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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Close BR.PR.Vct | LSE:CPV | London | Ordinary Share | GB0002040060 | ORD 50P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 56.00 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 1324J
Close Brothers Protected VCT PLC
27 November 2008
27 November 2008
CLOSE BROTHERS PROTECTED VCT PLC
Half-yearly Financial Report for the six months ended 30 September 2008.
Close Brothers Protected VCT PLC ("the Company"), managed by Close Ventures Limited, today announces the half-yearly results for the six
months ended 30 September 2008. The announcement was approved by the Board of Directors on 27 November.
You may view the Half-yearly Financial Report at www.closeventures.co.uk by clicking on the 'Our Funds' section.
Investment Objectives
Close Brothers Protected VCT PLC commenced trading in April 1997. Within the overall aim of maximising the considerable tax benefits
available to shareholders in a venture capital trust, the Company's investment strategy was designed to meet the requirements of investors
who seek to protect the capital value of their investment whilst still providing an attractive level of return. Following shareholder
approvals in 2002 and 2005 to change the Company's investment policy; the investments made by Close Brothers Protected VCT PLC currently
fall into the following categories:
* Qualifying Asset-based Investments
These comprise investments principally in the hotel, leisure and residential development sectors, comprising a mixture of equity and
loan stock, with the loan stock normally holding a first charge over freehold or long leasehold property. This area now forms the focus of
the investment policy going forward.
* Qualifying AIM Investments
These comprise a residual portfolio of new ordinary shares issued by companies quoted on the Alternative Investment Market (AIM), which
is in the process of being wound down and re-invested in asset-based investments.
* Non-qualifying Investments
The remaining funds are invested in cash and floating rate notes with banks with a Moody's credit rating of at least A and above.
Financial Calendar
Record date for second dividend 5 December 2008
Payment of second dividend 9 January 2009
Financial year end 31 March 2009
Financial Highlights
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 30 September 31 March
2008 2007 2008
pence pence pence
Net asset value per share 83.8 99.4 92.6
Dividend paid 2.5 2.5 5.0
Revenue return per share 1.6 1.4 3.3
Capital return per share (7.9) (0.5) (6.8)
Total shareholder net asset value return to 30 September 2008: pence per share
Dividends paid during the period ended 31 March 1998 1.10
Dividends paid during the year ended 31 March1999 (ii) 6.40
Dividends paid during the year ended 31 March 2000 1.50
Dividends paid during the year ended 31 March 2001 4.25
Dividends paid during the year ended 31 March 2002 2.75
Dividends paid during the year ended 31 March 2003 2.00
Dividends paid during the year ended 31 March 2004 1.25
Dividends paid during the year ended 31 March 2005 2.20
Dividends paid during the year ended 31 March 2006 (iii) 4.50
Dividends paid during the year ended 31 March 2007 4.00
Dividends paid during the year ended 31 March 2008 5.00
Dividends paid during the period ended 30 September 2008 2.50
Total dividends paid to 30 September 2008 37.45
Net asset value per share as at 30 September 2008 (i) 83.80
Total cumulative shareholder return at 30 September 2008 121.25
In addition to the above dividends, the Company will pay a second dividend from revenue profits of 2.0 pence per share on 9 January 2009
to shareholders on the register as at 5 December 2008.
(i) Dividends paid before 5 April 1999 were paid to qualifying shareholders inclusive of the associated tax credit. The dividends for
the year to 31 March 1999 were maximised in order to take advantage of this tax credit.
(ii)The above table excludes the tax benefits investors received upon subscription for shares in the company.
(iii) Total dividend for the period to 31 March 2006 reflects the adoption of FRS 21 which requires that only dividends paid or approved
by shareholders be disclosed in each period.
Interim Management Report
Introduction
The decline in performance since the preceding financial year has continued in line with the worsening general economic environment in
the UK where all of our investee companies are located. The Company saw a negative total return of 6.3 pence per share for the six months to
30 September 2008 resulting in a decline in net asset value to 83.8 pence per share. This was mainly a result of our cautious view on the
investment valuations as at the period end, in the light of a decline in the market, the level of valuation multiples, and the slowdown in
the general UK economy seen during the autumn. This, in turn, has led to downward revisions of our investee companies' trading forecasts.
