TIDMMAV4 TIDMTTM
RNS Number : 8428K
Maven Income & Growth VCT 4 PLC
30 August 2023
Maven Income and Growth VCT 4 PLC
Interim Results for the Six Months Ended 30 June 2023
(Unaudited)
The Directors announce the unaudited interim results for the six
months ended 30 June 2023.
Highlights
-- NAV total return at 30 June 2023 of 154.27p per share
-- NAV at 30 June 2023 of 64.92p per share, after payment of the
2022 final dividend of 1.75p per share in May 2023
-- Interim dividend of 1.75p per share declared for payment on 13 October 2023
-- Offer for Subscription closed, raising GBP6.83 million, with
a further fund raising to be launched in Autumn 2023
-- Two new private companies added to the portfolio
Overview
During the first half of the financial year, the macroeconomic
environment remained challenging, with growth prospects suppressed
by ongoing inflationary pressures and rising interest rates.
Against this backdrop, it is encouraging to report on the further
progress that has been achieved by your Company. Whilst NAV total
return has reduced modestly compared to the position at the
previous year end, most companies in the unlisted portfolio have
continued to deliver revenue growth and achieve their commercial
milestones. Notably, the performance across the early stage
portfolio has been generally resilient, which helps to validate the
investment strategy that your Company has been following for a
number of years. The Board and the Manager recognise the importance
of regular tax free Shareholder distributions and an interim
dividend of 1.75p per share has been declared for payment in
October 2023.
Whilst the outlook for the UK economy has improved slightly,
during the reporting period inflation remained stubbornly high and
interest rates continued to rise, which created challenges for many
businesses and consumers. Notwithstanding these market conditions,
your Company has delivered a robust performance. This reflects the
strength of the underlying portfolio that has been carefully
constructed over recent years and provides exposure to a wide range
of high quality, growth companies, many of which operate in
defensive or emerging sectors where demand has continued to grow.
It is worthwhile noting that, across the portfolio, the level of
external debt remains low, which helps to insulate against further
upward movements in interest rates and, furthermore, there is
limited direct exposure to consumer facing sectors. The Board and
the Manager believe that the underlying growth prospects for the
majority of companies within the portfolio remain positive, and
that your Company is well positioned to make further progress in
line with its long term investment objective.
Your Company continues to follow a strategy focused on
constructing a large and sectorally diversified portfolio of
dynamic and entrepreneurial private and AIM quoted companies that
operate in attractive markets such as Software-as-a-Service (SaaS),
cyber security, data analytics and healthcare, where growth is less
dependent on the conditions in the wider economy. Most companies
within the unlisted portfolio have continued to make positive
progress, with some of the more mature holdings now trading ahead
of pre-pandemic levels. In the earlier stage portfolio, most
companies are meeting their commercial milestones, increasing
annual recurring revenue (ARR) and achieving further scale. Where
there has been sustained positive performance, valuations have been
uplifted, although the impact has been moderated by the
well-publicised reduction in valuation multiples across public and
private markets, particularly within the technology sector.
In May 2023, your Company closed its most recent Offer for
Subscription, raising a total of GBP6.83 million across the 2022/23
and 2023/24 tax years. This new capital provides additional
liquidity to support the further expansion and development of the
portfolio through the completion of new investments and the
provision of follow-on funding to support those companies that are
achieving their commercial targets and require additional capital
to fully scale before progressing to an exit. During the period,
two new private companies were added to the portfolio, both of
which provide disruptive software solutions and operate in growing
markets. Maven remains focused on identifying companies that can
demonstrate meaningful commercial traction and the potential for
further strong revenue growth. This is often measured in terms of
contracted ARR, which provides a degree of visibility on a
company's growth trajectory. Maven's regional network of investment
executives continues to review a healthy pipeline of opportunities
and, at the time of writing, there are a number of potential
investments, across a wide range of sectors, which are at various
stages of due diligence and legal contract. Based on this pipeline,
it is anticipated that there will be further new investment during
the second half of this financial year.
Within the AIM portfolio, performance has continued to be muted.
Although some listed markets have experienced a recovery, investor
sentiment towards AIM continues to be subdued and there has been
limited IPO and new share issuance activity to help stimulate
demand. As a result of these market conditions, the value of your
Company's AIM portfolio has declined. For the majority of holdings,
the share price reductions reflect the general market volatility
that has persisted throughout the period and the reduced appetite
for investment in smaller, earlier stage growth businesses. The
Board and the Manager nevertheless believe that, over the long
term, selective exposure to AIM offers the potential to broaden the
portfolio, as well as providing the ability to generate early
liquidity if companies perform well. The Manager will, however,
remain cautious towards new AIM investments until there is clear
evidence of a recovery in this market, and an improvement in the
quality and quantity of companies seeking VCT funding.
The Manager maintains an active approach to portfolio
management, with a view to supporting investee companies throughout
the period of ownership. The Maven appointed board representative
works closely with each unlisted portfolio company that is
considering, or is engaged in, a sale process, helping to identify
the most suitable corporate finance adviser and potential acquirers
that may be willing to pay a premium or strategic price for the
business. Whilst there have been no material realisations during
the period, there remains a good level of external interest in a
number of portfolio companies and, based on historical trends, the
Manager is optimistic that M&A activity will resume when
economic conditions stabilise.
Liquidity Management
As Shareholders will be aware from recent Annual and Interim
Reports, your Company has a proactive approach to liquidity
management, with the objective of generating income from cash
resources held prior to investment in VCT qualifying companies.
This strategy also helps to satisfy the criteria of the Nature of
Income condition, which is a mandatory requirement of the VCT
legislation where not less than 70% of a VCT's income must be
derived from shares or securities. To meet this requirement, the
Board had previously approved the construction of a focused
portfolio of permitted, non-qualifying holdings in carefully
selected investment trusts with strong fundamentals and attractive
income characteristics. The recent upward trend in interest rates
has, however, required the Board and the Manager to revise this
approach. Following a whole of market review, the Manager has
selected a number of leading money market funds and a portfolio of
investment trusts that will allow your Company to maximise the
income receivable on residual cash, whilst also ensuring compliance
with the Nature of Income condition. During the reporting period,
several new investments were completed in support of the revised
liquidity management strategy, details of which can be found in the
Investments table in the Interim Report.
