Interim Results
03 Luglio 2003 - 5:23PM
UK Regulatory
RNS Number:1411N
Baronsmead VCT 4 PLC
03 July 2003
To: RNS
From: Baronsmead VCT 4 plc
Date: 3 July 2003
Investment Objective
To achieve long-term capital growth and generate tax free dividends for private
investors.
Interim Results - For the six months ending 31 May 2003
* NAV increased by 1.6 per cent to 95.6p
* Interim dividend of 0.9p per share declared
* Investments in period increased to 12 companies
* Total return since launch 2.7 per cent
Philip Dunne, the Chairman, said:
"Investment performance has remained steady over the half year, which has been a
volatile period for quoted equity markets, encompassing as it did the Iraq war
and some market improvement following its swift resolution.
The successful sale of the Company's first investment, AIMS Group announced in
June 2003, subsequent to the end of the reporting period, is an encouraging sign
of what can be achieved in generating value for shareholders.
Results
During the six months to 31 May 2003, the Net Asset Value per share increased by
1.6% to 95.6p per share. An interim dividend of 0.9p per share has been declared
by the Board for payment on 29 August 2003 to shareholders that are on the
register at the close of business on 15 August 2003.
Portfolio activity
Seven new investments were made in the six months to 31 May 2003 spread across
media, IT services and business services sectors. In summary these investments
are as follows:
Air Music and Media - Publishers of budget priced CDs and DVDs I Based in Tring,
this company acquires and licenses music copyrights in the production and sales
to music wholesalers and distributors internationally. This Aim-traded company
raised #750,000 in January 2003 as part payment for an acquisition.
Brownsword - Providers of road accident investigation services I Based in
Manchester, Brownsword provides outsourced services to insurance companies
nation-wide. It raised #4m for a replacement capital transaction in December
2002.
Cardpoint - Operators of independent ATM I Cardpoint is based in Manchester and
owns and/or operates automated teller machines in the UK. It is traded on Aim
and raised #5m towards funding an acquisition in May 2003.
Huveaux - Group of specialist publishing companies I Based in London, Huveaux
has made two acquisitions of Vacher Dod (parliamentary directories) and Lonsdale
(school revision guides). This Aim-traded company raised #7m in March 2003
towards funding the second purchase.
RLA Media - Regional marketing services agency I Based in Bournemouth, RLA
services multinational brands selling through local outlets. It raised #2.4m for
a replacement capital transaction in December 2002.
Universe Group - Retail and information systems I Based in London, Universe has
two main activities providing (1) payment and loyalty systems and (2) operating
bureaux de change outlets. This Aim-traded company raised #1.3m working capital
in May 2003
Xpertise - IT training services I Based in Altrincham, Xpertise has acquired a
number of IT training companies to provide a national network for its customers.
This Aim-traded company raised #2.2m in December 2002 towards funding its latest
purchase. Due to working capital difficulties driven by a market downturn, a
further fund raising took place during June 2003 at a lower valuation to our
entry price.
VCT legislation requires that at least 70% of the value of the Company's net
assets be invested in VCT qualifying holdings. The cumulative amount invested as
at 31 May 2003 was #3.0m with #1.7m being invested in the last six months, which
represented 17% of initial funds raised. To increase the rate of new investment,
ISIS Equity Partners opened a new office in Manchester last autumn and has added
to its team in London and Birmingham.
As a measure of portfolio progress, the latest year-end results of each investee
are compared with previous performance to give a better sense of 'direction of
travel'. Overall 10 of the 12 strong portfolio have reported better or steady
results by 31 May 2003.
Realisation (after period end)
The first investment made by Baronsmead VCT 4 in February 2002 was in AIMS Group
based in Towcester. This environmental consultancy specialises in advice and
audit of the 'built environment' such as supermarket sites. The company was sold
to Alfred McAlpine plc on 6 June 2003, which resulted in a return of twice
cost.This generated an unusually high annual rate of return of over 70%, due to
the relatively short holding period of this single investment, which cannot be
expected across the portfolio as a whole.
Meeting shareholder needs
Since launch, performance measured in terms of total return has been some way
ahead of the FTSE ALL-Share Index. Baronsmead VCT has returned positive 2.7%
since launch compared to a fall of 16.6% in the FTSE All-share index. The
relatively high level of cash balances has helped and this performance
differential improves further if the VCT tax reliefs are also taken into
account.
The Company continues to raise funds with the aim of reaching the original
investment target of #30m. This is in order to increase steadily the size of the
Company both to improve cost efficiencies and enable greater portfolio diversity
in the long term. During the six months to 31 May 2003, the Company raised
#491,000 through additional subscriptions and #27,000 through the Dividend
Reinvestment Scheme. Existing and potential shareholders have the opportunity to
subscribe if they wish either via a series of offer letters or via the Dividend
Reinvestment Scheme.
Outlook
Baronsmead VCT4 intends to build a diversified portfolio of over 30 investments
in qualifying unquoted and Aim-traded companies. There are some signs of
increasing corporate activity from trade purchasers, of which the AIMS Group
transaction is an example, although buoyant economic conditions may take some
years to return.
The Board's focus is on building the level of new investments within our
criteria and we are confident of achieving the required investment qualifying
status. Once companies join the portfolio we aim to create increased shareholder
value from these investments in assisting them to fulfil their growth plans."
