RNS Number:5565T
Neptune-Calculus Income &Growth VCT
22 March 2007
Neptune-Calculus Income & Growth VCT plc
22 March 2007
Unaudited preliminary results for the year ended 31 December 2006
Financial Highlights
Year ended 31 December 2006
Return per Ordinary Share 12.5p
Net assets per Ordinary Share 113.4p
Proposed dividend 3.2p
Cumulative dividends paid and proposed 5.0p
At 15 March 2007*
Unaudited net asset value per Ordinary Share 116.4p
Year ended 31 December 2006
Return per C Share 10.2p
Net assets per C Share 103.6p
Proposed dividend 1.0p
Cumulative dividends paid and proposed 1.0p
At 15 March 2007*
Unaudited net asset value per C Share 105.3p
*Being the latest practicable date to prior to publication and excluding net
revenue after 31 December 2006
Chairman's Statement
I am delighted to report on our period of activity which ended on 31 December
2006. As I reported at the time of our interim statement, your Company closed
its C Share offering on 5 April 2006 raising #8.4 million (before costs). This
fund raising will enable growth and diversification of the Company's investment
portfolio, create economies of scale for all shareholders and allow us to spread
the fixed overhead costs over a larger pool of assets and improve the potential
for paying dividends.
Investment performance
The Company's aim is to achieve long term capital growth and generate tax free
dividends for private investors. In our original prospectus we stated our
intention to be a generalist VCT company investing in a diversified portfolio of
unquoted companies in the UK including AIM traded stocks. The objective is to
avoid investing in companies where the risk profile is regarded as being
unacceptably high or where the prospective time to realisation is unacceptably
long. As you may be aware, the Company must have invested at least 70% by value
of its total investments in the Ordinary Share Fund portfolio in VCT qualifying
holdings by 31 December 2007 and maintain this thereafter. As at 31 December
2006, #1,527,642 had been invested in qualifying holdings representing 40%
(calculated on a H.M. Revenue & Customs basis) of the Ordinary Share Fund
investment portfolio. Since the period end we have invested in a further three
qualifying companies which brings the percentage invested to 51.5% (calculated
on a H.M. Revenue & Customs basis).
The C Share Fund similarly, must have invested 70% by value of its total
investments in qualifying holdings by 31 December 2008. The C Share Fund
investment portfolio is at an investment level of 22.4% (calculated on a H.M.
Revenue & Customs basis) as at 31 December 2006 and since the period end we have
invested in a further three qualifying companies which brings the percentage
invested to 34.2% (calculated on a H.M. Revenue & Customs basis).
During the year, both the Ordinary Share Fund and the C Share Fund outperformed
the AIM All-Share Index over the comparable period.
The balance of the funds raised, described as non-qualifying investments, has
been managed by Neptune Investment Management Limited. We are invested in the
Neptune Income Fund Income A Class (the Income Fund), the Neptune Quarterly
Income Fund (the Quarterly Fund) Income Units and a range of individual FTSE 100
/ FTSE 250 companies with a view to generating income in the portfolio. During
the year, both the Income Fund and the Quarterly Fund have outperformed the FTSE
All-Share Index and the IMA sector average over the comparable period.
On the Ordinary Share Fund, total income for the period amounted to #139,000
which was largely derived from dividend income on our quoted investments. Net
assets per Ordinary Share have risen from 101.7 pence at the start of the year
to 113.4 pence at 31 December 2006. Gains on investments in the period amounted
to #479,000 (realised #305,000, unrealised #174,000). The Directors' policy is
to pay, when possible, dividends out of income and realised gains. An interim
dividend of 0.8 pence per share was paid during 2006 in respect of the Ordinary
Shares and the Board proposes to pay a final dividend in respect of 2006 of 3.2
pence per share, subject to shareholder approval, to Ordinary shareholders.
The C Share Fund total income for the period amounted to #223,000 and again this
was largely derived from dividend income from our quoted investments. The net
asset value per share was 103.6 pence at 31 December 2006 and the Board proposes
to pay a final dividend in respect of 2006 of 1 pence per share, subject to
shareholder approval, to C shareholders.
Subject to the approval of shareholders at the Company's annual general meeting
on 22 May 2007, the final dividends will be paid on 30 May 2007 to shareholders
on the register at 4 May 2007.
In common with many other VCTs, to facilitate the payment of dividends out of
realised gains the Company has now relinquished its investment company status.
The Annual General Meeting will be held on 22 May 2007 and I hope that many of
our shareholders will be able to attend.
