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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Ortus Vct | LSE:ORT | London | Ordinary Share | GB0003945101 | 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% | 25.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMORT
RNS Number : 3753Q
Ortus VCT PLC
18 October 2011
Ortus VCT
Half-yearly Report
For the six months ended 31 August 2011
Interim Management Report
Overview
When the Maven team took responsibility for your Company's portfolio in December 2006 there was a clear and identifiable need to improve the revenue position and achieve a broader asset base. A strategy was implemented to address both the over-concentration in a small number of relatively large assets and the lack of cash available for investment in new and yielding private company assets. In less than five years the Company has made 21 new, income-generating, later-stage growth investments at a total cost of GBP3.5m. In the same period, the portfolio has benefited from 3 private company exits and a number of selected AIM realisations which have generated total proceeds of GBP4.3m and enabled the Company to participate in all private company investments made by Maven VCT clients from 2009 onwards. That said, 75% of the portfolio by value remains invested in legacy assets, so there is still work to do in achieving a balanced portfolio.
Despite the challenges facing smaller businesses operating in the UK, the majority of your Company's new private company assets are trading well, with cash-generative business models and only modest levels of external debt, factors which contribute significantly to mitigating the risk of corporate failure in an uncertain economic environment.
Highlights for the six months:
-- NAV of 40.7p per share as at 31 August 2011, up 1.2% over six months
-- revenue generation of 0.26p per share for the six months
-- three substantial new investments during the period
-- the exit of Dalglen 1150 (Walker Technical Resources) achieved a 2.9x return and an IRR of
70%.
Dividends
Although there is an increase in recognised revenue for the period under review, no dividend can be recommended until such time as the deficit on the revenue account is further reduced and cash becomes available for distribution.
Principal risks and uncertainties
The Board has reviewed the principal risks and uncertainties facing the Company for the second half of its financial year. These are unchanged from those it faced at the start of the year, which are set out in the Annual Report, and are the risks involved in investment in small and unquoted companies. In order to reduce the exposure to investment risk, the Company has invested in a broadly-based portfolio of established UK private company investments.
The Company is also required to satisfy the HMRC 70% qualifying and other tests on a continuous basis. The Board regularly reviews the VCT qualifying status of the portfolio and is pleased to confirm that all criteria continue to be met.
Manager's strategy
The investment strategy is to continue reducing the legacy portfolio concentration in a small number of non-yielding and low-yielding assets, which the Manager believes will provide both a revenue base capable of supporting future dividends and the liquidity required to make further investments. Although it should also be noted that the large exposures in the inherited legacy portfolio continue to create a risk profile which is at odds with the overall diversified portfolio preferred by the Manager.
Maven deal teams operate from regional offices in Glasgow, London, Aberdeen, Edinburgh, Manchester and Birmingham and continue to see a high level of attractive investment opportunities across the country, as growth businesses seek out alternative sources of funding in the face of the continued scarcity of bank finance. The Maven investment process is highly selective and employs strict quality and yield generation criteria in reviewing every potential investment. During 2010, Maven executives saw 382 private company transactions across the UK and invested ultimately in seven later-stage companies.
Investment activity
A total of GBP541,000 was invested during the six month period ended 31 August 2011, including three new private company assets and five follow-on investments where additional funding has helped to support the growth of existing portfolio companies. One further new private company investment was made after the period end.
Details of all investments completed during the period are noted in the table below:
Investment Investment Date Sector cost GBP'000 Unlisted Oil equipment ATR Holdings Jul 11 services 2 Claven Holdings Limited Apr 11 Financial services 3 Glacier Energy Services Oil equipment Group Limited Mar 11 services 99 Lemac No. 1 Limited (trading as John Automobiles McGavigan Limited) Jul 11 and parts 43 Space Student Living Limited Jun 11 Support services 99 TC Communications Holdings Limited May 11 Support services 54 Torridon Capital Limited Apr 11 Financial services 74 Tosca Penta Exodus Telecommunication Limited Jun 11 services 150 Total Unlisted 524 -------------- AIM Marwyn Management Investment Partners Jul 11 company 17 Total AIM 17 -------------- Total 541 ==============
Ortus VCT has co-invested in the three new transactions with other clients of the Manager, and is expected to continue to do so.
