Half-year Report

RNS Number : 2479F
Maven Income & Growth VCT PLC
26 October 2018
 

Maven Income and Growth VCT PLC

 

Interim results for the six months ended 31 August 2018 (unaudited)

 

The Directors are pleased to announce the unaudited Interim Management Report for the six months ended 31 August 2018.

 

Highlights

· NAV total return at 31 August 2018 of 141.16p per share

 

· NAV at 31 August 2018 of 46.25p per share, after payment of interim dividends totalling 12.55p per share during the period

 

· Three new VCT qualifying private company holdings added to the portfolio, with a further two completed post the period end

 

· Follow-on funding provided to five portfolio companies

 

· Healthy pipeline of new VCT qualifying investments, with a number in advanced process

 

· Offer for Subscription launched 26 September 2018

 

· Exit achieved from Cursor Controls after the period end, at a premium to carrying value

 

Overview

Your Company has delivered further growth in the first half of the financial year, reporting NAV total return at the period end of 141.16p per share. Performance across the portfolio as a whole was generally encouraging, with no discernible impact from the current political uncertainty and a number of portfolio companies making good progress against the commercial milestones set at the time of the original investment.

 

Whilst NAV total return has continued to increase, Shareholders will note that the absolute NAV has declined as a consequence of the payment of interim dividends totalling 12.55p per share during the period. Over the past two years, Shareholders have received 24.21p per share in dividends, reflecting a build-up of distributable reserves following a number of profitable exits, and your Company's requirement to maintain ongoing compliance with the VCT regulations. This represents a highly tax-efficient means of returning capital to Shareholders. Following this period of enhanced distributions, which have reduced the Company's asset base, the launch of the new Offer for Subscription is intended to increase the size of the Company and provide additional liquidity to support future growth in Shareholder value.

 

Against an objective to continue to expand and diversify the investee company portfolio, it is encouraging to note that three new private company holdings were added during the period, with follow-on funding also provided to five existing portfolio companies to support their continued growth. Given the pipeline of live opportunities, and level of new business introductions currently being assessed across Maven's nationwide network of offices, it is anticipated that there will be a healthy rate of new investment activity during the second half of the financial year. In addition, there are likely to be further follow-on investments as earlier stage portfolio companies develop and require additional capital to deliver their business plans.

 

The strategy remains to invest in carefully selected fast growing UK smaller companies, operating across a diverse range of industries that offer either compelling proprietary technology or a disruptive business model capable of scalable growth. Maven also has a preference for supporting proven management teams with successful track records in previous businesses. The expansion of Maven's investment team to include a number of executives with specific sector expertise, particularly in early stage technology, is benefiting the initial asset screening and selection process.

 

Dividends

As a result of recent profitable realisations, and to ensure ongoing compliance with the VCT regulations, the Director's considered it necessary to distribute an enhanced level of interim dividends.

 

Accordingly, a first interim dividend in respect of the year ending 28 February 2019, of 7.45p per Ordinary Share, was paid on 13 April 2018 to Shareholders on the register at close of business on 16 March 2018. A second interim dividend, of 5.10p per Ordinary Share, was paid on 22 June 2018 to Shareholders on the register at close of business on 25 May 2018. The effect of paying these dividends was to reduce the NAV of the Company by the total cost of the distributions.

 

Since the Company's launch, and after receipt of the most recent of these dividends, Shareholders have received 94.91p per share in tax-free income. Decisions on future distributions will take into consideration the adequacy of reserves, the proceeds from any further realisations and the VCT qualifying levels of the portfolio, all of which are kept under close and regular review by the Board and the Manager.

 

Fund Raising

On 26 September 2018, the Directors of your Company, together with the Directors of Maven Income and Growth VCT 5 PLC, launched an Offer for Subscription for new Ordinary Shares of up to £30 million, in aggregate, with a combined over-allotment facility of up to £10 million. The Offer proposal is being recommended for approval by Shareholders at a General Meeting to be held on 2 November 2018 and it is anticipated that the shares will be issued in the 2018/19 and 2019/20 tax years.