Outlook
We believe that the outlook for the Company is excellent. Good progress has been
achieved in our investment programme. We have enjoyed some initial success in
the portfolio of qualifying investments and our investments in the Neptune
Income Fund Income A Class, Neptune Quarterly Income Fund Income Units and our
managed portfolio of UK income generating shares outperformed its relevant
benchmarks and I am pleased to report that the unaudited net asset value per
Ordinary Share (excluding current period revenue) as at 15 March 2007 was 116.4
pence and the unaudited net asset value per C Share (excluding current period
revenue) as at 15 March 2007 was 105.3 pence.
We look forward to reporting further progress in the current year towards the
target of 70% of funds being invested in qualifying investments. The Managers
are seeing a good flow of potential investments and are able to exercise a
proper degree of selectivity with the aim of maximising returns and therefore
future dividends.
Philip Stephens
Unaudited Income Statement
for the year ended 31 December 2006
Ordinary Share Fund
----------------- ----------------
Year ended Period ended
31 December 31 December
2006 2005*
----------------- ----------------
-------- ------- ------- ------- ------- ------
Revenue Capital Total Revenue Capital Total
-------- ------- ------- ------- ------- ------
#'000 #'000 #'000 #'000 #'000 #'000
-------- ------- ------- ------- ------- ------
Gains on investments
at fair value - 479 479 - 303 303
-------------- -------- ------- ------- ------- ------- ------
Income 139 - 139 104 - 104
-------------- -------- ------- ------- ------- ------- ------
Investment management
fee (23) (68) (91) (11) (33) (44)
-------------- -------- ------- ------- ------- ------- ------
Other expenses (51) - (51) (80) - (80)
-------------- -------- ------- ------- ------- ------- ------
Return on ordinary
activities before
taxation 65 411 476 13 270 283
-------------- -------- ------- ------- ------- ------- ------
Taxation on ordinary
activities (3) - (3) - - -
-------------- -------- ------- ------- ------- ------- ------
Return attributable to
equity shareholders 62 411 473 13 270 283
-------------- -------- ------- ------- ------- ------- ------
Return per Ordinary
Share 1.65p 10.82p 12.47p 0.41p 8.49p 8.90p
-------------- -------- ------- ------- ------- ------- ------
* The Company was incorporated on 30 November 2004 and commenced investing on 22
June 2005
C Share Fund
----------------- ----------------
Period ended Period ended
31 December 31 December
2006* 2005
----------------- ----------------
-------- ------- ------- ------- ------- ------
Revenue Capital Total Revenue Capital Total
-------- ------- ------- ------- ------- ------
#'000 #'000 #'000 #'000 #'000 #'000
-------- ------- ------- ------- ------- ------
Gains on investments
at fair value - 778 778 - - -
-------------- -------- ------- ------- ------- ------- ------
Income 223 - 223 - - -
-------------- -------- ------- ------- ------- ------- ------
Investment management
fee (34) (103) (137) - - -
-------------- -------- ------- ------- ------- ------- ------
Other expenses (102) - (102) - - -
-------------- -------- ------- ------- ------- ------- ------
Return on ordinary
activities before
taxation 87 675 762 - - -
-------------- -------- ------- ------- ------- ------- ------
Taxation on ordinary
activities (2) - (2) - - -
-------------- -------- ------- ------- ------- ------- ------
Return attributable to
equity shareholders 85 675 760 - - -
-------------- -------- ------- ------- ------- ------- ------
Return per C Share 1.14p 9.10p 10.24p - - -
-------------- -------- ------- ------- ------- ------- ------
* The first allotment of C Shares took place on 8 February 2006 and the first C
Share investment was made on 20 April 2006
Total
-------------- -----------------
Year ended Period ended
31 December 31 December
2006* 2005**
----------------- ----------------
-------- ------- ------- ------- ------- ------
Revenue Capital Total Revenue Capital Total
-------- ------- ------- ------- ------- ------
#'000 #'000 #'000 #'000 #'000 #'000
-------- ------- ------- ------- ------- ------
Gains on investments
at fair value - 1,257 1,257 - 303 303
-------------- -------- ------- ------- ------- ------- ------
Income 362 - 362 104 - 104
-------------- -------- ------- ------- ------- ------- ------
Investment management
fee (57) (171) (228) (11) (33) (44)
-------------- -------- ------- ------- ------- ------- ------
Other expenses (153) - (153) (80) - (80)
-------------- -------- ------- ------- ------- ------- ------
Return on ordinary
activities before
taxation 152 1,086 1,238 13 270 283
-------------- -------- ------- ------- ------- ------- ------
Taxation on ordinary
activities (5) - (5) - - -
-------------- -------- ------- ------- ------- ------- ------
Return attributable to
equity shareholders 147 1,086 1,233 13 270 283
-------------- -------- ------- ------- ------- ------- ------
*The first allotment of C Shares took place on 8 February 2006 and the first C
Share investment was made on 20 April 2006
** The Company was incorporated on 30 November 2004 and commenced investing on
22 June 2005
The total column of this statement is the profit and loss account of the
Company.
