Half-yearly Report
Matrix Income & Growth 4 VCT plc
Half-yearly report for the six months ended 31 July 2007
28 September 2007
Investment objective
The objective of Matrix Income & Growth 4 VCT plc ("the Company")
is to provide shareholders with an attractive investment return, principally
by maximising the stream of dividend distributions from the income and capital
gains generated by a portfolio of investments in a wide variety of unquoted
companies in the UK.
The portfolio comprises a number of diverse investments over a wide
range of different business sectors, thus spreading risk by avoiding
over-concentration in any one sector.
Key data
31 July 2007 31 July 2006 31 January Change
2007
(restated) since the
(audited) year-end
(%)
Net asset value per share (p) 118.69 113.61 116.34 2.02
Share price (p)1 100.50 85.00 91.00 10.44
Discount (%) 15.33 25.18 21.78 (29.61)
Cumulative dividends paid (p) 10.70 8.90 8.90 20.22
Total return since launch per 129.39 122.51 125.24 3.31
share (p)2
Net assets (£'000) 24,534 9,741 9,772 151.06
1 Source: London Stock Exchange
2 Net Asset Value (NAV) per share plus cumulative dividends to date
Information at 31 July 2006 has been restated to incorporate the
restructuring of the share capital that occurred on 18 October 2006 under
which all existing Shareholders received one Ordinary Share of 1 penny for
every two Ordinary Shares of 5 pence held before the restructuring.
Chairman's Statement and Management Report
I am pleased to present the Half-Yearly Report for the six months ended 31
July 2007 - the first half-yearly report in its new form as a single manager
VCT.
The early part of this period was, inevitably, dominated by the
Offer for Subscription by the Company. The latter part was overshadowed by the
debt and stock market turmoil. I will comment in more detail about these two
events below.
Net asset value
At 31 July 2007, the Company's Net Asset Value (NAV) per share was
118.69 pence per Ordinary 1p Share (including current year income) (31 Jan
2007: 116.34 pence per Ordinary 1p Share). Net Assets rose by 151.06% from
£9.8 million to £24.5 million since the year-end, most of which can be
attributed to the Offer for Subscription.
Economic and stock market background
At the end of the six-month period ended 31 July 2007, stock
markets around the world have been dominated by the difficulties in the US
sub-prime mortgage market. Since the period-end, this has resulted in
considerable stock market turmoil with sharp daily index swings mostly amidst
heavy turnover. Whilst the worst of the turmoil may be over in the short term,
there can be no certainty that further falls in these stock markets will not
be seen in the near future.
In the UK during the period, the FTSE 100 Index rose 4.54% and the
FTSE All-Share Index rose 4.27% with the AIM Index rising by 11.37%. However,
at the time of writing this Report, following the stock market turmoil, these
rises have been almost entirely eroded. At this time, the effect of the very
small number of AIM stocks in the portfolio has been beneficial.
On the investment side generally, there is still no shortage of
equity and debt providers looking for good prospects. Competition to finance
such situations continues to remain relatively strong, although hopefully more
of these providers will become more discerning or cautious. The Investment
Manager continues to be wary of some high valuations being placed on
businesses in the current market, but still remains confident of sourcing good
quality investments.
The portfolio
When considered by stage of development, the portfolio is dominated
by investments in management buy-out situations ("MBOs"), which continues to
rise, at some 71.93% with 24.25% invested in development capital companies and
the remaining 3.82% of the portfolio being invested in AIM stocks and early
stage investments. Following the recent change in investment strategy, the
portfolio continues to invest in a wider range of market sectors with the
largest of those being support services at 38.43%. Consumer services at 18.01%
is the next largest investment sector. This spread of investments reflects the
current investment strategy of spreading risks whilst trying to maintain a
steady, if not increasing, dividend yield.
