TIDMMAV4 TIDMTTM
RNS Number : 1625Y
Maven Income & Growth VCT 4 PLC
02 September 2022
Maven Income and Growth VCT 4 PLC
Interim Results for the Six Months Ended 30 June 2022
(Unaudited)
The Directors announce the unaudited interim results for the six
months ended 30 June 2022.
Highlights
-- NAV total return at 30 June 2022 of 154.16p per share
-- NAV at 30 June 2022 of 68.56p per share
-- Interim dividend of 2.00p per share declared
-- Offer for Subscription closed raising GBP16 million, with a
new fund raising to be launched during the Autumn of 2022
-- Three new investments added to the portfolio, with a further
two completed after the period end
-- Three profitable private company realisations completed
during the period, with a further two completed post the period
end
-- Partial exit from AIM quoted Ideagen, generating proceeds of
GBP1.3 million. A full exit was achieved post the period end,
generating a total return of 9.0x cost over the life of the
investment
Peter Linthwaite, Chairman and Independent Non-executive
Director
It was with deep regret that, on 24 June 2022, the Board
announced the passing of Peter Linthwaite, on 17 June 2022,
following a prolonged illness. Peter became a Director of your
Company following its merger with Maven Income and Growth VCT 2 PLC
in November 2018 and served as Chairman from May 2019. During his
tenure, Peter made a significant contribution to the growth and
strategic development of your Company, was instrumental in
completing the merger with Maven Income and Growth VCT 6 PLC in
December 2019 and oversaw several new Offers for Subscription,
which have helped to grow the net asset value to over GBP89
million.
The Board and the Manager wish to record their gratitude for the
considerable contribution that Peter made to the Company during his
period in office and offer their sincerest condolences to his wife
and family.
Overview
Notwithstanding inflationary pressures and the general economic
uncertainty, your Company has continued to make steady progress
during the first half of the financial year. Whilst the majority of
the companies within the portfolio have continued to deliver
revenue growth and achieve commercial milestones, NAV total return
at the period end has reduced slightly compared to the position at
the year end. This reflects the volatility within listed markets,
which has impacted the value of your Company's AIM quoted
portfolio. Conversely, across the unlisted portfolio, there are a
growing number of earlier stage companies that are delivering their
commercial objectives and achieving scale, which has resulted in
uplifts to certain valuations. There has also been notable
realisation activity, with a number of investee companies
attracting acquisition interest from domestic and international
buyers. Pleasingly this has resulted in three profitable private
company realisations. In addition, AIM quoted Ideagen announced
that it had agreed terms on a recommended all cash offer at a
significant premium to the underlying share price. The Manager was
able to take advantage of good market liquidity and partially
realised the holding during the period, with a full exit completing
when the acquisition was approved in early July, generating a total
return for your Company of 9.0x cost over the life of the
investment. In recognition of this exit activity, and the
commitment to make regular tax-free distributions, an interim
dividend of 2.00p per share has been declared for payment to
Shareholders in October 2022.
During the reporting period, the impact of the pandemic receded,
enabling most global economies to re-open, with activity largely
recovering in response to pent up demand. However, the invasion of
Ukraine has had a destabilising impact on economic growth, with
financial markets and commodity prices expected to remain volatile.
Furthermore, as global prices, particularly energy costs, continue
to rise, high inflation is likely to remain a persistent feature
and the impact of the cost of living crisis is still to take full
effect within the UK. It is, however, worthwhile noting that your
Company maintains a low level of direct exposure to consumer facing
sectors such as hospitality, leisure, retail, and travel, with the
investment strategy primarily focused on defensive areas such as
software, cybersecurity, data analytics and healthcare, where
investee companies with exposure to these sectors have continued to
report good growth and are less exposed to inflationary pressures.
It is also important to note that, as a result of the considered
approach taken by Maven in structuring new investments, the level
of external debt across the portfolio is low, which mitigates the
risk of further near term interest rate rises. The Manager will
continue to monitor the impact of the economic situation on your
Company's investment strategy and will maintain a regular dialogue
with investee companies to assist with any specific issues that may
arise.
Against this backdrop, your Company has made further strategic
progress. Following the successful fund raising, which closed at
the end of May 2022 having raised GBP16 million, net asset value at
the period end increased to GBP89 million. The new capital provides
your Company with sufficient liquidity to enable it to continue
with its long-term objective of building a large and sectorally
diversified portfolio of private and AIM quoted companies that have
the potential to achieve scale and generate a capital gain on exit.
Throughout the period, the Manager has continued to see good demand
for equity investment from ambitious, growth focused businesses
across all of its regional offices. In addition to the three new
private companies added to the portfolio during the period, there
is a strong pipeline of potential investments across a wide range
of sectors, all at various stages of due diligence and legal
process, which should result in a healthy rate of new investment
activity during the second half of the financial year. Maven
retains a selective approach to investment and continues to favour
companies that operate in defensive or counter cyclical sectors,
and will generally only invest where meaningful commercial traction
and strong revenue growth can be demonstrated. This is often
measured in terms of contracted annual recurring revenue (ARR),
which provides a degree of visibility on the growth trajectory and,
given its recurring nature, can provide some protection during a
period of economic instability. It is encouraging to report that
many of the earlier stage private companies in the portfolio have
continued to deliver sustained revenue growth during the period
under review which, in certain cases, has merited an uplift to
valuations to reflect the progress that has been achieved.
Over recent years, as part of the broader investment strategy,
your Company has been gradually increasing its exposure to AIM,
with the objective of constructing a diversified portfolio that is
balanced between earlier stage private companies, more mature
unlisted holdings and AIM quoted companies. The Manager believes
that selective exposure to AIM provides access to a wider range of
growth companies, often with more favourable liquidity
characteristics that can provide exposure to dynamic and
complementary sectors such as new battery technology, renewable
energy, biotech or medtech. A notable development in the reporting
period was the announcement by AIM quoted regulatory and compliance
software specialist Ideagen that it had agreed terms of a
recommended all cash offer at a share price of 350p per share,
which represented a 52% premium to the share price prior to the
offer. The Manager was able to sell a significant proportion of the
holding at prices in excess of the offer level, with the balance
realised when the transaction completed formally in July. The exit
from this investment has resulted in a total return of 9.0x cost
over the life of the investment and generated proceeds of GBP1.3
million. Elsewhere in the AIM quoted portfolio, the performance has
been more muted and, whilst most of the holdings have continued to
issue reassuring market announcements, overall performance has been
impacted by the general volatility that has affected global
financial markets since the turn of the year.
Within the private company portfolio, three profitable exits
were completed. In January 2022, 3D photonic specialist Optoscribe
was acquired by a US corporate buyer, generating a total return of
1.85x cost over the life of the investment. In March, the exit from
the holding in energy services specialist RMEC completed through a
sale to an Aberdeen based trade acquirer, generating a total return
of 2.3x cost over the life of the investment. In June, the residual
holding in insurance broker Global Risk Partners (Maven Co-invest
Endeavour) was realised through the sale to a US listed insurance
broker. This exit generated a further return of 1.24x cost, taking
the total money multiple to 3.38x over the life of the
investment.
