Noble Income & Growth VCT PLC
04 July 2007
Noble Income & Growth VCT plc
4 July 2007
Shareholder Information
Year ended 30 Sixteen months
April 2007 ended 30 April
------------- 2006
----------
Ordinary Shares
Total (loss)/return per share (6.31)p 10.02p
Net asset value per share 89.83p 96.14p
Net assets £4,116,000 £4,405,043
Share price (mid-market price) 57.0p 73.0p
Chairman's Statement
I have pleasure in presenting the Annual Report and Accounts for Noble Income &
Growth VCT plc for the year ended 30 April 2007. I regret that I am unable to
report an uplift in net asset value ('NAV') over the full twelve month period;
however, I am glad to report a significant upturn in performance since I
presented the interim accounts for the six months ended 31 October 2006.
During the year under review, there was a fall in NAV of £289,000 or 6.6%,
although there was an increase in NAV of £668,000 or 17.82% in the second half
of the financial year. The full year decline is broadly in line with the
movement in the AIM All Share Index which fell 6.0% although the second half
performance falls short of the recovery in the AIM All Share Index which
increased 17.9% in the same period.
Summary of Financial Highlights for the year ended 30 April 2007
• NAV per Ordinary Share was 89.83p (30 April 2006: 96.14p)
• The total fund NAV was £4.1m (30 April 2006: £4.4m)
• The company made a pre-tax loss of £289,000 (16 months to 30 April 2006:
pre-tax profit of £367,000)
• 21 new investments and 7 follow on investments in the period totalling £1.6m
• The VCT is now 74% invested with £1,072,000 cash available for investment
• 7 partial exits and 9 full exits were achieved realising gains of £583,000
on a cost of £1,264,000; a gain of 46.12%
Review of Performance
The NAV per Ordinary Share at 30 April 2007 was 89.83p, a decrease of 6.6% since
30 April 2006. During the period under review there were significant
fluctuations in worldwide equity markets. The reduction in NAV experienced by
your Company can mainly be attributed to these movements. In particular the AIM
All Share Index, where the bulk of the portfolio companies are listed, declined
6.0% over the same period. Realised gains during the year totalled £583,000 on a
cost of £1,264,000; a gain of 46.12% (16 months to 30 April 2006: £334,000 on a
cost of £597,000; a gain of 55.95%). Losses recognised during the period
reported in the income statement were £95,000 (2006: profit of £235,000). Income
generated from investments was £51,000 (30 April 2006: £34,000). Overall, a loss
before tax was realised totalling £289,000 (sixteen months ended 30 April 2006:
£367,000 profit before tax).
VCT Legislation
As many shareholders will be aware, the Chancellor of the Exchequer made a
number of changes to the rules for VCTs in his 2007 Budget. Whilst we welcome
the granting of the grace period of six months on cash realisations on disposals
of investments that have been part of qualifying holdings to maintain the 70%
threshold, we have concerns over the new rules for investing money raised in
future tax years. Following the introduction of the new rules, money raised in
future tax years will only be able to be invested in companies with less than 50
employees and not more than £2m can be raised in the year ending on the date of
investment. Such changes were they to apply to any substantial part of the
Company's investment portfolio would almost certainly adversely impact on the
Company's investment policy. Shareholders may take comfort from knowing that
these rules have no effect on the money already raised by Noble Income & Growth
VCT plc, but they do make it difficult for the Company to raise significant
amounts of new funds.
Noble Fund Managers
The Directors are appreciative of the work undertaken by Noble Fund Managers
('NFM') during the year and recognise the advantages of having an investment
adviser in place who manages multiple VCTs and continues to report strong deal
flow. Importantly, NFM has recently announced further strengthening of its
quoted fund management expertise following the recruitment of Paul Jourdan, one
of the UK's leading AIM fund managers.
Strategic Outlook
Recognising the sub-scale size of the Company and the fact that the recent
legislation changes to the VCT rules makes it less attractive for the Company to
raise further funds through a fundraising exercise, the Board of Directors
continues to conduct a review of options for Noble Income & Growth VCT plc and
is hopeful of a speedy resolution to this issue. This may result in a corporate
event and a number of options are currently being considered by your Board. Any
such action would, of course, be subject to a vote by shareholders. Crucially,
we have a commitment from NFM that they will continue to act as your investment
manager. This will provide the stability required for us to assess our corporate
options going forward.
A E B Wiegman
Chairman
4 July 2007
Income Statement
for the year ended 30 April 2007
Year ended 30 April 2007 Sixteen months ended 30
April 2006
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
------- ------- ------- ------- ------- -------
(Loss)/gain on disposal
of investments - (95) (95) - 235 235
(Decrease)/increase in
fair value of
investments held - (4) (4) - 318 318
Income 51 - 51 34 - 34
Investment
management fee (17) (53) (70) - (40) (40)
Other expenses (171) - (171) (180) - (180)
------- ------- ------- ------- ------- -------
(Loss)/return on
ordinary activities
before taxation (137) (152) (289) (146) 513 367
Tax on ordinary
activities - - - - - -
------- ------- ------- ------- ------- -------
(Loss)/return on
ordinary activities
after taxation (137) (152) (289) (146) 513 367
------- ------- ------- ------- ------- -------
Return per
Ordinary Share (2.99)p (3.32)p (6.31)p (4.72)p 14.74p 10.02p
The total column is the profit and loss account of the company.
