*

Hitt og þetta 19. júlí 2007

Half-yearly report

Downing Protected VCT IV plc Interim Statement for the six months ended 31 May 2007 PERFORMANCE SUMMARY 31 May 2007 30 Nov 2006 pence pence Net asset value per Ordinary share 95.6 95.7 Cumulative distributions per Ordinary share 1.0 - Total return per Ordinary share 96.6 95.7 CHAIRMAN'S STATEMENT The six-month period ended 31 May 2007 has seen your Company continue to make good progress in investing its funds as it moves towards the target of having 70% of its funds in VCT qualifying investments. Venture capital investments During the period the Company made two new investments of £1 million each in VCT qualifying businesses. Hoole Hall Country Club and Spa Limited is in the process of developing a Hotel near Chester. The Really Fine Leisure Company Limited owns and operates a health and leisure club near Marlow, Bucks. Both companies' have experienced management teams and, in both cases, your Company has been able to take first charges over the company's freehold assets. The Company found some further opportunities to make non-qualifying investments in several developer and other companies. In each case, these investments produce yields higher than fixed interest securities or bank deposits in exchange for a very small increase in risk, therefore the Board have welcomed such investments. There were a number of realisations during the period, although in all cases, these were redemptions of loan stock investments at par and, were either planned short-term investments, or funds being returned by companies which did not commence their original planned trades, as I mentioned in my statement within the last Annual Report. At the end of the period, the Board reviewed the portfolio and concluded that, generally, investments were performing to plan and that no provisions against the valuations were required. All investments have therefore been held at values equal to their original cost. Fixed interest portfolio The Company continues to hold a portfolio of eight corporate bonds with a total value of £3.9 million. The increase in interest rates has resulted in an unrealised loss on this portfolio of £68,000 being recorded over the period. Net Asset Value and Results At 31 May 2007, the Net Asset Value per share ("NAV") of the Company stood at 95.6p, a small increase of 0.9p (0.9%) since the previous year end of 30 November 2006 (after adjusting for the 1p dividend paid during the period). The profit on ordinary activities after taxation for the period was £196,000, comprising a revenue profit of £264,000 and a capital loss of £68,000. Share repurchase The Company operates a policy, subject to certain restrictions, of buying its own shares when any become available in the market. No shares were purchased in the period for cancellation. Outlook The Board remains satisfied with progress made by the manager in investing the Company's funds and is happy with the quality of investments made to date. The Board will continue to work closely with the manager to ensure that the investing phase is completed in a timely manner. Once the investing phase is complete, the Board will then be able to start to plan, with the manager, the detail of the Company's realisation and exit strategy, in order to deliver Shareholders a result in line with the objectives that were set at the Company's launch. Hugh Gillespie Chairman UNAUDITED INCOME STATEMENT for the six months ended 31 May 2007 Six months ended 31 May 2007 Revenue Capital Total £'000 £'000 £'000 Income 582 - 582 Losses on investments - (68) (68) 582 (68) 514 Investment management fees (104) - (104) Other expenses (88) - (88) Return on ordinary activities before 390 (68) 322 taxation Taxation (126) - (126) Return attributable to equity shareholders 264 (68) 196 Return per share 1.2p (0.3p) 0.9p Six months ended Year ended 31 May 2006 30 Nov 2006 Revenue Capital Total Total £'000 £'000 £'000 £'000 Income 209 - 209 706 Losses on investments - - - (21) 209 - 209 685 Investment management fees (42) - (42) (152) Other expenses (62) - (62) (146) Return on ordinary activities 105 - 105 387 before taxation Taxation (34) - (34) (133) Return attributable to equity 71 - 71 254 shareholders Return per share 0.5p - 0.5p 1.4p A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement as noted above. UNAUDITED SUMMARISED BALANCE SHEET as at 31 May 2007 31 May 2007 31 May 2006 30 Nov 2006 £'000 £'000 £'000 Fixed assets Investments 19,532 11,000 19,950 Net current assets 1,210 9,579 813 Creditors: amounts falling due after more than one year (21) (20) (21) Net assets 