The Manager is encouraged by the level of external interest in
the unlisted portfolio, where a number of companies have received
approaches from potential buyers that recognise the strategic value
within these businesses. As the early stage portfolio matures, the
Manager is gaining greater clarity on the holdings that have the
potential to generate future growth in Shareholder value.
During the period, your Company completed two investments in
companies that have particularly strong environmental, social and
governance (ESG) credentials, and which are demonstrating good
growth in new and expanding markets: Baby care brand Pura has
developed a range of eco-friendly baby nappies and wipes that are
completely plastic free and biodegradable, with accreditation from
Allergy UK and the British Skin Foundation; and iPac a designer and
manufacturer of bespoke sustainable plastic packaging for the UK
food sector. ESG considerations are becoming an increasingly
important feature of investment and can also be key for potential
future acquirers. Further details on the Manager's approach to ESG
can be found on page 15 of the Interim Report.
Interim Dividend
In respect of the year ending 31 December 2022, an interim
dividend of 2.00p per Ordinary Share will be paid on 7 October 2022
to Shareholders on the register at 9 September 2022. Since the
Company's launch, and after receipt of this latest dividend, 87.60p
per share will have been distributed in tax free dividends. It
should be noted that the payment of a dividend reduces the NAV of
the Company by the total cost of the distribution.
Dividend Policy
As Shareholders will be aware from recent Annual and Interim
Reports, decisions on distributions take into consideration a
number of factors, including the realisation of capital gains, the
adequacy of distributable reserves, the availability of surplus
revenue and the VCT qualifying level, all of which are kept under
close and regular review.
The Board and the Manager recognise the importance of tax-free
distributions to Shareholders and, subject to the considerations
outlined above, will seek, as a guide, to pay an annual dividend
that represents 5% of the NAV per share at the immediately
preceding year end.
The Directors would like to remind Shareholders that, as the
portfolio continues to expand and a greater proportion of holdings
are invested in younger companies, the timing of distributions will
be more closely linked to realisation activity, whilst also
reflecting the Company's requirement to maintain its VCT qualifying
level. If larger distributions are required as a consequence of
significant exits, this will result in a corresponding reduction in
NAV per share. However, the Board and the Manager consider this to
be a tax efficient means of returning value to Shareholders, whilst
ensuring ongoing compliance with the VCT legislation.
Dividend Investment Scheme (DIS)
Your Company operates a DIS, through which Shareholders can, at
any time, elect to have their dividend payments utilised to
subscribe for new Ordinary Shares issued by the Company under the
standing authority requested from Shareholders at Annual General
Meetings. Shares issued under the DIS should qualify for VCT tax
relief applicable for the tax year in which they are allotted,
subject to an individual Shareholder's particular
circumstances.
Shareholders can elect to participate in the DIS in respect of
future dividends by completing a DIS mandate. In order for the DIS
to apply to the interim dividend that is due to be paid on 7
October 2022, a completed DIS mandate must be received by the
Registrar (The City Partnership) before 23 September 2022, this
being the next dividend election date. The mandate form, terms
& conditions and full details of the scheme (including tax
considerations) are available from the Company's website at:
mavencp.com/migvct4. Election to participate in the DIS can also be
made through the Registrar's online investor hub at:
maven-cp.cityhub.uk.com.
If a Shareholder is in any doubt about the merits of
participating in the DIS, or their own tax status, they should seek
advice from a suitably qualified adviser.
Joint Offers for Subscription
On 20 September 2021, your Company, alongside Maven Income and
Growth VCT 3 PLC, launched joint Offers for Subscription for new
Ordinary Shares, for up to GBP20 million in aggregate (GBP10
million for each company) with a combined over-allotment facility
of up to GBP20 million in aggregate (GBP10 million for each
company). Your Company's Offer closed on 27 May 2022 raising a
total of GBP16 million for the 2021/22 and 2022/23 tax years.
In respect of the 2021/22 tax year, there were three allotments
of new Ordinary Shares. An allotment of 11,772,141 new Ordinary
Shares completed on 4 February 2022, with a further allotment of
3,334,456 new Ordinary Shares on 23 March 2022 and a final
allotment of 4,184,073 new Ordinary Shares on 5 April 2022. An
allotment of 2,282,396 new Ordinary Shares for the 2022/23 tax year
took place on 6 June 2022.
This additional liquidity will enable your Company to continue
to expand its portfolio by investing in ambitious, growth focused
businesses that operate across a broad range of market sectors, and
which have the potential to generate a capital gain on exit. It
will also ensure that existing portfolio companies can continue to
be supported through follow- on funding where there is an ongoing
business case that merits further investment. The funds raised will
also allow your Company to maintain its share buy-back policy,
whilst also spreading costs over a wider asset base in line with
the objective of maintaining a competitive total expense ratio for
the benefit of all Shareholders.
On 8 July 2022 it was announced that the Directors have elected
to launch a new Offer for Subscription, which will run alongside
Offers by the three other Maven managed VCTs. Full details of the
Offers will be included in the forthcoming Prospectus, which is
expected to be published in Autumn 2022.
Portfolio Developments
Integrated drug discovery service provider BioAscent Discovery
continues to make encouraging progress across all business lines
and is maintaining an impressive growth rate. Since the Maven VCTs
first invested in 2018, the business has averaged a year-on-year
growth rate of 120% in its integrated discovery projects, alongside
40% annualised growth for its more established compound storage and
management services. It was also named top performing outsourcer
for the second year running, and second place overall, in the
Alantra Pharma Fast 50, which ranks the UK's fastest growing
privately owned pharma and pharma service companies. The near term
strategic objective is to expand internationally and positive
discussions are progressing with several prospective clients in
North America and Europe. During the pandemic, BioAscent worked as
part of a consortium, led by the University of Glasgow, to
establish a national COVID-19 testing facility for high-throughput
clinical testing. It is pleasing to note that the consortium
(Lighthouse Laboratory) was awarded the Knowledge Exchange/Transfer
Initiative of the Year at the Times Higher Education (THE) Awards
2021.
During the period under review, Bright Network has continued to
make good commercial progress and has achieved a four fold increase
in revenue since your Company first invested. The business has
developed a powerful database that enables the top UK based
university undergraduates and recent graduates to connect with
leading employers, and offers a comprehensive range of services,
including providing advice and support to assist members through
their job or internship search process, as well as offering bespoke
in-person networking events. The platform has grown strongly and
currently has around 700,000 members, with diversity and inclusion
being actively monitored and promoted. The business works with over
300 leading employers including Amazon, Bloomberg, Clifford Chance,
Dyson, Google and Vodafone, and its platform is endorsed by the
CBI, the Department for Work & Pensions and the Institute of
Student Employers. Over the coming year, Bright Network will focus
on expanding its market position and enhancing its services, with a
view to entering specific overseas territories.
Fintech specialist Delio has made encouraging commercial
progress and continues to grow its customer base and increase ARR.
The business designs and develops digital private asset
infrastructures for global financial institutions, such as angel
networks, family offices and wealth managers, with a growing
current client base that includes Barclays, Coutts, Rabobank and
the UK Business Angels Association. Its white label platform
provides a secure, compliant and efficient system for connecting
investors and capital with private market investment opportunities.
