Half-year Report

RNS Number : 2946I
Maven Income & Growth VCT 4 PLC
26 August 2016
 

Maven Income and Growth VCT 4 PLC

 

Interim Results for the Six Months Ended 30 June 2016 (Unaudited)

 

The Directors announce the unaudited interim results for the six months ended 30 June 2016.

 

Highlights

 

·       NAV total return of 140.53p per share at 30 June 2016, compared to 140.16p at 31 December 2015

·       NAV at 30 June 2016 of 98.33p per share after payment of the final dividend of 3.05p per share

·       New investment completed in The GP Service (UK)

·       Exit from Dantec Hose, generating a total return multiple of 2.1 times cost

·       Interim dividend declared of 2.20p per share (2015: 2.20p)

 

Overview

 

In the period under review NAV total return increased to 140.53p per share. This is in line with your Company's continuing objective of delivering long term capital appreciation whilst also generating a maintainable level of income for Shareholders.

 

Your Board and the Manager recognise the importance of dividends to Shareholders and, following the profitable realisations achieved in the period, the Board is pleased to declare an interim dividend of 2.20p per share for the period to 30 June 2016.

 

The portfolio now extends to more than 60 private and AIM quoted company holdings, many of which are paying a regular yield, offering a combination of income and revenue returns with the aim of underpinning Shareholder value in the years ahead. 

 

During the reporting period Maven has focused on the practical implementation of the new VCT rules, which were enacted in November 2015 and detailed in the latest Annual Report. The revised legislation brings the UK VCT scheme into line with European Union (EU) State Aid Rules for smaller company investment and imposes a number of restrictions on the types of transactions and companies which VCTs are able to invest in, specifically prohibiting participation in management buy-outs or acquisitions, and supporting older companies unless certain criteria are met. Whilst this means that your Company can no longer finance certain transactions, the investment team has a strong track record of investing development capital in companies which meet the revised VCT qualification criteria.

 

Dividends

 

The Board has declared an interim dividend of 2.20p per Ordinary Share, comprising 0.6p of revenue and 1.6p of capital, to be paid on 30 September 2016 to Shareholders on the Register at 2 September 2016. Since the Company's launch, and after receipt of the interim dividend, holders of Ordinary Shares will have received 44.4p per share in tax-free dividends. The effect of paying the dividend will be to reduce the NAV of the Company by the total cost of the distribution.

 

On 24 August 2015 the Board announced that, under the Terms and Conditions of the Company's Dividend Investment Scheme (DIS), the Directors had resolved that, in light of the investment restrictions proposed in the Government's July 2015 Budget, the DIS was to be suspended with immediate effect. This would allow the Directors and the Manager to review the changes to the VCT legislation and to consider the potential impact of these on the Company's future investment strategy. As a result, until further notice, all future dividends will be paid to Shareholders by either cheque or direct bank transfer using existing mandate instructions.

 

Portfolio Developments

 

The private equity portfolio has generally performed well, with positive trading results having led to valuation uplifts for a number of companies operating across a range of sectors. The Board has, however, elected to take provisions against the values of certain investments in businesses with an exposure to the oil & gas sector.

 

Nenplas, a manufacturer and distributor of plastic extrusions for a variety of manufacturing applications, has continued to perform ahead of plan due to operational efficiencies achieved through the integration of Polyplas, increased sales volumes, lower raw material costs and favourable market conditions particularly within the leisure and mobile home sectors. The company has repaid all of its senior debt and remains a highly cash generative and valuable portfolio asset.

 

 

Cursor Controls, a global leader in the design and niche manufacture of trackball pointing solutions for industrial applications, has performed well since Maven clients invested in July 2015. The business delivered impressive organic growth in the year to 31 December 2015 and is forecast to build on this in the current year. In April 2016 Cursor completed the acquisition of a Belgian distributor, which is expected to be significantly earnings enhancing.