 

Your Board is confident that the Manager will continue to expand the portfolio by investing in dynamic, earlier stage VCT qualifying businesses that have the potential to deliver future growth in Shareholder value.

 

Dividend Investment Scheme (DIS)

The Directors have also resolved to re-introduce the DIS, which was suspended on 24 August 2015 due to the restrictions imposed by the 2015 Summer Budget. In light of the recent launch of the Offer for Subscription, as announced on 26 September 2018, the DIS has been reinstated with immediate effect.

 

This means that, unless they advise otherwise, those Shareholders who had previously elected to participate in the DIS will revert to receiving new shares, which should qualify for the VCT tax reliefs applicable for the year in which they are allotted. Full details of the scheme, together with a mandate form, are available from the Company's website. Shareholders who had not previously applied to participate in the DIS and who now wish to do so for future dividends, should ensure that a mandate form, or CREST transfer if appropriate, is submitted to the Company's Registrar, Link Market Services. Alternatively a DIS election can be made through the Link Market Services share portal at www.signalshares.com.

 

Portfolio Developments

During the period, the majority of private companies in the investee portfolio performed in line with expectations, despite the continued uncertainty within the UK economy surrounding the UK's intended exit from the European Union.

 

It is encouraging to report that trading within the oil & gas portfolio has continued to improve through the first half of the financial year. After three years of exceptionally challenging market conditions, the portfolio companies with exposure to the sector are reporting an upturn in activity and profitability compared to the prior year, with forward order books projecting a continuation of this trend. The improvement in financial and operational performance reflects cost cutting and restructuring measures, which were implemented with close support from Maven executives at the onset of the downturn. As a result, each investee company is operating with a lean cost structure and has limited or no external debt, which should provide stability assuming the recovery continues to strengthen.

 

Elsewhere in the portfolio, a number of the established private company holdings have had their valuations increased to reflect improved performance.

 

Cursor Controls, a global leader in the design and manufacture of trackballs, trackpads and keyboards for use in specialist industrial applications, including health, defence and marine, continues to deliver good levels of organic growth. Performance was enhanced by the acquisition of Belgium distributor NSI in April 2016. The enlarged group continues to trade well, with further commercial and operational synergies identified to support future growth and profitability. During the period under review, the business received an offer from a UK listed acquirer and a sale completed post the period end at a premium to carrying value, generating a total return of 2.7 times cost over the three-year investment period.

 

Diversified renewable energy services group GEV has experienced strong growth over the past year, particularly in the US through its largest division GEV Wind Power, which specialises in wind turbine blade maintenance. The US market opportunity is sizeable and the business is well positioned to capitalise on this over the coming year, having secured contracts with leading providers including MHI Vestas, Eon, Siemens and Invenergy. The management team is also forecasting strong performance in the UK and Europe in the year ahead.

 

Specialist electronics manufacturer CB Technology has made considerable progress over the past year, gaining a number of notable new clients adding to the existing strong customer base. The company, which assembles and tests high-end printed circuit boards for use in industrial and semiconductor markets, experienced a marked improvement in activity levels during the full year to 31 March 2018. Headcount has been increased to accommodate the record order book and the management team is optimistic on the outlook for the year ahead.

 

Vodat Communications supplies data networks, IP telephony, wi-fi solutions and fixed line connectivity to retail customers, with a solid blue chip customer base including Fat Face, Beaverbrooks and Welcome Break. Maven clients supported the management buy-out in 2012 and, since investment, the business has achieved positive growth and added a number of new customer contracts. In November 2017, Vodat completed the complementary acquisition of Axonex, a provider of specialist IT solutions, services and support specialising in unified communications, data centre, security and network infrastructure. The acquisition, which was funded through cash and bank debt, has created a number of cross selling opportunities to help deliver further growth for the enlarged group.

 

In addition, follow-on funding was provided to Growth Capital Ventures, ITS Technology, QikServe, The GP Service and Whiterock. Given their stage of development, the requirement to provide further capital to earlier stage qualifying companies was anticipated at the time of initial investment and was reflected in the reduced total commitment size by the Maven VCTs, and by the strategy of co-investing alongside other VCT houses. In terms of valuation, all new development capital investments will continue to be held at cost, or cost less provision, until there is clear evidence of measurable progress or a quantifiable event from which a new valuation level can be validated.

