RNS Number : 4601Z
Close IHT AIM VCT PLC
18 July 2008
CLOSE IHT AIM VCT PLC
HALF-YEARLY RESULTS
18 July 2008
Close IHT AIM VCT PLC (the "Company") ,managed by Close Investments Limited, which invests in companies listed on the Alternative
Investment Market (AIM) and PLUS, today announces the Half-yearly results for the six months ended 31 May 2008.
This announcement was approved by the Board of Directors on 18 July 2008.
Please click on the following link to view the Half-yearly Financial Report and Accounts for the six months to 31 May 2008:
http://www.rns-pdf.londonstockexchange.com/rns/4601Z_-2008-7-18.pdf
Alternatively you may view the Half-yearly Financial Report and Accounts at: www.closeventures.co.uk by clicking on the 'Our Funds'
section.
Financial highlights
Unaudited Unaudited Audited
Six Six Year to
months to months to 30 November 2007
31 May 31 May
2008 2007
Revenue return per A and B Ordinary 0.57p 1.01p 1.91p
share
Capital return per A and B Ordinary (7.19)p 7.66p (0.47)p
share
Dividends paid to shareholders 1.00p 1.00p 2.00p
Net asset value per A and B Ordinary 86.52p 102.38p 94.15p
share
Movement in FTSE AIM Index (%) (2.57) 20.15 3.40
Movement in FTSE Small Cap (excl (12.36) 14.97 (11.55)
Investment Trusts) (%)
Financial Calendar
Record date for second dividend August 2008
Payment date of second dividend August 2008
Financial year end 30 November 2008
Announcement of year end results March 2009
Shareholder value per share since launch
Ordinary shares
pence per share
Total dividends paid during the period to 30 November 2006* 1.40
Total dividends paid during the year to 30 November 2007 2.00
Total dividends paid during the period to 31 May 2008 1.00
Total dividends paid to 31 May 2008 4.40
Net asset value as at 31 May 2008 86.52
Total cumulative Shareholder value as at 31 May 2008 90.92
In addition to the dividend above, the Directors have declared a dividend of 1.00 pence per A and B Ordinary share (0.5 pence out of
revenue reserves and 0.5 pence out of realised gains). This dividend is subject to HM Revenue & Customs approval. The record date and
payment date of this dividend will be announced on the London Stock Exchange RNS Service.
* Investors subscribing by 17 January 2006 were entitled to this dividend. Investors subscribing thereafter were not entitled to the
first dividend.
Note
* All dividends paid by the Company are free of income tax. It is an HM Revenue & Customs requirement that dividend vouchers
indicate the tax element should dividends have been subject to income tax. Investors should ignore this figure on their dividend voucher and
need not disclose any income they receive from a VCT on their tax return.
* The net asset value of the Company is not its share price as quoted on the official list of the London Stock Exchange. The share
price of the Company can be found in the Investment Companies section of the Financial Times on a daily basis. Investors are reminded that
it is common for shares in VCTs to trade at a discount to their net asset value, primarily as a result of the initial tax relief which is
non-transferable.
Interim Management Report
Overview
The six month period to 31 May 2008 has been a time of extreme volatility in financial markets as the combination of the fallout from
the credit crisis and fears over inflation have resulted in a considerably reduced appetite for risk among investors. This has had an
adverse effect on smaller company valuations and has led to a slowing in the new issue market. Despite this, your Investment Manager has
continued to make investments with the result that at the end of May, the portfolio was 60 per cent. invested, compared with the 70 per
cent. needed by the end of November. Although there has been a decline in the value of some of the investments in the portfolio, it is
relatively early days for many of these, and provided the companies make progress, this should be reflected in their share prices in time.
Dividends
Your Board has declared a dividend of 1.00 pence per A and B share (0.5 pence out of the revenue reserves and 0.5 pence out of realised
gains). This dividend is subject to HM Revenue & Customs approval and the record date and payment date of this dividend will be announced on
the London Stock Exchange RNS Service. Your Board believes that shareholders appreciate tax free dividends and it will strive to produce a
steady and sensible dividend policy. That may be more difficult to achieve in the short term as new investments are made and the cash
balance is further reduced. However, your Company has realised some distributable profits which should help to maintain dividends when the
income from investments diminishes.
