We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Puma High | LSE:PMH | London | Ordinary Share | GB00B53Y1331 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 37.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
TIDMPMH
Puma High Income VCT plc
Annual report and accounts 2015
HIGHLIGHTS
-- Fully deployed in a diverse range of high quality loans and equities.
-- 35p per share of dividends paid since inception, 7p during the year,
equivalent to a 10% per annum tax-free running yield on net investment.
-- NAV per share up 0.67p, now 94.91p (both after adding back dividends).
-- As envisaged in the original Prospectus, resolutions will be put forward
for a winding up of the VCT at the end of its planned life.
CHAIRMAN'S STATEMENT
Introduction
I am pleased to present the Company's fifth Annual Report which is for
the year ended 31 March 2015.
The Company was launched and began investing in Spring 2010, with a
planned life of five years. In this, its fifth year, the process of
realising the Company's qualifying investments and returning capital to
investors advanced significantly.
Dividends
As envisaged in the Company's prospectus, the Company has for the fifth
calendar year in succession paid a dividend of 7p per ordinary share,
equivalent to a 10% tax-free running yield on shareholder's net
investment.
Results
Net asset value per share ("NAV") during the year grew by 0.67p per
share (after adding back dividends paid in the year) to 94.91p as at 31
March 2015 (after adding back dividends paid to date) or 59.91p after
dividends.
Investments
At the start of the year, the Company had just over GBP8.5 million
invested, representing 95% of its net asset value, in a mixture of
qualifying and non-qualifying investments whilst maintaining our VCT
qualifying status. These investments are primarily in asset-backed
businesses and projects providing a gross annual return of c6% on the
basis of current deployments and investment performance. Details of the
Company's portfolio of investments can be found in the Investment
Manager's report, below.
VCT qualifying status
PricewaterhouseCoopers LLP ("PwC") provides the board and the investment
manager with advice on the ongoing compliance with HMRC rules and
regulations concerning VCTs. PwC also assists the Investment Manager in
establishing the status of investments as qualifying holdings.
Change in Board
Harold Paisner, who served as a Director from the flotation of the
Company, stepped down from the Board on 23 September 2014. On behalf of
the Board and shareholders, I would like to thank Harold for his
contributions.
Annual General Meeting and Proposal to Wind-Up the Company
The Annual General Meeting of the Company will be held at Bond Street
House, 14 Clifford Street, London W1S 4JU on 30 September 2015 at 11.00
a.m. Notice of the Annual General Meeting and Form of Proxy will be
inserted within the annual accounts.
The Company has now just passed its fifth anniversary. In accordance
with the plans set out in the Company's Prospectus, the Board expects to
convene a general meeting of the Company in the autumn of this year, at
which resolutions will be proposed to place the Company into members'
solvent liquidation. If these are passed, liquidators will be appointed
and the Company will seek to de-list from the London Stock Exchange.
Once such resolutions have been passed by shareholders, for a maximum
period of three years many of the VCT rules, including the 70 per cent
qualifying rule, are suspended whilst the Company retains its VCT status
of tax free distribution to UK taxpayers. The intention is to return the
balance of the capital in an orderly way. Disposals will be planned
appropriately to enable further substantial distributions by the end of
2015 and any balance in 2016.
Ray Pierce
Chairman
31 July 2015
INVESTMENT MANAGER'S REPORT
Introduction
In its fifth year, the Company continues to make good progress. It is
now beginning the process of returning capital to shareholders through
the realisation of investments whilst maintaining its qualifying status.
We believe our portfolio is well positioned to deliver attractive
returns to shareholders within the Company's expected remaining time
horizon.
Qualifying investments
The Company's investment of GBP920,000 (as part of GBP3.1 million across
the Puma VCTs) into Brewhouse and Kitchen Limited continues to perform
well. Brewhouse and Kitchen, which owns and operates pubs with
micro-breweries onsite, is managed by two highly experienced pub sector
professionals and our funding has facilitated the acquisition of
freehold pubs and the roll-out of the brand. The investment is largely
in the form of senior debt, secured with a first charge over the
business and each site acquired. Funds can be utilised to a maximum 65%
loan-to-value ratio, and have produced an attractive return to the
Company. During the year, Brewhouse and Kitchen opened a further four
units and now operates five units across locations in London, Bristol
and the South East. The portfolio is trading well and the investment is
expected to be repaid during the last quarter of 2015.