Interim Dividend
In respect of the year ending 31 December 2023, an interim
dividend of 1.75p per share will be paid on 13 October 2023 to
Shareholders who are on the register at 15 September 2023. Since
the Company's launch, and after receipt of this interim dividend, a
total of 91.10p per share will have been paid in tax free
Shareholder distributions. It should be noted that payment of a
dividend reduces the NAV of the Company by the total cost of the
distribution.
Dividend Policy
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.
As the portfolio continues to expand and a greater proportion of
holdings are in younger companies with growth potential, 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 in respect of the tax year in which they are allotted,
subject to an individual Shareholder's particular
circumstances.
In order for the DIS to apply in respect of the interim dividend
that is due to be paid on 13 October 2023, a mandate form must be
received by the Registrar (The City Partnership) before 29
September 2023, this being the relevant dividend election date, and
that election will apply in respect of all future dividends until
the Registrar is instructed to the contrary. The mandate form,
terms & conditions and full details of the scheme (including a
summary of tax considerations) are available from the Company's
webpage 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/login.
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.
Offer for Subscription
On 7 October 2022, your Company, alongside Maven Income and
Growth VCT PLC, Maven Income and Growth VCT 3 PLC and Maven Income
and Growth VCT 5 PLC, launched Offers for Subscription for up to
GBP30 million in aggregate, with over-allotment facilities for up
to a further GBP10 million in aggregate. On 26 May 2023, the Offers
closed to new applications, with your Company raising a total of
GBP6.83 million across the 2022/23 and 2023/24 tax years.
With respect to the 2022/23 tax year, an allotment of 5,035,459
new Ordinary Shares completed on 8 February 2023, with a further
allotment of 495,482 new Ordinary Shares on 3 March 2023 and a
final allotment of 2,639,275 new Ordinary Shares on 5 April 2023.
An allotment of 1,607,513 new Ordinary Shares for the 2023/24 tax
year took place on 2 June 2023.
The Directors are confident that Maven's regional office network
will continue to source and complete attractive investments in VCT
qualifying companies across a range of sectors. The additional
liquidity provided by the fundraising will facilitate further
expansion and development of the portfolio in line with the
investment strategy. Furthermore, the funds raised will 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.
Further to the announcement of 6 July 2023, the Directors have
elected to launch a new Offer in Autumn 2023, in tandem with Offers
by the three other Maven managed VCTs. Full details of the Offers
will be included in a Prospectus, which is expected to be published
in Autumn 2023.
Portfolio Developments
Integrated drug discovery services provider BioAscent Discovery
continues to make strong progress and has consistently achieved
double digit annual revenue growth in each of the four years since
your Company first invested. To maintain this momentum, BioAscent
is focused on expanding its range of services, and the near term
objective is to move into complementary areas such as custom
protein production, immune-oncology and further translational
assays. As part of the longer term growth strategy, and to ensure
that the business is able to meet the requirements of its global
customer base, BioAscent is in advanced discussions to achieve a
significant increase in laboratory and office space, whilst
remaining at a single location in Scotland. This additional
capacity will enable the company to increase its market presence by
making the drug discovery process more efficient, which should help
it to attract more clients, thereby achieving further scale.
Graduate recruitment specialist Bright Network continues to make
positive progress, with revenues now in excess of GBP11 million and
over 900,000 active members. Its digital solution, which enables
leading employers to identify, reach and recruit high quality
graduates and young professionals, has established a leading market
position. Working with over 300 partner firms such as Amazon,
Bloomberg, Google and Vodafone, it offers a comprehensive range of
services, including advice and support to assist its members in
securing their first job or internship, as well as providing access
to a range of in-person networking events. The business is
committed to serving a diverse range of applicants and it is
encouraging to note that 79% of its members are state educated, 55%
are female and 40% are from first generation university households.
During 2021, the business launched its Technology Academy, which
seeks to address the digital skills shortage by providing high
performing graduates with an intensive software development
training programme, and then deploying them in client
organisations.
Over the past year, the Technology Academy has gained good
commercial traction and already has consultants deployed with
Lloyds Bank and Marks & Spencer. It was also recently named the
Learning Solution of the Year at the 2022 Tiara Talent Tech Star
Awards, which recognise excellence in the recruitment and talent
acquisition industry. Shortly after the period end, follow-on
funding was provided to Bright Network to support its targeted
international expansion strategy.
Following a challenging period during the pandemic, when global
electronic component shortages and supply chain disruption impacted
order fulfilment capabilities, specialist manufacturer CB
Technology has experienced a good recovery, with sales now back to
pre-pandemic levels. Over recent years, the strategy to diversify
the customer base away from a reliance on the oil & gas sector
has been successful, with new clients secured in sectors such as
communication, instrumentation and medical technology, where demand
has remained resilient. To support future growth, the business
continues to make strategic investments to ensure that it has the
necessary infrastructure in place to best serve its clients. As
part of this initiative, it is implementing a new enterprise
resource planning (ERP) system, which will help to improve
operational efficiency. With a strong orderbook, the outlook for
the year ahead is positive.
Over recent years, cybercrime has become an increasing threat to
everyday business activities, with most companies and organisations
recognising the need to implement robust defences. Against this
backdrop, cyber security specialist CYSIAM has made good progress.
The business provides a 24/7 managed detection and response service
that aims to reduce system security breaches and stop ransomware
attacks. It is also a preferred partner to public sector
organisations in the UK. The CYSIAM team are experts in their
field, with backgrounds in military intelligence, law enforcement
and national security, which has enabled the business to launch a
consultancy arm that is making encouraging progress. Its
consultants work with clients to help them understand their
security position and to build appropriate cyber resilience. CYSIAM
has achieved good growth during the year to date, and the outlook
is encouraging.