Performance
The Net Asset Value of the 'A' and 'B' Ordinary shares fell in the period by 8.1 per cent. to 86.52 pence, a total return of minus 6.8
per cent. after dividends. This compares with a 2.6 per cent. fall in the FTSE AIM Index. This was once again a period when the FTSE AIM
Index outperformed smaller companies generally because of its high weighting in oil and gas and mining companies that between them account
for about a third of AIM. These companies are not eligible investments for VCTs. Thus, a better comparison might be the FTSE Smaller
Companies Index (excl Investment Trusts). This fell by 12.4 per cent. in the period.
The main reason for the fall in the NAV in the six months was a steady de-rating of smaller company shares as investors became
increasingly risk averse. Liquidity has greatly reduced in smaller companies, leaving many of them priced to reflect the probability of
profits being downgraded over the next few months as the effects of a slowing economy begin to be felt. This contrasts with good progress
being reported by many of the companies in the portfolio which in many cases is not reflected in their share prices.
There have been some setbacks in individual holdings, with Optimisa and Twenty both highlighting signs of weakness in marketing spend
which has, in the former case, coincided with its own challenges to integrate acquisitions. Hatpin, which was suspended pending
clarification of its financial position in February, announced the appointment of administrators in May 2008. It has been written off in the
accounts. Vertu Motors has also suffered from a very weak share price against a background of fear about the sustainability of consumer
spending combined with a stream of profit warnings from Pendragon, one of the largest operators of motor retail outlets. Vertu's business
was still making progress when it reported on its results in April and it is concentrating its efforts on improving the profitability of
what is still a fairly small and manageable estate. It would, however, be unrealistic to expect its shares to recover in the short term.
Claimar also saw its shares fall after it warned on profits as a result of cost pressures.
Many of the holdings in the portfolio have announced good progress despite all the gloom apparent in share prices. Mount Engineering and
Pressure Technologies have both benefited as suppliers to the booming oil sector. Research Now is building critical mass and credibility
with its online consumer panels. The challenge for all small companies in the current environment is financing growth, but this will
hopefully open up opportunities to make further investments at keen prices.
Portfolio Activity
In our statement with the last accounts, we remarked that the Board believed the Investment Manager to be on track to reach its minimum
70 per cent. qualifying investment level within the three years set by HM Revenue & Customs. In the first half of the year, six new
qualifying investments were made at a book cost of �3.0m and �0.4m was invested in a new non-qualifying investment. There was only one
disposal of a qualifying holding when BBI was bid for by a non-qualifying US company. To the date of writing, one further investment has
been made in Darwen Group, a Midlands based bus manufacturer, bringing the HM Revenue & Customs cover up to 63 per cent. This means that the
Investment Manager needs to make three more medium sized investments to reach the 70 per cent. level by the end of November this year.
Your Investment Manager has started to dispose of the holding in the Close Special Situations Fund in the six month period. This is
expected to continue over the coming months as originally set out in the prospectus. The fund has performed relatively well to date,
although current market conditions are affecting values of all equities. Details of related party transactions can be found in note 11.
Shareholder information
We propose to write to shareholders in the Autumn outlining the timetable for the distribution in specie of the 'B' Ordinary shares and
the conversion of the 'B' Ordinary shares to 'A' Ordinary shares. In the meantime any shareholders seeking to remind themselves of the terms
of these corporate actions can refer to the prospectus, a copy of which can be found with other useful information at
www.closeventures.co.uk by clicking the 'Our Funds' section.
Risks and Uncertainties
As required under the Listing Rules under which your Company operates, we are required to comment on the potential risks and
uncertainties which could have a material impact over the VCT's performance. The key risk derives from the need to meet HM Revenue & Customs
regulations requiring 70 per cent. of your Company to be invested in qualifying holdings within three years and to maintain that level of
cover thereafter. In addition, a downturn could affect existing companies' trading prospects and share prices.