 

The year to 31 December 2015 was another excellent trading period for John McGavigan, a manufacturer and supplier of technical plastic components and interior parts for the global automotive industry. The first quarter of 2016 has continued this positive trend, with further organic growth in both China and Scotland, enhanced by the benefits of a number of productivity improvement projects. The order book remains strong, providing increased visibility of future revenues for the business.

 

Crawford Scientific, a leading supplier of chromatography products and services, has traded ahead of plan since Maven clients' initial investment in August 2014. During 2015 the business acquired and successfully integrated analytical services company Hall Analytical Laboratories which, alongside strong trading within the core Crawford business, has contributed to out-performance against the original investment case. The business has fully repaid the debt used to fund the Hall acquisition and the management team is continuing to grow each of Crawford's service and product lines, with organic growth forecast to increase both turnover and earnings in the year to 31 August 2016.

 

The UK's largest provider of promotional merchandise, SPS (EU), has experienced excellent growth under private ownership since Maven clients invested in February 2014. Operational improvements have enhanced profitability, whilst organic growth has been supplemented through two complementary acquisitions, High Profile Plastic and TEC, both of which were completed in the year to 31 December 2015. The business is forecasting to deliver further growth in the current financial year and make operational efficiencies, as a result of the implementation of a new enterprise resource planning system.

 

DPP provides planned and reactive mechanical, electrical, maintenance and installation services, mainly to the leisure, hospitality and retail sectors in the south of England and Wales. The company differentiates itself from competitors by employing a large and highly responsive team of skilled engineers. Following the loss of a significant customer in 2014, the company restructured its operations and has now secured a number of new contracts, allowing the business to materially improve its trading performance over the past twelve months.

 

Maven clients first invested in Just Trays, the UK's leading manufacturer of shower trays and related accessories, in June 2014. Subsequently the business has increased its customer base and extended its product range, with a number of innovative new products to be launched in the current financial year. Just Trays repaid its bank debt in full during 2015 and is planning to invest in automation in the coming year, which should help improve the production facility and increase operating margins.

 

As well as reflecting good trading performance across the portfolio, your Board and the Manager continue to be mindful of the possible effects of the enduring low oil price on those companies that operate in the oil & gas market. The Manager has worked closely with these companies as they have implemented overhead reduction programmes, targeted at reducing the cost base and closing non-core operations, with a view to conserving cash and positioning the businesses for recovery. Across the energy services sector, budgets have been set conservatively based on the expectation that the remainder of 2016 will continue to be challenging, with recovery starting to feed through in 2017 as the oil price stabilises and the pent up demand for essential maintenance and repair work is released. In response to these market conditions, the valuations of Glacier Energy Services Holdings and HCS Control Systems Group have been reduced. The Board and the Manager believe that the valuations of the remaining portfolio assets with exposure to the energy services sector remain fair and reasonable and the exit from Dantec Hose, along with a number of other realisations in the previous reporting period, has significantly reduced your Company's exposure to this sector. The remaining assets in this sector are focused on the operational expenditure segment of the industry, rather than being dependent on large capital expenditure programmes or exploration projects.

 

New Investments

 

During the period, one new private company was added to the portfolio:

 

•        The GP Service (UK) (GPS) is a provider of on-line services for general medical consultations and prescriptions, delivered through a web-based platform (www.thegpservice.co.uk), which offers GP consultations via a video link with prescriptions issued to a pharmacy of the user's choice. The investment will enable GPS to accelerate the roll out of its service across new geographic locations and to develop a range of products and services where there are strong market drivers.

 

In addition, finance was provided to Maven Capital (Marlow), a company formed to fund the acquisition and subsequent refurbishment of a vacant office building in Marlow, Buckinghamshire.

 

The following investments have been completed during the reporting period:

 

 

 

Date

 

 

Sector

Investment

cost

£'000

 

 

Website

Unlisted

Maven Capital (Marlow) Limited The GP Service (UK) Limited

 

April 2016

April 2016

 

Real estate

Health

 

650

398

 

No website available www.thegpservice.co.uk

Total unlisted investment

1,048

 

 

UK treasury bills

Treasury Bill 12 September 2016

 

 

 

March 2016

 

 

 

UK government

 

 

 

3,093

Total UK treasury bills investment

3,093



Total investment

4,141



At the period end, the portfolio stood at 64 unlisted and quoted investments, at a total cost of £26.8 million.