 

The investment trust portfolio has continued to trade well and generate healthy levels of income. This is particularly important in light of the restrictions introduced by the Finance Act 2016, which prevents non-qualifying investments in traditional instruments such as treasury bills or other government securities for liquidity management purposes.

 

As well as reflecting the positive trading performance highlighted above, your Board has also fully provided against the value of the holding in Lambert Contracts prior to it being placed into administration. A full provision has also been taken against the value of the holding in Chic Lifestyle.

 

New Investments

During the period, your Company provided development capital to four private companies:

 

•      BioAscent Discovery is a drug discovery services business that was founded by former pharmaceutical executives with over 30 years' experience of delivering clinical drug candidates. The business operates from the former Merck Sharpe and Dohme R&D site in Newhouse, Scotland, which is a secure state-of-the-art facility, housing client compound libraries ranging in size from several thousand to a few hundred thousand compounds. The funding will be used to add complementary chemistry and biology services to the existing compound management service to create a highly differentiated, high-value integrated drug discovery offering.

 

•      Bright Network is a developer and provider of a media technology platform that enables medium and large sized companies to identify, reach and recruit good quality university graduates and young professionals. The platform currently supports a network of over 150,000 high calibre candidates and has a customer base of over 250 leading employers, including Bloomberg, Marks and Spencer and Vodafone. The Maven client investment will support the development of the technology as well as providing funding to further business development and marketing activities.

 

•      Lending Works has developed a peer-to-peer (P2P) platform that matches private and institutional lenders to individual borrowers, and has grown to become the third largest P2P consumer lender in the UK. The company is well regarded by customers and partners as a responsible and ethical market leader, being the first major P2P platform to be fully authorised by the FCA, and the first to be authorised to provide an ISA offering. The investment by the Maven VCTs will enable the company to accelerate future growth.

 

The following investments have been completed during the reporting period:

 

 

 

 

Date

 

 

Sector

Investment

cost

£'000

 

 

Website

Unlisted

 

 

 

 

BioAscent Discovery Limited

June 2018

Pharmaceuticals &

174

www.bioascent.com

 

 

biotechnology

 

 

Bright Network (UK) Limited

July 2018

Software &

273

www.brightnetwork.co.uk

 

 

computer services

 

 

Growth Capital Ventures Limited

June 2018

Investment companies

98

www.growthcapitalventures.co.uk

ITS Technology Group Limited

June 2018

Telecommunication

249

www.itstechnologygroup.com

 

 

services

 

 

Lending Works Limited

April 2018

Software &

349

www.lendingworks.co.uk

 

 

computer services

 

 

QikServe Limited

March 2018

Software &

119

www.qikserve.com

 

 

computer services

 

 

The GP Service (UK) Limited

June 2018

Health

200

www.thegpservice.co.uk

Whiterock Group Limited

July 2018

Technology

112

www.whiterockgroup.net

Total unlisted

 

 

1,574

 

 

At the period end, the portfolio stood at 58 unlisted and quoted investments, at a total cost of £22.71 million.

 

Realisations

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

28 February

2018

£'000

 

 

Sales proceeds

£'000

 

 

Realised gain/(loss)

£'000

Gain/(loss)

over

28 February

2018 value

£'000

Unlisted

 

 

 

 

 

 

 

CHS Engineering Services Limited

2014

Partial

2

-

2

-

2

Constant Progress Limited

2015

Complete

-

-

3

3

3

Equator Capital Limited

2015

Complete

-

-

3

3

3

House of Dorchester

2002

Complete

-

-

97

97

97

SPS (EU) Holdings Limited

2014

Complete

-

-

18

18

18

Toward Technology Limited

2015

Complete

-

-

3

3

3

Total unlisted

 

 

2

-

126

124

126

Private equity investment trusts

 

 

 

 

 

 

 

Apax Global Alpha Limited

2016

Partial

86

93

89

3

(4)

