Half-yearly report
31 Agosto 2011 - 11:32AM
UK Regulatory
TIDMDPV9
Downing Planned Exit VCT 9 plc
Half-Yearly Report for the six months ended 30 June 2011
PERFORMANCE SUMMARY
30 Jun 31 Dec 30 Jun
2011 2010 2010
Pence Pence Pence
Net asset value per Ordinary Share 84.7 83.8 80.4
Net asset value per 'A' Share 0.1 0.1 0.1
Cumulative distributions per Ordinary Share 7.5 5.0 5.0
-------- -------- -------
Total return per Ordinary Share and 'A' Share 92.3 88.9 85.5
CHAIRMAN'S STATEMENT
I present the Company's Half-Yearly Report for the period ended 30 June 2011.
Investment activity
During the period, the Company made one small qualifying follow-on investment in
The Thames Club Limited. GBP25,000 was invested, alongside funds from other
investors, to provide additional working capital for the business.
The Company also made a non-qualifying investment of GBP250,000 in Future Biogas
(SF) Limited. The investment comprises wholly of loan stock and is secured by a
charge over the anaerobic digestion plant and machinery owned by the business.
The investment has an attractive yield and is expected to be redeemed in line
with the Company's timetable for returning funds to Shareholders.
Two redemptions of non-qualifying loan stock investments also took place in the
period, producing proceeds of GBP328,000.
Investment valuations
The Board has undertaken a review of the investment valuations at the period end
and made no adjustments from the carrying values from the previous year-end.
Three of the Company's investments remain valued below original cost. The Thames
Club is making progress, but at a slow rate, in rebuilding its health club
membership base after a major refurbishment. It continues to be valued at
GBP350,000 below original cost.
Horsham Bowl, which operates a nightclub and bowling alley, continues to
struggle in a very challenging economic climate. The investment, similarly,
continues to be valued at GBP180,000 below original cost.
West Tower Holdings owns and operates a wedding venue and restaurant. Both
businesses are making progress and, in time, there appear to be prospects for a
recovery in value. However, for the time being, the investment is valued at
GBP400,000 below original cost.
No other investments have experienced significant departures from plan which
impact on their valuations and, accordingly, continue to be valued at original
cost or near to it.
Net asset value and results
The Company generated a significant level of loan stock interest in the period
which has helped to lift the Company's net asset value ("NAV"). At 30 June
2011, the NAV per Ordinary Share stood at 84.7p and the NAV per 'A' Share stood
at 0.1p, producing a combined total of 84.8p. This is an increase of 3.4p per
share (4.1%) since 31 December 2010 (after adjusting for the 2.5p dividend paid
during the period). Total Return (NAV plus cumulative dividends paid to date)
has now reached an aggregate 92.3p per Ordinary Share and 'A' Share combined.
The profit on ordinary activities after taxation for the period was GBP300,000.
Share buybacks
The Company operates a policy, subject to certain restrictions, of buying its
own shares when any become available in the market. Buybacks will generally be
undertaken at a 10% discount to the latest NAV, but the Directors regularly
review this discount level and make adjustments if they believe it is
appropriate.
No shares were purchased in the period for cancellation.
Risk and uncertainties
Under the Disclosure and Transparency Directive, the Board is required, in the
Company's Half-Year Results, to report on principal risks and uncertainties
facing the Company over the remainder of the financial year.
The Board has concluded that the key risks facing the Company over the remainder
of the financial period are as follows:
(i) investment risk associated with investing in small and immature
businesses; and
(ii) failure to maintain provisional approval as a VCT.
In order to make VCT-qualifying investments, the Company has to invest in small
businesses which are often immature. The Investment Manager has followed a
rigorous process in vetting and carefully structuring new investments, including
taking a charge over the assets of the business wherever possible and, after an
investment is made, closely monitors the business. The Board is satisfied that
this approach reduces the investment risks described in (i) as far as reasonably
possible.
The Company's compliance with the VCT regulations is continually monitored by
the Administration Manager, who reports regularly to the Board on the current
position. The Company also retains PricewaterhouseCoopers to provide regular
reviews and advice in this area. The Board considers that this approach reduces
the risk of a breach of the VCT regulations to an acceptable level.
Going concern
The Company has sufficient financial resources at the period end, and holds a
diversified portfolio of investments. As a consequence, the Directors believe
that the Company is well placed to manage its business risks successfully
despite the uncertain economic outlook.
The Directors confirm that they are satisfied that the Company has adequate
resources to continue in business for the foreseeable future. For this reason,
they believe that the Company continues to be a going concern and that it is
appropriate to apply the going concern basis in preparing the financial
statements.
Outlook
The Company is now in the phase of its life where it is fully invested but there
is some time to go before it will seek to start unwinding its investment
portfolio. The process of returning funds to Shareholders is due to commence in
2013.
