RNS Number:7800K
Unicorn AIM VCT PLC
07 May 2003
Unicorn AIM VCT Plc (the "Company")
Interim Statement for the six months ended 31 March 2003
Chairman's Statement
Despite the general decline in the UK Stock Market the Company has made a
positive return during the period under review reflecting the highly selective
investment approach adopted by the Investment Manager.
Qualifying Investments
In the six months to 31 March 2003 the Company made four further qualifying
investments at a cost of #2.4 million bringing the current total to
approximately #6.3 million. Three of the qualifying investments were in existing
AIM listed companies and the fourth was a new admission to AIM. A full list of
all of the qualifying investments held at the period end is given below.
Your Investment Manager continues to adopt a highly selective investment
approach focusing upon established, profitable, cash generative businesses with
sound financial controls and proven management teams. Over the next 12-18 months
the Board is confident that the Company can capitalise upon the lack of new
money raised by the VCT market enabling 70% of the net proceeds raised to be
invested in qualifying securities before the Inland Revenue's deadline of 30
September 2004. Combined with reduced equity valuations this should enable the
Investment Manager to create a portfolio of qualifying investments offering the
prospect of significant capital and income growth.
Results
Net revenue attributable to shareholders for the period was #273,217, a
significant improvement on the previous period, reflecting a full six months
contribution since the 2001/02 fundraising. The total profit on ordinary
activities for the period was #116,452. During the period the Company bought
back 20,500 of its own shares for cancellation at an average price of 70 pence
per share.
The Board's policy is to pay out as high a level of dividends as is possible
either generated from income received or capital profits realised on the sale of
investments. The latter objective is likely to take some time to achieve. From
the interest received from cash on deposit and dividends from the smaller
companies portfolio, the Board is able to recommend an interim dividend of 0.5
pence per share which will be paid on 27 June 2003 to shareholders on the
Register at close of business on 6 June 2003.
Net Asset Value
The net asset value (NAV) at 31 March 2003 was 83.2 pence per share after
providing for an interim dividend of 0.5 pence per share. The marginal increase
in the NAV, before providing for the interim dividend, since the September 2002
year-end is encouraging, particularly in the light of the correction of the FTSE
All-Share and AIM indices, which declined by 5.2% and 9.9% respectively.
Outlook
During the period under review UK equities yielded more than gilts for the first
time since 1959. Historically this has proved to be a clear buying signal and
reflects an unwarranted degree of risk aversion in an environment in which
emotions have largely replaced fundamentals. This has led to the discounting of
any positive corporate progress and the compounding of any hint of a negative
setback. Admittedly, in some sectors of the UK economy, dividends are still
under pressure but over the long-term one would expect dividends to grow.
Remember that nobody rings the bell at the bottom of the market. Corporate
interest in Safeway, Somerfield & Pizza Express combined with record directors'
purchases of their own companies' shares has proven that the Stock Market is
only one indicator of value.
Peter Dicks
Chairman
6 May 2003
Investment Portfolio Summary
as at 31 March 2003
Book cost Valuation % of net assets
by value
#'000 #'000
Qualifying investments
AIM listed investments:
Huveaux plc 1,000 1,560 5.36%
Glisten plc 650 926 3.18%
Lloyds British Testing plc 1,000 781 2.68%
Centurion Electronics plc 500 625 2.15%
Staffing Ventures plc 750 510 1.75%
Intelliplus Group plc 400 401 1.38%
Spring Grove Property Maintenance 250 306 1.05%
plc --------- --------- -----------
4,550 5,109 17.55%
Unlisted investments:
Nectar Taverns plc 1,000 1,000 3.44%
Aludel Limited 750 375 1.28%
---------------------- --------- --------- -----------
1,750 1,375 4.72%
---------------------- --------- --------- -----------
Total qualifying investments 6,300 6,484 22.27%
---------------------- --------- --------- -----------
Non-qualifying investments
AIM listed investments 1,757 1,554 5.34%
Listed UK equities 9,194 7,470 25.67%
Unicorn Free Spirit Fund (OEIC) 3,201 3,046 10.47%
Investment in liquidity funds 10,203 10,203 35.06%
---------------------- --------- --------- -----------
Total non-qualifying investments 24,355 22,273 76.54%
---------------------- --------- --------- -----------
---------------------- --------- --------- -----------
Total investments 30,655 28,757 98.81%
---------------------- --------- --------- -----------
Other assets 637 2.19%
Current liabilities (291) (1.00%)
---------------------- --------- --------- -----------
Net assets 29,103 100.00%
---------------------- --------- --------- -----------
Qualifying investments by activity
AIM listed investments:
Huveaux plc
Media and related services group.
