St Helens Private Equity Plc
LSE : SHPE

December 12, 2011 02:00 ET

Final results for the year ended 30 September 2011

                                                                                       12 December 2011


                                     ST HELEN'S PRIVATE EQUITY PLC
                                       ("SHPE" or "the Company")
                                          (PLUS SYMBOL: SHPE)


                          FINAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2011


St  Helen's  Private  Equity Plc, the Pre-IPO, Special Situations and 'Small  cap'  Investment  Company
announces audited annual accounts for the year ended 30 September 2011.

FINANCIAL HIGHLIGHTS

Turnover:                                     GBP nil (2010: GBP 2,905)
Total recognised loss before tax:             GBP 57,283 (2010: GBP 61,486 profit)
Shareholder Funds:                            GBP 752,797 (2010: GBP 810,082)
Recognised loss per share:                    2.5p (2010: 2.7p gain)
Net Asset Value per share:                    33p (2010: 36p)
Number of investments:                        40 (2010: 40)


CHAIRMAN'S STATEMENT

I  am pleased to report the results for the year ended 30 September 2011, the Company's sixth full year
of operation.

The  Company has made a total recognised loss of GBP 57,283 (2010: GBP 61,486 profit) for the full year
and  net assets per share have decreased by 2.6p to 33.4p per share, a decrease of 7.22% for the twelve
months, and shareholder funds have decreased to GBP 752,797.

The  small  decrease in NAV is disappointing but not unexpected given the performance  of  the  markets
during 2011. Achieving good exits from the unquoted portfolio is key if the performance of the fund  is
to be turned into satisfactory gains.

Market Review

During  the  twelve month period market sentiment changed markedly. In the final quarter of  2010,  the
markets  and in particular the AIM indices continued their strong performance following the UK election
in  the  spring  of 2010. From the turn of the year these strong gains were reversed  on  the  back  of
mounting  uncertainties  created from political unrest in the North Africa  and  Middle  East  regions,
conflicting  economic  data  from  China, the Japanese earthquake,  and  increasing  concern  over  the
financial stability of the 'PIIGS' (Portugal, Ireland, Italy, Greece, and Spain) countries in the EU.

Overall  market  sentiment  was negative for the period and there were significant  falls  in  all  the
benchmark indices we track our Net Asset Value against, as follows:

FTSE 100 index           -  7.59%
AIM UK 50 Index          -  8.21%
AIM All-share Index      - 10.47%

The  equity  and debt funding market for small and micro cap businesses continued to stay  challenging.
Valuations  stayed  low, and IPO and Trade sales, the main exit routes, remained unattractive.  At  the
same  time  the  economy  continued to provide a challenging and competitive  trading  environment  for
companies.

Investment Performance Review

We  reviewed the valuations of all our unquoted holdings at the half year and full year date, adjusting
the  valuations where we believed it was prudent to do so. Over the year we had a net write down of the
unquoted portfolio by £2,852 (representing a write down of 0.83% against their former value).

We benchmark the performance of the portfolio versus the FTSE 100, AIM UK 50 and AIM All-Share indices.

During  the period the Company generated a total recognised loss of GBP 57,283 resulting in a  decrease
in  the  Net Asset Value of the Company from 36p per share to 33.4p per share. Despite being  negative,
this fall in value of 7.22% was a better performance than all the benchmark indices.

The Directors do not recommend paying a dividend.

Share Price Performance

During the period the Company's share price increased by 35% from 20p to 27p. At the end of the period
the share price of 27p showed a discount of 20% to the Net Asset Value per share of 33.4p.

Investment Activity Review

During  the period five new investments totaling £79,038 were made, two investments of over £20,000  in
AIM  quoted  companies (Jubilee Platinum and ZincOx), three investments of £10,000  in  three  unquoted
companies  Traccr (a CDS trading platform), West Country Renewables (A solar and wind energy  developer
in  Cornwall) and Morvus (A pharmaceutical developer for the oncology market), and two small follow  on
investments were made in existing unquoted holdings. In terms of disposals we divested partly or wholly
from six holdings with a net book value of £131,528 recognising an overall profit of £12,945. We exited
Neutrahealth  (A Nutraceutical consolidator) and Environ Group (a holding company for support  services
businesses) in full, top sliced part of our holdings in Quercus (publisher) and Cadogan Petroleum  (Gas
and  Oil  explorer and producer in Ukraine), received the final balancing repayments of our short  term
loan  facility  to Lab21 (Healthcare diagnostics) and conversion of our equity and loan to  Myconostica
into Lab21 shares following its takeover by Lab21.

