Hygea VCT plc
24 April 2007
Preliminary Results for the year ended 31 December 2006
Financial summary for the year ended
31 December 2006
|
31 December 2006
|
31 December 2005
|
|
|
|
Net assets
|
£4,294,000
|
£5,679,000
|
Net revenue before tax
|
£(167,000)
|
£(324,000)
|
Revenue loss per share*
|
(2.2)p
|
(4.3)p
|
Net asset value per share
|
56.8p
|
74.8p
|
* based on 7,555,017 (2005:
7,596,393) weighted average shares in issue in the year.
Chairman's statement
I am pleased to present the 2006
annual report to shareholders in Hygea VCT plc.
At 31 December 2006 the Fund had a
portfolio of 21 investments with 92.5% of net assets being represented by VCT
qualifying holdings.
In 2006 we have seen a mixture of
results from our investee companies but, as is usually the case with venture
capital funds, the poor results have impacted the overall value of the Fund's
holdings before the Fund experiences the significant uplifts that can come from
successful investments. In addition,
since a substantial number of the investments have been held for less than
three years, patience will be needed
before the anticipated gains can be realised. Whilst we will take advantage of
future investment opportunities as the availability of cash within the Fund
allows, our main strategy will be, over time, to reduce the number of holdings
in the portfolio and use the cash realised from disposals (mainly of the AIM
portfolio) to support the key investments in the unquoted portfolio through to
a listing or a trade sale. As a consequence
of this, the Board, in conjunction with Octopus, is considering significant
changes to the way the fund is managed and I expect to be writing to you with
proposals in time for them to be put to shareholders at an EGM that will be
held immediately following the AGM on 12 July 2007. We anticipate that these changes will lead to
a further significant reduction in the Fund's overall running costs, while
allowing us to gain further access to those skills that we believe will be
important in allowing us to generate significant value from the portfolio of
investments.
Investment Policy
During 2006, we made a further 3
investments in qualifying companies, taking us to the point where we finished
the year with a portfolio of investments in 21 companies, of which 11 are
quoted on AIM and 10 are unquoted.
The Board is taking an active role
in managing the portfolio. This involves
providing investee companies with advice and contacts, as well as working with
them to ensure that they achieve the progress that will be required in order
for Hygea to generate value from its investments.
Investment Environment
During 2006 and early 2007, there
have been a number of acquisitions of UK-based biotechnology companies. This
activity has been driven by the need for many pharmaceutical companies to
acquire additional compounds to add to their own pipelines of new
products. I believe that this points to
an environment in which the financial markets are likely to become more aware
of the potential upside from investing in smaller UK healthcare and biotechnology
companies.
NAV
The Net Asset Value per share
("NAV") as at 31 December 2006 was 56.8p, a decline of 18p compared with the
equivalent figure at the end of 2005.
Despite the decline in the reported value of the portfolio, many of the
portfolio companies made good progress in 2006.
In accordance with the valuation guidelines for holdings in unquoted
companies, we were able to increase the carrying value of our holdings in three
unquoted companies (Scancell Ltd, Insense Ltd and Prosurgics Ltd). However, we reduced the carrying value of our
holdings in two unquoted companies (Hallmarq Veterinary Imaging Ltd and Purely
Proteins Ltd) where progress has not been in line with our original
expectations. Many of our unquoted
holdings are still held at cost as, despite good progress in developing their
businesses, they have not yet reached a point where the valuation guidelines
permit us to write up the value of our holding.
Our holdings in companies quoted on
AIM experienced mixed fortunes during 2006.
We saw strong share price performance from several of the holdings, but
also suffered from the poor performance of a couple of others particularly Evolutec Group plc, where the share price
fell 80% following the announcement of the failure of the company's lead
product in a clinical trial. The NAV at
the end of 2006 was also negatively impacted by the requirement for us to value
our AIM-quoted holdings using the bid price, rather than the mid price. Although for most of our holdings this only
results in a fairly minor negative impact on the valuation, for holdings where
the shares tend to trade on a large spread between the buying and selling
prices, the impact can be significant.
More details on our current portfolio
are set out in the Investment Manager's Review, which follows.
As a result of the investments that
were made during 2006, the Fund only had £94,000 of cash and money market
securities at the end of 2006.