Portfolio developments
Most of the new private companies in the portfolio have traded within an acceptable range of budget throughout the six month period, and in a number of cases it has been appropriate to increase valuations accordingly. In line with the objective of increasing the size and breadth of the private company portfolio, the Manager has continued to manage the remaining legacy assets with the aim of making disposals for value when appropriate opportunities arise. At the period end, the portfolio comprises 31 private companies and 7 AIM or PLUS quoted investments, at a total cost of GBP7.9 million with a VCT qualifying level of 88%.
The three new private company investments completed during the period under review were:
-- Glacier Energy Services, an oil & gas services group with two specialist trading subsidiaries, Roberts Pipeline Machining (Roberts) and Wellclad. Roberts designs and manufactures on-site portable cutting machines for blue chip oil & gas clients. Wellclad provides services to the European offshore and subsea equipment market. Glacier will focus on growth within its core UK market as well as promoting its technologies to the international energy services market.
-- Space Student Living, a provider of contracted management services across the student housing sector, offering a fully integrated accommodation solution covering a range of activities from the initial identification of sites, through overseeing the planning and development phases, to ultimately managing the accommodation under long term contract.
-- Tosca Penta Exodus, a new partnership established by Penta Capital to implement a buy-and-build strategy in the business telecommunications service sector based on the converging of mobile, fixed-line, broadband, internet and IT technology businesses. Penta is an established private equity firm with which Maven previously co-invested in the successful 2010 management buy-out of esure.
There were two private company exits during the period:
-- LG & DE was sold during March 2011. In the view of the Manager this was the most vulnerable of the non-yielding legacy investments and was realised for consideration of GBP958,000.
-- The investment in Dalglen 1150 (Walker Technical Resources) was realised in July 2011, just two years after Maven led the management buy-in. Total proceeds over the life of the investment were GBP571,000, representing a 2.9x return on the initial investment cost and an IRR of 70%. It is worth noting that the positive impact on the NAV would have been much more pronounced had the Company had the liquidity to participate at a greater level.
As a further step in reshaping the portfolio, the Manager has also sought to reduce exposure to the quoted markets, through the continued structured realisation of the AIM portfolio.
The table below gives details of realisations during the reporting period:
Cost of Value at Gain/(loss) Date Complete/ shares 28 over 28 first partial disposed February Sales Realised February invested exit of 2011 proceeds gain/(loss) 2011 value GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------ --------- ---------- --------- --------- --------- ------------ ------------ Unlisted Atlantic Foods Group 2008 Partial 48 48 53 5 5 Attraction World Holdings 2010 Partial 30 30 30 - - Dalglen (1150) (trading as Walker Technical Resources) 2009 Complete 199 449 472 273 23 Lemac No. 1 (trading as John McGavigan) 2010 Partial 1 1 1 - - LG & DE 2006 Complete 405 958 958 553 - Vyre 2002 Partial 4 4 4 - - 687 1,490 1,518 831 28 --------- --------- --------- ------------ ------------ AIM Deltex Medical Group 2001 Partial 25 55 77 52 22 Praesepe 2008 Complete 21 15 17 (4) 2 Vectura Group 2001 Partial 250 229 273 23 44 296 299 367 71 68 --------- --------- --------- ------------ ------------ Total 983 1,789 1,885 902 96 ========= ========= ========= ============ ============
One legacy AIM security was struck off the Register during the period, resulting in the realisation of a loss of GBP894,000 (cost GBP894,000), but there was no related impact on the NAV as a full provision had been made in earlier periods.
Outlook
The breadth and yield characteristics of the portfolio continue to improve as the Company invests in a wider range of later-stage and income-producing assets. The Manager is experiencing steady levels of deal flow across the country and its regional deal teams continue to identify attractive investment opportunities across a range of sectors. This strategy has significantly improved the asset profile and revenue position of Ortus in recent years, and will help with the medium term objective of creating an income base for future Shareholder distributions.
