TIDMIGV

RNS Number : 6178C

Income & Growth VCT (The) PLC

14 June 2023

 
                                                               THE INCOME & GROWTH VCT PLC 
                                                                LEI: 213800FPC15FNM74YD92 
 
                                             UNAUDITED HALF-YEAR RESULTS FOR THE SIX MONTHS TO 31 MARCH 2023 
 
 The Income & Growth VCT plc ("the Company") today announces its Half-Year 
  results for the six months to 31 March 2023. 
 
  You may, in due course, view the Half-Year Report, comprising the 
  Unaudited Condensed Financial Statements of the Company by visiting 
  www.incomeandgrowthvct.co.uk. 
 
 
 Financial Highlights 
                                                                                                                                    As at 31 March 2023: 
                                                                                                                           Net assets: GBP122.93 million 
                                                                                                          Net asset value ("NAV") per share: 79.38 pence 
 Results for the six months to 31 March 2023: 
 *    Net asset value ("NAV") total return(1) per share was      (0.4)%. 
 
 
 *    Share price total return(1) per share was (3.1)%. 
 
 
   *    The Board has declared an interim dividend in respect 
        of the current year of 4.00 pence per share which was 
        paid to Shareholders on 26 May 2023. 
 *    The Company made two new investments of GBP1.01      million. 
 
 
 
   *    Proceeds of GBP9.13 million were received from 
        realisations, generating net realised gains of 
        GBP0.41 million. 
 
       (1) Alternative Performance Measure ("APM"). See Glossary of Terms 
       in the Half-Year Report. 
 
 
 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 total   Dividends 
  date          assets     per   Price(1)   dividends         return per share   per share 
                         Share                   paid       to shareholders(2)        paid 
                                            per share                                  and 
                                                                                  proposed 
                                                                                in respect 
                                                                                        of 
                                                                                 each year 
                                                           (NAV   (Share price 
                                                         basis)         basis) 
  As at         (GBPm)     (p)        (p)         (p)       (p)            (p)         (p) 
  31 March 
   2023         122.93   79.38      75.00      148.50    227.88         223.50     4.00(3) 
  30 
   September 
   2022         108.42   83.73      81.50      144.50    228.83         226.00        8.00 
  30 
   September 
   2021         119.09  100.45      93.00      136.50    236.95         229.50        9.00 
  30 
   September 
   2020          83.13   70.06      59.50      131.50    201.56         191.00       14.00 
  30 
   September 
   2019          81.73   79.12      75.50      113.00    192.12         188.50        6.00 
  30 
   September 
   2018          82.58   78.32      69.50      108.00    186.32         177.50        6.00 
 
 (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) An interim dividend of 4.00 pence per share, referred to in the 
  Financial Highlights above, was paid to Shareholders on 26 May 2023. 
  This dividend has subsequently reduced the NAV per share to 75.38 
  pence and increased cumulative dividends paid per share to 152.50 
  pence. 
 
   Detailed performance data, including a table of dividends paid to 
   date for all share classes and fundraising rounds, is shown in the 
   Performance Data appendix in the Half-Year Report. The tables, which 
   give information by allotment date on NAVs and dividends paid per 
   share, are also available on the Company's website at www.incomeandgrowthvct.co.uk 
   where they can be accessed by clicking on "table" under "Reviewing 
   the performance of your investment" on the home page. 
 
 Chair's Statement 
 
 I present the Company's Half-Year Report for the six months to 31 
  March 2023. 
 
  Overview 
  The first six months of the Company's financial year occurred against 
  a backdrop of challenging UK economic conditions. Increasing inflation 
  and rising interest rates have both impacted consumer and business 
  confidence which has pulled down market valuation benchmarks and caused 
  a general softening of trading performance. In line with this, the 
  Company's NAV total return fell marginally by 0.4%. 
 
