TIDMMIG1
RNS Number : 5721Q
Maven Income & Growth VCT PLC
18 October 2023
Maven Income and Growth VCT PLC
Interim results for the six months ended 31 August 2023
(unaudited)
The Directors are pleased to announce the unaudited Interim
Management Report for the six months ended 31 August 2023.
Highlights
-- NAV total return at 31 August 2023 of 146.28p per share
-- NAV at 31 August 2023 of 40.87p per share, after payment of
the 2023 final dividend of 1.15p per share in July 2023
-- Interim dividend of 1.00p per share declared for payment on 1 December 2023
-- Two new private companies and one AIM quoted holding added to
the portfolio, with follow-on funding provided to seven portfolio
companies
-- Post the period end, two new private company investments completed
-- Offer for Subscription closed, raising GBP6.74 million, with
a new fund raising launched in October 2023
Overview
During the first half of the financial year, the macroeconomic
environment remained challenging with growth prospects suppressed
by inflationary pressures and rising interest rates. Against this
backdrop, it is encouraging to report on the strategic 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 1.00p per share has been declared for payment in December
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 a challenging
operating environment for many businesses and consumers.
Notwithstanding the 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
provides a degree of insulation 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 continue to progress its long term investment
objective.
In May 2023, your Company closed its most recent Offer for
Subscription, raising a total of GBP6.74 million for 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 towards 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 end 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 annual recurring revenues (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 several 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 new
investments will be completed during the second half of this
financial year.
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 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.
The performance of the AIM portfolio 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 overall 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 as well as 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. During the
reporting period, a small position was taken in one new AIM quoted
company that operates in the growth area of personalised
healthcare. The Manager will, however, remain highly selective on
any further 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
several 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. Not less than 70% of a VCT's income must be derived
from shares or securities and, in order 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
constructed a portfolio of leading money market funds and
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 29 February 2024, an interim
dividend of 1.00p per share will be paid on 1 December 2023 to
Shareholders who are on the register at 3 November 2023. Since the
Company's launch, and after receipt of this interim dividend, a
total of 106.41p 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, as a guide and
subject to the considerations outlined above, will seek 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.
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.
In order for the DIS to apply in respect of the interim dividend
that is due to be paid on 1 December 2023, a mandate form must be
received by the Registrar (The City Partnership) before 17 November
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 tax
considerations) are available from the Company's webpage at:
mavencp.com/migvct. 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.
Offers for Subscription
On 7 October 2022, your Company, alongside the other three Maven
managed VCTs, launched Offers for Subscription. The Offers closed
on 26 May 2023 with your Company raising a total of GBP6.74 million
for the 2022/23 and 2023/24 tax years.
With respect to the 2022/23 tax year, an allotment of 8,130,478
new Ordinary Shares completed on 3 March 2023, with a further
allotment of 4,986,813 new Ordinary Shares on 5 April 2023. An
allotment of 2,013,349 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 investments in VCT qualifying
companies across a range of sectors, and that 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.
As announced on 13 October 2023, the Company launched a new
Offer for Subscription alongside the three other Maven managed
VCTs. Your Company has a target raise of GBP5 million, with the
ability to utilise an over- allotment facility for up to a further
GBP2.5 million. The Prospectus can be found at:
mavencp.com/vctoffer.
Portfolio Developments
Graduate recruitment specialist Bright Network continues to make
positive progress, with revenues now in excess of GBP11 million and
over 900,000 active members. Working with over 300 partner firms
such as Amazon, Bloomberg, Google and Vodafone, Bright Network
offers a comprehensive range of services, including advice and
support to assist its members in securing their first job or
internship, as well as 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 made good progress and already has
consultants deployed with Lloyds Bank and Marks & Spencer. It
was also 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. During the period,
follow-on funding was provided to support the targeted
international expansion strategy, which has achieved a successful
launch in Germany.
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 commercial
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 positive 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. To
support the growth strategy, a new engineering and testing hub is
being established in Newcastle, which will serve as a quality and
assurance centre to ensure that DiffusionData can maintain its high
standard of service delivery. In 2022, the business achieved
notable industry recognition for its innovative data platform,
winning four awards and being shortlisted for a further twelve.
During the period under review, sustainable packaging
manufacturer iPac Packaging Innovations 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
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 of the
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. The near term objective
remains to accelerate international growth and capitalise on
emerging opportunities in Europe and North America, whilst also
broadening the product offering to existing customers and
regions.
Digital archiving specialist MirrorWeb continues to deliver
impressive revenue growth. Having established the business in the
UK, MirrorWeb is now focused on expansion into the US, which is
viewed as a pivotal market. The international growth strategy is
being led by the CEO, who relocated to Texas earlier this year. The
immediate focus is to increase 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 provides a white label
cloud-based solution to help manufacturers and retailers develop
digital alternatives to replace or complement existing showroom
models and 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. In specific cases, valuations
have been reduced to reflect the lower than expected trading
performance and, consistent with Maven's proactive approach to
portfolio management, the Manager has been instrumental in helping
management teams to identify the specific issues facing their
business and implementing measures to help them return to
growth.