The Manager remains focussed on monitoring and supporting portfolio companies
during these challenging times, and is now also starting to look ahead to
possible exit plans for some of the investments so that these can be developed
over the next two years.
Hugh Gillespie
Chairman
UNAUDITED BALANCE SHEET
as at 30 June 2011
30 Jun 30 Jun 31 Dec
2011 2010 2010
GBP'000 GBP'000 GBP'000
Fixed assets
Investments 6,853 6,637 6,906
Current assets
Debtors 442 43 113
Cash at bank and in hand 261 455 316
-------- -------- -------
703 498 429
Creditors: amounts falling due within one year (207) (157) (70)
-------- -------- -------
Net current assets 496 341 359
-------- -------- -------
Net assets 7,349 6,978 7,265
Capital and reserves
Called up Ordinary Share capital 9 9 9
Called up 'A' Share capital 13 13 13
Deferred share capital 3 3 3
Special reserve 7,818 8,034 8,034
Revaluation reserve (781) (980) (781)
Capital reserve - realised 9 9 9
Revenue reserve 278 (110) (22)
-------- -------- -------
Equity shareholders' funds 7,349 6,978 7,265
Net asset value per Ordinary Share 84.7p 80.4p 83.8p
Net asset value per 'A' Share 0.1p 0.1p 0.1p
-------- -------- -------
84.8p 80.5p 83.9p
UNAUDITED INCOME STATEMENT
for the six months ended 30 June 2011
Six months ended
30 June 2011
Revenue Capital Total
GBP'000 GBP'000 GBP'000
Income 519 - 519
Losses on investments - - -
--------- --------- ------
519 - 519
Investment management fees (42) - (42)
Other expenses (63) - (63)
--------- --------- ------
Return on ordinary activities before taxation 414 - 414
Taxation (114) - (114)
--------- --------- ------
Return attributable to equity shareholders 300 - 300
Return per Ordinary Share 3.4p - 3.4p
Return per 'A' Share - - -
Six months ended Year
ended
30 Jun 2010 31 Dec
2010
Revenue Capital Total Total
GBP'000 GBP'000 GBP'000 GBP'000
Income 91 - 91 256
Losses on investments - (323) (323) (124)
--------- --------- -------- --------
91 (323) (232) 132
Investment management fees (51) - (51) (91)
Other expenses (164) - (164) (198)
--------- --------- -------- --------
Return on ordinary activities before (124) (323) (447) (157)
taxation
Taxation - - - (2)
--------- --------- -------- --------
Return attributable to equity shareholders (124) (323) (447) (159)
Return per Ordinary Share (1.4p) (3.7p) (5.1p) (1.8p)
Return per 'A' Share - - - -
A Statement of Total Recognised Gains and Losses has not been prepared as all
gains and losses are recognised in the Income Statement as noted above.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the six months ended 30 June 2011
30 Jun 30 Jun 31 Dec
2011 2010 2010
GBP'000 GBP'000 GBP'000
Opening Shareholders' funds 7,265 7,641 7,641
Total recognised profit/(loss) for the period 300 (447) (217)
Dividends paid (216) (216) (159)
-------- -------- -------
Closing Shareholders' funds 7,349 6,978 7,265
UNAUDITED CASH FLOW STATEMENT
for the six months ended 30 June 2011
30 Jun 2011 30 Jun 2010 31 Dec 2010
Note GBP'000 GBP'000 GBP'000
Cash (outflow)/inflow from
operating activities and returns on 1
investments 108 (9) 5
------------- ------------- ------------
Taxation
Corporation tax paid - - (82)
Capital expenditure
Purchase of investments (275) (1,102) (1,172)
Sale of investments 328 1,055 1,055
------------- ------------- ------------
Net cash outflow from capital 53 (47) (117)
expenditure
------------- ------------- ------------
Equity dividends paid (216) (216) (217)
Net cash outflow before financing (55) (272) (411)
Financing
Net cash inflow from financing - - -
------------- ------------- ------------
(Decrease) in cash 2 (55) (272) (411)
Notes to the cash flow statement:
1 Cash inflow from operating
activities and returns on
investments
Net revenue before taxation 414 (447) (157)
Losses on investments - 323 124
Increase/(decrease) in other (329) 125 55
debtors
(Decrease)/increase in other (13) (9) (7)
creditors
(Decrease) in amounts due to
subsidiary undertaking 36 (1) (10)
------------- ------------- ------------
Net cash inflow from operating 108 (9) 5
activities
2 Analysis of net funds
Beginning of period 316 727 727
Net cash (outflow) (55) (272) (411)
------------- ------------- ------------
End of period 261 455 316
SUMMARY OF INVESTMENT PORTFOLIO
as at 30 June 2011
Unrealised % of
Cost Valuation gain/(loss) portfolio
GBP'000 GBP'000 GBP'000 by value
VCT-qualifying
Crossco (1135) Limited t/a Complete
Childcare 998 998 - 14.0%
Hoole Hall Country Club Holdings Limited 750 806 - 11.3%
West Tower Holding Limited 1,150 750 - 10.6%
