TIDMMIG1
RNS Number : 7563X
Maven Income & Growth VCT PLC
28 November 2017
Maven Income and Growth VCT PLC
Interim results for the six months ended 31 August 2017
(unaudited)
The Directors are pleased to announce the unaudited Interim
Management Report for the six months ended 31 August 2017.
Highlights
-- NAV total return of 139.00p per share at 31 August 2017,
compared to 138.94p at 28 February 2017
-- NAV at 31 August 2017 of 59.34p per share after dividend
payments totalling 6.56p per share during the period
-- First interim dividend of 2.96p per share paid on 14 July 2017
-- Second interim dividend of 2.70p per share payable on 30 November 2017
-- Four new VCT qualifying private company holdings added to the
portfolio, with a further two completed post the period end
-- Large pipeline of VCT qualifying investments, with a number in advanced process
-- Exit from Crawford Scientific after the period end for total return of 4.5 times cost
Overview
During the reporting period, your Company completed four new VCT
qualifying investments in private companies operating across a
diverse range of sectors, with a further two completed after the
period end. The majority of the businesses in the investee
portfolio have continued to trade well, with a notable exit
achieved after the period end through the realisation of the
holding in Crawford Scientific for a total return of 4.5 times
cost.
The NAV total return was 139.00p per share at the period end.
Shareholders will note that, whilst NAV total return has continued
to increase over the past two years, the absolute NAV has reduced.
This is as a consequence of higher dividends, which have been
required to ensure ongoing compliance with the VCT regulations.
Notwithstanding the increased dividend rate, your Company retains
significant liquid resources to allow the Manager to continue to
build the portfolio.
The Directors and the Manager recognise the importance of
tax-free distributions to Shareholders and the Board was pleased to
declare interim dividends totalling 5.66p per share.
In the first half of the financial year, Maven continued to
focus on sourcing attractive qualifying investment opportunities
that meet the requirements of the revised VCT legislation, details
of which were provided in the 2017 Annual Report. Since the
introduction of the new VCT rules in 2015, your Company has
provided development capital to twelve qualifying private
companies, demonstrating the Manager's flexible approach and
ability to adapt to the requirements of the revised legislation. It
has, however, become apparent that transactions are taking
considerably longer to complete, due to the increasingly complex
process of securing Advance Assurance tax clearance from HM Revenue
& Customs (HMRC) for each new investment. As a result, the
Manager's ability to complete a number of investments has been
impacted, with some opportunities lost because of slow response
times at HMRC.
Given the complexity of the new rules, Maven maintains a
cautious approach and continues to work closely with a specialist
VCT adviser engaged by the Company to assist with the VCT tax
clearance process. There are a number of active transactions that
are well-progressed and it is anticipated that there will be a
strong rate of new investment activity through the second half of
the financial year.
Dividends
As highlighted by the Board in the 2017 Annual Report,
Shareholders should be aware that the move to support younger and
earlier stage businesses may result in less predictable capital
gains and income flows. As a result, compared to previous periods,
there could be variation in the quantum and timing of future
dividend payments. Due to a number of recent profitable
realisations, and in order to ensure your Company's ongoing
compliance with the VCT regulations, on 15 June 2017, the Board
considered it appropriate to declare the early payment of a first
interim dividend, and a second interim dividend was declared on 25
October 2017.
The first interim capital dividend in respect of the year ending
28 February 2018, of 2.96p per Ordinary Share, was paid on 14 July
2017 to Shareholders on the register at close of business on 23
June 2017. The second interim dividend, of 2.70p per share, will be
paid on 30 November 2017 to Shareholders on the register at close
of business on 3 November 2017. Since the Company's launch, and
including receipt of these interim dividends, Shareholders will
have received 82.36p per share in tax- free dividends. The effect
of paying the dividends will be to reduce the NAV of the Company by
the total cost of the distributions.