 

Realisations

 

A number of profitable realisations were achieved in the period. Maven clients funded the management buy-out of Dantec Hose, a manufacturer of flexible composite hoses used by a wide range of industries, in September 2011. The business was acquired by an overseas trade buyer and the sale completed in February 2016, achieving a return of 2.1 times cost over the life of the investment.

 

In January 2016 deferred consideration of £159,000 was received in respect of the exit from Westway Services Holdings, which completed in December 2015.

 

Subsequent to the period end, the Manager has been engaged with several other investee companies and prospective acquirers at various stages of a potential exit process. This realisation activity reflects the increasing maturity of a number of holdings, but it should be noted that there can be no certainty that these discussions will lead to profitable exits.

 

 

 

 

The table below gives details of all realisations achieved, and deferred considerations received, during the reporting period:

 


Year first invested

Complete/

Partial

exit

Cost of shares disposed of

£'000

Value at 31 December 2015

Sales proceed

£'000

Realised gain/ (loss)

£'000

Gain/(loss) over 31 December 2015 value

£'000

Unlisted



 

-

 

-

 

4

 

4

 

4

Camwatch Limited

2007

Complete

Espresso  Group Limited

2001

Complete

-

-

14

14

14

Kelvinlea  Limited

2013

Partial

75

75

-

-

LCL Hose Limited

2011

Complete

398

607

614

216

7

(trading as Dantec Hose)1








Maven Capital

2013

Complete

4

75

120

116

45

(Claremont House) Limited








Maven Co-invest Exodus Limited

2011

Complete

-

-

7

7

7

Partnership and Tosca Penta Exodus








Mezzanine Limited Partnership








(invested in Six Degrees Group)








Westway Services Holdings

2014

Complete

-

-

159

159

159

(2014) Limited



Total unlisted disposals

477

757

993

516

236

 

Quoted

Ideagen PLC

 

 

2005

 

 

Partial

 

 

11

 

 

17

 

 

18

 

 

7

 

 

1

Total quoted disposals

11

17

18

7

1

 

UK treasury bills



 

 

1,496

 

 

1,499

 

 

1,500

 

 

4

 

 

1

Treasury Bill 14 March 2016

2015

Complete

Treasury Bill 21 March 2016

2015

Complete

1,998

1,998

2,000

2

2

Treasury Bill 20 June 2016

2015

Complete

1,995

1,995

1,999

4

4

Total UK treasury bills disposals

5,489

5,492

5,499

10

7




Total disposals

5,977

6,266

6,510

533

244




1Proceeds exclude yield and redemption premiums received, which are disclosed as revenue for financial reporting purposes.

 

The table above includes the redemption of loan notes by a number of investee companies.

 

Material Developments Since the Period End

 

Since 30 June 2016, one new private company asset has been added to the portfolio. In July, the Manager completed a transaction, investing alongside NVM Private Equity, in Rockar, an innovative motor retailer with a sector-disruptive technology platform. The investment will enable Rockar to enhance its product offering and finance new dealerships in major shopping centres, working in partnership with brands including Hyundai and other well-known automotive manufacturers.

 

Principal Risks and Uncertainties

 

The principal risks and uncertainties facing the Company were set out in full in the Strategic Report contained within the 2015 Annual Report, and are the risks associated with investment in small and medium sized unlisted and AIM/ISDX quoted companies which, by their nature, carry a higher level of risk and lower liquidity than investments in large quoted companies. The valuation of investee companies may be affected by economic conditions, the credit environment and other risks including legislation, regulation, adherence to VCT qualifying rules and the effectiveness of the internal controls operated by the Company and the Manager. These risks and procedures are reviewed regularly by the Audit and Risk Committees and reported to your Board. The Board has confirmed that all tests, including the criteria for VCT qualifying status, continue to be monitored and met.

