Preliminary Announcement for
Oxford Technology 3 Venture Capital Trust PLC
For the year ended 29 February 2012
Statement on behalf of the Board
OT3 has a portfolio of 24 investees and several of these are making good or excellent progress and have the potential to become stars and deliver significant returns to OT3 shareholders. Cumulative Dividends to date are 10p.
The net asset value per share was 71p on 29 February 2012, compared to 73p per share on 28 February 2011. The earnings per share in the year to 29 February 2012 were (1.9)p compared to (6.6)p in the year to February 2011. These figures result from the changes to the valuations of the investments during the year with some investments being valued upwards and some being downvalued based on their performance.
Investment Policy & Fundraising
The Company has built a balanced portfolio of investments with the following characteristics:
· unlisted, UK based, science, technology and engineering businesses
· investments typically in the range of £100,000 to £500,000
· generally located within approximately 60 miles of Oxford
Results for the year
Interest on bank deposits and investee loans produced gross income of £2,000 (2011: £2,000) in the year. The loss for the year was £131,000 (2011: loss of £423,000) and earnings per share for the year showed a loss of 1.9p (2011: loss of 6.6p). The graph on page 14 shows the historical Net Current Assets and other investments per share. Together, these two figures make up the total Net Asset Value per share. The graph also shows cumulative dividends paid to date.
AGM
Shareholders should note that the AGM for Oxford Technology 3 VCT (OT3) will be held on Wednesday 4th July 2012, at the Magdalen Centre, Oxford Science Park, starting at 12.00 noon and will include presentations by some of the companies in which the Oxford Technology VCTs have invested. A formal Notice of AGM has been included at the back of these Accounts together with a Form of Proxy for those not attending.
Richard Vessey
Chairman
28 May 2012
Profit and loss account
for the year ended 29 February 2012
Year ended 29 Year ended 28
February 2012 February 2011
£'000 £'000
Gain/(Loss) on disposal of investments
held at fair value 18 (32)
Unrealised (loss) on fair value
of investments (19) (245)
Other income 2 2
Investment management fees (93) (109)
Other expenses (39) (39)
(Loss)/profit on ordinary activities before tax (131) (423)
Taxation on (loss)/profit on ordinary activities - -
(Loss)/profit on ordinary activities after tax (131) (423)
Earnings per share (basic and diluted) (1.9)p (6.6)p
Historic cost profits and losses note
| 2012 | 2011 | ||
| £000 | £000 | ||
| (Loss) for the year | (131) | (423) | |
| Unrealised loss on fair value of investments | 19 | 245 | |
| Loss/(profit) on disposal of investments held at fair value | (18) | 32 | |
| Profit/(loss) on disposal of investments held at historical value | (1,051) | (368) | |
| Historical cost (loss)/profit before tax | (1,181) | (514) | |
| Historical cost (loss)/profit after tax | (1,181) | (514) | |
The accompanying accounting policies and notes form an integral part of these financial statements
Balance sheet at 29 February 2012
29 February 2012 28 February 2011
£000 £000 £000 £000
Fixed assets
Investments at fair value 4,242 4,009
Current assets
Other debtors & prepayments 10 2
Cash at bank 610 700
____ ____
620 702
Creditors: amounts falling
due within one year (56) (32)
Net current assets 564 670
Net assets 4,806 4,679
Capital and reserves
Called up share capital 679 644
Share premium 718 495
Profit and loss account 1,755 2,928
Unrealised capital reserve 1,654 612
Shareholders' funds 4,806 4,679
Net asset value per share 71p 73p
These financial statements were approved by the directors on 28 May 2012.
JLA Cary
Director
28 May 2012
Cash flow statement
for the period ended 29 February 2012
| 2012 | 2011 | ||
| Note | £000 | £000 | |
| Net cash (outflow) from operating activities | 13 | (106) | (116) |
| Capital expenditure and financial investment | |||
| Purchase of investments | (242) | (166) | |
| Disposal of investments | - | 197 | |
| Net cash (outflow) from capital expenditure | |||
| and financial investment | (242) | 31 | |
| Net cash outflow before financing | (348) | (85) | |
| Financing | |||
| Issue of Shares | 272 | 327 | |
| Expenses paid in connection with share issue | (14) | (16) | |
| Net cash inflow from financing | 258 | 311 | |
| Dividends Paid | - | (644) | |
| (Decrease) in cash | (90) | (418) | |
The accompanying accounting policies and notes form an integral part of these financial statements.
Notes:
1. Basis of preparation
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments. The financial statements have been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice 'Financial statements of investment trust companies' issued in 2009.
2. Earnings per Ordinary Share
The calculation of earnings per share for the period is based on the profit attributable to shareholders divided by the weighted average number of shares in issue during the period.
3. Valuation of Investments
Quoted investments are stated at the bid price. Unquoted investments are stated at fair value, where fair value is estimated after following the guidelines laid down by the International Private Equity and Venture Capital Guidelines. The Directors' policy is to initially state investments at cost and then to review the valuation every three months. The Directors' may then apply an appropriate methodology which, as far as possible, draws on external, objective market data such as where fair value is indicated by:
· a material arms length transaction by a third party in the shares of the company, with discounting for more junior asset classes, and reviewed for impairment; or
· a suitable revenue or earnings multiple where the company is well established and generating maintainable profits. The multiple will be based on comparable listed companies but may be discounted to reflect a lack of marketability; or
· the net assets of the business.
Where such objective data is not available the Directors' may choose to maintain the value of the company as previously stated or to discount this where indicated by underperformance against plan.
The directors consider that this basis of valuation of unquoted investments is consistent with the International Private Equity and Venture Capital Guidelines.
4. General
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 434(3) of the Companies Act 2006. The balance sheet at 29 February 2012 and the profit and loss account, cash flow statement and associated notes for the year then ended have been extracted from the company's 2012 statutory financial statements.
Those financial statements have been delivered to the Registrar of Companies, contain an auditors' opinion that is unqualified and do not include any statement under section 498(2) or (3) of the Companies Act 2006.