All revenue and capital items shown in the above statement derive from
continuing operations. No operations were acquired or discontinued during the
year.
Unaudited Reconciliation of movements in shareholders' funds
for the year ended 31 December 2006
Ordinary Share Fund
Share Share Special Capital Revenue Total
capital premium reserve reserve reserve
------ ------- ------- ------- ------- ------
#'000 #'000 #'000 #'000 #'000 #'000
------ ------- ------- ------- ------- ------
For the year
1January 2006 to
31 December 2006
--------
1 January 2006 379 21 3,187 270 1 3,858
--------
Net return
after taxation - - - 411 62 473
for the year
--------
Dividends paid - - - - (30) (30)
-------- ------- -------- ------- ------- ------- ------
31 December
2006 379 21 3,187 681 33 4,301
-------- ------- -------- -------- ------- ------ ------
For the period
30 November 2004 to
31 December 2005
--------
30 November 2004 - - - - - -
--------
Issue of shares 379 - - - - 379
--------
Premium on
issue of - 3,413 - - - 3,413
shares
--------
Expenses of
share issue - (205) - - - (205)
--------
Transfer to
special - (3,187) 3,187 - - -
reserve
--------
Net return
after taxation - - - 270 13 283
for the period
--------
Dividends paid - - - - (12) (12)
-------- ------- -------- ------- ------- ------- ------
31 December
2005 379 21 3,187 270 1 3,858
-------- ------- -------- -------- ------- ------ ------
C Share Fund
Share Share Special Capital Revenue Total
capital premium reserve reserve reserve
------ ------- ------- ------- ------- ------
#'000 #'000 #'000 #'000 #'000 #'000
------ ------- ------- ------- ------- ------
For the period
8 February 2006 to
31 December 2006
--------
8 February 2006 - - - - - -
--------
Issue of shares 839 - - - - 839
--------
Premium on
issue of
shares - 7,554 - - - 7,554
--------
Expenses of
share issue - (457) - - - (457)
--------
Transfer to
special - (7,097) 7,097 - - -
reserve
--------
Net return
after taxation - - - 675 85 760
for the period
--------
Dividends paid - - - - - -
-------- ------- -------- -------- ------- ------ ------
31 December
2006 839 - 7,097 675 85 8,696
-------- ------- -------- -------- ------- ------ ------
Total
Share Share Special Capital Revenue Total
capital premium reserve reserve reserve
------ ------- ------- ------- ------- ------
#'000 #'000 #'000 #'000 #'000 #'000
------ ------- ------- ------- ------- ------
For the year ended
31 December 2006
--------
1 January 2006 379 21 3,187 270 1 3,858
--------
Issue of shares 839 - - - - 839
--------
Premium on
issue of - 7,554 - - - 7,554
shares
--------
Expenses of
share issue - (457) - - - (457)
--------
Transfer to
special - (7,097) 7,097 - - -
reserve
--------
Net return
after taxation - - - 1,086 147 1,233
for the year
--------
Dividends paid - - - - (30) (30)
-------- ------- -------- -------- ------- ------ ------
31 December
2006 1,218 21 10,284 1,356 118 12,997
-------- ------- -------- -------- ------- ------ ------
For the period
30 November 2004 to
31 December 2005
--------
30 November 2004 - - - - - -
--------
Issue of shares 379 - - - - 379
--------
Premium on
issue of - 3,413 - - - 3,413
shares
--------
Expenses of
share issue - (205) - - - (205)
--------
Transfer to
special - (3,187) 3,187 - - -
reserve
--------
Net return
after taxation - - - 270 13 283
for the period
--------
Dividends paid - - - - (12) (12)
-------- ------- -------- -------- ------- ------ ------
31 December
2005 379 21 3,187 270 1 3,858
-------- ------- -------- -------- ------- ------ ------
Unaudited Balance Sheet
as at 31 December 2006
Ordinary Share Fund
31 December 31 December
-------------------- 2006 2005
------------ ------------
#'000 #'000
-------------------- ------------ ------------
Fixed Assets
-------------------- ------------ ------------
Investments at fair value through profit
or loss 4,272 1,739
-------------------- ------------ ------------
Current Assets
-------------------- ------------ ------------
Debtors 9 95
-------------------- ------------ ------------
Cash at bank 59 2,208
-------------------- ------------ ------------
68 2,303
-------------------- ------------ ------------
Creditors: Amounts falling due
-------------------- ------------ ------------
within one year
-------------------- ------------ ------------
Creditors (39) (184)
-------------------- ------------ ------------
Net Current Assets 29 2,119
-------------------- ------------ ------------
Net Assets 4,301 3,858
-------------------- ------------ ------------
-------------------- ------------ ------------
Represented by:
-------------------- ------------ ------------
CALLED UP SHARE CAPITAL AND RESERVES
-------------------- ------------ ------------
Share capital 379 379
-------------------- ------------ ------------
Share premium 21 21
-------------------- ------------ ------------
Special reserve 3,187 3,187
