TIDMOTV3
Octopus Titan VCT 3 plc
Half-Yearly Results
5 June 2014
Octopus Titan VCT 3 plc, managed by Octopus Investments Limited, today
announces the Half-Yearly results for the six months ended 30 April
2014.
These results were approved by the Board of Directors on 5 June 2014.
You may shortly view the Half-Yearly Report in full at
www.octopusinvestments.com. All other statutory information will also be
found there.
Financial Headlines
92.8p Net asset value (NAV) at 30 April 2014
33.5p Cumulative dividends paid
126.3p NAV plus cumulative dividends at 30 April 2014
2.5p Interim dividend declared for the half-year to 30
April 2014
Shareholder Information and Contact Details
Financial Calendar
Octopus Titan VCT 3 plc's financial calendar is as follows:
24 July 2014 - 2013 interim dividend paid
February 2015 - Annual results for the year to 31
October 2014 announced; Annual Report and financial statements published
March 2015 - Annual General Meeting
Dividends
Dividends will be paid by the Registrar on behalf of the Company.
Shareholders who wish to have dividends paid directly into their bank
account rather than by cheque to their registered address can complete a
mandate form for this purpose. Queries relating to dividends,
shareholdings and requests for mandate forms should be directed to the
Company's Registrar, Capita Asset Services, by calling 0871 664 0300
(calls cost 10p per minute plus network extras. Lines are open
Monday-Friday 9.00am-5.30pm), or by writing to them at:
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4BR
The table below shows the net asset value per share (NAV) and lists the
dividends that have been paid since the launch of Octopus Titan VCT 3
plc:
Period Ended NAV Dividends paid NAV + cumulative dividends
in period (total return)
31 October 2008 92.2p - 92.2p
30 April 2009 95.6p - 95.6p
31 October 2009 100.1p - 100.1p
30 April 2010 96.6p - 96.6p
31 October 2010 96.7p - 96.7p
30 April 2011 95.3p - 95.3p
31 October 2011 92.9p - 92.9p
30 April 2012 93.7p - 93.7p
31 October 2012 116.4p 1.0p 117.4p
30 April 2013 95.5p 20.0p 116.5p
31 October 2013 91.5p 10.0p 122.5p
30 April 2014 92.8p 2.5p 126.3p
Share Price
The VCT's share price can be found on various financial websites
including www.londonstockexchange.com, with the following TIDM/EPIC
code:
Ordinary shares
TIDM/EPIC code OTV3
Latest share price (5 June 2014) 86.5p per share
Buying and Selling Shares
Titan 3's ordinary shares can be bought and sold in the same way as any
other company quoted on the London Stock Exchange via a stockbroker.
There may be tax implications in respect of selling all or part of your
holdings, so shareholders should contact their independent financial
adviser if they have any queries.
The Company operates a policy of buying its own shares for cancellation
as they become available. The Company is, however, unable to buy back
shares directly from shareholders. If you are considering selling your
shares or trading in the secondary market, please contact the Company's
corporate broker, Panmure Gordon (UK) Limited ('Panmure').
Panmure is able to provide details of close periods (when the Company is
prohibited from buying in shares) and details of the price at which the
Company has brought in shares. Panmure can be contacted as follows:
Chris Lloyd 020 7886 2716 chris.lloyd@panmure.com
Paul Nolan 020 7886 2717 paul.nolan@panmure.com
Notification of Change of Address
Communications with shareholders are mailed to the registered address
held on the share register. In the event of a change of address or other
amendment this should be notified to the VCT's registrar, Capita, as
well as Octopus Investments Limited ('Octopus') under the signature of
the registered holder. Their contact details are provided at the end of
this report.
Other Information for Shareholders
Previously published Annual Reports and Half-yearly Reports are
available for viewing on the Investment Manager's website at
http://www.octopusinvestments.com/investors/shareholder-information/titan-vct-3.
All other statutory information will also be found there.
Warning to Shareholders
Many quoted companies are aware that their shareholders have received
unsolicited phone calls or correspondence concerning investment matters.
These are typically from overseas based 'brokers' who target UK
shareholders offering to sell them what often turn out to be worthless
or high risk shares in US or UK investments. They can be very persistent
and extremely persuasive. Shareholders are therefore advised to be very
wary of any unsolicited advice, offer to buy shares at a discount or
offer for free company reports.
Please note that it is very unlikely that either the Company or the
Company's registrar would make unsolicited telephone calls to
shareholders and that any such calls would relate only to official
documentation already circulated to shareholders and never in respect of
investment 'advice'.