F&C Private Equity Trust PLC

2016

Partial

31

35

37

6

2

HG Capital Trust PLC

2016

Complete

100

122

134

34

12

Princess Private Equity Holding Limited

2016

Complete

99

121

120

21

(1)

Standard Life IPIT Limited

2016

Complete

99

105

101

2

(4)

Total private equity investment trusts

 

 

415

476

481

66

5

Real estate investment trusts

 

 

 

 

 

 

 

British Land Company PLC

2016

Complete

99

104

107

8

3

Custodian REIT PLC

2016

Complete

99

107

109

10

2

Schroder REIT Limited

2016

Complete

99

107

105

6

(2)

Target Healthcare REIT Limited

2016

Complete

98

94

96

(2)

2

Total real estate investment trusts

 

 

395

412

417

22

5

 

 

 

 

 

 

 

 

Total disposals

 

 

812

888

1,024

212

136

 

Subsequent to the reporting period, the Manager has been engaged with several investee companies and prospective acquirers at various stages of the negotiation process, although there can be no certainty that these discussions will result in profitable sales.

 

Material Developments Since the Period End

Since 31 August 2018, two new private company holdings have been added to the portfolio.

 

Optoscribe has developed an integrated platform of optical and photonic technologies that use high-power lasers to direct-write optical waveguides, which minimise energy dissipation and have applications in a wide range of markets including telecom, datacom, and mobile networks. Optoscribe's innovative techniques can form these guides in precise 3D orientations, and thereby simplify manufacturing processes by delivering highly efficient and scalable products. The barriers to entry into this market are significant and, as such, the company's existing intellectual property (including patents) and technical know-how gives it a defensible market position. The investment will enable the management team to scale manufacturing capacity and support further business development activity.

 

Boiler Plan has developed an innovative on-line platform for the purchase, installation and financing of domestic boilers. The platform supports the entire boiler sales process, handling everything from the choice of appliance, initial home survey, finance payment options and installation by a qualified engineer, to the ongoing maintenance and aftercare service. The investment will be used to roll out the company's operations into new UK territories and also to support its marketing programme.

 

In addition, follow-on development capital funding was provided to ebb3 to assist with its further growth.

 

In October 2018, the holding in Cursor Controls was sold for a total consideration of £19 million. The sale to discoverIE Group plc, a UK listed international designer, manufacturer and supplier of innovative components for electronic applications, achieved a premium to carrying value and a total return multiple of 2.7 times cost over the three-year investment period.

 

Principal Risks and Uncertainties

The principal risks and uncertainties facing the Company were set out in full in the Strategic Report contained within the 2018 Annual Report, and are the risks associated with investment in small and medium sized unlisted and AIM/NEX quoted companies which, by their nature, carry a higher level of risk and are subject to 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. During the period under review, 445,000 share were bought back at a total cost of £211,000. It is intended that, subject to market conditions, available liquidity and the maintenance of the Company's VCT status, shares will continue to be bought back at prices representing a discount of between 5% and 10% of the prevailing NAV per share.

 

Regulatory Developments

The General Data Protection Regulation came into force on 25 May 2018, replacing the Data Protection Act 1998. This regulation enforces the principle of 'privacy by design and by default' and enshrines new rights for individuals, including the right to be forgotten and to data portability. The Manager has worked with the third parties that process Shareholders' personal data to ensure that their rights under the new regulation are respected.

 

In July 2018, the Financial Reporting Council published an update of the UK Corporate Governance Code. The 2018 Code focuses on the application and reporting of the updated Principles. Specifically, reporting should cover the application of the Principles in the context of the particular circumstances of a company and how the board has set out its purpose and strategy, met objectives and achieved outcomes through decision it has taken, rather than applying a 'tick-box' approach. The Code applies to all companies with a Premium Listing and is applicable for all accounting dates beginning after 1 January 2019. The Association of Investment Companies (AIC) has published an overview of the key provisions contained within the revised Code, which will continue to recognise that the AIC's Corporate Governance Code (AIC Code) can provide an alternative mechanism for investment companies to meet their corporate governance obligations. The AIC is currently revising the AIC Code and will consult with members in the autumn with a view to publishing a revised version in December 2018 with the same application date as the 2018 Code. It is expected that the revised AIC Code will follow the principles and provisions of the UK Code, but replace the references to executives and workforce with other provisions, contained in the AIC Code, in relation to oversight of the investment manager.