Therefore, the income that is generated for the Fund from the cash and
money market holdings will remain low for the foreseeable future. In addition, due to the nature of the
underlying investments, the income that is generated from the portfolio is expected
to be small, as few of the holdings pay dividends at present.
Share Price
The Board is aware that investors in
VCTs sometimes need to sell their shares.
As "second hand" VCT shares do not qualify for upfront income tax
relief, there tends to be few purchasers of these shares. As a result of this imbalance, the share
price has drifted to a point where at present it is some way below the
underlying NAV. Given the small size of
the Fund and its limited cash resources, the Board believes that it is preferable
to focus on generating real value from the portfolio of investee companies to
stimulate interest in the shares, rather than using the Fund's limited cash
resources to carry out share buybacks.
The Board, in common with many other
VCTs, is exploring ways through which the benefits of investing in "second
hand" VCT shares can be communicated. Meanwhile we have redeveloped our website
and shareholders are encouraged to visit the site at www.hygeavct.com to follow
progress of the portfolio.
Board
Towards the end of 2006, Mark
Andrews resigned from the Board. I would
like to take this opportunity to thank Mark for his contribution during his
time on the Board. In view of the Board's discussions about the future strategy
for the Fund, we do not believe that it is necessary to appoint a further
director at present.
VCT Qualifying Status
PricewaterhouseCoopers LLP continues
to provide the Board with advice on the ongoing compliance with HM Revenue
& Customs rules and regulations concerning VCTs. The Board has been advised that Hygea VCT is
in compliance with the conditions laid down by HM Revenue & Customs.
Outlook
During 2006, we completed the
process of investing in a portfolio of investments in both AIM-quoted and
unquoted companies. We also made
substantial progress in reducing the Fund's cost base. We now have a strong base from which to build
shareholder value going forwards. As
previously indicated, I expect to be writing to all shareholders shortly with
further proposals for the Fund's future development and management. I also look
forward to meeting as many shareholders as possible at our AGM on 12 July 2007.
James Otter
Chairman
23 April 2007
Investment Manager's Review
The Fund made a number of
investments during 2006 and ended the year with a portfolio of investments in a
total of 21 companies, 11 of which were quoted on AIM and 10 were
unquoted. As at 31 December 2006, the
portfolio was 43.5% invested in companies quoted on AIM, 54.3% in unquoted
companies, and 2.2% in money market securities and cash.
Review of portfolio
During 2006, the Fund made 2 new
investments in unquoted companies and increased its holdings in 4 other
unquoted companies. In addition, 1 new
investment was made into a business that is quoted on AIM. The new investments
are as follows:
- Prosurgics Ltd is a developer of robots for use in a range of surgical procedures.
- Wound Solutions Ltd has developed a product that has potential applications in the treatment of leg ulcers.
- Plethora Solutions Holdings plc is working on products that have applications in the treatment and management of certain urological disease conditions.
In the closing months of 2006,
movements in the share prices of two of the portfolio's AIM-quoted holdings
illustrated the high risk/high return characteristics of investing in
healthcare companies that are focused on drug development. In December 2006, we bought further shares in
ReNeuron Group plc at a price of 10p per share by exercising warrants that the
Fund owned. Later in the month, ReNeuron
experienced a surge in its share price to more than 40p following the
announcement of the filing of its application with the US regulators
to commence clinical trials in stroke patients with its lead stem cell product.
We took advantage of the period of volatility in the share price to sell a
proportion of the Fund's holding, generating a profit of £63,000.
Disappointingly, the value of the Fund's holding in Evolutec Group plc fell sharply following the publication of results from a clinical trial for its lead product, illustrating the abrupt change in valuation of a biotechnology company that can occur on the publication of trial results. Despite good data from previous trials, in the latest trial in patients suffering from hay fever, no significant benefits were found from using the drug.
In August 2006, following a period
of strong share price performance, we took the opportunity to dispose of the
holding in Abcam plc at a share price that was approximately 60% higher than
the price at which we had invested.
In the unquoted portfolio, we have
been pleased with the general progress that has been made by most of the
holdings. We have increased the carrying
value of three holdings where it has been possible to do so under the rules
which govern the way in which we are permitted to value the holdings in
unquoted companies. However, we have
also made significant reductions in the carrying values of two unquoted
companies to reflect the underlying performance of those businesses during
2006.
