TIDMIGV
RNS Number : 1504O
Income & Growth VCT (The) PLC
15 May 2018
THE INCOME & GROWTH VCT PLC
HALF YEAR REPORT FOR THE SIX MONTHSED 31
MARCH 2018
The Income & Growth VCT plc ("the Company")
today announces the half-year results for the
six months ended 31 March 2018.
As at 31 March 2018:
Net assets: GBP83.58 million
Net asset value ("NAV") per share: 79.28 pence
Financial Highlights
Results for the six months ended 31 March 2018
* Net asset value total return per share was 1.3% for
the six months.
* Share price total return per share was 1.4% for the
six months.
* The Board has declared an interim dividend in respect
of the current year of 2.50 pence per share to be
paid to shareholders on 21 June 2018.
* The Company made three new investments and three
follow-on investments totalling GBP3.10 million
during the six months.
Performance summary
The table below shows the recent past performance
of the Company's existing class of shares for
each of the last five years, and the current
year to date.
Reporting Net NAV Share Cumulative Cumulative Dividends
date assets per price(1) dividends total return paid
share paid per share and
per share to shareholders(2) proposed
in
respect
of each
As at year
----------- -------------------
(NAV (Share
basis) price
basis)
-----------
(GBP
m) (p) (p) (p) (p) (p) (p)
----------- -------- ------- ---------- ----------- ------- ---------- ----------
31 March
2018 83.58 79.28 71.00 105.50 184.78 176.50 2.50(4)
30
September
2017 64.35 81.24 73.00 102.50 183.74 175.50 21.00
30
September
2016 70.84 98.51 88.80 80.50 179.01 169.30 10.00
30
September
2015 75.20 106.38 93.50 68.50 174.88 162.00 12.00
30
September
2014 69.31 114.60 103.50(3) 50.50 165.10 154.00 18.00
30
September
2013 60.47 113.90 99.50 40.50 154.40 140.00 10.00
(1) Source: Panmure Gordon & Co (mid-market
price).
(2) Cumulative total return per share comprises
the NAV per share (NAV basis) or the mid-market
price per share (share price basis) plus cumulative
dividends paid since launch of the current share
class.
(3) The share price at 30 September 2014 has
been adjusted to add back the dividend of 8.00
pence per share paid on 30 October 2014, as
the listed share price was quoted ex this dividend
at the year-end.
(4) An interim dividend of 2.50 pence per share,
referred to in the Financial Highlights above,
is payable to shareholders on 21 June 2018.
Chairman's Statement
I am pleased to present the Company's Half-Year
Report for the six months ended 31 March 2018.
Overview
The half-year has again seen steady progress
and a small positive return for the period,
which is detailed in the Performance section
below, and a continuation in the rate of growth
capital investments made since the change in
Investment Policy approved by shareholders in
February 2016.
Twelve growth capital investments have now been
completed in accordance with the Investment
Policy, in response to the VCT legislation introduced
by the Finance (No 2) Act 2015. Most recently,
additional changes to VCT legislation that were
proposed in the 2017 Autumn Budget Statement
were enacted in March 2018. Further details
and comments on these changes are set out in
the Summary of VCT Regulations in the Half-Year
Report and under the 'Industry and regulatory
developments' section of my statement below.
The Investment Adviser continues to report a
healthy pipeline of growth capital opportunities.
Meanwhile, the existing MBO focused portfolio
constructed under the previous VCT rules has
continued to perform steadily.
We are delighted with the strong support from
investors for our recent fundraising, which
was fully subscribed in March. The Board appreciates
the continued support from existing shareholders
and at the same time welcomes new shareholders.
Performance
The Company's NAV total return per share was
1.3% for the six months to 31 March 2018 (2017:
2.0%) while the total share price return was
1.4% (2017: 1.9%).
The Cumulative NAV total return per share (being
the closing net asset value plus total dividends
paid to date) has increased to 184.78 pence
compared to 183.74 pence at the year end. This
represents an increase of 0.6% over the period.
Investment portfolio
The portfolio has performed satisfactorily during
the period, increasing in value by 1.2% (2017:
1.5%) on a like-for-like basis. The aggregate
portfolio saw a net increase of GBP1.81 million
in realised gains against GBP1.25 million in
unrealised losses over the six month period.
The portfolio was valued at GBP47.11 million
at the period-end (30 September 2017: GBP48.03
million).
During the six months under review, the Company
invested a total of GBP3.10 million, (2017:
GBP4.07 million, including GBP0.72 million via
a company preparing to trade) into six (2017:
five) investments. Three of these investments
were into new businesses; Proactive Investors,
a provider of investor media services; Super
Carers Limited, an online platform connecting
people seeking home care; and Hemmels Limited,
a restorer of classic cars.
The Company received cash proceeds of GBP4.63
million during the six month period, mostly
attributable to the sale of the Company's investment
in Gro-Group Holdings Limited in December 2017,
an excellent result.
Details of these transactions and the performance
of the portfolio are contained in the Investment
Review and the Investment Portfolio Summary
in the Half-Year Report.
Revenue account
The results for the period are set out in the
Unaudited Condensed Income Statement and show
a revenue return (after tax) of 0.92 pence per
share (2017: 1.42 pence per share). The revenue
return for the period of GBP0.86 million has
decreased from last year's comparable figure
of GBP1.02 million. This decrease is mainly
due to a fall in income receivable arising from
the realisation of Entanet as well as a provision
against loan interest receivable for two companies
which are currently experiencing a challenging
trading environment.
Dividends
The Board continues to be committed to endeavouring
to provide an attractive dividend stream to
shareholders, and is pleased to declare an interim
dividend of 2.50 pence per share for the year
ending 30 September 2018, comprising 0.80 pence
from income and 1.70 pence from capital. This
dividend will be paid on 21 June 2018 to shareholders
on the Register on 25 May 2018 and will bring
cumulative dividends paid per share to 108.00
pence.
Shareholders are encouraged to ensure that Link,
the Company's Registrar, has up-to-date details
for them and to check whether they have received
all dividends payable to them. We are aware
that a number of dividends remain unclaimed
by shareholders and whilst we continue to endeavour
to contact shareholders if this is the case,
we cannot guarantee that we will be able to
do so if the Registrars do not have up-to-date
contact details.
Dividend Investment Scheme
The Company's Dividend Investment Scheme ("the
Scheme") is a convenient, easy and cost effective
way for shareholders to build up their shareholding
in the Company. Instead of receiving cash dividends,
shareholders can elect to receive new shares
in the Company. By opting to receive a dividend
in this manner, there are three benefits to
shareholders:
* The dividend remains tax free;
* Shareholders are allotted new shares in the Company
which will, subject to their particular circumstances,
attract VCT tax reliefs applicable for the tax year
in which the shares are allotted. The tax relief
currently available to investors in new VCT shares is
30% for the 2018/19 tax year for investments up to
GBP200,000 in any one tax year; and
* The Scheme also has one particular advantage. Under
its terms, a member is able to re-invest at an
advantageous price, being the average market price of
the shares for the five business days prior to the
dividend being paid. This price is likely to be at a
discount of 10% to the underlying net asset value
(provided that this is greater than 70% of the latest
published net asset value per share).