As previously reported, Isaacs Trading Limited and Huntly Trading
Limited (in each of which the Company had invested GBP700,000) engaged
in a number of projects to provide project management and contracting
services as members of SKPB Services LLP. These include the
construction of nine new houses and 12 new flats at a construction known
as The Albany, in Barnes, south west London. The total cost of the
project is c.GBP15 million and the developers have already pre-sold four
of the flats at prices in line with a gross development value for the
project of c.GBP30 million. The project is expected to complete in Q1
2016.
SKPB Services LLP has also been engaged in the construction of units as
accommodation and supported housing for psychiatric and learning
disabled service users, and their care-workers. These projects included
building 16 units in Bolton and 12 units in Timperley. Both these
projects have recently completed.
The Company's investments of GBP880,000 into each of two contracting
companies, Frederica Trading Limited and Glenmoor Trading Limited are
progressing well. Frederica and Glenmoor (as members of a limited
liability partnership with other contracting companies) are currently
providing contracting services in connection with supported living
developments in Clacton and Bury. The Clacton project is expected to
complete during the summer whilst the Bury project is expected to
conclude during the spring of 2016.
As reported in the Company's interim report, during the year the Company
realised its investment in SIP Communications plc, in which it invested
GBP700,000. We had provided GBP210,000 against this investment in prior
years to reflect its trading difficulties, but we are pleased to report
that we were able to reduce the provision and the eventual realisation
was close to the original investment. Over its life the Company
recovered GBP637,000 from this investment.
As previously reported, during the year Mirfield Contracting Limited, in
which the Company had invested GBP860,000, completed its project
providing project management services to a development of town houses in
West Yorkshire. The project generated attractive returns for Mirfield
Contracting which will benefit the Company when its investment is repaid
later this year.
The Company's GBP1.4 million investment alongside other Puma VCTs into
Saville Services Limited, a contracting company, is performing well.
Saville Services is currently providing contracting services on the
construction of a private detached housing development in the
countryside outside Aberdeen, under contract to Churchill Homes Limited,
a longstanding Aberdeenshire developer. The project is expected to
conclude during the last quarter of 2015. As reported in the Company's
interim report, during the year Saville Services also completed the
development of 20 apartments for supported living for psychiatric and
learning disabled service users in Grimsby, North East Lincolnshire.
Non-qualifying investments
As previously reported, we have adopted a strategy for the
non-qualifying portfolio of moving away from quoted investments and
instead investing in secured non-qualifying loans offering a good yield
with hopefully limited downside risk.
The Company's GBP1.25 million loan (as part of a GBP4 million financing
with other Puma VCTs) to Puma Brandenburg Finance Limited, a subsidiary
of Puma Brandenburg Holdings Limited, continues to perform well. The
loan is secured on a portfolio of flats in the middle class area of
central Berlin, Germany and, in accordance with the terms of the loan,
GBP389,000 was repaid during the period. Since the loan was made, the
property market in this area of Berlin has been very strong, further
enhancing the excellent security we have for this loan which is due for
final repayment at the end of this year.
As previously reported, the Company had extended a GBP860,000 loan
(through Buckhorn Lending Limited) which, together with loans from other
Puma VCTs, provided a GBP4 million revolving credit facility to Ennovor
Trading 1 Limited. The facility provided working capital for the
purchase of used cooking oil for conversion into bio-diesel and
attracted a substantial interest rate for utilised funds and a lower
rate for non-utilised funds. The ultimate borrower owned a large oil
refining plant near Birkenhead and was processing cooking oil to sell to
petrol and diesel retailers who are obligated to include bio-fuels in
their offerings. The facility was structured to mitigate risks by being
capable of being drawn only once back-to-back purchase and sale
contracts had been entered into with approved counterparties. In
November 2014, following a major default by one of those counterparties,
Ennovor Trading 1 Limited was placed into administration. The Company
has recovered its principal in full (plus some interest) from the
proceeds of the administration to date and there are good prospects that
the Company can recover the balance of the interest.
During the year, the Company extended a GBP700,000 loan to various
entities within the Citrus Group (through an affiliate, Valencia Lending
Limited) which, together with loans from other vehicles also managed and
advised by us, formed part of a GBP10 million revolving credit facility
to provide working capital to the Citrus PX business. Citrus PX operates
a property part exchange service facilitating the rapid purchase of
properties for developers and homeowners. The facility provided a series
of loans to Citrus PX, with the benefit of a first charge over a
geographically diversified portfolio of residential properties on
conservative terms and is performing well.
Outlook
We are pleased to have substantially invested the Company's funds in
both qualifying and non-qualifying secured investments and are working
on improving the liquidity of the portfolio wherever possible whilst
maintaining an appropriate risk adjusted return. We continue to focus on
the monitoring of our investments and are focused on exits. The
objective remains to achieve an orderly winding up of the Company's
assets at the end of its life, subject to shareholder approval at the
forthcoming General Meeting.