-------------------- ------------ ------------
Capital reserve realised 204 (33)
-------------------- ------------ ------------
Capital reserve unrealised 477 303
-------------------- ------------ ------------
Revenue reserve 33 1
-------------------- ------------ ------------
Total equity shareholders' funds 4,301 3,858
-------------------- ------------ ------------
Net asset value per Ordinary Share 113.37p 101.71p
-------------------- ------------ ------------
C Share Fund
31 December 31 December
-------------------- 2006 2005
------------ ------------
#'000 #'000
-------------------- ------------ ------------
Fixed Assets
-------------------- ------------ ------------
Investments at fair value through profit
or loss 8,707 -
-------------------- ------------ ------------
Current Assets -
-------------------- ------------ ------------
Debtors 18 -
-------------------- ------------ ------------
Cash at bank 160 -
-------------------- ------------ ------------
178 -
-------------------- ------------ ------------
Creditors: Amounts falling due
-------------------- ------------ ------------
within one year
-------------------- ------------ ------------
Creditors (189) -
-------------------- ------------ ------------
Net Current Liabilities (11) -
-------------------- ------------ ------------
Net Assets 8,696 -
-------------------- ------------ ------------
-------------------- ------------ ------------
Represented by:
-------------------- ------------ ------------
CALLED UP SHARE CAPITAL AND RESERVES
-------------------- ------------ ------------
Share capital 839 -
-------------------- ------------ ------------
Share premium - -
-------------------- ------------ ------------
Special reserve 7,097 -
-------------------- ------------ ------------
Capital reserve realised (88) -
-------------------- ------------ ------------
Capital reserve unrealised 763 -
-------------------- ------------ ------------
Revenue reserve 85 -
-------------------- ------------ ------------
Total equity shareholders' funds 8,696 -
-------------------- ------------ ------------
Net asset value per C Share 103.61p -
-------------------- ------------ ------------
Total
31 December 31 December
-------------------- 2006 2005
------------ ------------
#'000 #'000
-------------------- ------------ ------------
Fixed Assets
-------------------- ------------ ------------
Investments at fair value through profit
or loss 12,979 1,739
-------------------- ------------ ------------
Current Assets
-------------------- ------------ ------------
Debtors 27 95
-------------------- ------------ ------------
Cash at bank 219 2,208
-------------------- ------------ ------------
246 2,303
-------------------- ------------ ------------
Creditors: Amounts falling due
-------------------- ------------ ------------
within one year
-------------------- ------------ ------------
Creditors (228) (184)
-------------------- ------------ ------------
Net Current Assets 18 2,119
-------------------- ------------ ------------
Net Assets 12,997 3,858
-------------------- ------------ ------------
-------------------- ------------ ------------
Represented by:
-------------------- ------------ ------------
CALLED UP SHARE CAPITAL AND RESERVES
-------------------- ------------ ------------
Share capital 1,218 379
-------------------- ------------ ------------
Share premium 21 21
-------------------- ------------ ------------
Special reserve 10,284 3,187
-------------------- ------------ ------------
Capital reserve realised 116 (33)
-------------------- ------------ ------------
Capital reserve unrealised 1,240 303
-------------------- ------------ ------------
Revenue reserve 118 1
-------------------- ------------ ------------
Total equity shareholders' funds 12,997 3,858
-------------------- ------------ ------------
Unaudited Cash Flow Statement
for the year ended 31 December 2006
Ordinary Share Fund
------------
Year ended Period ended
31 December 31 December
---------------------- 2006 2005
------------ ------------
#'000 #'000
---------------------- ------------ ------------
Operating activities
---------------------- ------------ ------------
Investment income received 110 16
---------------------- ------------ ------------
Deposit income received 25 86
---------------------- ------------ ------------
Investment management fees paid (118) -
---------------------- ------------ ------------
Administration fees paid (10) -
---------------------- ------------ ------------
Other cash payments (57) (49)
---------------------- ------------ ------------
Net cash (outflow)/inflow from operating
activities (50) 53
---------------------- ------------ ------------
Taxation (3) -
---------------------- ------------ ------------
Investing activities
---------------------- ------------ ------------
Purchase of investments (3,140) (1,436)