Progress in 2007
Since the end of 2006, we have made
several further adjustments to the portfolio.
The Fund has invested a further £100,000 in Prosurgics Ltd, as part of a
larger funding round. We have also sold
the remaining shares in ReNeuron Group plc, realising a further profit of
£83,000. In addition, we have disposed
of the entire holding in DawMed Systems plc and Cobra Bio-manufacturing plc. In
early April, we invested approximately £60,000 in Epistem Holdings plc, an AIM
quoted biotechnology company that is commercialising adult stem cells in the
areas of oncology and gastrointestinal diseases. Epistem also has a contract
research division that has provided services to over 65 clients.
Our ongoing challenge is to work
closely with the investee companies in order to maximise the returns that are
generated for the shareholders in the Fund.
We anticipate that we may reduce the size of certain of our holdings in
order to focus the portfolio into those holdings from which we expect to
generate the greatest returns for shareholders.
Ten largest holdings
Scancell Ltd
Scancell is a Nottingham-based
biotechnology company that is developing a pipeline of drugs to target various
types of cancer. These products are
derived from Scancell's proprietary ImmunoBody technology. During 2006, the company sold its pipeline of
antibodies to Peptech Ltd, an Australian biotechnology company, in a deal that
had a total value of up to £4.85m.
Initial investment December 2003
Cost £000's 725
Valuation as at 31.12.06 £000's 725
Basis of valuation Cost
Equity held 12.6%
Website www.scancell.co.uk
Audited Financial Information
Period
ending 30 April 2006
£000's
Sales 27
Loss before tax (716)
Retained losses (734)
Net assets 446
Wound Solutions Ltd
Wound Solutions
is working on the development of a product that has applications in the
treatment of difficult to heal wounds such as leg ulcers and foot ulcers.
There is a lack of effective treatment for patients with severe ulcers, and the
market size is estimated to be 2.5 million patients in the US and Europe.
Initial investment May 2006
Cost £000's 350
Valuation as at 31.12.06 £000's 350
Basis of valuation Cost
Equity held 3.1%
Website www.woundsolutions.com
Audited Financial Information
Period
ending 30 June 2006
£000's
Sales 0
Loss before tax (926)
Retained losses (926)
Net assets 3,330
DxS Ltd
DxS is a leading provider of genetic
analysis services to pharmaceutical companies and contract research
organisations. The company's services
include the provision of genetic testing using single nucleotide polymorphism
technology and DNA extraction and banking.
DxS's services are of particular use to pharmaceutical companies when
they are conducting clinical trials as the genomic tests can be used to help
identify groups of patients that are most likely to benefit from a particular
therapy. David Evans, who is chairman of
a number of AIM-quoted companies (including BBI Holdings plc and Epistem
Holdings plc, both Hygea investee companies) became chairman of DxS in 2006.
Initial investment April 2004
Cost £000's 326
Valuation as at 31.12.06 £000's 326
Basis of valuation Cost
Equity held 8.3%
Website www.dxsgenotyping.com
Audited Financial Information
Period
ending 30 June 2006
£000's
Sales 1,164
Loss before tax (502)
Retained losses (456)
Net assets (2,934)
ImmunoBiology Ltd
ImmunoBiology is a biotechnology
company that is focused on developing products that could have applications in
the treatment of cancer and certain infectious diseases. The company's technology is based on a recent
discovery that a group of proteins known as "heat shock proteins" has a pivotal
role in controlling the normal immune response to infections.
Initial investment November 2005
Cost £000's 300
Valuation as at 31.12.06 £000's 300
Basis of valuation Cost
Equity held 5.78%
Website www.immbio.com
Audited Financial Information
Period
ending 31 May 2006
£000's
Sales 28
Loss before tax (495)
Retained losses (495)
Net assets (163)
NeutraHealth plc
NeutraHealth is an AIM-listed
company that was established to acquire businesses operating in the
neutraceutical sector. The company
acquired Biocare Ltd, an established business in the neutraceutical sector, in
August 2005. In January 2007,
NeutraHealth announced the acquisition of Brunel Healthcare Ltd, for an initial
purchase price of £4m, with a further £1.9m payable depending on the
performance of Brunel over the next two years.
Brunel, which distributes private label and branded vitamins and
supplements through a number of outlets, including Tesco, Holland & Barrett,
Superdrug and Waitrose, had turnover of £14m in 2006.