 

Share Buy-backs

 

Shareholders have given the Board authority to buy back shares for cancellation or to be held in treasury, subject always to such transactions being in the best interests of Shareholders. It is intended that, subject to market conditions, available liquidity and the maintenance of the Company's VCT status, shares will be bought back at prices representing a discount of up to 15% to the prevailing NAV per share. During the period under review 296,000 shares were bought back at a total cost of £266,000.

 

Regulatory Developments

 

As detailed in the Annual Report, the July 2015 Budget received Royal Assent on 18 November 2015, bringing into statute a number of material changes to the legislation governing the UK VCT scheme and aligning it with EU State Aid Rules for smaller company investment. The new rules impose specific restrictions on the types of company and transaction that VCTs are able to pursue in order to retain qualifying status. As a further amendment, the March 2016 Budget statement included an announcement that there would be changes to the rules governing non-qualifying investments for VCTs. With effect from 6 April 2016, VCTs are only permitted to make qualifying investments and certain limited investments for liquidity purposes, with other non-qualifying investments now being prohibited. Given the complexity of the new rules, and in order to ensure ongoing compliance, the Company continues to engage the services of an adviser to assist in interpreting the revised legislation in relation to proposed new transactions.

 

Since the announcement of the new rules Maven, along with other leading VCT managers, has been engaged in a consultation process which, through the industry representative body, the Association of Investment Companies (AIC), has been in discussion with HM Treasury to present the case for permitting an element of replacement capital in certain circumstances in new VCT transactions. This dialogue is ongoing and Shareholders will be kept up to date on any new developments.

 

On 3 July 2016 the EU's Market Abuse Regulation (MAR) came into force, replacing the Market Abuse Directive (MAD) in the UK, and is now applicable to all UK Listed and AIM quoted companies. The purpose of MAR is to enhance market integrity and investor protection and, although on similar lines to MAD, its scope has been expanded to include financial instruments traded on multilateral trading facilities, organised trading facilities and certain 'over-the-counter' activities. MAR will also introduce new rules on the disclosure of inside information, insider lists and share dealings by persons discharging managerial responsibilities. Maven anticipates that compliance with MAR will not have a significant impact on the activities of its VCT clients, but all relevant policies and procedures have been updated as appropriate.

 

Outlook

 

Shareholders will be aware of the result of the referendum in which the electorate expressed the wish that the UK should leave the EU. Although the full impact of this decision will become clearer over the coming months, the businesses in which your Company has invested will maintain or adapt their growth strategies as appropriate, with many exporters seeing a potential short-term benefit from the devaluation of sterling against several major currencies which has occurred at the date of this report.

 

The Directors are mindful that the limitations applied by the introduction of the revised legislation have imposed a number of restrictions on the types of business and transaction in which VCTs can invest. This will require the Manager to focus on the provision of development capital or investing in younger businesses with growth capital requirements, at the expense of the management buy-out or acquisition based transactions that have traditionally offered more predictable returns. Your Board remains confident that the experienced investment resource available to the Manager across its national office network remains capable of sourcing high quality opportunities which will comply with the amended rules, whilst continuing to meet Maven's rigorous in-house investment criteria.

 

Notwithstanding these recent changes in VCT legislation, your Board remains committed to deliver against its core objectives of achieving long term capital appreciation and generating maintainable levels of income for Shareholders from a portfolio of private company holdings which offer the ability to pay a regular yield to your Company along with the prospect of realising a capital gain at exit.

 

 

 

On behalf of the Board

Maven Capital Partners UK LLP

Secretary

 

26 August 2016

 



 

Summary of Investment Changes

For the Six Months Ended 30 June 2016

 


 Valuation

  31 December 2015

 Net investment/

(disinvestment)

 Appreciation/

 (depreciation)

 Valuation

 30 June 2016



 £'000

 %

 £'000

 £'000

 £'000

 %

 Unlisted investments






 Equities  

     9,762

     28.8

    (360)

         388

  9,790

  30.0

 Preference shares

            -

           -

           -

            -

     -

   -

 Loan stock

   17,106

     50.5

        415

        (127)