Following changes to the senior leadership team and the
appointment of a new CEO, data transfer specialist DiffusionData
has delivered strong growth, with ARR nearly doubling since your
Company first invested in 2020. The business, which provides a
market leading platform to improve the speed, security and
efficiency of critical data transfer, is focused on the financial
services, gaming and internet of things (IoT) markets, where
accurate and timely data transfer is vital. DiffusionData has
established a blue chip client base that includes 188 Bet, Baker
Technology, Betfair, Caesars, Lloyds Bank and William Hill, with an
objective for the year ahead of growing its market position. To
support this strategy, a new engineering and testing hub is being
established in Newcastle, which will create a number of skilled
local jobs and serve as a quality and assurance centre to ensure
that DiffusionData can maintain its high standard of service
delivery as it scales. In 2022, the business achieved notable
industry recognition for its innovative data platform, winning four
awards and being shortlisted for a further 12.
During the period under review, sustainable packaging
manufacturer iPac has continued to deliver a good rate of sales
growth and has a strong pipeline of new opportunities. The business
manufactures and supplies thermoformed sustainable packaging
solutions to the food and pharmaceutical sectors, and recently
opened its sixth production line to accommodate increased demand.
In February 2023, it opened a new production and warehousing
facility in County Durham, which has created a number of local jobs
and has capacity to house up to eight new production lines that
will be phased in to meet client demand. iPac continues to develop
new products and its strategic objective is to move into adjacent
markets where there is demand for sustainable packaging solutions.
Given its strong and expanding product portfolio, coupled with
attractive ESG credentials, the business is well placed to continue
to deliver further growth in the year ahead.
Crematorium developer and operator Horizon Ceremonies continues
to make good operational and strategic progress. Since your Company
first invested in 2017, it has established a portfolio of three
crematoria, all of which are trading ahead of plan, and the
business is continuing to build a strong market position. Whilst
the planning process for a new crematorium can be lengthy, there is
a good pipeline of opportunities at varying stages of the approval
process. The medium term strategic objective remains to build a
portfolio of modern, technologically advanced crematoria that offer
a professional and compassionate service whilst also meeting the
highest environmental standards, and to sell the business to a
trade, private equity or infrastructure acquirer when all sites are
fully developed.
Liftango , a provider of an environmentally friendly transport
planning solution, has achieved significant sales growth since your
Company first invested in December 2021. The business enables
corporates, universities and public transport providers, to plan,
launch and scale sustainable transport solutions, including
climate-positive carpooling, fixed-route shuttles and on-demand
buses, and recently signed a five year contract with National
Express to digitalise its existing dial-a-ride service, adding
another client to an impressive blue chip list that includes
Amazon, IKEA, Qantas, Tesla and Volvo. During the period, Liftango
received additional funding from the Maven VCTs as part of a larger
funding round supported by existing investors. This further
investment will help the business to increase ARR by accelerating
its international growth plan and capitalising on emerging
opportunities in Europe and North America, whilst also broadening
its product offering to existing customers and regions.
Digital archiving specialist MirrorWeb continues to deliver
impressive revenue growth and has increased ARR by over 80%
compared to the prior year. During the period, the business
received additional funding from the Maven VCTs to support its
expansion into the US, which is regarded as a pivotal market for
future growth. The US growth strategy is being led by the CEO, who
relocated to Texas in early 2023, and will focus on increasing
sales by targeting large financial institutions and compliance
consultancies, where the need to archive digital communications is
either a regulatory or best practice requirement, and where
MirrorWeb's comprehensive product offering provides a compelling
solution. The business will also continue to build its presence in
the UK, where its blue chip customer base includes Aegon, Baillie
Gifford, the BBC, HM Treasury, Tesco Bank and The National
Archives.
During the period under review, Rockar, a developer of a
disruptive digital platform for buying new and used cars, has made
positive progress and further enhanced its position in the evolving
automotive eCommerce market. The business, which provides a white
label cloud-based solution to help manufacturers and retailers
develop digital alternatives to replace or complement existing
showroom models, has recently added Volvo to a client base that
includes BMW, Jaguar Land Rover, Porsche and Toyota. The strategy
for the year ahead remains focused on building relationships with
global automotive manufacturers to enable the business to scale
further.
Whilst the majority of companies in the unlisted portfolio have
continued to make positive progress, there are a small number that
have not achieved their commercial targets, largely as a result of
conditions within the wider economy. Martel Instruments, a
manufacturer and supplier of custom-built compact printers and data
loggers, traded very well during the pandemic, buoyed by high
demand from customers within the medical devices market. More
recently, however, trading has been affected by the well-publicised
global shortage of micro processing chips, which are used in
printers. The disruption to the supply chain has had an impact on
performance during the reporting period and, consequently, the
valuation has been reduced. Specialist IT integrator Flow has
experienced challenging trading conditions resulting from hardware
and component shortages, and a provision against cost has been
taken to reflect the lower than expected trading performance.
New Investments
During the reporting period, two new private companies were
added to the portfolio:
-- iAM Compliant is a software company that has established a
strong position in the eLearning market and operates through two
core divisions. The first, iAM Compliant, is a cloud-based estates
and compliance management platform, covering areas such as estates
management, health and safety, status reporting and premises
checks. The division has achieved a good rate of recurring revenue
and maintains a high client retention rate. The second division,
iAM Learning, has developed a digital learning library that
contains over 275 continuing professional development (CPD) and
Institute of Occupational Safety and Health (IOSH) approved courses
covering a wide range of topics such as cyber security, leadership,
mental health and safeguarding. The courses are designed to be
accessible and engaging, and existing clients include Countrywide,
DPD, Dunelm, Lotus Cars and Moonpig. The funding from the Maven
VCTs will enable the business to enhance product development,
support sales and marketing initiatives and provide general working
capital headroom.
-- Manufacture 2030 (M2030) has developed a software solution to
assist large corporates with complex manufacturing supply chains to
work with their suppliers to measure and reduce carbon emissions.
The platform enables companies to collate environmental impact data
and formulate reduction strategies, before tracking progress and
reporting this to their customers. The business has developed a
strong client base, including multinationals such as Asda, Bayer,
Ford, General Motors, Morrisons and SC Johnson. The funding from
the Maven VCT's is being used to expand M2030's market position in
key sectors such as automotive, chemical, pharmaceuticals and
retail, and to support further product development to enhance the
platform's functionality.