Outlook
Although the rate of new issues has evidently slowed down over the last year, the Investment Manager has managed to continue investing
in qualifying investments at sensible valuations for the portfolio. Despite the probability of a lull during the Summer, with only three
more normal sized investments needed to reach 70 per cent, your Board is comfortable that your Investment Manager can continue to be
selective.
The short term prospects for small company share prices looks uncertain with fears over inflation and slowing growth leaving them firmly
out of favour. However, a major factor in successful VCT investment results from backing good management at realistic valuations. Your
Investment Manager believes that current market conditions should generate good opportunities for investing the remaining capital.
Responsibility Statement
The Directors have chosen to prepare this Half-yearly Financial Report for the Company in accordance with United Kingdom Generally
Accepted Accounting Practice ("UK GAAP").
In preparing these summarised financial statements for the period to 31 May 2008, we the Directors, confirm that to the best of our
knowledge:
* the summarised set of financial statements have been prepared in accordance with the pronouncement on interim reporting issued by
the Accounting Standards Board;
* the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and uncertainties for the remaining six months of the year);
* the summarised set of financial statements give a true and fair view in accordance with UK GAAP of the state of affairs of the
Company and of the profit and loss of the Company for that period and comply with UK GAAP and Companies Act 1985 as required by DTR 4.2.4R;
and
* the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
This Half-yearly Financial Report has not been audited or reviewed by the auditors, pursuant to the Auditing Practices Board guidance on
review of the Interim Financial Information.
Portfolio of Investments
at 31 May 2008
Company Fair value �'000 Book cost �'000 Shareholding nominal Voting equity owned Voting equity owned