Decisions on future distributions will be kept under close
review and take into consideration the availability of surplus
revenue, the adequacy of reserves, the proceeds from any further
realisations and the VCT qualifying levels of the portfolio.
Portfolio Developments
The portfolio of private company holdings has generally
performed well, resulting in the valuations of a number of investee
companies being increased. It is reassuring to note that, despite
the political and economic uncertainty resulting from the General
Election and the UK's intended exit from the European Union (EU),
there is, to date, no discernible impact to report, aside from the
short-term benefit that a number of exporters have experienced
following the devaluation of Sterling in June 2016.
Cursor Controls, a global leader in the design and niche
manufacture of trackballs for cursor movement used in industrial
applications, has performed well since Maven clients invested in
July 2015. The business continues to deliver good levels of organic
growth and performance was further enhanced in April 2016 by the
acquisition of NSI, a Belgian distributor of trackballs and other
associated products. The acquisition formed part of Maven's
investment proposal and is expected to be significantly earnings
enhancing, with a number of commercial and operational synergies
identified to help drive the growth and profitability of the
enlarged group. The management team is encouraged by the
integration process to date, with NSI trading to plan and the core
Cursor business continuing to deliver organic growth.
Manufacturer and supplier of technical plastic components and
interior parts for the global automotive industry, John McGavigan,
continues to exceed expectations. The year to 31 December 2016 saw
a significant increase in profitability across its operations in
China and Scotland, which was achieved through top line growth and
enhanced by the benefits of a number of productivity improvement
projects implemented earlier in the year. This momentum has
continued through the current year, with the company continuing to
grow and exceed budget. The order book remains strong, with a
number of significant contracts secured in recent months,
increasing future visibility for the business. Given the growth
achieved and forecast, the management team has decided to move its
Chinese premises in anticipation of capacity constraints in the
region, and work is progressing to advance this.
Maven clients invested in Attraction World, a leading provider
of worldwide theme park and attraction tickets, in 2010 to support
the incumbent executive team through a management buy-out. Since
investment, the company has made steady progress and the core
business continues to perform well. In March 2016 the business
enhanced its operating platform through the complementary
acquisition of Day Out With The Kids (www.dayoutwiththekids.co.uk),
an e-commerce site that focuses on UK attraction information. The
development of this new acquisition is progressing to plan and the
management team believes that it will prove to be a valuable
addition to the business.
The UK's largest provider of promotional merchandise, SPS (EU),
has achieved excellent growth under private equity ownership since
Maven clients invested in February 2014. Operational improvements
have enhanced profitability following the successful implementation
of a new enterprise resource planning system. The complementary
acquisitions of HPP and TEC, completed during the year ended 31
December 2015, have been integrated successfully within the group
and are both delivering a positive profit contribution. The company
has invested in sales resource to help penetrate the European
market, and this region is starting to contribute significantly to
group performance. The balance sheet remains healthy and the
business continues to reduce its core term debt.
Crawford Scientific, the UK's leading independent provider of
outsourced chromatography consumable products and services to the
laboratory research and testing sectors, continues to trade ahead
of plan. The business leverages its world- class technical
expertise to offer end-to-end solutions for users of chromatography
instruments and techniques. Crawford has consistently outperformed
since the initial investment by Maven clients in August 2014,
including the successful acquisition and integration of analytical
services company Hall Analytical Laboratories during 2015. An offer
was received for the business during the reporting period and a
full exit completed after the period end at a premium to carrying
value, resulting in a total return of 4.5 times cost over the
three-year investment period.
DPP provides mechanical and electrical maintenance and
installation services mainly to the leisure, hospitality and retail
sectors in the south of England and in Wales. The company
differentiates itself by operating through an employed and managed
team of engineers, as opposed to engaging with a network of
subcontractors. The business has made considerable progress over
the past twelve months by enhancing operational procedures and
reducing costs, which has led to a significant improvement in
profitability. A number of new contracts were secured during the
year and the outlook is positive, which is highly encouraging given
the challenges experienced during 2014 when DPP lost a key
customer.
