1.00p 113.8p
30 September 2014* 36.6p 8.00p 112.3p
31 March 2015 35.2p 1.00p 111.9p
30 September 2015 34.7p 1.00p 112.4p
A special dividend of 1.0p per share will be paid on 26 February 2016 to
shareholders on the register on 29 January 2016.
The final dividend of 1.0p per share will be paid on 1 April 2016 to
shareholders on the register on 4 March 2016.
* These figures have been restated as discussed fully in note 2 in the
Annual Report.
Chairman's Statement
In the context of a generally unpredictable investment environment for
much of 2015, your Company has had a satisfactory and relatively stable
year, with a Total Return (change in NAV in the year plus dividends paid
in the year) of 0.1p. The sale of the Kendal Group Limited along with
the several new investments made have greatly refreshed the portfolio.
The Company continues with a distinct investment strategy that builds
upon Eclipse's strengths in the development capital space, but also
allows Eclipse shareholders to benefit from the Octopus deal flow. We
have a clearly-defined long term asset allocation model which is
reviewed regularly in the light of financial and economic circumstances
and we have continued to review a healthy pipeline of investment
opportunities. We were particularly pleased to be able to deploy GBP1.8
million of development capital into Oxifree Group Holding Limited as
this evidences the Manager's continued ability to source later-stage
transactions in well-established businesses. Such investments form an
important cornerstone of the distinctive Eclipse strategy.
Nonetheless, the Manager has been tasked to continue to build value
within the existing portfolio and to achieve exits that exceed carrying
values. Your Board believes the Manager has achieved these objectives
during the period under review and we will continue to monitor their
progress over the next financial year.
As previously communicated, we were sad to lose the expertise of David
Lambert from the Board as he had indicated his desire to step down from
Eclipse duties after 10 years of service. His advice and diligence,
especially as Chair of the Audit Committee, has been invaluable but, in
Lars McBride, his replacement, I believe we have identified someone more
than able to fill David's shoes since he stepped down at the end of
February 2014.
Summary of the year
As communicated at the time of the merger of the four Eclipse VCTs in
2012, the Board set the Investment Manager the objectives set out below.
These objectives were established to ensure the KPIs continue to be met:
-- Stabilise performance
-- Complete on exits where appropriate
-- Pay dividends and facilitate share buybacks
-- Make new investments that drive the portfolio mix towards the long-term
asset allocation target
During 2015, the Company continued to execute on the objectives stated
above. Last year the Company made disposals and generated sufficient
liquidity to pay dividends and meet buyback demands.
Your Investment Manager has added to the portfolio by making seven new
investments and four follow-on investments in unquoted companies
totalling GBP6,993,000, which has further diversified the portfolio.
Fund Raising
I am delighted to inform you that the Company filled the offer for
subscription to raise up to 10% of its issued share capital, (subject to
a maximum of EUR5 million). The offer closed in December having raised
GBP3.5 million into the Company in the 2014/2015 and 2015/2016 tax
years.
Performance
Eclipse reported an increase in Total Value (being net asset value (NAV)
plus cumulative dividends paid) of 0.1p to 112.4p per share during the
year representing a 0.3% increase on the opening NAV.
The Company's objective has been met as the portfolio is invested in a
broad range of mainly smaller unquoted UK companies and AIM-quoted
companies traded on the London Stock Exchange (LSE). The disposals made
during the year along with the new additions have helped diversify the
portfolio and create a more balanced position.
Portfolio
As at 30 September 2015, the Company had investments in 20 unquoted and
eight AIM-quoted companies (including one unquoted investment held in
the portfolio in liquidation).
Investment Portfolio
The combined quoted and unquoted portfolio saw an overall uplift in fair
value of GBP515,000 during the year (excluding additions and disposals).
The two largest valuation uplifts were in Reading Room, which was sold
shortly after the year end, and Touchtype (Swiftkey), which had a
combined positive impact of GBP788,000 on the portfolio.
The 11 investments made in the year are in a broad range of sectors and
we are confident that these additions to the portfolio will bring
capital growth over the mid-term.
In addition to the overall unrealised gain is the total realised gain of
GBP293,000 made in the year. As previously mentioned Kendal Group was
the largest contributor to this gain creating a profit of GBP183,000 in
the year and an overall return in excess of three times the original
investment. The total realised gain comprised GBP380,000 of gains and
one GBP88,000 loss.