News across the portfolio was mixed. Quercus, the publisher of the Stieg Larsson Millenium trilogy, and
Cadogan  Petroleum  continued  to perform well. Against this a number  of  our  other  quoted  holdings
experienced  significant falls in their share prices on the back of the general market uncertainty.  In
the  unquoted portfolio several companies such as Karus, Future Biogas, and Traccr were able  to  raise
additional funds at higher valuations. These positive developments, however, were more than  offset  by
write  downs  on  other  unquoted holdings where new funding, or share sales,  were  secured  at  lower
valuations (Site Intelligence and Hephaestus) or in the case of Myconostica the company had to agree to
a  takeover  by  Lab21 on very dilutive terms in order to survive. None of our unquoted companies  were
able to achieve a public quote in their shares.

At  the end of the year the Company held forty investments. The top twenty investments in the portfolio
by value are set out in the table following:

 Company                Date     of  Market         Activity
                        investment                  
 Kromek                 August       Unquoted       Technology    company   developing    Cadmium
                        2006    and                 Telluride,  a valuable specialist  industrial
                        July 2007                   material,  for  the Security, Inspection  and
                                                    Defence markets
                                                    
 Cadogan Petroleum      August       LSE            Gas and Oil Explorer in the Ukraine
                        2007    and                 
                        August
                        2010
 Quercus                August       PLUS           Publisher, winner of small publisher  of  the
                        2006                        year award
                                                    
 Aortech International  May 2010     AIM            Developer   and  distributor  of   biomedical
                                                    products
 Karus Therapeutics     June 2007    Unquoted       Developer  of  pharmaceuticals for  treatment
                                                    of   chronic  diseases  such  as  cancer  and
                                                    inflammation
                                                    
 Lab 21                 Sept 2010    Unquoted       Personalised medicine diagnostic provider
 
 Future Biogas          July 2010    Unquoted       Developer of biogas power plants
                                                    
 Timeweave              June 2010    AIM            Provider of Racecourse broadcasting services
 
 ZincOx                 January      AIM            A  'disruptive' technology recycler  of  EAFD
                        2011                        (Electronic  Arc  Furnace  Dust)  from  steel
                                                    mills to produce Zinc
 TMO Renewables         March 2007   Unquoted       'Disruptive'  technology  provider   to   the
                                                    Biofuel sector
                                                    
 Ideagen (Datum)        May 2005     PLUS           Developer   and  distributor  of   Enterprise
                        Sept 2007                   Content Management software
                                                    
 Equity Resources       March 2006   PLUS           Investment vehicle with holdings in Red  Rock
                                                    Resources and Regency Mines
                                                    
 i-Jento                August       Unquoted       Web Analytics software
 (Site Intelligence)    2005                        
 Ascent Resources       June 2010    AIM            Gas exploration and production in Europe
 
 Rainbow Rewards        Sept 2009    Unquoted       US based, Cash back rewards scheme
                                                    
 Numecent    (Endeavor  July 2010    Unquoted       Application virtualization and internet  data
 Technologies)                                      streaming developer
                                                    
 Ceres Media            March 2007   AIM            Development,  production  and  provision   of
 International                                      100%   natural   and   compostable   printing
 (Hartfield                                         materials  to  the advertising and  point  of
 Securities)                                        sale markets
 Relay Station          November     Unquoted       Mass broadcaster of voice and text messages
                        2006
 Synapse                August       Unquoted       Specialist   developer  of  medical   devices
 micro-current          2005                        relating to tissue healing
 West          Country  November     Unquoted       Developer of small renewable energy  projects
 Renewables             2010                        -  wind-turbines of 20kW-100kW and  solar  PV
                                                    of up to 50kW

Of  the  forty investments in the portfolio, one is traded on the Main LSE market, eight are traded  on
AIM,  one on the Toronto Venture Stock Exchange, five are traded on PLUS, and the balancing twenty five
are unquoted.

The  three largest investments in the portfolio represent around 35% of NAV in aggregate. As  a  result
the  future  performance  of  these investments has the potential to have  a  material  impact  on  the
performance of the whole portfolio.

Board

There were no Board changes during the year.

Outlook

As previously stated, the critical success factors for our future performance are twofold. Firstly that
we  do  not lose too many of our potential stars during the downturn and secondly that market sentiment
and  valuations for small companies strengthens significantly, resulting in re-vitalised IPO and  trade
sale  markets.  Currently the market is characterised by a restricted availability of equity  and  debt
finance, low liquidity and a weak economy. The trading environment looks as if it is going to get  more
challenging and increase the vulnerability of small and micro cap companies.

We  still believe we have a number of investments in the portfolio that are capable of delivering above
average returns and it is encouraging to report that three of the companies in our portfolio still have
ambitions to IPO during the next eighteen months.

As  at 30 September 2011 we had £116,000 (approximately 15% of NAV) of cash. This provides us with  the
opportunity  to  keep investing selectively at a time when we anticipate the market  will  continue  to
present the Company with a number of good value opportunities.