All revenue and capital items derive from continuing operations.
No operations were acquired or discontinued during the year.
Dividends paid/proposed
No dividends were paid or proposed during the year ended 30 April 2007 (2006:
£nil)
Reconciliation of movements in shareholders' funds
for the year ended 30 April 2007
Year ended 30 Sixteen months
April 2007 ended 30 April
2006
£'000 £'000
--------- ---------
Opening shareholders' funds 4,405 3,069
(Loss)/return for the year (289) 367
Increase in share capital
in issue - 10
Increase in share premium - 959
--------- ---------
Closing shareholders' funds 4,116 4,405
--------- ---------
Statement of Total Recognised Gains and Losses
Year ended 30 Sixteen months
April 2007 ended 30 April
2006
£'000 £'000
-------- ---------
(Loss)/return for the year (289) 367
Less prior year adjustment for
change from mid to bid price basis - (12)
-------- ---------
Total gains and losses recognised
since last annual report (289) 355
-------- ---------
Balance Sheet
as at 30 April 2007
As at As at
30 April 30 April
2007 2006
£'000 £'000
-------- --------
Fixed assets Investments 3,079 3,466
-------- --------
Current assets
Debtors 41 133
Cash at bank 59 942
Investments - liquidity fund 1,013 -
-------- --------
1,113 1,075
Current liabilities
Creditors: amounts falling due within one year (76) (136)
-------- --------
Net current assets 1,037 939
-------- --------
Total assets less current liabilities 4,116 4,405
-------- --------
Capital and reserves
Called up share capital 46 46
Share premium account - 1,008
Special distributable reserve 4,236 3,228
Unrealised capital reserve (464) 218
Realised capital reserve 596 66
Revenue reserves (298) (161)
-------- --------
Equity shareholders' funds 4,116 4,405
-------- --------
Net asset value per Ordinary Share 89.83p 96.14p
Cash Flow Statement
for the year ended 30 April 2007
Year ended 30 Sixteen months
April 2007 ended 30 April
2006
£'000 £'000
------- -------
Operating activities
Investment income received 35 25
Deposit interest received 7 10
Investment management fees (102) -
Other operating costs (200) (145)
------- -------
Net cash outflow from operating
activities (260) (110)
------- -------
Taxation (14) -
Financial investment
Purchase of investments (1,559) (1,539)
Disposal of investments 1,963 1,275
------- -------
Net cash inflow/(outflow) from
capital expenditure and financial
investment 404 (264)
------- -------
Net cash inflow/(outflow) before
financing 130 (374)
Financing
Issue of share - 1,020
Expenses of the issue of shares - (15)
------- -------
Net cash inflow from financing - 1,005
------- -------
Increase in cash and cash equivalents 130 631
------- -------
Reconciliation of net cash flow to movement in net cash and cash equivalents
Increase in cash and cash equivalents during the year 130 631
Net cash at 1 May 2006 942 311
-------- -------
Net cash and cash equivalents at 30 April 2007 1,072 942
-------- -------
Notes
1. The financial information included in this announcement as regards the
company does not constitute statutory accounts for the year ended 30 April
2007 within the meaning of Section 240 of the Companies Act 1985. Statutory
accounts of the company for the year ended 30 April 2007, upon which the
auditors of the company have given an unqualified opinion, will be
delivered to the Registrar of Companies after the Annual General Meeting.
The accounting policies are as published in the annual report and accounts
for the period ended 30 April 2006 and have remain unchanged during the
year.
2. Copies of the Annual Report for the year ended 30 April 2007 will be sent
to shareholders and the UK Listing Authority.
3. The revenue return per share is based on the loss on ordinary activities
after taxation of £137,000 (2006: loss of £146,000) and on 4,581,852 (2006:
3,101,179) shares, being the weighted average number of shares in issue
during the period.
4. The capital return per share is based on the loss on ordinary activities
after taxation of £152,000 (2006: profit of £513,000) and on 4,581,852
(2006: 3,101,179) shares, being the weighted average number of shares in
issue during the period.
5. Reconciliation of net return before taxation to net cash outflow from
operating activities
Year ended 30 Sixteen months
April 2007 ended 30 April
2006
£'000 £'000
------- ----------
Net (loss)/return before taxation (288) 367
Net losses/(gains) and change in
fair value of investments 99 (553)
(Increase)/decrease in debtors (9) 12
(Decrease)/increase in creditors (62) 64
------- ----------
Net cash outflow from operating
activities (260) (110)
------- ----------
6. The financial information set out in the announcement was approved by the
Board of Directors on 4 July 2007
This information is provided by RNS
The company news service from the London Stock Exchange