17,394

  53.2


   26,868

     79.3

          55

       261

 27,184

   83.2








 AIM/ISDX investments







 Equities  

        738

       2.2

        (18)

      (39)

    681

    2.1








 Listed investments







 Equities

         23

       0.1

         -

        3

     26

   0.1

 UK treasury bills

     5,492

     16.2

   (2,406)

         12

   3,098

     9.5

 Total investments

   33,121

     97.8

   (2,369)

         237

 30,989

   94.9








 Other net assets 

        755

       2.2

        940

             -

  1,695

  5.1








 Net assets

   33,876

    100.0

      (1,429)

        237

 32,684

   100.0

 

 



 

Investment Portfolio Summary

As at 30 June 2016

 

 

 

Investment

 

 

Valuation

£'000

 

 

Cost

£'000

 

% of   total assets

 

% of equity held

% of equity held by other clients¹

Unlisted






Torridon (Gibraltar) Limited (formerly Torridon Capital Limited)

1,853

682

5.8

3.7

36.3

Lemac No. 1 Limited (trading as John McGavigan)

1,352

698

4.2

9.1

27.7

SPS (EU) Limited

1,211

790

3.8

6.6

35.9

Nenplas Holdings Limited

1,106

323

3.5

4.0

28.5

Crawford Scientific Holdings Limited

1,086

612

3.4

7.2

41.0

Ensco 969 Limited (trading as DPP)

1,011

1,217

3.1

4.6

29.9

Glacier Energy Services Holdings Limited

957

957

2.9

3.7

23.9

HCS Control Systems Group Limited

836

836

2.6

6.8

29.7

Lambert Contracts Holdings Limited

821

821

2.5

12.3

52.4

Majenta Logistics Limited

800

800

2.4

10.6

39.2

Onyx Logistics Limited

800

800

2.4

10.6

39.2

Vectis Technology Limited

800

800

2.4

10.6

39.2

Metropol  Communications Limited

730

730

2.2

10.6

39.2

CatTech International Limited

701

498

2.1

4.8

25.3

JT Holdings (UK) Limited (trading as Just Trays)

686

522

2.1

5.8

24.2

Fathom Systems Group Limited

681

681

2.1

7.7

52.3

GEV Holdings Limited

672

672

2.1

4.3

31.7

Maven Capital (Marlow) Limited

650

650

2.0

-

100.0

Assecurare Limited

600

600

1.8

12.0

37.8

Broadwave Engineering Limited

600

600

1.8

12.0

37.8

Flow UK Holdings Limited

598

598

1.8

7.3

27.7

Vodat Communications Group Limited

592

592

1.8

6.9

34.9

R&M Engineering Group Limited

581

774

1.8

8.7

61.9

Maven Capital (Llandudno) LLP

575

575

1.8

-

100.0

CB Technology Group Limited

559

559

1.7

11.4

67.6

TC Communications Holdings Limited

554

777

1.7

8.1

21.9

Constant  Progress Limited

500

500

1.5

9.8

40.0

Equator Capital Limited

500

500

1.5

9.8

40.0

Toward Technology Limited

500

500

1.5

9.8

40.0

CHS Engineering Services Limited

497

497

1.5

4.2

19.1

Flexlife Group Limited

482

482

1.5

1.9

12.7

RMEC Group Limited

463

463

1.4

2.9

47.2

The GP Service (UK) Limited

398

398

1.2

4.9

27.6

Castlegate 737 Limited (trading as Cursor Controls)

369

299

1.1

3.0

44.5

Maven Co-invest Endeavour Limited Partnership (invested in Global Risk Partners)²

360

360

1.1

10.3

89.7

 



 

Investment Portfolio Summary (continued)

As at 30 June 2016

 

 

 

Investment (continued)

 

 

Valuation

£'000

 

 

Cost

£'000

 

% of   total assets

 

% of equity held

% of equity held by other clients¹

Unlisted (continued)