On the basis of our current Net Asset Value per share and cash resources, and subject to no material
deterioration in the portfolio or the economic outlook, we remain of the view that the Company is
reasonably positioned for the future and continue to actively seek good investment proposals.

Jon Pither
CHAIRMAN

PRELIMINARY FINANCIAL RESULTS

The following details are extracted from St Helen's Private Equity Plc Report and Accounts for the year
ended 30 September 2011. The Auditors, H W Fisher & Company has audited these annual results.

PROFIT & LOSS ACCOUNT
YEAR ENDED 30 SEPTEMBER 2011

                                                                                    Audited            Audited
                                                                Note                   Year               Year
                                                                                      ended              ended
                                                                                    30 Sept            30 Sept
                                                                                       2011               2010
                                                                                          £                  £
                                                                                                              
Turnover                                                                                  -              2,905
Administrative expenses                                                            (71,521)           (66,819)
Operating Loss                                                                     (71,521)           (63,914)
Exceptional profit on sale of investments                                            12,945             29,541
Other income                                                                         13,477             12,464
Amounts written off investments                                                    (50,991)              (231)
Loss on ordinary activities before                                                 (96,090)           (22,140)
Taxation                                                                                  -                  -
Loss on ordinary activities after taxation                                         (96,090)           (22,140)
                                                                                                              
                                                                                                              
Basic & diluted loss per share (pence)                           1                  (4.27)p            (0.98)p
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              

STATEMENT OF RECOGNISED GAINS AND LOSSES
YEAR ENDED 30 SEPTEMBER 2011
                                                                                    Audited            Audited
                                                                                       Year               Year
                                                                                      ended              ended
                                                                                    30 Sept            30 Sept
                                                                                       2011               2010
                                                                                          £                  £
                                                                                                              
Loss for the financial year                                                        (96,090)           (22,140)
                                                                                                              
Unrealised surplus on revaluation of investments                                     38,807             83,626
                                                                                                              
Total recognised (loss)/gain relating to the year                                  (57,283)             61,486
                                                                                                              
Basic & diluted recognised (loss)/gain per share (pence)         1                  (2.54)p              2.73p




BALANCE SHEET
AS AT 30 SEPTEMBER 2011
                                                                                   Audited           Audited
                                                                                     As at             As at
                                                                              30 Sept 2011           30 Sept
                                                                                                        2010
                                                                                         £                 £
                                                                                                            
Fixed Assets                                                                                                
Investments                                                                        648,285           712,959
                                                                                                            
Current Assets                                                                                              
Debtors                                                                              3,966             8,914
Cash at bank and in hand                                                           116,180           103,689
                                                                                                            
Creditors: Amounts Falling Due Within One Year                                    (15,634)          (15,480)
                                                                                                            
Net Current Assets                                                                 104,512            97,123
                                                                                                            
Total assets less current liabilities                                              752,797           810,082
                                                                                                            
Capital And Reserves                                                                                        
Called up share capital                                                            135,171           135,171
Share Premium Account                                                            1,190,328         1,190,328
Revaluation Reserve                                                                142,463           133,607
Profit & Loss Account                                                            (715,165)         (649,024)
                                                                                                            
Shareholders' Funds                                                                752,797           810,082


Notes

    1.  The calculation of the basic loss per share and diluted loss per share is based on the loss
        attributable to ordinary shareholders of £96,090 (2010: a loss of £22,140), divided by the weighted
        average number of shares in issue during the year. During the year no options were exercised, there is
        no potential dilution as the fair value is below the issue price.
        
        The  calculation of the basic recognised loss per share and diluted recognised loss  per  share
        is  based on the recognised loss attributable to ordinary shareholders of £57,283 (2010: a gain
        of  £61,486), divided by the weighted average number of shares in issue during the year. During
        the  year no options were exercised, there is no potential dilution as the fair value is  below
        the issue price.
        
        The weighted average number of shares used in the calculations are set out below:
        
        

                                                                                       2011               2010
                                                                           Number of shares          Number of
                                                                                                        shares
                                                                                                              
                                                                                  2,252,848          2,252,848



    2.  Full accounts for the Company for the year, which are likely to be signed shortly, will be
        posted to shareholders as soon as is practicable.
        
    3.  This financial statement does not constitute statutory accounts within the meaning of Section
        435 of the Companies Act 2006 (the "Act").

    4.  The Directors have not declared a dividend for the period.

    5.  This statement was approved by the Board of Directors on 9 December 2011.




THE DIRECTORS OF THE ISSUER ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT

ENQUIRIES:

ST HELEN'S PRIVATE EQUITY PLC           TEL: 020 7628 5582
Hamish Williams

FISHER CORPORATE PLC                    TEL: 020 7388 7000

Contact Information

  • St Helens Private Equity Plc