Delio currently has over GBP26 billion of live deals on its
platform and has added a number of new clients this year, which has
generated further growth in ARR. In February 2022, Delio secured
significant additional investment from another institutional
investor, with the Maven VCTs also participating. The new funding
is being used to accelerate product innovation and to help
establish a business presence in the US, which is regarded as a key
growth market.
During the reporting period, analytical software provider
e.fundamentals continued to make positive commercial progress,
delivering further growth in ARR and expanding its client base. The
business provides digital shelf analytics to major consumer
packaged goods brands and helps clients to measure and optimise
their ecommerce performance to ensure that they maximise an online
listing. Over the past two years, e.fundamentals has experienced
rapid growth, consistent with the acceleration in online grocery
and household shopping during the pandemic, which has resulted in a
600% increase in ARR. e.fundamentals continued to add new clients
and established a credible list that includes well known brands
such as Arla, Kellogg's, Mars, PepsiCo, Royal Canin and Vodafone.
During the reporting period, an offer to acquire the business was
received from CommerceIQ, a US private equity backed trade
consolidator. The exit completed shortly after the period end
generating a total return on investment of 2.35x cost, which
comprises of an initial cash return of 1x cost, plus an equity
stake in the enlarged business, which has the potential to deliver
a further return to
shareholders in the future.
Horizon Ceremonies has made strong operational and strategic
progress since your Company first invested in 2017, and now has a
portfolio of three operational crematoria. Trading at the original
site in the Clyde Coast and Garnock Valley remains strong and ahead
of plan. The second crematorium, in Cannock, Staffordshire, has
traded ahead of plan since opening in April 2021, and the
management team is working with local funeral directors and
undertakers to increase awareness of the service provided. The
third crematorium, in the suburbs of Glasgow, opened in mid-
December 2021 and is also trading well. There are two further sites
in the near term pipeline. The planning appeal process at Oxted in
Surrey is ongoing and a planning application at Hooton, near
Chester, has been submitted. The medium term strategic objective
remains to build a portfolio of modern, technologically advanced
crematoria that meet the best environmental standards, whilst
offering a compassionate service for families, and to sell the
business to a trade, private equity or infrastructure acquirer when
all sites reach maturity.
Since first investment, HR technology platform provider HiveHR
has made encouraging commercial progress and has achieved good
revenue growth through the rapid addition of new clients. Employee
engagement is becoming an increasingly important component of
effective management within any organisation. HiveHR's cloud-based
"software as a service" solution offers a comprehensive range of
tools and resources that help employers to collate and analyse
employee feedback in real time to enable them to better understand
employee concerns or suggestions, and to implement company wide
policy updates or broader change initiatives. HiveHR now has over
170,000 live users, and its clients include Evri, Financial
Services Compensation Scheme, Tarmac and Travelodge, as well as a
number of universities, housing associations, charities and local
authorities. HiveHR is well positioned in a high growth sector and
the focus for the year ahead will be to continue to expand the
business and accelerate growth in ARR.
Marketing technology provider Nano Interactive continues to
trade strongly and is meeting its key performance targets. The
business has established a strong position in the "intent
targeting" market, where it uses its proprietary technology to
assess multiple intent signals, such as online search history. This
analysis enables clients to place adverts in real time, targeting
customers that have indicated an interest in a product or service,
and helps them enhance the effectiveness of digital advertising
campaigns. Importantly, Nano's platform achieves this in an
identity- free way, without the use of third party cookies or email
addresses, thereby respecting the privacy of online users. The
business has made meaningful progress over the past year and has an
extensive client list that includes household names such as Mars,
McDonalds, Microsoft, Pets at Home and Vodafone. During 2021, Nano
also helped the UK Government to achieve targeted messaging with
its COVID-19 communication strategy. Nano is well positioned to
achieve further scale and the near term strategic objective is to
develop its presence in the US, which should help generate further
revenue growth.
Over the past year, language analytics software specialist
Relative Insight has maintained an impressive growth rate,
increasing ARR and expanding its client base. The business also
secured Series B funding from another institutional investor, which
provides additional capital to accelerate the growth plan. Relative
Insight has experienced strong demand for its AI-powered
linguistics technology platform, which enables clients to analyse
any source of text data and then create content that is designed to
appeal to a specific audience to increase the effectiveness of
advertising and marketing campaigns. The software solution has been
adopted by numerous blue chip names such as Amazon, John Lewis,
Nespresso and Sky, alongside large marketing and advertising
agencies. Following the recent fund raising, the business is
capitalised to deliver further growth and has the medium term
objective of establishing a presence in the US.
During the period, Rockar, a developer of a disruptive digital
platform for buying new and used cars, has continued to grow its
market presence and build commercial relationships with global car
manufacturers and national dealership groups that are keen to
develop a digital alternative to replace or complement the
traditional showroom model. Following the demerger of the retail
division in May 2021, Rockar is now focused exclusively on
developing and expanding its technology platform and is currently
working on projects with manufacturers such as BMW and Jaguar Land
Rover, and is progressing discussions with several others. Over the
past year, there has been a rapid acceleration in the move to
digitalise the automotive market, which has been one of the few
remaining major retail sectors to fully embrace a technological
solution. Rockar remains at the forefront of its sector, in terms
of both its technological capabilities and operational
experience.
Whilst the majority of companies within the portfolio have made
encouraging progress in the year to date, there are a small number
that have not achieved their commercial objectives and where the
value of the investment has been written down. Speciality
industrial services provider Cat Tech experienced a particularly
challenging operating environment during the pandemic, as
international travel restrictions prevented the completion of
scheduled maintenance programmes in its overseas territories.
Whilst Cat Tech provides highly specialist services, which are a
health and safety requirement, the COVID-19 related travel
disruption coupled with deferred shutdowns at key client sites has
resulted in the scheduled programme of works being delayed. Trading
in the current year is expected to be below budget and a provision
has been taken against the value of this investment. In addition, a
full write down has been taken against the value of the holding in
Boiler Plan, which experienced challenging trading during the
pandemic and has subsequently failed to achieve its business
plan.
Liquidity Management
The Board and the Manager continue to operate an active
liquidity management policy, with the objective of generating
income from cash resources held prior to investment. The Manager
has constructed a focused portfolio of listed investment trust
holdings and will continue to consider any other permitted
investment options that have the potential to meet this
objective.
New Investments
During the period, three new VCT qualifying private companies
were added to the portfolio:
-- iPac is an established designer and manufacturer of
sustainable thermoformed plastic packaging, which is used by the
food and pharmaceutical sectors. The business is at the leading
edge of sustainable manufacturing and its products are 100%
recyclable and use over 85% recycled content. The plant is powered
entirely through renewable sources and less than 2% of its waste
goes into landfill. The VCT funding is being used to develop new
product lines, which are more efficient and produce less waste, and
to open a second manufacturing facility in the North East of
England.