---------------------- ------------ ------------
Sale of investments 1,086 -
---------------------- ------------ ------------
Net cash outflow from investing
activities (2,054) (1,436)
---------------------- ------------ ------------
Equity dividends paid (30) (12)
---------------------- ------------ ------------
Financing
---------------------- ------------ ------------
Proceeds of share issue - 3,792
---------------------- ------------ ------------
Costs of share issue (12) (189)
---------------------- ------------ ------------
Net cash (outflow)/inflow from financing (12) 3,603
---------------------- ------------ ------------
(Decrease)/increase in cash (2,149) 2,208
---------------------- ------------ ------------
C Share Fund
----------------------- ------------ ------------
Period ended Period ended
31 December 31 December
----------------------- 2006 2005
------------ ------------
#'000 #'000
----------------------- ------------ ------------
Operating activities
----------------------- ------------ ------------
Investment income received 167 -
----------------------- ------------ ------------
Deposit income received 43 -
----------------------- ------------ ------------
Investment management fees paid (92) -
----------------------- ------------ ------------
Administration fees paid (14) -
----------------------- ------------ ------------
Other cash payments (58) -
----------------------- ------------ ------------
Net cash inflow from operating
activities 46 -
----------------------- ------------ ------------
Taxation (2) -
----------------------- ------------ ------------
Investing activities
----------------------- ------------ ------------
Purchase of investments (8,767) -
----------------------- ------------ ------------
Sale of investments 838 -
----------------------- ------------ ------------
Net cash outflow from investing
activities (7,929) -
----------------------- ------------ ------------
Financing
----------------------- ------------ ------------
Proceeds of share issue 8,393 -
----------------------- ------------ ------------
Costs of share issue (348) -
----------------------- ------------ ------------
Net cash inflow from financing 8,045 -
----------------------- ------------ ------------
Increase in cash 160 -
----------------------- ------------ ------------
Total
--------------------- ------------- ------------
Year ended Period ended
31 December 31 December
--------------------- 2006 2005
------------- ------------
#'000 #'000
--------------------- ------------- ------------
Operating activities
--------------------- ------------- ------------
Investment income received 277 16
--------------------- ------------- ------------
Deposit income received 68 86
--------------------- ------------- ------------
Investment management fees paid (210) -
--------------------- ------------- ------------
Administration fees paid (24) -
--------------------- ------------- ------------
Other cash payments (115) (49)
--------------------- ------------- ------------
Net cash (outflow)/inflow from operating
activities (4) 53
--------------------- ------------- ------------
Taxation (5) -
--------------------- ------------- ------------
Investing activities
--------------------- ------------- ------------
Purchase of investments (11,907) (1,436)
--------------------- ------------- ------------
Sale of investments 1,924 -
--------------------- ------------- ------------
Net cash outflow from investing
activities (9,983) (1,436)
--------------------- ------------- ------------
Equity dividends paid (30) (12)
--------------------- ------------- ------------
Financing
--------------------- ------------- ------------
Proceeds of share issue 8,393 3,792
--------------------- ------------- ------------
Costs of share issue (360) (189)
--------------------- ------------- ------------
Net cash inflow from financing 8,033 3,603
--------------------- ------------- ------------
(Decrease)/increase in cash (1,989) 2,208
--------------------- ------------- ------------
1. Preliminary statement of annual results
This preliminary statement is not the Company's statutory accounts. The above
results for the year ended 31 December 2006 have been agreed with the Auditors
and are an abridged version of the Company's full draft accounts, which have
not yet been approved, audited or filed with the Registrar of Companies.
The statutory accounts for the year ended 31 December 2005 have been delivered
to the Registrar of Companies and those ended 31 December 2006 will be
dispatched to shareholders shortly. The statutory accounts for the year ended
31 December 2005 received an audit report which was unqualified, did not include
a reference to any matters to which the auditors drew attention by way of
emphasis without qualifying the report, and did not contain statements under
Section 237 (2) and (3) of the Companies Act 1985.
