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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Abdn.Gwth.Opps | LSE:AGW | London | Ordinary Share | GB0031153769 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 57.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMAGW
RNS Number : 6116O
Aberdeen Growth Opps VCT PLC
10 March 2009
Aberdeen Growth Opportunities VCT PLC
Annual Financial Report for the year ended 30 November 2008
The Directors announce the audited Annual Financial Report for the year ended 30
November 2008 as follows.
Chairman's Statement
The credit crunch, which first became evident in the latter half of 2007, has
now translated into both a financial and economic problem affecting the broader
economy in the UK and globally. The market values of many companies now bear no
relation to their underlying trading as the prospect of falling economic
activity indicators hangs over the markets. This has particularly affected
smaller companies and the AIM market where, despite sound underlying earnings,
the value of many of our holdings has fallen in line with market sentiment and
this has inevitably led to a reduction in Net Asset Value. However, the majority
of investments are in private companies which are insulated from the major
movements in market value which affect quoted companies.
The major features of the year are:
- Total Return on Ordinary shares 94.65p per share at year end, down 17.8% over
the year
- Net Asset Value (NAV) of Ordinary shares at year end of 80.4p per share
- Total Return per C Share 99.4p at year end, up 0.2% over the year
- NAV of C Shares at year end of 95.2p
- Two successful exits from unlisted companies during the year, generating net
gains of 3.0p per Ordinary share and 1.5p per C Share.
- Net realised losses from AIM stocks of 0.9p per Ordinary share for the year
- Dividends proposed of 2.7p per Ordinary share in respect of the year
Performance
The Total Return per Ordinary Share at 30 November 2008 was 94.65p, a decrease
of 17.8% over the equivalent figure at November 2007, while for the C Share pool
it was almost unchanged at 99.4p compared with 99.2p a year previously,
an increase of 0.2% reflecting the differing mix of the two portfolios. The most
important measure for a VCT is the total return, being the long term record of
dividend payments out of income and capital gains combined with the current NAV.
In the short term, the NAV on its own is a less important measure of the
performance as the majority of the underlying investments are long-term in
nature and not readily realisable.
At 30 November 2008, the NAV per Ordinary share was 80.4p and the NAV per C
Share was 95.2p.
C Share Conversion
The C Shares will convert into Ordinary shares based on the NAVs of the
respective pools as at 30 November 2008. This means that each C Shareholder will
receive 1.185 new Ordinary shares for every C Share they hold. Certificates for
the new shares will be issued in March 2009 in accordance with the provisions of
the Articles.
VCT Qualifying Status
The Company is required to meet the 70% qualifying test on the combined pools
from 1 December 2008 and continuously thereafter. The Board regularly review the
status of the criteria that have to be met to continue to qualify as a VCT and I
am pleased to confirm that all tests continue to be met.
Dividends
The Board is proposing a final dividend of 2.7p per Ordinary Share to be paid on
30 April 2009 to shareholders on the register on 27 March 2009. The dividend
will be paid after the conversion date for the C Shares and will therefore be
paid to the enlarged Ordinary Shareholder base. For C Shareholders, following
conversion, the proposed dividend is equivalent to the 3.2p per C Share paid in
respect of the year ended 30 November 2007. For the Ordinary Shareholders, the
proposed dividend is lower than the 4.5p paid in respect of 2007, which reflects
the Board's intentions of conserving cash in order to enable the Company to take
advantage of opportunities to enhance the portfolio by investing in attractive,
high-yielding businesses and of supporting existing portfolio companies in the
current economic downturn. It remains the Board's intention, over the economic
cycle, to target an average dividend rate of 4.0p per annum or 50% of the uplift
in NAV, whichever is the greater, subject to maintaining the NAV at around 100p
per share and the availability of distributable reserves.
Investment Strategy
The strategy remains to build a diversified portfolio of unlisted and AIM
investments which offer strong growth prospects and therefore the opportunity
for capital gains in the medium to longer term, while maintaining VCT
qualifying status. The Company does not currently utilise gearing in making its
investments but the Board may elect to take advantage on a selective basis of
its ability to borrow up to 15% of Net Asset Value in pursuit of the
investment strategy.
Your Board is obliged under the revised Listing Rules to ensure that this and
subsequent reports carry additional information on investment policy, in
particular statements concerning asset mix, the spread of risk and
maximum exposures. This information is contained in the Directors' Report and in
the tabular analyses of the two portfolios.
Valuation Process
Investments held by Aberdeen Growth Opportunities VCT in unquoted companies are
valued in accordance with the International Private Equity and Venture Capital
Valuation Guidelines.
Investments quoted or traded on a recognised stock exchange including the
Alternative Investment Market (AIM) are valued at their bid price.
Portfolio Developments
There were two further successful exits from companies in the Ordinary Share
pool unlisted portfolio during the course of the year one, of which was also
held by the C Share pool. The net gain from these realisations amounted to 3.0p
per Ordinary Share and 1.5p per C Share. Details of all investments and
divestments during the course of the year are shown in the table on pages 8 and
9.
There was little opportunity in view of the state of the AIM market to actively
trade holdings and net losses of GBP83,000 arose from the disposal of one
holding where little upside was perceived. The FTSE AIM All-share index fell by
an unprecedented 61.8% over the course of the year.
Co-Investment Scheme of the Manager
The co-investment scheme which allows executive members of the Manager to invest
alongside the Company continued in operation during the year. The scheme
operates through a nominee company which invests alongside the Company in each
and every transaction made by the Company, including any follow-on
investments. The scheme more closely aligns the interests of the executives and
the Company's shareholders while providing an incentive to enable the Manager to
retain the existing skills and capacity of its investment team in a highly
competitive market.
VAT Recovery
Following pressure from the VCT industry, and in particular through the good
offices of the AIC of which the Company is a member, the payment of VAT on
management fees has ceased with effect from 1 October 2008. Under guidelines
issued by HMRC, VAT paid over a number of years prior to the cessation can be
reclaimed. Your Board is currently in discussion with the Manager about the
total amount that might be recovered, and the sum we are confident in
recovering for the Company, amounting to GBP193,000 has been reflected in the
accounts to 30 November.
The Future
The unlisted investments held by the Company are generally trading well and are
not directly affected by the turmoil which has been experienced in the quoted
markets. The banks are reducing their exposure to commercial lending and the
portfolio of unlisted companies may have to manage within their existing
facilities. Based on their current trading, this should not cause significant
problems to our portfolio and the Company does have cash to assist where
appropriate. The Manager is represented on the majority of our investee
companies' boards and is therefore closely involved with their management in
dealing with the current challenging market conditions.
There has been little activity in the AIM market in recent months and it seems
likely that it will be some time before new opportunities to invest in companies
seeking an IPO on that market become available. The Manager will continue to
focus on investing in unlisted companies which offer excellent growth prospects
as the Manager believes these companies will offer the opportunity for
profitable realisations in due course when the markets enjoy greater stability.
Gregor Michie
Chairman
9 March 2009
Investment Manager's Review
Investment Activity
During the year ended 30 November 2008, twelve significant unlisted and AIM
investments were completed and a total of GBP6.8 million was invested of which
GBP2.3 million was from the Ordinary Share pool and GBP4.5 million was from the
C Share pool. At the year end, the portfolio stood at 74 unlisted and AIM
investments at a total cost of GBP19.7 million. Since 30 November 2008, three
further new investments and one follow-on investment have been made at a cost of
GBP1.7 million.
The following investments have been completed during the year.
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Investment | Date | Activity | Investment | Website |
| | | | cost GBP'000 | |
+-----------------+--------+----------------------+---------------------+------------------------------+
| | | |Original | C | |
| | | | pool | Share | |
| | | | | Pool | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Unlisted | | | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Armannoch | Nov-08 | Provider of food | 300 | 400 | |
| Investments | | products | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Atlantic Foods | Feb-08 | Supplier of food | 75 | 447 | www |
| | | services | | | atlanticfoods.co.uk |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Broomco (4136) | Jul-08 | Provider of CCTV | 31 | 41 | www.id-supportservices.co.uk |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Essential | Jul-08 | Provider of video | 24 | - | www.essential-viewing.com |
| Viewing Systems | | streaming software | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Money Plus | Dec-07 | Provider of debt | 125 | 585 | www.moneyplusgroup.co.uk |
| | | management services | | | |
| | | to individuals | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Nessco | Jun-08 | Telecommunication | 224 | 348 | www.nesscogroup.com |
| | | services provider | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| PSCA | May-08 | Producer of | 32 | - | www.publicservice.co.uk |
| | | publications aimed | | | |
| | | at public sector | | | |
| | | officials | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| TC | May-08 | Marketing and | 174 | 299 | www.tccommunications.co.uk |
| Communications | | communications | | | |
| | | services agency | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Training For | Apr-08 | Provision of | 298 | 423 | www.trainingfortravel.com |
| Travel | | assessment, tuition | | | |
| | | and or training in | | | |
| | | travel services | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Transys | Dec-07 | Provider of | 249 | 398 | www.transysprojects.ltd.uk |
| Holdings | | engineering services | | | |
| | | to the rail industry | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Valkyrie | Nov-08 | Provider of food | 300 | 400 | |
| Capital | | products | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| | | | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Total Unlisted | | | 1,832 | 3,341 | |
| investment | | | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| | | | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| AIM/PLUS | | | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Animalcare | Jan-08 | Markets and sells a | - | 245 | www.animalcare.co.uk |
| | | wide range of | | | |
| | | pharmaceutical and | | | |
| | | other premium | | | |
| | | products and | | | |
| | | services to vets and | | | |
| | | vet wholesalers | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Betbrokers | Mar-08 | Provider of | 126 | 126 | www.betbrokers.com |
| | | independent betting | | | |
| | | brokerage services | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Brookwell | Jun-08 | Close-ended | 15 | - | www.brookwelllimited.com |
| | | investment company | | | |
| | | which has been | | | |
| | | established to | | | |
| | | acquire AIM | | | |
| | | Securities and | | | |
| | | Listed Securities | | | |
| | | from financial | | | |
| | | institutions | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Essentially | May-08 | Provider of sports | | 133 | www.essentiallygroup.com. |
| | | marketing, media | | | |
| | | management and | | | |
| | | professional | | | |
| | | services | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| OPG Power | May-08 | Develops, owns and | 49 | 49 | www.opgpower.org |
| Ventures | | manages power | | | |
| | | generation plants in | | | |
| | | India | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Optare | Jul-08 | Bus manufacturer and | 98 | 147 | www.optare.com |
| | | low emission | | | |
| | | technology group | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Plastics |Dec-07 | Manufacturer of | 74 | 281 | www.plasticscapital.com |
| Capital | | plastic components | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Praesepe |Jul-08 | Consolidator of | 98 | 148 | www.praesepeplc.com |
| | | high-volume gaming | | | |
| | | businesses in the | | | |
| | | United Kingdom and | | | |
| | | Europe | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| | | | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Total AIM/PLUS | | | 460 | 1,129 | |
| investment | | | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| | | | | | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
| Total | | | 2,292 | 4,470 | |
+-----------------+--------+----------------------+----------+----------+------------------------------+
Aberdeen Growth Opportunities VCT has co-invested with Aberdeen Income and
Growth VCT, Aberdeen Growth VCT I, Aberdeen Growth Opportunities VCT 2, Talisman
First Venture Capital Trust, Gateway VCT and Guinness Flight Venture Capital
Trust in some or all of the above transactions and is expected to continue to
do so with these as well as other clients of the Manager. The advantage is that,
together, these companies are able to underwrite a wider range and size of
transaction than would be the case on a stand alone basis.