Some new investments have been made since my last report. A new
investment of £1 million was made in July 2007 into Digico Europe Limited, a
manufacturer of digital sound mixing consoles for the live performance,
theatre, post production and broadcast markets. After the period end a further
investment of £445,506 was made into Blaze Signs Holdings Limited, an existing
investee company, to acquire a complementary business, Active Sign Maintenance
Limited.
In April 2007, Maven Management Limited was sold to Munro Global
Limited. The cash proceeds from this disposal were £429k with the loan stock
of £171k to be re-paid in three tranches dependent on turnover over the next
three years.
Within the former Elderstreet portfolio, a purchase of 4,864 shares
of Mobile & Wireless Group Limited was made in February 2007. This company
then changed its name to Expansys plc on 13 March 2007 prior to a listing on
AIM on 11 April 2007.
During the period small additional purchases were made into Higher
Nature plc, BBI Holdings plc, Sectorguard plc and VSI Limited.
It is worth commenting again that the Company now holds only a small number of
relatively early stage AIM quoted stocks as the Investment Manager's focus is
on investments that finance the management buyouts of privately owned
companies.
Revenue Account
At 31 July 2007, distributable revenue reserves were £240,367,
representing 1.37 pence per share. The total return per share in the period
ended 31 July 2007 was 4.06 pence (7.15 pence in the period ended 31 July
2006).
Dividend
The Board proposes to declare an interim dividend of 0.75 pence per
share for the period ended 31 July 2007, payable on 8 November 2007 to
shareholders on the register on 12 October 2007, and hopes to be able to
propose a further dividend for the year ended 31 January 2008.
Offer for Subscription by the Company
The Offer for Subscription under the Securities Note to raise up to
£20m for MIG 4 was launched in November 2006. The reaction from independent
commentators and the leading IFAs was positive, and I am pleased to report
that the Offer for Subscription closed on 5 April 2007 having issued
13,006,193 New Ordinary Shares at an average price of approximately 120.86
pence per share and having raised £15.7 million before costs. This outcome is
particularly pleasing as the Company has more than doubled its size and by so
doing has increased its potential for capital gains going forward.
Share buy-backs
During the period ended 31 July 2007 the Company continued to
implement its buy-back policy and bought back 734,589 of the Company's
Ordinary Shares (representing 3.55% of the shares in issue at the period end)
at a total cost of £661,410 (net of expenses). These shares were subsequently
cancelled by the Company.
This has been a busy period for the Board and the Company. Most
importantly, your Board continues to be pleased with the progress that the
portfolio is making, particularly given the current financial background. It
is encouraging that the Company has managed to increase its net assets per
share whilst in the background stock markets around the globe have been
falling sharply. We look forward with confidence to the opportunities
potentially being offered from investing the larger pool of funds.
Colin Hook
Chairman
12 September 2007
Responsibility Statement
The Directors confirm that to the best of their knowledge:
(a) the condensed set of financial statements, which has been
prepared in accordance with the applicable set of accounting standards, gives
a true and fair view of the assets, liabilities, financial position and profit
or loss of the Company, as required by Disclosure & Transparency Rule 4.2.4;
and (b) the interim management report includes a fair review of the
information required by Disclosure & Transparency Rule 4.2.7- 8 in accordance
with Disclosure & Transparency Rule 4.2.10.