-- Pura is a baby care brand that specialises in eco-friendly
wipes and nappies. Pura's plant based wipes are 100% plastic free
and biodegradable, as well as being accredited by Allergy UK and
the British Skin Foundation, while the nappies are enhanced with
organic cotton and made using green energy with no production waste
to landfill. Since launching in 2020, Pura has established itself
through a direct-to-consumer, subscription based website model and
has gained recognition within its core target market with its
eco-friendly nappies recently awarded Gold in the Made for Mums
Awards 2022. The VCT funding is being used to support the expansion
into the business-to- business market, which is specifically
targeted at the UK and US supermarket sectors. Pura has already
made good progress in this area, having secured contracts with
Amazon, Costco and Ocado, with the brand also recently launching in
Asda.
-- Zinc Systems is a provider of a software-based solution for
safety, security and critical event management, which currently
supports clients in four key sectors: corporate, government,
retail, and security and facilities management. Zinc's solution,
which provides real time support for incidents such as fire, online
fraud or compliance breaches, is fully integrated with a client's
system and configured for mobile access, meaning that critical
information is instantly available and remotely accessible. The
business has achieved good scale and currently has over 30,000
users in more than 20 countries, with a strong client list that
includes B&Q, City of London Police and the Environment Agency.
The VCT funding is being used to enhance the sales and marketing
function and to progress product development.
The following investments have been completed during the
reporting period:
Investment
cost
Investments Date Sector GBP'000
---------------------------------- -------------- ------------------------------- ----------
New unlisted
Pharmaceuticals, biotechnology
Kanabo GP Limited(1) February 2022 & healthcare 2,986
mypura.com Group Limited (trading Business services
as Pura) January 2022 (consumer) 216
Reed Thermoformed Packaging
Limited Business services
(trading as iPac) March 2022 (manufacturing) 100
Zinc Digital Business Solutions
Limited June 2022 Software 199
---------------------------------- -------------- ------------------------------- ----------
Total new unlisted 3,501
----------------------------------------------------------------------------------- ----------
Follow-on unlisted
Boiler Plan (UK) Limited February 2022 Business services 96
Marketing &
e.fundamentals (Group) Limited January 2022 advertising technology 75
March & April
HiveHR Limited(2) 2022 Software 17
MirrorWeb Limited May 2022 Software 100
Push Technology Limited May 2022 Data analytics 100
Shortbite Limited (trading as
Fixtuur) January 2022 Software 72
---------------------------------- -------------- ------------------------------- ----------
Total follow-on unlisted 460
----------------------------------------------------------------------------------- ----------
Total investments 3,961
----------------------------------------------------------------------------------- ----------
(1) The holding in this company resulted from the sale of The GP
Service (UK) Limited, which was structured as a share for share
exchange. In line with IPEV Guidelines, the valuation of the
holding has been adjusted to reflect the market value of the listed
shares as at 30 June 2022.
(2) Follow-on investment completed in two tranches.
At the period end, the portfolio stood at 114 unlisted and
quoted investments, at a total cost of GBP56.10 million.
Realisations
In January 2022, the holding in 3D photonic circuit specialist
Optoscribe was realised through the sale to a US corporate buyer.
Since the VCTs first invested in 2019, Maven supported the
company's growth through several funding rounds, enabling the
business to strengthen strategic partnerships and move into higher
volume production. Optoscribe manufactures high-performance
photonic integrated circuits for use by optical transceiver
manufacturers in the production of glass-based 3D circuits in the
telecom, datacom and mobile network markets. Its technology
produces components primarily for the cloud data centre sector,
which has experienced strong growth as consumer demand increases
for access to high quality content. The exit generated a total
return of 1.85x cost over the holding period.
In early March 2022, the residual holding in Global Risk
Partners (Maven Co-invest Endeavour) was provisionally sold to US
listed insurance broker Brown & Brown, with the sale formally
completing in June following regulatory approval. The acquisition
enables Brown & Brown to establish itself in the UK retail
insurance sector, where it has not previously had a large presence.
As part of the initial sale of Global Risk Partners to Searchlight
Capital Partners in 2020, an element of the sale consideration was
reinvested into the acquiring vehicle. The subsequent sale to Brown
& Brown resulted in a full exit from this investment and
generated a further return equivalent to 1.24x the original cost,
taking the total money multiple return to 3.38x over the life of
the investment.
In March, the holding in energy services specialist RMEC was
realised through the sale to Aberdeen based trade acquirer
Centurion Group. Over the holding period, despite the various
challenges within its operating environment, RMEC delivered a
consistently strong performance. The business traded profitably
throughout the pandemic and, during this time, continued to secure
blue-chip clients and agree long term master service agreements
with key North Sea operators and service companies. The exit
achieved a total return of 2.3x cost over the life of the
investment, inclusive of all income payments.
During the period, a total of GBP1.3 million was realised
through AIM disposals. This largely reflects the partial
realisation of the holding in Ideagen, which was acquired by Hg
Pooled Management, a leading software and service investor. The
holding was exited in full shortly after the period end, generating
a total return of 9.0x cost over the life of the investment.
The table below gives details of all realisations achieved
during the reporting period:
Cost of Value at Gain/(loss)
shares 31 over 31
Complete/ disposed December Sales Realised December
Year first partial of 2021 proceeds gain/(loss) 2021 value
Sales invested exit GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ------------- ----------- ---------- ----------- ---------- ------------ -----------
Unlisted
Optoscribe Limited 2018 Complete 726 1,370 1,402 676 32
RMEC Group Limited(1) 2014 Complete 782 1,241 1,144 362 (97)
The GP Service (UK)
Limited(2) 2016 Complete 1,597 1,622 2,986 1,389 1,364
---------------------- ------------- ----------- ---------- ----------- ---------- ------------ -----------
Total unlisted 3,105 4,233 5,532 2,427 1,299
-------------------------------------------------- ---------- ----------- ---------- ------------ -----------
Quoted
Angle PLC 2006 Partial 10 19 26 16 7
Ideagen PLC 2015 Partial 125 990 1,302 1,177 312
---------------------- ------------- ----------- ---------- ----------- ---------- ------------ -----------
Total quoted 135 1,009 1,328 1,193 319
-------------------------------------------------- ---------- ----------- ---------- ------------ -----------
Private equity
investment
trusts(3)
abrdn Private Equity
Opportunities Trust
PLC
(formerly Standard
Life
Private Equity Trust
PLC) 2016 Partial 49 83 61 12 (22)
Apax Global Alpha
Limited 2016 Partial 90 117 102 12 (15)
CT Private Equity
Trust
PLC (formerly BMO
Private
Equity Trust PLC) 2016 Partial 49 66 60 11 (6)
HarbourVest Global
Private
Equity Limited 2018 Partial 66 134 110 44 (24)
HgCapital Trust PLC 2019 Partial 118 218 209 91 (9)
ICG Enterprise Trust
PLC 2018 Partial 52 76 60 8 (16)
Pantheon International
PLC 2018 Partial 81 130 110 29 (20)
Princess Private
Equity
Holding Limited 2018 Partial 55 76 60 5 (16)
---------------------- ------------- ----------- ---------- ----------- ---------- ------------ -----------
Total private equity
investment trusts 560 900 772 212 (128)
-------------------------------------------------- ---------- ----------- ---------- ------------ -----------
Real estate investment
trusts(3)
Regional REIT Limited 2016 Partial 59 50 50 (9) -
Schroder REIT Limited 2016 Partial 206 183 187 (19) 4
---------------------- ------------ ------------ ---------- ----------- ---------- ------------ -----------
Total real estate investment
trusts 265 233 237 (28) 4
-------------------------------------------------- ---------- ----------- ---------- ------------ -----------
Infrastructure
investment
trusts(3)
3i Infrastructure PLC 2017 Complete 118 143 143 25 -
HICL Infrastructure
PLC 2017 Complete 105 108 107 2 (1)
International Public
Partnerships Limited 2017 Complete 102 104 103 1 (1)
The Renewables
Infrastructure
Group Limited 2017 Complete 122 123 122 - (1)
---------------------- ------------ ------------ ---------- ----------- ---------- ------------ -----------
Total infrastructure
investment trusts 447 478 475 28 (3)
-------------------------------------------------- ---------- ----------- ---------- ------------ -----------
Total sales 4,512 6,853 8,344 3,832 1,491
-------------------------------------------------- ---------- ----------- ---------- ------------ -----------
(1) Proceeds exclude yield and redemption premiums received,
which are disclosed as revenue for financial reporting
purposes.