Shareholders wishing to join the Scheme should
submit a mandate form to Link Asset Services,
the Scheme Administrator, by no later than,
Wednesday, 6 June 2018, to ensure that they
receive the above dividend as shares. Details
of where to obtain an application form can be
found under Shareholder Information in the Half-Year
Report.
Industry and regulatory developments
As mentioned in my overview, the 2017 Autumn
Budget Statement outlined the key findings from
the Patient Capital Review, which was tasked
with identifying and tackling factors considered
to be adversely affecting the supply of longer-term
capital to small and developing firms. These
findings have resulted in a number of legislative
changes to the VCT scheme which include measures
to exclude purely tax motivated investments
where capital is not at risk (that is, principally
seeking to preserve investors' capital) and
to encourage VCTs to put their funds to work
faster.
Your Board notes these changes, some of which
place further restrictions on the way investments
may be structured. However, they are not expected
to materially affect the Company's present investment
approach.
A summary of the current VCT regulations is
included in the Summary of VCT Regulations in
the Half-Year Report.
Liquidity
The recent fundraising round, which closed fully
subscribed in March 2018 raising GBP25 million,
has provided the Company with sufficient liquidity
to meets its cash needs and maintain the current
rate of investment in the medium term. It is
unlikely the Company will seek to raise further
funds in the current 2018/19 tax year.
Cash available for investment
The Board continues to monitor credit risk in
respect of its cash balances and to prioritise
the security and protection of the Company's
capital. Cash and liquidity fund balances as
at 31 March 2018 amounted to GBP35.95 million.
This figure included GBP31.32 million held in
money market funds with AAA credit ratings and
GBP4.63 million held in deposit accounts with
a number of well-known financial institutions
across a range of maturities. In addition, the
investment portfolio contained GBP1.82 million
in companies preparing to trade that also hold
cash in money market funds.
Share buy-backs
During the six months ended 31 March 2018, the
Company bought back and cancelled 1,173,968
of its own shares, representing 1.5% (2017:
0.1%) of the shares in issue at the beginning
of the period, at a total cost of GBP0.85 million
(2017: GBP0.03 million) inclusive of expenses.
It is the Company's policy to cancel all shares
bought back in this way. The Board regularly
reviews its buyback policy and currently seeks
to maintain the discount at which the Company's
shares trade at around 10% below the latest
published NAV.
Shareholder communications
May I remind you that the Company has its own
website which is available at www.incomeandgrowthvct.co.uk.
The Investment Adviser held its eighth annual
Shareholder Event in January 2018 which, from
the feedback submitted, was well received by
Shareholders. The event included presentations
on the investment activity and performance of
all the Mobeus VCTs. I would like to thank those
Shareholders who attended for helping to make
it a success. The next Event will take place
in February 2019 and Shareholders will be sent
further details and an invitation nearer the
time.
Outlook
UK growth is expected to remain modest due to
subdued real consumer spending growth. The environment
is characterised by uncertainty which in turn
will lead to continuing economic volatility.
The invested portfolio is well positioned against
this backdrop as it is robustly funded using
conservative levels of third party bank debt
alongside the Company's funds. UK interest rates
are forecast to remain at low levels, albeit
some small rises are predicted for the balance
of the year. We believe that there is unlikely
to be a step change in economic outlook until
there is greater clarity on the UK's post-Brexit
relationship with the EU.
Your Board remains of the opinion that your
Company is well positioned to take advantage
of the strong demand for growth capital investment,
despite the uncertainties faced within the UK
economy. The portfolio has a solid foundation
of investments made under the previous MBO strategy,
and the Investment Adviser continues to source
interesting growth capital investment opportunities
to complement the portfolio. Mobeus has continued
to recruit additional experienced growth capital
investors into its team.
Once again, I would like to take this opportunity
to thank all Shareholders for their continued
support.
Colin Hook
Chairman
15 May 2018
Investment Policy
The Company's policy is to invest primarily
in a diverse portfolio of UK unquoted companies.
Investments are generally structured as part
loan and part equity in order to receive regular
income and to generate capital gain upon sale.
Investments are made selectively across a number
of sectors, principally in established companies.
The Company's cash and liquid resources are
held in a range of instruments of varying maturities,
subject to the overriding criterion that the
risk of loss of capital be minimised.
VCT regulation
The Investment Policy is designed to ensure
that the Company continues to qualify and is
approved as a VCT by HMRC.
Amongst other conditions, the Company may not
invest more than 15% of its investments (by
VCT value at the time of investment) in a single
company or group and must have at least 70%
by VCT value of its investments throughout the
period in shares or securities comprised in
VCT qualifying holdings of which a minimum overall
of 30% by VCT value (70% for funds raised after
6 April 2011) must be in ordinary shares which
carry no preferential rights (save as may be
permitted under VCT rules). In addition, although
the VCT can invest less than 30% (70% for funds
raised after 6 April 2011) of an investment
in a specific company in ordinary shares it
must have at least 10% by VCT value of its total
investments in each VCT qualifying company in
ordinary shares which carry no preferential
rights (save as may be permitted under VCT rules).
The companies in which investments are made
must have no more than GBP15 million of gross
assets at the time of investment and GBP16 million
immediately following the investment to be classed
as a VCT qualifying holding.
Asset Mix
The Company initially holds its funds in a portfolio
of interest bearing investments and deposits.
The investment portfolio of qualifying investments
is built up over a three year period with the
aim of investing and maintaining at least 70%
of net funds raised in qualifying investments.
Risk diversification and maximum exposures
Risk is spread by investing in a number of different
businesses across different industry sectors.
To reduce the risk of high exposure to equities,
each qualifying investment is structured to
achieve the optimum balance between loan stock
and equity to provide protection against downside
risk alongside the best potential overall returns.
Co-investment
The Company is entitled to invest alongside
other VCTs advised by Mobeus Equity Partners
LLP that have a similar investment policy, normally
on a pro rata to net assets basis.
Borrowing
The Company's articles of association permit
borrowing of up to 10% of the adjusted capital
and reserves (as defined therein). However,
it has never borrowed and the Board has currently
no plans to undertake any borrowing.
Investment Review
New investments in the half-year
A total of GBP1.77 million was invested into
three new investments during the period under
review as detailed below.
Company Business Date of Investment Amount of
new investment
(GBPm)
-------------- ----------------- -------------------- ----------------
Proactive Investor
Investors media services January 2018 0.45
-------------- ----------------- -------------------- ----------------
Proactive Investors specialises in up-to-the-minute
multi-media news provision, events organisation,
digital services and investor research. Proactive
provides breaking news, commentary and analysis
on hundreds of small-cap listed companies and
pre-IPO businesses across the globe, 24/7.