Initial investment August 2005
Cost £000's 360
Valuation as at 31.12.06 £000's 295
Basis of valuation Bid price
Equity held 2.43%
Website
www.neutrahealthplc.com
Audited Financial Information
Period
ending 31 December 2006
£000's
Sales 8,571
Profit before tax 902
Retained losses 590
Net assets 19,492
Hallmarq Veterinary Imaging Ltd
Hallmarq is a Guildford-based
company which specialises in developing low cost magnetic resonance imaging
systems. The first application is for
equine vets to enable the diagnosis of causes of lameness in horses that are
not identifiable by any other method.
Hallmarq has installed more than 30 units at leading equine veterinary
practices and research centres around the world, and over 7,000 scans have been
carried out on horses using equipment supplied by Hallmarq. James Otter, the Chairman of Hygea, is
playing an active role at Hallmarq illustrating the way in which Hygea is able
to work in a proactive manner with its investee companies in order to ensure
that they fulfil their potential.
Initial investment August 2005
Cost £000's 735
Valuation as at 31.12.06 £000's 288
Basis of valuation Latest funding round
Equity held 7.3%
Website www.hallmarq.net
Audited Financial Information
Period
ending 31 August 2006
£000's
Sales 1,438
Loss before tax (328)
Retained losses (278)
Net assets 1,199
BioAnaLab Limited
BioAnaLab is a leader in the
provision of specialist analytical services to pharmaceutical and biotechnology
companies involved in the growing sector of biopharmaceuticals. More than 30% of all pharmaceutical products
in development are made from proteins, which present particular analytical
challenges in measuring drug levels, patient responses, and product efficacy in
order to provide product validation and satisfy the requirements of the
regulatory authorities. The company has
experienced a substantial growth in revenue since Hygea invested in the business. A key development during 2006 was the
appointment as chairman of David Oxlade, who has substantial experience leading
companies in the pharmaceutical and biotechnology sector.
Initial investment May 2005
Cost £000's 279
Valuation as at 31.12.06 £000's 279
Basis of valuation Cost
Equity held 13.9%
Website www.bioanalab.com
Audited Financial Information
Period
ending 31 October 2006
£000's
Sales 1,161
Profit before tax 98
Retained profit 98
Net assets 751
Prosurgics Ltd
Prosurgics Ltd (formerly known as
Armstrong Healthcare Ltd) is a leading image-guided surgical robotics
company. The company's PathFinder robot
enables surgeons to achieve a high level of accuracy in neurosurgery, enabling
improved patient outcomes at lower cost.
The EndoAssist is a robotic manipulator for the endoscope used in chest
and abdominal surgery. It has a unique
control system that is guided by head movement, giving the surgeon total
control at a glance.
Initial investment January 2006
Cost £000's 250
Valuation as at 31.12.06 £000's 275
Basis of valuation Latest funding round
Equity held 7.05%
Website www.prosurgics.com
Audited Financial Information
Period
ending 31 December 2005
£000's
Sales 300
Loss before tax (1,225)
Retained losses (1,133)
Net assets 213
Insense Ltd
Insense is working on the development
of an innovative product range for the wound care market. Its first product has completed clinical
trials and the second product is currently undergoing clinical evaluation. Both products are expected to be approved by
the relevant regulatory authorities in 2007 and to be launched onto the market
shortly after approval is received.
Initial investment July 2003
Cost £000's 167
Valuation as at 31.12.06 £000's 226
Basis of valuation Latest funding round
Equity held 3.12%
Website www.insense.co.uk
Audited Financial Information
Period
ending 31 December 2005
£000's
Sales 0
Loss before tax (893)
Retained losses (893)
Net assets 685
ReNeuron Group plc
ReNeuron is a leading company in the
field of cell therapies derived from stem cells. The company announced in December 2006 that
it had filed an application with the US Food & Drug Administration to
commence initial clinical trials in the US for its lead product, a stem
cell therapy for treating stroke patients. As a result of the strong share
price performance, the Fund's remaining stake was sold in early 2007.