During the period, the valuation of the investment in Torridon
(Gibraltar) was protectively reduced to reflect recent developments
at one of its trading subsidiaries and CHS Engineering Services was
placed into administration. In addition, in light of current
trading, selective valuation provisions were taken across a small
number of other portfolio companies.
The Manager maintains a close working relationship with investee
companies operating within the oil & gas sector and it is
encouraging to report that the majority of these assets are
experiencing improving market conditions. Following extensive cost
cutting, the Maven portfolio companies are operating with lean
structures and have limited or no external debt, and are relatively
well positioned to benefit from a market recovery. The majority of
Maven's investee companies in this sector are focused on
operational expenditure, particularly related to health and safety.
Although budgets were set conservatively at the start of 2017,
there is growing evidence of a sustained improvement in
performance, with profitability across the portfolio showing a
significant uplift over prior periods. The Board will continue to
monitor the performance of investee companies in this sector and
may revisit some of the provisions, applied conservatively in
previous periods, to reflect the improving outlook.
The investments in private equity investment trusts and real
estate investment trusts have achieved positive performance during
the period. The Board and the Manager are encouraged by this and
believe that these investments should provide a steady and reliable
source of income. This is particularly important in light of the
restrictions introduced in the March 2016 Budget Statement, which
prevent VCTs from investing in traditional instruments such as
treasury bills or other government securities for liquidity
management purposes.
The Board and the Manager remain highly cognisant of the
importance of maintaining an effective liquidity management policy
and will continue to consider a range of other permitted income
generating investment options.
New Investments
During the period, your Company provided development capital to
four private companies:
-- ebb3 is a technology company that develops mobile workspace
solutions, addressing the need for secure access to apps, files and
services on any device, in any location. The technology is
specifically targeted at high-end 3D computer graphics users within
the automotive (Formula 1), construction, oil & gas and
education sectors, where there is a requirement for data- intensive
applications that can service geographically dispersed,
multi-disciplinary teams. ebb3 has high profile partnership
agreements with providers such as Cisco, NetApp and NVidia, and the
investment will enable the business to pursue its growth strategy
in this niche part of the growing supercomputing market.
-- Horizon Cremation plans to develop and operate a portfolio of
next generation crematoria across the UK, where existing facilities
are either under-invested or in short supply. Horizon is seeking to
build contemporary facilities that are environmentally and
technologically advanced, offering enhanced professional service
and care levels for families. The investment will provide capital
to source and secure development sites, whilst supporting the
operational expenditure and overheads of Horizon's first
crematorium in North Ayrshire, Scotland, where construction
commenced in May 2017. Third party finance has been secured to fund
the construction and fit-out of the facility.
-- ITS Technology is a leading alternative network provider that
owns and maintains fibre networks, providing faster and more
reliable broadband connectivity, and related services, to
customers, particularly in areas that are not well serviced by the
existing infrastructure. The business currently has twelve fibre
broadband networks in operation, with a further five under
construction. The investment will help to fund growth within the
existing networks, build a stable recurring revenue base and also
support expansion through the addition of new networks.
-- Contego Fraud Solutions is a provider of complex, multi-
source compliance and fraud detection software for public and
private sector clients including property, banking and financial
services companies. Contego's applications perform a vast number of
screening, verification and vetting assessments including Know Your
Customer and Anti- Money Laundering, to fulfil both real-time
customer on- boarding and on-going monitoring of regulatory
requirements. The investment will support the continued growth of
the business, facilitating the hiring of additional sales
resources, further product development and expansion into new
markets.