Investment Portfolio Summary
as at 31 July 2007
Total
Additional
cost at Total Investments Total Percentage Percentage
valuation in the valuation of
31 July at 31 Jan at 31 of equity portfolio
07 07 period July 07 held by value
£ £ £ £ % %
Matrix Private
Equity Partners LLP
Youngman Group
Limited 500,026 1,372,182 - 1,563,627 4.29% 19.01%
Manufacturers of
ladders and access
towers
Higher Nature plc 500,127 1,574,137 127 1,431,139 10.69% 17.40%
Supplier of
mineral, vitamin
and food resources
DiGiCo Europe
Limited 1,000,000 - 1,000,000 1,000,000 6.52% 12.16%
Design and
manufacture of
audio mixing desks
PXP Holdings
limited (Pinewood
Structures) 584,088 584,088 - 584,088 4.98% 7.10%
Designer,
manufacturer and
supplier of timber
frames for
buildings
Stortext FM Limited 631,719 375,968 69,899 445,867 4.60% 5.42%
Software based
solutions for
document management
Ministry of Cake
Limited 328,720 325,635 - 418,096 5.60% 5.08%
Manufacturer of
frozen cakes and
desserts
Racoon
International
Limited 406,805 406,805 - 406,805 5.70% 4.95%
Supplier of hair
extensions, hair
care products and
training
Tottel Publishing
Limited 235,200 375,664 - 383,087 6.27% 4.66%
Publisher of
specialist legal
and taxation titles
VSI Limited 177,217 177,213 4 326,370 4.56% 3.97%
Provider of
software for CAD
and CAM vendors
British
International
Holdings Limited 250,000 250,000 - 276,504 2.50% 3.36%
Operator of
helicopter services
Pastaking Holdings
Limited 133,055 133,055 - 243,096 2.10% 2.96%
Manufacturer and
supplier of fresh
pasta meals
Blaze Signs
Holdings Limited 164,510 164,510 - 239,654 4.63% 2.91%
Manufacturer and
installer of signs
Campden Media 152,620 154,040 - 153,650 1.69% 1.87%
Limited
Magazine publisher
and conference
organiser
SectorGuard plc1 150,102 160,714 102 117,926 1.38% 1.43%
Manned guarding,
patrolling and
alarm response
services
Munro Global
Limited 171,381 - 171,381 114,254 - 1.39%
Marketing services
group
Vectair Holdings
Limited 100,000 100,818 - 105,342 2.14% 1.28%
Designer and
distributor of
washroom products
BBI Holdings plc1 57,675 81,034 147 103,470 0.14% 1.26%
Gold conjugate for
the medical
diagnostics
industry
BG Consulting Group
Limited/Duncary 4 See note 3
Limited 230,796 52,383 - 51,371 below 0.62%
Provider of
financial training
services
Inca Interiors
Limited 350,000 50,000 - 50,000 14.75% 0.61%
Designer, supplier
and installer of
contract kitchens
Maven Management
Limited - 482,206 - - - 0.00%
Market research
agency
Other investments
in portfolio2 333,805 - - - - 0.00%
------ ------ ------ ------ ------ ------
Total 6,457,846 6,820,452 1,241,660 8,014,346 97.44%
Former Elderstreet
Private Equity
Limited Portfolio
Expansys plc1 31,001 65,773 4,872 150,154 0.58% 1.83%
(Formerly Mobile &
Wireless Group
Limited)
Online retailer of
digital services
Cashfac Limited 260,101 33,163 - 34,666 3.42% 0.42%
Provider of virtual
banking application
software
Sparesfinder
Limited 250,000 25,683 - 25,683 2.19% 0.31%
Supplier of
industrial spare
parts on-line
software vendor
Other investments
in the portfolio2 898,062 - - - 0.00%
------ ------ ------ ------ ------ ------
Total 1,439,164 124,619 4,872 210,503 - 2.56%
------- ------ ------ ------ ------ -------
Investment
Managers' totals 7,897,010 6,945,071 1,246,532 8,224,849 100.00%
===== ===== ===== ===== ===== =====
1 Quoted on AIM
2 Other investments in the portfolio comprises those investments that have
been valued at nil and from which the Directors only expect to receive small
recoveries ie FH Ingredients Limited (of which the principal operating
subsidiary, FHL Realisations Limited is in administration) and Letraset
Limited in the MPEP portfolio and ComponentSource Holding Corporation,
Sapphire International Limited (in liquidation), Sift Group Limited and
Shopcreator plc in the former Elderstreet portfolio.
3 The % of equity held in BG Consulting Group Limited is 2.6% and in Duncary 4
Limited is 6.64%.
