TIDMPPE
ProVen Planned Exit VCT plc announces audited initial
accounts for the period from 2 August 2010 to 31 October 2011.
Chairman's Statement
Introduction
I have pleasure in presenting initial accounts for ProVen Planned Exit VCT plc
("the Company") to shareholders. The accounts cover the period from the
Company's launch on 2 August 2010 to 31 October 2011, although the Company first
issued new shares to shareholders on 28 March 2011. The Company is required to
produce an annual report to shareholders for the period through to 31 January
2012 and thereafter will produce an interim report to 31 July and a full year
report to 31 January each year.
The period under review has been one of considerable uncertainty and so the
Company's funds have been kept in high quality cash deposits and money market
funds, consistent with our objective of being a lower risk VCT. Although the
Investment Manager has been active in reviewing potential investments, no
investments have yet been made. Whilst this cautious approach has resulted in an
overall net loss for the period, the annual expenses cap of 3.5% of net assets
provides downside protection to investors.
Original share offer
The Company launched an offer for subscription ("the Offer") on 2 November
2010. The Offer closed on 16 September 2011 having raised gross funds from
investors of GBP4.7 million. The Company issued a total of 4,818,235 Ordinary
Shares and 7,227,352 'A' Shares under the Offer which produced net proceeds,
after issue costs, of GBP4.6 million.
Shareholders who subscribed under the Offer were issued equal numbers of
Ordinary and 'A' Shares. In accordance with terms of the Offer, the Investment
Manager was allotted 2.4 million 'A' Shares. The 'A' Shares are expected to have
a net asset value of 0.1p per share for the initial years of the Company's life
and this will only change if, and when, a certain level of return has been made
to the Ordinary Shareholders. This has been discussed further in note 11 to the
accounts.
Net asset value and results
At 31 October 2011, the net asset value per Ordinary Share stood at 91.9p and
the net asset value per 'A' Share was 0.1p.The loss on ordinary activities after
taxation for the period was GBP124,000 comprising a revenue loss of GBP83,000 and a
capital loss of GBP41,000. The loss arose as a result of the low yields on cash
investments not covering the running expenses of the Company.
Dividends
The Directors intend that the Company pays two dividends per year of 3p each,
subject to the availability of sufficient cash reserves and distributable
reserves. I have pleasure in announcing that the Company's first dividend of 3p
per Ordinary Share will be paid on 21 December 2011 to Ordinary Shareholders on
the register at 9 December 2011.
Share buybacks
The Directors intend that, in the five years following the first allotment of
shares, the Company will operate a policy of buying in its own shares for
cancellation at a zero discount to net asset value. It should be noted, however,
that a disposal of VCT shares within five years from allotment will result in
the loss of the initial income tax relief. Given the intended life of the
Company, it is not intended that any shares will be bought back after the 5(th)
anniversary of the first allotment of shares.
No shares were purchased by the Company during the period.
Cancellation of share premium account
On 19 October 2011, the Company cancelled its share premium account created on
the issue of shares and created a special distributable reserve. This special
reserve can be used by the Company for the cancellation of its shares, and other
corporate purposes including the payment of dividends.
Risks and uncertainties
Under the Disclosure and Transparency Rules, the Board is required 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 year are as follows:
i. investment risk associated with investing in
small and immature businesses;
ii. investment risk arising from extremely
volatile stock market conditions and their potential effect on the value of the
Company's investments;
iii. failure to secure approval as a VCT.
In respect of (i) and (ii), the Board is satisfied with the Company's approach.
The Investment Manager follows a rigorous process in vetting and careful
structuring of new investments.
In respect of (iii), the Company has been granted provisional approval as a
venture capital trust. Full approval can, as with all VCTs, only be granted when
all VCT rules have been met. This includes having at least 70% of the Company's
investments in VCT qualifying investments, a target which the Company has until
31 January 2014 to achieve. The Company's compliance with the VCT regulations is
continually monitored by the Investment 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 a minimal
level.