(2) The holding in The GP Service (UK) Limited was acquired by
Kanabo GP Limited, a subsidiary of Kanabo Group PLC, in a
transaction that was structured as a share for share exchange.
(3) Proceeds from the realisation of non-qualifying investment
trust holdings will be used to fund new VCT qualifying
investments.
During the period, one private company was struck off the
Register of Companies, resulting in a realised loss of GBP300,000
(cost GBP300,000). This had no effect on the NAV of the Company as
a full provision had been made against the value of the holding in
a previous period.
Material Developments Since the Period End
Since 30 June 2022, two new private company holdings have been
added to the portfolio:
-- Novatus Advisory is a regulatory advisory business that helps
financial organisations prevent or remedy regulatory or compliance
issues through the provision of advisory services (both project
based and long terms assignments) and also provides bespoke
regulatory software. Novatus has a strong client base that includes
blue-chip names such as Artemis and Enstar. It recently invested in
software development to create a transaction reporting tool to help
clients to meet legal reporting requirements and to reconcile
trades, which is viewed as a key growth market. The VCT funding is
being used to progress product development, particularly within the
software side of the business.
-- XR Games is a developer of virtual reality (VR) and augmented
reality (AR) games, which creates mobile and console-based games
under licence and as a work-for-hire studio. Through a licence
agreement with Sony Pictures, XR has developed the VR game Angry
Birds Movie 2 VR: Under Pressure, which was released for
PlayStation and launched alongside the movie Angry Birds 2. More
recently, XR produced and developed Zombieland VR, a game based on
the film franchise of the same name. XR has become a Microsoft
partner, through its relationship with Sony, and is currently
working on a number of projects and game prototypes. The business
has built a strong market reputation and is well positioned to
achieve growth in this expanding sector. The VCT funding is being
used to support the pipeline of game development, enhance the
marketing function and make a number of strategic new hires.
During the period under review, an offer to acquire data
analytics specialist Cardinality was received from a Finnish trade
acquirer and the exit generated a total return of 1.5x cost over an
18 month holding period.
Principal and Emerging Risks and Uncertainties
The principal and emerging risks and uncertainties facing the
Company were set out in full in the Strategic Report contained
within the 2021 Annual Report, and are the risks associated with
investment in small and medium sized unlisted and AIM/AQSE quoted
companies which, by their nature, carry a higher level of risk and
are subject to lower liquidity than investments in larger 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 Risk Committee 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.
In March 2020, the COVID-19 pandemic developed from being an
emerging risk to a principal risk that had implications for the
Company, the Manager, investee companies and both the UK and global
economies. The Board and the Manager have sought to identify all of
the individual risks associated with the pandemic that could impact
on the Company and the steps that are required to mitigate them.
These have been recorded in separate risk registers that are
reviewed on a regular basis as the situation continues to
evolve.
During the period, the invasion of Ukraine by Russia was added
to the Risk Register as an emerging risk, as the Directors were not
only aware of the heightened cyber security risk but were mindful
of the impact that a change in the underlying economic conditions
could have on the valuation of investment companies, with
fluctuating interest rates, fuel and energy costs, and the
availability of bank finance, all likely to be impacted during
times of geopolitical uncertainty and volatile markets.
Share Buy-backs
Shareholders will be aware that a primary objective for the
Board is to ensure that the Company retains sufficient liquidity
for making investments in line with its stated policy, and for the
continued payment of dividends. However, the Directors also
acknowledge the need to maintain an orderly market in the Company's
shares and have, therefore, delegated authority to the Manager to
buy back shares in the market, for cancellation or to be held in
treasury, subject always to such transactions being in the best
interests of Shareholders.
It is intended that the Company should seek to maintain a share
price discount that is approximately 5% below the latest published
NAV per share, subject to market conditions, availability liquidity
and the maintenance of the Company's VCT qualifying status. During
the period under review, 1,256,151 shares were bought back at a
total cost of GBP865,000.
VCT Regulatory Update
During the period under review, there have been no further
amendments to the rules governing VCTs. The Spring Budget was
delivered on 23 March 2022 and did not propose any changes to VCT
legislation.
The Directors and the Manager continue to apply the
International Private Equity and Venture Capital Valuation (IPEV)
Guidelines as the central methodology for all private company
valuations. The IPEV Guidelines are the prevailing framework for
fair value information in the private equity and venture capital
industry. In light of the current geopolitical and macroeconomic
uncertainty resulting from the conflict in Ukraine, on 31 March
2022 IPEV reiterated the Special Guidance provided in March 2020
with respect to assessing the fair value of private company
holdings. The Directors and the Manager continue to follow industry
best practice and adhere to the IPEV Special Guidelines in all
private company valuations.
Environmental, Social and Governance (ESG)
As part of a move towards more sustainable investing, the
Manager has enhanced its investment appraisal process, with ESG now
embedded as a core component within the selection criteria.
Additionally, a robust framework has been developed to ensure that
ESG considerations are monitored and managed carefully throughout
the period of investment.
As previously noted, your Company recently completed two new
investments in companies that have strong ESG credentials and are
achieving growth in expanding markets. It is also worthwhile noting
that your Company's exposure to the energy services sector has been
reducing over recent years. Following the sale of RMEC, the
exposure is now less than 3.8% of the portfolio by value, with the
remaining investee companies actively diversifying away from
traditional oil & gas markets and moving into renewable energy
or other adjacent markets to realign their future growth
strategy.
Constitution of the Board
Following the sad news of the passing of Peter Linthwaite, the
Board confirmed on 14 July 2022 that Fraser Gray, who had been
serving as Interim Chairman, had been appointed to the role on a
permanent basis with immediate effect.
Also on 14 July 2022, the Board confirmed the appointment of
Brian Colquhoun as Independent Non-executive Director with effect
from 1 August 2022. Brian is a Fellow of the Chartered Bankers
Institute and spent more than three decades at Clydesdale and
Yorkshire Bank in the UK, working extensively with smaller
companies and management teams in supporting their growth
ambitions. He held a number of senior roles and has considerable
experience of corporate lending, credit and relationship management
in the SME market. His most recent role was as UK Head of
Commercial Banking, where he held national responsibility for
customer growth and satisfaction. Brian is also a non-executive
director of Coventry and Warwickshire Growth Hub Limited.