  So far in 2023, despite the wider market concerns, stock market multiples 
  appeared to stabilise following the material downward re-rating of 
  growth stocks experienced over much of 2022. However, the collapse 
  of Silicon Valley Bank and other similar failures mean that confidence 
  remains fragile. The ongoing threat of a potential UK recession will 
  likely result in additional challenges for your portfolio companies. 
  However, the portfolio is well diversified and the Company is well 
  prepared for most scenarios via its strong liquidity available to 
  support the winners in the portfolio. 
 
  The Company continued to be an active investor and provided new investment 
  finance to two new companies, Connect Earth and Cognassist. The Company 
  also delivered two highly successful exits, Equip Outdoor Technologies 
  (EOTH) and Tharstern Group. 
 
  On 5 October 2022, the Company launched an Offer for Subscription 
  alongside the three other Mobeus VCTs ("Offers") with the full amount 
  being raised in a matter of weeks. The Board was very pleased with 
  this support and extends a warm welcome to new and existing investors. 
 
  Performance 
  The Company's NAV total return per share was (0.4)% for the six months 
  to 31 March 2023 (2022: 2.3%), and the share price total return was 
  (3.1)% pence (2022: 1.6%). The difference between the NAV total return 
  and share price total return figures above arises principally due 
  to the timing of NAV announcements which are usually made retrospectively. 
  The fall in NAV total return for the period was principally the result 
  of unrealised declines in the value of investments. Two successful 
  portfolio exits generated realised gains for the Company, however 
  these were partially offset by impairments applied to the holdings 
  of two other companies. 
 
  Investment portfolio 
  In the current challenging environment, a number of investee companies 
  experienced a decline in consumer confidence with a resultant impact 
  on trading. The overall value decreased by a modest GBP(0.60) million 
  (2022: GBP4.20 million), or (0.8)% (2022: 4.8%) on a like-for-like 
  basis, compared to the opening portfolio value at 1 October 2022 of 
  GBP73.08 million. This net decrease comprised net realised gains of 
  GBP0.41 million and net unrealised declines in portfolio valuations 
  of GBP(1.01) million, over the period. 
 
  At the period-end, the portfolio was valued at GBP64.36 million after 
  taking account of investments purchased and sold in the period, together 
  with the net realised gains and net unrealised losses referred to 
  above. 
 
  As the portfolio continues its move from being comprised mainly of 
  MBO investments made under the previous strategy, towards predominantly 
  growth capital investments which have a more variable return profile, 
  shareholders should note that the likelihood of investee company failures 
  is higher. A further impact of the strategy change in 2015 is that 
  at 31 March 2023, nearly 60% of the portfolio is comprised by the 
  top five assets by value. The Investment adviser ensures that all 
  necessary focus is on these higher value assets. 
 
  During the six months under review, the Company invested GBP1.01 million 
  into two new investments: 
  Connect Earth GBP0.34 million 
  Environmental data provider 
  Cognassist GBP0.67 million 
  Education and neuro-inclusion solutions 
 
  The Company generated a total of GBP9.06 million in proceeds from 
  realisations alongside loan repayments of GBP0.07 million. The Company 
  therefore generated total proceeds of GBP9.13 million in the six months 
  to 31 March 2023. More detail on these realisations is provided below. 
 
  In November 2022, it was pleasing to exit the equity investment held 
  in EOTH (trading as Rab and Lowe Alpine), receiving GBP7.34 million 
  including preference share dividends received upon completion. This 
  exit generated a realised gain in the period of GBP0.42 million. Total 
  proceeds received over the life of this investment are GBP9.54 million 
  to date, a 6.9x multiple of cost and an IRR of 23.2%. The Company 
  has retained its interest yielding loan stock to continue to generate 
  income for the VCT in the future. 
 
  In March 2023, the Company achieved a full exit of Tharstern Group 
  Limited generating proceeds of GBP2.85 million and a realised gain 
  of GBP0.86 million. Over the life of this investment, the Company 
  has received GBP4.00 million which equates to a multiple on cost of 
  2.6x and an IRR of 15.0%. 
 