units by Fund CIHT* by CIL** managed
% funds
%
Qualifying AIM investments
Adept Telecom Ord GBP0.10 209 750 535,715 2.5 4.6
Animalcare Group Ord GBP0.20 600 600 1,090,909 5.5 12.7
BGlobal Ord GBP0.01 108 200 400,000 0.7 1.6
Brulines (Holdings) Ord 278 253 205,882 0.9 2.9
GBP0.10
Claimar Care Group Ord GBP0.10 190 500 476,190 1.0 4.3
Clerkenwell Ventures Ord 433 650 1,733,333 2.1 8.0
GBP0.05
Craneware Ord GBP0.01 263 174 136,328 0.5 1.6
Essentially Group Ord GBP0.001 644 659 5,856,964 3.0 5.6
Fishworks Ord GBP0.01 241 275 4,583,333 4.1 7.3
Hatpin Ord GBP0.025 - - 427,351 - -
Hexagon Human Capital Ord 479 632 382,801 2.1 5.2
GBP0.01
IDOX Ord GBP0.01 378 236 3,150,000 0.9 3.1
Individual Restaurant Company 163 217 206,295 0.5 1.9
Ord GBP0.35
IS Pharma Ord GBP0.70 1,182 1,000 1,298,701 4.2 8.7
Jelf Group Ord GBP0.01 431 180 169,800 0.3 0.6
Lombard Medical Technologies 321 375 2,678,571 2.0 3.6
Ord GBP0.02
Melorio Ord GBP0.10 753 612 612,000 1.9 6.4
Mount Engineering Ord GBP0.01 569 539 769,142 3.2 8.2
Neuropharm Group Ord GBP0.10 535 400 314,959 1.0 4.3
Optimisa Ord GBP0.25 283 511 235,800 2.6 8.8
Plastics Capital Ord GBP0.01 492 535 535,000 2.0 5.2
Pressure Technologies Ord 551 352 234,333 2.1 5.6
GBP0.05
Research Now Ord GBP0.02 375 375 125,000 1.4 4.8
Telephonetics Ord GBP0.01 160 456 2,280,000 2.1 7.5
Twenty Ord GBP0.10 300 750 3,750,000 7.8 18.1
Vertu Motors Ord GBP0.10 538 750 1,250,001 1.4 4.5
Work Group Ord GBP0.02 404 707 878,450 3.1 7.2
Total qualifying equity 10,880 12,688
investments at 31 May 2008
* CIHT: Close IHT AIM VCT, the Company
** CIL: Close Investments Limited, the Investment Manager.
Company Fair value �'000 Book cost �'000 Shareholding nominal
units
AIM Quoted Investments
BGlobal Ord GBP0.01 - 1 1,000
Brulines (Holdings) Ord 2 2 1,000
GBP0.10
Claimar Care Group Ord GBP0.10 - 1 1,000
Hatpin Ord GBP0.025 - - 1,000
Hexagon Human Capital Ord 1 2 1,000
GBP0.01
Individual Restaurant Company 1 1 1,000
Ord GBP0.35
Jelf Group Ord GBP0.01 3 2 1,000
Neuropharm Group Ord GB0.10 2 2 1,000
Research Now Ord GBP0.02 375 375 125,000
Vertu Motors Ord GBP0.10 - 1 1,000
Work Group Ord GBP0.02 - 1 1,000
Listed Investments
Citigroup Inc Floating Rate 2,936 3,002 3,000,000
Note 01/11/10
Authorised Unit Trust
Close Special Situations Fund 3,299 2,925 3,071,189
(ACC)
Total non-qualifying 6,619 6,315
investments at 31 May 2008
Please note, the voting equity for the AIM Quoted Investments listed above have been included in the percentage calculations for each
relevant company in the preceding table.
Summary Income Statement
UnauditedSix months to31 May 2008 UnauditedSix month to31 May 2007 AuditedYear to30 November
2007
Note Revenue Capital Total Revenue Capital Total Revenue Capital
Total
�*000 �*000 �*000 �*000 �*000 �*000 �*000 �*000 �*000
(Losses)/gains on investments 4 - (1,626) (1,626) - 2,092 2,092 - 230 230
Investment income 3 304 - 304 466 - 466 858 - 858
Investment management fees (64) (194) (258) (73) (220) (293) (144) (432)
(576)
Other expenses (71) - (71) (93) - (93) (138) -
(138)
Return/(loss) on ordinary 169 (1,820) (1,651) 300 1,872 2,172 576 (202) 374
activities before finance
costs and taxation
Finance costs (1) - (1) - - - - - -
Return/(loss) on ordinary 168 (1,820) (1,652) 300 1,872 2,172 576 (202) 374
activities before taxation
Tax (charge)/credit on 5 (26) 23 (3) (47) 42 (5) (97) 85
(12)
ordinary activities
Return/(loss) attributable to 142 (1,797) (1,655) 253 1,914 2,167 479 (117) 362
shareholders
Return per share (pence)- 7 0.57 (7.19) (6.62) 1.01 7.66 8.67 1.91 (0.47) 1.44
basic and diluted
Comparative figures have been extracted from the unaudited interim accounts for the period ended 31 May 2007 and the audited statutory
accounts for the year ended 30 November 2007.
The accompanying notes are an integral part of this announcement.
All of the Company's activities derive from continuing operations.
No operations were acquired or discontinued during the period.
The Company has no recognised gains or losses other than the results from the period as disclosed above. Accordingly, a statement of
total recognised gains and losses is not required.
The total column of the Income Statement represents the profit and loss of the Company. The supplementary revenue and capital columns
have been prepared in accordance with the AITC's Statement of Recommended Practice.
Summary Balance Sheet
Unaudited Unaudited Audited
31 May 31 May 30
2008 2007 Novembe
Note r
2007
�'000 �'000 �'000
Fixed asset investments -
at fair value through profit or loss
Qualifying investments 10,880 7,768 9,820
Non-qualifying investments 6,619 16,322 12,711
Total fixed asset investments 17,499 24,090 22,531
Current assets
Debtors 53 156 123
Cash at bank 10 4,144 2,048 1,754
4,197 2,204 1,877
Creditors: amounts falling due within (83) (720) (890)
one year
4,114 1,484 987
Net current assets
21,613 25,574 23,518
Net assets
Capital and reserves
Called up share capital 8 3 3 3
Special reserve 23,604 23,604 23,604
Realised capital reserve (631) (237) (418)
Unrealised capital reserve (1,504) 1,930 80
Revenue reserve 141 274 249
21,613 25,574 23,518
Total shareholders' funds
86.52 102.38 94.15
Net asset value (pence per share)
Comparative figures have been extracted from the unaudited interim accounts for the period ended 31 May 2007 and the audited statutory
accounts for the year ended 30 November 2007
The accompanying notes are an integral part of this announcement.