2. The principal accounting policies, all of which have been applied
consistently throughout the year, in the preparation of this preliminary
statement are set out below:
Basis of accounting
The financial statements have been prepared under the historical cost
convention, except where stated below and in accordance with applicable UK
accounting standards. Whilst Venture Capital Trusts ("VCTs") are not included
within the scope of the Statement of Recommended Practice ("the SORP") for
Investment Trust Companies produced by the Association of Investment Trust
Companies ("AIC"), VCTs share many of the characteristics of Investment Trust
Companies and so the Directors have prepared the financial statements on a basis
compliant with the recommendations of the SORP.
Changes in Presentation
The Statement of Total Return is now called the Income Statement, and the Total
column is now the profit and loss account of the Company.
Dividends payable to equity shareholders are no longer reflected in the Income
Statement, they are shown in the Reconciliation of Movements in Shareholders'
Funds which is now presented as a primary statement.
With effect from 1 January 2006 the Company has adopted the following Financial
Reporting
Standards ("FRS"):
FRS 21 Events after the balance sheet date
Dividends payable to shareholders are recognised as a liability in the period in
which they are paid or approved in general meetings. Previously, dividends paid
by the Company were accounted for in the period in which the dividend had been
declared.
FRS 25 Financial Instruments: Disclosure and Presentation and FRS 26 Financial
Instruments: Measurement
All investments held by the Company are classified as "fair value through profit
or loss". For investments actively traded in organised financial markets, fair
value is generally determined by reference to Stock Exchange quoted market bid
prices at the close of business on the balance sheet date. Although not a
requirement until now, the Company had previously valued its investments at bid
value to be consistent with the basis of valuation required in its financial
statements for the year ending 31 December 2006.
No changes to the comparative figures have been required as a result of these
changes in accounting policies.
Investments
As the Company's business is investing in financial assets with a view to
profiting from their total return in the form of increases in fair value,
financial assets are designated as fair value through profit or loss on initial
recognition in accordance with FRS 26. The Company manages and evaluates the
performance of these investments on a fair value basis in accordance with its
investment strategy, and information about the investments is provided on this
basis to the Board of Directors.
Investments held at fair value through profit or loss are initially recognised
at fair value, being the consideration given and excluding material transaction
or other dealing costs associated with the investment, which are expensed and
included in the capital column of the Income Statement.
After initial recognition, investments, which are classified as fair value
through profit or loss, are measured at fair value. Gains or losses on
investments classified as fair value through profit or loss are recognised in
the capital column of the Income Statement, and allocated to the realised and
unrealised capital reserves as appropriate.
All purchases and sales of investments are accounted for on the trade date
basis.
For quoted investments fair value is established by reference to bid, or last,
market prices depending on the convention of the exchange on which the
investment is quoted.
Unquoted investments are valued using an appropriate valuation technique so as
to establish what the transaction price would have been at the balance sheet
date. Such investments are valued with the International Private Equity and
Venture Capital Association (''IPEVCA'') guidelines. Primary indicators of fair
value are derived from earnings multiples, recent arm's length market
transactions or from net assets. Where fair value cannot be reliably measured
the investment will be carried at cost for recent investments or the valuation
as at the previous reporting date.
Those venture capital investments that may be termed associated undertakings are
carried at fair value as determined by the Directors in accordance with the
Company's accounting policy and are not equity accounted as required by the
Companies Act 1985. The Directors consider that, as these investments are held
as part of the Company's portfolio with a view to the ultimate realisation of
capital gains, equity accounting would not give a true and fair view of the
Company's interests in these investments. Quantification of the effect of this
departure is not practicable. Carrying investments at fair value is specifically
permitted under FRS 9 "Associates and Joint Ventures", where venture capital
entities hold investments as part of a portfolio.
The Company's policy is to capitalise transaction costs on acquisition and the
profit or loss on disposal is calculated net of transaction costs on disposal.
FRS 26 requires that transaction costs for financial assets at fair value
through profit or loss be expensed. The total of such expenses, showing the
total amounts included in disposals and additions are disclosed separately in
the notes to the statutory accounts, as recommended by the revised SORP.
Income
Dividends receivable on listed and quoted equity shares and on unlisted funds
are recognised as income on the date on which the shares or units are marked as
ex-dividend. Where no ex- dividend date is available, the income is recognised
when the Company's right to receive it has been established.
Interest receivable from fixed income securities is recognised in income using
the effective interest rate method.