 

Board Constitution

The Board's composition is reviewed regularly by the Directors and, as announced on 26 September 2018 and as highlighted in the Prospectus for the Offer for Subscription, Fiona Wollocombe will step down from the Board at the end of the current financial year. Shareholders will be informed when further information is available regarding the appointment of replacement or additional Directors.

 

Outlook

Based on the current level of new transaction activity, it is expected that a meaningful number of new investments will be completed during the second half of the financial year, consistent with the Company's strategy of further expanding and diversifying the portfolio. Your Board and the Manager remain committed to building a large and broadly based portfolio of valuable private companies that are capable of delivering consistently positive Shareholder returns in the years ahead, and it is anticipated that the proceeds of the Offer for Subscription will help to further enhance this strategy.

 

On behalf of the Board

Maven Capital Partners UK LLP

Secretary

 

26 October 2018

 

Summary of Investment Changes

 

For the Six Months Ended 31 August 2018

 

 

Valuation

28 February 2018

Net investment/ (disinvestment)

Appreciation/ (depreciation)

 

Valuation

31 August 2018

 

£'000

%

£'000

£'000

£'000

          %

Unlisted investments

 

 

 

 

 

 

Equities

9,157

29.4

1,359

195

10,711

43.6

Preference shares

           1

             -

-

-

1

-

Loan stock

     9,568

        30.7

89

120

     9,777

      39.8

 

   18,726

        60.1

                   1,448

                     315

   20,489

      83.4

AIM/NEX  investments

 

 

 

 

 

 

Equities

 798

 2.6

-

22

820

3.3

 

Listed investments

 

 

 

 

 

 

Equities

 19

 0.1

 -

 4

 23

 0.1

Investment trusts

 1,128

 3.6

 (898)

 11

 241

 1.0

Total investments

 20,671

 66.4

 550

 352

 21,573

 87.8

 

Net current assets

 10,501

 33.6

 (7,506)

 -

 2,995

 12.2

Net assets

 31,172

 100.0

 (6,956)

 352

 24,568

 100.0

 

 

Investment Portfolio Summary

 

As at 31 August 2018

 

 

Investment

 

Valuation

£'000

 

Cost

£'000

 

% of net assets

 

% of equity held

% of

equity held by other clients1

Unlisted

 

 

 

 

 

Martel Instruments Holdings Limited

 1,103

 1,234

4.6

14.9

29.3

GEV Holdings Limited

 1,068

 728

4.4

4.6

31.4

Vodat Communications Group Limited

 1,024

 567

4.3

4.2

22.6

ELE Advanced Technologies Limited

 993

 192

4.1

11.3

 -

CatTech International Limited

 982

 627

4.1

6.0

24.0

Ensco 969 Limited (trading as DPP)

 885

 733

3.7

4.9

29.6

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

 871

 436

3.5

8.5

91.5

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

 796

 522

3.2

5.8

24.2

CB Technology Group Limited

 755

 579

3.1

11.8

67.2

The GP Service (UK) Limited

 730

 698

3.0

9.7

39.9

Fathom Systems Group Limited

 711

 711

2.9

8.0

52.0

Castlegate 737 Limited (trading as Cursor Controls)

 699

 324

2.8

3.3

44.2

ITS Technology Group Limited

 696

 696

2.8

5.6

30.2

Horizon Cremation Limited

 688

 688

2.8

3.8

18.5

Glacier Energy Services Holdings Limited

 688

 688

2.8

2.7

25.0

HCS Control Systems Group Limited

 611

 846

2.5

6.9

29.6

Flow UK Holdings Limited

 598

 598

2.4

7.3

27.7

R&M Engineering Group Limited

 572

 762

2.3

8.6

62.0

Rockar 2016 Limited (trading as Rockar)