The investment will enable Proactive to expand
its services into the US market, which is the
largest global market in the world. The company's
audited accounts for the year ended 30 June
2017 show turnover of GBP3.99 million and a
profit before interest, tax and amortisation
of goodwill of GBP0.53 million.
-------------------------------------------------------------------------
Online care
Super Carers provision March 2018 0.65
-------------- ----------------- -------------------- ----------------
Super Carers provides an online platform connecting
people, typically family members seeking home
care for their elderly parents, with independent
carers. Carers and care-seekers manage care
directly thus reducing the administrative burden
and the need for care managers, enabling care
to be delivered with greater flexibility and
more cost effectively. The company's audited
accounts for the year ended 31 March 2017 show
revenues of GBP0.18 million and a loss before
interest, tax and amortisation of GBP0.72 million.
-------------------------------------------------------------------------
Classic car
Hemmels restoration March 2018 0.67
-------------- ----------------- -------------------- ----------------
Hemmels specialises in the sourcing, restoration,
selling and servicing of high value classic
cars. Hemmels currently focusses on classic
Mercedes Benz, and plans to expand into the
Porsche marque under a separate brand. The
investment will enable Hemmels to proceed with
its expansion plans and secure sufficient development
stock. Hemmels generated GBP1.21 million of
revenues and a GBP0.28 million loss before
interest, tax and amortisation in the year
ended 31 December 2017.
-------------------------------------------------------------------------
Further investments in existing portfolio companies
in the half-year
A total of GBP1.33 million was invested into
three existing portfolio companies during the
period under review as detailed below.
Company Business Date of Investment Amount of
new investment
(GBPm)
------------------ -------------------- -------------------- ----------------
A provider
of direct
booking systems
to major November
BookingTek hotel groups 2017 0.09
------------------ -------------------- -------------------- ----------------
London-based BookingTek provides software
that enables hotels to reduce their reliance
on third-party booking systems through an
enterprise-grade, real-time booking platform
for meeting rooms and restaurant reservations.
BookingTek's existing clients include two
of the world's top 10 hotel groups and the
UK's largest hotel chain. The company's latest
audited accounts for the year ended 31 July
2016 show turnover of GBP2.03 million and
a loss before interest, tax and amortisation
of goodwill of GBP0.29 million.
--------------------------------------------------------------------------------
Online marketplace December
for used 2017 and
camera and February
MPB video equipment 2018 0.62
------------------ -------------------- -------------------- ----------------
Mpb is Europe's leading online marketplace
for used camera and video equipment. Based
in Brighton, its custom-designed pricing technology
enables Mpb to offer both buy and sell services
through the same platform and offers a one-stop
shop for all its customers. Having expanded
into the US (opening a New York office) and
German markets as part of the initial VCT
investment round, this follow-on investment,
alongside funds provided by the Proven VCTs,
is to support its continued growth plan. Having
doubled its sales over the last year, this
investment will give the company sufficient
capital to achieve its next planned expansion.
The company's latest audited accounts for
the year ended 31 March 2017 show turnover
of GBP13.20 million and a loss before interest,
tax and amortisation of goodwill of GBP0.45
million.
--------------------------------------------------------------------------------
Restaurant
Tapas Revolution chain March 2018 0.62
------------------ -------------------- -------------------- ----------------
Based in London, Tapas Revolution is a leading
Spanish restaurant chain in the casual dining
sector focussing on shopping centre sites
with high footfall. Having opened its first
restaurant in Shepherd's Bush Westfield, with
the support of the initial VCT investment
in 2017, the business now operates six established
restaurants. This follow on investment is
to finance the opening of several new locations
around the UK. The company's latest audited
accounts for the year ended 25 October 2016
show a turnover of GBP4.25 million and a loss
before interest, tax and amortisation of goodwill
of GBP0.25 million.
--------------------------------------------------------------------------------
Realisation in the half-year
The Company realised its investment in Gro-Group
Holdings during the period under review, generating
cash proceeds totalling GBP4.33 million as detailed
below.
Company Business Period of Total cash
investment proceeds
over the
life of the
investment
/ Multiple
over cost
---------- ----------------- ------------- ----------------
Gro-Group Manufacturer March 2013 GBP5.43 million
and distributor to December 2.3 times
of baby sleep 2017 cost
products
---------- ----------------- ------------- ----------------
The Company sold its investment in Gro-Group
for GBP4.19 million in December 2017. Since
this date, deferred consideration of GBP0.14
million has also been received. Including
this deferred consideration, the Company has
realised a gain over the life of the investment
of GBP3.03 million. This equates to a multiple
of 2.3 times the investment cost of GBP2.40
million and an IRR of 21%.
--------------------------------------------------------------
Loan stock repayments and other receipts
Loan stock repayments totalled GBP0.16 million
for the period, all from TPSFF Holdings Limited
(formerly Plastic Surgeon). Other receipts of
GBP0.14 million were also received; primarily
from Alaric Systems, a company realised in a
prior period.
Investment Portfolio Summary
as at 31 March 2018
Total Valuation Additional Valuation
cost at at at
31 March 30 September investments 31 March
2018 2017 2018
(unaudited) in the
period
(unaudited)
(audited)
GBP GBP GBP GBP
-------------------------- ------------- ------------- ------------ -------------
Tovey Management
Limited (trading
as Access
IS) 3,313,932 3,880,197 - 3,812,894
Provider
of data
capture
and scanning
hardware
------------------------- -------------- ------------- ------------ -------------
Manufacturing
Services Investment
Limited (trading
as Wetsuit
Outlet) 3,205,182 3,205,182 - 3,205,182
Online retailer
in the water
sports market
-------------------------- ------------- ------------- ------------ -------------
Virgin Wines
Holding Company
Limited 2,745,503 3,483,880 - 2,954,610
Online wine
retailer
-------------------------- ------------- ------------- ------------ -------------
ASL Technology
Holdings Limited 2,722,106 2,845,619 - 2,766,762
Printer and
photocopier
services
-------------------------- ------------- ------------- ------------ -------------
EOTH Limited
(trading as
Equip Outdoor
Technologies) 1,383,313 1,809,879 - 2,576,214
Distributor
of branded
outdoor equipment
and clothing
including
the Rab and
Lowe Alpine
brands
-------------------------- ------------- ------------- ------------ -------------
Media Business
Insight Holdings
Limited 3,666,556 2,443,888 - 2,226,136
A publishing
and events
business focussed
on the creative
production
industries
-------------------------- ------------- ------------- ------------ -------------
MPB Group
Limited 1,423,974 1,023,613 619,119 2,178,431
Online marketplace
for used photographic
equipment
-------------------------- ------------- ------------- ------------ -------------
CGI Creative
Graphics International
Limited 1,943,948 1,301,638 - 2,004,548
Vinyl graphics
to global
automotive,
recreation
vehicle and
aerospace
markets
-------------------------- ------------- ------------- ------------ -------------
Preservica
Limited 935,000 935,000 - 1,666,214
Seller of
proprietary
digital archiving
software
-------------------------- ------------- ------------- ------------ -------------
Vian Marketing
Limited (trading
as Red Paddle
Co) 1,207,437 1,906,790 - 1,662,334
Design, manufacture
and sale of
stand-up paddleboards
and windsurfing
sails
-------------------------- ------------- ------------- ------------ -------------
Tharstern
Group Limited 1,454,278 1,770,484 - 1,634,822
Software based
management
Information
systems for
the printing
industry
-------------------------- ------------- ------------- ------------ -------------
Master Removers
Group Limited
(trading as
Anthony Ward
Thomas, Bishopsgate
and Aussie
Man & Van) 682,183 1,379,326 - 1,613,649
A specialist
logistics,
storage and
removals business
-------------------------- ------------- ------------- ------------ -------------
Ibericos Etc.