Interest receivable on bank deposits is included in the accounts on an accruals
basis.
Other income is credited to the revenue column of the Income Statement when the
Company's right to receive the income is established.
Expenses
All expenses are accounted for on an accruals basis. Expenses are charged
through revenue in the Income Statement except as follows:
*expenses which are incidental to the acquisition or disposal of an
investment are taken to the capital column of the Income Statement;
*expenses are charged to the capital column in the Income Statement where
a connection with the maintenance or enhancement of the value of the
investments can be demonstrated. In this respect management fees have been
allocated 75% to capital reserve (realised) and 25% to the revenue column in
the Income Statement, being in line with the Board's expected long-term
split of returns, in the form of capital gains and income respectively, from
the investment portfolio of the Company;
*expenses associated with the issue of shares are deducted from share
premium.
Capital reserve
Realised
The following are accounted for as realised returns:
* gains and losses on realisation of investments; and
* expenses, together with the related tax effect, charged to this account
in accordance with the above policies.
Unrealised
The following are accounted for as unrealised returns:
* increases and decreases in the valuation of investments held at the year
end.
Taxation
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more 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 reversals of the underlying timing differences can
be deducted. Timing differences are differences between the Company's taxable
profits and its results as stated in the accounts.
Deferred tax is measured at the average tax rates that are expected to apply in
the periods in which the timing differences are expected to reverse, based on
tax rates and laws that have been enacted or substantially enacted by the
balance sheet date. Deferred tax is measured on a non-discounted basis.
No taxation liability arises on gains from sales of fixed asset investments by
the Company by virtue of its venture capital trust status. However, the net
revenue (excluding UK dividend income) accruing to the Company is liable to
corporation tax at the prevailing rates.
Dividends
Dividends to shareholders are accounted for in the period in which they are paid
or approved in general meetings. This represents a change in accounting policy
as explained in the "Basis of accounting" note above.
Dividends payable to equity shareholders are recognised in the Reconciliation of
Movements in Shareholders' Funds when they are paid, or have been approved by
shareholders in the case of a final dividend and become a liability of the
Company.
3. Income
Ordinary Share Fund
------------------------ ------------- -------------
Year ended Period ended
31 December 31 December
------------------------ 2006 2005
------------- -------------
#'000 #'000
------------------------ ------------- -------------
Income from listed investments
------------------------ ------------- -------------
UK dividend income 98 16
------------------------ ------------- -------------
Unfranked investment income 12 2
------------------------ ------------- -------------
110 18
------------------------ ------------- -------------
Income from unlisted investments
------------------------ ------------- -------------
Unfranked investment income 4 -
------------------------ ------------- -------------
4 -
------------------------ ------------- -------------
Other income
------------------------ ------------- -------------
Bank interest 25 86
------------------------ ------------- -------------
Total income 139 104
------------------------ ------------- -------------
Total income comprises
------------------------ ------------- -------------
Dividends 110 16
------------------------ ------------- -------------
Interest 29 88
------------------------ ------------- -------------
139 104
------------------------ ------------- -------------
C Share Fund
------------------------ ------------- -------------
Period ended Period ended
31 December 31 December
------------------------ 2006 2005
------------- -------------
#'000 #'000
------------------------ ------------- -------------
Income from listed investments
------------------------ ------------- -------------
UK dividend income 129 -
------------------------ ------------- -------------
Unfranked investment income 12 -
------------------------ ------------- -------------
141 -
------------------------ ------------- -------------
Income from unlisted investments
------------------------ ------------- -------------
Unfranked investment income 39 -
------------------------ ------------- -------------
39 -
------------------------ ------------- -------------
Other income
------------------------ ------------- -------------
Bank interest 43 -
------------------------ ------------- -------------
Total income 223 -
------------------------ ------------- -------------
Total income comprises
------------------------ ------------- -------------
Dividends 179 -
------------------------ ------------- -------------
Interest 44 -
------------------------ ------------- -------------
223 -
------------------------ ------------- -------------
Total
------------------------ ------------- -------------
Year ended Period ended
31 December 31 December
------------------------ 2006 2005
------------- -------------
#'000 #'000
------------------------ ------------- -------------
Income from listed investments
------------------------ ------------- -------------
UK dividend income 227 16
------------------------ ------------- -------------
Unfranked investment income 24 2
------------------------ ------------- -------------
251 18
------------------------ ------------- -------------
Income from unlisted investments
------------------------ ------------- -------------
Unfranked investment income 43 -
------------------------ ------------- -------------
43 -
------------------------ ------------- -------------
Other income
------------------------ ------------- -------------
Bank interest 68 86
------------------------ ------------- -------------
Total income 362 104
------------------------ ------------- -------------
Total income comprises
------------------------ ------------- -------------
Dividends 289 16
------------------------ ------------- -------------
Interest 73 88
------------------------ ------------- -------------
362 104
------------------------ ------------- -------------
4. Return per Share
-------------- ------------------ -----------------
Year ended Period ended
31 December 31 December
-------------- 2006 2005
------------------ -----------------
------- ------- ------- ------
Revenue Capital Total Revenue Capital Total
-------------- -------- ------- ------- ------- ------- ------
pence pence pence pence pence pence
-------------- -------- ------- ------- ------- ------- ------
Ordinary Share 1.65 10.82 12.47 0.41 8.49 8.90
-------------- -------- ------- ------- ------- ------- ------
C Share 1.14 9.10 10.24 - - -
-------------- -------- ------- ------- ------- ------- ------
Ordinary Shares
Revenue return per Ordinary Share is based on the net revenue on ordinary
activities attributable to the Ordinary Shares of #62,000 (31 December 2005:
#13,000) and on 3,793,562 (31 December 2005: 3,177,455) Ordinary Shares, being
the weighted average number of Ordinary Shares in issue during the year.