Going concern
The Company has sufficient financial resources at the period end, with the
majority of its assets in cash and cash equivalents. The Directors believe,
therefore, that the Company is well placed to manage its business risks
successfully despite the current 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's immediate objective is to make a number of VCT qualifying
investments, in order to generate the targeted returns for shareholders.
The wider economic background remains challenging for many businesses and
consumers. Nevertheless, small businesses will continue to require funding. The
apparent reluctance of banks to provide this funding is likely to increase the
number of investment opportunities for the Company. Consequently,
notwithstanding the wider economic position, the Board is optimistic that a
number of good investment opportunities lie ahead.
Peter Hewitt
Chairman
1 December 2011
Investment Manager's Review
Introduction
We have pleasure in presenting our first report for ProVen Planned Exit VCT plc
("the Company") for the period through to 31 October 2011.
Background
Economic conditions remain challenging for UK businesses. Continuing uncertainty
about future prospects is making it difficult for entrepreneurs to make
investment decisions. On the other hand, the continuing reluctance of banks to
provide loans to small businesses is creating new opportunities for alternative
funders, like VCTs. We therefore remain confident that there is a good market
opportunity for the Company to build up a strong portfolio of VCT qualifying
venture capital investments which will be able to deliver the targeted returns.
Investment activity
Over the period covered by these accounts we have investigated a number of
opportunities in the Company's target sectors of education, health and renewable
energy. As of the date of this report none of these investments had completed
but we expect to close the Company's first venture capital investments shortly.
During the period the Company's assets were invested in low-risk cash deposits
and money-market funds. As we start to make VCT qualifying investments, the
remainder of the Company's funds will continue to be invested in non-qualifying
investments which are consistent with its objective of being a lower risk VCT.
Outlook
Our principal objective over the next six months is to make a number of VCT
qualifying investments in companies with substantial assets or having reliable
revenue streams from financially sound customers, in order to meet the targeted
investment returns. We continue to see a flow of investment opportunities but
will continue to be rigorous in our evaluation of these to ensure that the
Company builds up a robust portfolio of VCT qualifying investments. Discussions
are well advanced on a number of potential venture capital investments and we
expect that the Company will complete its first investment shortly.
Beringea LLP
1 December 2011
Statement of Directors' Responsibilities
The directors are responsible for preparing the initial accounts in accordance
with applicable law and regulations.
The directors have elected to prepare the initial accounts in accordance with
United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting
Standards and applicable law).
Under company law the directors must not approve the initial accounts unless
they are satisfied that they give a true and a fair view of the state of affairs
and the profit or loss of the Company for that period. In preparing these
initial accounts the directors are required to:
· select suitable accounting policies and then apply them consistently;
· make judgments and estimates that are reasonable and prudent;
· state whether applicable accounting standards have been followed,
subject to any material departures disclosed and explained in the initial
accounts;
· prepare the initial accounts on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and enable
them to ensure that the initial accounts comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Company and hence
for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
The directors are responsible for the maintenance and integrity of the corporate
and financial information included on the Company's website. Legislation in the
United Kingdom governing the preparation and dissemination of the financial
statements and other information included in annual reports may differ from
legislation in other jurisdictions.
The directors confirm, to the best of their knowledge that the initial accounts,
which have been prepared in accordance with UK Generally Accepted Accounting
Practice, give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Company.
By order of the Board
Beringea LLP
1 December 2011
Independent Auditors' Report to the Directors of ProVen Planned Exit VCT plc
under Section 839(5) of the Companies Act 2006
We have examined the initial accounts of ProVen Planned Exit VCT plc for the
period from 2 August 2010 to 31 October 2011 which comprise the Income
Statement, the Balance Sheet, the Cash Flow Statement and the related notes. The
initial accounts have been prepared under the accounting policies set out
therein.
Our report is made solely to the directors, as a body, of ProVen Planned Exit
VCT plc, in accordance with Section 839(5) of the Companies Act 2006. Our work
has been undertaken so that we might state to the directors those matters we are
required to state to them in our audit report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the directors as a body, for our work, for our report, or for
the opinions we have formed.