If you are in any doubt about the veracity of an unsolicited phone call,
please call either Octopus Investments, or the Registrar, at the numbers
provided at the back of this report.
About Octopus Titan VCT 3 PLC
Octopus Titan VCT 3 plc ('Titan 3', 'Company' or 'VCT') is a venture
capital trust ('VCT') which aims to provide shareholders with attractive
tax-free dividends and long-term capital growth, by investing in a
diverse portfolio of predominantly unquoted companies. The Company is
managed by Octopus Investments Limited ('Octopus' or 'Investment
Manager').
Titan 3 was incorporated on 4 March 2008 and raised over GBP20.0 million
(GBP19.2 million net of expenses) through an Offer for Subscription. A
further GBP6.22 million in aggregate (GBP5.90 million net of expenses)
has been raised by way of top-ups in 2012 and 2013. In 2014, to date
GBP9.74 million in aggregate has been allotted (GBP9.5 million net of
expenses). Titan 3 invests primarily in unquoted UK smaller companies
and aims to deliver absolute returns on its investments.
Venture Capital Trusts (VCTs)
VCTs were introduced in the Finance Act 1995 to provide a means for
private individuals to invest in unlisted companies in the UK.
Subsequent Finance Acts have introduced changes to VCT legislation. The
tax benefits currently available to eligible new investors in VCTs
include:
-- up to 30% up-front income tax relief;
-- exemption from income tax on dividends paid; and
-- exemption from capital gains tax on disposals of
shares in VCTs.
Titan 3 has been approved as a VCT by HM Revenue & Customs (HMRC). In
order to maintain its approval the Company must comply with certain
requirements on a continuing basis.
-- at least 70% of the Company's investments must comprise 'qualifying
holdings'*(as defined in the legislation);
-- for cash raised pre 6 April 2011 at least 30% of the 70% of qualifying
holdings must be in eligible ordinary shares with no preferential rights;
-- for cash raised post 5 April 2011 at least 70% of the 70% of qualifying
holdings must be in eligible ordinary shares with no preferential rights;
-- no single investment can exceed 15% of the total Company value; and
-- a minimum of 10% of each Qualifying Investment must be in Ordinary shares
with no preferential rights.
*A 'qualifying holding' consists of up to GBP5 million invested in any
one year in new shares or securities in an unquoted company (or
companies quoted on AIM) which is carrying on a qualifying trade and
whose gross assets do not exceed GBP15 million at the time of
investment. The definition of a 'qualifying trade' excludes certain
activities such as property investment and development, financial
services and asset leasing. The Company will continue to ensure its
compliance with these qualification requirements.
Financial Summary
Six months to Six months to Year to 31
30 April 2014 30 April 2013 October 2013
Net assets (GBP'000s) 32,752 25,083 23,135
Return on ordinary activities
after tax (GBP'000s) 1,272 (232) 1,253
Net asset value per share (NAV) 92.8p 95.5p 91.5p
Cumulative dividends paid since 33.5p 21.0p 31.0p
launch
Total Return 126.3p 116.5p 122.5p
Proposed Dividend 2.5p 10.0p 2.5p
Chairman's Statement
I am pleased to present the Company's half-yearly results for the six
month period ended 30 April 2014.
Results and Dividend
As at 30 April 2014 the total return (net asset value (NAV) plus
cumulative dividends) stood at 126.3p, compared to 122.5p at 31 October
2013. This represents an increase of 3.1% over the six month period,
principally due to the uplift in the portfolio exceeding the standard
running costs of the Fund. These movements are discussed in further
detail below.
It is your Board's policy to strive to maintain a regular dividend flow
especially given their tax free status, supplemented by special
dividends following significant realisations. The dividend payable,
however, primarily relies on the level of profitable realisations and
available cash reserves. Taking account of these factors, the Board has
decided to declare an interim dividend of 2.5p (2013: 10.0p) per share
which will be payable on 24 July 2014 to shareholders on the register on
27 June 2014.
This will take the total cumulative dividends paid by the Company to
36.0 pence per share.
Investment Portfolio Review
The portfolio has had an overall uplift in fair value of GBP1,974,000
during the period with seven companies contributing to the uplift.
Certivox and Semafone were the main contributors to the uplift in value
providing GBP1,249,000 and GBP391,000, respectively. Three companies
suffered decreases in fair value totalling GBP180,000.
During the half year, Titan 3 invested GBP2,350,000 into six new
companies and made seven follow-on investments. Whilst over prior
periods the main focus has been on both developing and investing in the
current portfolio, the Investment Manager has now restarted investing in
new companies which have the potential for significant capital growth.
