Final Results
22 Juin 2007 - 6:19PM
UK Regulatory
RNS Number:8992Y
Noble VCT PLC
22 June 2007
Chairman's Statement
I have pleasure in presenting the Annual Report and Accounts for Noble VCT plc
for the year ended 31 March 2007.
This has been a period during which the directors have continued to pursue a
strategy intended to progress the Company towards the previously stated
objective of attaining a net asset value (NAV) of at least #30m. New funds
amounting to #4.7m were raised in the year, against this the cost of dividend
payments and share buy backs amounted to #1.5m, resulting in an overall growth
in NAV of #3.2m.
Summary of Financial Highlights
In the year to 31 March 2007, the NAV per share rose by 0.55p (0.64%), prior to
the payment of dividends during the year. The Company made material progress
during the year in a number of other important areas:
* Made new and follow on investments in 34 companies amounting to #9m.
* Realised gains of #1.4m from investments which cost #4.4m (excluding
reclassification of losses provisioned in prior years written off during the
year)
* Paid dividends during the year amounting to 3.25p per share.
* Repurchased 616,641 shares for #445,146 under the terms of the Company's
continuing share buy back scheme.
* Increased total net assets by #3.2m to #25.7m, after taking into account both
the payment of dividends and the repurchase of shares.
Review of Performance
Noble VCT is a generalist fund and invests widely in both the AIM and unquoted
sectors. The directors consider that this diversity is an important element in
relation to the management of risk and the achievement of consistently above
average returns. During the year to 31 March 2007, #1.0m of profits were
realised from the quoted portfolio; this was particularly encouraging because
over the same period the AIM All Share Index dropped 4.4%. There were no
unquoted exits during the year, however, the Company received #0.4m in earn out
payments and warranty retentions following the previously reported exits of DRI
Limited and Voxar Limited. During the year, reductions in valuations amounting
to #1.1m were made in respect of unrealised losses on two investments,
Radioscape #250k and Aquilo #871k. It is disappointing to have to make such
provisions but it is inevitable that young companies are exposed to significant
reductions in their value if they fail to achieve short term growth targets. NFM
is working closely with the management teams of both these companies and is
optimistic that they will return to their previous growth track and that this
will lead to a recovery in their valuations. Despite these setbacks, the overall
performance of the Company in the year was to achieve a growth in NAV per share
of 0.64%, prior to the payment of dividends
In line with our previously stated desire to be in a position to distribute
investment profits as they are realised, the directors paid dividends during the
year amounting to 3.25p per share. These payments were supported by the realised
profits on investments of #1.4m already mentioned. However, unrealised losses
within the portfolio at the end of March 2007, meant that after the dividend
payments of 3.25p there was a reduction in NAV per share during the year of
2.7p.This is a reflection of the underlying confidence which the directors have
in the longer term potential within our investment portfolio. It remains our
intention to seek to distribute investment profits as they are realised,
provided this is not likely, in our opinion, to act against the longer term
interest of shareholders.
Dividend Payment
In the two months since the Company's financial year end, I am pleased to say
that the portfolio has performed satisfactorily and NAV per share at the end of
May was 83.06p. The increase of 0.36p in NAV per share since the year end
includes #631k of realised gains and against this background, I am pleased to
announce that the directors have agreed to the payment of an interim dividend of
2p per share to shareholders on the register at 13 July 2007, the payment date
for this distribution will be 13 August 2007.
VCT Legislation
The Chancellor of the Exchequer made a number of changes to the qualification
rules for VCTs in his 2007 Budget, some of which we welcome, however, the new
rules for investing money raised in future tax years will make it significantly
less attractive for existing VCTs to raise further new money from investors.
Specifically, restricting investment into companies with less than 50 employees
and limiting the overall amount invested in any company to no more than #2m in
the year ending on the date of investment, will materially alter the risk
profile of future VCTs. These changes do not affect Noble VCT's future
investment strategy, however, they do mean that further significant growth in
the Company's NAV is most likely to be achieved by improved investment
performance and possible inorganic growth, as opposed to raising new funds.