Respective responsibilities of directors and auditor
As described in the directors' responsibilities statement, the directors are
responsible for the preparation of the initial accounts in accordance with
applicable law and United Kingdom Accounting Standards (United Kingdom Generally
Accepted Accounting Practice).
Our responsibility is to report to you our opinion as to whether the initial
accounts have been properly prepared within the meaning of section 839(4) of the
Companies Act 2006.
Opinion
In our opinion the initial accounts for the period from 2 August 2010 to 31
October 2011 have been properly prepared within the meaning of section 839(4) of
the Companies Act 2006.
Tracey James (Senior Statutory Auditor)
for and on behalf of Grant Thornton UK LLP
OXFORD
1 December 2011
Income Statement
for the period from 2 August 2010 to 31 October 2011
Period ended 31 October
2011
Revenue Capital Total
Note GBP'000 GBP'000 GBP'000
=-------------------------------------------------------------
Income 2 2 - 2
=-------------------------------------------------------------
Investment management 3 (10) (32) (42)
fees
=-------------------------------------------------------------
Other expenses 4 (75) (9) (84)
=-------------------------------------------------------------
Return on ordinary activities (83) (41) (124)
before tax
=-------------------------------------------------------------
Tax on ordinary 6 - - -
activities
=-------------------------------------------------------------
Return attributable to equity
shareholders (83) (41) (124)
=-------------------------------------------------------------
Basic and diluted return per
share:
Ordinary Share 7 (1.9p) (0.9p) (2.8p)
=-------------------------------------------------------------
'A' Share 7 - - -
=-------------------------------------------------------------
All revenue and capital items in the above statement derive from continuing
operations. The total column within the Income Statement represents the profit
and loss account of the Company.
A Statement of Total Recognised Gains and Losses has not been prepared as all
gains and losses are recognised in the Income Statement noted above.
Reconciliation of Movements in Shareholders' Funds
Period ended 31 October 2011
Note GBP'000
=------------------------------------------------------------------------
Opening Shareholders' funds -
=------------------------------------------------------------------------
Proceeds from share issues 11/12 4,714
=------------------------------------------------------------------------
Share issue costs 12 (157)
=------------------------------------------------------------------------
Total recognised gains for the period (124)
=------------------------------------------------------------------------
Closing Shareholders' funds 4,433
=------------------------------------------------------------------------
Balance Sheet
as at 31 October 2011
2011
Note GBP'000
=-----------------------------------------------------------------------
Current assets
Debtors 9 7
=-----------------------------------------------------------------------
Current investments 500
=-----------------------------------------------------------------------
Cash at bank and in hand 15 4,017
=-----------------------------------------------------------------------
4,524
=-----------------------------------------------------------------------
Creditors: amounts falling due within one year 10 (91)
=-----------------------------------------------------------------------
Net current assets 4,433
=-----------------------------------------------------------------------
Net assets 4,433
=-----------------------------------------------------------------------
Capital and reserves
Called up Ordinary Share capital 11 5
=-----------------------------------------------------------------------
Called up 'A' Share capital 11 7
=-----------------------------------------------------------------------
Share premium account 12 -
=-----------------------------------------------------------------------
Special reserve 12 4,545
=-----------------------------------------------------------------------
Capital reserve - realised 12 (41)
=-----------------------------------------------------------------------
Revenue reserve 12 (83)
=-----------------------------------------------------------------------
Total equity shareholders' funds 4,433
=-----------------------------------------------------------------------
Basic and diluted net asset value per share
Ordinary Share 91.9p
=-----------------------------------------------------------------------
'A' Share 0.1p
=-----------------------------------------------------------------------
These financial statements were approved by the Board of Directors on 1 December
2011 and were signed on its behalf by
Peter Hewitt
Chairman
Company number: 7333086
Cash Flow Statement
for the period from 2 August 2010 to 31 October 2011
Period ended 31 October 2011
Note GBP'000
=-----------------------------------------------------------------------------
Net cash inflow from operating activities 14 (40)
=-----------------------------------------------------------------------------
Capital expenditure
Purchase of investments (500)
=-----------------------------------------------------------------------------
Net cash outflow from capital expenditure (500)
=-----------------------------------------------------------------------------
Net cash outflow before financing (540)
=-----------------------------------------------------------------------------
Financing
Proceeds from Ordinary Share issue 4,707
=-----------------------------------------------------------------------------
Proceeds from 'A' Share issue 7
=-----------------------------------------------------------------------------
Proceeds from Preference Share issue 50
=-----------------------------------------------------------------------------
Redemption of Preference Shares (50)
=-----------------------------------------------------------------------------
Share issue costs (157)
=-----------------------------------------------------------------------------
Net cash inflow from financing 4,557
=-----------------------------------------------------------------------------
Increase in cash 15 4,017
=-----------------------------------------------------------------------------
Notes to the Accounts
for the period ended 31 October 2011
1. Accounting policies
Basis of accounting
The Company has prepared its financial statements 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")
The financial statements are prepared under the historical cost convention as
modified by the revaluation of certain financial instruments.