Investment Managers' Review
Since appointment as sole investment manager, MPEP has continued
its approach of investing in established, profitable companies, principally by
way of Management Buy Outs ("MBOs"). The rate at which we have made new
investments has slowed considerably, particularly compared to the rate seen in
the comparable period in 2006. Competition for transactions has increased
markedly. This has in part been driven by the amount of debt and equity
funding available to companies, which has led to inflation in purchase prices.
We have also been offered a greater number of lower quality transactions. We
have therefore been adopting a highly selective and cautious approach towards
new investment in the current environment.
In early July an investment of £1 million was completed as part of
the MBO of Digico Europe Limited, the global market leading manufacturer of
digital sound mixing consoles for the live performance theatre,
post-production and broadcast markets. Two further investment opportunities
have also been agreed and are proceeding through diligence and contract
negotiations.
In April, Maven Management was sold to Munro Global, an acquisitive
marketing services business; for its 33% shareholding MIG 4 received cash
proceeds of £429k and may receive further payments of up to £171k on
achievement of specified revenue levels in future years. This compared with
the most recent valuation of £482k at 31 January 2007.
At 31 July 2007, the MPEP-invested portfolio comprised investments
in 21 companies at an aggregate cost of £6.5 million and is valued at that
date, in accordance with International Private Equity & Venture Capital
Valuation ("IPEVCV") guidelines, at £8.0 million, an uplift of 24%. Four
companies have moved from cost to a discounted earnings valuation since the
beginning of the period, and all have shown an increase, generally reflecting
performance in line with our expectations at the time we made our investment.
Amongst these newer investments, of particular note has been the
strong trading experienced by both Blaze Signs and PastaKing, the former
seeing growth from its major retail customers and the latter benefiting from
the increasing trend towards healthy eating in schools and colleges.
Additionally, British International has recently been successful in gaining
offshore work for its helicopter fleet and is in the midst of its busy summer
period, and Vectair is showing impressive revenue and profit growth in Europe
for its range of air fresheners and toiletry products, and is also expanding
into the USA. Other, longer-standing investments including Youngman Group, BBI
Holdings and Higher Nature, have again reported impressive results. However,
Inca, Stortext FM and Letraset continue to suffer from disappointingly low
revenues.
MPEP also manages seven investments made by a previous manager,
which were valued at £125k as at 31 January 2007. One of these investments,
Expansys Plc (formerly Mobile & Wireless Group), floated on AiM in April 2007,
and its valuation during the period has increased from £66k to £150k. Of the
other investments, Cashfac is showing encouraging progress.
Whilst unquoted companies are not immune from the wider economic
environment and the recent increases in interest rates, we remain encouraged
by the overall performance of the portfolio and have recently seen potential
for some early realisations of newer investments.
Unaudited Income Statement
(incorporating the Revenue Account of the Company for the six
months ended 31 July 2007)
Six months ended 31 July 2007 Six months ended 31 July 2006
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £
Notes
Unrealised gains on investments held at fair
value - 686,833 686,833 - 449,680 449,680
Realised (losses)/gains on investments held at
fair value - (53,625) (53,625) - 162,708 162,708
Income 5 477,065 - 477,065 170,767 - 170,767
Investment management fees 3 (59,109) (177,327) (236,436) (13,641) (40,924) (54,565)
Other expenses (161,902) - (161,902) (109,426) - (109,426)
----------------------------------------------------------------
Return on ordinary activities before taxation 256,054 455,881 711,935 47,700 571,464 619,164
Taxation on ordinary activities 6 (15,687) 15,687 - (3,101) 3,101 -
----------------------------------------------------------------
Return attributable to equity shareholders 240,367 471,568 711,935 44,599 574,565 619,164
====== ====== ====== ====== ====== ======
Return per share (basic and diluted) 7 1.37p 2.69p 4.06p 0.52p 6.63p 7.15p
Year ended
31 January 2007
(audited)
Revenue Capital Total
Notes £ £ £
Unrealised gains on investments held at fair value - 601,177 601,177
Realised (losses)/gains on investments held at fair value - 270,668 270,668
Income 5 354,141 - 354,141
Investment management fees 3 (32,072) (96,215) (128,287)
Other expenses (288,581) - (288,581)
------------ ------------ ------------
Return on ordinary activities before taxation 33,488 775,630 809,118
Taxation on ordinary activities 6 (3,119) 3,119 -
------------ ------------ ------------
Return attributable to equity shareholders 30,369 778,749 809,118
====== ====== ======
Return per share (basic and diluted) 7 0.35p 9.06p 9.41p
The total column of the Income Statement is the profit and loss
account of the Company. There were no other gains and losses in the six months
ended 31 July 2007, or the comparative periods.