Noble Fund Managers (NFM)
In the last year, Noble VCT has been an upper quartile performer within the VCT
sector (based on comparisons undertaken by Trustnet and other independent
commentators). The directors believe that the increased size of the fund, its
current portfolio and investment policy combine to provide our fund adviser NFM
with the opportunity to enhance the Company's performance still further. The
directors and NFM share the ambition for the fund to become a consistent upper
quartile performer when measured by total return. We have been fortunate over
recent years to have Charlie McMicking as our lead fund adviser and
discretionary manager of the quoted portfolio. He has recently been joined at
NFM by Dr Paul Jourdan who brought with him two funds that he has been managing,
one of which is amongst the highest performing AIM VCTs over the past two years.
This increase in VCT funds, as well as Paul's proven investment ability, should
advance NFM's capabilities in the sector. In addition, NFM is actively seeking
to enhance its existing expertise in relation to unquoted investment.
Collectively, these actions should assist NFM in their ambition to provide the
highest level of service to funds entrusted to their care. The directors are
encouraging and supporting NFM in these endeavours in the expectation that they
will enable NFM to meet the demands which go with being able to provide enhanced
returns on the Company's investments.
Composition of the Board
In January this year, Tom Maxwell joined the Company as a non-executive
director. I would like formally to welcome Tom to the board, we have already
benefited from his experience and expertise and we look forward to working with
him for many years to come. Tom, a member of the Chartered Institute of Bankers
in Scotland, and a member of the Society of Investment Professionals, has
considerable fund management and investment trust expertise which he gained
during a career with Martin Currie Investment Management and Ivory & Sime
Investment Management plc, among others. John Andrews, who has been a director
of the Company since its inception, has indicated that he will not be standing
for re-election at the forthcoming Annual General Meeting. John has had a
considerable amount of commercial experience and his calm analytical approach to
all issues relating to his duties as a director has been of immense value to me
and the board in general. John has been the epitome of what a Company should
expect of a senior independent director and on behalf of the directors and all
connected with the Company, I should like to thank him for his substantial
contribution and wish him and his wife Jill well in the future.
Outlook
The directors share NFM's view that the current outlook for the UK economy in
general and in particular those company's in which Noble VCT invests, is sound.
Inevitably, events may overtake us but we remain positive about the potential
for our portfolio and consequently for the performance of the Company. The
directors and NFM recognise that investment performance is the fundamental guide
to the success of the Company overall and we share a determination for Noble VCT
to become a consistent upper quartile performer when measured by total return.
In conclusion, I remain happy to receive comments from shareholders, either via
my email at j.greg@btconnect.com or by letter addressed to me at the Company's
offices detailed at the end of this report.
John Gregory
Chairman
22 June 2007
Income Statement
(incorporating the Revenue Account*)
for the year ended 31 March 2007
Year ended 31 March 2007 Year ended 31 March 2006
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
------- ------- ------- ------- ------- --------
Gains/(losses) on
investments - 408 408 - (320) (320)
Income 448 - 448 273 - 273
Investment management
fees (149) (443) (592) (113) (338) (451)
Other expenses (261) - (261) (255) - (255)
------- ------- ------- ------- ------- --------
Return on ordinary
activities before
taxation 38 (35) 3 (95) (658) (753)
Tax on ordinary - - - - - -
activities ------- ------- ------- ------- ------- --------
Return on ordinary 38 (35) 3 (95) (658) (753)
activities after tax
for the financial year ------- ------- ------- ------- ------- --------
Return per A Share of 0.12p (0.11)p 0.01p (0.42)p (2.91)p (3.33)p
10p
Notes
Basic revenue return per A Share is based on the return from ordinary activities
after taxation of #38,069 and on 31,369,688 A Shares, being the weighted average
number of A Shares in issue during the year (2006: losses of #94,439 and
22,599,347 shares).
The capital return per A Share is based on net realised capital gains of #43,190
(2006: losses of #465,930) and on net unrealised capital losses of #78,214
(2006: losses of #192,568) and on 31,369,688 A Shares, being the weighted
average number of A Shares in issue during the year (2006: 22,599,347).