The following investments have been completed during the
reporting period:
Investment
cost
Investments Date Sector GBP'000
-------------------------------------- -------------- ------------------------------- ----------
New unlisted
2 degrees Limited
(trading as Manufacture 2030) March 2023 Software & technology 698
Learning & development
iAM Compliant Limited May 2023 / recruitment technology 298
-------------------------------------- -------------- ------------------------------- ----------
Total new unlisted 996
--------------------------------------------------------------------------------------- ----------
Follow-on unlisted
Draper & Dash Limited Pharmaceuticals, biotechnology
(trading as RwHealth) April 2023 & healthcare 100
Enpal Limited
(trading as Guru Systems) April 2023 Software & technology 82
Liftango Group Limited February 2023 Software & technology 250
MirrorWeb Limited February 2023 Software & technology 90
Marketing & advertising
Relative Insight Limited May 2023 technology 135
Turnkey Group (UK) Holdings
Limited March 2023 Software & technology 348
Zinc Digital Business Solutions April & June
Limited(1) 2023 Software & technology 209
-------------------------------------- -------------- ------------------------------- ----------
Total follow-on unlisted 1,214
--------------------------------------------------------------------------------------- ----------
Total unlisted 2,210
--------------------------------------------------------------------------------------- ----------
Open-ended investment companies(2)
Royal London Short Term Fixed
Income
Fund (Class Y Income) February 2023 Money market fund 1,009
Royal London Short Term Money
Market
Fund (Class Y Income) March 2023 Money market fund 2,035
-------------------------------------- -------------- ------------------------------- ----------
Total open-ended investment
companies 3,044
--------------------------------------------------------------------------------------- ----------
Money market funds(2)
Aberdeen Standard Liquidity
Fund (Lux) -
Sterling Fund (Class K3) April 2023 Money market fund 1,004
Aviva Investors Sterling Liquidity
Fund
(Class 3) April 2023 Money market fund 1,003
BlackRock Institutional Sterling
Liquidity
Fund (Core) May 2023 Money market fund 1,003
-------------------------------------- -------------- ------------------------------- ----------
Total money market funds 3,010
--------------------------------------------------------------------------------------- ----------
Private equity investment trusts(2)
-------------------------------------- -------------- ------------------------------- ----------
abrdn Private Equity Opportunities
Trust PLC (formerly Standard
Life Private Equity
Trust PLC) March 2023 Investment trust 226
-------------------------------------- -------------- ------------------------------- ----------
Alliance Trust PLC May 2023 Investment trust 149
-------------------------------------- -------------- ------------------------------- ----------
Apax Global Alpha Limited May 2023 Investment trust 50
-------------------------------------- -------------- ------------------------------- ----------
HgCapital Trust PLC March 2023 Investment trust 250
-------------------------------------- -------------- ------------------------------- ----------
ICG Enterprise Trust PLC May 2023 Investment trust 159
-------------------------------------- -------------- ------------------------------- ----------
JPMorgan Global Growth & Income
PLC May 2023 Investment trust 125
-------------------------------------- -------------- ------------------------------- ----------
NB Private Equity Partners Limited March 2023 Investment trust 371
-------------------------------------- -------------- ------------------------------- ----------
Total private equity investment
trusts 1,330
--------------------------------------------------------------------------------------- ----------
Real estate investment trust(2)
-------------------------------------- -------------- ------------------------------- ----------
Impact Healthcare REIT PLC May 2023 Investment trust 236
-------------------------------------- -------------- ------------------------------- ----------
Total real estate investment
trust 236
--------------------------------------------------------------------------------------- ----------
Infrastructure investment trusts(2)
-------------------------------------- -------------- ------------------------------- ----------
3i Infrastructure PLC May 2023 Investment trust 260
-------------------------------------- -------------- ------------------------------- ----------
BBGI Global Infrastructure SA May 2023 Investment trust 280
-------------------------------------- -------------- ------------------------------- ----------
International Public Partnerships
Limited May 2023 Investment trust 270
-------------------------------------- -------------- ------------------------------- ----------
JLEN Environmental Assets Group
Limited May 2023 Investment trust 260
-------------------------------------- -------------- ------------------------------- ----------
Pantheon Infrastructure PLC March2023 Investment trust 250
-------------------------------------- -------------- ------------------------------- ----------
Total infrastructure investment
trusts 1,320
--------------------------------------------------------------------------------------- ----------
Total investments 11,150
--------------------------------------------------------------------------------------- ----------
(1) Follow-on investments completed in two tranches.
(2) Investments completed as part of the liquidity management
strategy.
At the period end, the portfolio compromised of 129 unlisted and
quoted investments, at a total cost of GBP67.68 million.
Realisations
The table below gives details of the realisations completed
during the reporting period:
Cost of Gain/(loss)
shares Value at over 31
Complete/ disposed 31 December Sales Realised December
Year first partial of 2022 proceeds gain/(loss) 2022 value
Realisations invested exit GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- ------------ ----------- ------------- ------------- ---------- ------------- ------------
Unlisted
ADC Biotechnology
Limited(1) 2017 Complete - - 249 249 249
Ensco 969 Limited
(trading as DPP)(2) 2013 Partial 104 124 95 (9) (29)
Maven Co-invest
Endeavour
Limited
Partnership(3) 2013 Complete 4 773 795 791 22
Optoscribe
Limited(4) 2018 Complete - - 135 135 135
R&M Engineering
Group
Limited 2013 Complete 1,087 268 187 (900) (81)
Others - - 12 12 12
----------------------------------------------- ------------- ------------- ---------- ------------- ------------
Total unlisted 1,195 1,165 1,473 278 308
----------------------------------------------- ------------- ------------- ---------- ------------- ------------
Total realisations 1,195 1,165 1,473 278 308
----------------------------------------------- ------------- ------------- ---------- ------------- ------------
1 Deferred consideration following the sale in March 2021.
2 Proceeds from loan note repayment exclude yield received,
which is disclosed as revenue for financial reporting purposes.
3 Release of monies following the sale of the underlying company
in June 2022.
4 Deferred consideration following the sale in January 2022.
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 2022 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 such as
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.
The invasion of Ukraine by Russia was added to the Risk Register
as an emerging risk during a previous period, as the Directors were
not only aware of the heightened cyber security risk but were
mindful of the impact that any change in the underlying economic
conditions could have on the valuation of investment companies.
