Source - GNW

Oxford Technology 4 Venture Capital Trust Plc

Unaudited Half-Yearly Report

For the period

1 March 2016 to 31 August 2016

Financial Headlines

  6 Months Ended
31 August 2016
Year Ended
29 February 2016

 
Net Assets at Period End

 
£7.66m £7.69m
Net Asset Value per Share

 
66.5p 66.8p
Cumulative Dividend per Share

 
37.0p 37.0p
Total NAV Return per Share

 
103.5p 103.8p
Share Price

 
47.0p 52.0p
Earnings per Share (0.3)p 20.6p

                                 

Company Number: 5038854
Registered Address: The Magdalen Centre, Oxford Science Park, Oxford OX4 4GA

Statement on behalf of the Board

I am pleased to present the unaudited results for the six month period ended 31 August 2016.

Results and dividends
The Company's net asset value (NAV) per share has reduced from 66.8p at 29 February 2016 by 0.3p to 66.5p at 31 August 2016. No dividend was declared or paid in the period, and further dividends are likely to require further investee company exits.

Portfolio review
The new VCT rules have not prevented us from investing £320k to support our existing portfolio companies. We invested £202k in Plasma Antennas to position them for a further funding round. £98k was invested in ImmBio at attractive terms at the end of their successful trials. Finally we invested £20k in Zuvasyntha to allow the company to reduce its cost base whilst pursuing strategic partnerships.

The Directors have reviewed the valuations of each investee company in the unquoted portfolio but have made only minor changes. Several companies in the portfolio have had minor valuation increases in the period to reflect their continued growth.  However this was more than offset by the fall in the Castleton Technologies share price from 78.5p on 29 February 2016 to 64.0p on 31 August 2016.

The Directors continue to take an active interest in the investee companies and look forward to continuing to work with OTM to maximise shareholder value and to secure profitable exits from these investee companies at the appropriate time and to enable further dividends to be paid.

Liquidity
At period end our Company had net current assets of £715k. This provides sufficient resource to match the expected short term support required for the portfolio.

VCT qualifying status
The Board has procedures in place to ensure that the Company continues to comply with the conditions laid down by HMRC for maintaining approval as a VCT.

Presentation of half-yearly report
In order to reduce the length of this report, we have omitted details of the Company's objectives and investment strategy, its Advisers and Registrars and how to buy and sell shares in the Company. These details are all included in the Annual Reports, which, together with previous half-yearly reports, are available for viewing on the Oxford Technology website.

Outlook
The last six months has seen a number of changes to qualification conditions for VCTs. However, as we are not looking to invest in new companies we do not believe that these changes will give rise to any issues for our Company. Likewise any uncertainties surrounding the departure from the EU are unlikely to affect us directly. The company continues to have a diversified portfolio with several promising companies capable of delivering very strong returns, and the board is focused on ensuring such realisations occur in a timely and appropriate fashion.

We were pleased to welcome a large number of shareholders to our AGM in July and I would like to take this opportunity to thank shareholders for their continued support.  One of our investees Plasma Antennas presented at the AGM, and their presentation is available on the Oxford Technology website.

On behalf of the Board

David Livesley 
Chairman
19 October 2016

Investment Portfolio as at 31 August 2016

CompanyDescriptionNet Cost of investment £'000Carrying value at 31/8/16
£'000
Change in value for the 6 month period £'000% Equity held
OT4
% Equity held
All OT
%
of fund investment value
Castleton Technology
(bid price 64.0p)
Mobile software for contractors 192 1,486 (325) 2.9 2.9 21.4
Glide Technologies Needle free injector 975 1,439 - 5.8 9.0 20.7

 
Select Technology Photocopier interfaces 237 960 19 18.4 58.5 13.8
Plasma Antennas

 
Directional antennas 650 687 260 26.1 45.1 9.9
Diamond Hard Surfaces Diamond coatings 640 551 166 49.9 49.9 7.9
Arecor

 
Protein stabilisation 291 535 89 6.2 7.3 7.7
ImmBio

 
Novel vaccines 673 448 98 8.3 13.9 6.4
Oxis Energy

 
Rechargeable batteries 305 183 33 0.3 0.5 2.6
Zuvasyntha

 
Microbial technology 333 110 20 23.1 23.1 1.6
Novacta

 
Bioengineering & antibiotics 347 63 - 2.4 2.4 0.9
Insense Wound healing 476 48 - 4.5 12.1 0.7