Martel Instruments Holdings Limited

310

347

0.9

4.2

40.0

Attraction World Holdings Limited

278

98

0.9

6.2

32.2

Claven Holdings Limited

232

170

0.7

9.6

40.4

Endura Limited2

229

229

0.7

0.7

5.2

ISN Solutions Group Limited

207

327

0.6

4.6

50.4

Traceall Global Limited

197

197

0.6

5.9

9.1

Space Student Living Limited

134

-

0.4

10.6

69.4

Lawrence Recycling and Waste  Management Limited

109

770

0.3

8.4

53.6

Kelvinlea Limited

7

7

-

13.1

36.9

Other unlisted investments

-

1,430

-



Total unlisted investments

27,184

25,738

83.2



 

Quoted






Ideagen PLC

276

184

0.9

0.3

2.5

Vectura Group PLC

179

100

0.6

-

-

OMG PLC

98

80

0.3

0.2

-

Plastics Capital PLC

76

85

0.2

0.2

1.2

Angle PLC

28

27

0.1

0.1

0.5

esure Group PLC

26

-

0.1

-

-

Deltex Medical Group PLC

10

33

-

0.1

-

Work Group PLC

8

151

-

0.7

2.5

Other quoted investments

6

393

-



Total quoted investments

707

1,053

2.2



 

UK treasury bills






Treasury Bill 12 September 2016

3,098

3,093

9.5



Total UK treasury bills investments

3,098

3,093

9.5









Total investments

30,989

29,884

94.9



¹Other clients of Maven Capital Partners UK LLP

²These investments are managed by Penta Capital LLP of which a Director of the Company, Steven Scott, is a partner.

 



 

Analysis of Unlisted and Quoted Portfolio

As at 30 June 2016

 

Unlisted valuation

     £'000                   %

Quoted valuation

              £'000 %

Total valuation

£'000

 

 

%

Support services

5,502

19.7

37

0.2

5,539

19.9

Energy services

3,319

11.9

-

-

3,319

11.9

Insurance

2,813

10.1

-

-

2,813

10.1

Construction & building materials

1,926

6.9

-

-

1,926

6.9

Telecommunication services

1,822

6.5

3

-

1,825

6.5

Diversified industrials

1,353

4.9

-

-

1,353

4.9

Automobiles & parts

1,352

4.8

-

-

1,352

4.8

Technology

1,300

4.7

-

-

1,300

4.7

Pharmaceuticals & biotechnology

1,086

3.9

179

0.6

1,265

4.5

Real estate

1,232

4.4

-

-

1,232

4.4

Software & computer services

795

2.9

375

1.3

1,170

4.2

Speciality & other finance

1,032

3.7

26

0.1

1,058

3.8

Engineering & machinery

969

3.5

-

-

969

3.5

Electronic & electrical equipment

870

3.1

-

-

870

3.1

Household goods & textiles

686

2.4

76

0.3

762

2.7

Food producers & processors

500

1.8

-

-

500

1.8

Health

398

1.5

10

-

408

1.5

General retailers

229

0.8

-

-

229

0.8

Investment companies

-

-

1

-

1

-

Total

27,184

97.5

707

2.5

27,891

100.0




 

 

 

Deal type

 

Number

Valuation

£'000

 

%

Unlisted


 

8,623

 

30.9

Management  buy-out

14

Acquisition finance

10

5,837

20.9

Development capital

15

4,146

14.9

Replacement capital

5

3,723

13.3

Buy-in/management buy-out

3

2,256

8.1

Buy & build

2

1,465

5.3

Mezzanine

1

575

2.1

Management buy-in

1

559

2.0

Total unlisted

51

27,184

97.5

 

Quoted

 

13

 

707

 

2.5

Total unlisted and quoted

64

27,891

100.0

 

 

 

 



 

Income Statement

 

For the Six Months Ended 30 June 2016

 


Six months ended 30 June 2016

Six months ended 30 June 2015

Year ended 31 December 2015


(unaudited)

(unaudited)

(audited)


Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Gains on investments

-

            237

237

             -

    1,423

1,423

              -

   2,866

      2,866

Income from investments

         421

                -

421

        675

           -

      675

    1,710

         -

      1,710

Investment management fees

      (89)