Portfolio Developments
There were two successful realisations from the unlisted portfolio during the
year: PSCA International was sold for proceeds of GBP264,000 generating a gain
of GBP126,000 for the Original Pool and ID Support Services was sold for
proceeds of GBP428,000 and GBP575,000 realising gains of GBP169,000 and
GBP227,000 for the Original and C Share pools respectively. In each case there
is a small element of deferred consideration which may give rise to further
proceeds for the Company. In addition, repayments of loan stock were received
from a number of investee companies as shown on the table below. During the
reporting period seven substantial new unlisted investments and five new AIM
investments have been added to the portfolio.
Conditions in the AIM market were extremely challenging throughout the year with
the FTSE AIM All-share Index declining by 61.8% over the year as first the
financial crisis and then the underlying economic conditions affected sentiment.
Opportunities to trade the portfolio were therefore much reduced as were the
number of new IPOs in which to invest. The opportunity was taken to sell one
holding, Optare, where we perceived limited future upside, which resulted in a
loss for the Original Pool. There was a limited amount of trading in other
stocks but gains of GBP30,000 and GBP25,000 were generated for the Original Pool
and C Share Pool respectively. The AIM quoted businesses in which we are
invested are generally continuing to trade profitably and in line with
expectations and their market values bear little or no relation to their
underlying profit and cash generation capability.
Investments in the unlisted portfolio are generally trading well and their
values are not directly affected by the turmoil in the quoted markets and in
many cases increased valuations have been achieved.
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| | | | Ordinary Share Pool | C Share Pool |
+---------------+----------+-----------+---------------------------------+---------------------------------+
| | Date |Complete/ | Cost of | Sales | Realised | Cost | Sales | Realised |
| | first | Partial | shares |Proceeds |Gain/Loss | of |Proceeds |Gain/Loss |
| |invested | Exit |disposed | | | shares | | |
| | | | of | | |disposed | | |
| | | | | | | of | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| | | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| Unlisted | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| Homelux | 2006 | Partial | 50 | 50 | - | 69 | 69 | - |
| Nenplas | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| ID | 2007 | Complete | 259 | 428 | 169 | 348 | 575 | 227 |
| Support | | | | | | | | |
| Services | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| Lime | 2007 | Partial | 241 | 241 | - | 306 | 306 | - |
| Investments | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| PSCA | 2002 | Partial | 138 | 264 | 126 | - | - | - |
| International | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| Others | | | 137 | 28 | (109) | 16 | 16 | - |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| | | | 825 | 1,011 | 186 | 739 | 966 | 227 |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| AIM | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| Craneware | 2007 | Partial | 33 | 55 | 22 | 51 | 83 | 32 |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| Synarbor | 2004 | Complete | 127 | 14 | (113) | - | - | - |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| Others | | | 287 | 293 | 6 | 260 | 254 | (6) |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| | | | 447 | 362 | (85) | 311 | 337 | 26 |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| | | | | | | | | |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
| Total | | | 1,272 | 1,373 | 101 | 1,050 | 1,303 | 253 |
+---------------+----------+-----------+----------+----------+-----------+----------+----------+-----------+
Outlook
We anticipate that it will be some time before the number of IPOs in the AIM
market recovers to previous levels and therefore there will be few opportunities
to invest in that market in the coming year. Conversely and while there are
still some difficulties evident in securing appropriate bank funding for new
unlisted investments, we will continue to invest selectively in well managed
private companies where we perceive excellent growth prospects and therefore
medium term financial gain. One of the issues facing many investors will be the
availability of bank debt in the coming year. We have invested in businesses
where the level of gearing is significantly less than that of much larger
companies and in some cases without recourse to any bank debt. Consequently, we
do not anticipate encountering the same degree of difficulty in renewing debt
facilities as those providing funding to larger, more highly leveraged
investments.
Income Statement for the year ended 30 November 2008
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Loss on | 9 | - | (2,103) | (2,103) | - | (201) | (201) | - | (2,304) | (2,304) |
| investments | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Income | 2 | 403 | - | 403 | 702 | - | 702 | 1,105 | - | 1,105 |
| from | | | | | | | | | | |
| investments | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Other | 2 | 23 | - | 23 | 20 | - | 20 | 43 | - | 43 |
| income | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Investment | 3 | (37) | (147) | (184) | (63) | (252) | (315) | (100) | (399) | (499) |
| management | | | | | | | | | | |
| fees | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Other | 5 | (139) | - | (139) | (135) | - | (135) | (274) | - | (274) |
| expenses | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Net | | 250 | (2,250) | (2,000) | 524 | (453) | 71 | 774 | (2,703) | (1,929) |
| return/(loss) | | | | | | | | | | |
| on ordinary | | | | | | | | | | |
| activities | | | | | | | | | | |
| before | | | | | | | | | | |
| taxation | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Tax on | 6 | (47) | 47 | - | (99) | 59 | (40) | (146) | 106 | (40) |
| ordinary | | | | | | | | | | |
| activities | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Return | | 203 | (2,203) | (2,000) | 425 | (394) | 31 | 628 | (2,597) | (1,969) |
| attributable | | | | | | | | | | |
| to equity | | | | | | | | | | |
| shareholders | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Return | | 2.08 | (22.61) | (20.53) | 2.84 | (2.63) | 0.21 | | | |
| per | | | | | | | | | | |
| Ordinary | | | | | | | | | | |
| share | | | | | | | | | | |
| (pence) | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
Reconciliation of Movements in Shareholders' Funds
For the year ended 30 November 2008
+---------------------------+--------+-----------+-----------+-----------+
| | | Ordinary | C | |
| | | | Ordinary | |
+---------------------------+--------+-----------+-----------+-----------+
| | | Shares | Shares | Total |
+---------------------------+--------+-----------+-----------+-----------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+--------+-----------+-----------+-----------+
| | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| Opening Shareholders' | | 10,001 | 14,538 | 24,539 |
| funds | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| Movements in the year | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| Total profit/(loss) for | | (2,000) | 31 | (1,969) |
| the year | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| Dividends paid - revenue | 7 | (171) | (329) | (500) |
+---------------------------+--------+-----------+-----------+-----------+
| | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| Closing Shareholders' | | 7,830 | 14,240 | 22,070 |
| funds | | | | |
+---------------------------+--------+-----------+-----------+-----------+
Income Statement for the year ended 30 November 2007
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Loss on | 9 | - | 457 | 457 | - | 334 | 334 | - | 791 | 791 |
| investments | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Income | 2 | 392 | - | 392 | 698 | - | 698 | 1,090 | - | 1,090 |
| from | | | | | | | | | | |
| investments | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Other | 2 | 41 | - | 41 | 21 | - | 21 | 62 | - | 62 |
| income | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Investment | 3 | (59) | (235) | (294) | (82) | (331) | (413) | (141) | (566) | (707) |
| management | | | | | | | | | | |
| fees | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Other | 5 | (102) | - | (102) | (136) | - | (136) | (238) | - | (238) |
| expenses | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Net | | 272 | 222 | 494 | 501 | 3 | 504 | 773 | 225 | 998 |
| return/(loss) | | | | | | | | | | |
| on ordinary | | | | | | | | | | |
| activities | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| before | | | | | | | | | | |
| taxation | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Tax on | 6 | (48) | 76 | 28 | | | | | | |
| ordinary | | | | | | | | | | |
| activities | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Return | | 224 | 298 | 522 | 410 | 66 | 476 | 634 | 364 | 998 |
| attributable | | | | | | | | | | |
| to equity | | | | | | | | | | |
| shareholders | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Return | | 2.30 | 3.06 | 5.36 | 2.74 | 0.44 | 3.18 | | | |
| per | | | | | | | | | | |
| Ordinary | | | | | | | | | | |
| share | | | | | | | | | | |
| (pence) | | | | | | | | | | |
+---------------+-------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
A Statement of Total Recognised Gains and Losses has not been prepared as all
gains and losses are recognised in the Income Statement.
All items in the above statement are derived from continuing operations. The
Company has only one class of business and derives its income from investments
made in shares, securities and bank deposits.
The total column of this Statement is the Profit and Loss Account of the
Company.