Brian will chair the Company's Risk Committee and will also
serve on the Audit, Management Engagement and Nomination
Committees. He will stand for election by Shareholders at the 2023
Annual General Meeting.
Outlook
Your Company has continued to make positive progress during the
first half of the financial year and, following the success of the
recent fund raising, currently has sufficient liquidity to enable
it to continue to progress its investment strategy. The primary
near term challenge is the impact of inflationary pressures and the
associated risk of constrained economic growth. Against this
background, the Manager will maintain a focused approach in
targeting emerging growth companies operating in sectors and
markets that are likely to be more resilient and less dependent on
discretionary consumer spending.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
2 September 2022
Summary Of Investment Changes
For the Six Months Ended 30 June 2022
Valuation Net investment/ Appreciation/ Valuation
31 December 2021 (disinvestment) (depreciation) 30 June 2022
GBP'000 % GBP'000 GBP'000 GBP'000 %
---------------------- ---------- ------- ---------------- --------------- -------- -----
Unlisted investments
Equities 40,493 49.2 (873) 331 39,951 44.6
Loan stock 15,143 18.4 (618) (26) 14,499 16.2
---------------------- ---------- ------- ---------------- --------------- -------- -----
55,636 67.6 (1,491) 305 54,450 60.8
AIM/AQSE investments*
Equities 10,481 12.7 (1,328) (3,215) 5,938 6.6
Listed investments
Investment trusts 5,385 6.5 (1,484) (809) 3,092 3.4
====================== ========== ======= ================ =============== ======== =====
Total investments 71,502 86.8 (4,303) (3,719) 63,480 70.8
Other net assets 10,810 13.2 15,343 - 26,153 29.2
====================== ========== ======= ================ =============== ======== =====
Net assets 82,312 100.0 11,040 (3,719) 89,633 100.0
====================== ========== ======= ================ =============== ======== =====
*Shares traded on the Alternative Investment Market (AIM) and
the Aquis Stock Exchange (AQSE).
Investment Portfolio Summary
As at 30 June 2022
% of % of % of equity
Valuation Cost total equity held by other
Investment GBP'000 GBP'000 assets held clients(1)
------------------------------------ --------- -------- ------- ------- --------------
Unlisted
BioAscent Discovery Limited 3,906 1,532 4.5 26.1 13.9
Horizon Ceremonies Limited (trading
as Horizon Cremation) 3,694 2,463 4.2 12.9 39.7
Bright Network (UK) Limited 2,190 1,383 2.5 11.9 26.0
Relative Insight Limited 2,150 1,000 2.4 5.3 24.0
e.fundamentals (Group) Limited 2,121 1,042 2.4 3.8 7.1
Rockar 2016 Limited (trading as
Rockar) 2,089 1,674 2.3 6.9 14.7
WaterBear Education Limited 2,075 987 2.3 20.1 19.1
Delio Limited 2,033 994 2.3 5.2 9.8
Ensco 969 Limited (trading as
DPP) 1,889 1,823 2.1 7.4 27.1
Whiterock Group Limited 1,753 1,014 2.0 13.0 17.0
Vodat Communications Group (VCG)
Holding Limited
(formerly Vodat Communications
Group Limited) 1,717 1,240 1.9 7.1 19.8
QikServe Limited 1,674 1,674 1.9 7.6 8.2
CB Technology Group Limited 1,584 1,097 1.8 19.6 59.3
Contego Solutions Limited (trading
as NorthRow) 1,581 1,581 1.8 12.1 20.2
Martel Instruments Holdings Limited 1,509 701 1.7 14.7 29.6
MirrorWeb Limited 1,376 800 1.5 8.3 32.8
Glacier Energy Services Holdings
Limited 1,219 1,540 1.4 6.0 21.7
ebb3 Limited 1,186 1,307 1.3 23.3 35.3
Nano Interactive Group Limited 1,126 625 1.3 3.7 11.2
Flow UK Holdings Limited 1,047 1,047 1.2 12.7 22.3
Filtered Technologies Limited 1,034 950 1.2 9.7 15.8
Hublsoft Group Limited 1,000 800 1.1 12.5 18.7
RevLifter Limited 1,000 1,000 1.1 11.9 6.0
HCS Control Systems Group Limited 952 1,201 1.1 10.7 25.8
Cat Tech International Limited 881 1,115 1.0 8.4 21.6
Maven Co-invest Endeavour Limited
Partnership(2) 773 4 0.9 12.6 87.4
Precursive Limited 750 750 0.8 6.5 15.1
TC Communications Holdings Limited 734 958 0.8 10.7 19.3
Cardinality Limited 668 448 0.7 4.5 20.5
Growth Capital Ventures Limited 650 639 0.7 11.5 36.0
Maven Capital (Marlow) Limited 650 650 0.7 - 100.0
Kanabo GP Limited(3) 649 2,986 0.7 25.1 42.1
Push Technology Limited 625 625 0.7 2.8 8.5
Horizon Technologies Consultants
Limited 506 448 0.6 3.1 14.1
Liftango Group Limited 497 497 0.6 3.3 11.6
HiveHR Limited 476 317 0.5 5.2 33.7
Project Falcon Topco Limited
(trading as Quorum Cyber)(4) 419 419 0.5 1.2 1.7
CODILINK UK Limited (trading as
Coniq) 400 400 0.4 1.1 3.8
Draper & Dash Limited (trading
as RwHealth) 398 398 0.4 2.0 11.6
FodaBox Limited 398 398 0.4 2.9 8.0
The Algorithm People Limited 300 300 0.3 6.3 10.6
Enpal Limited (trading as Guru
Systems) 299 299 0.3 3.2 18.4
Snappy Shopper Limited 298 298 0.3 0.4 1.4
R&M Engineering Group Limited 268 1,087 0.3 13.4 57.2
ISN Solutions Group Limited 216 467 0.2 7.8 47.2
mypura.com Group Limited (trading
as Pura) 216 216 0.2 1.0 17.8
Rico Developments Limited (trading
as Adimo) 200 200 0.2 1.5 8.2
GradTouch Limited 200 200 0.2 2.3 37.7
Atterley.com Holdings Limited 199 199 0.2 2.5 15.2
CYSIAM Limited 199 199 0.2 3.5 16.5
Zinc Digital Business Solutions
Limited 199 199 0.2 3.0 18.8
Shortbite Limited (trading as
Fixtuur) 153 397 0.2 1.1 30.5
Honcho Markets Limited 129 129 0.1 2.4 22.3
Reed Thermoformed Packaging Limited
(trading as iPac) 100 100 0.1 0.5 11.8
Intilery.com Limited 75 75 0.1 0.6 58.6
Other unlisted investments 20 2,294 -
------------------------------------ --------- -------- ------- ------- --------------
Total unlisted 54,450 47,186 60.8
------------------------------------ --------- -------- ------- ------- --------------