      (354)

(443)

       (116)

     (462)

(578)

       (275)

(1,097)

    (1,372)

Other expenses

      (124)

                -

(124)

        (42)

            -

(42)

       (200)

           -

       (200)

Net Return on ordinary activities before taxation

            208

         (117)

           91

         517

         961

   1,478

      1,235

   1,769

      3,004











Tax on ordinary activities

         (20)

              20

            -

        (46)

           46

          -

       (219)

      219

            -

Return attributable to Equity Shareholders

            188

           (97)

           91

         471

      1,007

   1,478

      1,016

   1,988

      3,004











Earnings per share (pence)

             0.57

             0.29

         0.86

        1.41

         3.02

     4.43

3.03

      5.94

         8.97

 

A Statement of Total Recognised Gains and Losses has not been prepared, as all gains and losses are recognised in the Income Statement.

 

All items in the above statement are derived from continuing operations. The Company has only one class of business and derives its income from investments made in shares, securities and bank deposits.

 

The total column of this statement is the Profit and Loss Account of the Company.

 

 

Reconciliation Of Movements In Shareholders' Funds




For the Six Months Ended 30 June 2016







Six months ended 30 June 2016

(unaudited)

Six months ended 30 June 2015

(unaudited)

Year ended

31 December 2015

(audited)



£'000

£'000

£'000

Opening Shareholders' funds


        33,876

        31,138

        31,138

Net return for period


              91

         1,478

         3,004

Net proceeds of share issue


                -

         1,986

         1,986

Net proceeds of DIS issue


                -

              24

              16

Merger costs


                -

             (20)

             (20)

Repurchase and cancellation of shares


           (266)

           (382)

           (525)

Dividends paid - revenue


           (500)

           (237)

           (574)

Dividends paid - capital


           (517)

           (745)

        (1,149)

Closing Shareholders' funds


        32,684

        33,242

        33,876

 

The accompanying Notes are an integral part of the Financial Statements.



 

Balance Sheet







As at 30 June 2016




















 30 June 2016


 30 June 2015


 31 December 2015





 (unaudited)


 (unaudited)


 (audited)





 £'000


 £'000


 £'000

Fixed assets







Investments at fair value through profit or loss

              30,989


              29,589


                      33,121










Current assets







Debtors



                   365


                   730


                           418

Cash



                1,373


                3,319


                           762





                1,738


                4,049


                        1,180

Creditors







Amounts falling due within one year

                   (43)


                 (396)


                         (425)

Net current assets


                1,695


                3,653


                           755

Net assets


              32,684


              33,242


                      33,876










Capital and reserves






Called up share capital

                3,324


                3,370


                        3,354

Share premium account

              19,449


              19,457


                      19,449

Capital reserve - realised

              (1,015)


              (2,375)


                         (697)

Capital reserve - unrealised

                1,105


                2,502


                        1,401

Distributable reserve


                8,830


                9,239


                        9,096

Capital redemption reserve

                   320


                   274


                           290

Revenue reserve


                   671


                   775


                           983

Net assets attributable to Ordinary Shareholders

              32,684


              33,242


                      33,876










Net asset value per Ordinary Share (pence)

                  98.33


                  98.63


                        101.01

 

The Financial Statements were approved by the Board of Directors on 26 August 2016 and were signed on its behalf by:                   

                       

                       

                       

 Ian Cormack                

 Director                       

           

                       

 The accompanying Notes are an integral part of the Financial Statements.

