Final Results
19 Décembre 2006 - 12:04PM
UK Regulatory
RNS Number:2071O
Ethical AIM VCT PLC (The)
19 December 2006
THE ETHICAL AIM VCT PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2006
FINANCIAL HIGHLIGHTS
2006 2005
pence pence
(restated)
Net asset value (per share) 48.00 49.50
Cumulative dividends per ordinary share paid to date (capital and revenue) 6.75 4.25
Total return (Net asset value plus cumulative dividends) 54.75 53.75
Distributions paid during the year (per share) 2.50 3.00
Final proposed distribution (per share) 1.00 1.50
CHAIRMAN'S STATEMENT
The Statement by the Chairman, Andrew Davison, includes the following:
Net Asset Value
At the year-end, the Company's Net Asset Value ("NAV") stood at 48.0p per share
an increase of 1.0p per share or 2.0% since the previous year-end after taking
account of dividends of 2.5p per share paid in the year. The Company's Total
Return (NAV plus cumulative dividends since launch) now stands at 54.75p.
Venture capital investments
During the year, the Company made two new investments in AIM-quoted companies
totalling #235,000. Some small follow-on investments in existing unquoted
companies were also made.
Overall the venture capital investments gave rise to unrealised losses of
#33,000 and realised gains of #147,000 during the year.
Ethical Committee
The Ethical Committee has welcomed the addition of the investment in Bioganix
plc, a business producing systems for food waste composting, to the portfolio.
The committee has also continued to monitor investee companies and new
investments for compliance with the Company's Ethical Policy throughout the
year.
Listed fixed income securities
At the year-end, the Company held a portfolio of listed fixed income securities
with a valuation of #751,000. During the year the portfolio gave rise to
unrealised losses of #19,000.
Format of accounts
For this accounting period, your Company is required to adopt FRS 21, under
which dividends have to be accounted for in the period in which they are paid,
rather than the period in respect of which they are declared. As a result the
corresponding figures for the year ended 30 September 2005 have been restated.
Results and distribution
The gain on activities after taxation was #74,000 (2005: #398,000) comprising a
revenue loss of #8,000 and a capital profit of #82,000.
As a result of the level of realised capital gains the Company made during the
year, the Board is proposing to pay a further capital distribution of 1.0p per
share, in addition to the 1p distribution paid in July 2006, bringing the total
capital distributions paid in respect of the year ended 30 September 2006 to
2.0p. Subject to Shareholder approval, the further distribution will be paid on
25 February 2007 to Shareholders on the register at 26 January 2007.
Share repurchase
The Board is conscious that the Company's share price is affected by the
illiquidity of its shares in the market, arising from the fact that investments
in "second hand" VCT shares do not obtain up-front income tax relief. In line
with accepted practice with VCTs, the Company has authorisation to purchase its
own shares. The Company purchased 397,500 shares during the year for
cancellation at an average price of 42.6p per share.
While the Board is keen to continue the policy of buying in shares, it notes
that continuing to buy in shares for cancellation uses up the Company's cash
resources and reduces its size. The Board is therefore carefully monitoring the
level of buybacks.
Annual General Meeting
The seventh Annual General Meeting of the Company will be held at 69 Eccleston
Square, London SW1V 1PJ at 12 noon on 21 February 2007.
Future
In line with the Company's Articles of Association, at the forthcoming Annual
General Meeting ("AGM") a resolution as to whether the Company should continue
as a Venture Capital Trust will be put to Shareholders.
The Board is currently reviewing the options for the future of the Company, but
has not yet reached any firm conclusions. It is however, clear that winding up
the Company is unlikely to be in the interest of many Shareholders, who would
face the possibility of a Capital Gain Tax liability arising from the
crystallisation of Capital Gains they may have deferred when they first invested
in the Company. For that reason the Board recommends that Shareholders vote in
favour of the Resolution 7 at the AGM to continue as a Venture Capital Trust.
Outlook
Your Company is now reasonably small for a venture capital trust and,
consequently, running costs are relatively high.
From this position, it is difficult for the Company to grow substantially, and
therefore, various plans for the future are being reviewed by the Board. While
the ethical status of Shareholders' investment in the Company is clearly
important, the Board considers that retaining the VCT tax status of the
investment is a priority, along with being able to support solid share buyback
and dividend policies thereby providing Shareholders with an exit opportunity
should they want it.
With these factors in mind, the Board is planning for the future of the Company
in a way which I believe will meet the Shareholders' approval, and I will be in
contact with Shareholders early in the New Year.
INCOME STATEMENT
for the year ended 30 September 2006
Year ended 30 September 2006 Year ended 30 September 2005
(as restated)
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
Income 136 - 136 124 - 124
Gains on investments - 114 114 - 461 461
136 114 250 124 461 585
Investment management fees (11) (32) (43) (11) (34) (45)
Other expenses (133) - (133) (142) - (142)
Return on ordinary (8) 82 74 (29) 427 398
activities
before tax
Tax on ordinary activities - - - - - -
Return attributable to
equity shareholders (8) 82 74 (29) 427 398
Return per share (0.1p) 0.8p 0.7p (0.3p) 3.9p 3.6p
The revenue and capital movements in the year relate to continuing operations.