 551

 551

2.2

3.0

12.6

QikServe Limited

 517

 517

2.1

4.0

17.2

RMEC Group Limited

 463

 463

1.9

2.9

47.2

Attraction World Holdings Limited

 400

 21

1.6

6.2

32.2

ADC Biotechnology Limited

 378

 378

1.5

2.8

12.1

Lending Works Limited

 349

 349

1.4

3.3

16.3

Contego Fraud Solutions Limited (trading as NorthRow)

 348

 348

1.4

3.0

12.6

Whiterock Group Limited

 347

 321

1.4

5.2

24.8

Bright Network (UK) Limited

 273

 273

1.1

3.8

26.2

Torridon (Gibraltar) Limited

 271

 -

1.1

4.5

35.5

Growth Capital Ventures Limited

 269

 257

1.1

6.2

32.4

eSafe Systems Limited

 249

 249

1.0

4.8

27.3

TC Communications Holdings Limited

 241

 413

1.0

3.5

26.5

ISN Solutions Group Limited

 205

 323

0.8

4.6

50.4

ebb3 Limited

 183

 183

0.7

4.3

20.2

Cognitive Geology Limited

 179

 179

0.7

2.2

10.2

BioAscent Discovery Limited

 174

 174

0.7

4.4

35.6

Curo Compensation Limited

 149

 149

0.6

1.9

13.5

Lawrence Recycling and Waste Management Limited

 135

 951

0.5

10.4

51.6

WaterBear Education Limited

 120

 120

0.5

4.5

39.2

 

 

Investment Portfolio Summary (Continued)

 

 

 

Investment

 

Valuation

£'000

 

Cost

£'000

 

% of net assets

 

% of equity held

% of

equity held by other clients1

Unlisted (continued)

 

 

 

 

 

Space Student Living Limited

 72

 -

0.3

11.5

68.6

FLXG Scotland Limited (formerly Flexlife Group Limited)

 60

 277

0.2

1.8

12.5

Other unlisted investments

 86

 3,393

0.3

 

 

Total unlisted

 20,489

 21,518

83.4

 

 

 

Quoted

 

 

 

 

 

Cello Group PLC

 406

 310

1.7

0.3

0.1

Plastics Capital PLC

 296

 260

1.2

0.7

0.7

Angle PLC

 83

 114

0.3

0.2

0.1

Vianet Group PLC

 35

 37

0.1

0.1

1.4

esure Group PLC

 23

 -

0.1

 -

 -

Other quoted investments

 -

 242

 -

 

 

Total quoted

 843

 963

3.4

 

 

Private equity investment trusts

Private equity investment trusts

 

 

 

 

 

F&C Private Equity Investment Trust PLC

 83

 71

0.3

0.1

0.3

Apax Global Alpha Limited

 14

 13

0.1

 -

0.1

Standard Life Private Equity Trust PLC

 55

 43

0.2

 -

 -

Total private equity investment trusts

 152

 127

0.6

 

 

Real estate investment trusts

Real estate investment trusts

 

 

 

 

 

Regional REIT Limited

 89

 99

0.4

 -

0.2

Total real estate investment trusts

 89

 99

0.4

 

 

 

 

 

 

 

 

Total investments

 21,573

 22,707

87.8

 

 

 

1 Other clients of Maven Capital Partners UK LLP.

 

Income Statement

 

For the Six Months Ended 31 August 2018

 

 

Six months ended

31 August 2018

(unaudited)

Six months ended

31 August 2017

(unaudited)

Year ended

28 February 2018

(audited)

 

Revenue

£'000

Capital

£'000

Total

£'000

Revenue

£'000

Capital

£'000

Total

£'000

Revenue

£'000

Capital

£'000

Total

£'000

Gains/(losses) on investments

 -

 352

 352

-

(54)

(54)

 -

 504

 504

Income from investments

 333

 -

 333

502

-

502

 1,244

 -

 1,244

Other income

 7

 -

 7

6

-

6

 14

 -

 14

Investment management fees

 (56)

 (223)

 (279)

(266)

(333)

 (125)

 (502)

 (627)

Other expenses

 (106)

 -

 (106)

(101)

-

(101)

 (232)

