RNS Number : 8397F
Aberdeen Income & Growth VCT PLC
14 October 2008
Aberdeen Income and Growth VCT PLC
Interim Announcement for the six months ended 31 August 2008 (unaudited)
This Interim Management Report covers a period when equity markets generally have seen a downward trend in the face of tighter credit
conditions and with many commentators predicting negative growth in the UK economy for the second half of the calendar year. Prices are
likely to remain unstable given these economic conditions. Your Company has a limited exposure to the AIM market, representing 16.5% of net
assets at 31 August 2008, where there has been continued volatility that has affected the results for the period under review. Despite these
significant and adverse influences, the NAV at the reporting period end is almost unchanged from the position at the end of February, after
adjusting for the dividend paid in July 2008. This is primarily due to the more robust performance of the private equity portfolio, which
continues to mature and enhance its value.
Highlights
* NAV total return of 100.8p per share (pps) at period end, down 0.8% over the period; the AIM All-share Index fell by 21.4% over
the same period.
* NAV at period end of 69.7pps.
* Realised gains on the disposal of unlisted holdings of �1,089,000 equivalent to 3.1pps.
Performance
The NAV total return at 31 August 2008 was 100.8pps, a fractional decrease of 0.8% over the equivalent figure at 29 February 2008.
The Net Asset Value (NAV) per Ordinary Share at 31 August 2008, after payment of the final dividend of 2.3pps in respect of the year
ended 29 February 2008, was 69.7pps compared with 72.8pps at 29 February 2008.
Dividends
The Board intends to pay regular dividends from realised gains and hopes that the level of payment will be increased over time but this
cannot be guaranteed. All dividends are, of course, paid tax-free to Shareholders and the net dividend of 5.8p paid in respect of the year
ended 29 February 2008 is equivalent to a yield of 7.7% to a higher rate taxpayer from an equity investment; if the initial tax relief of
20% is taken into account the effective annual yield rises to 9.7%. Since the Company's launch and after receipt of the interim dividend,
Ordinary Shareholders will have received 32.1p per share in tax-free dividends, of which 22.6p will have been paid since September 2004.
The Directors have declared an interim revenue dividend of 1.0p per share to be paid on 12 December 2008 to Shareholders on the register
at close of business on 14 November 2008.
VCT qualifying status
The VCT qualifying status of your Company is monitored on a continuous basis to ensure that all of the criteria required to maintain VCT
status are being achieved.
Investment activity
During the six-month period ended 31 August 2008, six new unlisted and AIM quoted investments were completed and a total of �2.0 million
was invested, of which �1.5 million was in unlisted companies and �500,000 was in AIM quoted companies. At the period end, the portfolio
stood at 73 unlisted and AIM investments at a total cost of �29.0 million. Since 31 August 2008, one further AIM investment has been made at
a cost of �16,000.
The following investments have been completed during the period:
Investment Date Activity Investment cost
�'000 Website
Unlisted
Broomco (4136) July 2008 Provider of CCTV and 89 No website available
air condition
services throughout
UK
MoneyPlus Group July 2008 Provider of debt 135 www.moneyplusgroup.
management services co.uk
to individuals
Nessco Group Holdings June 2008 Telecommunication 472 www.nessco.co.uk
services provider
PSCA International May 2008 Producer of 154 www.publicservice.
publications aimed co.uk
at public sector
officials
TC Communications Holdings May 2008 Marketing and 199 www.
communications tccommunications.co.
services agency uk
Training for Travel Group April 2008 Provider of 446 www.
assessment, tuition trainingfortravel.
and or training in com
travel services
Total unlisted investment 1,495
AIM
Betbrokers March 2008 Provider of 110 www.betbrokers.com
independent betting
brokerage services
Brookwell June 2008 Close-ended 202 www.
investment company brookwelllimited.com
established to
acquire AIM quoted
and listed
securities from
financial
institutions
OPG Power Ventures May 2008 Develops, owns and 98 www.opgpower.org
manages power
generation plants in
India
Optare July 2008 Bus manufacturer and 49 www.elcb.co.uk
low emission
technology group
Praesepe July 2008 Pursues acquisition 49 www.aldgatecapital.