New Investments
During the reporting period, two new private companies were
added to the portfolio:
-- iAM Compliant is a software business that has established a
strong position in the eLearning market and has two distinct
divisions that operate independently. 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 business has achieved a good
rate of recurring revenue and maintains a high client retention
rate. 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. M2030 has developed a strong
client base, including multinationals such as Asda, Bayer, Ford,
General Motors, Morrisons and SC Johnson. The funding from the
Maven VCTs is being used to expand in key sectors such as
automotive, chemical, pharmaceuticals and retail, and to support
further product development to enhance the platform's
functionality.
In addition, a small position was taken in AIM quoted
biotechnology specialist Oxford BioDynamics, which is developing
precision medicine tests for personalised healthcare. Your Company
participated in the GBP5.6 million fundraising, with the VCT
investment being used to provide working capital to support the
development and commercialisation of the company's proprietary
technology. Shortly after the period end, Oxford BioDynamics
released a positive update to the market, which resulted in a
material increase in the share price. This created the opportunity
to partially realise the holding at a price that was significantly
ahead of the entry level.
The table below gives details of the investments that were
completed during the reporting period:
Investments Date Sector Investment
cost
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 149
------------------- -------------------------------- -----------
Total new unlisted 847
-----------
Follow-on unlisted
------------------- -------------------------------- -----------
Learning & development/
Bright Network (UK) Limited July 2023 recruitment technology 224
------------------- -------------------------------- -----------
Draper & Dash Limited Pharmaceuticals, biotechnology
(trading as RwHealth) April 2023 & healthcare 75
------------------- -------------------------------- -----------
Enpal Limited (trading as
Guru Systems) April 2023 Software & technology 191
------------------- -------------------------------- -----------
Hublsoft Group Limited August 2023 Software & technology 55
------------------- -------------------------------- -----------
Shortbite Limited (trading
as Fixtuur) July 2023 Software & technology 100
------------------- -------------------------------- -----------
Turnkey Group (UK) Holdings March & August
Limited(1) 2023 Software & technology 421
------------------- -------------------------------- -----------
Zinc Digital Business Solutions
Limited(1) April & June 2023 Software & technology 104
------------------- -------------------------------- -----------
Total follow-on unlisted 1,170
-----------
Total unlisted 2,017
-----------
New AIM quoted
------------------- -------------------------------- -----------
Pharmaceuticals, biotechnology
Oxford BioDynamics PLC August 2023 & healthcare 99
------------------- -------------------------------- -----------
Total new AIM quoted 99
-----------
Total AIM quoted 99
-----------
Open-ended investment companies(2)
------------------- -------------------------------- -----------
Royal London Short Term Fixed
Income Fund (Class Y Income) June 2023 Money market fund 9
------------------- -------------------------------- -----------
Royal London Short Term Money
Market Fund (Class Y Income) June 2023 Money market fund 36
------------------- -------------------------------- -----------
Total open-ended investment
companies 45
-----------
Investment
cost
Investments Date Sector GBP'000
Money market funds(2)
-------------- -------------------- ------------
Aberdeen Standard Liquidity
Fund (Lux) - Sterling Fund
(Class K3) May 2023 Money market fund 1,011
-------------- -------------------- ------------
Aviva Investors Sterling
Government Liquidity Fund August 2023 Money market fund 1,000
-------------- -------------------- ------------
Aviva Investors Sterling
Liquidity Fund (Class 3) June 2023 Money market fund 1,007
-------------- -------------------- ------------
BlackRock Institutional Sterling
Government Liquidity Fund
(Core Dis) August 2023 Money market fund 1,000
-------------- -------------------- ------------
BlackRock Institutional Sterling
Liquidity Fund (Core) June 2023 Money market fund 1,007
-------------- -------------------- ------------
Goldman Sachs Sterling Government
Liquid Reserves Ireland (Institutional) June 2023 Money market fund 1,007
-------------- -------------------- ------------
Total money market funds 6,032
------------
Private equity investment
trusts(2)
-------------- -------------------- ------------
abrdn Private Equity Opportunities
Trust PLC (formerly Standard
Life Private Equity Trust
PLC) March 2023 Investment trust 151
-------------- -------------------- ------------
Alliance Trust PLC May 2023 Investment trust 80
-------------- -------------------- ------------
Apax Global Alpha Limited May 2023 Investment trust 50
-------------- -------------------- ------------
HgCapital Trust PLC March 2023 Investment trust 400
-------------- -------------------- ------------
ICG Enterprise Trust PLC June 2023 Investment trust 176
-------------- -------------------- ------------
NB Private Equity Partners
Limited March 2023 Investment trust 329
-------------- -------------------- ------------
Total private equity investment
trusts 1,186
------------
Real estate investment trust(2)
-------------- -------------------- ------------
Impact Healthcare REIT PLC June 2023 Investment trust 114
-------------- -------------------- ------------
Total real estate investment
trust 114
------------
Infrastructure investment
trusts(2)
-------------- -------------------- ------------
3i Infrastructure PLC May 2023 Investment trust 150
-------------- -------------------- ------------
BBGI Global Infrastructure
SA May 2023 Investment trust 140
-------------- -------------------- ------------
International Public Partnerships
Limited May 2023 Investment trust 140
-------------- -------------------- ------------
JLEN Environmental Assets
Group Limited May 2023 Investment trust 150
-------------- -------------------- ------------
Pantheon Infrastructure PLC May 2023 Investment trust 140
-------------- -------------------- ------------
Total infrastructure investment
trusts 720
------------
Total investments 10,213
------------
(1) Follow-on investment completed in two tranches.