The following investments have been completed during the
reporting period:
Investment
cost
Date Sector GBP'000 Website
------------------------- ---------- ------------------ ---------- --------------------------
Unlisted
Contego Fraud Solutions July 2017 Software 348 www.contego.com
Limited &
computer
services
ebb3 Limited May 2017 Software 183 www.ebb3.com
&
computer
services
Horizon Cremation May 2017 Support services 458 www.horizoncremation.co.uk
Limited
ITS Technology June 2017 Telecommunication 447 www.itstechnologygroup.com
Group Limited
services
------------------------- ---------- ------------------ ---------- --------------------------
Total unlisted 1,436
--------------------------------------------------------- ---------- --------------------------
At the period end, the portfolio stood at 67 unlisted and quoted
investments, at a total cost of GBP24.69 million.
Realisations
During the period, deferred consideration was received in
respect of the exit from Nenplas, which completed in a previous
period. In addition, recovery proceeds were released for Cyclotech
and Space Student Living.
The table below gives details of all realisations achieved, and
deferred considerations received, during the reporting period:
Cost of Value Gain/(loss)
shares at over
Year Complete/ disposed 28 February Sales Realised 28 February
first partial of 2017 proceeds gain/(loss) 2017 value
invested exit GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ----------- ------------ ---------- ------------- ---------- ------------- ------------
Unlisted
Constant Progress
Limited(1) 2015 Complete 650 650 650 - -
Cyclotech Limited 2007 Complete - - 49 49 49
Equator Capital
Limited(1) 2015 Complete 650 650 650 - -
Nenplas Holdings
Limited 2013 Complete - - 77 77 77
Space Student
Living Limited 2011 Partial - 72 72 72 -
Toward Technology
Limited(1) 2017 Complete 650 650 650 - -
------------------ ----------- ------------ ---------- ------------- ---------- ------------- ------------
Total unlisted 1,950 2,022 2,148 198 126
--------------------------------------------- ---------- ------------- ---------- ------------- ------------
Total disposals 1,950 2,022 2,148 198 126
--------------------------------------------- ---------- ------------- ---------- ------------- ------------
(1) Includes the redemption of loan notes.
As at the date of this report, the Manager is 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 2017, two new private company assets have been
added to the portfolio.
ADC Biotechnology is a developer of a proprietary Lock-Release
technology, for the efficient development and manufacture of the
Antibody Drug Conjugates (ADC) group of cancer therapies. ADCs,
also known as 'magic bullets', combine the unique targeting
capabilities of antibodies with the cancer- killing ability of
cytotoxic drugs, thereby targeting cancer cells whilst minimising
damage to healthy cells and tissue, and with the potential for
reduced side effects. Maven VCT clients have invested alongside
existing shareholders to support an experienced management team as
it seeks to progress the drug development platform in this high
growth sector of oncology therapeutics.
Cognitive Geology is a petroleum geoscience software company
that recently launched Hutton, its first advanced geological data
analysis tool. The product uses patented technology that emulates
the behaviour of an experienced geologist while utilising modern
computing capabilities. The funding will be used to support the
roll-out of Hutton, in addition to further product development and
commercialisation of the pipeline of innovative third generation
geoscience software applications. These are designed to help
geologists find, appraise, and develop conventional and
unconventional oil & gas reserves, both onshore and offshore in
this well established and strongly growing market.
In October 2017, Maven achieved a full exit from Crawford
Scientific, through a sale to Limerston Capital Partners. The exit
achieved a total return of 4.5 times the original investment, with
an IRR of 70% 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 2017
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. 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. During the
period under review, 250,000 share were bought back at a total cost
of GBP135,000.
Regulatory Developments
The Chancellor's March 2017 Budget Statement did not introduce
any further amendments to the legislation governing VCTs, but
reiterated the announcements made in the 2016 Autumn Statement. The
most noteworthy of these was that the Government will no longer be
initiating a review of the provision to allow replacement capital
in certain new VCT transactions, suggesting that this may be
reviewed at some point in the future. Whilst the Board and the
Manager were disappointed by this announcement, as the ability to
include replacement capital was viewed as an important capability
under the new rules, it does not impact the Company's investment
strategy, which has already adapted to meet the requirements of the
new legislation.