 -

 (232)

Net return on ordinary

 178

 129

 307

 340

 (320)

 20

 901

 2

 903

activities before taxation

 

 

 

 

 

 

 

 

 

 

Tax on ordinary activities

 (16)

 16

 -

 

(25)

 

25

 

-

 (158)

 96

 (62)

Return attributable to

Equity  Shareholders

 162

 145

 307

315

(295)

20

 743

 98

 841

 

Earnings per share (pence)

 0.30

 0.27

 0.57

 0.58

 (0.55)

 0.03

 1.38

 0.18

 1.56

                     

 

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 one reportable segment, the results of which are set out in the Income Statement and Balance Sheet. The Company derives its income from investments made in shares, securities and bank deposits.

 

There are no potentially dilutive capital instruments in issue and therefore no diluted earnings per share figures are relevant. The basic and diluted earnings per share are, therefore, identical.

 

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

 

 

Statement of Changes in Equity

 

For the Six Months Ended 31 August 2018

 

Six months ended 31 August 2018 (unaudited)

 

 

 

 

 

Share capital

£'000

Share premium account

£'000

Capital reserve realised

£'000

Capital reserve unrealised

£'000

Special distributable

reserve

£'000

Capital redemption

reserve

£'000

 

Revenue reserve

£'000

 

 

Total

£'000

At 28 February 2018

 5,356

 10,253

 (10,770)

 (599)

 26,067

 291

 574

 31,172

Net return

 -

 -

 5

 140

 -

 -

 162

 307

Dividends paid

 -

 -

 (6,700)

 -

 -

 -

 -

 (6,700)

Repurchase and cancellation

of shares

 (44)

 -

 -

 -

 (211)

 44

 -

 (211)

At 31 August 2018

 5,312

 10,253

 (17,465)

 (459)

 25,856

 335

 736

 24,568

 

 

Six months ended 31 August 2017 (unaudited)

 

 

 

 

 

Share capital

£'000

Share premium account

£'000

Capital reserve realised

£'000

Capital reserve unrealised

£'000

Special distributable

reserve

£'000

Capital redemption

reserve

£'000

 

Revenue reserve

£'000

 

 

Total

£'000

At 28 February 2017

5,405

10,253

(10,738)

3,408

26,326

242

693

35,589

Net return

-

-

(43)

(252)

-

-

315

(20)

Dividends paid

-

-

(3,276)

-

-

-

(270)

(3,546)

Repurchase and cancellation

of shares

(25)

-

-

-

(135)

25

-

(135)

At 31 August 2017

5,380

10,253

(14,057)

3,156

26,191

267

738

31,928

 

 

Year ended 28 February 2018 (audited)

 

 

 

 

Share capital

£'000

Share premium account

£'000

Capital reserve realised

£'000

Capital reserve unrealised

£'000

Special distributable

reserve

£'000

Capital redemption

reserve

£'000

Revenue reserve

£'000

Total

£'000

At 28 February 2017

 5,405

 10,253

 (10,738)

 3,408

 26,326

 242

 693

 35,589

Net return

 -

 -

 4,105

 (4,007)

 -

 -

 743

 841

Dividends paid

 -

 -

 (4,137)

 -

 -

 -

 (862)

 (4,999)

Repurchase and cancellation

of shares

 (49)

 -

 -

 -

 (259)

 49

 -

 (259)

At 28 February 2018

 5,356

 10,253

 (10,770)

 (599)

 26,067

 291

 574

 31,172

 

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

 

 

Balance Sheet

 

As at 31 August 2018

 

 

31 August 2018 (unaudited)

£'000

31 August 2017 (unaudited)

£'000

28 February 2018

(audited)

£'000

Fixed assets

 

 

 

Investments at fair value through profit or loss

21,573

27,169

20,671

 

Current assets

 

 

 

Debtors

 580

584

 963

Cash

 2,493

4,345

 9,636

 

 3,073

4,929

10,599

Creditors

 

 

 

Amounts falling due within one year

 78

170

(98)

Net current assets

 2,995

4,759

 10,501

Net assets

 24,568

31,928

 31,172

 

