Interim Results
24 Août 2006 - 2:53PM
UK Regulatory
RNS Number:0708I
Downing Protected VCT V PLC
24 August 2006
Downing Protected VCT V plc
Interim Statement for the period ended 31 May 2006
CHAIRMAN'S STATEMENT
I would like to welcome Shareholders to Downing Protected VCT V plc and am
pleased to present the Company's initial set of results.
Share issue
The Company, along with its sister company (Downing Protected VCT IV plc),
launched its fundraising in December 2005. The lower-risk strategy offered by
the Protected VCTs was well received by the market and made this a very
successful VCT issue, with the Offers becoming fully subscribed before the end
of the 2005/2006 tax year, having raised total gross proceeds of #43.3 million.
Downing Protected VCT V plc issued 21.7 million shares, giving net proceeds of
#20.3 million after taking into account the 5.5% issue costs. It is intended
that investments made by Downing Protected VCT V plc and Downing Protected VCT
IV plc will be identical, and, as the two Companies are of a similar size,
performance is also expected to be very similar.
Venture capital investments
The Company made its first VCT qualifying investments in the period to 31 May
2006. An investment of #1 million was made in Nu Nu plc, an owner and operator
of children's nurseries, in April 2006. A large proportion of the investment
was made in loan stock, which is secured by a first charge over the company's
freehold nurseries.
The investment in Nu Nu plc is typical of the types of investment now being
sought by the Investment Management team. A number of potential new investments
have been identified and progressed since the period end, all of which meet the
investment criteria of being businesses undertaking VCT qualifying trades, but
with the benefit of having some form of asset backing over which the VCT can
take a charge which should help to provide some downside protection. Although
finding investment opportunities that meet these criteria can be difficult, the
Investment Management team is well experienced in this area and the Board is
happy with the initial progress.
In order to allow some opportunities to be pursued and developed, the Company
has made investments in a number of newly incorporated companies (shown as "
Other investments" on the Balance Sheet"). These companies are actively seeking
to commence or acquire businesses in a number of different sectors, all of which
will meet the VCT's investment strategy.
Net Asset Value and Results
At the period end, the Net Asset Value per share ("NAV") of the Company stood at
94.8p, a small increase of 0.3p from the initial NAV of 94.5p.
The revenue profit after taxation for the period amounted to #72,000.
Share repurchase
Subject to certain restrictions, the Company operates a policy of buying in any
shares for cancellation that become available in the market, but none have been
bought back in this initial period.
Outlook
The Board was very pleased with the outcome of the Company's fundraising but is
aware that there is now a great deal of work to be done in getting the funds
invested. The Investment Management team has been expanded since the
fundraising and the Board feels comfortable that the Investment Manager has
sufficient resources to be able to undertake its task successfully.
I look forward to reporting progress in investing the Company's funds in my
statement with the first Annual Report covering the period to 30 November 2006.
Hugh Gillespie
Chairman
UNAUDITED SUMMARISED BALANCE SHEET
as at 31 May 2006
31 May 2006
#'000
Investments
VCT qualifying investments 1,000
Other investments 10,000
Net current assets 9,579
Creditors: amounts falling due after more than one (20)
year
Net assets 20,559
Capital and reserves
Called up share capital 217
Share premium 20,271
Revenue reserve 71
Total equity 20,559
Net asset value per share 94.8p
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS FUNDS
31 May 2006
#'000
Opening shareholder's funds -
Issue of shares 21,730
Share issue costs (1,192)
Redemption of preference shares (50)
Total recognised gains for the period 71
Closing shareholder's funds 20,559
UNAUDITED INCOME STATEMENT
for the period ended 31 May 2006
Period ended
31 May 2006
Revenue Capital Total
#'000 #'000 #'000
Income 209 - 209
Gains on investments - - -
209 - 209
Investment management fees (42) - (42)
Other expenses (62) - (62)
Return on ordinary activities before taxation 105 - 105
Taxation (34) - (34)
Return attributable to equity shareholders 71 - 71
Return per share 0.5p - 0.5p
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the period ended 31May 2006
Period ended
31 May 2006
Revenue Capital Total
#'000 #'000 #'000
Return attributable to equity shareholders 71 - 71
Total recognised gains for the period 71 - 71
UNAUDITED CASH FLOW STATEMENT
for the period ended 31 May 2006
31 May
2006
Note #'000
Cash inflow from operating activities and returns on 65
investments
1
Taxation