The Patient Capital Review has been formally extended to
consider the effectiveness and value for money provided by the VCT
and EIS sector. The consultation paper, 'Financing Growth in
Innovative Firms', has been published and Maven has provided
feedback to HM Treasury on behalf of its VCT clients.
Maven welcomes the intention of the 2017 Autumn Budget Statement
to preserve the attractive fundamentals of the VCT scheme, which
continue to provide a valuable bridge between private capital and
the UK SME sector. The continuing availability of long-term patient
capital in line with Government objectives, at what is an
increasingly important time for the UK economy, gives comfort to
small businesses and ensures that the best entrepreneurial
companies can continue to access equity finance, and investors can
benefit from their success. However, there are some changes to the
VCT scheme that the Manager considers to be unnecessary, including
the requirement for the loan element of an investment to be
unsecured and the increase in the qualifying holdings test from 70%
to 80% at a time when most VCT managers are experiencing long
delays in securing Advance Assurance for new investments. The
announcement that HMRC anticipates being able to enhance their
approval process during the early part of 2018 is therefore
welcome, as this should help improve the rate of new investment and
allow managers such as Maven to continue to build their portfolios
expeditiously and comply with the new tests. The Board and the
Manager will continue to consider the implications of the Autumn
Statement and take these developments into account when planning
future strategy.
Outlook
The Manager is encouraged by the performance achieved during the
reporting period. Notwithstanding the pressures and uncertainty of
the current economic, regulatory and political environment, the
portfolio of investee companies has generally continued to trade
well, with no resulting discernible impact on performance. This
demonstrates the strength and breadth of the underlying portfolio
and its ability to continue to generate positive returns for
Shareholders.
Whilst it is early days for a number of the new investee
companies, initial indications suggest that they are performing to
plan and should, over time, represent valuable additions to the
portfolio. During the period, Maven extended its nationwide
presence through the opening of four new offices, expanding its
network to ten locations across the UK. This regional approach
ensures that the investment teams are well positioned to access
some of the best available potential investment opportunities
through their local network of contacts. Maven's geographic
presence is delivering a strong pipeline of prospective new
investments and, based on current momentum, it is anticipated that
there will be a good rate of investment in the remainder of the
financial year.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
28 November 2017
Summary of Investment Changes
For the Six Months Ended 31 August 2017
Valuation Net investment/ Appreciation/ Valuation
28 February (disinvestment) (depreciation) 31 August
2017 2017
---------------------
GBP'000 % GBP'000 GBP'000 GBP'000 %
--------------------- ------- ------ ---------------- --------------- ------- ----------
Unlisted investments
Equities 12,010 33.7 38 832 12,880 40.3
Preference shares 1 - - - 1 -
Loan stock 14,000 39.3 (750) (890) 12,360 38.7
--------------------- ------- ------ ---------------- --------------- ------- ----------
26,011 73.0 (712) (58) 25,241 79.0
AIM/NEX investments
Equities 817 2.3 - (55) 762 2.4
Listed investments
Equities 18 0.1 - 5 23 0.1
Investment trusts 1,089 3.1 - 54 1,143 3.6
--------------------- ------- ------ ---------------- --------------- ------- ----------
Total investments 27,935 78.5 (712) (54) 27,169 85.1
Net current assets 7,654 21.5 (2,895) - 4,759 14.9