and consolidation com
opportunities in the
low-stake,
high-volume gaming
sector in the United
Kingdom and Europe
Total AIM investment 508
Total investment 2,003
Aberdeen Income and Growth VCT has co-invested with Aberdeen Growth Opportunities VCT, Aberdeen Growth Opportunities VCT 2, Aberdeen
Growth VCT I, Gateway VCT, Guinness Flight Venture Capital Trust and Talisman First 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, the
funds 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 significant realisations from the unlisted investment portfolio during the period which resulted in gains of �1,089,000
equivalent to 3.1p per share. The investment in ID Support Services Holdings was sold generating a gain of �487,000 which is a return,
including the interest received during the life of the investment, of 1.8 times the cost of �746,000 over the fifteen month holding period.
The holdings in PSCA International were also sold for proceeds of �1,121,000 resulting in a gain of �603,000. Over the life of the
investment, including the income received and earlier repayments of loan stock, a total return of 2.2 times the original cost of �518,000
was achieved.
In addition to these two successful sales, a further �800,000 was received by the Company, the most significant proportion of which
related to repayments of loan stock at par from Lime Investments and from Homelux Nenplas.
Conditions in the AIM market continued to be volatile during the reporting period and there were few opportunities to actively trade the
portfolio.
A strategic decision was taken to dispose of four AIM holdings to an active investor that will aggregate the holdings from a number of
managers and seek to realise them at higher values than could be achieved individually. The holdings were realised at market value,
resulting in realised losses of �650,000; however, the carrying value at 29 February 2008 had already recognised almost all of this
reduction and, therefore, the impact on the NAV was minimal.
In addition, one holding was sold at a loss under the compulsory purchase provisions when an offer for that company was accepted by its
shareholders and a loss was incurred on the disposal of a further holding where its technology failed to be adopted by the market with
inevitable consequences on its share price.
In contrast, net realised gains of �91,000 were generated from actively traded stocks during the period. The FTSE AIM All-share index
decreased over the period by 21.4% and has now fallen by over 27% since August 2007; in comparison the performance of the Company's
portfolio showed a decline of 18.4% for the six month period. The underlying performance of the businesses in the AIM portfolio remains
sound and is expected to remain so. It is anticipated that this will be reflected in positive share price movements when market conditions
improve, although the timing is uncertain.
The table below gives details of all realisations during the reporting period:
Year first invested Complete/ Cost of shares Sales proceeds Realised
partial disposed of �'000 gain/
exit �'000 (loss)
�'000
Unlisted
ID Support Services Holdings 2007 Complete 746 1,233 487
PSCA International 2002 Complete 518 1,121 603
Others 801 800 (1)
Total unlisted disposals 2,065 3,154 1,089
AIM
1st Dental Laboratories 2004 Complete 177 53 (124)
AT Communications 2005 Complete 44 29 (15)
Autoclenz 2005 Complete 185 70 (115)
Citel Technologies 2001 Complete 166 1 (165)
Fountains 2004 Complete 136 156 20
Imprint 2005 Complete 204 78 (126)
Optare 2007 Partial 27 80 53
Synarbor 2004 Complete 447 51 (396)
Others 126 144 18
Total AIM disposals 1,512 662 (850)
Total disposals 3,577 3,816 239
Subsequent to the period end, complete and partial disposals of four AIM quoted holdings generated a net realised gain of �53,000.
Risk and uncertainties
The Board has reviewed the principal risks and uncertainties facing the Company in the second half of its financial year; these are
unchanged from those it faced at the start of the year, being 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 investments in unlisted and AIM quoted
companies in the United Kingdom. The Company remains compliant with the regulations governing venture capital trusts and the Manager closely
monitors the position of the Company to ensure that it complies with the various tests at all times.
Outlook
The performance of the quoted markets generally during the period has been volatile and events since the period end affecting the
banking market have caused further uncertainty. It appears that these conditions will prevail for some time given the continuing speculation
over the future of the economy. Opportunities to invest in companies seeking to achieve an IPO on AIM have, therefore, been limited and
little change is expected in the short term.
