Interim Management Statement 31 March 2016

RNS Number : 1319Z

Mobeus Income & Growth VCT PLC

24 May 2016

 

Mobeus Income & Growth VCT plc ("the Company")

INTERIM MANAGEMENT STATEMENT

For the quarter ended 31 March 2016

Mobeus Income & Growth VCT plc reports an Interim Management Statement for the quarter ended 31 March 2016. The statement also includes relevant financial information between the end of the period and the date of this statement.

NET ASSET VALUE AND TOTAL RETURN PER SHARE                                             

	At 31 March 2016	At 31 December 2015
Net assets attributable  to shareholders	£74,634,178	£74,105,850
Shares in issue	75,972,951	75,972,951
Net asset value (NAV) per share	98.24p	97.54p
Cumulative dividends paid	74.30p	74.30p
Cumulative Total return (net asset value basis) per share since inception	172.54p	171.84p
% return on initial NAV per share of  94.5 pence at inception in July 2004	82.6 %	81.8 %

The net asset value per share has increased by 0.70 pence over the quarter, due mainly to income returns for the quarter and receipt of deferred consideration in respect of Focus Pharma, an investment realised in a prior year.

DIVIDENDS

A final dividend of 7.00 pence per share comprising 6.00 pence from capital and 1.00 penny from income in respect of the year ended 31 December 2015 was approved by shareholders at the Company's Annual General Meeting held at 2.00 pm today, and will be paid on 31 May 2016. This is in addition to the interim dividend of 3.00 pence per share (comprising 2.00 pence from capital and 1.00 penny from income) paid to shareholders on 17 September 2015. Payment of this final dividend will bring total dividends paid in respect of 2015 to 10.00 pence per share and cumulative dividends paid since inception to 81.30 pence per share. Payment of the 7.00 pence per share final dividend will reduce the NAV per share above to 91.24 pence.

UPDATE ON VCT LEGISLATION ("new VCT Rules")

As noted in the Company's recent Annual Report, the new VCT Rules included measures that will change significantly the size and type of investments the Company can make.  The Company is no longer permitted to fund MBO investments, but has changed focus to provide growth and development capital to younger, earlier stage companies.  Further HMRC guidance on the detailed application of the new VCT Rules has been published recently, which the Investment Adviser is currently reviewing. 

NEW INVESTMENT

In February 2016, one of the VCT's companies preparing to trade invested £1.09 million into Redline Assured Security Limited, a market leader in the provision of security consultancy and training services to airlines, airports, governments and global distribution companies.

This is the first new investment made by the Company in compliance with the new VCT Rules.

NEW INVESTMENT POLICY

Shareholders also approved the Company's new Investment Policy at today's AGM. The new Policy was prepared in response to the new VCT Rules and enables the Company to continue making investments that comply with them.

DIVESTMENTS

There were no realisations in the period.  However, £0.03 million was received from Newquay Helicopters as an interim distribution resulting from a members' voluntary liquidation of the Company.  Further consideration of £0.60 million was received in respect of Focus Pharma, an investment realised in 2014.

LOAN STOCK REPAYMENTS 

The VCT received £1.10 million of loan repayments in the quarter, £1.00 million of which was a final loan stock repayment from Leap New Co Limited (trading as Ward Thomas Removals, Bishopsgate and Aussie Man & Van).

In April 2016, the VCT received further loan repayments from Jablite of £0.08 million.

SHARE BUYBACKS

The Company did not conduct any share buybacks during the period.  Following the period end in April 2016, the Company bought back 275,000 of its own shares at a price of 86 pence per share.  The buyback represented 0.4% of the issued share capital at the beginning of the year.

For further information, please contact:

Sarah Penfold, for Mobeus Equity Partners LLP, Company Secretary: 020 7024 7615.

 

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