(2) Investments completed as part of the liquidity management
strategy, details of which can be found in the Interim Report.
At the period end, the portfolio comprised of 121 unlisted and
quoted investments, at a total cost of GBP49.41 million.
Realisations
The table below gives details of the realisations completed
during the reporting period:
Cost of Gain/(loss)
shares Value at Realised over
Complete/ disposed 28 February Sales gain/ 28 February
Year first partial of 2023 proceeds (loss) 2023 value
Realisations invested exit GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Unlisted
------------ ------------ ---------- ------------- ---------- --------- -------------
ADC Biotechnology
Limited(1) 2017 Complete - - 129 129 129
------------ ------------ ---------- ------------- ---------- --------- -------------
Cardinality Limited(2) 2021 Complete - - 20 20 20
------------ ------------ ---------- ------------- ---------- --------- -------------
Ensco 969 Limited
(trading as DPP)(3) 2013 Partial 63 74 63 - (11)
------------ ------------ ---------- ------------- ---------- --------- -------------
Maven Co-invest
Endeavour
Limited Partnership(4) 2013 Complete 2 539 556 554 17
------------ ------------ ---------- ------------- ---------- --------- -------------
R&M Engineering Group
Limited 2013 Complete 762 172 120 (642) (52)
------------ ------------ ---------- ------------- ---------- --------- -------------
Total unlisted 827 785 888 61 103
---------- ------------- ---------- --------- -------------
Money market funds
------------ ------------ ---------- ------------- ---------- --------- -------------
Aviva Investors Sterling
Liquidity Fund (Class
3) 2023 Complete 1,007 1,007 1,007 - -
------------ ------------ ---------- ------------- ---------- --------- -------------
BlackRock Institutional
Sterling Liquidity
Fund (Core) 2023 Complete 1,007 1,007 1,007 - -
------------ ------------ ---------- ------------- ---------- --------- -------------
Total money market
funds 2,014 2,014 2,014 - -
---------- ------------- ---------- --------- -------------
Total realisations 2,841 2,799 2,902 61 103
---------- ------------- ---------- --------- -------------
(1) Deferred consideration following the sale in March 2021.
(2) Deferred consideration following the sale in August
2022.
(3) Proceeds from loan note repayment exclude yield received,
which is disclosed as revenue for financial reporting purposes.
(4) Release of monies following the sale of the underlying
company in June 2022.
Material Developments Since the Period End
Since 31 August 2023, two new private company holding(s)
has/have been added to the portfolio:
Drovo is a marketing technology business that specialises in
on-vehicle advertising. The business has developed a platform that
uses digital roof-top screens alongside an integrated software
application to give companies and marketing agencies superior
insight into the effectiveness of advertising reach. Its technology
goes beyond traditional advertising, as the digital screens can be
adapted in real time, allowing products to be advertised based on
the location of the vehicle or potential customers. The funding by
the Maven VCTs is being used to enable the digital screen business
to expand and take advantage of a market opportunity, whilst also
providing working capital to support the business as it grows.
Laverock Therapeutics is a specialist pre-clinical drug
discovery company that has developed a gene silencing platform for
use in the creation of next generation cell therapies focusing on
diabetes, solid tumour immunotherapy and T-Cells. Its
differentiated technology enables the development of cell therapies
that are stable and programmable, which offers scope to improve the
efficacy and safety, whilst also addressing many of the limitations
of existing approaches. The funding from the Maven VCTs is being
used to validate the core technology and generate pre-clinical data
across key programmes.
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 2023 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 investee 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, subject to market conditions, availability
liquidity and the maintenance of the Company's VCT qualifying
status, the Company should seek to maintain a share price that is
at approximately a 5% discount to the latest published NAV per
share.
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. If a Shareholder wishes to buy
or sell shares on the secondary market, they or their broker can
contact the Company's corporate 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 (quarter end, half year or full year) until the
announcement of the relevant results, or the release of an
unaudited NAV. A closed period may also be introduced if the
Directors and Manager are in possession of price sensitive
information which may further restrict the Company's ability to buy
back shares.
During the period under review, 984,000 shares were bought back
at a total cost of GBP390,000.
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 in the Chancellor's
Mansion House speech on 10 July 2023. Through the VCTA 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.
The Consumer Duty
In July 2023, the FCA's new Consumer Duty came into effect. This
requires firms that are subject to the new Consumer Duty rules to
ensure that they are acting to deliver good retail consumer
outcomes and that their strategies, governance, leadership and
policies reflect this. Although the Consumer Duty does not apply
directly to the Company, the Manager, as an FCA authorised firm, is
within its scope and is providing the Directors with regular
updates on the work that has been undertaken to ensure that good
outcomes are being delivered for Shareholders.
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 and the requirement
to record and monitor detailed ESG information across the
portfolio, the Manager has invested additional resource into its
ESG capabilities.
