RNS
Unaudited Half-Yearly Report
For the period
6 Months Ended | Year Ended | |
Net Assets At Period End | £1.97m | £2.43m |
Net Asset Value (NAV) Per Share | 36.2p | 44.7p |
Cumulative Dividend Per Share | 55.0p | 55.0p |
Total NAV Return Per Share | 91.2p | 99.7p |
Share Price At Period End (Mid-Market) | 28.0p | 33.0p |
Earnings Per Share | (8.5)p | (4.9)p |
Statement on behalf of the Board
I am pleased to present the unaudited results for the six month period ended
The six months to
Results and Dividend
The Company’s net asset value (NAV) per ordinary share has decreased by 8.5p per share from 44.7p at
As noted above, the NAV as at
The Directors are not recommending the payment of a dividend at this time.
Portfolio Review
Select Technology distributes high quality document management software via its global channel partners while adding significant further value through its development team by providing integrations and bespoke solutions. Sales have been significantly affected by Covid-19 with sales from February to July, being about 50% down on the previous six months. However, the greatest impact was in April and May. Sales have revived somewhat in the most recent months and the hope is that this continues. Select Technology has typically paid a regular dividend, but we are not assuming that Select Technology will be in a position to distribute excess cash in the immediate near future. The Company’s stake in Select Technology was nearly 60% of NAV as at
Scancell continues to develop its multiple technologies. The SCIB1 Phase 2 clinical trial programme will continue with further sites later this year and the Modi-1 Phase1/2 trial is progressing for regulatory submission with a planned study start in the
The other two smaller stakes in the portfolio have moved in different directions, without materially affecting the Company’s overall NAV. BioCote has seen a modest increase in value – in the current climate there has been substantial interest in its products but this has not translated into a material increase in sales. Getmapping’s value has fallen given ongoing uncertainty in its markets. After the period end,
The Directors, along with the Investment Adviser, continue to take an active interest in the companies within the portfolio, both to support their management teams to achieve company development, but also to prepare companies for realisation at the appropriate time. It should however be noted that approaches do occur at other times, and the ability of the Directors and Investment Adviser to be able to provide support when such approaches occur is essential for maximising value.
VCT qualifying status
The small size of the VCT means significant focus is required to ensure we retain sufficient working capital to manage the Company whilst meeting all the conditions laid down by HMRC for maintaining approval as a VCT. The Board has procedures in place to ensure that the Company continues to comply with these conditions, in particular the new 80% qualifying holding limit which has been in place since
Presentation of half-yearly report
In order to reduce the length of this report, we have omitted details of the Company’s objectives and investment strategy, its Advisers and Registrar and how to buy and sell shares in the Company. These details are all included in the Annual Reports, which together with previous half-yearly reports, are available for viewing on the Oxford Technology website.
Cost Control
As we have previously reported, your Board continues to look at methods of improving operational efficiency, reducing costs and, more generally, putting in place appropriate plans to ensure that your VCT’s operational costs relative to its overall size remain within acceptable limits. Our investment management fees, Directors’ fees and auditors’ remuneration are amongst the lowest in the VCT industry. The largest remaining elements of cost are the LSE listing fee at almost £10k and the
Outlook
Nothing has changed in our plans for your Company. We continue to believe your VCT is an appropriate structure to hold your Company’s investments, but as we have indicated for some time, it would be preferable to have a larger asset base to share the operating costs. I have reported previously of our efforts to seek prospective parties who are potentially interested in entering the VCT industry. This initiative is currently on hold whilst any such possible organisations are entirely focussed on more immediate actions within their own businesses as a result of the Covid-19 pandemic. We have always made clear that there is no certainty such a route can be achieved, but the Directors will continue seeking such opportunities when the future outlook has become clearer. Furthermore, whatever the outcome of the discussions with the LSE, the seemingly relentless upward trajectory of these regulatory costs has resulted in your Directors revisiting the economics of a merger with some or all the other VCTs in the Oxford Technology stable; such a transaction is not without risk and it is by no means clear that it would be in your Company’s best interests to participate in such a transaction. We will update shareholders if and when these discussions reach a conclusion, and in any event, shareholder approval would then be required before any transaction could proceed.