As one might anticipate, some investments have fallen short of
expectations and have been reduced in value. The History Press has seen
a further reduction in value in the period. Despite the successful sale
of its US division, resulting in a return of GBP1,000,000 to Eclipse at
the start of the year, the publishing market continues to be challenging
January 27, 2016 11:54 ET (16:54 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
multiple platforms (BlackBerry, iOS and Android). The results for the
year to December 2014 versus the previous year reflect the change in
strategy from a paid app to a freemium model.
Initial investment date: June 2015
Cost: GBP765,000
Valuation: GBP1,125,000
Last audited accounts: 31
December 2014 31 December 2013
Revenues: GBP8,412,000 GBP9,779,628
Loss before interest & tax: GBP(5,963,000)
GBP(111,994)
Net assets: GBP3,479,000 GBP8,270,219
If you have any questions on any aspect of your investment, please do
not hesitate to call one of the team on 0800 316 2295.
Alex Macpherson
Octopus Investments Limited
27 January 2016
Income
Statement
Year to 30 September
Year to 30 September 2015 2014*
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Realised gain
on disposal of
fixed asset
investments - 293 293 - 6,189 6,189
Fixed asset
investment
holding gains - 515 515 - 371 371
Investment
income 527 - 527 660 - 660
Investment
management
fees (159) (476) (635) (171) (514) (685)
Other expenses (634) - (634) (646) - (646)
Profit/(Loss)
before tax (266) 332 66 (157) 6,046 5,889
Taxation - - - - - -
Profit (266) 332 66 (157) 6,046 5,889
Earnings per
share - basic
and diluted (0.2)p 0.3p 0.1p (0.2)p 6.3p 6.1p
* The results for 2014 have been restated as discussed fully in note 2
in the Annual Report.
-- The 'Total' column of this statement is the profit and loss account of
the Company; the supplementary revenue return and capital return columns
have been prepared under guidance published by the Association of
Investment Companies.
-- 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 and securities and from bank and money market
funds.
The Company has no other comprehensive income for the period.
Balance Sheet
As at 30 September 2015 As at 30 September 2014*
GBP'000 GBP'000 GBP'000 GBP'000
Fixed asset
investments** 28,259 26,552
Current assets:
Debtors 136 405
Money market
securities* and
other deposits 2,042 4,550
Cash at bank 4,853 4,091
7,031 9,046
Creditors: amounts
falling due within
one year (201) (514)
Net current assets 6,830 8,532
Net assets 35,089 35,084
Called up equity
share capital 10,122 9,589
Share premium 1,893 -
Special distributable
reserve 20,633 22,366
Capital redemption
reserve 5,760 5,540
Capital reserve -
realised
gains/(losses) (1,548) 585
- holding
gains/(losses) (861) (2,352)
Revenue reserve (910) (644)
Total equity
shareholders' funds 35,089 35,084
Net asset value per 34.7p 36.6p
share
* The results for 2014 have been restated as discussed fully in note 2
in the Annual Report.
** Held at fair value through profit and loss
The statements were approved by the Directors and authorised for issue
on 27 January 2016 and are signed on their behalf by:
Alex Hambro
Chairman
Statement of changes in Equity
Year to Year to
30 September 2015 30 September 2014*
GBP'000 GBP'000
Shareholders' funds at start of year 35,084 38,662
Profit after tax 66 5,889
Purchase of own shares (739) (766)
Issue of equity 2,646 -
Dividends paid (1,968) (8,701)
Shareholders' funds at end of year 35,089 35,084
* The comparative reconciliation for 2014 has been restated as discussed
fully in note 2 in the Annual Report.
Cash Flow Statement
Year to Year to
30 30
September September
2015 2014*
GBP'000 GBP'000
Reconciliation of profit to cash flows from operating
activities
Profit before tax 66 5,889
Decrease/(increase) in debtors 269 (225)
Decrease in creditors (313) (3)
Gains on disposal of fixed assets (293) (6,189)
Gains on valuation of fixed asset investments (515) (371)
Outflow from operating activities (786) (899)
Cash flows from investing activities
Purchase of fixed asset investments (6,993) (3,889)
Sale of fixed asset investments 6,094 16,592
(Outflow)/Inflow from investing activities (899) 12,703
Cash flows from financing activities
Dividends paid (1,968) (8,701)
Purchase of own shares (739) (766)
Share issue 2,646 -
Outflow from financing activities (61) (9,467)
(Decrease)/Increase in cash and cash equivalents (1,746) 2,337
Opening cash and cash equivalents 8,641 6,304
Closing cash and cash equivalents** 6,895 8,641
* The comparative reconciliation for 2014 has been restated as discussed
fully in note 2 in the Annual Report.
** Comprises cash at bank, money market securities and other deposits.
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Octopus Eclipse VCT plc via Globenewswire
HUG#1981668
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