 
Abzena
(bid price 41.0p)
Protein based peptide drugs 33 39 (8) 0.1 0.3 0.6
Orthogem

 
Bone graft material 130 35 - 3.3 14.6 0.5
Historic Futures Traceability software

 
420 32 - 6.2 6.2 0.5
MirriAd Advertising Virtual product placement - 15 - 0.3 0.3 0.2
Metal Nanopowders Production of metal powders 51 10 - 16.7 36.7 0.2
Superhard Materials Production of hard materials 9 5 - 18.2 40.0 0.1
Total Investments

 
 6,1396,961352  100%
Other Net Assets

 
      701        
 

Net Assets

 
   

7,662
       

Responsibility Statement of the Directors in respect of the half-yearly report

We confirm that to the best of our knowledge:

  • the half-yearly financial statements have been prepared in accordance with the statement "Interim Financial Reporting" issued by the Financial Reporting Council;
  • the half-yearly report includes a fair review of the information required by the Financial Services Authority Disclosure and Transparency Rules, being:
  • an indication of the important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements.
     
  • a description of the principal risks and uncertainties for the remaining six months of the year.
     
  • a description of related party transactions that have taken place in the first six months of the current financial year that may have materially affected the financial position or performance of the Company during that period and any changes in the related party transactions described in the last annual report that could do so.

On behalf of the Board:

David Livesley
Chairman
19 October 2016

Income Statement

 Six months to 31 Aug 2016Six months to 31 Aug 2015Year to 29 February 2016
 RevenueCapitalTotalRevenueCapitalTotalRevenueCapitalTotal
  £'000£'000£'000£'000£'000£'000£'000£'000£'000
                   
Gain on disposal of fixed asset investments -22 - 1,328 1,328 - 1,049 1,049
                 
Gain/(loss) on valuation of fixed asset investments -3232 - 733 733 - 1,355 1,355
                 
Other income --- 3 - 3 94 - 94
                 
Investment management fees (10)(28)(38) (10) (28) (38) (19) (58) (77)
                 
Other expenses (27)-(27) (26) - (26) (55) - (55)
                 
Return on ordinary activities before tax(37)6(31) (33) 2,033 2,000 20 2,346 2,366
                 
Taxation on ordinary activities --- - - - - - -
                 
                
Return on ordinary activities after tax(37)6(31) (33) 2,033 2,000 20 2,346 2,366
                
Earnings per share - basic and diluted(0.3)p0.0p(0.3)p (0.3)p 17.7p 17.4p 0.2p 20.4p 20.6p
  • The 'Total' column of this statement is the profit and loss account of the Company; the supplementary Revenue return and Capital return columns have been prepared under guidance published by the Association of Investment Companies.
  • All revenue and capital items in the above statement derive from continuing operations.
  • The accompanying notes are an integral part of the half-yearly report.
  • The Company has only one class of business and derives its income from investments made in shares and securities and from bank and money market funds.

The Company has no recognised gains or losses other than the results for the period as set out above. Accordingly a Statement of Comprehensive Income is not required.

Balance Sheet

  As at 31 Aug 2016As at 31 Aug 2015As at 29 February 2016
 £'000£'000£'000£'000£'000£'000
            
Fixed asset investments *

 
 6,961   7,544   6,619
Current assets:          
Debtors 18  320   26  
Creditors:           
Amounts falling due within one year (32)  (41)   (36)
Cash at Bank 729  697   1,111
Net current assets  715   976   1,101
           
Creditors:
Amounts falling due in more than one year
 (14)   (41)   (27)
Net assets 7,662   8,479   7,693
            
Called up equity share capital  1,152   1,152   1,152
Share premium  813   813   813
Unrealised capital reserve  821   899   600
Profit and Loss account reserve  4,876   5,615   5,128
Total equity shareholders' funds 7,662   8,479   7,693
           
Net asset value per share 66.5p   73.6p   66.8p
 

* At fair value through profit and loss

 
          

Statement of Changes in Equity

 Share Capital
£'000
Share Premium £'000Unrealised Capital Reserve
£'000
Profit & Loss
  Reserve
£'000
Total
£'000
As at 1 March 20151,1528132555,4117,631
Revenue return on ordinary activities after tax - - - (33) (33)
Expenses charged to capital - - - (28) (28)
Current period gains on disposal - - - 1,328 1,328
Current period gains on fair value of investments - - 733 - 733
Prior years' unrealised gains now realised - - (89) 89 -
Dividends paid - - - (1,152) (1,152)
Balance as at 31 August 20151,1528138995,6158,479
           