Apart from the change to investment qualifying levels, there have been no recent changes to VCT legislation, or their potential impact on both the VCT and its investee companies. It is still too early to fully assess the impact of Covid-19, and the resulting government interventions. Whilst the impact of Brexit remains unclear, your Directors do not expect its eventual outcome to have a material impact on portfolio valuations. Your Board and Investment Advisor continue to work so as to best position your VCT such that, when valuations and liquidity allow, holdings can be exited and proceeds distributed to shareholders, whilst keeping a keen eye on maintaining costs as low as possible in the interim.
Finally, I would like to take this opportunity to thank shareholders for their continued support. We were delighted a significant number of you managed to attend our zoom AGM, and we will consider the merits of future online forums in due course which allow a greater number of shareholders to attend. We hope our shareholders have not been too personally affected by the difficulties this year and look forward to a return to an ‘old normal’ as soon as possible.
Investment Portfolio as at
Company | Description | Carrying value at £’000 | Change in value for the 6 month period £’000 | % Equity held OT1 | % Equity held All OTVCTs | % Net assets | |
Select – | Specialist Photocopier interfaces | 488 | 1,155 | (513) | 30.0 | 58.6 | 58.7 |
Scancell (bid price 8.0p) | Antibody based cancer therapeutics | 326 | 522 | 82 | 1.0 | 2.0 | 26.5 |
BioCote | Bactericidal additives | 85 | 180 | 15 | 6.6 | 6.6 | 9.2 |
Aerial photography | 518 | 115 | (52) | 3.7 | 3.7 | 5.8 | |
Total Investments | 1,417 | 1,972 | (468) | 100.2 | |||
Other Net Liabilities | | (5) | (0.2) | ||||
Net Assets | 1,967 | 100.0 |
Responsibility Statement of the Directors in respect of the half-yearly report
We confirm that to the best of our knowledge:
- the half-yearly financial statements have been prepared in accordance with the statement “Interim Financial Reporting” issued by the
Financial Reporting Council ;
- the half-yearly report includes a fair review of the information required by the Financial Services Authority Disclosure and Transparency Rules, being:
- an indication of the important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements.
- a description of the principal risks and uncertainties for the remaining six months of the year.
- a description of related party transactions that have taken place in the first six months of the current financial year that may have materially affected the financial position or performance of the Company during that period and any changes in the related party transactions described in the last annual report that could do so.
- The assets of the Company include cash and shares in an AIM quoted company which is quite liquid and readily accessible. After reviewing the forecast for the Company, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing the half year accounts.
On behalf of the Board:
Income Statement
Six months to | Six months to | Year to | |||||||
Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total | |
£'000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Gain on disposal of fixed asset investments | - | 7 | 7 | - | - | - | - | - | - |
Unrealised (loss)/ gain on valuation of fixed asset investments | - | (445) | (445) | - | 17 | 17 | - | (230) | (230) |
Investment income | 10 | - | 10 | 10 | - | 10 | 27 | - | 27 |
Investment management fees | (6) | - | (6) | (2) | (5) | (7) | (13) | (13) | |
Other expenses | (27) | - | (27) | (23) | - | (23) | (49) | - | (49) |
Return on ordinary activities before tax | (23) | (438) | (461) | (15) | 12 | (3) | (35) | (230) | (265) |
Taxation on ordinary activities | - | - | - | - | - | - | - | - | - |
Return on ordinary activities after tax | (23) | (438) | (461) | (15) | 12 | (3) | (35) | (230) | (265) |
Earnings per share – basic and diluted | (0.4)p | (8.1)p | (8.5)p | (0.3)p | 0.2p | (0.1)p | (0.7)p | (4.2)p | (4.9)p |
There was no other Comprehensive Income recognised during the year.
The ‘Total’ column of the Income Statement is the Profit and Loss Account of the Company, the supplementary Revenue and Capital return columns have been prepared under guidance published by the
All Revenue and Capital items in the above statement derive from continuing operations.
The Company has only one class of business and derives its income from investments made in shares and securities and from bank and money market funds.