Cadbury House Holdings Limited 700 750 - 10.6%
The Thames Club Limited 1,075 725 - 10.2%
Hoole Hall Spa and Leisure Club Limited 562 605 - 8.5%
Horsham Bowl Limited 600 420 - 5.9%
Chapel Street Food and Beverage Limited 50 50 - 0.7%
Chapel Street Services Limited 50 50 - 0.7%
---------------------------------------
5,935 5,154 - 72.5%
---------------------------------------
Non VCT-qualifying
Kings Gap Group Limited 400 400 - 5.6%
Hoole Hall Country Club Holdings Limited 344 344 - 4.8%
Horsham Bowl Limited 261 261 - 3.7%
Sanguine Hospitality Limited 250 250 - 3.5%
Future Biogas (SF) Limited 250 250 - 3.5%
Bijou Wedding Venues Limited 100 100 - 1.4%
Fenkle Street LLP 92 92 - 1.3%
Chapel Street Hotel Limited 2 2 - 0.0%
Brunswick International Associates
Limited - - - 0.0%
The Swan Holding Company - - - 0.0%
Hoole Hall Hotel Limited - - - 0.0%
---------------------------------------
1,699 1,699 - 23.8%
---------------------------------------
Total investments 7,634 - 96.3%
Cash at bank and in hand 261 3.7%
----------- ----------
Total 7,114 100.0%
SUMMARY OF INVESTMENT MOVEMENTS
as at 30 June 2011
Additions
GBP'000
VCT-qualifying investments Activity
The Thames Club Limited Health and fitness club 25
www.thethamesclub.co.uk
Non VCT-qualifying investments
Future Biogas (SF) Limited Biogas plant 250
www.futurebiogas.com
--------
275
Disposals Profit/(loss)
Cost Proceeds Gain/(loss) in period
Non VCT-qualifying investments GBP'000 GBP'000 GBP'000 GBP'000
Loan Stock redemptions:
Fenkle Street LLP 308 308 - -
Fenkle Street Developments LLP 20 20 - -
------- ---------- ------------- -------------
328 328 - -
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
1. The unaudited half yearly financial results cover the six months to 30 June
2011 and have been prepared in accordance with the accounting policies set out
in the statutory accounts for the year ended 31 December 2010 which were
prepared under UK Generally Accepted Accounting Practice ("UK GAAP") and in
accordance with the Statement of Recommended Practice "Financial Statements of
Investment Trust Companies and Venture Capital Trusts" revised January 2009
("SORP").
2. All revenue and capital items in the Income Statement derive from continuing
operations.
3. The Company has only one class of business and derives its income from
investments made in shares, securities and bank deposits.
4. Net asset value per share at the period end has been calculated on
8,657,673 Ordinary Shares and 12,986,507 'A' Shares, being the number of shares
in issue at the period end.
5. Return per share for the period has been calculated on 8,657,673 Ordinary
Shares and 12,986,507 'A' Shares, being the weighted average number of shares in
issue during the period.
6. Reserves
Capital
Special Revaluation reserve - Revenue
reserve reserve realised reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 December 2010 8,034 (781) 9 (22) 7,240
Losses on - - - - -
investments
Distributions paid (216) - - - (216)
Retained net - - - 300 300
revenue
-------------------------------------------------------------
At 30 June 2011 7,818 (781) 9 278 7,324
The Revenue reserve and Special reserves are distributable reserves.
7. The unaudited financial statements set out herein do not constitute
statutory accounts within the meaning of Section 434 of the Companies Act 2006
and have not been delivered to the Registrar of Companies.
8. The Directors confirm that, to the best of their knowledge, the half-yearly
financial statements have been prepared in accordance with the "Statement: Half-
Yearly Financial Reports" issued by the UK Accounting Standards Board and the
half-yearly financial report includes a fair review of the information required
by:
a. DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months of
the financial year and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the year; and
b. DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period, and any changes in the related
party transactions described in the last annual report that could do so.
9. Copies of the Half-Yearly Report will be sent to Shareholders shortly.
Further copies can be obtained from the Company's registered office or can be
downloaded from www.downing.co.uk
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: DOWNING PLANNED EXIT VCT 9 PLC via Thomson Reuters ONE
[HUG#1542916]
Down. Plan 9 (LSE:DPV9)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Down. Plan 9 (LSE:DPV9)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