Summary Reconciliation of Movements in Shareholders' Funds (unaudited)
Called up share Realised capital Unrealised capital Revenue reserve
Total
capital reserve reserve
Special reserve
�'000 �'000 �'000 �'000 �'000
�'000
As at 30 November 2007 3 23,604 (418) 80 249
23,518
Net (loss)/return after - - (213) (1,584) 142
(1,655)
taxation for the period
Dividends paid to shareholders - - - - (250)
(250)
As at 31 May 2008 3 23,604 (631) (1,504) 141
21,613
As at 30 November 2006 3 23,623 (209) (12) 270 23,675
Net (loss)/return after - - (28) 1,942 253 2,167
taxation for the period
Shares purchased for - (19) - - - (19)
cancellation
Dividends paid to shareholders - - - - (249) (249)
As at 31 May 2007 3 23,604 (237) 1,930 274 25,574
3 23,623 (209) (12) 270 23,675
As at 30 November 2006
Net (loss)/return after - - (209) 92 479 362
taxation for the year
Shares purchased for - (19) - - - (19)
cancellation
Dividends paid to shareholders - - - - (500) (500)
As at 30 November 2007 3 23,604 (418) 80 249 23,518
Summary Cash Flow Statement
Unaudited Unaudited Audited
Six Six Year to
months to months to 30 November
31 May 31 May 2007
2008 2007 �'000
�'000 �'000
Note
Operating activities
Investment income received 283 420 808
Deposit interest received 76 32 79
Investment management fees paid (214) (326) (631)
Other expenses paid (86) (74) (138)
Net cash inflow from operating 9 59 52 118
activities
Servicing of finance
Interest paid (1) - (1)
Taxation payment (15) - (29)
Capital expenditure and financial
investments
Purchase of qualifying investments (3,821) (2,698) (5,770)
Purchase of non-qualifying (375) (17) (16)
investments
Disposal of qualifying investments 431 419 419
Disposal of non-qualifying 6,362 3,009 6,001
investments
Net cash inflow from investing 2,597 713 634
activities
Dividends
Dividends paid on Ordinary shares (250) (249) (500)
Financing
Cancellation of shares - (19) (19)
Net cash outflow from financing - (19) (19)
10 2,390 497 203
Increase in cash
.
Notes to the Summarised set of Financial Statements
For the six months to 31 May 2008
1. Accounting convention
The financial statements have been prepared in accordance with the historical cost convention, modified by the revaluation of certain
investments, and in accordance with applicable law and United Kingdom Accounting Standards, and with the Statement of Recommended Practice
"Financial Statements of Investment Trust Companies" ("SORP") issued by the Association of Investment Trust Companies ("AITC") in January
2003 and revised in December 2005. Accounting policies have been applied consistently in current and prior periods.
2. Accounting policies
a) Investments
In accordance with FRS 26 "Financial Instruments: Measurement", equity investments units in an authorised UK smaller company unit trust
and debt securities are designated as fair value through profit or loss ("FVTPL").
Investments listed on recognised exchanges are valued at the closing bid prices or last traded price at the end of the accounting
period. The total column of the Income Statement represents the Company's profit and loss account. Fair value movements on equity
investments and gains or losses arising on the disposal of investments are reflected in the capital column of the Income Statement in
accordance with the AITC's SORP.
Investments are recognised as financial assets on legal completion of the investment contract and are de-recognised on legal completion
of the sale of an investment.