Balance Sheet
As at | As at | As at | ||||
£’000 | £’000 | £’000 | £’000 | £'000 | £'000 | |
Fixed asset investments at fair value | 1,972 | 2,687 | 2,440 | |||
Debtors | 4 | 8 | 10 | |||
Cash at Bank | 36 | 16 | 18 | |||
Creditors: amounts falling due within one year | (45) | (21) | (40) | |||
Net current (liabilities)/assets | (5) | 3 | (12) | |||
Net assets | 1,967 | 2,690 | 2,428 | |||
Called up share capital | 543 | 543 | 543 | |||
Share premium reserve | 176 | 176 | 176 | |||
Unrealised capital reserve | 555 | 1,252 | 1,005 | |||
Profit and Loss account | 693 | 719 | 704 | |||
Total equity shareholders' funds | 1,967 | 2,690 | 2,428 | |||
Net asset value per share | 36.2p | 49.5p | 44.7p |
Statement of Changes in Equity
Share Capital £’000 | Share Premium Reserve £’000 | Unrealised Capital Reserve £’000 | Profit & Loss Account £’000 | Total £’000 | |
As at | 543 | 176 | 1,235 | 739 | 2,693 |
Revenue return on ordinary activities after tax | - | - | - | (20) | (20) |
Current period gains on fair value of investments | - | - | 17 | - | 17 |
Balance as at | 543 | 176 | 1,252 | 719 | 2,690 |
As at | 543 | 176 | 1,235 | 739 | 2,693 |
Revenue return on ordinary activities after tax | - | - | - | (35) | (35) |
Current period losses on fair value of investments | - | - | (230) | - | (230) |
Balance as at | 543 | 176 | 1,005 | 704 | 2,428 |
As at | 543 | 176 | 1,005 | 704 | 2,428 |
Revenue return on ordinary activities after tax | - | - | - | (23) | (23) |
Current period gains on disposal | - | - | - | 7 | 7 |
Prior year unrealised gains now realised | - | - | (5) | 5 | - |
Current period losses on fair value of investments | - | - | (445) | - | (445) |
Balance as at | 543 | 176 | 555 | 693 | 1,967 |
Statement of Cash Flows
Six months to | Six months to | Year to | |
£'000 | £’000 | £'000 | |
Cash flows from operating activities | |||
Return on ordinary activities before tax | (461) | (3) | (265) |
Adjustments for: | |||
Loss/(gain) on valuation of fixed asset investments | 445 | (17) | 230 |
Gains on disposal of fixed asset investments | (7) | - | - |
Increase in creditors | 5 | 9 | 28 |
Decrease/(increase) in debtors | 6 | (6) | (8) |
Outflow from operating activities | (12) | (17) | (15) |
Cash flows from investing activities | |||
Purchase of fixed asset investments | - | - | - |
Disposal of investments | 30 | - | - |
Total cash flows from investing activities | 18 | - | - |
Cash flows from financing activities | |||
Total cash flows from financing activities | - | - | - |
Decrease in cash and cash equivalents | 18 | (17) | (15) |
Opening cash and cash equivalents | 18 | 33 | 33 |
Closing cash and cash equivalents | 36 | 16 | 18 |
Notes to the Half-Yearly Report
1. Basis of preparation
The unaudited half-yearly results which cover the six months to
2. Publication of non-statutory accounts
The unaudited half-yearly results for the six months ended
3. Earnings per share
The calculation of earnings per share for the period is based on the return attributable to shareholders divided by the weighted average number of shares in issue during the period. There are no potentially dilutive capital instruments in issue and, therefore, no diluted returns per share figures are relevant.
4. Net asset value per share
The net asset value per share is based on the net assets at the period end divided by the number of shares in issue at that date (5,431,655 in each case).
5. Principal risks and uncertainties
The Company’s assets consist of equity and fixed interest investments, cash and liquid resources. Its principal risks are therefore market risk, credit risk and liquidity risk. Other risks faced by the Company include economic, loss of approval as a
6. Related party transactions
7. Events after the balance sheet date
On
8. Copies of this statement are available from
Board Directors:
Investment Manager:
Website: www.oxfordtechnologyvct.com/vct1.html
The information above is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014). Upon the publication of this announcement via a
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