Investment Progress, Performance and Prospects
Some £1.3m has been invested into six existing investee companies and one new investee company during the period. There were, however, a
variety of realisations including £660,000 returned from our residential development investments, £140,000 in loan stock repayments from our
hotel at Stansted and £18,900 from the sale of AIM investments. Since the period end, a further £188,825 has been realised through the sale
of AIM investments.
To date, trading across our portfolio of companies has been reasonably resilient. Certain companies, however, have seen a sharper fall
from their previous strong trading levels, particularly over the last three months. These include some of our hotels, which have been
responsible for the majority of our investment write-downs.
We think that it is unlikely that we will sell our Stansted Hotel at the current time due to adverse market conditions, and the
resulting absence of realised capital gains has meant that our dividend objective of 5.0 pence per annum will not be reached this year, and
is unlikely to be reached next year.
Split of portfolio valuation by sector, as at 30 September 2008
http://www.rns-pdf.londonstockexchange.com/rns/1324J_1-2008-11-27.pdf
Recovery of Historic VAT
Following intensive lobbying by the Association of Investment Companies, the welcome review of the position regarding the exemption of
management fees from VAT by HM Revenue & Customs in July 2008 has meant that the Manager is able to reclaim historic VAT that it had
previously charged to the Company.
The Board has been in discussions with the Manager regarding the claim, and a sum of £171,000 (after tax) has been credited to the
accounts in respect of the prospective repayment, though the final settlement may be a little higher than this. Further details regarding
this claim, and its disclosure, are shown in note 5 to the Half-yearly Financial Report. With effect from 1 October 2008, all management and
administration fees are considered exempt from VAT.
Related party transactions
Details of material related party transactions for the reporting period can be found in Note 14 to the Half-yearly Financial Report.
Risks and uncertainties
The negative outlook for the UK economy continues to be the key risk affecting your Company and, as mentioned above, we are beginning to
see the effects of this in certain sectors of the portfolio. Nevertheless, the portfolio as a whole remains cash generative, while no
investee company has external bank borrowings. This leads us to believe that, over the longer term, the current reductions in valuation
represent value deferred rather than value permanently lost. Meanwhile, opportunities within our target sectors continue to arise at
attractive valuations, including the healthcare sector which will be one of our core areas of concentration going forward. Other risks and
uncertainties remain unchanged and are as detailed on page 16 of the Annual Report and Financial Statements for the year ended 31 March 2008
which can be found on our Manager's website www.closeventures.co.uk. These include investment risk, venture capital trust approval risk,
internal control risk, reliance upon third party risk and financial risk.
Results and dividends
As at 30 September 2008, the net asset value was £17.6 million or 83.8 pence per share compared to £19.6 million or 92.6 pence per share
as at 31 March 2008 and £21.4 million or 99.4 pence per share as at 30 September 2007. Revenue return before taxation was £453,000 for the
period compared to £447,000 for the period to 30 September 2007. The Board now declares a second dividend of 2.0 pence per share (from
revenue profits) which will be paid on 9 January 2009 to shareholders on the register on 5 December 2008. This brings the total dividend for
the year to 4.5 pence per share (year ended 31 March 2008: 5.0 pence per share).
Martin Bralsford
Chairman
27 November 2008
Responsibility Statement
The Directors have chosen to prepare this Half-yearly Financial Report for the Company in accordance with United Kingdom Generally
Accepted Accounting Practice ("UK GAAP").
In preparing these summarised financial statements for the period to 30 September 2008, the Directors of the Company confirm that to the
best of their knowledge:
(a) the summarised set of financial statements has been prepared in accordance with the pronouncement on interim reporting issued by the
Accounting Standards Board;
(b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and uncertainties for the remaining six months of the year);
(c) the summarised set of financial statements give a true and fair view in accordance with UK GAAP of the state of affairs of the
Company and of the profit and loss of the Company for that period and comply with UK GAAP and Companies Act 1985 as required by DTR 4.2.4R;
and;
(d) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
This Half-yearly Financial Report has not been audited or reviewed by the auditors.