Reconciliation of Movements in Shareholders' Funds
For the year ended 30 November 2007
+---------------------------+--------+-----------+-----------+-----------+
| | | Ordinary | C | |
| | | | Ordinary | |
+---------------------------+--------+-----------+-----------+-----------+
| | | Shares | Shares | Total |
+---------------------------+--------+-----------+-----------+-----------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+--------+-----------+-----------+-----------+
| | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| Opening Shareholders' | | 10,210 | 14,362 | 24,572 |
| funds | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| Movements in the year | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| Total profit/(loss) for | | 522 | 476 | 998 |
| the year | | | | |
+---------------------------+--------+-----------+-----------+-----------+
| Dividends paid - revenue | 7 | (49) | (150) | (199) |
+---------------------------+--------+-----------+-----------+-----------+
| | | (682) | (150) | (832) |
+---------------------------+--------+-----------+-----------+-----------+
| Closing Shareholders' | | 10,001 | 14,538 | 24,539 |
| funds | | | | |
+---------------------------+--------+-----------+-----------+-----------+
Balance Sheet as at 30 November 2008
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | 30 | | | 30 | | |
| | | November | | | November | | |
| | | 2008 | | | 2007 | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | Ordinary | C | Total | Ordinary | C | Total |
| | | shares | Ordinary | | shares | Ordinary | |
| | | | shares | | | shares | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| |Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Fixed assets | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Investments | 9 | 7,408 | 13,716 | 21,124 | 9,318 | 13,123 | 22,441 |
| at fair | | | | | | | |
| value | | | | | | | |
| through | | | | | | | |
| profit or | | | | | | | |
| loss | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Current | | | | | | | |
| assets | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Debtors | 11 | 358 | 556 | 914 | 263 | 256 | 519 |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Cash and | | 102 | 40 | 142 | 515 | 1,323 | 1,838 |
| overnight | | | | | | | |
| deposits | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | 460 | 596 | 1,056 | 778 | 1,579 | 2,357 |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Creditors: | 12 | (38) | (72) | (110) | (95) | (164) | (259) |
| amounts | | | | | | | |
| falling due | | | | | | | |
| within one | | | | | | | |
| year | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Net current | | 422 | 524 | 946 | 683 | 1,415 | 2,098 |
| assets | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Total net | | 7,830 | 14,240 | 22,070 | 10,001 | 14,538 | 24,539 |
| assets | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Capital and | | | | | | | |
| reserves | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Called up | 13 | 974 | 1,495 | 2,469 | 974 | 1,495 | 2,469 |
| share | | | | | | | |
| capital | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Share | 14 | 4,685 | 12,711 | 17,396 | 4,685 | 12,711 | 17,396 |
| premium | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Distributable | 14 | 3,648 | - | 3,648 | 3,648 | - | 3,648 |
| reserve | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Capital | 14 | 73 | - | 73 | 73 | - | 73 |
| redemption | | | | | | | |
| reserve | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Capital | 14 | 1,027 | (358) | 669 | 1,038 | (411) | 627 |
| reserve - | | | | | | | |
| realised | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Capital | 14 | (2,954) | (173) | (3,127) | (762) | 274 | -488 |
| reserve - | | | | | | | |
| unrealised | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Revenue | 14 | 377 | 565 | 942 | 345 | 469 | 814 |
| reserve | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Equity | | 7,830 | 14,240 | 22,070 | 10,001 | 14,538 | 24,539 |
| shareholders' | | | | | | | |
| interest | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
| Net asset | 15 | 80.4 | 95.2 | | 102.6 | 97.2 | |
| value per | | | | | | | |
| ordinary | | | | | | | |
| share | | | | | | | |
| (pence) | | | | | | | |
+---------------+-------+-----------+-----------+-----------+-----------+-----------+-----------+
The financial statements were approved by the Board of Directors and were signed
on its behalf by:
Gregor Michie
Director
9 March 2009
Cash Flow Statement for the year ended 30 November 2008
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| | | Year | | | Year | | |
| | | ended | | | ended | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| | | 30 | | | 30 | | |
| | |November | | |November | | |
| | | 2008 | | | 2007 | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| | | Ordinary | C | Total | Ordinary | C | Total |
| | | shares | Ordinary | | shares | Ordinary | |
| | | | shares | | | shares | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| | Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Operating | | | | | | | |
| activities | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Investment income | 374 | 559 | 933 | 361 | 596 | 957 |
| received | | | | | | |
+------------------------------+----------+----------+----------+----------+----------+----------+
| Deposit | | 25 | 21 | 46 | 41 | 20 | 61 |
| interest | | | | | | | |
| received | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Investment management | (328) | (500) | (828) | (297) | (420) | (717) |
| fees paid | | | | | | |
+------------------------------+----------+----------+----------+----------+----------+----------+
| Secretarial | | (42) | (60) | (102) | (28) | (40) | (68) |
| fees paid | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Cash paid to and on | (25) | (34) | (59) | (32) | (45) | (77) |
| behalf of Directors | | | | | | |
+------------------------------+----------+----------+----------+----------+----------+----------+
| Other cash | | (51) | (106) | (157) | (10) | (71) | (81) |
| payments | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Net cash | 16 | (47) | (120) | (167) | 35 | 40 | 75 |
| (outflow)/inflow | | | | | | | |
| from operating | | | | | | | |
| activities | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Taxation | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Corporation | | - | - | - | 7 | (7) | - |
| tax | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Financial | | | | | | | |
| investment | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Purchase of | | (2,790) | (7,947) | (10,737) | (4,638) | (7,809) | (12,447) |
| investments | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Sale of | | 2,595 | 7,113 | 9,708 | 3,113 | 8,912 | 12,025 |
| investments | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Net cash | (195) | (834) | (1,029) | (1,525) | 1,103 | (422) |
| (outflow)/inflow from | | | | | | |
| financial investment | | | | | | |
+------------------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Equity | | (171) | (329) | (500) | (731) | (300) | (1,031) |
| dividends | | | | | | | |
| paid | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| Net cash | (413) | (1,283) | (1,696) | (2,214) | 836 | (1,378) |
| (outflow)/inflow from | | | | | | |
| financing | | | | | | |
+------------------------------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
| (Decrease)/increase | 17 | (413) | (1,283) | (1,696) | (2,214) | 836 | (1,378) |
| in cash | | | | | | | |
+---------------------+--------+----------+----------+----------+----------+----------+----------+
The accompanying notes are an integral part of the financial statements.
Notes to the Financial Statements for the year ended 30 November 2008
1. Accounting Policies - UK Generally Accepted Accounting Practice
(a) Basis of preparation
The financial statements have been prepared in accordance with the Statement of
Recommended Practice 'Financial Statements of Investment Trust Companies' (the
SORP) issued in 2005.
(b) Income
Dividends receivable on equity shares and unit trusts are treated as revenue for
the year on an ex-dividend basis. Where no ex-dividend date is available,
dividends receivable on or before the year end are treated as revenue for the
year. Provision is made for any dividends not expected to be received. The fixed
returns on debt securities and non-equity shares are recognised on a time
apportionment basis so as to reflect the effective interest rate on the debt
securities and shares. Provision is made for any fixed income not expected to be
received. Interest receivable from cash and short term deposits and interest
payable are accrued to the end of the year.
(c) Expenses
All expenses are accounted for on an accruals basis and charged through the
Income Statement. Expenses are charged through the revenue account except as
follows:
- expenses which are incidental to the acquisition and disposal of an investment
are charged to capital; and
- expenses are charged to realised capital reserves where a connection with the
maintenance or enhancement of the value of the investments can be demonstrated.
In this respect the investment management fee has been allocated 20% to revenue
and 80% to realised capital reserves to reflect the Company's investment policy
and prospective income and capital growth. Expenses are allocated to either the
Original pool or the C share pool depending on the nature of the expense.
(d) Taxation
Deferred taxation is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date, where transactions or
events in an obligation to pay more tax in the future 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 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 periods.
Deferred tax is measured on a non-discounted basis at the tax rates that are
expected to apply in the periods in which timing differences are expected to
reverse, based on tax rates and laws enacted or subsequently enacted at the
balance sheet date.
The tax effect of different items of income/gain and expenditure/loss is
allocated between capital reserves and revenue account on the same basis as the
particular item to which it relates using the Company's effective rate of tax
for the period.
(e) Investments
In valuing unlisted investments, the Directors follow the criteria set out
below. These procedures comply with the revised International Private Equity and
Venture Capital Valuation Guidelines for the valuation of private equity and
venture capital investment, Investments are recognised at their trade date and
are valued at fair value, which represents the Director's view of the amount for
which an asset could be exchanged between knowledgeable willing parties in an
arm's length transaction. This does not assume that the underlying business is
saleable at the reporting date or that its current shareholders have an
intention to sell their holding in the near future.
1. For investments completed within the twelve months prior to the reporting
date and those at an early stage in their development, fair value is determined
using the Price of Recent Investment method, except that adjustments are made
when there has been a material change in the trading circumstances of the
company or a substantial movement in the relevant sector of the stock market.
2. A financial asset or liability is generally de-recognised when the contract
that gives rise to it is settled, sold, cancelled or expires.
Whenever practical, recent investments will be valued by reference to a material
arm's length transaction or a quoted price.
3. Mature companies are valued by applying a multiple to their fully-taxed
prospective earnings to determine the enterprise value of the company.
3.1 To obtain a valuation of the total ordinary share capital held by management
and the institutional investors, the value of third party debt, institutional
loan stock, debentures and preference share capital is deducted from the
enterprise value. The effect of any performance-related mechanisms is taken into
account when determining the value of the ordinary share capital.
3.2 Preference shares, debentures and loan stock are valued using the Price of
Recent Investment method. When a redemption premium has accrued, this will be
valued only if there is a reasonable prospect of it being paid. Preference
shares which carry a right to convert into ordinary share capital are valued at
the higher of the Price of Recent Investment method basis and the price/earnings
basis, both described above.
4. Where there is evidence of impairment, a provision may be taken against the
previous valuation of the investment.
5. In the absence of evidence of deterioration, or strong defensible evidence of
an increase in value, the air value is determined to be that reported at the
previous balance sheet date.
6. All unlisted investments are valued individually by Aberdeen Private Equity's
Portfolio Management Team. The resultant valuations are subject to detailed
scrutiny and approval by the Directors of the company.
7. In accordance with normal market practice, investments listed on the
Alternative Investment Market or a recognised stock exchange are valued at their
bid market price.
(f) Gains and losses on investments
When the Company sells or re-values its investments during the year, any gains
or loss arising are credited or charged to the Income Statement.
2 Income
+--------------+------------+----------+----------+--+----------+----------+---------+
| | Year ended | | Year ended |
+--------------+----------------------------------+--+-------------------------------+
| | 30 November 2008 | | 30 November 2007 |
+--------------+----------------------------------+--+-------------------------------+
| | Ordinary | C | Total | | Ordinary | C | Total |
| | Shares | Ordinary | | | Shares | Ordinary | |
| | | Shares | | | | Shares | |
+--------------+------------+----------+----------+--+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | |
+--------------+------------+----------+----------+--+----------+----------+---------+
| Income | | | | | | | |
| from | | | | | | | |
| investments: | | | | | | | |
+--------------+------------+----------+----------+--+----------+----------+---------+
| UK | 22 | 46 | 68 | | 14 | 23 | 37 |
| dividends | | | | | | | |
+--------------+------------+----------+----------+--+----------+----------+---------+
| UK | 381 | 656 | 1,037 | | 378 | 675 | 1,053 |
| unfranked | | | | | | | |
| investment | | | | | | | |
| income | | | | | | | |
+--------------+------------+----------+----------+--+----------+----------+---------+
| | 403 | 702 | 1,105 | | 392 | 698 | 1,090 |
+--------------+------------+----------+----------+--+----------+----------+---------+
| Interest: | | | | | | | |
+--------------+------------+----------+----------+--+----------+----------+---------+
| Deposit | 23 | 20 | 43 | | 41 | 21 | 62 |
| interest | | | | | | | |
+--------------+------------+----------+----------+--+----------+----------+---------+
| Total | 426 | 722 | 1,148 | | 433 | 719 | 1,152 |
| income | | | | | | | |
+--------------+------------+----------+----------+--+----------+----------+---------+
3 Investment management fees
+-------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | Year ended 30 November 2008 |
+-------------+-------------------------------------------------------------------------------------------+
| | |Ordinary | | | C | | | Total | |
| | | Shares | | |Ordinary | | | | |
| | | | | | Shares | | | | |
+-------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
| | | | | | | | | | |
+-------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | | |
+-------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Investment | 48 | 192 | 240 | 74 | 296 | 370 | 122 | 488 | 610 |
| management | | | | | | | | | |
| fees at | | | | | | | | | |
| 2.5% | | | | | | | | | |
+-------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| VAT | 7 | 26 | 33 | 10 | 39 | 49 | 17 | 65 | 82 |
| thereon | | | | | | | | | |
+-------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Reclaimable | (18) | (71) | (89) | (21) | (83) | (104) | (39) | (154) | (193) |
| VAT (see | | | | | | | | | |
| note 4) | | | | | | | | | |
+-------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | 37 | 147 | 184 | 63 | 252 | 315 | 100 | 399 | 499 |
+-------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
+------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | Year ended 30 November 2007 |
+------------+-------------------------------------------------------------------------------------------+
| | |Ordinary | | | C | | | Total | |
| | | Shares | | |Ordinary | | | | |
| | | | | | Shares | | | | |
+------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
| | | | | | | | | | |
+------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | | |
+------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Investment | 54 | 215 | 269 | 72 | 289 | 361 | 126 | 504 | 630 |
| management | | | | | | | | | |
| fees at | | | | | | | | | |
| 2.5% | | | | | | | | | |
+------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Less: | (4) | (15) | (19) | (2) | (7) | (9) | (6) | (22) | (28) |
| Fees | | | | | | | | | |
| already | | | | | | | | | |
| charged | | | | | | | | | |
| through | | | | | | | | | |
| Unit | | | | | | | | | |
| Trusts | | | | | | | | | |
+------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Net | 50 | 200 | 250 | 70 | 282 | 352 | 120 | 482 | 602 |
| investment | | | | | | | | | |
| management | | | | | | | | | |
| fees | | | | | | | | | |
| charged | | | | | | | | | |
+------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| VAT | 9 | 35 | 44 | 12 | 49 | 61 | 21 | 84 | 105 |
| thereon | | | | | | | | | |
+------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | 59 | 235 | 294 | 82 | 331 | 413 | 141 | 566 | 707 |
+------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
Details of the fee basis are contained in the Director's Report.