Shore Capital Limited
31 July 2015
Investment Portfolio Summary
As at 31 March 2015
Valuation as a % of
Valuation Cost Gain / (loss) Net Assets
GBP'000 GBP'000 GBP'000
As at 31 March 2015
Qualifying
Investments
Brewhouse & Kitchen
Limited 920 920 - 11%
Saville Services
Limited 1,400 1,400 - 17%
Mirfield Contracting
Limited 860 860 - 11%
Huntly Trading
Limited 700 700 - 9%
Isaacs Trading
Limited 700 700 - 9%
Frederica Trading
Limited 880 880 - 11%
Glenmoor Trading
Limited 880 880 - 11%
Total Qualifying
Investments 6,340 6,340 - 79%
Non-Qualifying
Investments
Valencia Lending
Limited 700 700 - 9%
Puma Brandenburg
Finance Limited 674 674 - 8%
Total Non-Qualifying
investments 1,374 1,374 - 17%
Total Investments 7,714 7,714 - 96%
Balance of Portfolio 477 477 4%
Net Assets 8,191 8,191 - 100%
Of the investments held at 31 March 2015, 91 per cent are incorporated
in England and Wales and 9 per cent incorporated in Guernsey.
Percentages have been calculated on the valuation of the assets at the
reporting date.
Income Statement
For the year ended 31 March 2015
Year ended 31 March 2015 Year ended 31 March 2014
Note Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gain on investments 8 (c) - 55 55 - - -
Income 2 372 - 372 495 - 495
372 55 427 495 - 495
Investment management fees 3 (45) (135) (180) (50) (150) (200)
Other expenses 4 (155) - (155) (161) - (161)
(200) (135) (335) (211) (150) (361)
Profit/(loss) on ordinary activities before taxation 172 (80) 92 284 (150) 134
Tax on ordinary activities 5 - - - - - -
Profit/(loss) on ordinary activities after tax attributable
to equity shareholders 172 (80) 92 284 (150) 134
Basic and diluted
Return/(loss) per Ordinary Share (pence) 6 1.26p (0.59p) 0.67p 2.08p (1.10p) 0.98p
The total column represents the profit and loss account and the revenue
and capital columns are supplementary information.
All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued in
the year.
No separate Statement of Total Recognised Gains and Losses is presented
as all gains and losses are included in the Income Statement.
Balance Sheet
As at 31 March 2015
Registered No: 07036487
As at As at
Note 31 March 2015 31 March 2014
GBP'000 GBP'000
Fixed Assets
Investments 8 7,714 8,598
Current Assets
Debtors 9 532 356
Cash 97 273
629 629
Creditors - amounts falling due within one year 10 (151) (170)
Net Current Assets 478 459
Total Assets less Current Liabilities 8,192 9,057
Creditors - amounts falling due after more than one
year (including convertible debt) 11 (1) (1)
Net Assets 8,191 9,056
Capital and Reserves
Called up share capital 12 137 137
Capital reserve - realised (989) (699)
Capital reserve - unrealised - (210)
Revenue reserve 9,043 9,828
Equity Shareholders' Funds 8,191 9,056
Net Asset Value per Ordinary Share 13 59.91p 66.24p
Diluted Net Asset Value per Ordinary Share 13 59.91p 66.24p
The financial statements were approved and authorised for issue by the
Board of Directors on 30 July 2015 and were signed on their behalf by:
Raymond Pierce
Chairman
31 July 2015
Cash Flow Statement
For the year ended 31 March 2015
Year
ended 31 Year ended
March 31 March
2015 2014
GBP'000 GBP'000
Profit on ordinary activities before taxation 92 134
Gain on investments (55) -
Increase in debtors (176) (120)
(Decrease)/increase in creditors (19) 61
Net cash (outflow)/inflow from operating activities (158) 75
Capital expenditure and financial investment
Purchase of investments (700) -
Proceeds from sale of investments and repayments of
loans and loan notes 1,639 342
Net cash inflow from capital expenditure and financial
investment 939 342
Equity dividend paid (957) (957)
Decrease in cash in the year (176) (540)
Reconciliation of net cash flow to movement in net
funds
Decrease in cash in the year (176) (540)
Net funds at start of year 273 813
Net funds at end of year 97 273
Reconciliation of Movements in Shareholders' Funds
For the year ended 31 March 2015
Called up Capital Capital
share reserve - reserve - Revenue
capital realised unrealised reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at
1 April
2013 137 (549) (210) 10,501 9,879
Return after
taxation
attributable
to equity
shareholders - (150) - 284 134
Dividend paid - - - (957) (957)
Balance as at
31 March
2014 137 (699) (210) 9,828 9,056
Return after
taxation
attributable
to equity
shareholders - (80) - 172 92
Realisation
of
revaluation
from prior
period - (210) 210 - -
Dividend paid - - - (957) (957)
Balance as at
31 March
2015 137 (989) - 9,043 8,191
Distributable reserves comprise: Capital reserve-realised, Capital
reserve-unrealised and the Revenue reserve. At the year end
distributable reserves totalled GBP8,054,000 (2014: GBP8,919,000).