Maven Capital Partners UK LLP
Manager
18 October 2011
SUMMARY OF INVESTMENT CHANGES For the period ended 31 Aug 2011 Valuation Net investment Appreciation Valuation 28 February 2011 (disinvestment) (depreciation) 31 August 2011 --------------- ---------------- --------------- --------------- GBP'000 % GBP'000 GBP'000 GBP'000 % ------------- -------- ----- ---------------- --------------- -------- ----- Unlisted investments Equities 9,565 65.9 (223) 164 9,506 64.6 Preference 958 6.6 (958) - - 0.0 Loan Stock 2,564 17.7 187 17 2,768 18.8 -------- ----- ---------------- --------------- -------- ----- 13,087 90.1 (994) 181 12,274 83.4 AIM investments Equities 886 6.1 (350) 45 581 3.9 Total investments 13,973 96.2 (1,344) 226 12,855 87.3 Other net assets 548 3.8 1,307 - 1,855 12.6 Total net assets 14,521 100 (37) 226 14,710 100 -------- ----- ---------------- --------------- -------- ----- Investment Portfolio Summary as at 31 August 2011 % of equity % of % of held Valuation Cost total equity by other Investment GBP'000 GBP'000 assets held clients Unlisted Vyre 3,661 324 24.9 29.8 - Espresso Group 2,795 461 19.0 7.2 - Higher Nature 1,650 500 11.2 11.2 - Nessco Group Holdings 475 298 3.2 3.6 31.4 Networks by Wireless 400 400 2.7 12.8 - Torridon Capital 316 161 2.1 1.2 38.8 Lab M Holdings 292 1,000 2.0 17.6 - TC Communications Holdings 272 303 1.8 10.4 62.9 Ashford Colour Press 223 214 1.5 8.7 - Baby Innovations Marketing Internationais LDA 200 200 1.4 0.8 - Flexlife Group 198 149 1.3 0.6 14.0 Westway Services 195 75 1.3 0.8 21.1 Lawrence Recycling & Waste Management 187 187 1.3 2.4 59.6 Tosca Penta Exodus Limited Partnership 150 150 1.0 0.3 4.3 Tosca Penta Investments Limited Partnership 146 100 1.0 - 0.3 Attraction World Holdings 140 94 1.0 1.9 36.6 ATR Holdings 135 121 0.9 1.6 51.5 Venmar (trading as XPD8 Solutions) 121 159 0.8 2.4 32.6 CHS Engineering Services 114 114 0.8 1.3 22.1 Training for Travel Group 103 228 0.7 2.3 27.7 Space Student Living 99 99 0.7 1.1 28.9 Intercede (Scotland) 1 99 99 0.7 1.1 27.4 Glacier Energy Services Group 99 99 0.7 1.0 24.1 Lemac No. 1 (trading as John McGavigan) 82 82 0.6 2.8 34.0 Atlantic Foods Group 71 71 0.5 - 8.8 Claven Holdings 48 19 0.3 3.3 46.7 Others 3 1,732 - Total unlisted 12,274 7,439 83.4 ---------- --------- -------- AIM Vectura Group 308 257 2.2 0.1 0.3 Chime Communications 93 95 0.6 0.1 0.2 Deltex Medical Group 90 42 0.6 0.4 - OMG 47 47 0.3 0.3 - Angle 32 16 0.2 0.4 - Marwyn Management Partners 11 17 0.1 - 0.3 Total AIM 581 474 4.0 ---------- --------- -------- Total 12,855 7,913 87.4 ========== ========= ========
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
-- The Financial Statements for the six months ended 31 August 2011 have been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice 'financial Statements of Investment Trust Companies' (the SORP) issued in January 2009
-- The Interim Management Report includes a fair review of the information required by DTR 4.2.7R in relation to the indication of important events during the first six months, and of the principal risks and uncertainties facing the Company during the second six months, of the year ending 28 February 2012
-- The Interim Management Report includes adequate disclosure of the information required by DTR 4.2.8R in relation to related party transactions and any changes therein.