No operations were acquired or discontinued in the period.
The operations of the Company are wholly in the United Kingdom.
Dividends paid
Six months to 31 July 2007 Six months to 31 July 2006
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £
Final dividend
paid for the
year ended 31
January 2006 of
0.5(restated)
pence per
Ordinary Share
paid 7 June 2006 - - - 43,222 - 43,222
Interim dividend
for the year
ended 31 January
2007 of 1.8
(restated) pence
per Ordinary
Share paid 26
October 2006 153,988 - 153,988 - - -
==== ==== ===== ==== ==== =====
153,988 - 153,988 43,222 - 43,222
Year to 31 January 2007
(audited)
Revenue Capital Total
£ £ £
Final dividend paid for
the year ended 31
January 2006 of
0.5(restated) pence per
Ordinary Share paid 7
June 2006 43,572 - 43,572
Interim dividend for the
year ended 31 January
2007 of 1.8 (restated)
pence per Ordinary Share
paid 26 October 2006 - - -
==== ==== =====
43,572 - 43,572
Unaudited Balance Sheet
as at 31 July 2007
31 July 2007 31 July 2006 31 January 2007
(unaudited) (unaudited) (audited)
Notes £ £ £
Non-current assets
Investments at fair value 9 8,224,849 6,654,123 6,945,071
Current assets
Debtors and prepayments 115,754 76,202 223,072
Investments at fair value 10 16,349,280 1,949,526 694,526
Cash at bank - 1,170,317 2,040,442
------------ ------------ ------------
16,465,034 3,196,045 2,958,040
Creditors: amounts falling due within one year (156,273) (109,094) (130,963)
------------ ------------ ------------
Net current assets 16,308,761 3,086,951 2,827,077
------------ ------------ ------------
Net assets 24,533,610 9,741,074 9,772,148
------------ ------------ ------------
Capital and reserves 11
Called up share capital 206,710 857,434 83,994
Share premium reserve 14,739,562 - -
Capital Redemption Reserve 878,111 97,325 870,765
Capital reserve - unrealised 530,010 (717,371) 150,383
Special reserve 15,582,836 16,415,149 16,248,945
Capital reserve - realised (7,643,986) (7,072,357) (7,735,927)
Revenue reserves 240,367 160,894 153,988
------------ ------------ ------------
Equity shareholders' funds 24,533,610 9,741,074 9,772,148
====== ====== ======
Net asset value per share 8 118.69p 113.61p 116.34p
These Interim accounts were approved and authorised for issue by the Board of
Directors on 12 September 2007.