The Capital reserve-realised includes gains/losses that have been
realised less related costs. The Capital reserve-unrealised shows the
gains/losses on investments still held by the company.
1. Accounting Policies
Basis of Accounting
Puma High Income VCT plc ("the Company") was incorporated and is
domiciled in England & Wales. The financial statements have been
prepared under the historical cost convention, modified to include the
revaluation of investments held at fair value, and in accordance with UK
Generally Accepted Accounting Practice ("UK GAAP") and the Statement of
Recommended Practice, 'Financial Statements of Investment Trust
Companies and Venture Capital Trusts' ("SORP") revised in 2009.
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 profit for the year of
GBP92,000 as per the Income Statement on page 28 is the measure that the
Directors believe is appropriate in assessing the Company's compliance
with certain requirements set out in s274 of the Income Tax Act 2007.
Investments
All investments have been designated as fair value through profit or
loss, and are initially measured at cost which is the best estimate of
fair value. A financial asset is designated in this category if acquired
to be both managed and its performance is evaluated on a fair value
basis with a view to selling after a period of time in accordance with a
documented risk management or investment strategy. All investments held
by the Company have been managed in accordance with the investment
policy set out on page 14. The investments are measured at subsequent
reporting dates at fair value. Listed investments and investments traded
on AIM are stated at bid price at the reporting date. Unquoted
investments are stated at Directors' valuation with reference to the
International Private Equity and Venture Capital Valuation Guidelines
("IPEVC") and in accordance with FRS26 "Financial Instruments:
Measurement":
-- Investments which have been made within the last twelve months or where
the investee company is in the early stage of development will usually be
valued at the price of recent investment except where the company's
performance against plan is significantly different from expectations on
which the investment was made in which case a different valuation
methodology will be adopted.
-- Investments in redeemable equity interests and debt instruments will
usually be valued by applying a discounted cash flow methodology based on
expected future returns of the investment.
-- Alternative methods of valuation such as net asset value may be applied
in specific circumstances if considered more appropriate.
Realised surpluses or deficits on the disposal of investments are taken
to realised capital reserves, and unrealised surpluses and deficits on
the revaluation of investments are taken to unrealised capital reserves.
It is not the Company's policy to exercise control over investee
companies. Therefore the results of the companies are not incorporated
into the revenue account except to the extent of any income accrued.
Cash at bank and in hand
Cash at bank and in hand comprises cash on hand and demand deposits.
Equity instruments
Equity instruments are classified according to the substance of the
contractual arrangements entered into. An equity instrument is any
contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. Equity instruments issued by the
Company are recorded at proceeds received net of issue costs.
1. Accounting Policies (continued)
Income
Dividends receivable on listed equity shares are brought into account on
the ex-dividend date. Dividends receivable on unlisted equity shares are
brought into account when the Company's right to receive payment is
established and there is no reasonable doubt that payment will be
received. Interest receivable is recognised wholly as a revenue item on
an accruals basis.
Performance fees
Upon its inception, the Company agreed performance fees payable to the
Investment Manager, Shore Capital Limited, and members of the investment
management team at 20 per cent of the aggregate excess of amounts
realised over GBP1 per Ordinary Share returned to Ordinary shareholders.
This incentive will only be exercisable once the holders of Ordinary
Shares have received distributions of GBP1 per share. The performance
fee is accounted for as an equity-settled share-based payment.
FRS 20 Share-Based Payment requires the recognition of an expense in
respect of share-based payments in exchange for goods or services.
Entities are required to measure the goods or services received at their
fair value, unless that fair value cannot be estimated reliably in which
case that fair value should be estimated by reference to the fair value
of the equity instruments granted.
At each balance sheet date, the Company estimates that fair value by
reference to any excess of the net asset value, adjusted for dividends
paid, over GBP1 per share in issue at the balance sheet date. Any change
in fair value in the year is recognised in the Income Statement with a
corresponding adjustment to equity.
Expenses
All expenses (inclusive of VAT) are accounted for on an accruals basis.