Limited (trading
as Tapas Revolution) 1,397,386 776,386 621,000 1,469,615
Spanish restaurant
chain
-------------------------- ------------- ------------- ------------ -------------
Pattern Analytics
Limited (trading
as Biosite) 857,014 857,014 - 1,285,521
Workforce
management
and security
services for
the construction
industry
-------------------------- ------------- ------------- ------------ -------------
BookingTek
Limited 872,646 779,095 93,551 1,235,289
Software for
hotel groups
-------------------------- ------------- ------------- ------------ -------------
I-Dox plc 453,881 2,687,629 - 1,229,226
Developer
and supplier
of knowledge
management
products
-------------------------- ------------- ------------- ------------ -------------
Bourn Bioscience
Limited 1,610,379 925,420 - 1,188,206
Management
of In-vitro
fertilisation
clinics
-------------------------- ------------- ------------- ------------ -------------
Redline Worldwide
Limited 1,129,121 1,145,887 - 1,140,424
Provider of
security services
to the aviation
industry and
other sectors
-------------------------- ------------- ------------- ------------ -------------
Buster and
Punch Holdings
Limited (formerly
Chatfield
Services Limited) 725,226 725,226 - 920,492
Industrial
inspired lighting
and interiors
retailer
-------------------------- ------------- ------------- ------------ -------------
Turner Topco
Limited (trading
as ATG Media) 1,529,075 1,209,162 - 900,160
Publisher
and online
auction platform
operator
-------------------------- ------------- ------------- ------------ -------------
Aquasium Technology
Limited 166,667 706,592 - 850,225
Manufacturing
and marketing
of bespoke
electron beam
welding and
vacuum furnace
equipment
-------------------------- ------------- ------------- ------------ -------------
TPSFF Holdings
Limited (formerly
The Plastic
Surgeon Holdings
Limited) 105,533 765,694 - 757,276
Supplier of
snagging and
finishing
services to
the property
sector
-------------------------- ------------- ------------- ------------ -------------
RDL Corporation
Limited 1,441,667 1,072,527 - 743,145
Recruitment
consultants
within the
pharmaceutical,
business intelligence
and IT industries
-------------------------- ------------- ------------- ------------ -------------
Hemmels Limited 671,203 - 671,203 671,203
Sourcing and
restoration
of classic
cars
-------------------------- ------------- ------------- ------------ -------------
Vectair Holdings
Limited 53,400 601,006 - 655,985
Designer and
distributor
of washroom
products
-------------------------- ------------- ------------- ------------ -------------
Super Carers
Limited 649,528 - 649,528 649,528
Online introductory
platform connecting
local individuals
with carers
-------------------------- ------------- ------------- ------------ -------------
Fullfield
Limited (trading
as Motorclean) 1,517,734 1,606,346 - 642,445
Vehicle cleaning
and valet
services
-------------------------- ------------- ------------- ------------ -------------
My TutorWeb
Limited 636,477 636,477 - 636,477
Digital marketplace
connecting
school pupils
seeking one-to-one
online tutoring
-------------------------- ------------- ------------- ------------ -------------
Hollydale
Management
Limited 994,560 621,600 - 621,600
Company seeking
to carry on
a business
in the food
sector
-------------------------- ------------- ------------- ------------ -------------
Blaze Signs
Holdings Limited 418,281 438,320 - 596,272
Manufacturer
and installer
of signs
-------------------------- ------------- ------------- ------------ -------------
Proactive
Group Holdings
Inc 449,514 - 449,514 449,514
Media Services
and investor
conferences
-------------------------- ------------- ------------- ------------ -------------
Omega Diagnostics
Group plc 280,026 501,682 - 338,344
In-vitro diagnostics
for food intolerance,
autoimmune
diseases and
infectious
diseases
-------------------------- ------------- ------------- ------------ -------------
Jablite Holdings
Limited 498,790 304,755 - 304,755
Manufacturer
of expanded
polystyrene
products
-------------------------- ------------- ------------- ------------ -------------
Backhouse
Management
Limited 782,080 300,800 - 300,800
Company seeking
to carry on
a business
in the motor
sector
-------------------------- ------------- ------------- ------------ -------------
Barham Consulting
Limited 782,080 300,800 - 300,800
Company seeking
to carry on
a business
in the catering
sector
-------------------------- ------------- ------------- ------------ -------------
Creasy Marketing
Services Limited 782,080 300,800 - 300,800
Company seeking
to carry on
a business
in the textile
sector
-------------------------- ------------- ------------- ------------ -------------
McGrigor Management
Limited 782,080 300,800 - 300,800
Company seeking
to carry on
a business
in the pharmaceutical
sector
-------------------------- ------------- ------------- ------------ -------------
Veritek Global
Holdings Limited 2,289,859 1,752,129 - 243,641
Maintenance
of imaging
equipment
-------------------------- ------------- ------------- ------------ -------------
LightWorks
Software Limited 20,471 87,596 - 48,669
Provider of
software for
CAD and CAM
vendors
-------------------------- ------------- ------------- ------------ -------------
BG Training
Limited 53,125 26,563 - 26,563
Technical
training business
-------------------------- ------------- ------------- ------------ -------------
Corero Network
Security plc 600,000 7,866 - 5,408
Provider of
e-business
technologies
-------------------------- ------------- ------------- ------------ -------------
Oxonica Limited 2,524,527 - - -
International
nanomaterials
group
-------------------------- ------------- ------------- ------------ -------------
Racoon International 655,851 - - -
Group Limited
(formerly
Racoon International
Holdings)
Supplier of
hair extensions,
hair care
products and
training
-------------------------- ------------- ------------- ------------ -------------
NexxtDrive 487,014 - - -
Limited/Nexxt
E-drive Limited
Developer
and exploiter
of mechanical
transmission
technologies
-------------------------- ------------- ------------- ------------ -------------
CB Imports 175,000 - - -
Group Limited
(trading as
Country Baskets)
Importer and
distributor
of artificial
flowers, floral
sundries and
home decor
products
-------------------------- ------------- ------------- ------------ -------------
Biomer Technology 137,170 - - -
Limited
Developer
of biomaterials
for medical
devices
-------------------------- ------------- ------------- ------------ -------------
Newquay Helicopters 15,234 - - -
(2013) Limited
(in liquidation)
Helicopter
service operator
-------------------------- ------------- ------------- ------------ -------------
Watchgate 1,000 - - -
Limited
Holding company
-------------------------- ------------- ------------- ------------ -------------
Realised investments
Gro-Group - 2,606,640 - -
Holdings Limited
Baby sleep
products
Total 51,229,091 48,030,308 3,103,915 47,114,979
-------------------------- ------------- ------------- ------------ -------------
Statement of the Directors' Responsibilities
Responsibility statement
In accordance with Disclosure and Transparency
Rule (DTR) 4.2.10, Colin Hook (Chairman), Jonathan
Cartwright (Chairman of the Audit and Nomination
& Remuneration Committees) and Helen Sinclair
(Chairman of the Investment Committee), being
the Directors of the Company, confirm that to
the best of their knowledge:
(a) The condensed set of financial statements,
which has been prepared in accordance with
Financial Reporting Standard 104 "Interim
Financial Reporting" gives a true and fair
view of the assets, liabilities, financial
position and profit of the Company as required
by DTR 4.2.10;
(b) the Half-Year Management Report, which
comprises the Chairman's Statement, Investment
Policy, Investment Review and Investment
Portfolio Summary, includes a fair review
of the information required by DTR 4.2.7,
being an indication of important events
that have occurred during the first six
months of the financial year and their
impact on the condensed set of financial
statements;
(c) a description of the principal risks and
uncertainties facing the Company for the
remaining six months is set out below,
in accordance with DTR 4.2.7; and
(d) there were no related party transactions
in the first six months of the current
financial year that are required to be
disclosed, in accordance with DTR 4.2.8.