  After the period end, Spanish Restaurant Group Limited (trading as 
  Tapas Revolution) went into administration. Tapas Revolution had experienced 
  very challenging conditions since COVID-19 and under the HMRC Financial 
  Health Test (more detail below), the Company was unable to invest 
  further in this portfolio company. It was therefore necessary for 
  an Administrator to be appointed. A total of GBP0.87 million has been 
  recognised as a realised loss in the period across two companies (including 
  Tapas Revolution) which are experiencing significant trading issues. 
 
  Shareholders should be aware that the Financial Health test is an 
  effective tightening of the interpretation of HMRC policy and practice 
  in a technical aspect of the VCT financing rules, now resulting in 
  the restriction of potential follow-on investments to support certain 
  companies. The Board continues to monitor developments in the interpretation 
  of this area of legislation carefully and supports the lobbying of 
  HMRC by the VCTA to change its stance. 
 
  After the period-end, the Company invested GBP0.63 million into Dayrize 
  B.V., a sustainability impact assessment tool provider. 
 
  Further details of this investment activity and the performance of 
  the portfolio are contained in the Investment Adviser's Review and 
  the Investment Portfolio Summary of 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 0.60 pence 
  per share (2022: 0.51 pence per share). The revenue return for the 
  period of GBP0.87 million represents an increase from last year's 
  comparable figure of GBP0.61 million. This is due primarily to higher 
  dividend receipts and interest income. 
 
  Dividends 
  The Board is pleased to have declared an Interim dividend of 4.00 
  pence per share for the year ending 30 September 2023. 
 
  This dividend was paid on 26 May 2023, to Shareholders on the Register 
  on 21 April 2023, and combined with a 4.00 pence dividend paid in 
  November 2022 in respect of the previous financial year has brought 
  cumulative dividends paid per share to 152.50 pence per share. 
 
  The Company intends to maintain its target of paying a dividend of 
  at least 6.00 pence per share in respect of each financial year and 
  this has been achieved in each of the last eleven financial years. 
  The Board continues to monitor the sustainability of its dividend 
  target given the continued movement of the portfolio to a larger share 
  of younger growth capital investments which have the potential for 
  increased volatility, which may affect the return in a given year. 
 
  Offer for Subscription and Dividend Investment Scheme 
  The Board approved a further fundraise for the 2022/23 tax year in 
  October 2022 after considering the future cash requirements of the 
  Company and the potential demand for the Company's shares following 
  the successful fundraise in January 2022. Having provided a period 
  of time between the launch of the prospectus and acceptance of applications, 
  the Board was pleased that the initial amount of GBP14 million (as 
  well as an over-allotment facility of a further GBP8 million), launched 
  on 5 October 2022, was fully subscribed by 8 November 2022. Shares 
  were allotted in November 2022 and February 2023. 
  The Company's Dividend Investment Scheme ("DIS") provides Shareholders 
  with the opportunity to reinvest their cash dividends into new shares 
  in the Company at the latest published NAV per share (adjusted for 
  any subsequent dividends). New VCT shares attract the same tax reliefs 
  as shares purchased through an Offer for Subscription. There were 
  1,197,652 shares allotted through the DIS during the period at a price 
  of 79.73 pence. 
  Shareholders can opt-in to the DIS by completing a mandate form available 
  on the Company's website at: www.incomeandgrowthvct.co.uk or can opt-out 
  by contacting Link Group, using the details provided in the Half Year 
  Report. Please note that instructions take 15 days to become effective. 
 
  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 2023 amounted 
  to GBP58.52 million. This figure has been bolstered by the funds raised 
  under the Offer and includes GBP52.58 million held in money market 
  funds with AAA credit ratings and GBP5.94 million held in deposit 
  accounts with two well-known financial institutions. The rises in 
  the Bank of England base rate over recent months have significantly 
  increased the yield on these balances which will help provide future 
  returns to Shareholders. 
 