4 Reclaimable VAT
+------------------------------------------------------------------------+
| In 2007 the European Court of Justice ruled that investment management |
| fees should be exempt from VAT. At the balance sheet date the Manager |
| estimates that the Company will recover in the region of 70% of the |
| total VAT suffered, GBP127,000 for the Ordinary Shares and GBP149,000 |
| for the C Ordinary Shares, in the 3 years to September 2008. These |
| amounts have been allocated between revenue and capital in the same |
| proportion as irrecoverable VAT was originally charged. |
+------------------------------------------------------------------------+
5 Other expenses
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | Year ended 30 November 2008 |
+---------------+-------------------------------------------------------------------------------------------+
| | |Ordinary | | | C | | | Total | |
| | | Shares | | |Ordinary | | | | |
| | | | | | Shares | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
| | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Secretarial | 29 | - | 29 | 43 | - | 43 | 72 | - | 72 |
| fees | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Directors' | 28 | - | 28 | 40 | - | 40 | 68 | - | 68 |
| remuneration | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Audit | 5 | - | 5 | 7 | - | 7 | 12 | - | 12 |
| remuneration | | | | | | | | | |
| - audit | | | | | | | | | |
| services | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | 1 | - | 1 | 1 | - | 1 | 2 | - | 2 |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Irrecoverable | 11 | - | 11 | 16 | - | 16 | 27 | - | 27 |
| VAT | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Bad | 41 | - | 41 | - | - | - | 41 | - | 41 |
| debts | | | | | | | | | |
| written | | | | | | | | | |
| off | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Miscellaneous | 24 | - | 24 | 28 | - | 28 | 52 | - | 52 |
| expenses | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | 139 | - | 139 | 135 | - | 135 | 274 | - | 274 |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | Year ended 30 November 2007 |
+---------------+-------------------------------------------------------------------------------------------+
| | |Ordinary | | | C | | | Total | |
| | | Shares | | |Ordinary | | | | |
| | | | | | Shares | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
| | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Secretarial | 29 | - | 29 | 40 | - | 40 | 69 | - | 69 |
| fees | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Directors' | 29 | - | 29 | 40 | - | 40 | 69 | - | 69 |
| remuneration | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Audit | 5 | - | 5 | 6 | - | 6 | 11 | - | 11 |
| remuneration | | | | | | | | | |
| - audit | | | | | | | | | |
| services | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | 1 | - | 1 | 2 | - | 2 | 3 | - | 3 |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Irrecoverable | 10 | - | 10 | 14 | - | 14 | 24 | - | 24 |
| VAT | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| Miscellaneous | 28 | - | 28 | 34 | - | 34 | 62 | - | 62 |
| expenses | | | | | | | | | |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
| | 102 | - | 102 | 136 | - | 136 | 238 | - | 238 |
+---------------+---------+----------+---------+---------+----------+---------+---------+---------+---------+
6 Tax on ordinary activities
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | Year ended 30 November 2008 |
+-------------+-----------------------------------------------------------------------------------------+
| | Ordinary Shares | C Ordinary Shares | Total |
+-------------+-----------------------------+-----------------------------+-----------------------------+
| | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
| | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | | | | | | | | |
+-----------------------+---------+---------+---------+---------+---------+---------+---------+---------+
| Corporation | (47) | 47 | - | (99) | 59 | (40) | (146) | 106 | (40) |
| tax | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Charge | (47) | 47 | - | (99) | 59 | (40) | (146) | 106 | (40) |
| for | | | | | | | | | |
| year | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | Year ended 30 November 2007 |
+-------------+-----------------------------------------------------------------------------------------+
| | Ordinary Shares | C Ordinary Shares | Total |
+-------------+-----------------------------+-----------------------------+-----------------------------+
| | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
| | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Corporation | (48) | 76 | 28 | (91) | 63 | (28) | (139) | 139 | - |
| tax | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| Charge | (48) | 76 | 28 | (91) | 63 | (28) | (139) | 139 | - |
| for | | | | | | | | | |
| year | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
| The tax assessed for the period is lower than the standard rate of corporation tax |
| 28.7% (2007: 30%). The differences are explained below: |
+-------------------------------------------------------------------------------------------------------+
| |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+---------+
+-------------+----------+----------+---------+---------+----------+----------+---------+
| | Year ended | | Year ended |
+-------------+-------------------------------+---------+-------------------------------+
| | 30 November 2008 | | 30 November 2007 |
+-------------+-------------------------------+---------+-------------------------------+
| | | | | | | | |
+-------------+----------+----------+---------+---------+----------+----------+---------+
| | Ordinary | C | Total | | Ordinary | C | Total |
| | Shares | Ordinary | | | Shares | Ordinary | |
| | | Shares | | | | Shares | |
+-------------+----------+----------+---------+---------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | |
+-------------+----------+----------+---------+---------+----------+----------+---------+
| Return on | 250 | 524 | 774 | | 272 | 501 | 773 |
| ordinary | | | | | | | |
| activities | | | | | | | |
| before tax | | | | | | | |
+-------------+----------+----------+---------+---------+----------+----------+---------+
| Revenue | 72 | 150 | 222 | | 81 | 150 | 231 |
| return on | | | | | | | |
| ordinary | | | | | | | |
| activities | | | | | | | |
| multiplied | | | | | | | |
| by | | | | | | | |
+-------------+----------+----------+---------+---------+----------+----------+---------+
| standard | (6) | (13) | (19) | | (4) | (7) | (11) |
| rate of | | | | | | | |
| corporation | | | | | | | |
| tax | | | | | | | |
+-------------+----------+----------+---------+---------+----------+----------+---------+
| Effect of | (19) | (38) | (57) | | (29) | (52) | (81) |
| UK income | | | | | | | |
| not | | | | | | | |
| subject | | | | | | | |
| to | | | | | | | |
| taxation | | | | | | | |
+-------------+----------+----------+---------+---------+----------+----------+---------+
| Smaller | (47) | (59) | (106) | | (76) | (63) | (139) |
| Companies | | | | | | | |
| relief | | | | | | | |
+-------------+----------+----------+---------+---------+----------+----------+---------+
| Relief | - | 40 | 40 | | (28) | 28 | - |
| from | | | | | | | |
| capital | | | | | | | |
+-------------+----------+----------+---------+---------+----------+----------+---------+
At 30 November 2008 the Company has utilised all surplus management expenses
(2007: GBP34,000).
+---------------------+----------+----------+---------+----------+----------+---------+
| 7 Dividends | |
+---------------------+---------------------------------------------------------------+
| | Year ended | Year ended |
+---------------------+-------------------------------+-------------------------------+
| | 30 November 2008 | 30 November 2007 |
+---------------------+-------------------------------+-------------------------------+
| Amounts recognised | Ordinary | C | Total | Ordinary | C | Total |
| as distributions to | Shares | Ordinary | | Shares | Ordinary | |
| Shareholders in the | | Shares | | | Shares | |
| year: | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Revenue dividends | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Final revenue | 171 | - | 171 | - | - | - |
| dividend for the | | | | | | |
| year ended 30 | | | | | | |
| November 2007 1.75p | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| paid on 30 April | | | | | | |
| 2008 | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Final revenue | - | 329 | 329 | - | - | - |
| dividend for the | | | | | | |
| year ended 30 | | | | | | |
| November 2007 2.2p | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| paid on 30 April | | | | | | |
| 2008 | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Interim revenue | - | - | - | 49 | - | 49 |
| dividend for the | | | | | | |
| year ended 30 | | | | | | |
| November 2006 0.5p | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| (2005: 0.5p) paid | | | | | | |
| on 30 March 2007 | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Interim revenue | - | - | - | - | 150 | 150 |
| dividend for the | | | | | | |
| year ended 30 | | | | | | |
| November 2006 1p | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| (2005: nil) paid on | | | | | | |
| 30 March 2007 | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| | 171 | 329 | 500 | 49 | 150 | 199 |
+---------------------+----------+----------+---------+----------+----------+---------+
| | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Capital dividends | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Interim capital | - | - | - | 390 | - | 390 |
| dividend for the | | | | | | |
| year ended 30 | | | | | | |
| November 2006 of 4p | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| (2005: 1.5p) paid | | | | | | |
| on 30 March 2007 | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Interim capital | - | - | - | 292 | - | 292 |
| dividend for the | | | | | | |
| year ended 30 | | | | | | |
| November 2007 of 3p | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| (2005: 1.5p) paid | | | | | | |
| on 24 August 2007 | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Interim capital | - | - | - | - | 150 | 150 |
| dividend for the | | | | | | |
| year ended 30 | | | | | | |
| November 2007 of 1p | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| (2005: nil) paid on | | | | | | |
| 24 August 2007 | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| | - | - | - | 682 | 150 | 832 |
+---------------------+----------+----------+---------+----------+----------+---------+
We set out below the total revenue dividends paid and proposed in respect of the
financial year, which is the basis on which the requirements of Section 274 of
the Income Tax Act 2007 are considered
+---------------------+----------+----------+---------+----------+----------+---------+
| | |
+---------------------+---------------------------------------------------------------+
| | Year ended | Year ended |
+---------------------+-------------------------------+-------------------------------+
| | 30 November 2008 | 30 November 2007 |
+---------------------+-------------------------------+-------------------------------+
| Amounts recognised | Ordinary | C | Total | Ordinary | C | Total |
| as distributions to | Shares | Ordinary | | Shares | Ordinary | |
| Shareholders in the | | Shares | | | Shares | |
| year: | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Revenue dividends | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Revenue available | 203 | 425 | 628 | 224 | 410 | 634 |
| for distribution by | | | | | | |
| way of dividends | | | | | | |
| for the year | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Final dividend for | - | - | - | 171 | - | 171 |
| the year ended 30 | | | | | | |
| November 2007 | | | | | | |
| Ordinary Shares | | | | | | |
| 1.75p paid on 30 | | | | | | |
| April 2008 | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Final dividend for | - | - | - | - | 329 | 329 |
| the year ended 30 | | | | | | |
| November 2007 | | | | | | |
| C Ordinary Shares | | | | | | |
| 2.2p paid on 30 | | | | | | |
| April 2008 | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
The proposed final revenue dividend for the Company after the conversion of the
C Ordinary shares into Ordinary shares is 2.7p payable on 30 April 2009.