By order of the Board
Martin Bralsford
Chairman
27 November 2008
Summary Income Statement
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 30 September 31 March
2008 2007 2008
Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on investments 3 - (1,685) (1,685) - 9 9 - (1,303) (1,303)
Investment income 4 531 - 531 636 - 636 1,176 - 1,176
Investment management fees (49) (147) (196) (60) (180) (240) (114) (340) (454)
Recovery of VAT 5 61 182 243 - - - - - -
Other expenses (90) - (90) (129) - (129) (250) - (250)
Return/(loss) on ordinary 453 (1,650) (1,197) 447 (171) 276 812 (1,643) (831)
activities before tax
Tax (charge)/credit on (118) (10) (128) (131) 59 (72) (67) 124 57
ordinary activities
Return/(loss) attributable to 335 (1,660) (1,325) 316 (112) 204 745 (1,519) (774)
shareholders
Basic and diluted 1.6 (7.9) (6.3) 1.4 (0.5) 0.9 3.3 (6.8) (3.5)
return/(loss) per share
(pence)*
7
* treating Treasury shares as if cancelled
Comparative figures have been extracted from the unaudited Half-yearly Financial Report for the six months ended 30 September 2007 and
the audited statutory accounts for the year ended 31 March 2008.
The accompanying notes form an integral part of this Half-yearly Financial Report.
All revenue and capital items in the above statement derive from continuing operations.
The company has no recognised gains or losses other than those disclosed above. Accordingly a statement of total recognised gains or
losses is not required.
The total column of this Income Statement represents the profit and loss account of the Company in each respective period. The
supplementary revenue and capital return columns have been prepared in accordance with the Association of Investment Trust Companies
Statement of Recommended Practice.
Note of Historical Cost Profits and Losses
Unaudited Unaudited Audited
six months ended 30 six months ended year ended
September 30 September 31 March
2008 2007 2008
£'000 £'000 £'000
(Loss)/return on ordinary (1,197) 276 (831)
activities before taxation
Add back: unrealised losses on 1,684 720 1,931
investments
Historical cost return on 487 996 1,100
ordinary activities before
taxation
Historical cost (loss)/return (169) 326 21
for the period after taxation
and dividends
Summary Balance Sheet
Note Unaudited Unaudited Audited
30 September 30 September 31 March
2008 2007 2008
£'000 £'000 £'000
Fixed asset investments
Qualifying investments 16,239 19,492 17,589
Non-qualifying investments 96 6 1
8 16,335 19,498 17,590
Current assets
Debtors 277 62 127
Cash at bank 12 1,319 2,239 2,035
1,596 2,301 2,162
Current liabilities
Creditors: amounts falling due within one (318) (382) (178)
year
Net current assets 1,278 1,919 1,984
Net assets 17,613 21,417 19,574
Called up share capital 9 11,675 11,965 11,771
Share premium 2 - -
Special reserve 8,709 9,213 8,886
Capital redemption reserve 2,271 1,973 2,167
Realised capital reserve (115) 445 (139)
Unrealised capital reserve (3,100) (205) (1,416)
Treasury shares reserve 10 (2,286) (2,345) (2,345)
Revenue reserve 457 371 650
17,613 21,417 19,574
Total equity shareholders funds
83.8 99.4 92.6
Net asset value (pence per share)*
* treating Treasury shares as if cancelled
Comparative figures have been extracted from the unaudited Half-yearly Financial Report for the six months ended 30 September 2007 and
the audited statutory accounts for the year ended 31 March 2008.
The accompanying notes form an integral part of this Half-yearly Financial Report.
The financial statements were approved and authorised for issue by the Board of Directors on 27 November 2008.