  Share buybacks 
  During the six months ended 31 March 2023, the Company bought back 
  and cancelled 2.41 million of its own shares, representing 1.9% (2022: 
  0.4%) of the shares in issue at the beginning of the period, at a 
  total cost of GBP1.84 million (2022: GBP0.40 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, where its priority 
  is to act prudently and in the interest of remaining Shareholders, 
  whilst considering other factors, such as levels of liquidity and 
  reserves, market conditions and applicable law and regulations. Under 
  this policy, the Company seeks to maintain the discount at which the 
  Company's shares trade at no more than 5% below the latest published 
  NAV. 
 
  Shareholder Event & Communications 
  May I remind you that the Company has its own website which is available 
  at: www.incomeandgrowthvct.co.uk . The Investment Adviser last held 
  a Shareholder Event on behalf of the Mobeus VCTs on the afternoon 
  of 23 March 2023 with a live Q&A session which we hope you were able 
  to join. Double the number of attendees joined the meeting compared 
  to last year. A recording of the event is available via a link on 
  the Company's website. 
 
  Fraud Warning 
  Shareholders continue to be contacted in connection with sophisticated 
  but fraudulent financial scams which purport to come from the Company 
  or to be authorised by it. This is often by a phone call or an email 
  usually originating from outside of the UK, claiming or appearing 
  to be from a corporate finance firm offering to buy your shares at 
  an inflated price. 
  Further information and fraud advice plus details of who to contact, 
  can be found in the Shareholder Information section in the Half-Year 
  Report. 
  Environmental, Social and Governance ("ESG") 
  The Board and the Investment Adviser believe that the consideration 
  of environmental, social and corporate governance ("ESG") factors 
  throughout the investment cycle will contribute towards enhanced shareholder 
  value. 
  Gresham House has a team which is focused on sustainability and the 
  Board views this as an opportunity to enhance the Company's existing 
  protocols and procedures through the adoption of the highest industry 
  standards. The future FCA reporting requirements consistent with the 
  Task Force on Climate-related Financial Disclosures, which commenced 
  on 1 January 2021, do not currently apply to the Company but will 
  be kept under review, the Board being mindful of any recommended changes. 
  Consumer Duty 
  The Financial Conduct Authority (FCA) has introduced the concept of 
  Consumer Duty, the rules and principles of which come into effect 
  in July 2023. Consumer Duty is an advance on the existing concept 
  of 'treating customers fairly'. It sets higher and clearer standards 
  of consumer protection across financial services and requires all 
  firms to put their customers' needs first. 
  As the Company is not regulated by the FCA it does not directly fall 
  into the scope of Consumer Duty. However, Gresham House as the Investment 
  Adviser and any IFAs or financial platforms used to distribute future 
  fundraising offers, are subject to Consumer Duty. 
  It is incumbent on all parties to uphold the principles behind Consumer 
  Duty and to that end we are working with the Investment Adviser to 
  review the information we should provide to assist consumers and their 
  advisers to discharge their obligations under Consumer Duty. 
 
  Outlook 
  The geopolitical and economic context for the next year is liable 
  to be challenging. However, this can also provide an opportunity for 
  the Company to source and make high quality investments whilst building 
  strategic stakes in existing portfolio businesses with great potential 
  for the future. The prospects for new investment flow are good. Notwithstanding 
  the successful exits of EOTH and Tharstern, the exit environment will 
  likely be subdued in comparison to recent years. However, the Company 
  has ample liquidity and is not time-limited. The combined impact of 
  inflation, interest rates and restrictions in Government spending 
  can be expected to impact both consumer and business confidence in 
  the near term. We therefore anticipate that further stresses will 
  become evident over the forthcoming year. We expect that all sectors 
  will be vulnerable, although the Company has a large and well diversified 
  portfolio, managed by a professional and capable investment team, 
  which helps to mitigate the challenges that lie ahead. 
  I would like to take this opportunity once again to thank all Shareholders 
  for your continued support and to extend a warm welcome to new Shareholders. 
 