Initial investment August 2005
Cost £000's 82
Valuation as at 31.12.06 £000's 195
Basis of valuation Bid price
Equity held 0.42%
Website www.reneuron.com
Audited Financial Information
Period
ending 31 March 2006
£000's
Sales 9
Loss before tax (6,826)
Retained losses (6,313)
Net assets 4,628
Summary of investments made by other funds managed by Octopus
Investments Ltd
It is a requirement that Octopus discloses if some of its other funds
are also invested in any of the Hygea VCT portfolio companies. Details of these
are shown below.
%
equity held by % equity held by
Company name Hygea VCT other funds
BBI Holdings plc 0.30% 3.30%
DawMed Systems plc 2.20% 1.71%
NeutraHealth plc 2.43% 1.37%
Plethora Solutions Holdings plc 0.14% 0.36%
Prosurgics Ltd 7.05% 0.68%
The above data is as at 31
December 2006.
Octopus Investments Ltd
23 April 2007
Income Statement
|
|
Year ended 31 December 2006
|
Year ended 31 December 2005
|
||||
|
|
|
|
||||
|
|
Revenue
£000's |
Capital
£000's |
Total
£000's |
Revenue
£000's |
Capital
£000's |
Total
£000's |
Realised
gain on investments
Unrealised
loss on investments
|
|
-
-
|
82
(1,199)
|
82
(1,199)
|
-
-
|
8
(123)
|
8
(123)
|
Income
Investment management fees Other
expenses
|
|
21
(21)
(167)
|
-
(61)
-
|
21
(82)
(167)
|
34
(59)
(299)
|
-
(177)
-
|
34
(236)
(299)
|
Loss on
ordinary activities before tax
|
|
(167)
|
(1,178)
|
(1,345)
|
(324)
|
(292)
|
(616)
|
Tax on
ordinary activities
|
|
-
|
-
|
-
|
-
|
-
|
-
|
Loss on
ordinary activities after tax
|
|
(167)
|
(1,178)
|
(1,345)
|
(324)
|
(292)
|
(616)
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
(2.2)p
|
(15.6)p
|
(17.8)p
|
(4.3)p
|
(3.8)p
|
(8.1)p
|
-
The
'Total' column of this statement is the profit and loss account of the company.
-
All
revenue and capital items in the above statement derive from continuing
operations.
Reconciliation of movements in
shareholders' funds
|
Year ended
31 December 2006
|
Year ended
31 December 2005
|
|
£000's
|
£000's
|
Shareholders'
funds at start of year
|
5,679
|
6,299
|
Middle
market price to bid price valuation movement
|
-
|
(4)
|
Restated
shareholders' funds at start of year
|
5,679
|
6,295
|
Loss on
ordinary activities after tax
|
(1,345)
|
(616)
|
Cost of
share buyback
|
(40)
|
-
|
Shareholders'
funds at end of year
|
4,294
|
5,679
|
Balance
Sheet
|
|
31 December 2006
|
31 December 2005
|
|
|
|
|
|
|
£000's
|
£000's
|
|
|
|
|
Fixed asset investments
|
|
4,156
|
4,428
|
Current assets
|
|
|
|
Debtors
|
|
77
|
13
|
Cash at bank
|
|
94
|
1,369
|
|
|
|
|
|
|
171
|
1,382
|
Creditors: amounts falling due within one year
|
|
(33)
|
(131)
|
|
|
|
|
Net current assets
|
|
138
|
1,251
|
|
|
|
|
Net assets
|
|
4,294
|
5,679
|
|
|
|
|
Called up equity share capital
|
|
3,765
|
3,798
|
Share premium
|
|
1,722
|
1,722
|
Special distributable reserve
|
|
1,660
|
1,700
|
Capital redemption reserve
|
|
38
|
5
|
Capital reserve - realised
|
|
(513)
|
(534)
|
- unrealised
|
|
(1,879)
|
(680)
|
Revenue reserve
|
|
(499)
|
(332)
|
|
|
|
|
Total equity shareholders' funds
|
|
4,294
|
5,679
|
|
|
|
|
Net asset value per share
|
|
56.8p
|
74.8p
|
|
|
|
|
Cash Flow Statement
|
|
Year
ended
31
December 2006
|
Year
ended
31
December 2005
|
||
|
|
£000's
|
£000's
|
£000's
|
£000's
|
|
|
|
|
|
|
Net cash outflow from operating
activities
|