Signed on behalf of the Board of Directors by
Martin Bralsford
Chairman
Summary Reconciliation of Movements in Shareholders' Funds
Called up share capital £'000 Share Special reserve £'000 Capital redemption
reserve £'000 Realised capital reserve £'000 Unrealised capital reserve Treasury shares reserve Revenue reserve
premium
£'000 £'000 £'000
£'000
Total £'000
As at 1 April 2008 11,771 - 8,886
2,167 (139) (1,416) (2,345) 650 19,574
Issue of equity (net of costs) 8 2 -
- - - - - 10
Purchase of own shares for cancellation (74) - (118)
74 - - - - (118)
Cancellation of shares from the Treasury shares (30) - (59)
30 - - 59 - -
reserve
Capitalised investment management fees - - -
- (147) - - - (147)
VAT recoverable on management fees - - -
- 182 - - - 182
Taxation - - -
- (10) - - - (10)
Realised losses on investments - - -
- (1) - - - (1)
Unrealised losses on investments - - -
- - (1,684) - - (1,684)
Revenue return attributable to shareholders - - -
- - - - 335 335
Dividend paid - - -
- - - - (528) (528)
As at 30 September 2008 2 8,709
2,271 (115) (3,100) (2,286) 457 17,613
11,675
Called up share capital £'000 Share premium £'000 Special reserve £'000 Capital
redemption reserve £'000 Realised capital reserve £'000 Unrealised capital reserve Treasury shares reserve £'000 Revenue reserve £'000
£'000
Total £'000
As at 1 April 2007 12,116 - 9,476
1,822 101 515 (250) 390
24,170
Cancellation of shares from the Treasury shares (151) - (263)
151 - - 250 -
(13)
reserve
- - -
- - - (2,345) -
(2,345)
Purchase of own shares for Treasury
- - -
- (180) - - -
(180)
Capitalised investment management fees
- - -
- 59 - - -
59
Taxation
- - -
- 729 - - -
729
Realised gains on investments
- - -
- - (720) - -
(720)
Unrealised losses on investments
- - -
- - - - 316
316
Revenue return attributable to shareholders
- - -
- (263) - - (335)
(598)
Dividend paid
As at 30 September 2007 -
11,965 9,213
1,973 445 (205) (2,345) 371
21,417
Called up share capital £'000 Special reserve £'000 Capital redemption reserve £'000
Realised capital reserve Unrealised capital Treasury shares reserve £'000 Revenue reserve
£'000 reserve £'000
£'000
Total
£'000
As at 1 April 2007 12,116 9,476 1,822
101 515 (250) 390 24,170
Purchase of own shares for cancellation (345) (590) 345
- - 250 - (340)
Purchase of own shares for Treasury - - -
- - (2,345) - (2,345)
Capitalised investment management fees - - -
(180) - - - (180)
Taxation
59 - - - 59
Realised gains on investments - - -
729 - - - 729
- - -
- (1,931) - - (1,931)
Unrealised losses on Investments
- - -
- - - 745 745
Revenue return attributable to shareholders
- - -
(651) - - (485) (1,136)
Dividends paid
As at 31 March 2008 11,771 8,886 2,167
(139) (1,416) (2,345) 650 19,574
Summary Cash Flow Statement
Note Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 30 September 31 March
2008 2007 2008
£'000 £'000 £'000
Operating activities
Investment income received 526 419 934
Deposit interest received 34 105 160
Investment management fees paid (203) (254) (488)
Other cash payments (109) (135) (237)
Net cash inflow from operating activities 11 248 135 369
Taxation
UK corporation tax received/(paid) 148 123 (3)
Capital expenditure and financial investment
Purchase of investments (1,303) (1,968) (1,984)
Disposals of investments 819 3,669 4,238
Net cash (outflow)/inflow from investing (484) 1,701 2,254
activities
Equity dividends paid 6
Revenue dividends paid (528) (335) (485)
Capital dividends paid - (263) (651)
Net cash (outflow)/inflow before financing (616) 1,361 1,484
Financing
Issue of equity 14 - -
Purchase of own shares (114) (2,357) (2,684)
Net cash outflow from financing (110) (2,357) (2,684)
Decrease in cash in the period 12 (716) (996) (1,200)
Notes to the summarised Financial Statements for the six months to 30 September 2008
1. Accounting convention
The financial statements have been prepared in accordance with the historical cost convention, modified to include the revaluation of
investments, in accordance with applicable United Kingdom law and accounting standards and with the Statement of Recommended Practice
"Financial Statements of Investment Trust Companies" ("SORP") issued by the Association of Investment Trust Companies ("AITC") in January
2003 and revised in December 2005. Accounting policies have been applied consistently in current and prior periods.
2. Accounting policies
Quoted and unquoted equity investments
In accordance with FRS 26 "Financial Instruments: Recognition and Measurement", quoted and unquoted equity investments are designated as
fair value through profit or loss ("FVTPL"). Investments listed on recognised exchanges are valued at the closing bid prices at the end of
the accounting period. Unquoted investments' fair value is determined by the Directors in accordance with the International Private Equity
and Venture Capital Valuation Guidelines ("IPEVCV" guidelines).
Fair value movements on equity investments and gains and losses arising on the disposal of investments are reflected in the capital
column of the Income Statement in accordance with the AITC SORP. Realised gains or losses on the sale of investments will be reflected in
the Realised capital reserve, and unrealised gains or losses arising from the revaluation of investments will be reflected in the Unrealised
capital reserve.