  Maurice Helfgott 
  Chair 
  13 June 2023 
 
 Investment ADVISER'S Review 
 
 Portfolio review 
  The continuing harsh economic conditions continue to create challenging 
  circumstances for portfolio companies. UK business has seen both demand 
  and operating margins come under pressure in the face of marked increases 
  in inflation and interest rates which have not been experienced by 
  a generation of management teams. 
  In the latter months of 2022 and into 2023, market multiples began 
  to stabilise. However, portfolio companies' trading performance has 
  now begun to experience the impact of declining consumer confidence 
  and business investment. 
  Whilst inflation is expected to moderate following the rises in base 
  rates, it is still at a very high level and has impacted economic 
  growth expectations. In contrast to this, there are early signs that 
  supply chains are returning to normality, that labour shortages are 
  easing and that there are pockets of positive market sentiment. Furthermore, 
  the direct impact of high interest rates on the Company's portfolio 
  is negligible as most portfolio companies do not have any significant 
  third-party debt. The outlook is therefore mixed, and the emphasis 
  is thus on robust funding structures and being prepared for all eventualities. 
  The Gresham House non-executive directors who sit on each portfolio 
  company board have responded by working with their management teams 
  to ensure that appropriate scenario planning has been done to achieve 
  the best results during these uncertain times. There is also now a 
  greater focus on cash management and capital efficiency. With ample 
  liquidity following the recent fund raise, the Company is also well 
  placed to support portfolio companies with follow-on funding where 
  it is appropriate and can be structured on attractive terms. Strong 
  liquidity will also benefit the attractive new investment environment 
  for the Company which, in our view is strong and we are seeing a number 
  of interesting investment propositions. 
  There are some specific highs in the portfolio such as Preservica 
  which continues to see strong trading and is out-performing budget. 
  The exits from EOTH and Tharstern were also excellent results after 
  long running processes which had to negotiate numerous economic and 
  geo-political hurdles. By contrast, there were also some significant 
  falls, the largest were MyTutor and Connect Childcare with a further 
  fall in the quoted share price of Virgin Wines UK plc. Disappointingly, 
  after experiencing very difficult trading conditions since the onset 
  of COVID-19, Tapas Revolution has entered administration since the 
  period-end with no expected recovery for the VCTs. 
 
  The portfolio movements in the period are summarised as follows: 
                                        2023     2022 
                                        GBPm     GBPm 
  ---------------------------------  -------  ------- 
   Opening portfolio value             73.08    88.15 
   New and follow-on investments        1.01     3.25 
   Disposal proceeds                  (9.13)   (6.24) 
   Net realised gains                   0.41     1.21 
   Unrealised v aluation movements    (1.01)     2.99 
  ---------------------------------  -------  ------- 
   Portfolio value at 31 March         64.36    89.36 
  ---------------------------------  -------  ------- 
 
 
  Valuation changes of portfolio investments still held 
  The portfolio generated net unrealised losses of GBP(1.01) million 
  in the first half of its financial year. 
  The total valuation increases were GBP4.36 million. The main valuation 
  increases were in: 
  Preservica - GBP3.44 million 
  Aquasium - GBP0.32 million 
  Orri - GBP0.29 million 
 
  Preservica is performing well and increasing its recurring revenues 
  whilst Aquasium has started to gain significant traction with its 
  products. Finally, Orri has benefitted from a first time valuation 
  uplift due to the investment structuring. 
  The total valuation decreases were GBP(5.37) million. The main valuation 
  decreases were: 
  MyTutor - GBP(1.15) million 
  Connect Childcare - GBP(1.07) million 
  Virgin Wines - GBP(0.66) million 
 
  MyTutor has been impacted by declining sector multiples combined with 
  slower than anticipated growth over the year. Connect Childcare has 
  not grown revenues as quickly as hoped and is now prioritising capital 
  efficiency. Virgin Wines continues to suffer from negative sentiment 
  across the consumer sector. Following announcements of operational 
  issues over its key Christmas period, it has seen a further decline 
  in its quoted share price, although underlying trading remains resilient 
  and compares very favourably to its peers. 
  The Company's investment values have been insulated partially from 
  market movements and lower revenue growth by the preferred investment 
  structures employed in many of the portfolio companies. This acts 
  to moderate valuation swings and the net result is a more modest decline 
  in portfolio value. 
 