Glisten plc
Manufacturer of chocolate confectionery, sugar based sweets and edible
decorations.
Lloyds British Testing plc
Engineering services including testing and certification, training and
maintenance and repair.
Centurion Electronics plc
Designs and distributes in car audio-visual entertainment systems.
Intelliplus Group plc
Specialist provider of telecom solutions and web-based services.
Staffing Ventures plc
Management of a number of recruitment businesses and their associated back
office support systems.
Spring Grove Property Maintenance plc
Repair and maintenance of social housing on behalf of Registered Social
Landlords and local authorities.
Unlisted investments:
Nectar Taverns plc
Chain of unbranded, managed, freehold, public houses in the North West of
England.
Aludel Limited
National branded chain of ladies-only fitness clubs.
Unaudited Statement of Total Return
(incorporating the revenue account of the Company)
For the 6 months to 31 March 2003
Six months to 31 March 2003
Notes Revenue Capital Total
# # #
Unrealised gains and losses on investments - 172,107 172,107
Realised gains and losses on investments - (78,816) (78,816)
Income 501,467 - 501,467
Investment management fee 3 (85,051) (255,155) (340,206)
Other expenses (138,100) - (138,100)
-------- -------- --- --------
Net return on ordinary activities before taxation 278,316 (161,864) 116,452
Tax on ordinary activities (5,099) 5,099 -
-------- -------- ---- --------
Return on ordinary activities after taxation 273,217 (156,765) 116,452
Dividends 4 (174,696) - (174,696)
-------- -------- ---- --------
98,521 (156,765) 58,244
Return per ordinary share 5 0.78p (0.45)p 0.33p
Period to 31 March 2002
Notes Revenue Capital Total
# # #
Unrealised gains and losses on investments - 744,774 744,774
Realised gains and losses on investments - - -
Income 181,049 - 181,049
Investment management fee 3 (25,111) (75,332) (100,443)
Other expenses (129,074) - (129,074)
-------- --------- ---- --------
Net return on ordinary activities before taxation 26,864 669,442 696,306
Tax on ordinary activities - - -
-------- --------- ---- --------
Return on ordinary activities after taxation 26,864 669,442 696,306
Dividends - - -
-------- --------- ---- --------
26,864 669,442 696,306
Return per ordinary share 5 0.23p 5.76p 5.99p
Period to 30 September 2002
Notes Revenue Capital Total
# # #
Unrealised gains and losses on investments - (3,699,372) (3,699,372)
Realised gains and losses on investments - 131,785 131,785
Income 627,729 - 627,729
Investment management fee 3 (120,162) (360,487) (480,649)
Other expenses (317,095) - (317,095)
-------- -------- --- --------
Net return on ordinary activities before taxation 190,472 (3,928,074) (3,737,602)
Tax on ordinary activities - - -
-------- -------- --- --------
Return on ordinary activities after taxation 190,472 (3,928,074) (3,737,602)
Dividends 4 (174,999) - (174,999)
-------- -------- --- --------
15,473 (3,928,074) (3,912,601)
Return per ordinary share 5 0.79p (16.21)p (15.42)p
Unaudited Balance Sheet
As at 31 March 2003
As at As at As at
31 March 2003 31 March 2002 30 September 2002
Notes
# # #
Fixed assets
Investments 1 18,554,237 12,316,514 16,336,801
Current assets
Debtors and prepayments 166,843 3,283,799 61,163
Other assets 10,202,958 - -
Cash at bank 469,848 9,145,808 13,128,991
10,839,649 12,429,607 13,190,154
Creditors: amounts falling due
within one year
Other creditors 180,627 972,041 202,133
Accruals 109,885 105,674 148,766
(290,512) (1,077,715) (350,899)
Net current assets 10,549,137 11,351,892 12,839,255
Net assets 29,103,374 23,668,406 29,176,056
Share capital and reserves
Share capital 349,792 242,990 349,997
Share premium - 22,729,110 -
Capital redemption reserve 205 - -
Special reserve 32,724,222 32,738,660
Capital reserve - realised (2,186,450) (75,332) (228,702)
Capital reserve - unrealised (1,898,389) 744,774 (3,699,372)
Revenue reserve 113,994 26,864 15,473