8. Return per ordinary share
+------------+-----------------+--------------+-----------------+------------+-------------+------------+
| | Year ended | Year ended |
+------------+--------------------------------------------------+---------------------------------------+
| The | 30 November 2008 | 30 November 2007 |
| returns | | |
| per share | | |
| have been | | |
| based on | | |
| the | | |
| following | | |
| figures: | | |
+------------+--------------------------------------------------+---------------------------------------+
| | Ordinary | C | Total | Ordinary | C | Total |
| | Shares | Ordinary | | Shares | Ordinary | |
| | | shares | | | shares | |
+------------+-----------------+--------------+-----------------+------------+-------------+------------+
| | | | | | | |
+------------+-----------------+--------------+-----------------+------------+-------------+------------+
| Weighted | 9,744,243 | 14,954,494 | | 9,744,243 | 14,954,494 | |
| average | | | | | | |
| number of | | | | | | |
| ordinary | | | | | | |
| shares | | | | | | |
+------------+-----------------+--------------+-----------------+------------+-------------+------------+
| Revenue | GBP203,000 | GBP425,000 | GBP628,000 | GBP224,000 | GBP410,000 | GBP634,000 |
| return | | | | | | |
+------------+-----------------+--------------+-----------------+------------+-------------+------------+
| Capital | (GBP2,203,000) | | (GBP2,597,000) | GBP298,000 | GBP66,000 | GBP364,000 |
| return | | (GBP394,000) | | | | |
+------------+-----------------+--------------+-----------------+------------+-------------+------------+
| Total | (GBP2,000,000) | GBP31,000 | (GBP1,969,000) | GBP522,000 | GBP476,000 | GBP998,000 |
| return | | | | | | |
+------------+-----------------+--------------+-----------------+------------+-------------+------------+
+--------------+----------+---------------+---------+---------+----------+----------+----------+
| We set out below the total revenue dividends paid and proposed in respect of the |
| financial year, which is the basis on which the requirements of Section 274 of the |
| Income Tax Act 2007 are considered. |
+----------------------------------------------------------------------------------------------+
| | Year ended | Year ended |
+--------------+----------------------------------------------+--------------------------------+
| | 30 November 2008 | 30 November 2007 |
+--------------+----------------------------------------------+--------------------------------+
| | Ordinary | C Ordinary Shares | Total | Ordinary | C | Total |
| | Shares | | | Shares | Ordinary | |
| | | | | | Shares | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| | | | | | | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| | | | | | | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| | | | | | | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| Revenue | | | | | | |
| dividends | | | | | | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| Revenue | 203 | 425 | 628 | 224 | 410 | 634 |
| available | | | | | | |
| for | | | | | | |
| distribution | | | | | | |
| by way of | | | | | | |
| dividends | | | | | | |
| for the year | | | | | | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| | | | | | | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| Interim | - | - | - | 171 | - | 171 |
| dividend | | | | | | |
| for the | | | | | | |
| year | | | | | | |
| ended 30 | | | | | | |
| November | | | | | | |
| 2007 | | | | | | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| Ordinary Shares | | | | | |
| 2.0p paid on 30 | | | | | |
| March 2008. | | | | | |
+-------------------------+-------------------------+---------+----------+----------+----------+
| | | | | | | |
+--------------+----------+-------------------------+---------+----------+----------+----------+
| Interim | | | | |
| dividend | | | | |
| for the | | | | |
| year | | | | |
| ended 30 | | | | |
| November | | | | |
| 2007 | | | | |
+--------------+----------------------------------------------+----------+----------+----------+
| C | - | - | - | - | 329 | 329 |
| Ordinary | | | | | | |
| Shares | | | | | | |
| 2.2p | | | | | | |
| paid on | | | | | | |
| 30 March | | | | | | |
| 2008. | | | | | | |
+--------------+--------------------------+---------+---------+----------+----------+----------+
| | | | | | | |
+--------------+--------------------------+---------+---------+----------+----------+----------+
| The proposed final revenue dividend for the Company after the conversion of the C |
| ordinary shares into the ordinary shares is 1.9p payable on 30 April 2009. |
+--------------+----------+---------------+---------+---------+----------+----------+----------+
9 Investments
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| | Year ended 30 November 2008 |
+----------------+--------------------------------------------------------------------------------------------------------+
| | | Ordinary | | | C | | | Total | |
| | | Shares | | | Ordinary | | | | |
| | | | | | Shares | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| | Listed | Unlisted | Total | Listed | Unlisted | Total | Listed | Unlisted | Total |
| | | & AIM | | | & AIM | | | & AIM | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Valuation | 800 | 8,518 | 9,318 | 6,804 | 6,319 | 13,123 | 7,604 | 14,837 | 22,441 |
| brought | | | | | | | | | |
| forward | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Unrealised | - | (753) | (753) | (7) | 281 | 274 | (7) | (472) | (479) |
| (loss)/gain | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Cost at | 800 | 9,271 | 10,071 | 6,811 | 6,038 | 12,849 | 7,611 | 15,309 | 22,920 |
| 30 | | | | | | | | | |
| November | | | | | | | | | |
| 2007 | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Movements | | | | | | | | | |
| during | | | | | | | | | |
| the year: | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Purchases | 498 | 2,292 | 2,790 | 3,477 | 4,470 | 7,947 | 3,975 | 6,762 | 10,737 |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Sales | (1,222) | (1,373) | (2,595) | (5,810) | (1,303) | (7,113) | (7,032) | (2,676) | (9,708) |
| proceeds | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Realised | (3) | 101 | 98 | (7) | 253 | 246 | (10) | 354 | 344 |
| gains/(losses) | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Amortisation | (2) | - | (2) | (40) | - | (40) | (42) | - | (42) |
| of book cost | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Cost at | 71 | 10,291 | 10,362 | 4,431 | 9,458 | 13,889 | 4,502 | 19,749 | 24,251 |
| 30 | | | | | | | | | |
| November | | | | | | | | | |
| 2008 | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Unrealised | 2 | (2,956) | (2,954) | 65 | (238) | (173) | 67 | (3,194) | (3,127) |
| gain/(loss) | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
| Valuation | 73 | 7,335 | 7,408 | 4,496 | 9,220 | 13,716 | 4,569 | 16,555 | 21,124 |
| at 30 | | | | | | | | | |
| November | | | | | | | | | |
| 2008 | | | | | | | | | |
+----------------+----------+-----------+---------+-----------+-----------+-----------+-----------+-----------+-----------+
+---------------------+----------+----------+---------+----------+----------+---------+
| | 30 November 2008 | 30 November 2007 |
+---------------------+-------------------------------+-------------------------------+
| | Ordinary | C | Total | Ordinary | C | Total |
| | Shares | Ordinary | | Shares | Ordinary | |
| | | Shares | | | Shares | |
+---------------------+----------+----------+---------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Realised gains on | 98 | 246 | 344 | 1,079 | 147 | 1,226 |
| historical basis | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| Net | (2,201) | (447) | (2,648) | (622) | 187 | (435) |
| (decrease)/increase | | | | | | |
| in value of | | | | | | |
| investments | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
| (Loss)/gains on | (2,103) | (201) | (2,304) | 457 | 334 | 791 |
| investments | | | | | | |
+---------------------+----------+----------+---------+----------+----------+---------+
10 Participating and significant interests
The principal activity of the Company is to select and hold a portfolio of
investments in unlisted & AIM securities. Although the Company will, in some
cases, be represented on the board of the investee company, it will not take a
controlling interest or become involved in its management. The size and
structure of the companies with unlisted and AIM securities may result in
certain holdings in the portfolio representing a participating interest without
there being any partnership, joint venture or management consortium agreement.
At 30 November 2008 the Company held shares amounting to 20% or more of the
equity capital of Armannoch Investments Limited, Energy Services Investment
Company (ESIC) Limited, Lime Investments Limited and Valkyrie Capital Limited.
Further details can be found on the Largest Unlisted and AIM Investments on
pages 13 and 14 of the annual report.
The Company also holds shares amounting to more than 3% or more of the nominal
value of the allotted shares or units of any class of certain investee
companies.
Details of equity percentages held are shown in the Investment Portfolio Summary
on pages 11 and 12.
11 Debtors
+-------------------------------+----------+----------+--------+---------+----------+----------+----------+
| | 30 November 2008 | 30 November 2007 |
+-------------------------------+------------------------------+------------------------------------------+
| | Ordinary | C | Total | Ordinary | C | Total |
| | Shares | Ordinary | | Shares | Ordinary | |
| | | Shares | | | Shares | |
+-------------------------------+----------+----------+------------------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------+----------+----------+------------------+----------+----------+----------+
| Prepayments and accrued | 265 | 436 | 701 | 228 | 256 | 484 |
| income | | | | | | |
+-------------------------------+----------+----------+------------------+----------+----------+----------+
| Other debtors | 90 | 120 | 210 | 28 | - | 28 |
+-------------------------------+----------+----------+------------------+----------+----------+----------+
| Current taxation | 3 | - | 3 | 7 | - | 7 |
+-------------------------------+----------+----------+------------------+----------+----------+----------+
| | 358 | 556 | 914 | 263 | 256 | 519 |
+-------------------------------+----------+----------+--------+---------+----------+----------+----------+
12 Creditors
+-----------+----------+------------+----------+---------+----------+---------+
| | 30 November 2008 | 30 November 2007 |
+-----------+----------------------------------+------------------------------+
| | Ordinary | Ordinary | C | Total | C | Total |
| | Shares | Shares | Ordinary | |Ordinary | |
| | | | Shares | | Shares | |
+-----------+----------+------------+----------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------+----------+------------+----------+---------+----------+---------+
| Amounts | | | | | | |
| falling | | | | | | |
| due | | | | | | |
| within | | | | | | |
| one | | | | | | |
| year: | | | | | | |
+-----------+----------+------------+----------+---------+----------+---------+
| Other | 13 | - | - | - | - | 13 |
| creditors | | | | | | |
+-----------+----------+------------+----------+---------+----------+---------+
| Current | 3 | - | 28 | 28 | 40 | 43 |
| taxation | | | | | | |
+-----------+----------+------------+----------+---------+----------+---------+
| Accruals | 22 | 95 | 136 | 231 | 32 | 54 |
+-----------+----------+------------+----------+---------+----------+---------+
| | 38 | 95 | 164 | 259 | 72 | 110 |
+-----------+----------+------------+----------+---------+----------+---------+
At the 30 November 2008 the Original pool owed nil (2007: GBP65,000) and the C
share pool owed nil (2007: GBP94,000) to Aberdeen Asset Management Ltd for
management services rendered, which is included in accruals.