Unaudited Reconciliation of Movements in Shareholders' Funds
for the six months ended 31 July 2007
Six months ended Six months ended Year ended
31 July 2007 31 July 2006 31 January 2007
(unaudited) (unaudited) (audited)
£ £ £
Opening Shareholders' Funds 9,772,148 9,286,678 9,286,678
Net share capital
subscribed/(bought back) 14,203,515 (121,546) (280,076)
Return for the period
before dividends 711,935 619,164 809,118
Dividends paid (153,988) (43,222) (43,572)
------------ ------------ ------------
Closing Shareholders' Funds 24,533,610 9,741,074 9,772,148
====== ====== ======
Unaudited Statement of Cash Flow for the six months ended 31 July 2007
Six months ended Six months ended Year ended
31 July 2007 31 July 2006 31 January 2007
(unaudited) (unaudited) (audited)
Notes £ £ £
Operating activities
Total return on activities before taxation 711,935 619,164 809,118
Unrealised (gains) on investments held at fair value (686,833) (449,680) (601,177)
Realised (gains) on investments held at fair value 53,625 (162,708) (270,668)
(Increase)/decrease in debtors (46,670) (7,881) (1,615)
Increase/(decrease) in creditors 43,520 (22,284) (188,020)
Transaction costs charged to capital (74) (2,394) (3,084)
Other non cash movements (69,899) - -
------------ ------------ ------------
Net cash inflow/(outflow) from operating activities 5,604 (25,783) (255,446)
Investing activities
Sale of investments 9 428,655 755,886 1,716,004
Purchase of investments 9 (1,005,252) (808,435) (1,799,354)
------------ ------------ ------------
Acquisitions and disposals (576,597) (52,549) (83,350)
Cash outflow before financing and liquid resource
management (570,993) (78,332) (338,796)
Financing
Equity dividends paid - (43,222) (43,572)
Share capital subscribed 14,869,624 - -
Purchase of own shares (694,948) (247,247) (217,320)
Payment to Ordinary Shareholders - - (153,988)
------------ ------------ ------------
14,174,676 (290,469) (414,880)
Management of liquid resources
(Increase)/decrease in monies held in money market funds (15,654,754) 89,389 1,344,389
------------ ------------ ------------
(Decrease)/increase in cash (2,051,071) (279,412) 590,713
====== ====== ======
Reconciliation of net cash flow to movement in net funds
(Decrease)/increase in cash for the period (2,051,071) (279,412) 590,713
Net funds at the start of the period 2,040,442 1,449,729 1,449,729
------------ ------------ ------------
Net funds at the end of the period (10,629) 1,170,317 2,040,442
====== ====== ======
Notes to the Unaudited Financial Statements
1. Principal accounting policies
The following accounting policies have been applied consistently
throughout the period. Full details of principal accounting policies will be
disclosed in the Annual Report.
a) Basis of accounting
The unaudited interim results cover the six months to 31 July 2007
and have been drawn up in accordance with applicable accounting standards and
adopting the accounting policies set out in the statutory accounts for the
year ended 31 January 2007, and the Accounting Standard Board's statement on
half-yearly Financial Reports (2007).
b) Investments
Investments are recognised on a trade date basis. All investments
held by the Company are classified as "fair value through profit and loss", in
accordance with the International Private Equity Venture Capital Valuation
(IPEVCV) guidelines published in 2005. For investments actively traded in
organised financial markets, fair value is generally determined by reference
to Stock Exchange market quoted bid prices at the close of business on the
balance sheet date.
Unquoted investments are stated at fair value by the Directors in
accordance with the following rules, which are consistent with the IPEVCV
guidelines:
(i) Recent investments which have been made in the last 12 months
are at fair value which, unless another methodology gives a better indication
of fair value, will be at cost.
(ii) Investments in companies at an early stage of their
development are valued at fair value which, unless another methodology gives a
better indication of fair value, will be at cost.
(iii) Where investments have been held for more than twelve months
or gone beyond the stage in their development in (i) or (ii) above, the shares
may be valued at, by applying a suitable price-earnings ratio to that
company's historic, current or forecast earnings (the ratio used being based
on a comparable listed company or sector but the resulting value being
discounted to reflect lack of marketability). Where overriding factors apply,
alternative methods of valuation will be used. These will include the
application of a material arms length transaction by an independent third
party, cost, cost less provision for impairment, discounted cash flow, or a
net asset basis;
(iv) Where a value is indicated by a material arms-length
transaction by a third party in the shares of a company, this value will be
used.