Presentation of Income Statement
In accordance with the SORP, supplementary information which analyses the Income
Statement between items of a revenue and capital nature has been presented
alongside the Income Statement. The net revenue is the measure the Directors
believe appropriate in assessing the Company's compliance with certain
requirements set out in Part 6 of the Income Tax Act 2007.
Current assets investments
Current asset investments, which comprise investments in liquidity funds with
AAA rating, are held at fair value through profit and loss and are marked-to-
market. These assets are purchased and redeemed under a contract and the assets
are recognised and derecognised on the trade date. These assets are initially
measured at cost and subsequently valued at fair value, being the closing price
of the fund as issued by the provider.
Income
Dividend income from investments is recognised when the shareholder's right to
receive payment has been established, normally the ex dividend date.
Interest income is accrued on a time apportioned basis, by reference to the
principal outstanding and at the effective interest rate applicable and only
where there is reasonable certainty of collection.
Expenses
All expenses are accounted for on an accruals basis. In respect of the analysis
between revenue and capital items presented within the Income Statement, all
expenses have been presented as revenue items except as follows:
· Expenses which are incidental to the disposal of an investment are
deducted from the disposal proceeds of the investment.
· Expenses are split and presented partly as capital items where a
connection with the maintenance or enhancement of the value of the investments
held can be demonstrated.
The Company has adopted a policy of charging 25% of the investment management
fees to the revenue account and 75% to the capital account to reflect the
Board's estimated split of investment returns which will be achieved by the
Company over the long term.
Taxation
The tax effects on different items in the Income Statement are allocated between
capital and revenue on the same basis as the particular item to which they
relate, using the Company's effective rate of tax for the accounting period.
Due to the Company's status as a Venture Capital Trust and the continued
intention to meet the conditions required to comply with Part 6 of the Income
Tax Act 2007, no provision for taxation is required in respect of any realised
or unrealised appreciation of the Company's investments which arises.
Deferred taxation is provided in full on timing differences that result in an
obligation at the balance sheet date to pay more tax, or a right to pay less tax
at a future date, as rates expected to apply when they crystallise based on
current tax rates and law. Timing differences arise from the inclusion of items
of income and expenditure in taxation computations in periods different from
those in which they are included in the accounts.
Cash
Cash, for the purposes of the cash flow statement, comprises cash in hand and
deposits repayable on demand, less overdrafts payable on demand.
Loans and receivables
The Company's loans and receivables are initially recognised at fair value and
subsequently measured at amortised cost using the effective interest method.
Liabilities
The Company's financial liabilities are initially recognised at fair value and
subsequently measured at amortised cost using the effective interest method.
Issue costs
Issue costs in relation to share issues have been deducted from the share
premium account.
2. Income
2011
GBP'000
=-----------------------
Other income
Bank interest 2
=-----------------------
3. Investment management fees
2011
GBP'000
=------------------------------------
Investment management fees 42
=------------------------------------
4. Other expenses
2011
GBP'000
=------------------------------------------
Trail commission 8
=------------------------------------------
Directors' remuneration 24
=------------------------------------------
Auditors' remuneration for audit 5
=------------------------------------------
Other 47
=------------------------------------------
84
=------------------------------------------
The annual running costs of the Company for the period are subject to a cap of
3.5% of net assets of the Company plus cumulative distributions.