A Statement of Total Recognised Gains and Losses has not been prepared as all
gains and losses are recognised in the Income Statement as noted above.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Year ended Year ended
30 September 2006 30 September 2005
(as restated)
#'000 #'000
Opening shareholders' funds (as originally stated) 5,104 5,094
Adjustment for dividends provided 159 218
Opening shareholders' funds (as restated) 5,263 5,312
Purchase of own shares (170) (120)
Total recognised gains for the year 74 398
Distributions paid (261) (327)
Closing shareholders' funds 4,906 5,263
BALANCE SHEET
at 30 September 2006
2006 2005
(as restated)
#'000 #'000 #'000 #'000
Fixed assets
Investments 4,808 4,939
Current assets
Debtors 62 56
Cash at bank and in hand 67 302
129 358
Creditors: amounts falling due within one (31) (34)
year
Net current assets 98 324
Net assets 4,906 5,263
Capital and reserves
Called up share capital 511 531
Capital redemption reserve 42 22
Special reserve 4,226 3,764
Capital reserve - unrealised (731) -
Capital reserve - realised 855 935
Revenue reserve 3 11
Equity shareholders' funds 4,906 5,263
Net asset value per share 48.0p 49.5p
CASH FLOW STATEMENT
for year ended 30 September 2006
Year ended Year ended
30 September 2006 30 September 2005
#'000 #'000 #'000 #'000
Net cash outflow from operating (49) (22)
activities
Capital expenditure
Purchase of investments (275) (906)
Sale of investments 520 1,556
Net cash inflow from capital expenditure 245 650
Equity distributions paid (261) (327)
Net cash (outflow)/inflow before financing (65) 301
Financing
Purchase of own shares (170) (120)
Net cash outflow from financing (170) (120)
(Decrease)/increase in cash in the year (235) 181
NOTES:
1. Accounting policies
Basis of accounting
The Company has prepared its financial statements under UK Generally Accepted
Accounting Practice ("UK GAAP") and in accordance with the Statement of
Recommended Practice "Financial Statements of Investment Trust Companies"
revised December 2005 ("SORP"). Except as stated in note 2, consistent
accounting polices have been applied to both this year and the prior years'
accounts.
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 a Venture Capital Trust and in
accordance with guidance issued by the Association of Investment Companies ("AIC
"), 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 Alternative
Investment Market ("AIM") are measured using bid prices with illiquidity
discounts applied where deemed appropriate.
In respect of unquoted instruments, fair value is established by using
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 an 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 as follows:
* Expenses which are incidental to the disposal of an investment are
deducted from the disposal proceeds of the investment.
* Expenses are split and presented partly as capital items where a
connection with the maintenance or enhancement of the value of the
investments held can be demonstrated. The Company has adopted the policy of
allocating investment managers fees, 75% to the capital reserve and 25% to
the revenue account as permitted by the SORP. The allocation is in line
with the Board's expectation of long term returns from the Company's
investments in the form of capital gains and income respectively.
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. Changes in accounting policies
The Company is required to comply with a number of new UK Financial
Reporting Standards (FRS), which now represents UK Generally Accepted Accounting
Practice (UK GAAP), in preparing its financial statements for the year ended 30
September 2006. These Standards have been introduced as part of the process of
aligning UK accounting principles with International Accounting Standards.
As required by FRS 21 "Events after the Balance Sheet Date", dividends
to Shareholders are accounted for in the year in which the Company is liable to
pay them rather than in the year in respect of which they are declared. The
results for the year ended 30 September 2006 are not affected by the adoption of
FRS 21 but the comparative figures for the year ended 30 September 2005 have
been restated accordingly. The effect of the adoption of FRS 21 on the reported
net assets of the Company at 30 September 2005 is as follows:
2005
Net Assets
#'000
As previously reported 5,104
Add: proposed dividends not accounted for until paid 159
As restated 5,263
Announcement based on draft accounts
The financial information set out in the announcement does not constitute the
Company's statutory accounts in accordance with s240 CA85 for the year ended 30
September 2006. The statutory accounts for the year ended 30 September 2006
will be finalised on the basis of the financial information presented by the
Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.
A copy of the full Annual Report and financial statements for the year ended 30
September 2006 will be printed and posted to Shareholders. Copies of the full
Annual Report will be available to the public from the registered office of the
Company at 69 Eccleston Square, London SW1V 1PJ and will also be available for
download from www.downing.co.uk .
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKCKPKBDDCBD
Ethical Aim (LSE:EAV)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Ethical Aim (LSE:EAV)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