Total shareholders' funds 29,103,374 23,668,406 29,176,056
Net asset value per ordinary share 6 83.20p 97.40p 83.36p
Unaudited Statement of Cash Flows
for the 6 months to 31 March 2003
Six months to Period to Period to
31 March 2003 31 March 2002 30 September 2002
(unaudited) (unaudited) (audited)
# # #
Operating activities
Investment income received 395,485 115,558 574,006
Investment management fees paid (340,206) (77,406) (480,649)
Other cash payments (197,804) (47,738) (148,635)
Net cash outflow from operating activities (142,525) (9,586) (55,278)
Investing activities
Purchases of investments (5,276,682) (10,750,172) (20,436,956)
Sales of investments 3,152,537 - 532,568
Net cash outflow from investing activities (2,124,145) (10,750,172) (19,904,388)
Cash outflow before financing and (2,266,670) (10,759,758) (19,959,666)
liquid resource management
Financing
Share capital raised - 19,905,566 33,088,657
Share capital re-purchased (14,643) - -
Dividends paid (174,999) - -
(189,642) 19,905,566 33,088,657
Management of liquid resources
Increase in monies held pending investment (10,202,958) - (13,034,936)
(Decrease)/increase in cash (12,659,270) 9,145,808 94,055
Notes to the unaudited financial statements
1. Principal accounting policies
The following accounting policies have been applied consistently
throughout the period. Full details of principal accounting policies will be
disclosed in the Annual Report.
a) Basis of accounting
The financial statements have been prepared under the historical cost
convention, modified to include the revaluation of fixed asset investments and
in accordance with applicable Accounting Standards in the United Kingdom and
with the Statement of Recommended Practice regarding the Financial Statements of
Investment Trust Companies.
b) Investments
Listed investments and investments quoted on the AIM market are stated
at mid-market prices as at 31 March 2003. Investments in unlisted companies are
valued in accordance with the British Venture Capital Association ("BVCA")
guidelines.
2. Basic revenue and capital items in the Statement of Total Return derive
from continuing operations.
3. In line with the expected long-term split of returns from the investment
portfolio of the Company, the Directors have charged 75% of the investment
management fee to the capital reserve.
4. An interim dividend of 0.5 pence per Ordinary Share will be paid on 27
June 2003 to shareholders on the register on 6 June 2003.
5. Basic revenue return per Ordinary share is based on the net revenue on
ordinary activities after taxation, and is based on 34,995,990 Ordinary shares,
being the weighted average number of Ordinary shares in issue during the period.
6. Net asset value per ordinary share is based on net assets at 31 March
2003, and on 34,979,234 Ordinary shares, being the number of ordinary shares in
issue on that date.
7. The financial information for the six months ended 31 March 2003 and the
period ended 31 March 2002 has not been audited. The accounting policies used by
Unicorn AIM VCT Plc in preparing the interim report are consistent with those
used in preparing the statutory accounts for the period ended 30 September 2002.
The information for the six months ended 31 March 2003 does not
comprise full financial statements within the meaning of Section 240 of the
Companies Act 1985. The financial statements for the period ended 30 September
2002 have been filed with the Registrar of Companies. The auditors have reported
on these financial statements and that report was unqualified and did not
contain a statement under Section 237(2) of the Companies Act 1985.
8. Copies of this statement are being sent to all shareholders. Further
copies are available free of charge from the Company's registered office,
Gossard House, 7-8 Savile Row, London W1S 3PE
This information is provided by RNS
The company news service from the London Stock Exchange
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