The ESG regulatory landscape is evolving constantly, 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 their 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 recently submitted 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 good levels of liquidity, your Company's strategy remains
focused on further growing and developing the investee company
portfolio. After a quiet first half of the year, the pipeline of
potential new investments across Maven's regional network of
offices has improved and it is anticipated that there will be a
higher rate of new private company investment activity during 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
18 October 2023
Summary of Investment Changes
For the Six Months Ended 31 August 2023
Valuation Valuation
28 February 2023 31 August 2023
Net investment/ Appreciation/
(disinvestment) (depreciation)
GBP'000 % GBP'000 GBP'000 GBP'000 %
----------- ------- --------- -------
Unlisted investments
----------- ------- ----------------- ---------------- --------- -------
Equities 33,197 57.6 1,215 (1,150) 33,262 54.8
----------- ------- ----------------- ---------------- --------- -------
Loan stock 8,068 14.0 211 (76) 8,203 13.5
----------- ------- ----------------- ---------------- --------- -------
41,265 71.6 1,426 (1,226) 41,465 68.3
----------- ------- ----------------- ---------------- --------- -------
AIM/AQSE investments(1)
----------- ------- ----------------- ---------------- --------- -------
Equities 1,804 3.1 (128) 39 1,715 2.8
----------- ------- ----------------- ---------------- --------- -------
Listed investments(2)
----------- ------- ----------------- ---------------- --------- -------
Investment trusts 1,279 2.2 2,020 (47) 3,252 5.3
----------- ------- ----------------- ---------------- --------- -------
OEICs 3,005 5.2 45 14 3,064 5.0
----------- ------- ----------------- ---------------- --------- -------
Money market funds - - 4,018 - 4,018 6.6
----------- ------- ----------------- ---------------- --------- -------
Total investments 47,353 82.1 7,381 (1,220) 53,514 88.0
----------- ------- ----------------- ---------------- --------- -------
Net current assets 10,287 17.9 (3,093) - 7,194 12.0
----------- ------- ----------------- ---------------- --------- -------
Net assets 57,640 100.0 4,288 (1,220) 60,708 100.0
----------- ------- ----------------- ---------------- --------- -------
(1) Shares traded on the Alternative Investment Market (AIM) and
the Aquis Stock Exchange (AQSE).
(2) 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), investment trusts and money market funds.
Investment Portfolio Summary
As at 31 August 2023
% of
equity
% of % of held
Valuation Cost total equity by other
Investment GBP'000 GBP'000 assets held clients(1)
Unlisted
---------- --------- -------- -------- ------------
Bright Network (UK) Limited 2,403 1,164 4.1 7.5 35.2
---------- --------- -------- -------- ------------
DiffusionData Limited (formerly Push
Technology Limited)(2) 1,681 875 2.9 3.8 12.7
---------- --------- -------- -------- ------------
Horizon Ceremonies Limited (trading
as Horizon Cremation) 1,535 788 2.5 4.2 48.5
---------- --------- -------- -------- ------------
MirrorWeb Limited 1,503 890 2.5 6.3 43.6
---------- --------- -------- -------- ------------
Rockar 2016 Limited (trading as Rockar) 1,404 948 2.3 4.2 15.3
---------- --------- -------- -------- ------------
Horizon Technologies Consultants Limited 1,326 796 2.2 5.5 11.7
---------- --------- -------- -------- ------------
NorthRow Limited (formerly Contego Solutions
Limited) 1,179 1,179 1.9 6.5 25.7
---------- --------- -------- -------- ------------
GradTouch Limited 1,133 567 1.9 5.3 29.3
---------- --------- -------- -------- ------------
Nano Interactive Group Limited 1,126 625 1.9 3.7 11.2
---------- --------- -------- -------- ------------
Martel Instruments Holdings Limited 1,058 807 1.7 14.9 29.3
---------- --------- -------- -------- ------------
BioAscent Discovery Limited 1,056 174 1.7 4.4 35.6
---------- --------- -------- -------- ------------
Delio Limited 1,046 782 1.7 3.1 10.5
---------- --------- -------- -------- ------------
Precursive Limited 1,000 1,000 1.6 6.7 27.5
---------- --------- -------- -------- ------------
Relative Insight Limited 953 700 1.6 3.0 28.7
---------- --------- -------- -------- ------------
CB Technology Group Limited 951 579 1.6 11.2 63.8
---------- --------- -------- -------- ------------
mypura.com Group Limited (trading as
Pura) 896 448 1.5 2.3 20.1
---------- --------- -------- -------- ------------
Enpal Limited (trading as Guru Systems) 888 888 1.5 7.5 14.1
---------- --------- -------- -------- ------------
Ensco 969 Limited (trading as DPP) 869 633 1.4 4.9 29.6
---------- --------- -------- -------- ------------
Vodat Communications Group Limited 852 567 1.4 5.0 26.9
---------- --------- -------- -------- ------------
Bud Systems Limited 846 846 1.4 4.8 12.2
---------- --------- -------- -------- ------------
HCS Control Systems Group Limited 843 846 1.4 6.9 29.6
---------- --------- -------- -------- ------------
Hublsoft Group Limited 812 730 1.3 5.5 18.3
---------- --------- -------- -------- ------------
XR Games Limited 805 497 1.3 2.8 17.4
---------- --------- -------- -------- ------------