These included fluctuating interest rates, increased fuel and
energy costs, and the availability of bank finance, all of which
could be impacted during times of geopolitical uncertainty and
volatile markets. The Board and the Manager continue to monitor the
impact of the conflict, and wider market conditions, on portfolio
companies.
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 for
the Company 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 that is at a discount of approximately 5% to the latest
published NAV per share, subject to market conditions, availability
liquidity and the maintenance of the Company's VCT qualifying
status.
Shareholders should be aware that neither the Company nor the
Manager can execute a direct transaction in the Company's shares.
Any instruction to buy or sell shares on the secondary market must
be directed through a stockbroker. A Shareholder, or their broker,
can contact the Company's broker, Shore Capital Stockbrokers on 020
7647 8132, to discuss a transaction. It should, however, be noted
that such transactions cannot take place whilst the Company is in a
closed period, which is the time from the end of a reporting period
until the announcement of the relevant results or an unaudited NAV.
A closed period may also be introduced if the Directors and Manager
are in possession of price sensitive information.
During the period under review, 1,775,000 shares were bought
back at a total cost of GBP1,145,000.
VCT Regulatory Update
During the period under review, there were no further amendments
to the rules governing VCTs. However, Shareholders may be aware
that, as approved by the European Commission in 2015, the VCT
scheme included a "sunset" clause, which provided that, unless the
legislation was renewed by an HM Treasury order, income tax relief
would no longer be available on subscriptions for new shares in
VCTs made on or after 6 April 2025. There has been a considerable
level of activity by industry representatives such as the Venture
Capital Trust Association (VCTA), of which the Manager is an active
member, and The Association of Investment Companies (AIC), of which
the Company is a member, to demonstrate the important role of VCT
investment in supporting SMEs across the country and stimulating
economic growth and regional employment. The Board and the Manager
welcomed the announcement by the UK Government in its Autumn 2022
budget statement of an intention to extend the income tax relief
available on new VCT shares beyond 2025. This commitment was
reaffirmed in the Spring 2023 budget, and the Manager will remain
involved in discussions regarding the process for implementing this
extension.
Consistent with industry best practice, the Board and the
Manager continue to apply the International Private Equity and
Venture Capital Valuation (IPEV) Guidelines (Valuation Guidelines)
as the central methodology for all private company valuations. The
Valuation Guidelines are the prevailing framework for fair value
information in the private equity and venture capital industry, and
the Directors and the Manager continue to adhere to the Valuation
Guidelines when assessing all private company investments.
Environmental, Social and Governance (ESG) Considerations
Whilst your Company's investment policy does not incorporate
specific ESG objectives, and investee companies are not required to
meet any particular targets, Maven continues to develop its ESG
framework and oversight capabilities, recognising the benefits and
importance of incorporating these core principles into its
investment approach. Early stage ESG due diligence is now a
standard part of the pre-investment decision making process and is
a core component within the selection criteria, thereby ensuring
that all ESG risks and opportunities are discussed fully prior to
the completion of any investment. During the period under review,
in recognition of the growth within this area, the Manager has
invested additional resource into its ESG capabilities, and the
requirement to record and monitor detailed ESG information across
the portfolio.
A number of investee companies are already highly focused on the
environment or delivering improvements to society and local
communities, and have set themselves specific ESG related goals.
Where this is not the case, the Manager is able to support and
advise on the value of improving these metrics and can help
portfolio companies by sharing best practice.
The ESG regulatory landscape is evolving, and the Manager
provides the Board with regular updates on the latest developments.
A relevant regulation is the Task Force on Climate-related
Financial Disclosures (TCFD) on which neither the Company nor the
Manager are required to report. However, the Board and the Manager
acknowledge the aims and importance of the TCFD, and, therefore,
reporting in line with TCFD is an objective of the Manager as part
of its approach to ESG.
Your Company has multiple investments in companies with strong
ESG credentials that are achieving growth in expanding markets, and
the Manager is committed to maintaining a responsible approach to
new and existing investments. The Manager continues to be an active
signatory to the UN Principles for Responsible Investment (UNPRI)
and, at the time of writing, is in the process of preparing its
first UNPRI report to demonstrate its ESG capabilities and
commitment to the Principles. Additionally, the Manager is a
signatory to the Investing in Women Code, which aims to reduce
barriers to tools, resources and finance for UK based female
entrepreneurs.
Outlook
With sufficient levels of liquidity, your Company's strategy
remains focused on further growing and developing the investee
company portfolio. The pipeline of potential new investments across
Maven's regional network of offices remains strong and it is
anticipated that there will be a good rate of new investment
through the second half of the year. The Manager will also continue
to work closely with existing portfolio companies, particularly
those that are growing rapidly and demonstrating the potential to
create significant Shareholder value, to ensure that their value is
maximised at the point of exit. This dual focus on portfolio
expansion and value maximisation is aimed at ensuring that a steady
flow of profitable exits occur, in support of the objective of
providing Shareholders with regular tax free dividend payments.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
30 August 2023
Summary of Investment Changes
For the Six Months Ended 30 June 2023
Valuation Net investment/ Appreciation/ Valuation
31 December 2022 (disinvestment)(1) (depreciation) 30 June 2023
GBP'000 % GBP'000 GBP'000 GBP'000 %
------------------------ ---------- ------- ------------------- --------------- -------- -----
Unlisted investments
Equities 45,900 51.8 198 (738) 45,360 50.6
Loan stock 14,470 16.3 148 (681) 13,937 15.5
------------------------ ---------- ------- ------------------- --------------- -------- -----
60,370 68.1 346 (1,419) 59,297 66.1
AIM/AQSE investments(2)
Equities 3,988 4.4 464 (242) 4,210 4.7
Listed investments(3)
OEICs - - 3,044 (4) 3,040 3.4
======================== ========== ======= =================== =============== ======== =====
Money market funds - - 3,010 - 3,010 3.4
======================== ========== ======= =================== =============== ======== =====
Investment trusts 2,500 2.8 2,886 (24) 5,362 6.0
======================== ========== ======= =================== =============== ======== =====
Total investments 66,858 75.3 9,750 (1,689) 74,919 83.6
Other net assets 21,786 24.7 (7,011) - 14,775 16.4
======================== ========== ======= =================== =============== ======== =====
Net assets 88,644 100.0 2,739 (1,689) 89,694 100.0
======================== ========== ======= =================== =============== ======== =====
1 These movements include the transfer of the unlisted holding
in Kanabo GP Limited into shares in AIM quoted Kanabo Group PLC,
alongside the delisting from AIM of DeepMatter PLC, both of which
took place during the reporting period.