5. Directors' remuneration
The Company had no employees (other than Directors) during the period.
Directors' remuneration is disclosed in note 4 above. No other emoluments or
pension contributions were paid by the Company to, or on behalf of any
Directors.
6. Tax on ordinary activities
2011
GBP'000
------------------------------------
(a) Tax charge for the period
UK corporation tax at 20% -
------------------------------------
Charge for the period -
------------------------------------
(b) Factors affecting tax charge for the period
Return on ordinary activities before taxation (124)
---------------------------------------------------------------------------
Tax charge calculated on return on ordinary activities before
taxation at the applicable rate of 20% (25)
---------------------------------------------------------------------------
Effects of:
---------------------------------------------------------------------------
Expenses disallowed for tax purposes -
---------------------------------------------------------------------------
Losses available to carry forward 25
---------------------------------------------------------------------------
-
---------------------------------------------------------------------------
7. Return per share
Ordinary Shares 'A' Shares
=------------------------------------------------------------------------------
Return per share based on:
Net revenue after taxation for the financial (83) -
period ( GBP'000)
=------------------------------------------------------------------------------
Weighted average number of shares in issue 4,441,016 4,949,361
=------------------------------------------------------------------------------
Capital return per share based on:
Net capital gain for the financial period ( GBP'000) (41) -
=------------------------------------------------------------------------------
Weighted average number of shares in issue 4,441,016 4,949,361
=------------------------------------------------------------------------------
As the Company has not issued any convertible securities or share options, there
is no dilutive effect on the return per Ordinary or 'A' Share. The return per
share disclosed therefore represents both basic and diluted return per Ordinary
and 'A' Share.
8. Fixed assets - investments
No investments were made in the period.
9. Debtors
2011
GBP'000
=----------------------------------------
Prepayments and accrued income 7
=----------------------------------------
10. Creditors: amounts falling due within one year
2011
GBP'000
=--------------------------------------
Trade creditors 7
=--------------------------------------
PAYE 3
=--------------------------------------
Accruals and deferred income 81
=--------------------------------------
91
=--------------------------------------
11. Called up share capital
2011
GBP'000
=------------------------------------------------
Allotted, called up and fully-paid:
4,818,237 Ordinary Shares of 0.1p each 5
=------------------------------------------------
7,227,352 'A' Shares of 0.1p each 7
=------------------------------------------------
12
=------------------------------------------------
Upon incorporation 2 Ordinary Shares were issued to the subscribers to the
Memorandum of Association. On 19 October 2010, 50,000 Redeemable Preference
Shares were issued to Beringea LLP, one-quarter paid up.
Between 28 March 2011 and 16 September 2011, 4,818,235 Ordinary Shares were
issued at 99.9p per share and 7,227,352 'A' Shares were issued at 0.1p per share
pursuant to the offers for subscription by way of a prospectus. The aggregate
consideration for the shares was GBP4,714,000 which excludes the issue costs of
GBP157,000. 2,409,117 of the 'A' Shares were issued to the Investment Manager at
0.1p per share.
Dividends and other distributions or a return of capital (otherwise than on a
market purchase by the Company of any of its shares) shall be applied as
follows:
· payments will be made as to 99.9% to Ordinary Shareholders and 0.1% to
'A' Shareholders, pro rata to their nominal capital, until and unless the
following conditions are met (i) the payment by the Company of a dividend of at
least 6p per Ordinary Share per annum in respect of each of the financial years
starting on 1 February 2011 to 1 February 2015 and (ii) the payment by way of
dividends (including the dividends paid in (i)) and tender offers of at least
100p per Ordinary Share
· after these conditions have been met, the balance of such amounts
shall be applied as 40% to Ordinary Shareholders and 60% to 'A' Shareholders,
until total payments to investors reach 124p per GBP1 invested, after which
· payments will be made as 99.9% to Ordinary Shares and 0.1% to 'A'
Shares.