Whilst the Company's AIM quoted investments have obviously suffered as a result of the extended period of volatility which continues to
affect the equity markets, most of the underlying businesses in which that portfolio is invested are performing in line with the Manager's
expectations and the Directors are confident that this will be demonstrated by increasing share prices when markets recover. Shareholders
should also take comfort from the composition of the unlisted portfolio, which is now largely invested in a number of mature private
companies which are paying a regular yield while continuing to demonstrate reasonable growth potential and whose values are not directly
affected by the short term fluctuations of the quoted markets.
To maintain the qualifying level of the Company, the Manager continues to invest selectively from its flow of introductions sourced by
its regional network of offices. The private company portfolio is still relatively young, but is maturing and a number of successful
realisations may be possible which will result in a continuing need to re-invest the proceeds in due course in accordance with the VCT
Regulations.
Aberdeen Income and Growth VCT PLC
Summary of Investment Changes
For the six months ended 31 August 2008
Valuation Net investment/ Appreciation/ Valuation
29 February 2008 (disinvestment) (depreciation) 31 August 2008
�'000 % �'000 �'000 �'000 �'000
Unlisted investments
Equities 5,317 20.6 (1,259) 152 4,210 17.0
Preference shares 1,602 6.2 (43) - 1,559 6.3
Loan stock 10,450 40.5 (357) 53 10,146 41.0
17,369 67.3 (1,659) 205 15,915 64.3
AIM investments
Equities 5,141 19.9 (154) (916) 4,071 16.5
Listed investments
Fixed income 2,492 9.7 1,291 (8) 3,775 15.3
Total investments 25,002 96.9 (522) (719) 23,761 96.1
Other net assets 800 3.1 169 - 969 3.9
Net assets 25,802 100.0 (353) (719) 24,730 100.0
Aberdeen Income and Growth VCT PLC
Investment Portfolio Summary
As at 31 August 2008
Valuation Cost % of net % of equity % of equity held by
other
Investment �'000 �'000 assets held clients*
Transys Holdings 2,721 2,721 11.0 31.7 40.1
House of Dorchester 1,725 910 7.0 44.2 -
Funeral Services Partnership 1,160 970 4.7 6.9 23.0
MoneyPlus Group 950 950 3.8 17.5 57.5
Homelux Nenplas 838 391 3.4 8.9 36.1
Martel Instruments Holdings 796 796 3.2 11.3 22.1
Camwatch 786 786 3.2 12.1 30.4
Oliver Kay Holdings 771 771 3.1 4.9 15.1
Energy Services Investment 745 745 3.0 28.5 51.5
Company (ESIC)
Atlantic Foods Group 664 522 2.7 2.9 5.9
Steminic (trading as MS 546 546 2.2 9.3 35.7
Industrial Services)
Adler & Allan Holdings 499 499 2.0 2.2 38.8
Nessco Group Holdings 472 472 1.9 6.2 31.6
Training For Travel Group 446 446 1.8 5.1 24.9
Silkwater Holdings (trading as 425 348 1.7 4.8 15.3
Cyclotech)
PLM Dollar Group 402 402 1.6 4.6 26.2
ELE Advanced Technologies 371 192 1.5 11.3 -
Countcar 273 21 1.1 6.9 19.6
Sanastro 268 750 1.1 9.6 3.5
TC Communications Holdings 199 199 0.8 4.1 31.2
Driver Hire Investments Group 198 203 0.8 1.1 43.6
PSCA International 154 154 0.6 - -
Enpure Holdings 137 100 0.6 0.4 79.2
Broomco (4136) 89 89 0.4 0.6 1.6
Lime Investments 83 83 0.3 26.6 53.4
Buildstore 52 105 0.2 0.6 6.8
Other unlisted investments 145 8,939 0.6
15,915 23,110 64.3
AIM
Strategic Retail 560 700 2.3 2.0 2.0
Concateno 514 332 2.1 0.7 1.8
Avanti Communications Group 307 283 1.3 0.5 0.9
System C Healthcare 242 311 1.0 0.6 0.7
