RNS Number:9531R
eTechnology VCT
11 November 2003
Financial Summary
6 months ended 30 6 months ended 30 Year ended 31 March
September 2003 September 2002 2003
(unaudited) (unaudited)
Net asset value at period end 60.37p 64.35p 56.54p
before distributions
Net asset value after 60.37p 64.35p 56.54p
distributions
Total return for the period 3.83p (3.34)p (11.16)p
Chairman's Report
The results for the six months ended 30 September 2003 are in line with the
Board's expectations bearing in mind the challenges faced by companies within
the technology sector and telecommunications marketplace. The accounts for the
period show a net loss of #9,000 (first half year profit 2002: #3,000). When
taking into account the realised and unrealised gains on both the listed and
unlisted investments, there is an overall positive return of #521,000 (2002:
negative return of #455,000). The shareholders' funds at 30 September were
#8.214 million representing 60.37p per share. This represents a recovery per
share of 3.83p in comparison to the year end position at 31 March 2003.
The six month period was a difficult time in the marketplace for many of our
investee companies. However, there was some significant recovery within our
listed technology stocks, in line with a market recovery. Whilst there is still
volatility in this sector the Board decided to increase investment in the listed
portfolio by a small amount bringing the value of the technology stocks
portfolio to 8.3% of net assets at the period end. We are also pleased that we
are able to report a net improvement in the market value of the quoted (AIM)
qualifying investments. Overall we are able to report a net improvement in the
unrealised value of the investments held during the period of #611,000.
During the period we continued to examine investment opportunities and have
increased investment in the qualifying portfolio by some #600,000 as a result of
follow-on financing of Burgundy Global and Jacobs Rimell. We will continue to
look at follow-on for our current investments where we feel this is appropriate.
After the period end our entire holding in Heritage Image Partnership was
acquired by Sarantel. This was completed by way of share exchange which
resulted in a follow-on further investment in Sarantel at a minimum valuation of
#125,000, and further details in respect of this transaction will be provided
within the year end accounts.
We remain cautious with our investment policy both in regard to the qualifying
investments and also the listed portfolio, both managed by Cavendish Asset
Management ("CAM"). As a result, we have only made some small adjustments to
the portfolios although we do review them on a regular basis, as well as
examining opportunities for additional qualifying investments. Our holding in
gilts remains the largest part of our non qualifying assets. We continue to
monitor the qualifying investment position to ensure that the 70% VCT investment
and other criteria are met.
Whilst remaining cautious, we believe the outlook for technology related
investment is more optimistic, with slow recovery expected during next year.
The telecommunications sector however remains far more difficult, and it appears
unlikely that there will be any form of recovery from this sector during the
next twelve months. We continue to help and support our qualifying investments
in order that they can achieve the best possible results so that despite
challenges in their marketplaces, the investments nonetheless deliver value in
due course.
Michael Teacher
CHAIRMAN
11 November 2003
eTechnology VCT plc
Statement of Total Return (incorporating the revenue account)
Unaudited
6 months
ended 30 September 2003
Revenue Capital Total
#000 #000 #000
Gains / (losses) on investments
- Realised - (23) (23)
- Unrealised - 611 611
Income 79 - 79
Investment management fee (57) (38) (95)
Other expenses (31) (20) (51)
Net return before finance costs and (9) 530 521
taxation
Return on ordinary activities (9) 530 521
before and after taxation (nil)
Return attributable to equity (9) 530 521
shareholders
Dividends - - -
Transfer to reserves (9) 530 521
Return per ordinary share - (0.07)p 3.90p 3.83p
basic and diluted
eTechnology VCT plc
Statement of Total Return (incorporating the revenue account)
(Continued)
Unaudited Audited
6 months Year ended
to 30 September 2002 31 March 2003
Revenue Capital Total Revenue Capital Total
#000 #000 #000 #000 #000 #000
Gains / (losses) on investments