After 30 April 2014, the following investments were made:
-- GBP231,000 into Swoon (new company investment)
-- GBP471,000 into Zynstra
-- GBP150,000 into Origami (new company investment)
-- GBP467,000 into Aframe Media Group
Open Ended Investment Company (OEIC)
The holding in CF Octopus UK Micro Cap Growth Fund has continued its
strong performance and increased in fair value by GBP69,000 over the six
months to 30 April 2014.
Fund Raising
The Company, together with the other Titan funds, offered the
opportunity to invest into the VCTs through a linked new share offer. It
is pleasing to report that this offer raised GBP9,522,000 (net of costs)
for the Fund.
The majority of monies raised will also be used to support existing
portfolio companies where the Investment Manager sees a continuing
opportunity for capital growth, and some of the cash raised will be used
to invest in new companies thereby increasing the size of the portfolio.
The Investment Manager continues to sustain a pipeline of prospective
investments which have the potential to meet the investment criteria
demanded by the Fund.
VCT Qualifying Status
PricewaterhouseCoopers LLP provides both the Board and Octopus with
advice regarding ongoing compliance with HMRC rules and regulations
concerning VCTs. The Board has been advised that Titan 3 is in
compliance with the conditions laid down by HMRC for maintaining
provisional approval as a VCT.
As at 30 April 2014, over 93% of the portfolio (as measured by HMRC
rules) was invested in VCT qualifying investments.
Principal Risks and Uncertainties
The VCT's assets consist of equity and fixed-rate interest investments,
cash and liquid resources. Its principal risks are therefore market risk,
credit risk and liquidity risk. Other risks faced by Titan 3 include
economic, loss of approval as a VCT, investment and strategic,
regulatory, reputational, operational and financial risks. These risks,
and the ways in which they are managed, are described in more detail in
Titan 3's Annual Report and Accounts for the year ended 31 October 2013.
The VCT's principal risks and uncertainties have not changed materially
since the date of that report.
Outlook
The existing portfolio has continued to perform well resulting in an
overall uplift in value for another successive period. Investments in
new companies are now starting to be added and the Investment Manager
remains confident that this will continue over subsequent periods. As
ever, the challenge is to grow the portfolio companies and realise
profitable returns to generate attractive dividends, where increasingly
active M&A markets and growing investor appetite for technology based
companies provide a more positive environment for the development and
realisation of the portfolio.
As the economy continues to improve your Investment Manager is seeing
many interesting businesses with the potential for good investment
returns. Some of these opportunities can selectively be realised from
monies raised in the successful linked top-up fund raising.
Mark Hawkesworth
Chairman
5 June 2014
Investment Portfolio
Carrying Change in
Investment value at valuation % voting % equity
cost at 30 Unrealised 30 April in the rights managed
Qualifying April 2014 profit/ (loss) 2014 period held by by
investments Sector (GBP'000) (GBP'000) (GBP'000) (GBP'000) Titan 3 Octopus
Zenith Holding
Company
Limited Other 4,910 3,089 7,999 (122) 33.33% 100%
Certivox
Limited Technology 1,994 455 2,449 1,249 16.31% 30.74%
TouchType
Limited Telecommunications 1,226 1,007 2,233 - 5.28% 19.04%
Vega-Chi
Limited Technology 1,107 293 1,400 243 7.30% 14.10%
e-Therapeutics Consumer lifestyle
Plc and well being 1,152 (62) 1,090 (48) 1.46% 3.28%
UltraSoC
Technologies
Limited Technology 986 45 1,031 - 16.16% 55.11%
Amplience
Limited Technology 1,050 (41) 1,009 - 11.10% 30.74%
Getlenses Consumer lifestyle
Limited and well being 824 147 971 58 5.89% 15.63%
Mi-Pay Group
plc Telecommunications 1,004 (141) 863 159 5.73% 17.18%
Metrasens Consumer lifestyle
Limited and well being 668 94 762 - 6.66% 17.28%
Semafone
Limited Telecommunications 826 (123) 703 391 11.62% 26.17%
Surrey
Nanosystems
Limited Technology 621 43 664 - 6.18% 14.26%
Bowman Power
Limited Environmental 519 (54) 465 (12) 2.70% 10.70%
Executive
Channel Europe
Limited Media 753 (325) 428 - 8.26% 30.00%
Consumer lifestyle
Kabbee Limited and well being 400 - 400 - 1.55% 7.74%
Michelson
Diagnostics Consumer lifestyle
Limited and well being 627 (266) 361 - 5.69% 24.95%