--------------------- ------- ------ ---------------- --------------- ------- ----------
Net assets 35,589 100.0 (3,607) (54) 31,928 100.0
--------------------- ------- ------ ---------------- --------------- ------- ----------
Investment Portfolio Summary
As at 31 August 2017
% of
equity
% of held by
Valuation Cost % of net equity other
Investment GBP'000 GBP'000 assets held clients(1)
-------------------------------- ----------- --------- ---------- -------- -----------
Unlisted
Crawford Scientific Holdings
Limited 2,326 447 7.2 6.9 41.3
Lemac No. 1 Limited (trading
as John McGavigan) 2,191 699 6.8 9.1 27.7
SPS (EU) Limited 1,735 803 5.3 6.7 35.8
Torridon (Gibraltar) Limited 1,487 400 4.6 4.5 35.5
Martel Instruments Holdings
Limited 1,104 1,234 3.5 14.9 29.3
CatTech International Limited 982 627 3.1 6.0 24.0
Ensco 969 Limited (trading
as DPP) 885 733 2.8 4.9 29.6
Vodat Communications Group
Limited 784 567 2.5 6.6 35.2
GEV Holdings Limited 728 728 2.3 4.6 31.4
Fathom Systems Group Limited 711 711 2.2 8.0 52.0
Glacier Energy Services
Holdings Limited 688 688 2.2 2.7 25.0
JT Holdings (UK) Limited
(trading as Just Trays) 686 522 2.1 5.8 24.2
ELE Advanced Technologies
Limited 656 192 2.1 11.3 -
HCS Control Systems Group
Limited 611 846 1.9 6.9 29.6
Flow UK Holdings Limited 598 598 1.9 7.3 27.7
CB Technology Group Limited 579 579 1.8 11.8 67.2
R&M Engineering Group Limited 572 762 1.8 8.6 62.0
Castlegate 737 Limited (trading
as Cursor Controls) 534 324 1.7 3.3 44.2
Maven Co-invest Endeavour
Limited Partnership 501 436 1.6 8.5 91.5
(invested in Global Risk
Partners)
The GP Service (UK) Limited 498 498 1.6 6.2 26.3
Rockar 2016 Limited (trading
as Rockar) 483 483 1.5 2.7 11.1
Majenta Logistics Limited 480 480 1.5 6.4 43.4
RMEC Group Limited 463 463 1.5 2.9 47.2
Horizon Cremation Limited 458 458 1.4 15.3 68.4
ITS Technology Group Limited 447 447 1.4 4.4 17.7
Attraction World Holdings
Limited 400 21 1.3 6.2 32.2
QikServe Limited 398 398 1.2 4.0 16.0
Contego Fraud Solutions
Limited 348 348 1.1 3.2 13.4
Vectis Technology Limited 330 330 1.0 6.4 43.4
Lambert Contracts Holdings
Limited 298 838 0.9 12.6 52.1
Chic Lifestyle Limited (trading
as Chic Retreats) 292 292 0.9 8.7 38.1
Flexlife Group Limited 266 448 0.8 1.8 12.8
TC Communications Holdings
Limited 241 413 0.8 3.5 26.5
Endura Limited 229 229 0.7 0.7 5.2
Whiterock Group Limited 209 209 0.7 4.5 20.5
ISN Solutions Group Limited 205 323 0.6 4.6 50.4
ebb3 Limited 183 183 0.6 4.3 20.2
-------------------------------- ----------- --------- ---------- -------- -----------
Investment Portfolio Summary (Continued)
% of
equity
% of held by
Valuation Cost % of net equity other
Investment GBP'000 GBP'000 assets held clients(1)
-------------------------------- ----------- --------- ---------- -------- -----------
Unlisted (continued)
Growth Capital Ventures
Limited 159 159 0.5 4.4 26.1
Metropol Communications
Limited 144 144 0.5 6.4 43.4
Onyx Logistics Limited 144 144 0.5 6.4 43.4
Lawrence Recycling and Waste
Management Limited 135 951 0.4 10.4 51.6
Other unlisted investments 73 2,263 0.2
-------------------------------- ----------- --------- ---------- -------- -----------
Total unlisted 25,241 22,418 79.0
-------------------------------- ----------- --------- ---------- -------- -----------
Quoted
Cello Group PLC 384 310 1.2 0.3 0.1
Plastics Capital PLC 283 260 0.9 0.7 0.7
Angle PLC 64 114 0.2 0.2 0.2
Vianet Group PLC 31 37 0.1 0.1 1.4
esure Group PLC 23 - 0.1 - -
Other quoted investments - 513 -
-------------------------------- ----------- --------- ---------- -------- -----------
Total quoted 785 1,234 2.5
-------------------------------- ----------- --------- ---------- -------- -----------
Private equity investment
trusts
Princess Private Equity
Holding Limited 124 98 0.4 - 0.1
HgCapital Trust PLC 121 100 0.4 - 0.1
Apax Global Alpha Limited 117 99 0.4 - 0.1
F&C Private Equity Investment
Trust PLC 110 103 0.3 0.1 0.3
Standard Life Private Equity
Trust PLC 55 43 0.2 - -