Capital return per Ordinary Share is based on the net capital gain for the
period of #411,000 (31 December 2005: #270,000) and on 3,793,562 (31 December
2005: 3,177,455) Ordinary Shares, being the weighted average number of Ordinary
Shares in issue during the year.
The total return per Ordinary Share is based on the total return on ordinary
activities attributable to the Ordinary Shares of #473,000 (31 December 2005:
#283,000) and on 3,793,562 (31 December 2005: 3,177,455) Ordinary Shares, being
the weighted average number of Ordinary Shares in issue during the year.
C Shares
Revenue return per C Share is based on the net revenue on ordinary activities
attributable to the C Shares of #85,000 and on 7,417,605 C Shares, being the
weighted average number of C Shares in issue during the period.
Capital return per C Share is based on the net capital gain for the period of
#675,000 and on 7,417,605 C Shares, being the weighted average number of C
Shares in issue during the period.
Total return per C Share is based on the total return on ordinary activities
attributable to the C Shares of #760,000 and on 7,417,605 C Shares, being the
weighted average number of C Shares in issue during the period.
5. Net asset value per share
------------- --------------
31 December 31 December
----------------------- 2006 2005
------------- --------------
pence pence
----------------------- ------------- --------------
Ordinary Shares of 10p each 113.4 101.7
----------------------- ------------- --------------
C Shares of 10p each 103.6 -
----------------------- ------------- --------------
The basic net asset value per Ordinary Share is based on net assets (including
current period revenue) of #4,301,000 (31 December 2005: #3,858,000) and on
3,793,562 (31 December 2005: 3,793,562) Ordinary Shares, being the number of
shares in issue at the end of the year.
The basic net asset value per C Share is based on net assets (including current
period revenue) of #8,696,000 and on 8,393,209 C Shares, being the number of
shares in issue at the end of the period.
6. Dividends
-------------------- --------------- ---------------
Year ended Period ended
31 December 31 December
-------------------- 2006 2005
--------------- ---------------
#'000 #'000
-------------------- --------------- ---------------
Declared and paid:
-------------------- --------------- ---------------
Interim dividend of 0.8p (2005: 1p) per
eligible Ordinary Share 30 12
-------------------- --------------- ---------------
Proposed:
-------------------- --------------- ---------------
Final dividend of 3.2p (2005: 0p) per
eligible Ordinary Share 121 -
-------------------- --------------- ---------------
Final dividend of 1p (2005: 0p) per
eligible C Share 84 -
-------------------- --------------- ---------------
The Directors will be recommending final dividends as noted above to the
Ordinary shareholders and to the C shareholders in respect of the year ended 31
December 2006. The final dividends are not included as a liability in these
accounts in accordance with the accounting policies.
The final dividend proposed on the Ordinary Share Fund will be made up of 0.8
pence from income and 2.4 pence from capital. The final dividend proposed on the
C Share Fund will be made up of 1 pence from revenue.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEEFWESWSESD
Neptune-calculus Inc&growth Vct (LSE:NEPC)
過去 株価チャート
から 5 2024 まで 6 2024
Neptune-calculus Inc&growth Vct (LSE:NEPC)
過去 株価チャート
から 6 2023 まで 6 2024