13 Share capital
+--------------+------------+---------+------------+---------+------------+---------+------------+---------+
| | 30 November 2008 | 30 November 2007 |
+--------------+---------------------------------------------+---------------------------------------------+
| | Ordinary | C Ordinary | Ordinary | C Ordinary |
| | Shares | Shares | Shares | Shares |
+--------------+----------------------+----------------------+----------------------+----------------------+
| 13 Share | Number | GBP'000 | Number | GBP'000 | Number | GBP'000 | Number | GBP'000 |
| capital | | | | | | | | |
+--------------+------------+---------+------------+---------+------------+---------+------------+---------+
| At 30 | | | | | | | | |
| November | | | | | | | | |
| the | | | | | | | | |
| authorised | | | | | | | | |
| share | | | | | | | | |
| capital | | | | | | | | |
| comprised: | | | | | | | | |
+--------------+------------+---------+------------+---------+------------+---------+------------+---------+
| allotted, | | | | | | | | |
| issued and | | | | | | | | |
| fully | | | | | | | | |
| paid: | | | | | | | | |
+--------------+------------+---------+------------+---------+------------+---------+------------+---------+
| Ordinary | | | | | | | | |
| shares of | | | | | | | | |
| 10p each | | | | | | | | |
+--------------+------------+---------+------------+---------+------------+---------+------------+---------+
| Balance | 9,744,243 | 974 | 14,954,494 | 1,495 | 9,744,243 | 974 | 14,954,494 | 1,495 |
| brought | | | | | | | | |
| forward | | | | | | | | |
+--------------+------------+---------+------------+---------+------------+---------+------------+---------+
| Unissued | 50,255,757 | 5,026 | 5,045,506 | 505 | 50,255,757 | 5,026 | 5,045,506 | 505 |
| unclassified | | | | | | | | |
| shares of | | | | | | | | |
| 10p each | | | | | | | | |
+--------------+------------+---------+------------+---------+------------+---------+------------+---------+
| | 60,000,000 | 6,000 | 20,000,000 | 2,000 | 60,000,000 | 6,000 | 20,000,000 | 2,000 |
+--------------+------------+---------+------------+---------+------------+---------+------------+---------+
14. Reserves
+---------------+-----------+---------------+------------+----------+------------+---------+
| | Share | | Capital | Capital | Capital | |
| | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| | premium | Distributable | redemption | reserve | reserve | Revenue |
| | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| | account | reserve | reserve | realised | unrealised | reserve |
| | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| | GBP'000 | GBP'000 | GBP000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Ordinary | | | | | | |
| Shares | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| At 30 | 4,685 | 3,648 | 73 | 1,038 | (762) | 345 |
| November 2007 | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Gains on | - | - | - | 98 | - | - |
| sales of | | | | | | |
| investments | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Reversal of | - | - | - | (9) | 9 | - |
| unrealised | | | | | | |
| capital tax | | | | | | |
| gain | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Net decrease | - | - | - | - | (2,201) | - |
| in value of | | | | | | |
| investments | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Investment | - | - | - | (147) | - | - |
| management | | | | | | |
| fees | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Tax effect of | - | - | - | 47 | - | - |
| capital items | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Retained net | - | - | - | - | - | 203 |
| revenue for | | | | | | |
| year | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Dividends | | | | - | | (171) |
| paid | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| At 30 | 4,685 | 3,648 | 73 | 1,027 | (2,954) | 377 |
| November 2008 | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| C Ordinary | | | | | | |
| Shares | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| At 30 | 12,711 | - | - | (411) | 274 | 469 |
| November 2007 | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Gains on | - | - | - | 246 | - | - |
| sales of | | | | | | |
| investments | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Net decrease | - | - | - | - | (447) | - |
| in value of | | | | | | |
| investments | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Investment | - | - | - | (252) | - | - |
| management | | | | | | |
| fees | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Tax effect of | - | - | - | 59 | - | - |
| capital items | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Retained net | - | - | - | - | - | 425 |
| revenue for | | | | | | |
| year | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| Dividends | - | - | - | - | - | (329) |
| paid | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
| At 30 | 12,711 | - | - | (358) | (173) | 565 |
| November 2008 | | | | | | |
+---------------+-----------+---------------+------------+----------+------------+---------+
15 Net asset value per Ordinary share
+--------------+--------------+------------+--------------+
| 30 November 2008 |
+---------------------------------------------------------+
| Ordinary shares | C Ordinary shares |
+-----------------------------+---------------------------+
| Net asset | Net asset | Net asset | Net asset |
| | | | |
+--------------+--------------+------------+--------------+
| value per | value | value per | value |
| | | | |
+--------------+--------------+------------+--------------+
| share | attributable | share | attributable |
| | | | |
+--------------+--------------+------------+--------------+
| p | GBP'000 | p | GBP'000 |
+--------------+--------------+------------+--------------+
| | | | |
+--------------+--------------+------------+--------------+
| 80.4 | 7,830 | 95.2 | 14,240 |
+--------------+--------------+------------+--------------+
| | | | |
+--------------+--------------+------------+--------------+
| 30 November 2007 |
+---------------------------------------------------------+
| Ordinary shares | C Ordinary shares |
+-----------------------------+---------------------------+
| Net asset | Net asset | Net asset | Net asset |
| | | | |
+--------------+--------------+------------+--------------+
| value per | value | value per | value |
| | | | |
+--------------+--------------+------------+--------------+
| share | attributable | share | attributable |
| | | | |
+--------------+--------------+------------+--------------+
| p | GBP'000 | p | GBP'000 |
+--------------+--------------+------------+--------------+
| | | | |
+--------------+--------------+------------+--------------+
| 102.6 | 10,001 | 97.2 | 14,538 |
+--------------+--------------+------------+--------------+
The number of shares used in the above calculation is set out in note 13.
16 Reconciliation of total return before finance costs and taxation to net cash
outflow from operating activities
+----------------------+----------------+----------+---------------+--------------+
| | Year ended | | Year ended | |
+----------------------+----------------+----------+---------------+--------------+
| | 30 November | | 30 November | |
| | 2008 | | 2007 | |
+----------------------+----------------+----------+---------------+--------------+
| | Ordinary | C | Ordinary | C Ordinary |
| | Shares | Ordinary | Shares | Shares |
| | | Shares | | |
+----------------------+----------------+----------+---------------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | |
+----------------------+----------------+----------+---------------+--------------+
| | | | | |
+----------------------+----------------+----------+---------------+--------------+
| Total return before | (2,000) | 71 | 494 | 504 |
| taxation | | | | |
+----------------------+----------------+----------+---------------+--------------+
| Loss/(gains) on | 2,103 | 201 | (457) | (334) |
| Investments | | | | |
+----------------------+----------------+----------+---------------+--------------+
| Increase in accrued | (36) | (182) | (35) | (124) |
| income | | | | |
+----------------------+----------------+----------+---------------+--------------+
| (Increase)/decrease | (3) | (1) | 5 | 4 |
| in prepayments | | | | |
+----------------------+----------------+----------+---------------+--------------+
| Decrease/(increase) | 41 | - | 24 | (7) |
| in other debtors | | | | |
+----------------------+----------------+----------+---------------+--------------+
| Decrease in accruals | (161) | (208) | - | - |
+----------------------+----------------+----------+---------------+--------------+
| Increase in other | - | (41) | - | (24) |
| creditors | | | | |
+----------------------+----------------+----------+---------------+--------------+
| Tax on unfranked | 7 | - | - | - |
| income - UK | | | | |
+----------------------+----------------+----------+---------------+--------------+
| Amortisation of | 2 | 40 | 4 | 21 |
| fixed income | | | | |
| investment book cost | | | | |
+----------------------+----------------+----------+---------------+--------------+
| Net cash | (47) | (120) | 35 | 40 |
| (outflow)/inflow | | | | |
| from operating | | | | |
| activities | | | | |
+----------------------+----------------+----------+---------------+--------------+
17 Analysis of changes in net funds
+-----------+-----------+--------------+------------+------------+-----------+----------+
| | Ordinary Shares | C Ordinary Shares |
| | | |
+-----------+---------------------------------------+-----------------------------------+
| | At | | At | At | | At |
+-----------+-----------+--------------+------------+------------+-----------+----------+
| | 30 | Cash | 30 | 30 | Cash | 30 |
| | November | | November | November | | November |
+-----------+-----------+--------------+------------+------------+-----------+----------+
| | 2007 | flows | 2008 | 2007 | flows | 2008 |
+-----------+-----------+--------------+------------+------------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------+-----------+--------------+------------+------------+-----------+----------+
| | | | | | | |
+-----------+-----------+--------------+------------+------------+-----------+----------+
| Cash | 515 | (413) | 102 | 1,323 | (1,283) | 40 |
| and | | | | | | |
| overnight | | | | | | |
| deposits | | | | | | |
+-----------+-----------+--------------+------------+------------+-----------+----------+
+-----------+-----------+--------------+------------+----------+----------+----------+
| | Ordinary Shares | C Ordinary Shares |
| | | |
+-----------+---------------------------------------+--------------------------------+
| | At | | At | At | | At |
+-----------+-----------+--------------+------------+----------+----------+----------+
| | 30 | Cash | 30 | 30 | Cash | 30 |
| | November | | November | November | | November |
+-----------+-----------+--------------+------------+----------+----------+----------+
| | 2006 | flows | 2007 | 2006 | flows | 2007 |
+-----------+-----------+--------------+------------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------+-----------+--------------+------------+----------+----------+----------+
| | | | | | | |
+-----------+-----------+--------------+------------+----------+----------+----------+
| Cash and | 2,729 | (2,214) | 515 | 487 | 836 | 1,323 |
| overnight | | | | | | |
| deposits | | | | | | |
+-----------+-----------+--------------+------------+----------+----------+----------+
18 Capital commitments
+-------------+--------------+------------+------------+----------------+
| | At 30 November 2008 | At 30 November 2007 |
+-------------+---------------------------+-----------------------------+
| | Ordinary | C Ordinary | Ordinary | C Ordinary |
| | Shares | shares | Shares | shares |
+-------------+--------------+------------+------------+----------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------+--------------+------------+------------+----------------+
| | | | | |
+-------------+--------------+------------+------------+----------------+
| Conditional | 292 | 409 | 292 | 409 |
| capital | | | | |
| commitments | | | | |
| on unlisted | | | | |
| investments | | | | |
+-------------+--------------+------------+------------+----------------+
19. Derivatives and other financial instruments
The Company's financial instruments comprise securities and other investments,
cash balances and debtors and creditors that arise directly from its operations,
for example, in respect of sales and purchases awaiting settlement, and debtors
for accrued income. The Company may not enter into derivative transactions in
the form of forward foreign currency contracts, futures and options without the
written permission of the Directors. No derivative transactions were entered
into during the period. The purpose of these financial instruments is efficient
portfolio management.
The main risks the Company faces from its financial instruments are (i) 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
rates, (ii) interest rate risk, (iii) liquidity risk and (iv) credit rate risk.
In line with the Company's investment objective, the portfolio comprises only
sterling currency securities and therefore has no exposure to foreign currency
risk.
The Manager's policies for managing these risks are summarised below and have
been applied throughout the period. The numerical disclosures below exclude
short-term debtors and creditors.
Market price risk
The Company's investment portfolio is exposed to market price fluctuations,
which are monitored by the Manager in pursuance of the investment
objective. Adherence to investment guidelines and to investment and borrowing
policies set out in the management agreement mitigates the risk of excessive
exposure to any particular type of security or issuer. These powers and
guidelines include the requirement to invest in up to 50 companies across a
range of industrial and service sectors at varying stages of development, to
closely monitor the progress of these companies and to appoint a non executive
director to the board of each company. Further information on the investment
portfolio is set out in the Investment Manager's Report.
Price risk sensitivity
The following details the Company's sensitivity to a 10% increase and decrease
in the market prices of AIM quoted securities, with 10% being the Manager's
assessment of a reasonably possible change in market prices.
At 30 November 2008, if market prices of listed AIM/PLUS quoted securities had
been 10% higher or lower with all other variables held constant, the increase or
decrease in net assets attributable to Ordinary Shareholders for the year would
have been GBP151,000 (2007:GBP316,000), due to the change in valuation of
financial assets at fair value through profit or loss.
At 30 November 2008, 19.3% (2007: 31.6%) comprised investments in unquoted
companies held at fair value. The valuation methods used by the Company include
cost and realisable value. Therefore, it is not considered meaningful to provide
a sensitivity analysis on the net asset position and total return for the year
due to the fact any such movements would be immaterial to users of financial
statements.
Interest rate risk
Some of the Company's financial assets are interest bearing, some of which are
at fixed rates and some at variable. As a result, the Company is subject to
exposure to fair value interest rate risk due to fluctuations in the prevailing
levels of market interest rates.