Expenses are charged wholly to revenue, with the exception of:
-- expenses incidental to the acquisition or disposal of an investment which
are charged to capital; and
-- the investment management fee, 75 per cent of which has been charged to
capital to reflect an element which is, in the directors' opinion,
attributable to the maintenance or enhancement of the value of the
Company's investments in accordance with the Board's expected long-term
split of return; and
-- the performance fee which is allocated proportionally to revenue and
capital based on the respective contributions to the Net Asset Value.
Taxation
Corporation tax is applied to profits chargeable to corporation tax, if
any, at the applicable rate for the year. The tax effect of different
items of income/gain and expenditure/loss is allocated between capital
and revenue return on the marginal basis as recommended by the SORP.
Deferred tax is recognised in respect of all timing differences that
have originated but not reversed at the balance sheet date, where
transactions or events that result in an obligation to pay more, or
right to pay less, tax in the future have occurred at the balance sheet
date. This is subject to deferred tax assets only being recognised if it
is considered more likely than not that there will be suitable taxable
profits from which the future reversal of the underlying timing
differences can be deducted. Timing differences are differences arising
between the Company's taxable profits and its results as stated in the
financial statements which are capable of reversal in one or more
subsequent years. Deferred tax is measured on a non-discounted basis at
the tax rates that are expected to apply in the years in which timing
differences are expected to reverse, based on tax rates and laws enacted
or substantively enacted at the balance sheet date.
1. Accounting Policies (continued)
Reserves
Realised losses and gains on investments, transaction costs, the capital
element of the investment management fee and taxation are taken through
the Income Statement and recognised in the Capital Reserve - Realised on
the Balance Sheet. Unrealised losses and gains on investments and the
capital element of the performance fee are taken through the Income
Statement and recognised in the Capital Reserve - Unrealised.
Debtors
Debtors include accrued income which is recognised at amortised cost,
equivalent to the fair value of the expected balance receivable.
Dividends
Final dividends payable are recognised as distributions in the financial
statements when the Company's liability to make payment has been
established. The liability is established when the dividends proposed by
the Board are approved by the Shareholders. Interim dividends are
recognised when paid.
2. Income
Year ended 31 March 2015 Year ended 31 March 2014
GBP'000 GBP'000
Income from investments
Income from investments 370 490
370 490
Other income
Bank deposit income 2 5
372 495
3. Investment Management Fees
Year ended 31 March 2015 Year ended 31 March 2014
GBP'000 GBP'000
Shore Capital Limited 180 200
Shore Capital Limited (Shore Capital) was appointed as the Investment
Manager of the Company for an initial period of five years, which can be
terminated by not less than twelve months' notice, given at any time by
either party, on or after the fifth anniversary. The Board is satisfied
with the performance of the Investment Manager. Under the terms of this
agreement Shore Capital is paid an annual fee of 2 per cent of the Net
Asset Value payable quarterly in arrears calculated on the relevant
quarter end NAV of the Company. These fees are capped, the Investment
Manager having agreed to reduce its fee (if necessary to nothing) to
contain total annual costs (excluding performance fee and trail
commission) to within 3.5 per cent of Net Asset Value. Total annual
costs this year were 3.5% of the average Net Asset Value (2014: 3.5%).
4. Other expenses
Year ended Year ended
31 March 31 March
2015 2014
GBP'000 GBP'000
Administration - Shore Capital Fund Administration
Services Limited 31 30
Directors' Remuneration 56 63
Social security costs 1 1
Auditor's remuneration for statutory audit 22 21
Insurance 5 5
Legal and professional fees 12 12
Trail commission 21 25
Other expenses 7 4
155 161
Shore Capital Fund Administration Services Limited provides
administrative services to the Company for an aggregate annual fee of
0.35 per cent of the Net Asset Value of the Fund, payable quarterly in
arrears.
The total fees paid or payable (excluding VAT and employers NIC) in
respect of individual Directors for the year are detailed in the
Directors' Remuneration Report on page 19. The Company had no employees
(other than Directors) during the year. The average number of
non-executive Directors during the year was three (2014: four).
The Auditor's remuneration of GBP18,000 (2014: GBP17,500) has been
grossed up in the table above to be inclusive of VAT.
5. Tax on Ordinary Activities
Year
ended 31 Year ended
March 31 March
2015 2014
GBP'000 GBP'000
UK corporation tax charged to revenue reserve - -
UK corporation tax charged to capital reserve - -
UK corporation tax charge for the year - -
Factors affecting tax charge for the year
Profit on ordinary activities before taxation 92 134
Tax charge calculated on profit on ordinary activities
before taxation at the applicable rate of 20% 18 27
Non taxable capital income (11) -
Utilisation of tax losses brought forward (7) (27)
- -
The income statement shows the tax charge allocated to revenue and
capital. Capital returns are not taxable as VCTs are exempt from tax on
realised capital gains subject to continuing compliance with the VCT
regulations.
