Final Results

PROVEN VCT PLC FINAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2008 FINANCIAL HIGHLIGHTS Ordinary Shares 2008 2007 pence pence Net asset value (per Ordinary Share) 88.5 108.3 Cumulative gross distributions paid 74.2 53.2 (from launch to 29 Feb 2008) Total return 162.7 161.5 (net asset value plus cumulative distributions paid and declared) Dividends paid/payable in respect of the year ended 29 February 2008: Interim dividend (per Ordinary Share) 6.00 31.0 (paid on 6 December 2007) Second interim dividend (per Ordinary Share) 2.50 15.0 (paid on 14 March 2008) Final proposed dividend (per Ordinary Share) 1.25 - (payable on 22 July 2008) 9.75 46.0 'C' Shares 2008 2007 pence pence Net asset value (per 'C' Share) 89.6 n/a Cumulative gross distributions paid 1.0 n/a (from launch to 29 Feb 2008) Total return 90.6 n/a (net asset value plus cumulative distributions paid and declared) Interim dividend (per 'C' Share) 1.00 n/a (paid on 6 December 2007) Final proposed dividend (per 'C' Share) 1.75 n/a (payable on 22 July 2008) 2.75 CHAIRMAN'S STATEMENT The year to 29 February 2008 has seen a sharp change in investor confidence led by the "credit crunch" and general fears for the economic outlook. While, in most cases, the underlying businesses of the Company's investments have not been greatly affected by the above, there has been some impact on investment valuations, particularly of AIM-quoted investments. Net Asset Value Ordinary Shares At the year end, the Company's net asset value per Ordinary Share ("Ordinary NAV") stood at 88.5p, an increase of 1.2p per share or 1.1% over the year after adjusting for the dividends of 21p per Ordinary Share which were paid during the year. Total return (Ordinary NAV plus cumulative dividends paid) to Ordinary Shareholders who invested at the outset of the Company now stands at 162.7p per share, compared to an original investment, net of income tax relief, of 80p per share. At 30 November 2007, the Company announced an Ordinary NAV of 113.5p per share and a total return of 181.7p. The uplift at 30 November 2007 was primarily due to an increase in the valuation of Espresso Group. This was based on projections prepared by Espresso using a forecasting model which subsequently was found to be flawed. Although the prospects for Espresso remain bright, the valuation of the investment has been reduced back to a similar level as it was at the half-year date. The reduction in the Espresso valuation has been the primary reason for the reduction in the Company's Ordinary NAV since 30 November 2007. 'C' Shares At the year end, the Company's net asset value per 'C' Share ("'C' Share NAV") stood at 89.6p, a decrease of 3.9p per share or 4.1% on the initial 'C' Share NAV at launch after adjusting for the dividends of 1.0p per 'C' Share which were paid during the year. Total return ('C' Share NAV plus cumulative dividends paid) to 'C' Shareholders who invested at the 'C' Share fundraising now stands at 90.6p per share. The 'C' Share pool has suffered from a full provision that has been needed against one investment, The Vending Corporation Limited. The Vending Corporation's business has experienced an extremely sharp downturn and now faces an uncertain future. Board change There was one Board change during the year when David Eberly stepped down as representative of Beringea, the Investment Manager, on 31 December 2007 and was replaced by Malcolm Moss. I wish to thank David for his contribution since joining the Board in January 2007 and look forward to continuing to work with him in his role with Beringea. Malcolm Moss is a Senior Managing Director and Founder of Beringea LLC and also sits on the board of Beringea Limited, the Company's investment manager. Malcolm brings to the Board extensive investment experience in the media, intellectual property rights and content sectors. Ordinary Share top-up issue In February 2008, the Company launched a small Ordinary Share fundraising. The Offer closed on 7 April 2008 having raised £1.1 million (net of costs). All shares were allotted after 29 February 2008. Venture capital investments It has been a busy year for the Company in terms of investment activity. The Ordinary Share pool made six new investments and the 'C' Share pool eight new investments. The Ordinary Share pool also made four major disposals, three of which produced significant gains over their previous carrying valuation. Total realised gains for the year were £1.8 million of which £1.2 million arose from the disposal of Oasis Healthcare. Overall. the Ordinary Share portfolio produced an unrealised loss of £626,000 for the year. The loss is explained by a fall in share prices of two AIM-quoted investments, full provisions made against two unquoted investments where there is doubt as to whether value can be recovered and adjustments (both