20,721 20,559 20,742 Capital and reserves Called up share capital 217 217 217 Share premium - 20,271 20,271 Special reserve 20,271 - - Capital reserve - realised - - - Capital reserve - unrealised (89) - (21) Revenue reserve 322 71 275 Equity shareholders' funds 20,721 20,559 20,742 Net asset value per share 95.6p 94.8p 95.7p RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS for the six months ended 31 May 2007 31 May 2007 31 May 2006 30 Nov 2006 £'000 £'000 £'000 Opening shareholders' funds 20,742 - - Issue of shares - 21,680 21,680 Share issue costs - (1,192) (1,192) Dividends paid (217) - - Total recognised gains for 196 71 254 the period Closing shareholders' funds 20,721 20,559 20,742 UNAUDITED CASH FLOW STATEMENT for the six months ended 31 May 2007 31 May 31 May 2006 30 Nov 2007 2006 Note £'000 £'000 £'000 Cash inflow from operating activities and returns on 1 investments 407 65 152 Capital expenditure Purchase of investments (5,750) (11,000) (21,871) Proceeds from disposal of 6,100 - 1,900 investments Net cash inflow/(outflow) from 350 (11,000) (19,971) capital expenditure Equity dividends paid (217) - - Net cash inflow/(outflow) 540 (10,935) (19,819) before financing Financing Shares issued - 21,730 21,730 Redemption of preference shares - (50) (50) Share issue costs - (1,192) (1,192) Proceeds from issue of loan - - 21 notes Net cash inflow from financing - 20,488 20,509 Increase in cash 2 540 9,553 690 Notes to the cash flow statement: 1 Cash inflow from operating activities and returns on investments Net revenue before taxation 390 105 408 Decrease/(increase) in other 116 (78) (402) debtors (Decrease)/increase in other (99) 38 146 creditors Net cash inflow from operating 407 65 152 activities 2 Analysis of net funds Beginning of period 690 - - Net cash inflow 540 9,553 690 End of period 1,230 9,553 690 SUMMARY OF INVESTMENT PORTFOLIO as at 31 May 2007 % of Unrealised portfolio Cost Valuation gain/(loss) by value Venture Capital Investments (by value) £'000 £'000 £'000 £'000 VCT Qualifying Warwick Contracting Ltd 2,000 2,000 - 9.7% Heyford Contracting (North) Ltd 1,575 1,575 - 7.6% Heyford Contracting (South) Ltd 1,500 1,500 - 7.2% Cadbury House Hotel and Country Club Ltd 1,000 1,000 - 4.8% Hoole Hall Country Club and Spa Ltd 1,000 1,000 - 4.8% Nu Nu plc 1,000 1,000 - 4.8% The Really Fine Leisure Company Ltf 1,000 1,000 - 4.8% Richstone Contracting Ltd 642 642 - 3.1% 9,717 9,717 - 46.8% Non VCT Qualifying Green Mountain Contractors Ltd 1,000 1,000 - 4.8% Midlands Contracting Ltd 1,000 1,000 - 4.8% Vermont Development Ltd 1,000 1,000 - 4.8% Bowman Care Homes Ltd 600 600 - 2.9% Heyford Homes VCT Ltd 600 600 - 2.9% Gatewales Ltd 500 500 - 2.4% Property Solutions Ltd 500 500 - 2.4% OVL Banbury LLP 315 315 - 1.5% Sanguine Hospitality Ltd 250 250 - 1.2% Calthorpe Street Ltd 113 113 - 0.6% 5,878 5,878 - 28.3% Listed Fixed Interest Investments 4,026 3,937 (68) 19.0% Total 19,621 19,532 (68) 94.1% Cash at Bank 1,230 5.9% Total investments 20,762 100.0% SUMMARY OF INVESTMENT MOVEMENTS For the period ended 31 May 2007 Additions £'000 VCT Qualifying investments Hoole Hall Country Club and Spa Ltd 525 The Really Fine Leisure Company Limited 1,000 Non-qualifying investments Gatewales Ltd 500 Green Mountain Contractors Ltd 1,000 Property Solutions Ltd 500 Sanguine Hospitality Ltd 250 Vermont Development Ltd 1,500 5,275 Disposals Cost Proceeds Profit/(loss) £'000 £'000 £'000 Non-qualifying investments (All loan stock redemptions) Adam Pub Company Ltd 1,000 1,000 - Blackbush Pub Company Ltd 1,000 1,000 - Cadbury House and Hotel Limited 600 600 - Hattanman Contracting Ltd 1,000 1,000 - Manhattan Contractors Ltd 1,000 1,000 - Vermont Developments Ltd 500 500 - Windsor Garden Centres Ltd 1,000 1,000 - 6,100 6,100 - NOTES TO THE UNAUDITED FINANCIAL STATEMENTS 1. Basis of accounting The Company has prepared its financial statements under UK Generally Accepted Accounting Practice ("UK GAAP") and in accordance with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies" revised December 2005 ("SORP"). Presentation of Income Statement In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the Association of Investment Companies ("AIC"), supplementary information which analyses the income statement between items of a revenue and capital nature has been presented alongside the income statement. The net revenue is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Section 842 Income and Corporation Taxes Act 1988. Investments All investments are designated as "fair value through profit or loss" assets and are initially measured at cost, equivalent