Zinc Digital Business Solutions Limited 801 801 1.3 10.9 23.7
---------- --------- -------- -------- ------------
Rico Developments Limited (trading as
Adimo) 760 760 1.3 3.3 6.4
---------- --------- -------- -------- ------------
Novatus Global Limited 746 746 1.2 5.0 8.3
---------- --------- -------- -------- ------------
2 Degrees Limited (trading as Manufacture
2030) 698 698 1.1 2.5 8.6
---------- --------- -------- -------- ------------
QikServe Limited 659 659 1.1 3.0 12.8
---------- --------- -------- -------- ------------
CYSIAM Limited 630 373 1.0 6.5 13.5
---------- --------- -------- -------- ------------
Cat Tech International Limited 623 627 1.0 6.0 24.0
---------- --------- -------- -------- ------------
Turnkey Group (UK) Holdings Limited 620 620 1.0 8.3 30.4
---------- --------- -------- -------- ------------
Liftango Group Limited 598 598 1.0 2.5 11.5
---------- --------- -------- -------- ------------
Whiterock Group Limited 561 321 0.9 5.2 24.8
---------- --------- -------- -------- ------------
Glacier Energy Services Holdings Limited 544 688 0.9 2.7 25.0
---------- --------- -------- -------- ------------
WaterBear Education Limited 517 245 0.9 5.1 34.1
---------- --------- -------- -------- ------------
ORCHA Health Limited 497 497 0.8 1.2 7.5
---------- --------- -------- -------- ------------
Plyable Limited 497 497 0.8 4.7 12.7
---------- --------- -------- -------- ------------
Reed Thermoformed Packaging Limited
(trading as iPac Packaging Innovations) 477 448 0.8 2.5 9.9
---------- --------- -------- -------- ------------
Biorelate Limited 468 468 0.8 2.7 23.1
---------- --------- -------- -------- ------------
CODILINK UK Limited (trading as Coniq) 450 450 0.7 1.3 3.6
---------- --------- -------- -------- ------------
Summize Limited 448 448 0.7 2.9 30.2
---------- --------- -------- -------- ------------
Filtered Technologies Limited 435 400 0.7 4.1 21.3
---------- --------- -------- -------- ------------
ebb3 Limited 423 252 0.7 8.0 70.9
---------- --------- -------- -------- ------------
Flow UK Holdings Limited 420 598 0.7 7.3 27.7
---------- --------- -------- -------- ------------
Shortbite Limited (trading as Fixtuur) 390 584 0.6 7.5 67.4
---------- --------- -------- -------- ------------
Draper & Dash Limited (trading as RwHealth) 373 373 0.6 1.5 12.1
---------- --------- -------- -------- ------------
HiveHR Limited 346 346 0.6 4.4 40.2
---------- --------- -------- -------- ------------
Boomerang Commerce Inc (trading as CommerceIQ)(3) 338 451 0.6 0.1 0.4
---------- --------- -------- -------- ------------
Growth Capital Ventures Limited 300 288 0.5 5.3 42.1
---------- --------- -------- -------- ------------
FodaBox Limited 299 299 0.5 1.0 4.0
---------- --------- -------- -------- ------------
Snappy Shopper Limited 298 298 0.5 0.4 1.3
---------- --------- -------- -------- ------------
TC Communications Holdings Limited 241 413 0.4 3.5 26.5
---------- --------- -------- -------- ------------
Automated Analytics Limited (formerly
eSales Hub Limited) 150 150 0.2 1.9 18.7
---------- --------- -------- -------- ------------
iAM Compliant Limited 149 149 0.2 1.9 36.9
---------- --------- -------- -------- ------------
The Algorithm People Limited (trading
as Optimize) 140 140 0.2 2.0 14.2
---------- --------- -------- -------- ------------
ISN Solutions Group Limited 127 323 0.2 4.6 50.4
---------- --------- -------- -------- ------------
Project Falcon Topco Limited (trading
as Quorum Cyber)(4) 126 126 0.2 0.3 2.6
---------- --------- -------- -------- ------------
RevLifter Limited 100 100 0.2 1.0 25.6
---------- --------- -------- -------- ------------
LightwaveRF PLC(5) 40 74 0.1 0.9 0.9
---------- --------- -------- -------- ------------
Other unlisted investments 11 1,380 - - -
---------- --------- -------- -------- ------------
Total unlisted 41,465 34,017 68.3
---------- --------- -------- -------- ------------
% of
equity
% of % of held
Valuation Cost total equity by other
Investment GBP'000 GBP'000 assets held clients(1)
AIM/AQSE quoted
---------- --------- -------- -------- ------------
Kanabo Group PLC(6) 227 1,639 0.5 2.1 7.9
---------- --------- -------- -------- ------------
GENinCode PLC 205 397 0.4 1.8 9.3
---------- --------- -------- -------- ------------
Arecor Therapeutics PLC 137 167 0.3 0.2 0.2
---------- --------- -------- -------- ------------
Intelligent Ultrasound Group PLC 135 118 0.2 0.4 1.5
---------- --------- -------- -------- ------------
Destiny Pharma PLC 122 150 0.2 0.2 0.9
---------- --------- -------- -------- ------------
Oxford BioDynamics PLC 97 99 0.2 0.4 1.3
---------- --------- -------- -------- ------------
Avacta Group PLC 90 13 0.1 - 0.1
---------- --------- -------- -------- ------------
SulNOx PLC 70 130 0.1 0.4 0.4
---------- --------- -------- -------- ------------
Polarean Imaging PLC 60 246 0.1 0.2 0.4
---------- --------- -------- -------- ------------
Eden Research PLC 56 59 0.1 0.2 1.0
---------- --------- -------- -------- ------------
C4X Discovery Holdings PLC 48 40 0.1 0.1 0.8
---------- --------- -------- -------- ------------
Feedback PLC 45 74 0.1 0.4 1.3
---------- --------- -------- -------- ------------
Crossword Cybersecurity PLC 43 150 0.1 0.6 1.5