up and down) of carrying values of other unquoted investments generally based on trading performance. The 'C' Share pool produced an unrealised loss of £905,000, mainly explained by a full provision required against the investment in The Vending Corporation Limited. Results and dividend The loss on activities after taxation for the year was £313,000 (2007: gain £7,394,000), comprising a revenue return of £682,000 and a capital loss of £995,000. On 6 December 2007, an interim dividend of 6.0p per Ordinary Share (2007: 31.0p per share) and 1.0p per 'C' Share (2007: nil) was paid to Shareholders. A second interim dividend of 2.5p per Ordinary Share was paid on 14 March 2008. The Board is proposing final dividends as follows: Ordinary Shares 1.25p per share 'C' Shares 1.75p per share Subject to Shareholder approval, these dividends will be paid on 22 July 2008 to Shareholders on the register at 4 July 2008. Repurchase of shares In order to ensure liquidity in the market in the Company's shares, the Company operates a policy of buying in its own shares as they become available in the market. During the year, the Company repurchased 171,768 Ordinary Shares, at an average price of 85.4p per share, and 2,677 'C' Shares, at an average price of 81.5p per share, for cancellation. Generally, share buybacks are undertaken at a 10% discount to the latest NAV published by the Company. The Board intends to continue with this policy and will put a resolution to Shareholders at the AGM. Articles of Association At the forthcoming AGM, the Board will seek Shareholder approval to update the Company's Articles of Association. Resolution 10, which is a special resolution, proposes the adoption of new Articles of Association which incorporate a number of changes which are required as a result of the implementation of the Companies Act 2006. An explanation of the proposed changes is provided within the Report of the Directors. The Board recommends Shareholders vote for Resolution 10 as, in the Board's opinion, the proposed changes are in the best interests of Shareholders. Annual General Meeting The Annual General Meeting ("AGM") of the Company will be held at 39 Earlham Street, London WC2H 9LT at 11:00 am on 17 July 2008. Four items of special business will be proposed at the AGM in respect of share buybacks as mentioned above, two resolutions in connection with authority for the Directors to allot shares and to change the Articles of Association also as mentioned above. Outlook I am pleased to report that, since the year end, Company has realised another of the investments held by the Ordinary Share pool. The investment in ILG Digital was sold at a significant profit against cost and an uplift against the valuation at 29 February 2008 equivalent to 6.9p per Ordinary Share. Following the significant number of realisations in the last year and the recent fundraising, the Ordinary Share pool now has funds available for investment, as well as the significant level of funds which the 'C' Share pool still has to invest. The rate of new investments over the last year has been good, however, with more uncertain economic conditions, it becomes increasingly important to ensure that new investments remain of the highest quality. REVIEW OF INVESTMENTS ORDINARY SHARE POOL Ordinary Share portfolio of investments The following investments were held at 29 February 2008: Valuation movement % of Cost Valuation in year portfolio £'000 £'000 £'000 by value Top ten venture capital investments (by value) Espresso Group Limited 2,048 6,015 683 29.5% ILG Digital Limited 1,345 2,760 (591) 13.5% SPC International Limited 1,145 1,011 (98) 4.9% Campden Media Limited 975 972 (81) 4.8% Optima Data Intelligence 900 900 - 4.4% Services Limited Ashford Colour Press Limited 875 828 115 4.1% Donatantonio Limited 575 575 - 2.8% Eagle Rock Entertainment Limited 420 565 145 2.8% Saffron Media Group Limited 480 480 - 2.4% (formerly Harmony Media Group Limited) Pilat Media Global plc* 173 320 (328) 1.6% 8,936 14,426 (155) 70.8% Other venture capital investments UBC Media plc* 1,101 311 (228) 1.5% Coolabi plc* 283 301 18 1.5% ID Data plc* 263 3 - 0.0% GB Industries Limited 1,134 - - 0.0% Baby Innovations S.A. t/a 604 - (114) 0.0% Steribottle Sports Holdings Limited 147 - (146) 0.0% 3,532 615 (470) 3.0% Total venture capital 12,468 15,041 (625) 73.8% investments Liquidity funds 4,400 21.6% Cash at bank and in hand 945 4.6% Total Ordinary Share investments 20,386 100.0% All venture capital investments are unquoted unless otherwise stated. * Quoted on AIM All venture capital investments are registered in England and Wales with the exception of Baby Innovations S.A., which is registered in Madeira. REVIEW OF INVESTMENTS C SHARE POOL 'C' Share portfolio of investments The following investments were held at 29 February 2008: ---END OF MESSAGE---