(v) Where fair value cannot be reliably measured under notes 1 b)
i-iv above, an investment is held at the most recent carrying value, reduced
where there is evidence of impairment by the estimated extent of impairment.
Capital gains and losses on investments, whether realised or
unrealised, are dealt with in the capital reserve - realised and unrealised
respectively, and shown in the Income Statement.
Although the Company holds more than 20% of the equity of certain
companies, it is considered that the investments are held as part of an
investment portfolio. Accordingly, and as permitted by FRS 9 `Associate and
Joint Ventures', their value to the Company lies in their marketable value as
part of that portfolio. It is not considered that any of our holdings
represents investments in associated companies.
2. All revenue and capital items in the above Income Statement
derive from continuing operations.
3. In accordance with the policy statement published under
"Management and Administration" in the Company's prospectus dated 8th February
1999, the Directors have charged 75% of the investment management expenses to
the capital account. This is in line with the Board's expectation of the
long-term split of returns from the investment portfolio of the Company.
4. Earnings for the six months to 31 July 2007 should not be taken
as a guide to the results for the full year.
5. Income
Six months ended Six months ended Year ended
31 July 2007 31 July 2006 31 January 2007
(unaudited) (unaudited) (audited)
Income from investments £ £ £
Dividends 31,527 40,020 79,180
Money-market funds 256,752 44,258 87,290
Loan stock interest 177,862 85,917 184,335
Bank deposit interest 10,924 572 3,336
------------ ------------ ------------
Total Income 477,065 170,767 354,141
======== ======== ========
6. The tax charge for the period has been reduced by the
utilisation of tax losses brought forward from previous periods.
7. Earnings and return per share
The basic earnings, revenue return and capital return per share
shown below for each period are respectively based on numerators i)-iii), each
divided by the weighted average number of shares in issue in the period - see
iv) below:
Six months ended Six months ended Year ended
31 July 2007 31 July 2006 31 January 2007
(unaudited) (unaudited and (audited)
restated)
£ £ £
i) Total earnings after taxation 711,935 619,164 809,118
Basic earnings per share (pence) 4.06p 7.15p 9.41p
ii) Net revenue from ordinary activities after taxation 240,367 44,599 30,369
Revenue return per share (pence) 1.37p 0.52p 0.35p
iii) Capital gain 471,568 574,565 778,749
Capital gain/(loss) per share (pence) 2.69p 6.63p 9.06p
------------- ------------- -------------
iv) Weighted average number of shares in issue in the
period 17,548,791 8,661,549 8,594,860
------------- ------------- -------------
8. Net asset value per share
As at As at As at
31 July 2007 31 July 2006 31 January 2007
(unaudited) (unaudited and (audited)
restated)
£ £ £
Net assets 24,533,610 9,741,074 9,772,148
Number of shares in issue as at 31 July 2007 20,670,941 8,574,340 8,399,337
Net asset value per share (pence) 118.69p 113.61p 116.34p
9. Summary of non-current asset investment at fair value during the
current period
Unlisted
or traded Preference Qualifying
Traded on AIM on OFEX Shares loans Total
£ £ £ £ £
Cost/valuation at 31 January 2007 241,748 3,914,722 18,901 2,769,700 6,945,071
Purchases at cost 250 391,524 435 854,323 1,246,532
Sales - proceeds - (600,036) - - (600,036)
- realised losses - (53,551) - - (53,551)
Unrealised (losses)/gains (20,602) 714,858 (1,667) (5,756) 686,833
----------- ----------- ----------- ----------- -----------
Cost/valuation at 31 July 2007 221,396 4,367,517 17,669 3,618,267 8,224,849
Book cost at 31 July 2007 207,778 3,443,178 120,198 4,125,856 7,897,010
Unrealised gains/(losses) at 31 July 2007 13,618 924,340 (102,529) (476,800) 358,629
Permanent impairment of investments - - - (30,790) (30,790)
----------- ----------- ----------- ----------- -----------
221,396 4,367,518 17,669 3,618,266 8,224,849
Gains on investments - 253,655 - - 253,655
Less amounts recognised as unrealised
gains in previous years - (307,206) - - (307,206)
Realised losses based on carrying value
at 31 January 2007 - (53,551) - - (53,551)
Net movement in unrealised appreciation
in the period (20,602) 714,858 (1,667) (5,756) 686,833
----------- ----------- ----------- ----------- -----------
(Losses)/gains on investments for the
period ended 31 July 2007 (20,602) 661,307 (1,667) (5,756) 633,282
======= ======= ======= ======= =======
a) Purchases of investments above include deferred consideration of
£171,381 and capitalised loan interest arrears totalling £241,280 settled
other than by direct cash payment. Deducting this amount from purchases above
leaves acquisitions of £1,005,252 as shown in the cash flow statement.