Cello Group 207 310 0.8 0.8 0.3
Plastics Capital 191 281 0.8 - 2.7
AMZ Holdings (formerly Amazing 176 251 0.7 0.8 1.4
Holdings)
Animalcare Group (formerly 142 147 0.6 1.4 3.2
Ritchey)
Axeon 138 176 0.6 0.7 2.9
Hasgrove 136 168 0.5 0.7 1.3
Brookwell 132 202 0.5 - -
Optare (formerly Darwen Group) 120 109 0.5 1.1 8.9
Neuropharm Group 120 100 0.5 0.2 0.5
Brulines (Holdings) 100 77 0.4 0.3 0.5
Betbrokers 99 110 0.4 0.4 -
Mattioli Woods 96 48 0.4 0.2 -
Formation Group 95 105 0.4 0.3 1.0
Melorio 92 98 0.4 0.3 2.5
Individual Restaurant Company 79 133 0.3 0.3 0.7
Craneware 71 46 0.3 0.2 1.6
OPG Power Ventures 69 81 0.3 0.1 0.4
Neutrahealth 52 91 0.2 0.6 1.3
Praesepe (formerly Aldgate 51 49 0.2 1.2 10.6
Capital)
Hexagon Human Capital 47 73 0.2 0.2 0.5
St Helen's Capital 37 50 0.1 1.2 3.6
Tangent Communications 36 98 0.1 0.5 0.9
Mount Engineering 33 35 0.1 0.2 2.3
Essentially Group 33 49 0.1 0.2 2.8
Other AIM investments 96 1,410 0.4
4,071 5,923 16.5
Listed fixed income
Treasury 4% 7/3/09 1,652 1,653 6.7
Treasury 4.75% 7/6/10 501 499 2.0
Treasury 5.75% 31/12/09 1,622 1,622 6.6
3,775 3,774 15.3
Total investments 23,761 32,807 96.1
*Other clients of the Aberdeen Asset Management Group.
Aberdeen Income and Growth VCT PLC
Income Statement
Six months ended 31 August 2008 (unaudited)
Revenue Capital Total
�'000 �'000 �'000
Investment income and deposit 870 - 870
interest
Investment management fees (31) (122) (153)
Other expenses (86) - (86)
(Losses)/gains on investments - (719) (719)
Profit/(loss) on ordinary 753 (841) (88)
activities before taxation
Tax on ordinary activities (205) 37 (168)
Profit/(loss) on ordinary 548 (804) (256)
activities after taxation
Earnings per share (pence) 1.5 (2.2) (0.7)
Aberdeen Income and Growth VCT PLC
Income Statement
Six months ended 31 August 2007 (unaudited)
Revenue Capital Total
�'000 �'000 �'000
Investment income and deposit 771 - 771
interest
Investment management fees (58) (234) (292)
Other expenses (105) - (105)
(Losses)/gains on investments - 744 744
Profit/(loss) on ordinary 608 510 1,118
activities before taxation
Tax on ordinary activities (168) 168 -
Profit/(loss) on ordinary 440 678 1,118
activities after taxation
Earnings per share (pence) 1.2 1.9 3.1
Aberdeen Income and Growth VCT PLC
Income Statement
Year ended 29 February 2008 (audited)
Revenue Capital Total
�'000 �'000 �'000
Investment income and deposit 1,677 - 1,677
interest
Investment management fees (67) (270) (337)
Other expenses (221) - (221)
(Losses)/gains on investments - (360) (360)
Profit/(loss) on ordinary 1,389 (630) 759
activities before taxation
Tax on ordinary activities (395) 343 (52)
Profit/(loss) on ordinary 994 (287) 707
activities after taxation
Earnings per share (pence) 2.8 (0.8) 2.0
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.
The accompanying Notes are an integral part of the Financial Statements.
Aberdeen Income and Growth VCT PLC
Reconciliation of movements in Shareholders' funds
Six months ended
Six months ended 31 August 2007
31 August 2008
Year ended
29
February
2008
(unaudited) (unaudited) (audited)
�'000 �'000 �'000
Opening Shareholders' funds 25,802 28,745 28,745
Total (loss)/profit for the (256) 1,118 707
year
Dividends paid - revenue (816) (284) (461)
Dividends paid - capital - (2,134) (3,189)
Closing Shareholders' funds 24,730 27,445 25,802
The accompanying Notes are an integral part of the Financial Statements.