-------------------------------- ----------- --------- ---------- -------- -----------
Total private equity investment
trusts 527 443 1.7
-------------------------------- ----------- --------- ---------- -------- -----------
Real estate investment trusts
Schroder REIT Limited 108 99 0.4 - 0.2
Custodian REIT PLC 106 99 0.3 - 0.2
Target Healthcare REIT Limited 104 98 0.3 - 0.2
Standard Life Investment
Property 102 99 0.3 - 0.2
Income Trust Limited
British Land Company PLC 101 99 0.3 - -
Regional REIT Limited 95 99 0.3 - 0.2
-------------------------------- ----------- --------- ---------- -------- -----------
Total real estate investment
trusts 616 593 1.9
-------------------------------- ----------- --------- ---------- -------- -----------
Total investments 27,169 24,688 85.1
-------------------------------- ----------- --------- ---------- -------- -----------
(1) Other clients of Maven Capital Partners UK LLP.
Income Statement
For the Six Months Ended 31 August 2017
Six months ended Six months ended Year ended
31 August 2017 31 August 2016 28 February
2017
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
(Losses)/gains
on investments - (54) (54) - 1,214 1,214 - 1,938 1,938
Income from investments 502 - 502 421 - 421 1,104 - 1,104
Other income 6 - 6 2 - 2 7 - 7
Investment management
fees (67) (266) (333) (70) (278) (348) (136) (546) (682)
Other expenses (101) - (101) (100) - (100) (287) - (287)
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
Net return on
ordinary 340 (320) 20 253 936 1,189 688 1,392 2,080
activities before
taxation
Tax on ordinary
activities (25) 25 - (37) 24 (13) (147) 109 (38)
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
Return attributable
to
Equity Shareholders 315 (295) 20 216 960 1,176 541 1,501 2,042
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
Earnings per
share (pence) 0.58 (0.55) 0.03 0.40 1.77 2.17 1.00 2.77 3.77
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
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 returns per share figures are relevant.
The basic and diluted earnings per share are, therefore,
identical.
The total column of this Statement is the Profit and Loss
Account of the Company.
The accompanying Notes are an integral part of the Financial
Statements.
Statement of Changes in Equity
For the Six Months Ended 31 August 2017
Six months ended 31 August 2017
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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
--------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
Six months ended 31 August 2016
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------- -------- --------- ----------- -------------- ----------- -------- --------
At 29 February
2016 5,420 10,253 (9,215) 2,795 26,417 227 992 36,889
Net return - - (288) 1,248 - - 216 1,176
Dividends paid - - (1,301) - - - (650) (1,951)
Repurchase and
cancellation
of shares (4) - - - (26) 4 - (26)
--------------- -------- -------- --------- ----------- -------------- ----------- -------- --------
At 31 August
2016 5,416 10,253 (10,804) 4,043 26,391 231 558 36,088
--------------- -------- -------- --------- ----------- -------------- ----------- -------- --------
Year ended 28 February 2017
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------- -------- --------- ----------- -------------- ----------- -------- --------
At 29 February
2016 5,420 10,253 (9,215) 2,795 26,417 227 992 36,889
Net return - - 888 613 - - 541 2,042
Dividends paid - - (2,411) - - - (840) (3,251)
Repurchase and
cancellation
of shares (15) - - - (91) 15 - (91)
--------------- -------- -------- --------- ----------- -------------- ----------- -------- --------
At 28 February
2017 5,405 10,253 (10,738) 3,408 26,326 242 693 35,589
--------------- -------- -------- --------- ----------- -------------- ----------- -------- --------
The accompanying Notes are an integral part of the Financial
Statements.