2 Shares traded on the Alternative Investment Market (AIM) and the Aquis Stock Exchange (AQSE).
3 These holdings represent the liquidity management portfolio,
which has been constructed from a range of carefully selected,
permitted non-qualifying holdings in open-ended investment
companies (OEICs), money market funds and investment trusts.
Investment Portfolio Summary
As at 30 June 2023
% of % of % of equity
Valuation Cost total equity held by other
Investment GBP'000 GBP'000 assets held clients(1)
Unlisted
BioAscent Discovery Limited 6,335 1,532 7.1 26.1 13.9
Horizon Ceremonies Limited
(trading as Horizon Cremation) 4,769 2,463 5.3 12.9 39.7
Bright Network (UK) Limited 2,989 1,383 3.3 11.7 28.2
Rockar 2016 Limited (trading as Rockar) 2,615 1,766 2.9 6.2 13.2
WaterBear Education Limited 2,075 987 2.3 20.1 19.1
Ensco 969 Limited (trading as DPP) 1,994 1,657 2.2 7.4 27.1
MirrorWeb Limited 1,743 890 1.9 8.5 41.4
QikServe Limited 1,674 1,674 1.9 7.6 8.2
Relative Insight Limited 1,611 1,135 1.8 5.7 26.0
CB Technology Group Limited 1,584 1,097 1.8 18.6 56.4
Whiterock Group Limited 1,482 1,014 1.7 13.0 17.0
Vodat Communications Group (VCG)
Holding Limited 1,427 1,240 1.6 8.4 23.5
NorthRow Limited (formerly Contego
Solutions Limited) 1,364 1,581 1.5 12.1 20.2
Delio Limited 1,339 994 1.5 4.0 9.6
ebb3 Limited 1,285 1,307 1.4 31.4 47.5
Glacier Energy Services Holdings
Limited 1,219 1,540 1.4 6.0 21.7
HCS Control Systems Group Limited 1,201 1,201 1.3 10.7 25.8
Nano Interactive Group Limited 1,126 625 1.3 3.7 11.2
Martel Instruments Holdings Limited 1,038 701 1.2 14.7 29.6
Filtered Technologies Limited 1,034 950 1.2 9.7 15.8
Hublsoft Group Limited 1,017 800 1.1 7.3 16.4
RevLifter Limited 1,000 1,000 1.1 10.2 16.4
Cat Tech International Limited 875 1,115 1.0 8.4 21.6
Boomerang Commerce Inc
(trading as CommerceIQ)(2) 873 1,164 1.0 0.2 0.3
DiffusionData Limited
(formerly Push Technology Limited) 855 625 1.0 2.9 13.7
Precursive Limited 750 750 0.8 5.4 28.8
Liftango Group Limited 748 748 0.8 3.1 10.9
Horizon Technologies Consultants
Limited 746 448 0.8 3.1 14.1
Flow UK Holdings Limited 735 1,047 0.8 12.7 22.3
TC Communications Holdings Limited 734 958 0.8 10.7 19.3
2 degrees Limited (trading as Manufacture
2030) 698 698 0.8 2.5 8.6
Growth Capital Ventures Limited 650 639 0.7 11.5 36.0
Maven Capital (Marlow) Limited 650 650 0.7 0.0 100.0
Bud Systems Limited 647 647 0.7 3.7 13.3
Draper & Dash Limited (trading as
RwHealth) 498 498 0.6 2.0 11.6
Turnkey Group (UK) Holdings Limited 497 497 0.6 7.7 31.0
Summize Limited 448 448 0.5 2.9 30.2
mypura.com Group Limited (trading
as Pura) 431 216 0.5 1.1 21.3
The Algorithm People Limited 420 420 0.5 6.1 10.2
Project Falcon Topco Limited
(trading as Quorum Cyber)(3) 419 419 0.5 1.1 1.9
Zinc Digital Business Solutions Limited 408 408 0.5 7.5 27.1
CODILINK UK Limited (trading as Coniq) 400 400 0.4 1.1 3.8
GradTouch Limited 400 200 0.4 2.0 32.7
FodaBox Limited 398 398 0.4 1.3 3.7
Enpal Limited (trading as Guru Systems) 381 381 0.4 3.2 18.4
Shortbite Limited (trading as Fixtuur) 367 610 0.4 8.0 49.3
Novatus Global Limited
(formerly Novatus Advisory Limited) 348 348 0.4 2.3 11.0
Biorelate Limited 348 348 0.4 2.0 23.7
Plyable Limited 348 348 0.4 3.3 14.1
HiveHR Limited 346 346 0.4 4.4 40.2
CYSIAM Limited 336 199 0.4 3.5 16.5
ORCHA Health Limited 332 332 0.4 1.4 4.2
Snappy Shopper Limited 298 298 0.3 0.4 1.3
iAM Compliant Limited 298 298 0.3 3.9 35.0
ISN Solutions Group Limited 216 467 0.2 7.8 47.2
Rico Developments Limited (trading
as Adimo) 200 200 0.2 1.5 8.2
XR Games Limited 149 149 0.2 0.8 19.4
Reed Thermoformed Packaging Limited
(trading as iPac Packaging Innovations) 106 100 0.1 0.5 11.8
Other unlisted investments 23 2,315 -
Total unlisted 59,297 47,669 66.1
AIM/AQSE quoted
Kanabo Group PLC(4) 466 2,986 0.5 25.1 42.1
GENinCode PLC 435 600 0.5 4.0 7.1
MaxCyte Inc 421 207 0.5 0.1 0.1
Intelligent Ultrasound Group PLC 343 400 0.4 1.2 0.8
Oxford Metrics PLC 271 80 0.3 0.2 -
Verici Dx PLC 241 438 0.3 1.3 0.3
Avacta Group PLC 214 33 0.2 0.1 0.1
KRM22 PLC 189 220 0.2 1.2 -
Diaceutics PLC 178 161 0.2 0.3 0.3
C4X Discovery Holdings PLC 177 137 0.2 0.4 0.5
SkinBioTherapeutics PLC 156 208 0.2 0.7 -
Eden Research PLC 128 83 0.1 0.4 1.0
Destiny Pharma PLC 123 300 0.1 0.6 0.8
One Media IP Group PLC 120 186 0.1 1.2 -
Creo Medical Group PLC 98 497 0.1 0.2 -
Pelatro PLC 72 496 0.1 1.8 0.6
Spectral MD Holdings PLC 67 99 0.1 0.1 0.1
Faron Pharmaceuticals PLC 66 70 0.1 - 0.1
Feedback PLC 61 121 0.1 0.4 1.2
TPXimpact Holdings PLC