Capital and reserves

 

 

 

Called up share capital

 5,312

5,380

 5,356

Share premium account

 10,253

10,253

 10,253

Capital reserve - realised

 (17,465)

(14,057)

 (10,770)

Capital reserve - unrealised

 (459)

3,156

 (599)

Special distributable reserve

 25,856

26,191

 26,067

Capital redemption reserve

 335

267

 291

Revenue reserve

 736

738

 574

Net assets attributable to Equity  Shareholders

24,568

31,928

31,172

 

Net asset value per Ordinary Share (pence)

 

46.25

 

59.34

 

58.20

 

The Financial Statements of Maven Income and Growth VCT PLC, registered number 3908220, were approved and authorised for issue by the Board of Directors on 26 October 2018 and were signed on its behalf by:

 

 

John Pocock

Director

 

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

 

 

Cash Flow Statement

 

For the Six Months Ended 31 August 2018

 

 

 

Six months ended

31 August 2018 (unaudited)

£'000

Six months ended

31 August 2017 (unaudited)

£'000

Year ended

28 February 2018

(audited)

£'000

Net cash flows from operating activities

(413)

(478)

(894)

Cash flows from investing activities

 

 

 

Investment income received

 298

451

 1,160

Deposit interest received

 7

6

 14

Purchase of investments

 (1,574)

(1,436)

 (2,810)

Sale of investments

 1,450

2,247

 10,323

Net cash flows from investing activities

181

1,268

8,687

 

Cash flows from financing activities

 

 

 

Equity dividends paid

(6,700)

(3,546)

(4,999)

Repurchase of Ordinary Shares

 (211)

-

 (259)

Net cash flows from financing activities

(6,911)

(3,546)

(5,258)

 

 

 

 

Net (decrease)/increase in cash

(7,143)

(2,756)

2,535

 

Cash at beginning of period

 

9,636

 

7,101

 

7,101

Cash at end of period

2,493

4,345

9,636

 

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 31 August 2018 and the six months ended 31 August 2017 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 28 February 2018, which have been filed at Companies House and contained an Auditor's Report that was not qualified and did not contain a statement under S498(2) or S498(3) of the Companies Act 2006.      

                                                           

2.    Reserves

 

Share premium account

The share premium account represents the premium above nominal value received by the Company on issuing shares net of issue costs.

 

Capital reserves

Gains or losses on investments realised in the year that have been recognised in the Income Statement are transferred to the capital reserve realised account on disposal. Furthermore, any prior unrealised gains or losses on such investments are transferred from the capital reserve unrealised account to the capital reserve realised account on disposal.

 

Increases and decreases in the fair value of investments are recognised in the Income Statement and are then transferred to the capital reserve unrealised account. The capital reserve realised account also represents capital dividends, capital investment management fees and the tax effect of capital items.

 

Special distributable reserve

The total cost to the Company of the repurchase and cancellation of shares is represented in the special distributable reserve account.

 

Capital redemption reserve

The nominal value of shares repurchased and cancelled is represented in the capital redemption reserve.

 

Revenue reserve

The revenue reserve represents accumulated profits retained by the Company that have not been distributed to Shareholders as a dividend.

 

3. Returns per Ordinary Share

Six months ended

31 August 2018

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

 

Weighted average number of Ordinary Shares

 53,284,591

 

Revenue return

£162,000

Capital return

£145,000

Total return

£307,000

 

 

 

Directors' Responsibility Statement

 

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

 

•      the Financial Statements for the six months ended 31 August 2018 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 28 February 2019; and

 

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

 

 Other Information

 

The NAV per Ordinary Share at 31 August 2018 has been calculated using the number of Ordinary Shares in issue of 53,118,884.

 

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 office of Maven Capital Partners UK LLP, Kintyre House, 205 West George Street, Glasgow G2 2LW and at the registered office of the Company, 5th Floor, 1-2 Royal Exchange Buildings, London EC3V 3LF.

 

Neither the content of the Company's website nor the contents of any website accessible from hyperlinks 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 October 2018

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR BLBDGXSDBGIU
UK 100

Latest directors dealings