b) Sale proceeds above include £171,381 received in the form of a
loan stock instrument, which has been included as an unrealised gain for the
period within the unrealised capital reserve in note 11. Deducting this sum
from sale proceeds above leaves disposal proceeds of £428,655 as shown in the
cash flow statement.
c) Realised losses in the period were £53,625, as reported in the
Income Statement. This figure is after adding transaction costs of £74
incurred in the period to realised losses of £53,551 as above.
10. Current asset investments at fair value
These comprise investments in 6 Dublin based OEIC money market
funds managed by Royal Bank of Scotland, Blackrock (formerly Merrill Lynch),
Goldman Sachs, Barclays Global Investors, Scottish Widows Investment
Management and Fidelity Investment Management. £16,214,958 (31 July 2006:
£1,528,223, 31 January 2007: £563,685) of this sum is subject to same day
access, whilst £134,322 (31 July 2006: £421,303, 31 January 2007: £130,841) is
subject to 2 day access.
11. Movement in reserves
Called up Share Capital Unrealised
share Premium Redemption capital Special
capital Reserve Reserve reserve reserve
£ £ £ £ £
At 31 January 2007 83,994 - 870,765 150,383 16,248,945
Shares issued 130,062 14,739,562 -
Shares bought back (7,346) 7,346 (666,109)
Profit for the period - - 686,833 -
Realisation of previously unrealised appreciation - - (307,206) -
Dividend - interim paid for year ended 31 January 2007 - - - -
------ ------ ------ ------ ------
At 31 July 2007 206,710 14,739,562 878,111 530,010 15,582,836
Realised
capital Revenue
reserve reserve Total
£ £ £
At 31 January 2007 (7,735,927) 153,988 9,772,148
Shares issued - - 14,869,624
Shares bought back (666,109)
Profit for the period (215,265) 240,367 711,935
Realisation of previously unrealised appreciation 307,206 - -
Dividend - interim paid for year ended 31 January 2007 - (153,988) (153,988)
------ ------ ------
At 31 July 2007 (7,643,986) 240,367 24,533,610
12. The financial information for the six months ended 31 July 2007
and 31 July 2006 has not been audited. The information for the year ended 31
January 2007 does not comprise full financial statements within the meaning of
Section 240 of the Companies Act 1985. The financial statements for the year
ended 31 January 2007 have been filed with the Registrar of Companies. The
auditors have reported on these financial statements and that report was
unqualified and did not contain a statement under Section 237(2) of the
Companies Act 1985.
Copies of the Half-Yearly Report are being sent to all
shareholders. Further copies are available from the Company's registered
office.
Contact details for further enquiries:
Robert Brittain of Matrix-Securities Limited (the Company
Secretary) on 020 7925 3300 or by e-mail on mig4@matrixgroup.co.uk.
Matrix Private Equity Partners LLP (the Investment Manager), on 020
7925 3300 or by e-mail on info@matrixpep.co.uk
Director's Initials ................................
Tuesday, 4th June 2024
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