Unquoted loan stock
Unquoted loan stock is classified as loans and receivables in accordance with FRS 26 and carried at amortised cost using the Effective
Interest Rate method ("EIR") less impairment. Movements in the amortised cost relating to interest income are reflected in the revenue
column of the Income Statement, and hence are reflected in the Revenue reserve, and movements in respect of capital provisions are reflected
in the capital column of the Income Statement, and are reflected in the Realised capital reserve following sale, or in the Unrealised
capital reserve on revaluation.
Loan stocks which are not impaired or past due are considered fully performing in terms of contractual interest and capital repayments
and the Board does not consider that there is a current likelihood of a shortfall on security cover for these assets. For unquoted loan
stock, the amount of the impairment is the difference between the asset's cost and the present value of estimated future cash flows,
discounted at the effective interest rate.
Investments are recognised as financial assets on legal completion of the investment contract and are derecognised on legal completion
of the sale of an investment. Loan stock accrued interest is recognised in the Balance Sheet as part of the carrying value of the loans and
receivables at the end of each reporting period.
It is not the Company's policy to exercise control or significant influence over investee companies. Therefore in accordance with the
exemptions under FRS 9 "Associates and joint ventures", those undertakings in which the Company holds more than 20 per cent. of the equity
are not regarded as associated undertakings.
Investment income
Unquoted equity income
Dividend income is included in revenue when the investment is quoted ex-dividend.
Unquoted loan stock income
Fixed returns on non-equity shares and debt securities are recognised on a time apportionment basis using an effective interest rate
over the life of the financial instrument.
Bank interest income
Interest income is recognised on an accruals basis using the rate of interest agreed with the bank.
Floating Rate Note Income
Floating rate note income is recognised on an accruals basis using the interest rate applicable to the floating rate note at that time.
Investment management fees and other expenses
All expenses have been accounted for on an accruals basis. Expenses are charged through the Revenue account except the following which
are charged through the Realised capital reserve:
* 75 per cent. of Management fees are allocated to the capital account to the extent that these relate to an enhancement in the value of
the investments. This is in line with the Board's expectation that over the long term 75 per cent. of the Company's investment returns will
be in the form of capital gains; and
* expenses which are incidental to the purchase or disposal of an investment are charged through the Realised capital reserve.
Taxation
Taxation is applied on a current basis in accordance with FRS 16 "Current tax". Taxation associated with capital expenses is applied in
accordance with the SORP. In accordance with FRS 19 "Deferred tax", deferred taxation is provided in full on timing differences that result
in an obligation at the balance sheet date to pay more tax or a right to pay less tax, at a future date, at rates expected to apply when
they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in
taxation computations in periods different from those in which they are included in the financial statements.
Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered.
The specific nature of taxation of venture capital trusts means that it is unlikely that any deferred tax will arise. The Directors have
considered the requirements of FRS 19 and do not believe that any provision should be made.
Performance incentive fee
In the event that a performance incentive fee crystallises, the fee will be allocated between Revenue and Realised capital reserves
based upon the proportion to which the calculation of the fee is attributable to revenue and capital returns.
Reserves
Realised capital reserves
The following are disclosed in this reserve:
* gains and losses compared to cost on the realisation of investments;
* expenses, together with the related taxation effect, charged in accordance with the above policies; and
* capital dividends paid to equity holders.
Unrealised capital reserves
Increases and decreases in the valuation compared to cost of investments held at the year end are disclosed in this reserve.
Special reserve
This reserve is distributable and amongst other purposes can be used for making market purchases and subsequent cancellation of own
shares, the offsetting of losses to enable the Company to pay dividends, and other distributable purposes.
Capital redemption reserve
This reserve accounts for amounts by which the issued share capital is diminished through the repurchase and cancellation of the
Company's own shares.
Share premium account
This reserve accounts for the difference between the nominal value of the new shares issued and the issue price less any costs
associated with the issue of share capital.
Treasury shares reserve
This reserve accounts for amounts by which the distributable reserves of the Company are diminished through the repurchase of the
Company's own shares for Treasury.
Dividends
In accordance with FRS 21 "Events after the balance sheet date", dividends declared by the Company are accounted for in the period in
which the dividend has been paid or approved by shareholders in an Annual General Meeting.