Principal risks and uncertainties
In accordance with DTR 4.2.7, the Board confirms
that the principal risks and uncertainties facing
the Company have not materially changed from
those identified in the Annual Report and Financial
Statements for the year ended 30 September 2017
("the Annual Report").
The principal risks faced by the Company are:
-- Investment and strategic
-- Loss of approval as a Venture Capital Trust;
-- Regulatory;
-- Counterparty;
-- Economic;
-- Financial and operating;
-- Market;
-- Asset liquidity; and
-- Market liquidity;
A detailed explanation of the principal risks
facing the Company can be found in the Annual
Report on pages 25 and 26, and in Note 16 on
Financial Instruments on pages 60 to 67. Copies
can be viewed or downloaded from the Company's
website: www.incomeandgrowthvct .co.uk.
Going Concern
The Board has assessed the Company's operation
as a going concern. The Company's business activities,
together with the factors likely to affect its
future development, performance and position
are set out in the Half-Year Management Report.
The Directors have satisfied themselves that
the Company continues to maintain a significant
cash position. The majority of companies in
the portfolio continue to trade profitably and
the portfolio taken as a whole remains resilient
and well-diversified. The major cash outflows
of the Company (namely investments, share buybacks
and dividends) are within the Company's control.
The Board's assessment of liquidity risk and
details of the Company's policies for managing
its capital and financial risks are shown in
Note 16 on pages 60 to 67 of the Annual Report.
Accordingly, the Directors continue to adopt
the going concern basis of accounting in preparing
the half-year report and financial statements.
Cautionary Statement
This report may contain forward looking statements
with regards to the financial condition and
results of the Company, which are made in the
light of current economic and business circumstances.
Nothing in this report should be construed as
a profit forecast.
For and on behalf of the Board:
Colin Hook
Chairman
15 May 2018
Unaudited Condensed Income Statement
for the six months ended 31 March 2018
Six months ended Six months ended
31 March 2018 31 March 2017
(unaudited) (unaudited)
Notes Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP
--------------- ------ ---------- ------------ ------------ ---------- ---------- ----------
Unrealised
(losses)
/ gains
on
investments
held at
fair value 9 - (1,251,618) (1,251,618) - 725,815 725,815
Realised
gains on
investments
held at
fair value 9 - 1,810,102 1,810,102 - 69,100 69,100
Income 4 1,476,579 - 1,476,579 1,640,297 - 1,640,297
Investment
Adviser's
fees 5 (205,694) (617,082) (822,776) (197,406) (592,219) (789,625)
Other expenses (234,496) - (234,496) (206,829) - (206,829)
--------------- ------ ---------- ------------ ------------ ---------- ---------- ----------
Profit /
(loss) on
ordinary
activities
before
taxation 1,036,389 (58,598) 977,791 1,236,062 202,696 1,438,758
Tax on
profit/(loss)
on ordinary
activities 6 (173,800) 173,800 - (211,109) 211,109 -
--------------- ------ ---------- ------------ ------------ ---------- ---------- ----------
Profit for
the period
and total
comprehensive
income 862,589 115,202 977,791 1,024,953 413,805 1,438,758
--------------- ------ ---------- ------------ ------------ ---------- ---------- ----------
Basic and
diluted
earnings
per ordinary
share 7 0.92p 0.12p 1.04p 1.42p 0.57p 1.99p
Year ended 30
September 2017
(audited)
Notes Revenue Capital Total
GBP GBP GBP
---------------------- ------ ---------- ------------ ------------
Unrealised
(losses)
/ gains on
investments
held at fair
value - (794,007) (794,007)
Realised
gains on
investments
held at fair
value - 3,883,829 3,883,829
Income 4 3,266,634 - 3,266,634
Investment
Adviser's
fees 5 (394,012) (1,182,037) (1,576,049)
Investment
Adviser's
performance
fees 5 - (571,879) (571,879)
Other expenses (423,354) - (423,354)
---------------------- ------ ---------- ------------ ------------
Profit /
(loss) on
ordinary
activities
before taxation 2,449,268 1,335,906 3,785,174
Tax on profit/(loss)
on ordinary
activities 6 (421,283) 421,283 -
---------------------- ------ ---------- ------------ ------------
Profit for
the period
and total
comprehensive
income 2,027,985 1,757,189 3,785,174
---------------------- ------ ---------- ------------ ------------
Basic and
diluted earnings
per ordinary
share 7 2.79p 2.42p 5.21p
The revenue column of the Income Statement includes
all income and expenses. The capital column
accounts for the unrealised (losses)/gains and
realised gains on investments and the proportion
of the Investment Adviser's fee and performance
fee charged to capital.
The total column is the Statement of Total Comprehensive
Income of the Company prepared in accordance
with Financial Reporting Standards ("FRS").
In order to better reflect the activities of
a VCT and in accordance with the 2014 Statement
of Recommended Practice ("SORP") issued by the
Association of Investment Companies ("AIC")
and updated in January 2017, supplementary information
which analyses the Income Statement between
items of a revenue and capital nature has been
presented alongside the Income Statement. The
revenue column of profit attributable to equity
shareholders is the measure the Directors believe
appropriate in assessing the Company's compliance
with certain requirements set out in Section
274 Income Tax Act 2007.
All the items in the above statement derive
from continuing operations of the Company. No
operations were acquired or discontinued in
the period.