Excess management expenses of GBP83,000 (2014: GBP118,000) are available
to be carried forward and set off against future taxable income. No
deferred tax assets have been recognised as the timing of their recovery
cannot be foreseen with any certainty. Due to the Company's status as a
Venture Capital Trust and the intention to continue meeting the
conditions required to obtain approval in the foreseeable future, the
Company has not provided deferred tax on any capital gains and losses
arising on the revaluation or disposal of investments.
6. Basic and diluted return/(loss) per Ordinary Share
Year ended 31 March 2015
Revenue Capital Total
Return/(loss) for the year (GBP'000) 172 (80) 92
Weighted average number of shares 13,671,870 13,671,870 13,671,870
Return/(loss) per share 1.26p (0.59)p 0.67p
Year ended 31 March 2014
Revenue Capital Total
Return/(loss) for the year (GBP'000) 284 (150) 134
Weighted average number of shares 13,671,870 13,671,870 13,671,870
Return/(loss) per share 2.08p (1.10)p 0.98p
The total return/(loss) per ordinary share is the sum of the revenue
return and capital return.
7. Dividends
The Directors do not propose a final dividend in relation to the year
ended 31 March 2015 (year ended 31 March 2014: nil). An interim dividend
of 7p per Ordinary Share was paid on 19 February 2015 (2014: 7p per
Ordinary Share paid on 21 February 2014). The dividend payment totalled
GBP957,000 (2014: GBP957,000).
8. Investments
Historic cost Market value Historic cost Market value
as at 31 March as at 31 March as at 31 March as at 31 March
(a) Summary 2015 2015 2014 2014
GBP'000 GBP'000 GBP'000 GBP'000
Qualifying
venture
capital
investments 6,340 6,340 6,885 6,675
Non qualifying
investments 1,374 1,374 1,923 1,923
7,714 7,714 8,808 8,598
Qualifying
venture Non
capital qualifying
(b) Movements in investments investments investments Total
GBP'000 GBP'000 GBP'000
Opening value 6,675 1,923 8,598
Purchases at cost - 700 700
Disposal proceeds and repayment of loans and loan
notes (390) (1,249) (1,639)
Realised gains on disposals 55 - 55
Valuation at 31 March 2015 6,340 1,374 7,714
Book cost at 31 March 2015 6,340 1,374 7,714
Net unrealised gains at 31 March 2015 - - -
Valuation at 31 March 2015 6,340 1,374 7,714
(c) Gains on investments
The gains on investments for the year shown in the Income Statement on
page 28 is analysed as follows:
Year ended 31 March Year ended 31 March
2015 2014
GBP'000 GBP'000
Realised gains on
disposal 55 -
55 -
8. Investments - continued
(d) Quoted and unquoted Market value as at 31 Market value as at 31
investments March 2015 March 2014
GBP'000 GBP'000
Quoted investments - -
Unquoted investments 7,714 8,598
7,714 8,598
(e) Significant interests
Further details of investments are disclosed in the Investment Portfolio
Summary on pages 7 to 12 of the Annual Report. The Company exercises
significant influence over investee companies.
These investments have not been accounted for as associates or joint
ventures since FRS 9: Associates and Joint Ventures and the SORP require
that Investment Companies treat all investments held as part of their
investment portfolio in the same way, even those over which the Company
has significant influence.
9. Debtors
As at 31 March 2015 As at 31 March 2014
GBP'000 GBP'000
Prepayments and accrued income 532 356
10. Creditors - amounts falling due within one year
As at 31 March 2015 As at 31 March 2014
GBP'000 GBP'000
Accruals and deferred income 151 170
11. Creditors - amounts falling due after more than
one year (including convertible debt)
As at 31 March 2015 As at 31 March 2014
GBP'000 GBP'000
Loan notes 1 1
On 11 November 2009, the Company issued Loan Notes in the amount of
GBP1,000 to a nominee on behalf of the Investment Manager and members of
the investment management team. The Loan Notes accrue interest of 5 per
cent per annum.
The Loan Notes entitle the Investment Manager and members of the
investment management team to receive a performance related incentive of
20 per cent of the aggregate amounts realised by the Company in excess
of GBP1 per Ordinary Share. The Shareholders will be entitled to the
balance. This incentive, to be effected through the issue of shares in
the Company, will only be exercised once the holders of Ordinary Shares
have received distributions of GBP1 per share (whether capital or
income). The performance incentive structure provides a strong
incentive for the Investment Manager to ensure that the Company performs
well, enabling the Board to approve distributions as high and as soon as
possible.