---------- --------- -------- -------- ------------
LungLife AI 40 82 0.1 0.2 0.3
---------- --------- -------- -------- ------------
Saietta Group PLC 37 111 0.1 0.1 0.1
---------- --------- -------- -------- ------------
Directa Plus PLC 34 120 0.1 0.1 0.1
---------- --------- -------- -------- ------------
Oncimmune Holdings PLC 29 236 - 0.2 0.3
---------- --------- -------- -------- ------------
Velocys PLC 27 148 - 0.1 0.1
---------- --------- -------- -------- ------------
Incanthera PLC 25 49 - 0.6 0.6
---------- --------- -------- -------- ------------
Vianet Group PLC 22 37 - 0.1 1.3
---------- --------- -------- -------- ------------
RUA Life Sciences PLC 21 149 - 0.6 1.1
---------- --------- -------- -------- ------------
Verici Dx PLC 21 83 - 0.1 1.4
---------- --------- -------- -------- ------------
Gelion PLC 20 121 - 0.1 0.1
---------- --------- -------- -------- ------------
Strip Tinning PLC 20 62 - 0.2 -
---------- --------- -------- -------- ------------
ReNeutron Group PLC 18 136 - 0.3 1.8
---------- --------- -------- -------- ------------
Osirium Technologies PLC 15 198 - 0.6 1
---------- --------- -------- -------- ------------
Hardide PLC 14 80 - 0.2 0.3
---------- --------- -------- -------- ------------
Seeen PLC 13 148 - 0.4 0.6
---------- --------- -------- -------- ------------
XP Factory PLC 13 26 - - 0.1
---------- --------- -------- -------- ------------
Other AIM/AQSE investments 11 282 - - -
---------- --------- -------- -------- ------------
Total AIM/AQSE quoted 1,715 5,350 2.8
---------- --------- -------- -------- ------------
% of
equity
% of % of held
Valuation Cost total equity by other
Investment GBP'000 GBP'000 assets held clients(1)
Private equity investment trusts(7)
---------- --------- -------- -------- ------------
HgCapital Trust PLC 518 434 0.8 - 0.1
---------- --------- -------- -------- ------------
abrdn Private Equity Opportunities Trust
PLC (formerly Standard Life Private
Equity Trust PLC) 380 349 0.6 0.1 0.2
---------- --------- -------- -------- ------------
ICG Enterprise Trust PLC 311 289 0.6 - 0.1
---------- --------- -------- -------- ------------
NB Private Equity Partners Limited 306 329 0.5 - 0.3
---------- --------- -------- -------- ------------
HarbourVest Global Private Equity Limited 302 194 0.5 - -
---------- --------- -------- -------- ------------
CT Private Equity Trust PLC (formerly
BMO Private Equity Trust PLC) 212 135 0.3 0.1 0.2
---------- --------- -------- -------- ------------
Pantheon International PLC 139 107 0.2 0.1 0.2
---------- --------- -------- -------- ------------
Apax Global Alpha Limited 133 121 0.2 - 0.1
---------- --------- -------- -------- ------------
Princess Private Equity Holding Limited 123 111 0.2 - 0.1
---------- --------- -------- -------- ------------
Alliance Trust PLC 83 80 0.1 - -
---------- --------- -------- -------- ------------
Total private equity investment trusts 2,507 2,149 4.0
---------- --------- -------- -------- ------------
Real estate investment trust(7)
---------- --------- -------- -------- ------------
Impact Healthcare REIT PLC 106 114 0.2 - -
---------- --------- -------- -------- ------------
Total real estate investment trust 106 114 0.2
---------- --------- -------- -------- ------------
Infrastructure investment trusts(7)
---------- --------- -------- -------- ------------
3i Infrastructure PLC 142 150 0.3 - -
---------- --------- -------- -------- ------------
BBGI Global Infrastructure SA 130 140 0.2 - -
---------- --------- -------- -------- ------------
International Public Partnerships Limited 128 140 0.2 - -
---------- --------- -------- -------- ------------
JLEN Environmental Assets Group Limited 122 150 0.2 - -
---------- --------- -------- -------- ------------
Pantheon Infrastructure PLC 117 140 0.2 - 0.1
---------- --------- -------- -------- ------------
Total infrastructure investment trusts 639 720 1.1
---------- --------- -------- -------- ------------
Open-ended investment companies(7)
---------- --------- -------- -------- ------------
Royal London Short Term Money Market
Fund (Class Y Income) 2,050 2,036 3.4 - 0.1
---------- --------- -------- -------- ------------
Royal London Short Term Fixed Income
Fund (Class Y Income) 1,014 1,009 1.6 - -
---------- --------- -------- -------- ------------
Total open-ended investment companies 3,064 3,045 5.0
---------- --------- -------- -------- ------------
Money market funds(7)
---------- --------- -------- -------- ------------
Aberdeen Standard Liquidity Fund (Lux)
- Sterling Fund (Class K3) 1,011 1,011 1.7 - -
---------- --------- -------- -------- ------------
Goldman Sachs Sterling Government Liquid
Reserves Ireland (Institutional) 1,007 1,007 1.7 0.4 0.8
---------- --------- -------- -------- ------------
Aviva Investors Sterling Government
Liquidity Fund 1,000 1,000 1.6 - -
---------- --------- -------- -------- ------------
BlackRock Institutional Sterling Government
Liquidity Fund (Core Dis) 1,000 1,000 1.6 - -
---------- --------- -------- -------- ------------
Total money market funds 4,018 4,018 6.6
---------- --------- -------- -------- ------------
Total investments 53,514 49,413 88.0
---------- --------- -------- -------- ------------
(1) Other clients of Maven Capital Partners UK LLP.