Unaudited Condensed Balance Sheet
as at 31 March 2018
31 March 31 March 30 September
2018 2017 2017
(unaudited) (unaudited)
(audited)
Notes GBP GBP GBP
------------------------- ------ ------------- ------------- -------------
Fixed assets
Investments at
fair value 9 47,114,979 51,896,586 48,030,308
Current assets
Debtors and prepayments 718,466 455,875 3,372,032
Current asset
investments 10 34,467,981 9,891,458 12,412,671
Cash at bank 10 1,483,126 7,805,131 1,375,065
------------------------- ------ ------------- ------------- -------------
36,669,573 18,152,464 17,159,768
Creditors: amounts
falling due within
one year (199,647) (167,622) (841,325)
Net current assets 36,469,926 17,984,842 16,318,443
------------------------- ------ ------------- ------------- -------------
Net assets 83,584,905 69,881,428 64,348,751
------------------------- ------ ------------- ------------- -------------
Capital and reserves
Called up share
capital 1,054,360 724,688 792,047
Capital redemption
reserve 25,754 12,313 14,014
Share premium
reserve 45,949,915 18,809,469 24,099,311
Revaluation reserve 2,484,528 5,645,322 4,020,689
Special distributable
reserve 21,727,185 24,404,104 23,215,643
Realised capital
reserve 9,878,415 18,129,188 10,134,703
Revenue reserve 2,464,748 2,156,344 2,072,344
------------------------- ------ ------------- ------------- -------------
Equity Shareholders'
funds 83,584,905 69,881,428 64,348,751
------------------------- ------ ------------- ------------- -------------
Basic and diluted
net asset value:
Basic and diluted
net asset value
per share 11 79.28p 96.43p 81.24p
Unaudited Condensed Statement of Changes in
Equity
for the six months ended 31 March 2018
Non-distributable Distributable Total
reserves reserves
Called Capital Share Revaluation Special Realised Revenue
up redemption premium reserve distributable capital reserve
share reserve reserve reserve reserve
capital (note (note (note
a) b) b)
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ---------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
At 1
October
2017 792,047 14,014 24,099,311 4,020,689 23,215,643 10,134,703 2,072,344 64,348,751
Comprehensive
income
for the
period
(Loss)/profit
for the
period - - - (1,251,618) - 1,366,820 862,589 977,791
--------------- ---------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
Total
comprehensive
income
for the
period - - - (1,251,618) - 1,366,820 862,589 977,791
--------------- ---------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
Contributions
by and
distributions
to owners
Share
offered
via Offer
for
Subscription
(Note
c) 266,076 - 21,293,047 - (199,395) - - 21,359,728
Dividends
reinvested
into
new shares 7,977 - 557,557 - - - - 565,534
Shares
bought
back
(Note
d) (11,740) 11,740 - - (845,781) - - (845,781)
Dividends
paid - - - - - (2,350,933) (470,185) (2,821,118)
--------------- ---------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
Total
contributions
by and
distributions
to owners 262,313 11,740 21,850,604 - (1,045,176) (2,350,933) (470,185) 18,258,363
--------------- ---------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
Other
movements
Realised
losses
transferred
to special
reserve
(Note
a) - - - - (443,282) 443,282 - -
Realisation
of previously
unrealised
appreciation - - - (284,543) - 284,543 - -
--------------- ---------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
Total
other
movements - - - (284,543) (443,282) 727,825 - -
--------------- ---------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
At 31
March
2018 1,054,360 25,754 45,949,915 2,484,528 21,727,185 9,878,415 2,464,748 83,584,905
--------------- ---------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
Note a): The Special distributable reserve also
provides the Company with a reserve to absorb
any existing and future realised losses and,
when considered by the Board to be in the interests
of shareholders, to fund share buybacks and
for other corporate purposes. All of this reserve
originates from funds raised prior to 6 April
2014. The transfer of GBP443,282 to the special
reserve from the realised capital reserve above
is the total of realised losses incurred by
the Company in the period.
Note b): The realised capital reserve and the
revenue reserve together comprise the Profit
and Loss Account of the Company.
Note c): Under the 2017/18 Offer, 26,607,590
shares were allotted during the period, raising
net funds of GBP21,359,728 for the Company.
This figure differs from that shown in the Statement
of Cash Flows by GBP2,946,209, which are the
net funds raised under the first allotment that
took place on 28 September 2017. These funds
were held in debtors at the previous year end
and received in the current period.
Note d): During the period, the Company repurchased
1,173,968 of its own shares at the prevailing
market price for a total cost (including stamp
duty) of GBP845,781, which were subsequently
cancelled. This differs to the figure shown
in the Statement of Cash Flows by GBP82,638.
This amount was included in creditors at the
previous year end.