  The portfolio's valuation changes in the period are summarised as 
  follows: 
   Investment Portfolio Capital Movement                2023     2022       2020 
                                                        GBPm     GBPm       GBPm 
  -------------------------------------------------  -------  -------  --------- 
   Increase in the value of unrealised investments      4.36    11.98      26.68 
   Decrease in the value of unrealised investments    (5.37)   (8.99)     (0.61) 
  -------------------------------------------------  -------  -------  --------- 
   Net increase in the value of unrealised 
    investments                                       (1.01)     2.99      26.07 
  -------------------------------------------------  -------  -------  --------- 
   Realised gains                                       1.28     1.21       3.67 
   Realised losses                                    (0.87)        -   (0 . 08) 
  -------------------------------------------------  -------  -------  --------- 
   Net realised gains in the period                     0.41     1.21       3.59 
  -------------------------------------------------  -------  -------  --------- 
   Net investment portfolio movement in the 
    period                                            (0.60)     4.20      29.66 
  -------------------------------------------------  -------  -------  --------- 
 
 
 New investments during the period 
  The Company made one new investment of GBP1.01 million during the 
  period, as detailed below: 
      Company          Business        Date of Investment       Amount of new 
                                                               investment (GBPm) 
                      Environmental 
                           data 
    Connect Earth        provider           March 2023               0.34 
                    ----------------  ---------------------  -------------------- 
   Founded in 2021, Connect Earth (connect.earth) is a London-based 
    environmental data company that seeks to facilitate easy access 
    to sustainability data. With its carbon tracking API technology, 
    Connect Earth supports financial institutions in offering their 
    customers transparent insights into the climate impact of their 
    daily spending and investment decisions. Connect Earth's defensible 
    and scalable product platform suite has the potential to be a 
    future market winner in the nascent but rapidly growing carbon 
    emission data market, for example, by enabling banks to provide 
    end retail and business customers with carbon 
    footprint insights of their spending. This funding round is designed 
    to facilitate the delivery of the technology and product roadmap 
    to broaden the commercial reach of a proven product. 
                             Education and 
                              neuro-inclusion 
       Cognassist                solutions              March 2023        0.67 
   Cognassist (cognassist.com) is an education and neuro-inclusion 
    solutions company that provides a Software-as-a-Service (SaaS) 
    platform focused on identifying and supporting individuals with 
    hidden learning needs. The business is underpinned by extensive 
    scientific research and an extensive cognitive dataset. Cognassist 
    has scaled its underlying business within the education market. 
    This investment will empower Cognassist to continue its growth 
    within the education market and penetrate the enterprise market, 
    where demand for neuro-inclusive solutions to adequately support 
    employees is rapidly emerging. 
 Realisations during the period 
  The Company completed two exits during the period, as detailed below: Company     Business                  Period of investment   Total cash proceeds 
                                                                   over the life 
                                                                 of the investment/ 
                                                                   Multiple over 
                                                                        cost 
   EOTH        Branded clothing          October 2011 to          GBP9.54 million 
                (Rab and Lowe             November 2022              6.9x cost 
                Alpine) 
   The Company realised its equity investment in EOTH for GBP7.34 
    million (realised gain in the period: GBP0.42 million) including 
    preference dividends. Total proceeds received over the life of 
    the investment were GBP9.54 million compared to an original investment 
    cost of GBP1.38 million, representing a multiple on cost of 6.9x 
    and an IRR of 23.2%. The Company has retained its interest yielding 
    loan stock investment. Once repaid, this should increase the multiple 
    on cost to 7.9x. 
   Tharstern   Software based            July 2014 to March       GBP4.00 million 
                management information    2023                       2.6x cost 
                systems 
   The Company realised its investment in Tharstern Group for GBP2.85 
    million (realised gain in period: GBP0.86 million). Total proceeds 
    received over the life of the investment were GBP4.00 million 
    compared to an original cost of GBP1.54 million, representing 
    a multiple on cost of 2.6x and an IRR of 15.0%. 
 