Quoted
GENinCode PLC 682 600 0.8 3.9 7.0
Intelligent Ultrasound Group PLC 533 400 0.6 1.4 0.4
Verici Dx PLC 482 438 0.5 1.5 -
MaxCyte Inc 451 207 0.5 0.1 0.1
Ideagen PLC 293 29 0.3 0.2 0.6
SkinBioTherapeutics PLC 259 208 0.3 0.8 -
Creo Medical Group PLC 251 497 0.3 0.2 -
Oxford Metrics PLC 245 80 0.3 0.2 -
Pelatro PLC 244 496 0.3 2.0 0.7
KRM22 PLC 238 220 0.3 1.6 -
Avacta Group PLC 212 33 0.2 0.1 0.1
C4X Discovery Holdings PLC 212 137 0.2 0.4 0.6
TPXimpact Holdings PLC 207 107 0.2 0.2 -
(formerly The Panoply Holdings
PLC)
Diaceutics PLC 190 161 0.2 0.3 0.3
Destiny Pharma PLC 185 300 0.2 0.6 0.8
One Media IP Group PLC 178 186 0.2 1.7 -
Angle PLC 131 82 0.1 0.1 -
Crossword Cybersecurity PLC 110 122 0.1 0.5 2.1
ReNeuron Group PLC 109 277 0.1 0.7 1.4
Polarean Imaging PLC 95 129 0.1 0.1 0.6
AFC Energy PLC 73 57 0.1 - -
Feedback PLC 73 121 0.1 0.5 1.3
Access Intelligence PLC 67 35 0.1 0.1 0.4
Spectral MD Holdings PLC 57 99 0.1 0.1 0.1
Faron Pharmaceuticals PLC 55 70 0.1 0.1 0.1
Eden Research PLC 52 83 0.1 0.4 1.0
Oncimmune Holdings PLC 47 100 0.1 0.1 0.5
Hardide PLC 47 122 0.1 0.4 0.2
Diurnal Group PLC 34 99 - 0.2 0.3
RUA Life Sciences PLC 30 100 - 0.4 1.3
Vianet Group PLC 29 49 - 0.1 1.4
Trackwise Designs PLC 24 42 - 0.2 0.3
Seeen PLC 18 75 - 0.3 1.4
Osirium Technologies PLC 16 100 - 1.0 6.0
Other quoted investments 9 451 -
------------------------------------ --------- -------- ------- ------- --------------
Total quoted 5,938 6,312 6.6
------------------------------------ --------- -------- ------- ------- --------------
Private equity investment trusts
HgCapital Trust PLC 484 309 0.5 0.1 0.1
Princess Private Equity Holding
Limited 405 336 0.5 0.1 0.1
CT Private Equity Trust PLC 370 293 0.4 0.2 0.3
(formerly BMO Private Equity Trust
PLC)
Apax Global Alpha Limited 358 294 0.4 0.1 0.1
HarbourVest Global Private Equity
Limited 272 184 0.3 - 0.1
ICG Enterprise Trust PLC 249 199 0.3 - 0.1
abrdn Private Equity Opportunities
Trust PLC (formerly Standard Life
Private Equity Trust PLC) 210 141 0.2 - 0.1
Pantheon International PLC 116 98 0.1 - 0.1
------------------------------------ --------- -------- ------- ------- --------------
Total private equity investment
trusts 2,464 1,854 2.7
------------------------------------ --------- -------- ------- ------- --------------
Real estate investment trusts
Target Healthcare REIT PLC 189 199 0.2 0.1 -
Regional REIT Limited 148 205 0.2 0.1 0.1
Custodian REIT PLC 120 140 0.1 - -
------------------------------------ --------- -------- ------- ------- --------------
Total real estate investment
trusts 457 544 0.5
------------------------------------ --------- -------- ------- ------- --------------
Fixed income investment trusts
TwentyFour Income Fund Limited 162 196 0.2 0.1 -
Alcentra European Floating Rate
Income Fund Limited 9 11 - 0.1 -
------------------------------------ --------- -------- ------- ------- --------------
Total fixed income investment
trusts 171 207 0.2
------------------------------------ --------- -------- ------- ------- --------------
Total investments 63,480 56,103 70.8
------------------------------------ --------- -------- ------- ------- --------------
(1) Other clients of Maven Capital Partners UK LLP.
(2) Managed by Penta Capital LLP, of which Steven Scott, a
Director of the Company, is a partner.
(3) The holding in this investment resulted from the sale of The
GP Service (UK) Limited to Kanabo GP Limited in a share for share
exchange. In line with IPEV Guidelines, the valuation of the
holding has been adjusted to reflect the market value as at 30 June
2022.
(4) Retained minority interest from the sale of Quorum Cyber
Security Limited.
Shaded line indicates that the investment was completed pre
2015.
Income Statement
For the six month ended 30 June 2022
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(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 - (3,719) (3,719) - 7,517 7,517 - 12,143 12,143
Income from investments 713 - 713 1,286 - 1,286 2,004 - 2,004
Other income 5 - 5 1 - 1 1 - 1
Investment management
fees (211) (842) (1,053) (500) (2,001) (2,501) (865) (3,460) (4,325)
Other expenses (218) - (218) (264) - (264) (431) - (431)
------------------------ ---------- -------- -------- --------- --------- -------- -------- -------- --------
Net return on ordinary
activities before
taxation 289 (4,561) (4,272) 523 5,516 6,039 709 8,683 9,392
Tax on ordinary
activities (18) 18 - (43) 43 - (93) 93 -
------------------------ ---------- -------- -------- --------- --------- -------- -------- -------- --------
Return attributable
to Equity Shareholders 271 (4,543) (4,272) 480 5,559 6,039 616 8,776 9,392
------------------------ ---------- -------- -------- --------- --------- -------- -------- -------- --------
Earnings per share
(pence) 0.22 (3.73) (3.51) 0.43 4.98 5.41 0.56 7.91 8.47
------------------------ ---------- -------- -------- --------- --------- -------- -------- -------- --------
All gains and losses are recognised in the Income Statement.
All items in the above statement are derived from continuing
operations. The Company has only one class of business and one
reportable segment, the results of which are set out in the Income
Statement and Balance Sheet. The Company derives its income from
investments made in shares, securities and bank deposits.
There are no potentially dilutive capital instruments in issue
and, therefore, no diluted earnings per share figures are relevant.
The basic and diluted earnings per share are, therefore,
identical.
The accompanying Notes are an integral part of the Financial
Statements.