3. (Losses)/gains on investments
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 30 September 31 March
2008 2007 2008
£'000 £'000 £'000
Unrealised losses on (1,589) (720) (1,922)
investments held at fair value
through profit or loss account
Unrealised impairments on (95) - (9)
investments held at amortised
cost
Unrealised losses sub-total (1,684) (720) (1,931)
Realised (losses)/gains on (1) 729 630
investments held at fair value
through profit or loss account
Commission on purchase or - - (2)
disposal of investments held
at fair value through profit
or loss account
(1,685) 9 (1,303)
4. Investment income
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 30 September 31 March
2008 2007 2008
£'000 £'000 £'000
Income recognised on
investments held at fair value
through profit or loss account
16 14 18
UK Dividend income
Management fees received from 18 45 63
equity investments
Floating rate note interest - 22 22
Bank deposit interest income 33 77 132
67 158 235
Income recognised on
investments held at amortised
cost
Return on loan stock 464 478 941
investments
531 636 1,176
All of the Company's income is derived from operations based in the United Kingdom.
5. Recovery of VAT
HM Revenue & Customs issued a business briefing on 24 July 2008 which permitted the recovery of historic VAT that had been charged on
management, performance and administration fees, and which made these fees exempt from VAT with effect from 1 October 2008.
The Manager, Close Ventures Limited has made a claim for the historic VAT that Close Brothers Protected VCT PLC has paid on management
and administration fees. On the basis of information provided to the Board, the Directors believe that it is virtually certain that the
Company will, in the short term, receive a repayment from the Manager of historic VAT of not less than £171,000 (net of tax).
An amount of £243,000 recoverable from the Manager has been recognised as a separate item in the Income Statement, allocated between
revenue and capital return in the same proportion as that at which the original VAT has been charged. An additional tax charge of £72,000 is
payable on this recovery of historic VAT and this is reflected within the tax charge shown in the Income Statement. At 30 September 2008 the
amount due to Close Brothers Protected VCT PLC from Close Ventures Limited in respect of the historic VAT claim was £243,000.
It is possible that further amounts may be recoverable in due course, but the Directors are at this stage unable to quantify the amounts
involved.
6. Dividends
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 30 September 31 March
2008 2007 2008
£'000 £'000 £'000
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Dividend paid on 22 August 528 - 528 - - - - - -
2008 - 2.5 pence per share
Dividend paid on 10 August - - - 335 263 598 335 263 598
2007 - 2.5 pence per share
Dividend paid on 4 January - - - - - - 150 388 538
2008 - 2.5 pence per share
528 - 528 335 263 598 485 651 1,136
In addition to the dividends paid above, the Board has declared a second dividend of 2.0 pence per share from revenue profits
(£453,000). The dividend will be payable on 9 January 2009 to the shareholders on the register on 5 December 2008.
7. Basic and diluted return/(loss) per share
Return per share has been calculated on 21,123,824 Ordinary shares excluding Treasury shares (30 September 2007: 23,253,632; 31 March
2008: 22,281,375) being the weighted average number of shares in issue for the period.
There are no convertible instruments, derivatives or contingent share agreements in issue for Close Brothers Protected VCT PLC hence
there are no dilution effects to the return per share. The basic return per share is therefore the same as the diluted return per share.
Return per share calculations treat Treasury shares as if they had been cancelled.
8. Investments
Investments held at fair value through profit or loss total £5,986,000 (30 September 2007: £8,538,000; 31 March 2008: £7,155,000).
Investments held at amortised cost total £10,349,000 (30 September 2007: £10,960,000; 31 March 2008: £10,435,000).
9. Share capital
Unaudited Unaudited Audited
six months ended 30 six months ended 30 Year ended
September September 31 March
2008 2007 2008
£'000 £'000 £'000
Authorised
50,000,000 Ordinary shares of 25,000 25,000 25,000
50p each (30 September 2007
and 31 March 2008: 50,000,000)
Allotted, called up and fully
paid
23,350,529 Ordinary shares of 11,675 11,965 11,771
50p each (30 September 2007:
23,929,901 and 31 March 2008:
23,542,956)
Allotted, called up and fully
paid excluding Treasury shares
21,017,574 Ordinary shares of 10,562 10,768 10,575
50p each (30 September 2007:
21,536,946; 31 March 2008:
21,150,001)
On 15 August 2008, 16,646 Ordinary shares of 50 pence nominal value were issued under the terms of the Dividend Reinvestment Scheme at a
price of 90.1 pence. Additional information regarding the Dividend Reinvestment Scheme can be found in the Annual Report and Financial
Statements for the year ended 31 March 2008 and at www.closeventures.co.uk, under the 'Our Funds' section. During the six month period a
total of 149,073 shares (30 September 2007: nil; 31 March 2008: 386,945) were purchased for cancellation at a cost of £118,543 (30 September
2007: £nil; 31 March 2008: £326,665).