 
  Loan repayments and other proceeds in the period 
  The Company received a loan repayment from Jablite Holdings Limited 
  of GBP0.07 million. 
 
  Investment portfolio yield 
  In the period under review, the Company received the following amounts 
  in loan interest and dividend income: 
   Investment Portfolio Yield                   2022    2022 
                                                GBPm    GBPm 
 
   Interest received in the period              0.31    0.84 
   Dividends received in the period             0.56    0.40 
  ------------------------------------------  ------  ------ 
   Total portfolio income in the period(1)      0.87    1.24 
  ------------------------------------------  ------  ------ 
   Portfolio Value at 31 March                 64.36   89.36 
  ------------------------------------------  ------  ------ 
   Portfolio Income Yield (Income as a % of 
    Portfolio value at 31 March)                1.4%    1.4% 
  ------------------------------------------  ------  ------ 
 
 
  (1) Total portfolio income in the period is generated solely from 
  investee companies within the portfolio 
 
 New investments made after the period-end 
  The Company made one new investment of GBP0.63 million after the period-end, 
  as detailed below: 
    Company           Business           Date of Investment      Amount of further 
                                                                  investment (GBPm) 
 
                   Sustainability 
                  impact assessment 
    Dayrize         tool provider             May 2023                  0.63 
              -----------------------  ----------------------  --------------------- 
   Founded in 2020, Amsterdam-based Dayrize has developed a rapid 
    sustainability impact assessment tool that delivers product-level 
    insights for consumer goods brands and retailers, enabling them 
    to be leaders in sustainability. Its proprietary software platform 
    and methodology bring together an array of data sources to provide 
    a single holistic product-level sustainability score that is comparable 
    across product categories in under two seconds. This funding round 
    is to drive product development and develop its market strategy 
    to build on an opportunity to emerge as a market leader in the 
    industry. 
 
 
 
  Environmental, Social, Governance considerations 
  Gresham House is committed to sustainable investment as an integral 
  part of its business strategy. During the year, the Investment Adviser 
  has formalised its approach to sustainability and has put in place 
  several processes to ensure environmental, social and governance factors 
  and stewardship responsibilities are built into asset management across 
  all funds and strategies, including venture capital trusts, for example, 
  individual members of the investment team now have their own individual 
  ESG objectives set which align with the wider ESG goals of Gresham 
  House. For further details, Gresham House published its third Sustainable 
  Investment Report in April 2023, which can be found on its website 
  at: www.greshamhouse.com . 
  Outlook 
  Whilst the period under review has once again been marked with volatility 
  and uncertainty as a result of a number of factors affecting both 
  the global and UK economy, the portfolio has continued to trade well 
  under the circumstances. Rising costs and recessionary pressures will 
  place further strains on the portfolio. However, the portfolio is 
  well diversified and Gresham House has an experienced team working 
  closely with them to help them navigate the challenges that lie ahead. 
  In terms of new investment, evidence shows that investing through 
  the economic cycle has the potential to yield strong returns and Gresham 
  House is seeing a number of opportunities, both new deals and further 
  investment into the existing portfolio, which have the potential to 
  drive shareholder value over the medium term. 
 
  Gresham House Asset Management Limited 
  Investment Adviser 
  13 June 2023 
 
  Half-Year Report 
  Copies of this statement are being sent to all shareholders. Further 
  copies are available free of charge from the Company's registered 
  office, 5 New Street Square, London, EC4A 3TW, or can be downloaded 
  via the Company's website at www.incomeandgrowthvct.co.uk . 
 
  Contact 
  Gresham House Asset Management Limited 
  Company Secretary 
  mobeusvcts@greshamhouse.com 
  +44 20 7382 0999 
 

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IR FXLLFXQLBBBE

(END) Dow Jones Newswires

June 14, 2023 02:00 ET (06:00 GMT)

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