By order of the Board
Maven Capital Partner UK LLP
Secretary
18 October 2011
Income Statement
For the six months ended 31 August 2011 (unaudited)
Six months ended 31 August 2010 (unaudited) ---------------------------- Revenue Capital Total Notes GBP'000 GBP'000 GBP'000 ---------------------------------------- ------ -------- -------- -------- Gains/(losses) on investments - 226 226 Investment income and deposit interest 236 - 236 Investment management fees 4 (36) (110) (146) Incentive fees (19) (21) (40) Finance costs - - - Other expenses (87) - (87) ---------------------------------------- ------ -------- -------- -------- Profit/(loss) on ordinary activities before taxation 94 95 189 Tax on ordinary activities - - - ---------------------------------------- ------ -------- -------- -------- Profit/(loss) on ordinary activities after taxation 94 95 189 ---------------------------------------- ------ -------- -------- -------- Earnings per share (pence) 0.26 0.26 0.52 ---------------------------------------- ------ -------- -------- -------- Six months ended 31 August 2010 (unaudited) ---------------------------- Revenue Capital Total Notes GBP'000 GBP'000 GBP'000 ---------------------------------------- ------ -------- -------- -------- Gains/(losses) on investments - (67) (67) Investment income and deposit interest 100 - 100 Investment management fees 4 (38) (115) (153) Incentive fees (7) (5) (12) Finance costs - - - Other expenses (96) - (96) ---------------------------------------- ------ -------- -------- -------- Profit/(loss) on ordinary activities before taxation (41) (187) (228) Tax on ordinary activities - - - ---------------------------------------- ------ -------- -------- -------- Profit/(loss) on ordinary activities after taxation (41) (187) (228) ---------------------------------------- ------ -------- -------- -------- Earnings per share (pence) (0.11) (0.51) (0.62) ---------------------------------------- ------ -------- -------- -------- Year ended 28 February 2011 (audited) ---------------------------- Revenue Capital Total Notes GBP'000 GBP'000 GBP'000 ---------------------------------------- ------ -------- -------- -------- Gains/(losses) on investments - (593) (593) Investment income and deposit interest 276 - 276 Investment management fees 4 (76) (229) (305) Incentive fees (29) (39) (68) Finance costs - - - Other expenses (220) - (220) ---------------------------------------- ------ -------- -------- -------- Profit/(loss) on ordinary activities before taxation (49) (861) (910) Tax on ordinary activities - - - ---------------------------------------- ------ -------- -------- -------- Profit/(loss) on ordinary activities after taxation (49) (861) (910) ---------------------------------------- ------ -------- -------- -------- Earnings per share (pence) (0.10) (0.30) (0.40) ---------------------------------------- ------ -------- -------- -------- 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
Six months Six months ended ended Year ended Reconciliation of Movements in 31 August 31 August 28 February Shareholders' Funds 2011 2010 2011 GBP'000 GBP'000 GBP'000 Opening Shareholders' funds 14,521 15,431 15,431 Profit on ordinary activities 189 (228) (910) Closing Shareholders' funds 14,710 15,203 14,521
Balance Sheet
As at 31 August 2011
31 August 31 August 28 February 2011 2010 2011 ---------------------------- ------ ------------ ------------ ------------ (unaudited) (unaudited) (audited) ---------------------------- ------ ------------ ------------ ------------ Notes GBP'000 GBP'000 GBP'000 ---------------------------- ------ ------------ ------------ ------------ Fixed assets Investments at fair value through profit or loss 12,855 14,298 13,973 Current assets Debtors 1,116 149 128 Cash and overnight deposits 803 872 628 ---------------------------- ------ ------------ ------------ ------------ 1,919 1,021 756 Creditors: amounts falling due within one year (64) (116) (208) ---------------------------- ------ ------------ ------------ ------------ Net current assets 1,855 905 548 ---------------------------- ------ ------------ ------------ ------------ Net assets 14,710 15,203 14,521 ---------------------------- ------ ------------ ------------ ------------ Capital and reserves Called up share capital 3,611 3,611 3,611 Special reserve 2 24,022 24,022 24,022 Share premium reserve 2 3,261 3,261 3,261 Capital redemption reserve 2 455 455 455 Capital reserve - realised 2 (20,569) (20,189) (20,446) Capital reserve - unrealised 2 4,940 5,139 4,722 Revenue reserve 2 (1,010) (1,096) (1,104) ---------------------------- ------------ ------------ ------------ Net assets attributable to Ordinary Shareholders 14,710 15,203 14,521 ------------------------------------ ------------ ------------ ------------ Net Asset Value per Ordinary Share (pence) 40.7 42.1 40.2 ---------------------------- ------ ------------ ------------ ------------
The Financial Statements of Ortus VCT PLC, registered number 3160586, were approved and authorised for issue by the Board of Directors and were signed on its behalf by:
D Potter, Director
18 October 2011
The accompanying notes are an integral part of the financial statements.