Aberdeen Income and Growth VCT PLC
Balance Sheet
31 August 31 August 29 February
2008 2007 2008
(unaudited) (unaudited) (audited)
�'000 �'000 �'000
Fixed assets
Investments at fair value 23,761 24,735 25,002
through profit or loss
Current assets
Debtors 652 1,040 617
Cash and overnight deposits 659 1,819 272
1,311 2,859 889
Creditors
Amounts falling due within one 342 149 89
year
Net current assets 969 2,710 800
Net assets 24,730 27,445 25,802
Capital and reserves
Called up share capital 3,546 3,546 3,546
Share premium account 17,235 17,235 17,235
Realised capital reserve 2,445 2,618 2,287
Unrealised capital reserve (8,354) (6,758) (7,392)
Capital redemption reserve 339 339 339
Profit and loss account 9,519 10,465 9,787
Net assets attributable to 24,730 27,445 25,802
Ordinary Shareholders
Net Asset Value per Ordinary 69.7 77.4 72.8
Share (pence)
The accompanying Notes are an integral part of the Financial Statements.
Aberdeen Income and Growth VCT PLC
Cash Flow Statement
Six months Six months Year ended
ended ended 29 February 2008
31 August 2008 31 August 2007
(unaudited) (unaudited) (audited)
�'000 �'000 �'000
Operating activities
Investment income received 850 618 1,355
Deposit interest received 10 56 74
Investment management fees (77) (621) (789)
paid
Secretarial fees paid (14) (25) (50)
Directors' expenses paid (30) (31) (57)
Other cash payments (42) (68) (112)
Net cash inflow/(outflow) from 697 (71) 421
operating activities
Financial investment
Purchase of investments (3,899) (8,974) (15,640)
Sale of investments 4,405 6,360 12,219
Net cash inflow/(outflow) from 506 (2,614) (3,421)
financial investment
Equity dividends paid (816) (2,418) (3,650)
Net cash inflow/(outflow) 387 (5,103) (6,650)
before financing
Net cash outflow from - - -
financing
Increase/(decrease) in cash 387 (5,103) (6,650)
The accompanying Notes are an integral part of the Financial Statements.
Aberdeen Income and Growth VCT PLC
Notes to the Financial Statements
1. Accounting policies
The financial information for the six months ended 31 August 2008 and the six months ended 31 August 2007 comprises non-statutory
accounts within the meaning of Section 240 of the Companies Act 1985. 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 29 February 2008.
The results for the year ended 29 February 2008 are extracted from the full accounts for that year, which received an unqualified report
from the Auditors and have been filed with the Registrar of Companies.
2. Movement in reserves
Share Realised capital Unrealised capital Capital redemption Profit and loss account
premium reserve reserve reserve
account
�'000 �'000 �'000 �'000 �'000
At 29 February 2008 17,235 2,287 (7,392) 339 9,787
Gains on sales of investments - 243 - - -
Net decrease in value of - - (962) - -
investments
Investment management fees - (122) - - -
Dividends paid - - - - (816)
Tax effect of capital items - 37 - - -
Profit on ordinary activities - - - - 548
after taxation
As at 31 August 2008 17,235 2,445 (8,354) 339 9,519
3. Returns per Ordinary Share
The returns per Ordinary Share are based on the following figures:
Six months ended
31 August 2008
�'000
Weighted average number of Ordinary Shares in issue 35,463,992
Revenue return �548,000
Capital return (�804,000)
Other information
The Net Asset Value per Ordinary Share has been calculated using the number of Ordinary Shares in issue at 31 August 2008 of
35,463,992.
A summary of investment changes for the six months under review and an investment portfolio summary as at 31 August 2008 are included
above.
A full copy of the Interim Report and Financial Statements will be printed and issued to Shareholders.
Copies of this announcement will be available to the public at the office of Aberdeen Asset Management PLC, 149 St Vincent Street,
Glasgow G2 5NW and at the registered office of the Company, One Bow Churchyard, Cheapside, London EC4M 9HH.
Directors' responsibility statement
The Directors confirm that, to the best of their knowledge:
* the Financial Statements for the six months ended 31 August 2008 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
December 2005;
* 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 2009; and
* 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.
On behalf of the Board
Aberdeen Asset Management PLC
Secretary
14 October 2008
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EZLFFVBBLFBD
Aberdeen I&G V (LSE:AIGV)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Aberdeen I&G V (LSE:AIGV)
Gráfica de Acción Histórica
De May 2023 a May 2024