Corporation tax paid -
Capital expenditure
Purchase of investments (11,000)
Net cash outflow from capital expenditure (11,000)
Equity dividends paid -
Net cash outflow before financing
Financing
Shares issued 21,730
Redemption of preference shares (50)
Share issue costs (1,192)
Net cash inflow from financing 20,488
9,553
Increase in cash 2
Notes to the cash flow statement:
1 Cash inflow from operating activities and returns on
investments
Net revenue before taxation 105
Increase in other debtors (78)
Increase in other creditors 38
Net cash inflow from operating activities 65
2 Analysis of net funds
Beginning of period -
Net cash inflow 9,553
End of period 9,553
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
1.Accounting policies
Basis of accounting
The Company has prepared its financial statements under UK Generally Accepted
Accounting Practice ("UK GAAP"). Where presentation guidance set out in the
Statement of Recommended Practice "Financial Statements of Investment Trust
Companies" revised December 2005 ("SORP") is inconsistent with the requirements
of UK GAAP, the Directors have sought to prepare the financial statements on a
basis compliant with the recommendations of the SORP.
The financial statements are prepared under the historical cost convention
except for the revaluation of certain financial instruments.
Presentation of Income Statement
In order to better reflect the activities of an investment trust company and in
accordance with guidance issued by the AITC, supplementary information which
analyses the income statement between items of a revenue and capital nature has
been presented alongside the income statement. The net revenue is the measure
the directors believe appropriate in assessing the Company's compliance with
certain requirements set out in Section 842 Income and Corporation Taxes Act
1988.
Investments
All investments are designated as "fair value through profit or loss" assets and
are initially measured at cost. Thereafter the investments are measured at
subsequent reporting dates at fair value.
Listed fixed income investments and investments quoted on the AIM are valued
using bid prices with illiquidity discounts applied where deemed appropriate.
In respect of unquoted instruments, fair value is established by using the
International Private Equity and Venture Capital Valuation guidelines. Where no
reliable fair value can be estimated for such unquoted equity investments they
are carried at cost, subject to any provision for impairment. Where an investee
company has gone into receivership or liquidation the investment, although not
physically disposed of, is treated as being realised.
Gains and losses arising from changes in fair value are included in the income
statement for the year as a capital item and transaction costs on acquisition or
disposal of the investment expensed.
It is not the Company's policy to exercise either significant or controlling
influence over investee companies. Therefore the results of these companies are
not incorporated into the revenue account except to the extent of any income
accrued.
Income
Dividend income from investments is recognised when the shareholders' rights to
receive payment has been established, normally the ex dividend date.
Interest income is accrued on a timely basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life
of the financial asset to that asset's net carrying amount, and only where there
is reasonable certainty of collection.
Expenses
All expenses are accounted for on accruals basis. In respect of the analysis
between revenue and capital items presented within the income statement, all
expenses have been presented as revenue items except that expenses which are
incidental to the disposal of an investment are deducted from the disposal
proceeds of the investment.
Deferred taxation
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 financial statements.
2. All revenue and capital items in the Income Statement derive from continuing
operations.
3. The Company has only one class of business and derives its income from
investments made in shares, securities and bank deposits.
4. Return per share for the period has been calculated on 14,026,534 shares,
being the weighted average number of shares in issue during the period.
5. Reserves
Share
Premium Revenue
Reserve Reserve
#'000 #'000
At 24 November 2005 - -
Share issues 20,271 -
Share issue costs (1,192) -
Retained net revenue for the period - 71
At 31 May 2006 20,271 71
The Revenue Reserve is a distributable reserve.
6. The unaudited financial statements set out herein do not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985
and have not been delivered to the Registrar of Companies.
7. Copies of the unaudited interim results will be sent to shareholders
shortly. Further copies can be obtained from the Company's Registered Office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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