Cash flow Statement
For the six months ended 31 August 2011
Six months Six months to to Year ended 28 February 31 August 2011 31 August 2010 2011 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 --------------------- -------- --------- -------- -------- -------- -------- Net cash outflow from operating activities (227) (94) (169) Financial investment Purchase of investments (541) (245) (873) Sale of investments 943 362 821 --------------------- -------- --------- -------- -------- -------- -------- Net cash inflow/(outflow) from financial investment 402 117 (52) Net cash inflow/(outflow) before financing 175 23 (221) Financing - - - --------- -------- -------- -------- -------- Net cash outflow from financing - - - --------------------- -------- --------- -------- -------- -------- -------- Increase/(decrease) in cash 175 23 (221) --------------------- -------- --------- -------- -------- -------- -------- At 28 At 31 February Cash August 2011 flows 2011 GBP'000 GBP'000 GBP'000 Cash and overnight deposits 628 175 803 Net funds 628 175 803 --------- -------- -------- Notes to the Financial Statements 1. Accounting policies The financial information for the six months ended 31 August 2011 and the six months ended 31 August 2010 comprises non-statutory accounts within the meaning of the companies Act 2006. The financial information contained in this report has been prepared on the basis of the accounting policies set out in the annual Report and Financial Statements for the year ended 28 February 2011, which have been filed at Companies House and which contained an Auditor's Report which was not qualified and did not contain a statement under s. 498 (2) or s.498(3) of the Companies Act 2006. The results for the year ended 28 February 2011 are extracted from the full accounts for that year, which received an unqualified report from the Auditor and have been filed with the Registrar of Companies. Capital Capital Capital Special Share redemption reserve reserve Revenue reserve premium reserve realised unrealised reserve GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Movement in 2. reserves At 28 February 2011 24,022 3,261 455 (20,446) 4,722 (1,104) Gain on sales of investments - - - 8 - - Net increase in value of investments - - - - 218 - Investment management fees - - - (110) - - Incentive fees - - - (21) - - Net profit for period - - - - - 94 As at 31 August 2011 24,022 3,261 455 (20,569) 4,940 (1,010) ======== ======== =========== ========= =========== ======== Six months ended 31 August 3. Return per Ordinary Shares 2011 The returns per share have been based on the following figures: Weighted average number of ordinary shares 36,110,992 Revenue Return GBP94,000 Capital Return GBP95,000 Six months ended Six months ended Year ended Investment Management 28 February 4 Fees 31 August 2011 31 August 2010 2011 (unaudited) (unaudited) (audited) -------- ------------ -------- ------------ -------- ---------- Revenue Capital Revenue Capital Revenue Capital GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Fees for period 36 110 38 115 76 229 36 110 38 115 76 229 ======== ============ ======== ============ ======== ==========
Copies of this announcement will be available to the public at the office of Maven Capital Partners UK LLP, 149 St Vincent Street, Glasgow and at the registered office of the Company, 9 - 13 St Andrew Street, London.
The Interim Report and Financial Statements will be printed and sent to Shareholders.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
18 October 2011
ENDS
Neither the content of the Company's website nor the contents of any website accessible from hyperlinks on the company's website (or any other website) is incorporated into, or forms part of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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