The Directors are conscious of the fact that because shares are traded on AIM, this does not guarantee their liquidity. The nature of
AIM investments and units in an authorised UK smaller company unit trust are such that the prices can be volatile and realisation may not
achieve current book value, especially when such a sale represents a significant proportion of that company's market capital. Nevertheless,
on the grounds that the investments are not intended for immediate realisation, the Directors regard bid prices as the most objective and
appropriate method of valuation.
b) Investment income
Dividends receivable on quoted equity shares and units in an authorised UK smaller company unit trust are taken to revenue on an
ex-dividend basis. Returns on listed debt securities are recognised on a time apportionment basis from the date of purchase so as to reflect
the effective yield on the securities.
c) Investment management fees and other expenses
All expenses are accounted for on an accruals basis. Expenses are charged through the revenue account except as follows:
* expenses which are incidental to the acquisition of an investment are included within the cost of the investment;
* expenses which are incidental to the disposal of an investment are deducted from the disposal proceeds of the investment; and
* expenses are allocated between capital and revenue where a connection with maintenance or enhancement of the value of the
investments held can be demonstrated. In respect of the Investment Manager's fee, 75% has been allocated to the realised capital reserve and
25% to revenue in the Income Statement.
d) Performance incentive
In the event that a performance fee crystallises, the fee will be allocated between revenue and realised capital reserves (net of
corporation tax) based upon the proportion to which the calculation of the fee is attributable to revenue and capital returns.
e) Taxation
Taxation is applied on a current basis in accordance with FRS 16 "current tax" and is based on the profit before taxation for the
period. Taxation associated with capitalised expenses is applied in accordance with the SORP. In accordance with FRS 19 "Deferred Tax",
deferred taxation is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax or a
right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing
differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which
they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not
that they will be recovered. The specific nature of taxation of Venture Capital Trusts means that it is unlikely that any deferred tax will
arise. The Directors have considered the requirements of FRS 19 and do not believe that any provision should be made.
f) Reserves
The realised capital reserve contains gains and losses on the realisation of investments, capital dividends paid to shareholders and
investment management fees allocated to the capital reserve and taxation thereon. The unrealised capital reserve contains increases and
decreases in the valuation of investments held at the end of the accounting period. The special reserve is distributable and is primarily
used for the cancellation of the Company's share capital.
g) Dividends
In accordance with FRS 21 "Events after the balance sheet date" interim dividends are not accounted for until paid and final dividends
are accounted for when approved by shareholders at an annual general meeting.
3. Investment income
Unaudited Unaudited Audited
Six months to Six months to Year to
31 May 2008 31 May 2007 30 November 2007
�'000 �'000 �'000
Dividend income 28 17 25
Floating Rate Note interest 187 375 685
income
Bank deposit interest income 62 39 92
Management fee rebates 27 35 56
304 466 858
All of the Company's income is derived from operations based in the United Kingdom.
4. (Losses)/gains on investments
Unaudited Unaudited Audited
Six months to Six months to Year to
31 May 2008 31 May 2007 30 November 2007
�'000 �'000 �'000
Realised (losses)/gains on (42) 150 138
investments
Unrealised (losses)/gains on (1,584) 1,942 92
investments
(1,626) 2,092 230
5. Tax (charge)/credit on ordinary activities
The tax charge for the half-year is �3,000 which relates to an adjustment to the prior year charge (31 May 2007: �5,000; 30 November
2007: �12,000). The effective tax rate is expected to be nil as investment gains are exempt from tax owing to the Company's status as a
Venture Capital Trust and there is expected to be an excess of management expenses over taxable income.
6. Dividends
During the period, the Company paid a dividend of 1.00p per Ordinary share making a total dividend payment of �250,000 (31 May 2007:
�249,000; 30 November 2007: �500,000). The Board has declared a dividend of 1.00p per Ordinary share (0.5 pence out of revenue reserves and
0.5 pence out of realised gains). This dividend is subject to HM Revenue & Customs approval. The record date and payment date of this
dividend will be announced on the London Stock Exchange RNS service.
7. Basic and diluted return per share
Return per share has been calculated on 24,980,111 (31 May 2007: 24,989,639; 30 November 2007: 25,053,501) shares being the weighted
average number of A and B Ordinary shares in issue for the period.