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, securities, loans and bank deposits.
*The revenue column in this statement is the profit and loss account of the
Company.
Distributions paid and proposed
2007 2006
#'000 #'000
------ ------
Dividends on A Shares
Interim dividend for the year ended 31 March 2007 of 2.25p per
share paid on 21 April 2006 713 -
Interim dividend for the year ended 31 March 2007 of 1p per
share paid on 20 December 2006 (2006: 1.75p per share) 314 412
------ ------
1,027 412
------ ------
Reconciliation of movements in shareholders' funds
The movements during the year of the assets attributable to the shares were as
follows:
2007 2006
#'000 #'000
-------- ------
Opening shareholders' funds 22,449 18,524
Purchase of own shares (445) (420)
Capital subscribed 4,864 5,836
Expenses of issue (including stamp duty) (135) (326)
Total recognised gains and losses for the year 3 (753)
Dividends appropriated in the year (1,027) (412)
-------- -------
Closing shareholders' funds 25,709 22,449
-------- -------
Balance Sheet
as at 31 March 2007
As at As at
31 March 31 March
2007 2006
#'000 #'000
-------- --------
Fixed assets 20,139 16,528
-------- --------
Investments 20,139 16,528
Current assets
Debtors 303 67
Cash at bank 5,877 6,052
-------- --------
6,180 6,119
Current liabilities
-------- --------
Creditors: amounts falling due within one (610) (198)
year
-------- --------
Net current assets 5,570 5,921
-------- --------
Net assets 25,709 22,449
-------- --------
Capital and reserves
Called up share capital 3,108 2,629
Capital redemption reserve 199 137
Share premium account 13,239 9,049
Special reserve 12,575 15,045
Capital reserve (realised) 990 57
Capital reserve (unrealised) (4,013) (4,044)
Revenue reserves (389) (424)
-------- --------
Equity shareholders' funds 25,709 22,449
-------- --------
-------- --------
Net asset value per A Share 82.70p 85.40p
Cash Flow Statement
for the year ended 31 March 2007
Year ended 31 March 2007 Year ended 31 March 2006
#'000 #'000 #'000 #'000
Operating activities
Investment income
received - qualifying 261 21
Deposit and similar
interest received - 129 241
non qualifying
Investment management
fees paid (583) (433)
Secretarial fees paid (76) (24)
Other cash payments (167) (191)
------- --------
Net cash outflow from
operating activities (436) (386)
Taxation 33 -
Financial investment
Sale of AIM and other
quoted investments 5,594 4,416
------- --------
Purchase of unquoted
investments and (8,623) (9,083)
investments quoted on AIM
------- --------
Net cash outflow from
financial investment (3,029) (4,667)
Equity dividends paid
Dividends paid (1,027) (373)
------- --------
Net cash outflow from
equity dividends paid (1,027) (373)
------- -------
Net cash outflow before
use of liquid (4,459) (5,426)
resources and financing
Financing
New share issues 4,864 5,797
Repurchase of own shares (445) (420)
Share issue expenses
(including stamp duty) (135) (326)
------- --------
Net cash inflow from
financing 4,284 5,051
------- -------
Decrease in cash (175) (375)
------- -------
The financial information set out in these statements does not constitute the
Company's statutory accounts for the year ended 31 March 2007 or the year ended
31 March 2006 but it is derived from these accounts. Statutory accounts for 2006
have been delivered to Registrar of Companies and those for 2007 will be
delivered following the Company's Annual General Meeting. The auditors have
reported on those accounts; their reports were unqualified and did not contain
statements under Section 237(2) or (3) of the Companies Act 1985.
The Annual Report will be circulated by post to all shareholders and copies will
be available to members of the public from the Company's registered office at No
1 Colmore Square, Birmingham B1 6AA by 6th July 2007.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR OKBKDABKDAAB
Noble Vct (LSE:NBV)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Noble Vct (LSE:NBV)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