As at 1 March 20151,1528132555,4117,631
Revenue return on ordinary activities after tax - - - 20 20
Expenses charged to capital - - - (58) (58)
Current period gains on disposal - - - 1,049 1,049
Current period gains on fair value of investments - - 1,355 - 1,355
Prior years' unrealised gains now realised - - (654) 654 -
Movement in reserves - - (356) 356 -
Dividends paid - - - (2,304) (2,304)
Balance as at 29 February 20161,1528136005,1287,693
           
As at 1 March 20161,1528136005,1287,693
Revenue return on ordinary activities after tax - - - (37) (37)
Expenses charged to capital - - - (28) (28)
Current period gains on disposal - - - 2 2
Current period gains on fair value of investments - - 32 - 32
Prior years' unrealised losses now realised - - 189 (189) -
Balance as at 31 August 20161,1528138214,8767,662

Statement of Cash Flows

 Six months to 31 Aug 2016Six months to 31 Aug 2015Year to 29 February 2016
 £'000£'000£'000
Cash flows from operating activities     
Return on ordinary activities before tax (31) 2,000 2,366
Adjustments for:      
Decrease/(increase) in debtors 1 (161) 125
(Decrease)/increase in creditors (17) (15) (33)
(Gain) on disposal of fixed asset investments (2) (1,328) (1,049)
(Gain) on valuation of fixed asset investments (32) (733) (1,355)
Net cash generated from operating activities(81) (237) 54
Cash flows from investing activities     
       
Purchase of fixed asset investments (320) (200) (645)
Sale of fixed asset investments 19 1,577 3,297
Total cash flows from investing activities(301) 1,377 2,652
      
Cash flows from financing activities     
       
Dividends paid - (1,152) (2,304)
Total cash flows from financing activities- (1,152) (2,304)
      
Increase/(decrease) in cash and cash equivalents(382) (12) 402
      
Opening cash and cash equivalents1,111 709 709
      
Closing cash and cash equivalents729 697 1,111

  

Notes to the Half-Yearly Report

1.         Basis of preparation
The unaudited half-yearly results which cover the six months to 31 August 2016 have been prepared in accordance with the Financial Reporting Council's (FRC) Financial Reporting Standard 104 Interim Financial Reporting ('FRS 104') and the Statement of Recommended Practice (SORP) for Investment Companies re-issued by the Association of Investment Companies in November 2014. Details of the accounting policies and valuation methodologies are included in the Annual Report.

2.         Publication of non-statutory accounts
The unaudited half-yearly results for the six months ended 31 August 2016 do not constitute statutory accounts within the meaning of Section 415 of the Companies Act 2006. The comparative figures for the year ended 29 February 2016 have been extracted from the audited financial statements for that year, which have been delivered to the Registrar of Companies. The independent auditor's report on those financial statements, in accordance with chapter 3, part 16 of the Companies Act 2006, was unqualified. This half-yearly report has not been reviewed by the Company's auditor.

3.         Earnings per share
The calculation of earnings per share for the period is based on the return attributable to shareholders divided by the weighted average number of shares in issue during the period. There are no potentially dilutive capital instruments in issue and, therefore, no diluted returns per share figures are relevant.

4.         Net asset value per share
The net asset value per share is based on the net assets at the period end divided by the number of shares in issue at that date (11,516,946 in each case).

5.         Principal risks and uncertainties
The Company's assets consist of equity and fixed interest investments, cash and liquid resources. Its principal risks are therefore market risk, credit risk and liquidity risk. Other risks faced by the Company include economic, loss of approval as a Venture Capital Trust, investment and strategic, regulatory, reputational, operational and financial risks. These risks, and the way in which they are managed, are described in more detail in the Company's Annual Report and Accounts for the year ended 29 February 2016. The Company's principal risks and uncertainties have not changed materially since the date of that report.

6.         Related party transactions
OT4 Managers Ltd, a wholly owned subsidiary, provides investment management services to the Company for a fee of 1% of net assets per annum.

7.         Copies of this statement are available from Oxford Technology Management, The Magdalen Centre, Oxford Science Park, Oxford OX4 4GA and on the Company's website - www.oxfordtechnology.com/vct4.

Board Directors: David Livesley, Alex Starling, Robin Goodfellow and Richard Roth.

Investment Manager: OT4 Managers Ltd with services contracted to Oxford Technology Management Ltd

Website: www.oxfordtechnology.com/vct4




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Oxford Technology 4 VCT plc via Globenewswire

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