The Ordinary Shareholders and 'A' Shareholders are entitled to receive notice
of, to attend, speak and vote at any general meeting. Every Ordinary Shareholder
present in person or by proxy has one thousand votes for each Ordinary Share
held. Every 'A' Shareholder present in person or proxy has one vote for each 'A'
Share held.
On a winding up, the capital and assets of the Company shall be divided amongst
the Ordinary Shareholders and the 'A' Shareholders in accordance with the policy
on dividends and other distributions described above.
On 25 October 2011, the 50,000 Redeemable Preference Shares were paid up in full
and then subsequently redeemed out of the proceeds of the offers.
12. Reserves
Share
premium Special Capital Revenue
account reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=------------------------------------------------------------------------------
At 2 August 2010 - - - - -
=------------------------------------------------------------------------------
Issue of new 4,702 - - - 4,702
shares
=------------------------------------------------------------------------------
Share issue costs (157) - - - (157)
=------------------------------------------------------------------------------
Transfer between
reserves (4,545) 4,545 - - -
=------------------------------------------------------------------------------
Expenses - - (41) - (41)
capitalised
=------------------------------------------------------------------------------
Retained net - - - (83) (83)
revenue
=------------------------------------------------------------------------------
At 31 October 2011 - 4,545 (41) (83) 4,421
=-----------------------------------------------------------------------------
The special reserve was created on 24 October 2011 by the cancellation of the
share premium account following court approval. The special reserve is available
to the Company to enable the purchase of its own shares in the market without
affecting its ability to pay capital distributions and for other corporate
purposes. The special reserve and revenue reserve are both distributable
reserves.
13. Net asset value per share
2011
Net asset value
Shares in issue Pence per share GBP'000
=-----------------------------------------------------------------
Ordinary Shares 4,818,235 91.9 4,426
=-----------------------------------------------------------------
'A' Shares 7,227,352 0.1 7
=-----------------------------------------------------------------
Net assets 4,433
=-----------------------------------------------------------------
The Directors allocate the assets and liabilities of the Company between the
Ordinary Shares and 'A' Shares such that each share class has sufficient net
assets to represent its dividend and return of capital rights as described in
note 11.
As the Company has not issued any convertible securities or share options, there
is no dilutive effect on net asset per share. The net asset value per share
disclosed therefore represents both basic and diluted return per share.
14. Reconciliation of return on ordinary activities before taxation to
net cash flow from operating activitie
2011
GBP'000
=---------------------------------------------------------------------------
Loss on ordinary activities before taxation (124)
=---------------------------------------------------------------------------
Increase in debtors (7)
=---------------------------------------------------------------------------
Increase in creditors 91
=---------------------------------------------------------------------------
Net cash outflow from operating activities and returns on investments (40)
=---------------------------------------------------------------------------
15. Analysis of changes in cash during the period
2011
GBP'000
=-----------------------------
Beginning of period -
=-----------------------------
Net cash inflow 4,017
=-----------------------------
End of period 4,017
=-----------------------------
16. Financial instruments and derivatives
The Company's financial instruments comprise liquidity funds, cash deposits and
short term debtors and creditors arising from its operations. The main purpose
of these financial instruments is to generate cash flow, revenue and capital
appreciation for the Company's operations. The Company has no gearing or other
financial liabilities apart from short term creditors and does not use any
derivatives.
Interest rate profile of financial assets and liabilities
The Company receives interest on its cash deposits at a rate agreed with its
bankers and on liquidity funds at rates based on the underlying investments. A
summary of the interest rate profile of the Company's investments is shown
below.
There are three categories in respect of interest which are attributable to the
financial instruments held by the Company as follows:
· "Fixed rate" assets represent investments held with predetermined
yield targets and comprise cash at bank.
· "Floating rate" assets predominantly bear interest at rates linked to
Bank of England base rate or LIBOR and comprise cash at bank and liquidity fund
investments.
· "No interest rate" assets do not attract interest and comprise
receivables (excluding cash at bank) and other financial liabilities.