The interest rate risk profile of financial assets at the balance sheet date was
as follows:
+------------------------+-----------+----------+------------+
| Ordinary Shares | | | |
+------------------------+-----------+----------+------------+
| At 30 November 2008 | Fixed | Floating | Non |
| | | | interest |
+------------------------+-----------+----------+------------+
| | Interest | rate | bearing |
+------------------------+-----------+----------+------------+
| Sterling | GBP'000 | GBP'000 | GBP'000 |
+------------------------+-----------+----------+------------+
| Listed | 73 | - | - |
+------------------------+-----------+----------+------------+
| Unlisted and AIM/PLUS | 4,200 | - | 3,188 |
+------------------------+-----------+----------+------------+
| Cash | - | 102 | - |
+------------------------+-----------+----------+------------+
| | 4,272 | 102 | 3,188 |
+------------------------+-----------+----------+------------+
| | | | |
+------------------------+-----------+----------+------------+
| Ordinary Shares | | | |
+------------------------+-----------+----------+------------+
| At 30 November 2007 | Fixed | Floating | Non |
| | | | interest |
+------------------------+-----------+----------+------------+
| | Interest | rate | bearing |
+------------------------+-----------+----------+------------+
| Sterling | GBP'000 | GBP'000 | GBP'000 |
+------------------------+-----------+----------+------------+
| Listed | 800 | - | - |
+------------------------+-----------+----------+------------+
| Unlisted and AIM/PLUS | 3,667 | - | 4,851 |
+------------------------+-----------+----------+------------+
| Cash | - | 515 | - |
+------------------------+-----------+----------+------------+
| | 4,467 | 515 | 4,851 |
+------------------------+-----------+----------+------------+
The listed fixed interest assets have a weighted average life of 1.08 years
(2007: 0.02 years) and an average interest rate of 5.75% (2007: 7.25%) per
annum. The unlisted fixed interest assets have a weighted average life of 3.69
years (2007: 4.12 years) and weighted average interest rate of 8.71% (2007:
9.66%) per annum. Floating rate assets are cash balances held in interest
bearing accounts. The interest rate received on the interest bearing cash
balances was 2% (2007: 4%)The non-interest bearing assets represent the equity
element of the portfolio. All assets and liabilities of the Company are included
in the balance sheet at fair value.
+---------------------------+-----------+----------+----------+
| C Ordinary Shares | | | |
+---------------------------+-----------+----------+----------+
| At 30 November 2008 | Fixed | Floating | Non |
| | | | interest |
+---------------------------+-----------+----------+----------+
| | Interest | rate | bearing |
+---------------------------+-----------+----------+----------+
| Sterling | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+-----------+----------+----------+
| Listed | 4,496 | - | - |
+---------------------------+-----------+----------+----------+
| Unlisted and AIM/PLUS | 5,966 | - | 3,254 |
+---------------------------+-----------+----------+----------+
| Cash | - | 40 | - |
+---------------------------+-----------+----------+----------+
| | 10,462 | 40 | 3,254 |
+---------------------------+-----------+----------+----------+
| | | | |
+---------------------------+-----------+----------+----------+
| C Ordinary Shares | | | |
+---------------------------+-----------+----------+----------+
| At 30 November 2007 | Fixed | Floating | Non |
| | | | interest |
+---------------------------+-----------+----------+----------+
| | Interest | rate | bearing |
+---------------------------+-----------+----------+----------+
| Sterling | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+-----------+----------+----------+
| Listed | 6,804 | - | - |
+---------------------------+-----------+----------+----------+
| Unlisted and AIM/PLUS | 3,744 | - | 2,575 |
+---------------------------+-----------+----------+----------+
| Cash | - | 1,323 | - |
+---------------------------+-----------+----------+----------+
| | 10,548 | 1,323 | 2,575 |
+---------------------------+-----------+----------+----------+
The listed fixed interest assets have a weighted average life of 0.73 years
(2007: 0.62 years) and a average interest rate of 4.99% (2007: 4.75%) per annum.
The unlisted fixed interest assets have a weighted average life of 4.19 years
(2007: 4.83 years) and weighted average interest rate of 8.86% (2007: 10.49%)
per annum. Floating rate assets are cash balances held in interest bearing
accounts. The interest rate received on the interest bearing cash balances was
2% (2007: 4%)The non-interest bearing assets represent the equity element of the
portfolio. All assets and liabilities of the Company are included in the balance
sheet at fair value.
Maturity profile
The interest rate profile of the Company's financial assets at the balance sheet
date was as follows:
+---------------+---------+---------+---------+---------+---------+---------+---------+
| Ordinary | Within | Within | Within | Within | Within | More | |
| Shares | | | | | | than | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| | 1 | 1-2 | 2-3 | 3-4 | 4-5 | 5 | Total |
| | year | years | years | years | years | years | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| At 30 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| November 2008 | | | | | | | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| Fixed | | | | | | | |
| interest | | | | | | | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| Listed | 73 | - | - | - | - | - | 0 |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| Unlisted | 646 | 17 | 744 | 1,271 | 315 | 1,206 | 1,059 |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| | 719 | 17 | 744 | 1,271 | 315 | 1,206 | 1,059 |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| | | | | | | | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| | | | | | | | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| Ordinary | | | Within | | Within | | |
| Shares | | | | | | | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| | | | 2-3 | | 4-5 | | Total |
| | | | years | | years | | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| At 30 | | | GBP'000 | | GBP'000 | | GBP'000 |
| November 2007 | | | | | | | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| Fixed | | | | | | | |
| interest | | | | | | | |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| Listed | 800 | - | - | - | - | - | 0 |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| Unlisted | 195 | 63 | 139 | 794 | 1,381 | 1,095 | 1,520 |
+---------------+---------+---------+---------+---------+---------+---------+---------+
| | 995 | 63 | 139 | 794 | 1,381 | 1,095 | 1,520 |
+---------------+---------+---------+---------+---------+---------+---------+---------+
Within "more than 5 years" there is a figure of GBP40,000 (2007: GBP55,000) in
respect of preference shares which have no redemption date. It is the Directors'
opinion that the carrying amounts of these financial assets represent the
maximum credit risk exposure at the balance sheet date.
+---------------+---------+---------+---------+---------+----------+---------+---------+
| C Ordinary | Within | Within | Within | Within | Within | More | |
| Shares | | | | | | than | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| | 1 year | 1-2 | 2-3 | 3-4 | 4-5 | 5 | Total |
| | | years | years | years | years | years | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| At 30 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| November 2008 | | | | | | | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| Fixed | | | | | | | |
| interest | | | | | | | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| Listed | 4,496 | - | - | - | - | - | 4,496 |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| Unlisted | 720 | - | 311 | 2,088 | 465 | 2,382 | 5,966 |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| | 5,216 | - | 311 | 2,088 | 465 | 2,382 | 10,462 |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| | | | | | | | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| | | | | | | | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| C Ordinary | Within | Within | Within | Within | Within | More | |
| Shares | | | | | | than | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| | 1 year | 1-2 | 2-3 | 3-4 | 4-5 | 5 | Total |
| | | years | years | years | years | years | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| At 30 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| November 2007 | | | | | | | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| Fixed | | | | | | | |
| interest | | | | | | | |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| Listed | 6,804 | - | - | - | - | - | 6,804 |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| Unlisted | 135 | - | - | 378 | 1,976 | 1,255 | 3,744 |
+---------------+---------+---------+---------+---------+----------+---------+---------+
| | 6,939 | - | - | 378 | 1,976 | 1,255 | 10,548 |
+---------------+---------+---------+---------+---------+----------+---------+---------+
Within "more than 5 years" there is a figure of GBP33,000 (2007: GBP52,000) in
respect of preference shares which have no redemption date. It is the Directors'
opinion that the carrying amounts of these financial assets represent the
maximum credit risk exposure at the balance sheet date.
Liquidity risk
This is the risk that the Company will encounter difficulty in meeting
obligations associated with financial liabilities. The Company's financial
instruments include unlisted and AIM/PLUS traded investments which are not
traded in an organised public market and which generally may be illiquid. As a
result, the Company may not be able to liquidate quickly some of its investments
at an amount close to their fair value in order to meet its liquidity
requirements.
The Company's investment policy ensures that the Company has sufficient
investment in cash and readily realisable securities to meet its ongoing
obligations. At 30 November 2008 these investments were valued at GBP175,000
(2007: GBP1,315,000) in the Original pool and GBP4,536,000 (2007: GBP8,127,000)
in the C share pool.
The Company's investment policy ensures that the Company has sufficient
investment in cash and readily realisable securities to meet its ongoing
obligations. At 30 November 2008 these investments were valued at GBP175,000
(2007: GBP1,315,000) in the Original pool and GBP4,536,000 (2007: GBP8,127,000)
in the C share pool.
The Company has the power to take out borrowings, which gives it access to
additional funding when required.
Credit risk
This is the risk that a counterparty to a financial instrument will fail to
discharge an obligation or commitment that it has entered into with the Company.
The Company's financial assets exposed to credit risk amounted to the following:
+------------------+----------+----------+--------+--+----------+----------+---------+
| | 30 November 2008 | | 30 November 2007 |
+------------------+------------------------------+--+-------------------------------+
| | Ordinary | 'C' | Total | | Ordinary | 'C' | Total |
| | Shares | Ordinary | | | Shares | Ordinary | |
| | | Shares | | | | Shares | |
+------------------+----------+----------+--------+--+----------+----------+---------+
| | | | | | | | |
+------------------+----------+----------+--------+--+----------+----------+---------+
| Investments in | 73 | 4,496 | 4,569 | | 800 | 6,804 | 7,604 |
| listed fixed | | | | | | | |
| interest | | | | | | | |
| instruments | | | | | | | |
+------------------+----------+----------+--------+--+----------+----------+---------+
| Cash and cash | 102 | 40 | 142 | | 515 | 1,323 | 1,838 |
| equivalents | | | | | | | |
+------------------+----------+----------+--------+--+----------+----------+---------+
| | 175 | 4,536 | 4,711 | | 1,315 | 8,127 | 9,442 |
+------------------+----------+----------+--------+--+----------+----------+---------+
Credit risk arising on fixed interest instruments is mitigated by investing in
UK Government Stock.
All assets which are traded on a recognised exchange and all the Company's cash
balances are held by JP Morgan Chase (JPM), the Company's custodian. Should the
credit quality or the financial position of JPM deteriorate significantly the
Manager will move these assets to another financial institution.
There were no significant concentrations of credit risk to counterparties at 30
November 2008 or 30 November 2007.