(formerly The Panoply Holdings PLC) 54 107 0.1 0.2 -
Polarean Imaging PLC 51 129 0.1 0.1 0.5
Access Intelligence PLC 48 35 0.1 0.1 0.4
AFC Energy PLC 45 57 0.1 - -
ReNeuron Group PLC 35 277 - 0.7 1.4
Vianet Group PLC 32 49 - 0.1 1.3
Crossword Cybersecurity PLC 30 122 - 0.4 1.7
RUA Life Sciences PLC 27 100 - 0.4 1.3
Hardide PLC 24 122 - 0.3 0.2
Angle PLC 17 82 - 0.1 -
Oncimmune Holdings PLC 8 100 - 0.1 0.4
Osirium Technologies PLC 5 100 - 0.2 1.8
Seeen PLC 5 75 - 0.2 0.8
Other quoted investments 3 395 -
Total AIM/AQSE quoted 4,210 9,072 4.7
Private equity investment trusts(5)
HgCapital Trust PLC 777 531 0.9 0.1 0.1
abrdn Private Equity Opportunities
Trust PLC
(formerly Standard Life Private Equity
Trust PLC) 435 367 0.5 0.1 0.1
Apax Global Alpha Limited 433 344 0.5 - 0.1
ICG Enterprise Trust PLC 418 358 0.5 0.1 0.1
CT Private Equity Trust PLC
(formerly BMO Private Equity Trust
PLC) 400 293 0.4 0.1 0.2
Princess Private Equity Holding Limited 347 336 0.4 0.1 0.1
NB Private Equity Partners Limited 338 371 0.4 - -
HarbourVest Global Private Equity
Limited 236 153 0.3 - -
Alliance Trust PLC 151 149 0.2 - -
JPMorgan Global Growth & Income PLC 127 125 0.1 - -
Pantheon International PLC 120 99 0.1 0.1 0.2
Total private equity investment
trusts 3,782 3,126 4.3
Fixed income investment trusts(5)
TwentyFour Income Fund Limited 153 196 0.2 0.1 -
Alcentra European Floating Rate Income
Fund Limited 9 11 - - -
Total fixed income investment trusts 162 207 0.2
Real estate investment trust(5)
Impact Healthcare REIT PLC 216 236 0.2 - 0.1
Total real estate investment trust 216 236 0.2
Infrastructure investment trusts(5)
BBGI Global Infrastructure SA 258 280 0.3 - 0.1
3i Infrastructure PLC 249 260 0.3 - -
International Public Partnerships
Limited 243 270 0.3 - -
JLEN Environmental Assets Group Limited 227 260 0.2 - 0.1
Pantheon Infrastructure PLC 225 250 0.2 0.1 0.2
Total infrastructure investment
trusts 1,202 1,320 1.3
Open-ended investment companies(5)
Royal London Short Term Money Market
Fund
(Class Y Income) 2,027 2,035 2.3 - 0.1
Royal London Short Term Fixed Income
Fund
(Class Y Income) 1,013 1,009 1.1 - -
Total open-ended investment companies 3,040 3,044 3.4
Money market funds(5)
Aberdeen Standard Liquidity Fund
(Lux) - Sterling Fund (Class K3) 1,004 1,004 1.2 - -
Aviva Investors Sterling Liquidity
Fund (Class 3) 1,003 1,003 1.1 - -
BlackRock Institutional Sterling
Liquidity Fund (Core) 1,003 1,003 1.1 - 0.1
Total money market funds 3,010 3,010 3.4
Total investments 74,919 67,684 83.6
(1) Other clients of Maven Capital Partners UK LLP.
(2) This holding reflects the retained minority interest
following the sale of e.fundamentals (Group) Limited to CommerceIQ
in July 2022.
(3) Retained minority interest from the sale of Quorum Cyber
Security Limited in December 2022.
(4) The holding in this investment resulted from the sale of The
GP Service (UK) Limited, which completed in February 2022. During
the reporting period, the unlisted shares in Kanabo GP Limited
were, in accordance with the terms of the original transaction,
exchanged for shares in AIM quoted Kanabo Group PLC.
(5) Liquidity management portfolio.
Shaded line indicates that the investment was completed pre
November 2015.
Income Statement
For the six month ended 30 June 2023
Six months ended Six months ended Year ended
30 June 2023 30 June 2022 31 December 2022
(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 - (1,689) (1,689) - (3,719) (3,719) - (787) (787)
Income from investments 561 - 561 713 - 713 1,297 - 1,297
Other income 176 - 176 5 - 5 92 - 92
Investment management
fees (225) (898) (1,123) (211) (842) (1,053) (435) (1,738) (2,173)
Other expenses (286) - (286) (218) - (218) (497) - (497)
------------------------ -------- -------- -------- --------- --------- -------- -------- -------- ----------
Net return on ordinary
activities before
taxation 226 (2,587) (2,361) 289 (4,561) (4,272) 457 (2,525) (2,068)
Tax on ordinary
activities - - - (18) 18 - - - -
------------------------ -------- -------- -------- --------- --------- -------- -------- -------- ----------
Return attributable
to Equity Shareholders 226 (2,587) (2,361) 271 (4,543) (4,272) 457 (2,525) (2,068)
------------------------ -------- -------- -------- --------- --------- -------- -------- -------- ----------
Earnings per share
(pence) 0.17 (1.92) (1.75) 0.22 (3.73) (3.51) 0.36 (2.00) (1.64)
------------------------ -------- -------- -------- --------- --------- -------- -------- -------- ----------
All gains and losses are recognised in the Income Statement.