Unaudited Condensed Statement of Changes in
Equity
for the six months ended 31 March 2017
Non-distributable Distributable
reserves reserves
Called Capital Share Revaluation Special Realised Revenue Total
up redemption premium reserve distributable capital reserve
share reserve reserve reserve reserve
capital
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- -------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
At 1
October
2016 719,140 11,985 18,308,887 4,744,396 24,980,045 20,225,980 1,850,205 70,840,638
Comprehensive
income
for
the
period
Profit/(loss)
for
the
period - - - 725,815 - (312,010) 1,024,953 1,438,758
Total
comprehensive
income
for
the
period - - - 725,815 - (312,010) 1,024,953 1,438,758
--------------- -------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
Contributions
by and
distributions
to owners
Dividends
re-invested
into
new
shares 5,876 - 500,582 - - - - 506,458
Shares
bought
back (328) 328 - - (29,170) - - (29,170)
Dividends
paid - - - - - (2,156,442) (718,814) (2,875,256)
Total
contributions
by and
distributions
to owners 5,548 328 500,582 - (29,170) (2,156,442) (718,814) (2,397,968)
--------------- -------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
Other
movements
Realised
losses
transferred
to special
reserve - - - - (546,771) 546,771 - -
Realisation
of previously
unrealised
depreciation - - - 175,111 - (175,111) - -
Total
other
movements - - - 175,111 (546,771) 371,660 - -
--------------- -------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
At 31
March
2017 724,688 12,313 18,809,469 5,645,322 24,404,104 18,129,188 2,156,344 69,881,428
--------------- -------- ----------- ----------- ------------ -------------- ------------ ---------- ------------
Unaudited Condensed Statement of Cash Flows
for the six months ended 31 March 2018
Six months Six months
ended ended
31 March 31 March Year ended
2018 2017 30 September
Notes (unaudited) (unaudited) 2017 (audited)
GBP GBP GBP
--------------------------- ------ ------------- ------------- ----------------
Cash flows from
operating activities
Profit for the
financial period 977,791 1,438,758 3,785,174
Adjustments for:
Net unrealised
losses/(gains)
on investments 1,251,618 (725,815) 794,007
Realised gains
on realisations
on investments (1,810,102) (69,100) (3,883,829)
Increase in debtors (228,772) (150,940) (120,887)
Decrease in creditors
and accruals (559,039) (1,152,217) (561,152)
--------------------------- ------ ------------- ------------- ----------------
Net cash (outflow)/inflow
from operating
activities (368,504) (659,314) 13,313
--------------------------- ------ ------------- ------------- ----------------
Cash flows from
investing activities
Purchase of investments 9 (3,103,915) (3,347,495) (5,304,234)
Disposal of investments 9 4,513,856 6,610,782 14,728,706
No change/decrease
in bank deposits
with a maturity
over three months - 2,028,243 2,028,243
--------------------------- ------ ------------- ------------- ----------------
Net cash inflow
from investing
activities 1,409,941 5,291,530 11,452,715
Cash flows from
financing activities
Shares issued as
part of Offer for
Subscription 24,305,937 - -
Equity dividends
paid 8 (2,255,584) (2,368,798) (13,062,948)
Purchase of own
shares (928,419) (66,509) (115,024)
--------------------------- ------ ------------- ------------- ----------------
Net cash inflow/(outflow)
from financing
activities 21,121,934 (2,435,307) (13,177,972)
--------------------------- ------ ------------- ------------- ----------------
Net increase/(decrease)
in cash and cash
equivalents 22,163,371 2,196,909 (1,711,944)
Cash and cash equivalents
at start of period 10,635,967 12,347,911 12,347,911
Cash and cash equivalents
at end of period 32,799,338 14,544,820 10,635,967
--------------------------- ------ ------------- ------------- ----------------
Cash and equivalents
comprise:
Cash at bank and
in hand 10 1,483,126 7,805,131 1,375,065
Cash equivalents 10 31,316,212 6,739,689 9,260,902
The notes below form part of these Half-Year
Financial Statements
Notes to the Unaudited Condensed Financial Statements
for the six months ended 31 March 2018
1. Company Information
The Income & Growth VCT plc is a public limited
company incorporated in England and Wales,
registration number 4069483. The registered
office is 30 Haymarket, London SW1Y 4EX.
2. Basis of preparation of the Financial Statements
These Financial Statements prepared in accordance
with accounting policies consistent with
Financial Reporting Standard 102 ("FRS102"),
Financial Reporting Standard 104 ("FRS104")
- Interim Financial Reporting, with the Companies
Act 2006 and the 2014 Statement of Recommended
Practice, 'Financial Statements of Investment
Trust Companies and Venture Capital Trusts'
('the SORP') (updated in January 2017) issued
by the Association of Investment Companies.
The Financial Statements have been prepared
on the historical cost basis except for the
modification to a fair value basis for certain
financial instruments as specified in note
9.
The Half-Year Report has not been audited,
nor has it been reviewed by the auditor pursuant
to the Financial Reporting Council's (FRC)
guidance on Review of Interim Financial Information.
3. Principal accounting policies
The accounting policies have been applied
consistently throughout the period. Full
details of principal accounting policies
will be disclosed in the Annual Report, while
the policy in respect of investments is included
within an outlined box at the top of note
9 on investments.
4. Income
Six months Six months Year ended
ended 31 ended 31 30 September
March 2018 March 2017 2017 (audited)
(unaudited) (unaudited)
GBP GBP GBP
---------------- ------------- ------------- ----------------
Income
- Dividends 121,857 180,519 288,843
- Money market
funds 33,569 10,951 21,960
- Loan stock
interest 1,290,981 1,412,723 2,899,869
- Bank deposit
interest 22,433 36,036 55,893
- Other income 7,739 68 69
---------------- ------------- ------------- ----------------
Total Income 1,476,579 1,640,297 3,266,634
---------------- ------------- ------------- ----------------
5. Investment Adviser's fees and performance
fees
Six months Six months Year ended
ended 31 ended 31 30 September
March 2018 March 2017 2017 (audited)
(unaudited) (unaudited)
GBP GBP GBP
--------------------- ------------- ------------- ----------------
Allocated
to revenue
return: Investment
Adviser's
fees 205,694 197,406 394,012
Allocated
to capital
return: Investment
Adviser's
fees 617,082 592,219 1,182,037
Investment
Adviser's
performance
fees - - 571,879
Total 822,776 789,625 2,147,928
--------------------- ------------- ------------- ----------------
Investment
Adviser's
fee 822,776 789,625 1,576,049
Investment
Adviser's
performance
fees - - 571,879
Total 822,776 789,625 2,147,928
--------------------- ------------- ------------- ----------------
6. Taxation
There is no tax charge for the period as
the Company has tax losses brought forward
from previous periods, which can be offset
against taxable income.
7. Basic and diluted earnings and return per
share
Six months Six months Year ended
ended 31 ended 31 30 September
March 2018 March 2017 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------- ------------- ------------- --------------
Total earnings
i) after taxation: 977,791 1,438,758 3,785,174
Basic earnings
per share 1.04 p 1.99 p 5.21 p
-------------------------------- ------------- ------------- --------------
ii) Revenue earnings
from ordinary
activities
after taxation 862,589 1,024,953 2,027,985
Basic revenue
earnings per
share 0.92 p 1.42 p 2.79 p
-------------------------------- ------------- ------------- --------------
Net unrealised
capital (losses)/gains
on investments (1,251,618) 725,815 (794,007)
Net realised
capital gains
on investments 1,810,102 69,100 3,883,829
Capitalised
Investment
Adviser fees
and performance
fees less
taxation (443,282) (381,110) (1,332,633)
-------------------------------- ------------- ------------- --------------
Total capital
iii) return 115,202 413,805 1,757,189
Basic capital
earnings per
share 0.12 p 0.57 p 2.42 p
-------------------------------- ------------- ------------- --------------
iv) Weighted average
number of
shares
in issue in
the period 93,616,928 72,037,688 72,621,839
-------------------------------- ------------- ------------- --------------
Notes:
a) Basic earnings per share is total earnings
after taxation divided by the weighted average
number of shares in issue.
b) Basic revenue earnings per share is the
revenue return after taxation divided by
the weighted average number of shares in
issue.
c) Basic capital earnings per share is the
total capital return after taxation divided
by the weighted average number of shares
in issue.