Aframe Limited Media 332 - 332 - 4.23% 33.19%
Adbrain Limited Technology 300 - 300 - 1.65% 9.23%
Artesian
Solutions
Limited Technology 155 - 155 - 0.94% 23.70%
Zynstra Limited Technology 100 50 150 50 1.23% 8.12%
Uniplaces Consumer lifestyle
Limited and well being 106 - 106 - 5.81% 27.49%
Consumer lifestyle
Tailsco Limited and well being 39 - 39 - 0.77% 1.16%
Phasor
Solutions
Limited Technology 50 (18) 32 6 0.77% 0.98%
Streethub Consumer lifestyle
Limited and well being 26 - 26 - 0.90% 4.21%
Sofar Sounds Consumer lifestyle
Limited and well being 14 - 14 - 0.37% 1.85%
Total qualifying investments 19,789 4,193 23,982 1,974
Money market securities 5,030 - 5,030
OEICs 266 333 599
Cash at bank 3,293 - 3,293
Total investments 28,378 4,526 32,904
Net current assets (152)
Total net assets 32,752
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 'Half-Yearly Financial Reports' issued by the UK
Accounting Standards Board;
-- the half-yearly report includes a fair review of the information required
by the Financial Conduct 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; and
-- 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
Mark Hawkesworth
Chairman
5 June 2014
Income Statement
Six months to 30 April Six months to 30 April
2014 2013 Year to 31 October 2013
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Realised
gain on
disposal of
fixed asset
investments - 10 10 - - - - 527 527
Realised
gain on
disposal of
current
asset
investments - - - - 176 176 - 176 176
Fixed asset
investment
holding
gains - 1,974 1,974 - 29 29 - 1,408 1,408
Current
asset
investment
holding
gains - 69 69 - 47 47 - 119 119
Other income 9 - 9 92 - 92 252 - 252
Investment
management
fees (58) (175) (233) (64) (193) (257) (125) (375) (500)
Performance
fee
incentive - (333) (333) - (145) (145) - (319) (319)
Other
expenses (224) - (224) (174) - (174) (410) - (410)
Return on
ordinary
activities
before tax (273) 1,545 1,272 (146) (86) (232) (283) 1,536 1,253
Taxation on
return on
ordinary
activities - - - - - - - - -
Return on
ordinary
activities
after tax (273) 1,545 1,272 (146) (86) (232) (283) 1,536 1,253
Earnings per
share -
basic and
diluted (0.9)p 5.3p 4.4p (0.6)p (0.4)p (1.0)p (1.2)p 6.4p 5.2p
-- 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 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.
-- The accompanying notes are an integral part of the half-yearly report.
Reconciliation of Movements in Shareholders' Funds
Six months to 30 Six months to 30 Year to 31 October
April 2014 April 2013 2013
GBP'000 GBP'000 GBP'000
Shareholders'
funds at start of
period 23,135 25,034 25,034
Return on ordinary
activities after
tax 1,272 (232) 1,253
Issue of equity
(net of
expenses) 9,523 4,580 4,580
Purchase of own
shares (436) - (805)
Dividends paid (742) (4,299) (6,927)
Shareholders'
funds at end of
period 32,752 25,083 23,135
Balance Sheet
As at 30 April As at 30 April As at 31 October
2014 2013 2013
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Fixed asset investments* 23,982 19,806 19,658
Current assets:
Money market securities and other
deposits* 5,629 4,599 554
Debtors 420 331 1,074
Cash at bank 3,293 1,481 3,454
9,342 6,411 5,082
Creditors: amounts falling due
within one year (572) (1,134) (1,605)
Net current assets 8,770 5,277 3,477
Net assets 32,752 25,083 23,135
Called up equity share capital 3,531 2,627 2,529
Share Premium 8,471 5,188 5,188
Special distributable reserve 20,088 12,584 16,078
Capital redemption reserve 155 7 105
Capital reserve - losses on
disposal 263 3,992 (560)
-
holding
gains 1,897 1,928 1175
Revenue reserve (1,653) (1,243) (1,380)
Total equity shareholders' funds 32,752 25,083 23,135
Net asset value per share 92.8p 95.5p 91.5p
*Held at fair value through profit and loss
The statements were approved by the Directors and authorised for issue
on 5 June 2014 and are signed on their behalf by:
Mark Hawkesworth
Chairman
Company Number: 06523078
Cash flow statement
Six months to 30 Six months to 30 Year to 31 October
April 2014 April 2013 2013
GBP'000 GBP'000 GBP'000
Net cash outflow
from operating
activities (1,160) 961 196
Financial
investment:
Purchase of fixed
asset investments (2,350) (4,028) (12,892)
Disposal of fixed
asset investments 10 7,772 18,691
Management of liquid
resources:
Purchase of current
asset investments (5,306) (5,904) (5,908)
Disposal of current
asset investments 300 2,365 6,485
Dividends paid (742) (4,299) (6,927)
Financing:
Issue of equity 9,523 4,580 4,580
Purchase of own