The total column of this statement is the Profit & Loss
Account of the Company. The revenue and capital columns are
supplementary to this and are prepared under guidance published by
the AIC. 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 month ended 30 June 2023
Six months ended 30 June 2023 (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
2022 12,977 37,443 762 12,100 4,213 19,975 1,174 88,644
Net return - - - (1,893) 204 (898) 226 (2,361)
Dividends
paid - - - - - (2,328) (68) (2,396)
Repurchase
and
cancellation
of shares (177) - 177 - - (1,145) - (1,145)
Net proceeds
of share
issue 978 5,729 - - - - - 6,707
Net proceeds
of DIS issue 37 208 - - - - - 245
-------------- --------- ---------- ------------ ------------- ---------- --------------- --------- ----------
At 30 June
2023 13,815 43,380 939 10,207 4,417 15,604 1,332 89,694
-------------- --------- ---------- ------------ ------------- ---------- --------------- --------- ----------
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
-------------- --------- ---------- ------------ ------------- ---------- --------------- --------- ----------
Year ended 31 December 2022 (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
2021 10,992 23,244 502 14,583 2,517 29,367 1,107 82,312
Net return - - - (2,483) 1,696 (1,738) 457 (2,068)
Dividends
paid - - - - - (5,940) (390) (6,330)
Repurchase
and
cancellation
of shares (260) - 260 - - (1,714) - (1,714)
Net proceeds
of share
issue 2,157 13,692 - - - - - 15,849
Net proceeds
of DIS
issue* 88 507 - - - - - 595
-------------- --------- ---------- ------------ ------------- ---------- --------------- --------- ----------
At 31
December
2022 12,977 37,443 762 12,100 4,213 19,975 1,174 88,644
-------------- --------- ---------- ------------ ------------- ---------- --------------- --------- ----------
The capital reserve unrealised is generally non-distributable,
other than the part of the reserve relating to gains/(losses)
attributable to readily realisable quoted investments that are
distributable.
Where all, or an element, of the proceeds of sales have not been
received in cash or cash equivalent, and are not readily
convertible to cash, they do not qualify as realised gains for the
purposes of distributable reserves calculations and, therefore, do
not form part of distributable reserves.
The accompanying Notes are an integral part of the Financial
Statements.
*DIS represents the Dividend Investment Scheme.
Balance Sheet
As at 30 June 2023
30 June 30 June 31 December
2023 2022 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------- --------------- --------------- --------------
Fixed assets
Investments at fair value through
profit or loss 74,919 63,480 66,858
Current assets
Debtors 1,542 1,322 1,610
Cash 13,419 24,968 20,352
------------------------------------- --------------- --------------- --------------
14,961 26,290 21,962
Creditors
Amounts falling due within one
year (186) (137) (176)
------------------------------------- --------------- --------------- --------------
Net current assets 14,775 26,153 21,786
------------------------------------- --------------- --------------- --------------
Net assets 89,694 89,633 88,644
------------------------------------- --------------- --------------- --------------
Capital and reserves
Called up share capital 13,815 13,072 12,977
Share premium account 43,380 37,218 37,443
Capital redemption reserve 939 628 762
Capital reserve - unrealised 10,207 7,377 12,100
Capital reserve - realised 4,417 6,004 4,213
Special distributable reserve 15,604 23,991 19,975
Revenue reserve 1,332 1,343 1,174
------------------------------------- --------------- --------------- --------------
Net assets attributable to Ordinary
Shareholders 89,694 89,633 88,644
------------------------------------- --------------- --------------- --------------
Net asset value per Ordinary Share
(pence) 64.92 68.56 68.30
------------------------------------- --------------- --------------- --------------
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
30 August 2023
The accompanying Notes are an integral part of the Financial
Statements.
Cash Flow Statement
For the Six Months Ended 30 June 2023
Six months Six months Year ended
ended ended
30 June 2023 30 June 2022 31 December
2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------- --------------- --------------- --------------
Net cash flows from operating
activities (662) (1,424) (2,187)
Cash flows from investing
activities
Purchase of investments (11,150) (1,010) (5,471)
Sale of investments 1,468 5,267 9,068
------------------------------- --------------- --------------- --------------
Net cash flows from investing
activities (9,682) 4,257 3,597
------------------------------- --------------- --------------- --------------
Cash flows from financing
activities
Equity dividends paid (2,396) (3,722) (6,330)
Net proceeds of DIS issue 245 331 595
Issue of Ordinary Shares 6,707 15,849 15,849
Repurchase of Ordinary Shares (1,145) (865) (1,714)
------------------------------- --------------- --------------- --------------
Net cash flows from financing
activities 3,411 11,593 8,400
------------------------------- --------------- --------------- --------------
Net increase/(decrease)
in cash (6,933) 14,426 9,810
------------------------------- --------------- --------------- --------------
Cash at beginning of period 20,352 10,542 10,542
Cash at end of period 13,419 24,968 20,352
The accompanying Notes are an integral part of the Financial
Statements.
Notes to the Financial Statements
For the Six Months Ended 30 June 2023
1. Accounting policies
The financial information for the six months ended 30 June 2023
and the six months ended 30 June 2022 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 2022, 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 generally
non-distributable, other than the part of the reserve relating to
gains/(losses) attributable to readily realisable quoted
investments that are 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
2023
-------------------------------------------- ------------------------
The returns per share have been based on the
following figures:
Weighted average number of Ordinary Shares 134,913,434
Revenue return GBP226,000
Capital return (GBP2,587,000)
-------------------------------------------- ------------------------
Total return (GBP2,361,000)
-------------------------------------------- ------------------------
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
-- the Financial Statements for the six months ended 30 June
2023 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 2023; 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,
Saddlers House, 44 Gutter Lane, London, EC2V 6BR; and, in due
course, on the Company's webpage at mavencp.com/migvct4.
Neither the content of the Company's webpage nor the contents of
any website accessible from hyperlinks on the Company's webpage (or
any other webpage) is incorporated into, or forms part of, this
announcement.
By order of the Board
Maven Capital Partners UK LLP
Secretary
30 August 2023
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