In the event that distributions to the holders of Ordinary Shares
totalling GBP1 per share have been made, the Loan Notes will convert
into sufficient Ordinary Shares to represent 20 per cent of the enlarged
number of Ordinary Shares.
The amount of the performance fee will be calculated as 20 per cent of
the excess of the net asset value (adjusted for dividends paid) over
GBP1 per issued share.
12. Called Up Share Capital
As at 31 March 2015 As at 31 March 2014
GBP'000 GBP'000
13,671,870 ordinary shares of 1p
each 137 137
13. Net Asset Value per Ordinary Share
As at As at
31 March 2015 31 March 2014
Net assets 8,191,000 9,056,000
Shares in issue 13,671,870 13,671,870
Dilutive effect of performance fee - -
13,671,870 13,671,870
Net asset value per share
Basic 59.91p 66.24p
Diluted 59.91p 66.24p
14. Financial Instruments
The Company's financial instruments comprise its investments, cash
balances, debtors and certain creditors. The fair value of all of the
Company's financial assets and liabilities is represented by the
carrying value in the Balance Sheet. The Company held the following
categories of financial instruments.
As at 31 March 2015 As at 31 March 2014
GBP'000 GBP'000
Assets at fair value through profit
or loss
Investments managed through Shore
Capital Limited 7,714 8,598
Loans and receivables
Cash at bank and in hand 97 273
Interest, dividends and other
receivables 532 356
Other financial liabilities
Financial liabilities measured at
amortised cost (152) (171)
8,191 9,056
14. Financial Instruments (continued)
Management of risk
The main risks the Company faces from its financial instruments are
market price risk, being the risk that the value of investment holdings
will fluctuate as a result of changes in market prices caused by factors
other than interest rate or currency movements, liquidity risk, credit
risk and interest rate risk. The Board regularly reviews and agrees
policies for managing each of these risks. The Board's policies for
managing these risks are summarised below and have been applied
throughout the year.
Credit risk
Credit risk is the risk that the counterparty to a financial instrument
will fail to discharge an obligation or commitment that it has entered
into with the Company. The Investment Manager monitors counterparty
credit risk on an ongoing basis. The carrying amount of financial assets
best represents the maximum credit risk exposure at the balance sheet
date. The Company's financial assets and maximum exposure to credit
risk is as follows:
As at 31 March 2015 As at 31 March 2014
GBP'000 GBP'000
Investments in loans and loan notes 4,604 5,488
Cash at bank and in hand 97 273
Interest, dividends and other
receivables 532 356
5,233 6,117
The majority of the cash held by the Company at the year end is split
between a U.K. bank and a BBB rated South African bank. Bankruptcy or
insolvency of either bank may cause the Company's rights with respect to
the receipt of cash held to be delayed or limited. The Board monitors
the Company's risk by reviewing regularly the financial position of the
banks and should it deteriorate significantly the Investment Manager
will, on instruction of the Board, move the cash holdings to another
bank.
Credit risk associated with interest, dividends and other receivables
are predominantly covered by the investment management procedures.
Investments in loans and loan notes comprise a fundamental part of the
Company's venture capital investments, therefore credit risk in respect
of these assets is managed within the Company's main investment
management procedures.
Market price risk
The Company's strategy on the management of market price risk is driven
by the Company's investment policy as outlined in the Strategic Report
on page 14. The management of market price risk is part of the
investment management process. The portfolio is managed with an
awareness of the effects of adverse price movements through detailed and
continuing analysis, with an objective of maximising overall returns to
shareholders.
Holdings in unquoted investments may pose higher price risk than quoted
investments. Some of that risk can be mitigated by close involvement
with the management of the investee companies along with review of their
trading results.
100 per cent of the Company's investments at 31 March 2015 are unquoted
investments (2014: 100% unquoted).
14. Financial Instruments (continued)
Liquidity risk
Details of the Company's unquoted investments are provided in the
Investment Portfolio summary on page 7. By their nature, unquoted
investments may not be readily realisable, the Board regularly consider
exit strategies for these investments. As at the year end, the Company
had no borrowings other than loan notes amounting to GBP1,000 (2014:
GBP1,000) (see note 11).
The Company's liquidity risk associated with investments is managed on
an ongoing basis by the Investment Manager in conjunction with the
Directors and in accordance with policies and procedures in place as
described in the Strategic Report. The Company's overall liquidity risks
are monitored on a quarterly basis by the Board.