shares (436) - (805)
Increase/(decrease)
in cash resources
at bank (161) 1,447 3,420
Reconciliation of net cash flow to movement in net
funds
Six months to Six months to
30 April 2014 30 April 2013 Year to 31 October 2013
GBP'000 GBP'000 GBP'000
Increase/(decrease)
in cash resources
at bank (161) 1,447 3,420
Movement in cash
equivalents 5,075 1,875 (2,170)
Opening net cash
resources 4,008 2,758 2,758
Net funds at period
end 8,922 6,080 4,008
Reconciliation of return before taxation to cash flow
from operating activities
Six months to Six months to
30 April 2014 30 April 2013 Year to 31 October 2013
GBP'000 GBP'000 GBP'000
Return on ordinary
activities before
tax 1,272 (232) 1,253
Loss on disposal of
current asset
investments - (176) (176)
Loss on disposal of
fixed asset
investments (10) - (527)
Gain on valuation of
fixed asset
investments (1,974) (29) (1,408)
Loss/(gain) on
valuation of
current asset
investments (69) (47) (119)
Decrease/(increase)
in debtors 654 1,298 555
Increase in
creditors (1,033) 147 618
Inflow/(outflow)
from operating
activities (1,160) 961 196
Notes to the Half-Yearly Report
1. Basis of preparation
The unaudited half-yearly results which cover the six months to 30 April
2014 have been prepared in accordance with the Accounting Standard
Board's (ASB) statement on half-yearly financial reports (July 2007) and
adopting the accounting policies set out in the statutory accounts of
the Company for the year ended 31 October 2013, which were prepared
under UK GAAP and in accordance with the Statement of Recommended
Practice for Investment Companies issued by the Association of
Investment Companies in January 2009.
2. Publication of non-statutory accounts
The unaudited half-yearly results for the six months ended 30 April 2014
do not constitute statutory accounts within the meaning of Section 415
of the Companies Act 2006. The comparative figures for the year ended 31
October 2013 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 earnings per share is based on 29,261,688 (30 April 2013: 22,268,597
and 31 October 2013: 24,192,531) shares, being 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. The basic
and diluted earnings per share are therefore identical.
4. Net asset value per share
The calculation of NAV per share as at 30 April 2014 is based on
35,304,630 (30 April 2013: 22,266,713 and 31 October 2013: 25,287,477)
ordinary shares in issue at that date.
5. Dividends
The interim dividend declared of 2.5 pence per share for the six months
ending 30 April 2014 will be paid on 24 July 2014, to those shareholders
on the register on 27 June 2014.
The final dividend of 2.5 pence per share for the year ending 31 October
2013 was paid on 4 April 2014 to those shareholders on the register on 7
March 2014
6. Buy Backs
During the six months ended 30 April 2014 there were no buy backs (six
months ended 30 April 2013: none and year ended 31 October 2013: 503,649
ordinary shares at a weighted average price of 86.5 pence per share).
During the six months to 30 April 2014, 10,520,802 shares were issued at
a weighted average price of 90.5 pence per share.
7. Related Party Transactions
Octopus Investments Limited acts as the Investment Manager of the
Company. Under the management agreement, Octopus receives a fee of 2.0
per cent per annum of the net assets of the Company for the investment
management services. During the period, the Company incurred management
fees of GBP233,000 payable to Octopus with GBP333,000 accrued for
performance fees (30 April 2013: GBP257,000 and 31 October 2013:
GBP500,000 with performance fees of GBP319,000). At the period end there
were management fees of GBPnil stated within prepayments (30 April 2013:
GBPnil and 31 October 2013: GBPnil). Furthermore, Octopus provides
administration and company secretarial services to the Company. Octopus
receives a fee of 0.3 per cent per annum of net assets of the Company
for administration services and GBP10,000 per annum for company
secretarial services.
8. Additional information
Copies of this report are available from the registered office of the
Company at 20 Old Bailey, London, EC4M 7AN.
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX 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: Octopus Titan VCT 3 PLC via Globenewswire
HUG#1791150
http://www.octopusinvestments.com
Octopus T. 3 (LSE:OTV3)
Historical Stock Chart
From Apr 2024 to May 2024
Octopus T. 3 (LSE:OTV3)
Historical Stock Chart
From May 2023 to May 2024