Statement of Changes in Equity
For the Six Months Ended 30 June 2022
Six months ended 30 June 2022 (unaudited)
Non-distributable reserves Distributable reserves
----------------
Share Capital Capital Capital Special
Share premium redemption reserve reserve distributable Revenue
capital account reserve unrealised realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- --------- --------- ------------ ------------- ---------- --------------- --------- -----------
At 31 December
2021 10,992 23,244 502 14,583 2,517 29,367 1,107 82,312
Net return - - - (7,206) 3,487 (824) 271 (4,272)
Dividends paid - - - - - (3,687) (35) (3,722)
Repurchase and
cancellation
of
shares (126) - 126 - - (865) - (865)
Net proceeds of
share issue 2,157 13,692 - - - - - 15,849
Net proceeds of
DIS issue 49 282 - - - - - 331
---------------- --------- --------- ------------ ------------- ---------- --------------- --------- -----------
At 30 June 2022 13,072 37,218 628 7,377 6,004 23,991 1,343 89,633
---------------- --------- --------- ------------ ------------- ---------- --------------- --------- -----------
Six months ended 30 June 2021 (unaudited)
Non-distributable reserves Distributable reserves
----------------
Share Capital Capital Capital Special
Share premium redemption reserve Reserve distributable Revenue
capital account reserve unrealised realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- --------- ----------- --------------- ------------- ----------- --------------- ---------- -----------
At 31 December
2020 11,200 22,905 236 3,732 1,225 38,533 943 78,774
Net return - - - 8,930 (1,413) (1,958) 480 6,039
Dividends paid - - - - - (2,079) (151) (2,230)
Repurchase and
cancellation
of
shares (129) - 129 - - (857) - (857)
Net proceeds of
DIS issue 29 179 - - - - - 208
---------------- --------- ----------- --------------- ------------- ----------- --------------- ---------- -----------
At 30 June 2021 11,100 23,084 365 12,662 (188) 33,639 1,272 81,934
---------------- --------- ----------- --------------- ------------- ----------- --------------- ---------- -----------
Year ended 31 December 2021 (audited)
Non-distributable reserves Distributable reserves
-------------- ---------
Share Capital Capital Capital Special
Share premium redemption reserve reserve distributable Revenue
capital account reserve unrealised realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- --------- ---------- ------------ ------------- ----------- --------------- --------- ---------
At 31
December
2020 11,200 22,905 236 3,732 1,225 38,533 943 78,774
Net return - - - 10,851 1,292 (3,367) 616 9,392
Dividends
paid - - - - - (3,984) (452) (4,436)
Repurchase
and
cancellation
of
shares (266) - 266 - - (1,815) - (1,815)
Net proceeds
of
DIS issue 58 339 - - - - - 397
-------------- --------- ---------- ------------ ------------- ----------- --------------- --------- ---------
At 31
December
2021 10,992 23,244 502 14,583 2,517 29,367 1,107 82,312
-------------- --------- ---------- ------------ ------------- ----------- --------------- --------- ---------
The accompanying Notes are an integral part of the Financial
Statements.
Balance Sheet
As at 30 June 2022
30 June 30 June 31 December
2022 2021 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------- --------------- --------------- -----------------
Fixed assets
Investments at fair value through
profit or loss 63,480 71,290 71,502
Current assets
Debtors 1,322 1,075 1,195
Cash 24,968 11,266 10,542
------------------------------------- --------------- --------------- -----------------
26,290 12,341 11,737
Creditors
Amounts falling due within one
year (137) (1,697) (927)
------------------------------------- --------------- --------------- -----------------
Net current assets 26,153 10,644 10,810
------------------------------------- --------------- --------------- -----------------
Net assets 89,633 81,934 82,312
------------------------------------- --------------- --------------- -----------------
Capital and reserves
Called up share capital 13,072 11,100 10,992
Share premium account 37,218 23,084 23,244
Capital redemption reserve 628 365 502
Capital reserve - unrealised 7,377 12,662 14,583
Capital reserve - realised 6,004 (188) 2,517
Special distributable reserve 23,991 33,639 29,367
Revenue reserve 1,343 1,272 1,107
------------------------------------- --------------- --------------- -----------------
Net assets attributable to Ordinary
Shareholders 89,633 81,934 82,312
------------------------------------- --------------- --------------- -----------------
Net asset value per Ordinary Share
(pence) 68.56 73.81 74.88
------------------------------------- --------------- --------------- -----------------
The Financial Statements of Maven Income and Growth VCT 4 PLC,
registered number SC272568, were approved by the Board and were
signed on its behalf by:
Fraser Gray
Director
2 September 2022
The accompanying Notes are an integral part of the Financial
Statements.
Cash Flow Statement
For the Six Months Ended 30 June 2022
Six months Six months Year ended
ended ended
30 June 2022 30 June 2021 31 December
2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------- --------------- --------------- --------------
Net cash flows from operating
activities (1,424) (932) (3,100)
Cash flows from investing
activities
Purchase of investments (1,010) (2,517) (5,030)
Sale of investments 5,267 2,742 9,674
------------------------------- --------------- --------------- --------------
Net cash flows from investing
activities 4,257 225 4,644
------------------------------- --------------- --------------- --------------
Cash flows from financing
activities
Equity dividends paid (3,722) (2,230) (4,436)
Net Proceeds of DIS issue 331 208 397
Issue of Ordinary Shares 15,849 - -
Repurchase of Ordinary Shares (865) (857) (1,815)
------------------------------- --------------- --------------- --------------
Net cash flows from financing
activities 11,593 (2,879) (5,854)
------------------------------- --------------- --------------- --------------
Net increase/(decrease)
in cash 14,426 (3,586) (4,310)
------------------------------- --------------- --------------- --------------
Cash at beginning of period 10,542 14,852 14,852
Cash at end of period 24,968 11,266 10,542
The accompanying Notes are an integral part of the Financial
Statements.
Notes to the Financial Statements
For the Six Months Ended 30 June 2022
1. Accounting policies
The financial information for the six months ended 30 June 2022
and the six months ended 30 June 2021 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 31 December 2021, which
have been filed at Companies House and contained an Auditor's
Report that was not qualified and did not contain a statement under
S498(2) or S498(3) of the Companies Act 2006.
2. Reserves
Share premium account
The share premium account represents the premium above nominal
value received by the Company on issuing shares net of issue costs.
This reserve is non-distributable.
Capital redemption reserve
The nominal value of shares repurchased and cancelled is
represented in the capital redemption reserve. This reserve is
non-distributable.
Capital reserve - unrealised
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. This reserve is
non-distributable.
Capital reserve - realised
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. This reserve is
distributable.
Special distributable reserve
The total cost to the Company of the repurchase and cancellation
of shares is represented in the special distributable reserve
account. The special distributable reserve also represents capital
dividends, capital investment management fees and the tax effect of
capital items. This reserve is distributable.
Revenue reserve
The revenue reserve represents accumulated profits retained by
the Company that have not been distributed to Shareholders. This
reserve is distributable.
3. Return per Ordinary Share
Six months ended 30 June
2022
-------------------------------------------- ------------------------
The returns per share have been based on the
following figures:
Weighted average number of Ordinary Shares 121,786,068
Revenue return GBP271,000
Capital return (GBP4,543,000)
-------------------------------------------- ------------------------
Total return (GBP4,272,000)
-------------------------------------------- ------------------------
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
-- the Financial Statements for the six months ended 30 June
2022 have been prepared in accordance with FRS 102, the Financial
Reporting Standard applicable in the UK and 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 31 December 2022; 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
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 registered office of the
Company at Kintyre House, 205 West George Street, Glasgow G2 2LW;
at the office of the Manager, Maven Capital Partners UK LLP, 5th
Floor, 1-2 Royal Exchange Buildings, London EC3V 3LF; and, in due
course, on the Company's website at mavencp.com/migvct4.
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
2 September 2022
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END
IR EALNAEAPAEFA
(END) Dow Jones Newswires
September 02, 2022 10:31 ET (14:31 GMT)
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