|
|
(390)
|
|
(213)
|
|
|
|
|
|
|
Financial investment :
|
|
|
|
|
|
Purchase of investments
|
|
(1,068)
|
|
(3,183)
|
|
Sale of investments
|
|
223
|
|
23
|
|
Net cash outflow from financial
investment
|
|
|
(845)
|
|
(3,160)
|
|
|
|
|
|
|
Net cash outflow before
financing
|
|
|
(1,235)
|
|
(3,373)
|
|
|
|
|
|
|
Financing :
|
|
|
|
|
|
Repurchase of own shares
|
|
(40)
|
|
-
|
|
|
|
|
|
|
|
Total financing
|
|
|
(40)
|
|
-
|
Decrease in cash resources
|
|
|
(1,275)
|
|
(3,373)
|
Notes to the preliminary
announcement
Fixed asset investments
|
Unquoted
|
AIM-quoted
|
Total
|
|
investments
|
investments
|
|
Book cost as at 1 January 2006
|
2,657
|
2,451
|
5,108
|
Unrealised depreciation at 1 January 2006
|
(242)
|
(438)
|
(680)
|
|
|
|
|
Valuation at 1 January 2006
|
2,415
|
2,013
|
4,428
|
Movements
in the year:
|
|
|
|
Purchases at cost
|
945
|
123
|
1,068
|
Disposals
|
-
|
(223)
|
(223)
|
Net realised gain
|
-
|
82
|
82
|
Increase in unrealised losses
|
(398)
|
(801)
|
(1,199)
|
|
|
|
|
Valuation at 31 December 2006
|
2,962
|
1,194
|
4,156
|
Comprising:
|
|
|
|
Book cost at 31 December 2006
|
3,602
|
2,433
|
6,035
|
Unrealised appreciation at 31 December 2006
|
(640)
|
(1,239)
|
(1,879)
|
|
|
|
|
All AIM-quoted investments are in
ordinary shares with full voting rights. Unquoted investments are in ordinary
shares with full voting rights with the exception of DxS Ltd and Hallmarq
Veterinary Imaging Ltd where a proportion of the investment is held in loan
stock. Details of the investments are shown below:
|
|
|
31 December 2006
|
|
|
Cost
|
Valuation
|
|
|
£000's
|
£000's
|
Unquoted investments
|
|
|
|
BioAnaLab Ltd
|
|
279
|
279
|
DxS Ltd
|
|
30
|
30
|
|
Loan stock
|
296
|
296
|
Glide Pharmaceutical Technologies Ltd
|
|
100
|
100
|
Hallmarq Veterinary Imaging Ltd
|
|
600
|
153
|
|
Loan stock
|
135
|
135
|
ImmunoBiology Ltd
|
|
300
|
300
|
Insense Ltd
|
|
167
|
226
|
Prosurgics Ltd
|
|
250
|
275
|
Purely Proteins Ltd
|
|
370
|
93
|
Scancell Ltd
|
|
725
|
725
|
Wound Solutions Ltd
|
|
350
|
350
|
|
|
3,602
|
2,962
|
AIM-quoted investments
|
|
|
|
Angel Biotechnology Holdings plc
|
|
750
|
79
|
BBI Holdings plc
|
|
74
|
120
|
Cobra Bio-manufacturing plc
|
|
125
|
62
|
DawMed Systems plc
|
|
101
|
34
|
Evolutec Group plc
|
|
347
|
43
|
NeutraHealth plc
|
|
360
|
274
|
Phoqus Group plc
|
|
150
|
110
|
Plethora Solutions Holdings plc
|
|
83
|
69
|
ReNeuron Group plc
|
|
93
|
195
|
Stem Cell Sciences plc
|
|
250
|
113
|
York Pharma plc
|
|
100
|
95
|
|
|
2,433
|
1,194
|
|
|
6,035
|
4,156
|
The above summary of results for the
year ended 31 December 2006 does not constitute statutory financial statements
within the meaning of section 240 of the Companies Act 1985 and has not been
delivered to the Registrar of Companies.
Statutory financial statements will
be filed with the Registrar of Companies in due course; the auditors report on
those financial statements under S235 of the Companies Act 1985 is unqualified and
does not contain a statement under S237 (2) or (3) of the Companies Act 1985.
A copy of the full annual report and
financial statements for the year ended 31 December 2006 is expected to be
posted to shareholders shortly and will be available to the public at the
registered office of the company at 8
Angel Court, London, EC2R 7HP.
ENDS