to their fair value. Listed fixed income investments are measured using bid prices in accordance with the International Private Equity and Venture Capital Valuation Guidelines. The Directors establish the fair value of unquoted investments by using an adjusted net asset valuation model, as they believe this best reflects the nature of the underlying investments and it is calculated in accordance with the International Private Equity and Venture Capital Valuation Guidelines. Where an investment has been held for less than one year, unless there are any indications to the contrary, fair value is assumed to be equal to the cost of the investment. The unrealised depreciation or appreciation arising on the valuation of investments and gains and losses arising on the disposal of investments are dealt with in the capital reserve. It is not the Company's policy to exercise significant influence over investee companies. Therefore the results of these companies are not incorporated into the income statement except to the extent of any income accrued. This is in accordance with the SORP that does not require portfolio investments to be accounted for using the equity method of accounting. Income Dividend income from investments is recognised when the shareholders' rights to receive payment has been established, normally the ex dividend date. Interest income is accrued on a timely basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount, and only where there is reasonable certainty of collection. Expenses All expenses are accounted for on accruals basis. In respect of the analysis between revenue and capital items presented within the income statement, all expenses have been presented as revenue items except as follows: * Expenses which are incidental to the disposal of an investment are deducted from the disposal proceeds of the investment. * Expenses are split and presented partly as capital items where a connection with the maintenance or enhancement of the value of the investments held can be demonstrated. The Company has adopted a policy of charging 100% of the Investment Management fees to the revenue account. Taxation The tax effects on different items in the Income Statement are allocated between capital and revenue on the same basis as the particular item to which they relate using the Company's effective rate of tax for the accounting period. Due to the Company's status as a Venture Capital Trust and the continued intention to meet the conditions required to comply with Section 842AA of the Income and Corporation Taxes Act (1988), no provision for taxation is required in respect of any realised or unrealised appreciation of the Company's investments which arises. Deferred taxation is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the accounts. 2. All revenue and capital items in the Income Statement derive from continuing operations. 3. The Company has only one class of business and derives its income from investments made in shares, securities and bank deposits. 4. The comparative figures were in respect of the six-month period ended 31 May 2006 and the 12 month period ended 30 November 2006 respectively. 5. Return per share for the period has been calculated on 21,680,245 shares, being the weighted average number of shares in issue during the period. 6. Dividends paid 30 Nov 2006 31 May 2007 Revenue Capital Total Total £'000 £'000 £'000 £'000 Paid in period/year 2006 Final (1p paid 27 April 217 - 217 - 2007) 7. Reserves Share premium Special Capital reserve - Revenue account reserve unrealised reserve Total £'000 £'000 £'000 £'000 £'000 At 30 November 20,271 - (21) 275 20,525 2006 Losses on - - (68) - (68) investments Transfer (20,271) 20,271 - - - Dividends paid - - - (217) (217) Retained - - - 264 264 revenue At 31 May 2007 - 20,271 (89) 322 20,504 The Special Reserve was created on 6 December 2006 by the cancellation of the Share Premium account following court approval. The Special Reserve is available to the Company to enable the purchase of its own shares in the market without affecting its ability to pay capital distributions. The Special Reserve, Capital Reserve - Realised and Revenue Reserve are all distributable reserves. 8. The unaudited financial statements set out herein do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985 and have not been delivered to the Registrar of Companies. 9. Copies of the unaudited interim results will be sent to shareholders shortly. Further copies can be obtained from the Company's Registered Office and will be available for download from www.downing.co.uk. ---END OF MESSAGE---