Preliminary Announcement for
Oxford Technology 4 Venture Capital Trust PLC
For the year ended 29 February 2012
Statement on behalf of the Board
The net assets per share as at 29 February 2012 were 90p compared to 76p at 28 February 2011. The earnings per share for the year to 29 February 2012 were 17p compared to a loss of (2.6)p for the year to 28 February 2011. These figures result from the changes to the valuations of the investments during the year as shown in the table on page 4.
Just before the year end, Meciria was sold. OT4 invested £100,000 in Meciria in 2006, when the company consisted of an engineer with an idea for a better rotary steerable drilling bit for the oil and gas industry. As the company developed OT4 invested more and by the time of the sale its investment had increased to just over £500,000. In 2008 Oxford Technology ECF became operational and this fund also invested in Meciria and had invested just over £1.5m by the time of the sale. OT4 received an initial payment of £2.24m for its shareholding in Meciria, and may receive additional payments as part of an earn-out over the next four years. On 15 March the Board of OT4 announced a dividend of 14p per share which was paid on 12 April.
Many other companies in the OT4 portfolio are making good progress and several continue to have the potential to deliver very good returns to shareholders. Further details are given on page 5.
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 £4,000 (2011: £43,000) in the year. The profit for the year was £1,986,000 (2011: loss of £284,000) and earnings per share for the year showed a profit of 17p (2011: loss of 2.6p). The graph on page 15 shows the historical Net Current Assets and other investments per share. Together, these two figures make up the total Net Asset Value per share.
AGM
Shareholders should note that the AGM for Oxford Technology 4 VCT (OT4) 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.
David Livesley - 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 on disposal of investments
held at fair value 2,297 81
Unrealised (loss) on fair value
of investments (106) (207)
Other income 4 43
Investment management fees (168) (168)
Other expenses (41) (33)
Profit/(loss) on ordinary activities before tax 1,986 (284)
Taxation on profit/(loss) on ordinary activities - -
Profit/(loss) on ordinary activities after tax 1,986 (284)
Earnings per share (basic and diluted) 17p (2.6)p
Historic cost profits and losses note
| 2012 | 2011 | ||
| £000 | £000 | ||
| Profit/(loss) for the year | 1,986 | (284) | |
| Unrealised loss on fair value of investments | 106 | 207 | |
| Profit on disposal of investments held at fair value | (2,297) | (81) | |
| Profit/(loss) on disposal of investments held at historical value | 1,669 | (1,555) | |
| Historical cost (loss)/profit before tax | 1,464 | (1,713) | |
| Historical cost (loss)/profit after tax | 1,464 | (1,713) | |
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 7,420 8,220
Current assets
Other debtors & prepaymen 2,592 46
Cash at bank 352 235
____ ____
2,944 281
Creditors: amounts falling
due within one year (15) (74)
Net current assets 2,929 207
Net assets 10,349 8,427
Capital and reserves
Called up share capital 1,152 1,110
Share premium 813 573
Profit and loss account 7,266 6,148
Unrealised capital reserve 1,118 596
Shareholders' funds 10,349 8,427
Net asset value per share 90p 76p
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
£000 £000
Net cash (outflow) from operating activities (211) (170)
Capital expenditure and financial investment
Purchase of investments (210) (230)
Disposal of investments 602 22
Net cash (outflow) from capital expenditure
and financial investment 392 (208)
Net cash outflow before financing 181 (378)
Financing
Issue of shares 297 357
Expenses paid in connection with share issue (15) (18)
Net cash inflow from financing 282 339
Dividends paid (346) -
Increase/(Decrease) in cash 117 (39)
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.