Investment Portfolio Summary
As at 30 November 2008
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Investment | |Ordinary | | | C | | % of | % of |
| Name | | Pool | | | Share | |equity | equity |
| | | | | | Pool | | held | held |
| | | | | | | | | by |
| | | | | | | | | other |
| | | | | | | | |clients |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| |Valuation | Cost | % of |Valuation | Cost | % of | | |
| | | | total | | | total | | |
| | | | assets | | | assets | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Unlisted | | | | | | | | |
| Investments | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Funeral | 416 | 348 | 5.3% | 595 | 497 | 4.2% | 6.1% | 23.2% |
| Services | | | | | | | | |
| Partnership | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Dalglen 1148 | 411 | 411 | 5.2% | 569 | 569 | 4.0% | 15.5% | 64.2% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Training for | 341 | 298 | 4.3% | 483 | 423 | 3.4% | 8.2% | 23.1% |
| Travel | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Homelux | 319 | 149 | 4.1% | 439 | 205 | 3.1% | 8.1% | 38.4% |
| Nenplas | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Transys | 285 | 249 | 3.6% | 457 | 398 | 3.2% | 7.5% | 65.6% |
| Holdings | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Oliver Kay | 283 | 249 | 3.6% | 436 | 383 | 3.1% | 4.0% | 15.2% |
| Holdings | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Armannoch | 300 | 300 | 3.8% | 400 | 400 | 2.8% | 49.8% | 28.8% |
| Investments | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Valkyrie | 300 | 300 | 3.8% | 400 | 400 | 2.8% | 49.8% | 28.8% |
| Capital | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Atlantic | 95 | 75 | 1.2% | 570 | 447 | 4.0% | 2.9% | 4.1% |
| Foods | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Martel | 264 | 264 | 3.4% | 398 | 398 | 2.8% | 9.3% | 26.7% |
| Instruments | | | | | | | | |
| Holdings | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Camwatch | 257 | 257 | 3.3% | 393 | 393 | 2.8% | 10.9% | 34.9% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Nessco | 224 | 224 | 2.9% | 348 | 348 | 2.4% | 7.5% | 32.4% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Steminic | 223 | 223 | 2.8% | 338 | 338 | 2.4% | 9.6% | 38.7% |
| (trading as | | | | | | | | |
| MS | | | | | | | | |
| Industrial | | | | | | | | |
| Services) | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Silkwater | 207 | 149 | 2.6% | 346 | 249 | 2.4% | 5.4% | 15.5% |
| Holdings | | | | | | | | |
| (trading as | | | | | | | | |
| Cyclotech) | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Energy | 149 | 149 | 1.9% | 398 | 398 | 2.8% | 20.9% | 71.4% |
| Services | | | | | | | | |
| Investment | | | | | | | | |
| Company | | | | | | | | |
| (ESIC) | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Cash Bases | 500 | 250 | 6.4% | - | - | - | 8.3% | 20.2% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| TC | 174 | 174 | 2.2% | 299 | 299 | 2.1% | 9.8% | 29.5% |
| Communications | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Adler & | 188 | 175 | 2.4% | 269 | 249 | 1.9% | 0.8% | 38.2% |
| Allan | | | | | | | | |
| Holdings | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Enpure | 145 | 100 | 1.8% | 145 | 100 | 1.0% | 0.8% | 78.1% |
| Holdings | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Countcar | 90 | 7 | 1.1% | 135 | 10 | 0.9% | 5.7% | 23.3% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Essential | 188 | 209 | 2.4% | - | - | - | 6.7% | 34.1% |
| Viewing | | | | | | | | |
| Systems | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Llanllyr | 100 | 100 | 1.3% | - | - | - | 7.5% | 42.4% |
| Water | | | | | | | | |
| Company | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Sanastro | 98 | 275 | 1.2% | - | - | - | 3.5% | 9.6% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Lime | 33 | 33 | 0.4% | 42 | 42 | 0.3% | 23.8% | 69.3% |
| Investments | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Broomco | 31 | 31 | 0.4% | 41 | 41 | 0.3% | 0.5% | 1.7% |
| (4136) | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Buildstore | 52 | 105 | 0.7% | - | - | - | 0.6% | 6.8% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| PLM Dollar | 50 | 50 | 0.6% | - | - | - | 0.6% | 30.3% |
| Group | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Driver Hire | 40 | 119 | 0.5% | - | - | - | 0.6% | 44.1% |
| Investments | | | | | | | | |
| Group | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| PSCA | 32 | 32 | 0.4% | - | - | - | - | - |
| International | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| IRW Systems | 22 | 45 | 0.3% | - | - | - | 8.9% | 48.6% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Others | 30 | 1,548 | 0.4% | 54 | 139 | 0.4% | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| | 5,847 | 6,898 | 74.3% | 7,555 | 6,726 | 53.1% | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| AIM/PLUS | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Concateno | 119 | 124 | 1.5% | 281 | 315 | 2.0% | 0.8% | 0.2% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Animalcare | - | - | - | 299 | 245 | 2.1% | 2.3% | 2.3% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Melorio | 62 | 98 | 0.8% | 186 | 296 | 1.3% | 1.2% | 1.1% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Betbrokers | 115 | 126 | 1.5% | 115 | 126 | 0.8% | 0.8% | 0.7% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Avanti | 153 | 151 | 1.9% | - | - | - | 0.3% | 1.1% |
| Communications | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Praesepe | 58 | 98 | 0.7% | 87 | 147 | 0.6% | 5.8% | 8.9% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Plastics | 30 | 74 | 0.4% | 112 | 281 | 0.8% | 1.3% | 2.6% |
| Capital | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Mount Engineering | 93 | 112 | 1.2% | 41 | 49 | 0.3% | 1.0% | 1.5% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Craneware | 47 | 29 | 0.6% | 72 | 45 | 0.5% | 0.3% | 0.4% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Essentially | 21 | 49 | 0.3% | 97 | 182 | 0.7% | 1.1% | 2.1% |
| Group | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Hasgrove | 58 | 73 | 0.7% | 39 | 49 | 0.3% | 0.5% | 1.4% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Strategic | 93 | 117 | 1.2% | - | - | - | 0.3% | 3.7% |
| Retail | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Software | 90 | 273 | 1.1% | - | - | - | 0.9% | 1.7% |
| Radio | | | | | | | | |
| Technology | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Neuropharm | 90 | 100 | 1.1% | - | - | - | 0.2% | 0.5% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| DM | - | - | - | 78 | 126 | 0.5% | 0.6% | 0.8% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Optare | 31 | 53 | 0.4% | 47 | 79 | 0.3% | 0.6% | 0.7% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Litcomp | 41 | 81 | 0.5% | 36 | 71 | 0.3% | 4.9% | 2.0% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Datong | 74 | 151 | 0.9% | - | - | - | 0.9% | 1.1% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Formation | 23 | 64 | 0.3% | 31 | 83 | 0.2% | 0.4% | 0.9% |
| Group | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Axeon | 51 | 197 | 0.6% | - | - | - | 0.9% | 2.8% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Managed | 18 | 120 | 0.2% | 26 | 180 | 0.2% | 0.5% | 1.1% |
| Support | | | | | | | | |
| Services | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| OPG Power | 16 | 41 | 0.2% | 16 | 41 | 0.1% | 0.2% | 0.4% |
| Ventures | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Brulines | 21 | 21 | 0.3% | 11 | 10 | 0.1% | 0.1% | 0.2% |
| (Holdings) | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Individual | 20 | 78 | 0.3% | 12 | 47 | 0.1% | 0.3% | 0.9% |
| Restaurant | | | | | | | | |
| Company | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Smart | 15 | 25 | 0.2% | 15 | 25 | 0.1% | 1.4% | 4.6% |
| Identity | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Hexagon | 29 | 72 | 0.4% | - | - | - | 0.2% | 0.5% |
| Human | | | | | | | | |
| Capital | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Gold Frost | 28 | 130 | 0.4% | - | - | - | 0.7% | 0.7% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Work Group | 25 | 201 | 0.3% | - | - | - | 0.9% | 2.3% |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Others | 93 | 735 | 1.3% | 64 | 335 | 0.4% | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| | 1,514 | 3,393 | 19.3% | 1,665 | 2,732 | 11.7% | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Listed Fixed | | | | | | | | |
| Income | | | | | | | | |
| Investments | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Treasury | 73 | 71 | 0.9% | 2,536 | 2,488 | 17.8% | | |
| 5.75% 31 Dec | | | | | | | | |
| 2009 | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Treasury 4% | - | - | - | 1,960 | 1,943 | 13.8% | | |
| 7 March 2009 | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| | 73 | 71 | 0.9% | 4,496 | 4,431 | 31.6% | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| | | | | | | | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
| Total | 7,434 | 10,362 | 94.6% | 13,716 | 13,889 | 96.3% | | |
+--------------------+-----------+----------+---------+-----------+--------+---------+--------+---------+
Business Risks
Principal Risks and Uncertainties
The principal risks facing the Company relate to its investment activities and
include market price, interest rate and liquidity.
An explanation of these risks and how they are managed is contained in Note 19
to the financial statements. Additional risks faced by the Company, and the
mitigation approach adopted by the Board, are as follows:
(i) investment objective: the Board's aim is to maximise absolute returns
to shareholders while managing risk by ensuring an appropriate diversification
of investments.
(ii) investment policy: inappropriate stock selection leading to
underperformance in absolute and relative terms is a risk which the Manager
mitigates by operating within investment guidelines and regularly monitoring
performance against the peer group. The regulations affecting Venture Capital
Trusts are central to the Company's investment policy.
(iii) discount volatility: due to lack of liquidity in the secondary market,
venture capital trust shares tend to trade at discounts to net asset values
(iv) regulatory risk: the Company operates in a complex regulatory
environment and faces a number of related risks. A breach of section 842AA of
the Income and Corporation Taxes Act 1988 could result in the Company's being
subject to capital gains tax on the sale of its investments. A breach of the VCT
Regulations could result in the loss of VCT status and consequent loss of tax
reliefs currently available to shareholders. Serious breach of other
regulations, such as the UKLA Listing rules and the Companies Acts would also
result in loss of VCT status and reputational damage. The Board receives
quarterly reports from the Manager in order to monitor compliance with
regulations.
The Board considers all risks and the measures in place to manage them and
monitors their management at each meeting.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Annual Report, Directors'
Remuneration Report and the financial statements in accordance with applicable
law and regulations.
Company law requires the directors to prepare financial statements for each
financial year. Under that law the directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law).
The financial statements are required by law to give a true and fair view of the
state of affairs of the company and of the net return of the company for that
period. In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed,
subject to any material departures disclosed and explained in the financial
statements;
- prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the company will continue in business.
The directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
company and enable them to ensure that the financial statements comply with the
Companies Act 1985. They are also responsible for safeguarding the assets of the
company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate
and financial information included on the company's website. Legislation in the
United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Responsibility statement of the Directors in respect of the annual Financial
Report
We confirm that, to the best of our knowledge, the financial statements,
prepared in accordance with the applicable set of accounting standards and set
out on pages 30 to 33, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and the Directors' Report,
set out on pages 17 to 20, includes a fair review of the developments and
performance of the business and the position of the Company together with a
description of the principal risks and uncertainties that they face.
The financial information contained within this announcement does not constitute
the Company's statutory financial statements as defined in Section 240 of the
Companies Act 1985 and has not been delivered to the Registrar of Companies.
Statutory financial statements will be filed with the Registrar of Companies in
due course. The financial information for 2007 is derived from the statutory
accounts for 2007 which have been delivered to the Registrar of Companies. The
independent auditors' report on the financial statements under section 235 of
the Companies Act 1985 is unqualified and does not contain a statement under
section 237(2) or (3) of the Companies Act 1985. The statutory financial
statements for the year ended 30 November 2007 contain an audit report which was
unqualified and did not contain statements under Sections 237(2) or (3) of the
Companies Act 1985, and have been delivered to the Registrar of Companies.
The full annual financial report is available at the Company's
website: www.agovct.co.uk
For Aberdeen Growth Opportunities VCT PLC
Aberdeen Asset Management PLC, Secretaries
10 March 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
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