- Realised - 28 28 (19) (19)
- Unrealised - (456) (456) (1,427) (1,427)
Income 125 - 125 208 - 208
Investment management fee (76) (19) (95) (97) (64) (161)
Other expenses (46) (11) (57) (71) (48) (119)
Net return before finance costs 3 (458) (455) 40 (1,558) (1,518)
and taxation
Return on ordinary activities 3 (458) (455) 40 (1,558) (1,518)
before and after taxation (nil)
Return attributable to equity 3 (458) (455) 40 (1,558) (1,518)
shareholders
Dividends - - - - - -
Transfer to reserves 3 (458) (455) 40 (1,558) (1,518)
Return per ordinary share - basic 0.02p (3.36)p (3.34)p 0.29p (11.45)p (11.16)p
and diluted
eTechnology VCT plc
Balance Sheet
Unaudited Unaudited Audited
As at As at As at
30 Sep 2003 30 Sep 2002 31 Mar 2003
#000 #000 #000
Investments 7,295 8,516 6,051
Net current assets 919 240 1,642
Net assets 8,214 8,756 7,693
Capital and Reserves
Called-up share capital 680 680 680
Share premium 12,115 12,115 12,115
Capital reserve - realised (2,877) (2,133) (2,801)
Capital reserve - unrealised (1,683) (1,857) (2,289)
Revenue reserve (21) (49) (12)
Total shareholders' funds 8,214 8,756 7,693
Net asset value per ordinary share 60.37p 64.35p 56.54p
eTechnology VCT plc
Cash Flow Statement
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 Sep 2003 30 Sep 2002 31 Mar 2003
#000 #000 #000 #000 #000 #000
Net Cash (outflow) / inflow from (11) 8 14
Operating Activities
Capital Expenditure & Financial
Investments
Purchase of investments (2,315) (933) (2,079)
Sale of Investments 1,658 903 3,465
Net cash (outflow)/ inflow from financial (657) (30) 1,386
investments
Taxation - - -
(Decrease)/ Increase in cash at bank (668) (22) 1,400
Analysis of cash balance
At 1 April 1,709 309 309
Net cash inflow/(outflow) for the period (668) (22) 1,400
Cash Balance at 30 September 2003 1,041 287 1,709
Notes :-
1. The financial information given above does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. The
figures for the year ended 31 March 2003 have been extracted from the financial
statements for that period; the auditors' report on those financial statements
under section 235 of the Companies Act 1985 was unqualified.
2. Returns per Ordinary Share are based on 13,606,734 ordinary shares, being
the weighted average number of shares in issue for all periods.
3. The net asset values per Ordinary Share are based on 13,606,734 shares in
issue each period end.
4. Copies of the Interim Report are being sent to shareholders and can be
obtained from the registered office: 19 Cavendish Square London W1A 2AW.
Investment Portfolio at 30 September 2003
Balance Sheet
Cost Mid-Market % of fund Profit /
Value (Loss)
Qualifying Investments Holding # # #
AIM
Biofocus plc 43,862 127,200 55,485 0.67 (71,715)
OMG plc 233,333 175,000 26,687 0.32 (148,313)
Pilat Media Global plc 1,500,000 300,000 592,500 7.21 292,500
Deltex Medical plc 800,000 200,000 118,000 1.44 (82,000)
Unlisted
Jacobs Rimell Ltd 595,442 943,930 487,620 5.94 (456,310)
Burgundy Global Ltd 147,059 1,250,000 1,250,000 15.22 -
Networks by Wireless 700,000 700,000 700,000 8.52 -
iDesk plc 126,582 500,000 - - (500,000)
Boxmind Ltd 816 150,000 - - (150,000)
Heritage Image Partnership Ltd 36,262 500,000 170,000 2.07 (330,000)
CableNet International Ltd 1,785,714 344,828 - - (344,828)
Avidex Limited 12,500 500,000 500,000 6.09 -
Vectura Limited 259,740 500,000 500,000 6.09 -
Sarantel Limited 1,818,182 600,000 600,000 7.30 -
Sub Total 6,790,958 5,000,292 60.87 (1,790,666)
Non-Qualifying Investments
Quoted Stocks 1,089,448 685,301 8.34 (404,147)
Gilts - Treasury 5.75% 2009 1,500,000 1,597,896 1,609,650 19.60 11,754
Sub Total 2,687,344 2,294,951 27.94 (392,393)
Total Investment Portfolio 9,478,302 7,295,243 88.81 (2,183,059)
Net Current Assets Including Cash 919,212 919,212 11.19 -
Total 10,397,514 8,214,455 100.00 (2,183,059)
Notes:-
1. Balance sheet values in respect of quoted stocks have been
calculated using mid market prices at 30 September 2003. Unquoted investments
are stated at historic cost unless, in the opinion of the directors, there has
been a diminution in value, in which case this has been provided for.
2. Qualifying investments carry full voting rights for the
Company.
3. Shares are non-qualifying if they have been acquired in the
market rather than as a result of a new issue.
This information is provided by RNS
The company news service from the London Stock Exchange
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