The Company maintains sufficient investments in cash to pay accounts
payable and accrued expenses.
Cash flow interest rate risk
The Company has exposure to interest rate movements primarily through
its cash deposits and loan notes which track either the Bank of England
base rate or LIBOR.
At the year end and throughout the year, the Company's only liability
subject to interest rate risk were the Loan Notes of GBP1,000 at 5.0 per
cent (see note 11).
Interest rate risk profile of financial assets
The following analysis sets out the interest rate risk of the Company's
financial assets.
As at 31 March Average Period until
2015 Rate status interest rate maturity Total
GBP'000
Cash at bank -
RBS Floating 0.2% - 18
Cash at bank -
Investec Fixed 0.4% 32 day notice 64
Cash at bank -
Lloyds Fixed 0.2% - 15
Loans and loan
notes Floating 14.2% 34 months 3,930
Loans and loan
notes Fixed 5.00% 3 months 674
Balance of Non-interest
assets bearing - 3,642
8,343
As at 31 March Average Period until
2014 Rate status interest rate maturity Total
GBP'000
Cash at bank -
RBS Floating 0.2% - 130
Cash at bank -
Investec Fixed 0.8% 32 day notice 128
Cash at bank -
Lloyds Fixed 0.2% - 15
Loans and loan
notes Floating 14.1% 76 months 4,425
Loans and loan
notes Fixed 5.00% 15 months 1,063
Balance of Non-interest
assets bearing - 3,466
9,227
14. Financial Instruments (continued)
Fair value hierarchy
Fair values have been measured at the end of the reporting period as
follows:-
As at 31
March Level 1 Level 2 Level 3
2015 'Quoted prices' 'Observable inputs' 'Unobservable inputs' Total
At fair
value
through
profit
and loss
(GBP'000) - - 7,714 7,714
As at 31
March Level 1 Level 2 Level 3
2014 'Quoted prices' 'Observable inputs' 'Unobservable inputs' Total
At fair
value
through
profit
and loss
(GBP'000) - - 8,598 8,598
Financial assets measured at fair value are disclosed using a fair value
hierarchy that reflects the significance of the inputs used in making
the fair value measurements, as follows:-
-- Level 1 - Unadjusted quoted prices in active markets for identical assets
('quoted prices');
-- Level 2 - Inputs (other than quoted prices in active markets for
identical assets) that are directly or indirectly observable for the
asset ('observable inputs'); or
-- Level 3 - Inputs that are not based on observable market data
('unobservable inputs').
The Level 3 investments have been valued in line with the Company's
accounting policies and IPEVC guidelines. Further details are provided
in the significant investments section on pages 8 to 12 of the annual
report.
Reconciliation of fair value for level 3 financial instruments held at
the year end:
Unquoted shares Loans and loan notes Total
GBP'000 GBP'000 GBP'000
Balance as at 1 April 2013 3,110 5,830 8,940
Repayments of loans and loan
notes - (342) (342)
Balance as at 31 March 2014 3,110 5,488 8,598
Repayments of loans and loan
notes (55) (1,584) (1,639)
Realised gains 55 - 55
Additions - 700 700
Balance as at 31 March 2015 3,110 4,604 7,714
15. Capital management
The Company's objectives when managing capital are to safeguard the
Company's ability to continue as a going concern, so that it can provide
an adequate return to shareholders by allocating its capital to assets
commensurate with the level of risk.
By its nature, the Company has an amount of capital, at least 70% (as
measured under the tax legislation) of which is and must remain,
invested in the relatively high risk asset class of small UK companies
within three years of that capital being subscribed.
The Company accordingly has limited scope to manage its capital
structure in the light of changes in economic conditions and the risk
characteristics of the underlying assets. Subject to this overall
constraint upon changing the capital structure, the Company may adjust
the amount of dividends paid to shareholders, issue new shares, or sell
assets to maintain a level of liquidity to remain a going concern.
The Board has the opportunity to consider levels of gearing, however
there are no current plans to do so. It regards the net assets of the
Company as the Company's capital, as the level of liabilities is small
and the management of those liabilities is not directly related to
managing the return to shareholders. There has been no change in this
approach from the previous period.
16. Contingencies, Guarantees and Financial Commitments
There were no commitments, contingencies or guarantees of the Company at
the year end (2014: nil).
17. Controlling Party
In the opinion of the Directors there is no immediate or ultimate
controlling party.
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Puma High Income VCT PLC via Globenewswire
HUG#1942856
1 Year Puma High Chart |
1 Month Puma High Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