8. Dividends paid
Dividend Type For Pence Date paid Six Six Year
the per months months ended
year share ended ended 30 September
ended 31 March 31 March 2017
September 2018 2017
(unaudited) (unaudited)GBP
GBP (audited)
GBP
---------- --------- ----------- ------- ---------- ------------ --------------- -------------
15
February
Final Income 2016 1.00p 2017 - 718,814 718,814
15
February
Final Capital 2016 3.00p 2017 - 2,156,442 2,156,442
20 June
Interim Income 2017 1.50p 2017 - - 1,087,032
20 June
Interim Capital 2017 1.50p 2017 - - 1,087,032
31 August
Special Capital 2017 15.00p 2017 - - 10,931,992
15
February
Final Income 2017 0.50p 2018 470,185 - -
15
February
Final Capital 2017 2.50p 2018 2,350,933 - -
---------- --------- ----------- ------- ---------- ------------ --------------- -------------
Total* 2,821,118 2,875,256 15,981,312
---------------------------------- ------- ---------- ------------ --------------- -------------
* - GBP2,821,118 (31 March 2017: GBP2,875,256;
30 September 2017: GBP15,981,312) disclosed
above differs to that shown in the Statement
of Cash Flows of GBP2,255,584 (31 March 2017:
GBP2,368,798; 30 September 2017: GBP13,062,948)
due to GBP565,534 (31 March 2017: GBP506,458;
30 September 2017: GBP2,918,364) of new shares
issued as part of the Company's Dividend
Investment Scheme.
9. Summary of movement on investments during
the period
Unquoted Unquoted Unquoted
Traded ordinary preference loan
on AIM shares shares stock
Level Level Level Level
1 3 3 3 Total
GBP GBP GBP GBP GBP
------------------ ------------ ------------ ------------ ------------ ------------
Valuation at
1 October 2017 3,197,177 14,353,491 414,186 30,065,454 48,030,308
Purchases at
cost - 1,739,323 - 1,364,592 3,103,915
Sales - proceeds
(Note a) - (2,293,975) (1,017) (2,332,736) (4,627,728)
- realised
gains (Note
b) - 1,860,102 - - 1,860,102
Unrealised
(losses)/gains
on investments
in the period (1,624,199) 2,209,217 6,131 (1,842,767) (1,251,618)
------------------ ------------ ------------ ------------ ------------ ------------
Valuation at
31 March 2018 1,572,978 17,868,158 419,300 27,254,543 47,114,979
------------------ ------------ ------------ ------------ ------------ ------------
Book cost at
31 March 2018 1,333,907 23,271,311 24,740 26,599,133 51,229,091
Unrealised gains
at 31 March
2018 739,071 608,300 394,560 742,597 2,484,528
Permanent
impairment
of valuation
of investments (500,000) (6,011,453) - (87,187) (6,598,640)
------------------ ------------ ------------ ------------ ------------ ------------
Valuation at
31 March 2018 1,572,978 17,868,158 419,300 27,254,543 47,114,979
------------------ ------------ ------------ ------------ ------------ ------------
(Losses)/gains
on investments
Realised gains
based on
historical
cost - 2,067,814 - 26,831 2,094,645
Less amounts
recognised as
unrealised gains
in previous
years - (257,712) - (26,831) (284,543)
------------------ ------------ ------------ ------------ ------------ ------------
Realised gains
based on
carrying
value at 30
September 2017 - 1,810,102 - - 1,810,102
Net movement
in unrealised
(losses)/gains
in the period (1,624,199) 2,209,217 6,131 (1,842,767) (1,251,618)
(Losses)/gains
on investments
for the period
ended 31 March
2018 (1,624,199) 4,019,319 6,131 (1,842,767) 558,484
================== ============ ============ ============ ============ ============
Note a) Investment proceeds shown above of
GBP4,627,728 differs from the sale proceeds
shown in the Statement of Cash flows of GBP4,513,856
by GBP113,872. This difference arises because
of deferred consideration due from the disposal
of Gro-Group held in debtors at the period
end.
Note b) Realised gains above of GBP1,860,102
differ from that shown in the Income Statement
of GBP1,810,102. The difference of GBP50,000
is a reduction for the period in the estimated
fair value of contingent consideration held
at the Balance Sheet date, to nil. This reduction
is because such consideration of GBP134,241
was received in the period in respect of
Alaric Systems, an investment realised in
a prior period, of which GBP50,000 was recognised
in a previous year.
There has been no significant change in the
risk analysis as disclosed in Note 18 of
the Financial Statements in the Company's
Annual Report. The decrease in unrealised
valuations of the loan stock investments
above reflect the changes in the entitlement
to loan premiums, and/or in the underlying
enterprise value of the investee company.
The decrease does not arise from assessments
of credit or market risk upon these instruments.
10. Current asset investments and Cash at bank
as at 30
September
2017
as at as at 31 (audited)
31 March March 2017
2018 (unaudited) (unaudited)
GBP GBP GBP
------------------ ------------------ ------------- ------------
OEIC Money
market funds 31,316,212 6,739,689 9,260,902
------------------ ------------------ ------------- ------------
Cash equivalents
per Statement
of Cash Flows 31,316,212 6,739,689 9,260,902
Bank deposits
that mature
after three
months 3,151,769 3,151,769 3,151,769
------------------ ------------------ ------------- ------------
Current asset
investments 34,467,981 9,891,458 12,412,671
------------------ ------------------ ------------- ------------
Cash at bank 1,483,126 7,805,131 1,375,065
------------------ ------------------ ------------- ------------
11. Net asset value per share
as at 31 as at 31 as at 30 September
March 2018 March 2017 2017
(unaudited) (unaudited) (audited)
---------------- -------------- -------------- -------------------
Net assets GBP83,584,905 GBP69,881,428 GBP64,348,751
Number of
shares in
issue 105,435,973 72,468,771 79,204,702
Net asset
value per
share - basic
and diluted 79.28p 96.43p 81.24p
---------------- -------------- -------------- -------------------
12. Post balance sheet events
On 30 April 2018, TPSFF Holdings Limited
(formerly Plastic Surgeon) repaid loan stock
of GBP77,560.
13. Statutory information
The financial information for the six months
ended 31 March 2018 and the six months ended
31 March 2017 has not been audited.
The financial information contained in this
Half-Year results announcement does not constitute
statutory accounts as defined in Section
434 of the Companies Act 2006. The Financial
Statements for the year ended 30 September
2017 have been filed with the Registrar of
Companies. The auditor has reported on these
Financial Statements and that report was
unqualified and did not contain a statement
under either Section 498(2) or 498(3) of
the Companies Act 2006.
14. Half-Year Report
Copies of the Half-Year Report are being
sent to all shareholders. Further copies
are available free of charge from the Company's
registered office, 30 Haymarket, London,
SW1Y 4EX, or can be downloaded via the Company's
website at www.incomeandgrowthvct.co.uk
Contact details for further enquiries:
Rob Brittain or Robert King at Mobeus Equity
Partners LLP (the Company Secretary) on 020
7024 7600 or by e-mail to vcts@mobeusequity.co.uk
Mobeus Equity Partners LLP (the Investment Adviser)
on 020 7024 7600 or by e-mail to info@mobeusequity.co.uk
DISCLAIMER
Neither the contents 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FELFFVEFBBBQ
(END) Dow Jones Newswires
May 15, 2018 07:13 ET (11:13 GMT)
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