There are no convertible instruments, derivatives or contingent share agreements in issue for Close IHT AIM PLC hence there are no
dilution effects to the return per share. The basic return per share is therefore the same as the diluted return per share.
8. Share Capital
Unaudited Unaudited Audited
Six months to Six months to Year to
31 May 2008 31 May 2007 30 November 2007
�'000 �'000 �'000
Authorised
275,000,000 A Ordinary shares 27 27 27
of 0.01p each
275,000,000 B Ordinary shares 27 27 27
of 0.01p each
Allotted called up and fully
paid
7,299,461 A Ordinary shares of 1 1 1
0.01p each
17,680,650 B Ordinary shares 2 2 2
of 0.01p each
3 3 3
All classes of shares rank pari passu as to rights to attend and vote at any general meeting of the Company, and to receive dividends.
The capital and assets of the Company shall on a winding up be divided amongst the holders of each class of share pro rata according to
their shareholding.
9. Reconciliation of (loss)/return before finance costs and taxation to net cash inflow from operating activities
Unaudited Unaudited Audited
Six months to Six months to Year to
31 May 2008 31 May 2007 30 November 2007
�'000 �'000 �'000
(Loss)/return on ordinary (1,651) 2,172 374
activities before finance
costs and taxation
Net capital loss/(return) 1,820 (1,872) 202
before finance costs and
taxation
Investment management fees (194) (220) (432)
charged to capital
Decrease/(increase) in 69 (17) 16
operating debtors
Increase/(decrease) in 15 (11) (42)
operating creditors
Net cash inflow from operating 59 52 118
activities
10. Analysis of change in cash during the period
Unaudited Unaudited Audited
Six months to Six months to Year to
31 May 2008 31 May 2007 30 November 2007
�'000 �'000 �'000
Opening net funds 1,754 1,551 1,551
Net cash inflow 2,390 497 203
Closing net funds 4,144 2,048 1,754
11. Related party transactions
The Investment Manager, Close Investments Limited, is considered to be a related party by virtue of the fact that it is party to a
management agreement from the Company. During the period, services of a total value of �258,000 (31 May 2007: �293,000; 30 November 2007:
�576,000) were purchased by the Company from Close Investments Limited. At the financial period end, the amount due to Close Investments
Limited was �37,000 (31 May 2007: �14,000; 30 November 2007: nil) and debtors were nil (31 May 2007: nil; 30 November 2007: �8,000).
As at 31 May 2008, the Company held 3,071,189 units, in Close Special Situations Fund, an authorised unit trust which is managed by
Close Investments (UK) Limited, a subsidiary of Close Brothers Group, the ultimate parent company of the Investment Manager. This investment
was valued at �3,299,000 as at 31 May 2008 (cost �2,925,000). The Company received a rebate of �27,000 (31 May 2007: �35,000; 30 November
2007: �56,000) on the Management fees charged by Close Special Situations Fund in the period under review.
The Close Special Situations Fund held an investment in Tenon Group PLC, a company of which Andrew Raynor is Chief Executive Officer.
12. Other information
The information set out in the Half-yearly Report does not constitute the Company's statutory accounts within the terms of section 240
of the Companies Act 1985 for the period ended 31 May 2008 and 31 May 2007, and is unaudited. The information for the year ended 30 November
2007 does not constitute statutory accounts within the terms of section 240 of the Companies Act 1985 and is derived from the statutory
accounts for the financial year, which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their
report was unqualified and did not contain a statement under s237 (2) or (3) of the Companies Act 1985.
13. Publication
The Half-yearly report is being sent to shareholders and copies will be made available to the public at the registered office of the
Company and at Companies House, the FSA viewing facility and also electronically on www.closeventures.co.uk.
For further information, please contact:
Andrew Buchanan / Kate Tidbury Karen Wagg
Close Investments Limited Polhill Communications
Tel: 020 7426 4000 Tel: 0207 6550500
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FKFKDOBKDNOD
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