Average interest rate Average period to maturity 2011
GBP'000
=-----------------------------------------------------------------------
Fixed rate 0.3% n/a 1,000
=-----------------------------------------------------------------------
Floating rate 0.1% n/a 3,517
=-----------------------------------------------------------------------
No interest rate (84)
=-----------------------------------------------------------------------
4,433
=-----------------------------------------------------------------------
The interest rate represents the average interest rate over the period.
Subsequent to the year end GBP1 million was placed into an instant access deposit
account at an interest rate of 1.25% per annum.
Financial liabilities
The Company had no financial liabilities or guarantees other than the creditors
disclosed within the Balance Sheet.
Currency exposure
As at 31 October 2011, the Company had no foreign currency exposures.
Borrowing facilities
The Company had no committed borrowing facilities as at 31 October 2011.
17. Principal financial risks and management objectives
The Company's investment activities expose the Company to a number of risks
associated with financial instruments and the sectors in which the Company
invests. The principal financial risks arising from the Company's operations
are:
· Market risks;
· Credit risk; and
· Liquidity risk.
The Board regularly reviews these risks and the policies in place for managing
them. There have been no significant changes to the nature of the risks that the
Company is exposed to over the period and there have also been no significant
changes to the policies for managing those risks during the period.
The risk management policies used by the Company in respect of the principal
financial risks and a review of the financial instruments held at the period end
are provided below:
Market risks
As a VCT, the Company is exposed to market risks in the form of potential losses
and gains that may arise on the investments it holds. As at 31 October 2011, the
Company's only investment was in liquidity funds, the Board believes that the
Company's exposure to market risk is limited to an acceptable level.
Credit risk
Credit risk is the risk that a counterparty to a financial instrument is unable
to discharge a commitment made under that instrument. The Company is exposed to
credit risk through its holdings of investments in liquidity funds, cash
deposits and debtors.
The Company's exposure to credit risk is summarised as follows:
2011
GBP'000
=---------------------------------------
=---------------------------------------
Investment in liquidity funds 500
=---------------------------------------
Cash and cash equivalents 4,017
=---------------------------------------
Other receivables 7
=---------------------------------------
4,524
=---------------------------------------
Credit risk in respect of the investment in liquidity funds is minimised by
investing in AAA-rated funds.
Cash is mainly held by HSBC Bank plc which is an AA-rated financial institution.
The Directors consider that the risk profile associated with cash deposits is
low.
Other receivables are predominantly covered within the investment management
procedures.
Liquidity risk
Liquidity risk is the risk that the Company encounters difficulties in meeting
obligations associated with its financial liabilities. As the Company only ever
has a low level of creditors and no borrowings, the Board believes that the
Company's exposure to liquidity risk is minimal.
18. Management of capital
The Company's objective when managing capital is to safeguard the Company's
ability to continue as a going concern in order to continue to provide returns
for Shareholders.
The requirement of the Venture Capital Trust Regulations and the fact that the
Company has a policy of not having any borrowings mean that there is limited
scope to manage the Company's capital structure. However, to the extent it is
possible, the Company can maintain or adjust its capital structure by adjusting
the amount of dividends paid to Shareholders, purchasing its own shares or
issuing new shares.
As the Company has a low level of liabilities, the Board considers the Company's
net assets to be its capital. The Company does not have any externally imposed
capital requirements.
19. Contingencies, guarantees and financial commitments
At 31 October 2011, the Company had no contingencies, guarantees or financial
commitments.
20. Controlling party and related party transactions
In the opinion of the directors there is no immediate or ultimate controlling
party.
Beringea LLP, of which Malcolm Moss is a partner, acted as promoter to the
offers for subscription launched in November 2010. Beringea LLP received 5.5% of
the gross proceeds of the offers, out of which it paid the costs of the offers
including initial commissions. No issue costs were outstanding at the period
end. Beringea LLP was also the investment manager and administrator during the
period. The fees relating to these services amounted to GBP42,000, all of which
was outstanding at the period end.
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: ProVen Planned Exit VCT plc via Thomson Reuters ONE
[HUG#1568232]
Plectrum Petroleum (LSE:PPE)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Plectrum Petroleum (LSE:PPE)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