Balance Sheet
As at 31 August 2017
31 August 31 August 28 February
2017 (unaudited) 2016 (unaudited) 2017
GBP'000 GBP'000 (audited)
GBP'000
------------------------------- ----------------- ----------------- -----------
Fixed assets
Investments at fair value
through profit or loss 27,169 34,648 27,935
Current assets
Debtors 584 563 620
Cash 4,345 1,101 7,101
------------------------------- ----------------- ----------------- -----------
4,929 1,664 7,721
Creditors
Amounts falling due within
one year 170 224 (67)
------------------------------- ----------------- ----------------- -----------
Net current assets 4,759 1,440 7,654
------------------------------- ----------------- ----------------- -----------
Net assets 31,928 36,088 35,589
------------------------------- ----------------- ----------------- -----------
Capital and reserves
Called up share capital 5,380 5,416 5,405
Share premium account 10,253 10,253 10,253
Capital reserve - realised (14,057) (10,804) (10,738)
Capital reserve - unrealised 3,156 4,043 3,408
Special distributable
reserve 26,191 26,391 26,326
Capital redemption reserve 267 231 242
Revenue reserve 738 558 693
------------------------------- ----------------- ----------------- -----------
Net assets attributable
to Equity Shareholders 31,928 36,088 35,589
------------------------------- ----------------- ----------------- -----------
Net asset value per Ordinary
Share (pence) 59.34 66.63 65.84
------------------------------- ----------------- ----------------- -----------
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 28 November 2017 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 2017
Six months Six months Year ended
ended ended
31 August 31 August 28 February
2017 (unaudited) 2016 (unaudited) 2017
GBP'000 GBP'000 (audited)
GBP'000
---------------------------- ------------------ ------------------ ------------
Net cash flows from
operating activities (478) (554) (1,246)
Cash flows from investing
activities
Investment income received 451 559 1,174
Deposit interest received 6 2 7
Purchase of investments (1,436) (5,321) (7,414)
Sale of investments 2,247 6,812 16,342
---------------------------- ------------------ ------------------ ------------
Net cash flows from
investing activities 1,268 2,052 10,109
---------------------------- ------------------ ------------------ ------------
Cash flows from financing
activities
Equity dividends paid (3,546) (1,951) (3,251)
Repurchase of Ordinary
Shares - (26) (91)
---------------------------- ------------------ ------------------ ------------
Net cash flows from
financing activities (3,546) (1,977) (3,342)
---------------------------- ------------------ ------------------ ------------
Net (decrease)/increase
in cash (2,756) (479) 5,521
---------------------------- ------------------ ------------------ ------------
Cash at beginning of
period 7,101 1,580 1,580
Cash at end of period 4,345 1,101 7,101
---------------------------- ------------------ ------------------ ------------
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
2017 and the six months ended 31 August 2016 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 2017, which have been filed at Companies House and which
contained an Auditor's Report which was not qualified and did not
contain a statement under S498(2) or S498(3) of the Companies Act
2006.
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 2017
------------------------------------------- ---------------
The returns per share have been based
on the following figures:
Weighted average number of Ordinary Shares 54,052,884
Revenue return GBP315,000
Capital return (GBP295,000)
------------------------------------------- ---------------
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that, to the best of their knowledge:
-- the Financial Statements for the six months ended 31 August
2017 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 2018; 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 2017 has been calculated
using the number of Ordinary Shares in issue of 53,802,884.
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
28 November 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BSBDBCXDBGRI
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