(2) John Pocock is executive chairman of this company.
(3) This holding reflects the retained minority interest
following the sale of e.fundamentals (Group) Limited to CommerceIQ
in July 2022.
(4) Retained minority interest following the sale of Quorum
Cyber Security Limited in December 2022.
(5) This company delisted from AIM during a previous period.
(6) 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.
(7) Liquidity management portfolio.
Shaded line indicates that the investment was completed pre
November 2015.
Income Statement
For the six months ended 31 August 2023
Six months ended Six months ended Year ended
31 August 2023 31 August 2022 28 February 2023
(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 - (1,220) (1,220) - 60 60 - 2,449 2,449
-------- -------- -------- -------- -------- -------- -------- -------- --------
Income from investments 380 - 380 325 - 325 587 - 587
-------- -------- -------- -------- -------- -------- -------- -------- --------
Other income 106 - 106 11 - 11 91 - 91
-------- -------- -------- -------- -------- -------- -------- -------- --------
Investment management
fees (120) (482) (602) (121) (486) (607) (238) (952) (1,190)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Other expenses (261) - (261) (225) - (225) (545) - (545)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net return on ordinary
activities before
taxation 105 (1,702) (1,597) (10) (426) (436) (105) 1,497 1,392
-------- -------- -------- -------- -------- -------- -------- -------- --------
Tax on ordinary
activities - - - - - - - - -
-------- -------- -------- -------- -------- -------- -------- -------- --------
Return attributable
to Equity Shareholders 105 (1,702) (1,597) (10) (426) (436) (105) 1,497 1,392
-------- -------- -------- -------- -------- -------- -------- -------- --------
Earnings per share
(pence) 0.07 (1.16) (1.09) (0.01) (0.32) (0.33) (0.08) 1.09 1.01
-------- -------- -------- -------- -------- -------- -------- -------- --------
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 Months Ended 31 August 2023
Non-distributable reserves Distributable reserves
Six months ended
Share Capital Capital Capital Special
Share premium redemption reserve reserve distributable Revenue
31 August 2023 capital account reserve unrealised realised reserve reserve Total
(unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- ----------- ----------- --------- -------------- --------
At 28 February
2023 13,400 15,714 569 6,767 (154) 20,785 559 57,640
-------- -------- ----------- ----------- --------- -------------- -------- --------
Net return - - - (1,211) (9) (482) 105 (1,597)
-------- -------- ----------- ----------- --------- -------------- -------- --------
Dividends paid - - - - - (1,713) - (1,713)
-------- -------- ----------- ----------- --------- -------------- -------- --------
Repurchase and
cancellation of
shares (98) - 98 - - (389) - (389)
-------- -------- ----------- ----------- --------- -------------- -------- --------
Net proceeds of
share issue 1,513 5,092 - - - - - 6,605
-------- -------- ----------- ----------- --------- -------------- -------- --------
Net proceeds of
DIS issue(1) 39 123 - - - - - 162
-------- -------- ----------- ----------- --------- -------------- -------- --------
At 31 August 2023 14,854 20,929 667 5,556 (163) 18,201 664 60,708
-------- -------- ----------- ----------- --------- -------------- -------- --------
Non-distributable reserves Distributable reserves
Six months ended
Share Capital Capital Capital Special
Share premium redemption reserve reserve distributable Revenue
31 August 2022 capital account reserve realised realised reserve reserve Total
(unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- ----------- --------- --------- -------------- --------
At 28 February
2022 (restated)(2) 13,532 15,496 370 4,910 (746) 25,777 664 60,003
-------- -------- ----------- --------- --------- -------------- -------- --------
Net return (restated)(2) - - - (1,059) 1,119 (486) (10) (436)
-------- -------- ----------- --------- --------- -------------- -------- --------
Dividends paid - - - - - (1,693) - (1,693)
-------- -------- ----------- --------- --------- -------------- -------- --------
Repurchase and
cancellation of
shares (120) - 120 - - (556) - (556)
-------- -------- ----------- --------- --------- -------------- -------- --------
Net proceeds of
DIS issue(1) 35 118 - - - - - 153
-------- -------- ----------- --------- --------- -------------- -------- --------
At 31 August 2022
(restated)(2) 13,447 15,614 490 3,851 373 23,042 654 57,471
-------- -------- ----------- --------- --------- -------------- -------- --------
Non-distributable reserves Distributable reserves
Year ended
Share Capital Capital Capital Special
Share premium redemption reserve reserve distributable Revenue
28 February 2023 capital account reserve realised realised reserve reserve Total