10. Treasury shares reserve
During the period to 30 September 2008 the Company cancelled 60,000 Ordinary shares (30 September 2007: 301,270; 31 March 2008: 301,270)
from the Treasury shares reserve at a cost of £58,800 (30 September 2007: £262,678; 31 March 2008: £262,678). The total number of Ordinary
shares held in Treasury as at 30 September 2008 was 2,332,955 representing 10.0 per cent. of the share capital as at 30 September 2008.
11. Reconciliation of return on ordinary activities before taxation to net cash inflow from operating activities
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 30 September 31 March2008
2008 2007 £*000
£*000 £*000
Revenue on ordinary activities 453 447 812
before tax
Investment management fees (147) (180) (340)
charged to capital
Recovery of VAT 182 - -
Movement in loan stock 38 (110) (72)
carrying value
Increase in operating debtors (251) (10) (16)
Decrease in operating (27) (12) (15)
creditors
Net cash inflow from operating 248 135 369
activities
12. Analysis of changes in cash during the period
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 30 September 31 March
2008 2007 2008
£'000 £'000 £'000
Opening cash balances 2,035 3,235 3,235
Net cash outflow (716) (996) (1,200)
Closing cash balances 1,319 2,239 2,035
13. Contingencies, guarantees and financial commitments
As at 30 September 2008 the Company has given no guarantees to banking institutions in respect of the borrowings of investee companies
(30 September 2007: nil; 31 March 2008: nil).
14. Related Party Transactions
The Manager, Close Ventures Limited, is considered to be a related party by virtue of the fact that it is party to a management
agreement with the Company. During the period, services of a total value of £196,000 (30 September 2007: £240,000; 31 March 2008: £454,000)
were purchased by the Company from Close Ventures Limited in relation to management fees and £16,000 (30 September 2007: £16,000; 31 March
2008: £33,000) in relation to company secretarial and administration services. At the financial period end, the amount due to Close Ventures
Limited disclosed as accruals and deferred income was £98,000 (30 September 2007: £139,000; 31 March 2008: £123,000).
As detailed in Note 9, the buy-back of Ordinary shares during the period was transacted through Winterflood Securities Limited, a
subsidiary of Close Brothers Group plc, the ultimate parent company. At the financial period end there was a balance of £4,740 (30 September
2007: £nil; 31 March 2008: £nil) between the Company and Winterflood Securities Limited.
Patrick Reeve is a Director of the Company and Managing Director of Close Ventures Limited, the Manager of the Fund. During the period,
Close Ventures Limited received Director's fees of £8,812 (30 September 2007: £8,812; 31 March 2008: £17,625) in respect of the services of
Patrick Reeve. At the financial period end, the amount due to Close Ventures Limited in respect of these fees, disclosed as accruals and
deferred income was £4,406 (30 September 2007: £6,983; 31 March 2008: £2,577).
The amount due from Close Ventures Limited to the Company in respect of historic VAT claims can be found in Note 5.
15. Other information
The information set out in this Half-yearly Financial Report does not constitute the Company's statutory accounts within the terms of
section 240 of the Companies Act 1985 for the period ended 30 September 2008 and 30 September 2007, and is unaudited. The information for
the year ended 31 March 2008 does not constitute statutory accounts within the terms of section 240 of the Companies Act 1985 and is derived
from the statutory accounts for the financial year, which have been delivered to the Registrar of Companies. The auditors reported on those
accounts; their report was unqualified and did not contain a statement under s237 (2) or (3) of the Companies Act 1985.
16. Publications
This Half-yearly Financial Report is being sent to shareholders and copies will be made available to the public at the registered office
of the Company, Companies House, the FSA viewing facility and also electronically at www.closeventures.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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