 



 

Cash Flow Statement




For the Six Months Ended 30 June 2016


Six months ended



Six months ended

30 June 2015

Year ended


30 June 2016

(restated)*

31 December 2015


(unaudited)

(unaudited)

(audited)


 £'000

 £'000

 £'000





Net cash flows from operating activities

                            (954)

                         (733)

                         (1,376)





Cash flows from investing activities




Investment income received

                              459

                            680

                           1,747

Deposit interest received

                                  1

                                 -

                                  1

Purchase of investments

                         (4,141)

                      (8,597)

                       (24,377)

Sale of investments

                           6,529

                         9,778

                         23,468

Net cash flows from investing activities

                           2,848

                         1,861

                              839





Cash flows from financing activities




Equity dividends paid

(1,017)

(982)

(1,723)

Issue of Ordinary Shares

                                   -

                         2,010

                           2,002

Merger costs

                                   -

                           (20)

                              (20)

Repurchase of Ordinary Shares

(266)

(382)

(525)

Net cash flows from financing activities

                         (1,283)

                            626

                            (266)





Net increase/(decrease) in cash

                              611

                         1,754

                            (803)





Cash at beginning of period

762

                         1,565

                           1,565

Cash at end of period

1,373

                         3,319

                              762

*The June 2015 cash flow has been restated for the presentation requirements of FRS 102.

 

The accompanying Notes are an integral part of the Financial Statements.

 



 

 

 

Notes to the Financial Statements













1.

Accounting Policies








The financial information for the six months ended 30 June 2016 and the six months ended 30 June 2015 comprises non-statutory accounts within the meaning of S435 of the Companies Act 2006. The financial information contained in this report has been prepared on the basis of the accounting policies set out in the Annual Report and Financial Statements for the year ended 31 December 2015, which have been filed at Companies House and which contained an Auditor's Report which was not qualified and did not contain a statement under S498(2) or S498(3) of the Companies Act 2006.















Share

Capital

Capital


Capital




premium

reserve

reserve

Distributable

redemption

Revenue

2.

Movement in reserves

account

realised

unrealised

reserve

reserve

reserve



£'000

£'000

£'000

£'000

£'000

£'000


At 31 December 2015

     19,449

         (697)

        1,401

             9,096

             290

         983


Gains on sale of investments

               -

           533

              -

                    -

                    -

              -


Net decrease in value of investments

               -

              -

        (296)

                    -

                    -

              -


Investment management fees

               -

        (354)

             -

                    -

                    -

              -


Dividends paid

               -

         (517)

              -

                    -

                    -

       (500)


Tax effect of capital items

              -

           20

              -

                    -

                    -

              -


Repurchase and cancellation of shares

              -

              -

             -

            (266)

                30

             -


Net return on ordinary activities after taxation

              -

              -

             -

                    -

                    -

        188


As 30 June 2016

     19,449

       (1,015)

         1,105

             8,830

               320

         671

















3.

Return per Ordinary Share




Six months ended

30 June 2016








The returns per share have been based on the following figures:













Weighted average number of Ordinary Shares



33,400,464










Revenue return






£188,000


Capital return






(£97,000)


Total return






£91,000

 

 

Directors' Responsibility Statement

 

The Directors confirm that, to the best of their knowledge:

 

•      the Financial Statements for the six months ended 30 June 2016 have been prepared in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland;

 

•      the Interim Management Report includes a fair review of the information required by DTR 4.2.7R in relation to the indication of important events during the first six months, and of the principal risks and uncertainties facing the Company during the second six months, of the year ending 31 December 2016; and

 

•      the Interim Management Report includes adequate disclosure of the information required by DTR 4.2.8R in relation to material related party transactions and any changes therein.

 

 

 

 

Other Information

 

The latest NAV per Ordinary Share has been calculated using the number of Ordinary Shares in issue at 30 June 2016 of 33,239,502.

 

A full copy of the Interim Report and Financial Statements will be printed and issued to Shareholders. Copies of this announcement will be available to the public at the registered office of the Company at Kintyre House, 205 West George Street, Glasgow G2 2LW; at the office of the Manager, Maven Capital Partners UK LLP, 5th Floor, 1-2 Royal Exchange Buildings, London EC3V 3LF; and, in due course, on the Company's website at www.mavencp.com/migvct4.

 

Neither the content of the Company's website nor the contents of any website accessible from hyperlinks in this announcement, on the Company's website or any other website is incorporated into, or forms part of, this announcement.

 

By order of the Board

Maven Capital Partners UK LLP

Secretary

26 August 2016

 


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