Enquiries: David Thorp 0207 506 1100, ISIS Equity Partners
Gary Fraser 0131 465 1000, ISIS Asset Management plc
Unaudited Statement of Total Return (Incorporating the Revenue Account)
Six months to 31 May 2003
Revenue Capital Total
#'000 #'000 #'000
Gains on investments - 392 392
Income 468 - 468
Investment management fee (54) (161) (215)
Other expenses (139) - (139)
Return on ordinary activities
Before tax 275 231 506
Tax on ordinary activities (77) 48 (29)
Return attributable to
Equity shareholders 198 279 477
Dividends in respect of equity shares (181) - (181)
Transfer to reserves 17 279 296
Return per ordinary share:
Basic 1.00p 1.41p 2.41p
Unaudited Statement of Total Return (Incorporating the Revenue Account)
Period from 30 October 2001 to 31 May 2002
Revenue Capital Total
#'000 #'000 #'000
Gains on investments - 50 50
Income 129 - 129
Investment management fee (22) (64) (86)
Other expenses (65) - (65)
Return on ordinary activities
Before tax 42 (14) 28
Tax on ordinary activities (11) 11 -
Return attributable to
Equity shareholders 31 (3) 28
Dividends in respect of equity shares - - -
Transfer to/(from) reserves 31 (3) 28
Return per ordinary share:
Basic 0.37p (0.04p) 0.33p
Unaudited Statement of Total Return (Incorporating the Revenue Account)
Period from 30 October 2001 to 30 November 2002
Revenue Capital Total
#'000 #'000 #'000
Loss on investments - (15) (15)
Income 532 - 532
Investment management fee (75) (224) (299)
Other expenses (199) - (199)
Return on ordinary activities
before tax 258 (239) 19
Tax on ordinary activities (50) 45 (5)
Return attributable to
equity shareholders 208 (194) 14
Dividends in respect of equity shares (192) - (192)
Transfer to/(from) reserves 16 (194) (178)
Return per ordinary share:
Basic 1.49p (1.39p) 0.10p
Unaudited Balance Sheet
As at As at As at
31 May 31 May 30 November
2003 2002 2002
#'000 #'000 #'000
Fixed assets
Unquoted investments 2,261 543 925
Quoted on the Alternative Investment Market 1,141 250 441
Listed fixed interest investments 8,503 - 10,686
______ ______ ______
11,905 793 12,052
Current assets
Debtors 609 634 260
Cash at bank and on deposit 7,253 17,167 6,670
_____ ______ _____
7,862 17,801 6,930
Creditors (amounts falling due within one year) (586) (870) (573)
_____ _____ _____
Net current assets 7,276 16,931 6,357
______ ______ ______
Total assets less current liabilities 19,181 17,724 18,409
______ ______ ______
Financed by
Equity shareholders' funds 19,181 17,724 18,409
______ _______ _______
Net asset value per share 95.63p 95.18p 94.12p
Summarised Unaudited Statement of Cash Flows
Six months Period from Period from
to 30 October 2001 30 October 2001
31 May 2003 to 31 May 2002 to 30 Nov 2002
#'000 #'000 #'000
Net cash inflow/(outflow) from operating activities 75 (6) (39)
Capital expenditure and financial investment 574 (743) (12,067)
Equity dividends paid (118) - (74)
______ ______ ______
Net cash inflow/(outflow) before financing 531 (749) (12,180)
Financing 52 17,916 18,850
______ ______ ______
Increase in cash 583 17,167 6,670
______ ______ ______
Reconciliation of net cash flow to movement in net cash
Increase in cash 583 17,167 6,670
Opening net cash 6,670 - -
______ ______ ______
Net cash at 31 May / 30 November 7,253 17,167 6,670
______ ______ ______
Reconciliation of operating profit to net cash flow from operating activities
Net revenue return before taxation 275 42 258
Investment management fee charged to capital (161) (64) (224)
Increase in other debtors (48) (120) (236)
Increase in other creditors 9 136 163
______ ______ ______
Net cash inflow/(outflow) from operating activities 75 (6) (39)
______ ______ ______
Notes
1. The unaudited interim results which cover the six months to 31
May 2003 have been prepared in accordance with applicable accounting
standards adopting the Statement of Recommended Practice for Financial
Statements of Investment Trust Companies.
2. Earnings for first six months should not be taken as a guide to the results
for the full year.
3. Return per ordinary share is based on a weighted average of 19,832,808
ordinary shares in issue (31 May 2002 - 8,488,356, 30 November 2002 -
13,950,465).
4. During the six months ended 31 May 2003 the Company issued 519,566 ordinary
shares and bought for cancellation 20,000 ordinary shares at a cost of
#17,103. There were 20,058,694 ordinary shares in issue at 31 May 2003 (31
May 2002 - 18,621,786, 30 November 2002 - 19,559,128).
5. The interim dividend of 0.9 pence per ordinary share will be paid on 29
August 2003 to ordinary shareholders on the register on 15 August 2003.
6. These are not statutory accounts in terms of Section 240 of the Companies Act
1985 and are unaudited. The full audited accounts for the period to 30
November 2002, which were qualified, have been lodged with the Registrar of
Companies. No statutory accounts in respect of any period after 30 November
2002 have been reported on by the Company's auditors or delivered to the
Registrar of Companies.
7. Copies of the Interim Report, which has been reviewed by the Company's
auditors, will be mailed to shareholders and available from the Registered
Office of the Company at 100 Wood Street, London EC2V 7AN.
This information is provided by RNS
The company news service from the London Stock Exchange
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