Proven Health VCT Plc : Interim Management StatementProVen Health VCT plc
Interim Management Statement for the 3 Months to 31 October 2011
In accordance with Rule 4.3 of the Disclosure and Transparency Rules of the UK Listing Authority, ProVen Health VCT plc ("the Company") presents an Interim Management Statement for the three month period ended 31 October 2011. The statement also includes relevant financial information between the end of the period and the date of this statement.
This interim management statement has been prepared solely to provide additional information to the shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules, and should not be relied on by any other party or for any other purpose.
This interim management statement considers the future of the Company and, as such, any forward-looking comments have been made by the Directors in good faith based on the information available to them up to the time of their approval of this statement. This statement should therefore be treated with due caution due to the inherent uncertainties of the effects of both economic and business risk factors in considering forward-looking information.
Performance summary
| As at
31 Oct 2011 | As at
31 Jul 2011 |
| Total net assets | £8.77 m | £8.78 m |
| | |
| Net asset value per share | 45.5p | 45.3p |
| Cumulative dividends per ordinary share since launch | 17.5p | 17.5p |
| Total return per share* | 63.0p | 62.8p |
| | |
| Mid-market share price | 40.8p | 41.3p |
* NAV plus cumulative dividends paid since launch
Investment update
At 31 October 2011 the portfolio consisted of 10 companies diversified across the health sector and at different stages of development. Of these companies, 2 were quoted and 8 were unquoted. At 31 October 2011, 7.7% of the Company's investments by value were held in quoted companies and 50.3% were held in unquoted companies. 42.0% of the Company's investments were held in cash and liquidity funds.
In the period since 31 July 2011, the Company has made two new investments in Community Pharmacies and Polytherics and a further follow on investment, as part of a significant new funding round, in Population Genetics Technologies. Additionally, the Company realised its holding in Onyx Scientific and a part of its holding in Vectura, both at a profit to the original cost.
Investment portfolio summary as at 31 October 2011 (by value)
| Cost | Valuation
at 31
October
2011 |
| £'000 | £'000 |
| Top venture capital investments (by value) | | |
| Altacor Limited | 1,020 | 1,241 |
| Population Genetics Technologies Limited | 1,129 | 1,210 |
| Polytherics Limited | 750 | 750 |
| Digital Healthcare Limited | 1,010 | 518 |
| Sinclair IS Pharma plc * | 585 | 387 |
| Community Pharmacies (UK) Limited | 375 | 375 |
| Omni Dental Sciences Limited | 750 | 339 |
| Vectura Group plc ** | 250 | 297 |
| 5,869 | 5,117 |
| | |
| Other venture capital investments | 1,646 | - |
| Total venture capital investments | 7,515 | 5,117 |
| | |
| Liquidity funds | 1,809 | 1,809 |
| Cash at bank and in hand | 1,897 | 1,897 |
| | |
| Total | 11,221 | 8,823 |
* Quoted on AIM
** Listed on the Main Market of the London Stock Exchange
All investments are unquoted unless otherwise stated.
Investment activity
The Company made the following additions and disposals between 1 August 2011 and 31 October 2011:
Additions
| Cost |
| £'000 |
| |
| Community Pharmacies (UK) Limited | 375 |
| Polytherics Limited | 750 |
| Population Genetics Technologies Limited | 50 |
| 1,175 |
Disposals
| Cost | Market value at 1 Aug 2011 | Disposal proceeds | Profit against cost | Total realised gain/(loss)
current period |
| £'000 | £'000 | £'000 | £'000 | £'000 |
| | | | | |
| Vectura Group plc | 232 | 280 | 278 | 46 | (2) |
| Onyx Scientific Limited | 850 | 989 | 989 | 139 | - |
| 1,082 | 1,269 | 1,267 | 185 | (2) |
There have been no disposals between 1 November 2011 and the date of this statement.
Changes to share capital
| Ordinary shares of 1p each |
| Number | £'000 |
| As at 1 August 2011 | 19,380,664 | 194 |
| Shares bought back and cancelled | (87,000) | (1) |
| As at 31 October 2011 | 19,293,664 | 193 |
Between 1 November 2011 and the date of this statement, the Company purchased a further 110,000 shares for cancellation.
Results of shareholder survey
The Company circulated a short shareholder survey with the half year report in October 2011. Responses were received from shareholders representing almost one quarter of total shares held in the Company. The Board extends its appreciation to all those shareholders who took the time to respond. The Board Chairman will shortly be sending a letter to shareholders outlining the results of the survey.
Outlook
Against a backdrop of continuing economic uncertainty both in the UK and abroad, the Company completed two new investments and one follow-on investment and sold its interest in one unquoted company during the period. Confidence remains fragile amongst investors and entrepreneurs but the investment management team and the Board are satisfied with the range and quality of investment opportunities being identified. The high proportion of investments in cash and liquidity funds provides the Company with scope to capitalise on investment opportunities as they arise.
The Board is evaluating a number of initiatives to improve returns to shareholders. In view of this, the Board has decided it would be prudent to temporarily suspend the Company's share buyback policy and not to consider any further dividend payments to shareholders until the outcome of these evaluations are concluded. The Board expects to be able to report further on this in early 2012.
Material events
The Company's Top-up Offer for subscription, launched on 24 January 2011, closed on 15 December 2011 having raised gross funds of £238,500.
Other than the matters described above, there were no material events during the period from 1 August 2011 to 31 October 2011 or in the period from 1 November 2011 to the date of this announcement.
Further information
Further information regarding the Company, can be found on Beringea's dedicated VCT website: www.provenvcts.co.uk.
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 Health VCT Plc via Thomson Reuters ONE
HUG#1572891