(audited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- ----------- --------- --------- -------------- --------
At 28 February
2022 13,532 15,496 370 4,910 (746) 25,777 664 60,003
(restated)(2)
-------- -------- ----------- --------- --------- -------------- -------- --------
Net return - - - 1,857 592 (952) (105) 1,392
-------- -------- ----------- --------- --------- -------------- -------- --------
Dividends paid - - - - - (3,155) - (3,155)
-------- -------- ----------- --------- --------- -------------- -------- --------
Repurchase and
cancellation of
shares (199) - 199 - - (885) - (885)
-------- -------- ----------- --------- --------- -------------- -------- --------
Net proceeds of
DIS issue(1) 67 218 - - - - - 285
-------- -------- ----------- --------- --------- -------------- -------- --------
At 28 February
2023 13,400 15,714 569 6,767 (154) 20,785 559 57,640
-------- -------- ----------- --------- --------- -------------- -------- --------
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.
(1) DIS represents the Dividend Investment Scheme as detailed in
the Investment Manager's Review.
(2) The prior year net return split between capital reserve
realised and capital reserve unrealised has been restated to
reflect the element of gains recorded in the prior year that were
not received in cash or cash equivalent, and were not readily
convertible to cash and, therefore, did not qualify as realised
gains for the purposes of distributable reserve calculations. The
net impact is a movement of GBP904,360 from capital reserve
realised to capital reserve unrealised. The adjustment had no
impact on the balances at 28 February 2021.
Balance Sheet
As at 31 August 2023
28 February
2023
31 August 2022
31 August 2023 (unaudited)
(unaudited) (restated) (audited)
GBP'000 GBP'000 GBP'000
Fixed assets
-------------- -------------- -----------
Investments at fair value through
profit or loss 53,514 39,154 47,353
-------------- -------------- -----------
Current assets
-------------- -------------- -----------
Debtors 658 645 699
-------------- -------------- -----------
Cash 6,849 17,877 9,834
-------------- -------------- -----------
7,507 18,522 10,533
-------------- -------------- -----------
Creditors
-------------- -------------- -----------
Amounts falling due within one
year (313) (205) (246)
-------------- -------------- -----------
Net current assets 7,194 18,317 10,287
-------------- -------------- -----------
Net assets 60,708 57,471 57,640
-------------- -------------- -----------
Capital and reserves
-------------- -------------- -----------
Called up share capital 14,854 13,447 13,400
-------------- -------------- -----------
Share premium account 20,929 15,614 15,714
-------------- -------------- -----------
Capital redemption reserve 667 490 569
-------------- -------------- -----------
Capital reserve - unrealised 5,556 3,851 6,767
-------------- -------------- -----------
Capital reserve - realised (163) 373 (154)
-------------- -------------- -----------
Special distributable reserve 18,201 23,042 20,785
-------------- -------------- -----------
Revenue reserve 664 654 559
-------------- -------------- -----------
Net assets attributable to Ordinary
Shareholders 60,708 57,471 57,640
-------------- -------------- -----------
Net asset value per Ordinary Share
(pence) 40.87 42.74 43.01
-------------- -------------- -----------
The Financial Statements of Maven Income and Growth VCT PLC,
registered number 03908220, were approved and authorised for issue
by the Board of Directors on 18 October 2023 and were signed on its
behalf by:
John Pocock
Director
The accompanying Notes are an integral part of the Financial
Statements.
Cash Flow Statement
For the Six Months Ended 31 August 2023
Six months ended Six months ended Year ended
31 August 2023 31 August 2022
(unaudited) (unaudited)
GBP'000 GBP'000 28 February
2023
(audited)
GBP'000
Net cash flows from operating
activities (339) (515) (1,083)
---------------- ---------------- ------------
Cash flows from investing activities
---------------- ---------------- ------------
Purchase of investments (10,213) (5,684) (12,145)
---------------- ---------------- ------------
Sale of investments 2,902 2,834 3,479
---------------- ---------------- ------------
Net cash flows from investing
activities (7,311) (2,850) (8,666)
---------------- ---------------- ------------
Cash flows from financing activities
---------------- ---------------- ------------
Equity dividends paid (1,713) (1,693) (3,155)
---------------- ---------------- ------------
Issue of Ordinary Shares 6,605 - -
---------------- ---------------- ------------
Net proceeds of DIS issue 162 153 285
---------------- ---------------- ------------
Repurchase of Ordinary Shares (389) (556) (885)
---------------- ---------------- ------------
Net cash flows from financing
activities 4,665 (2,096) (3,755)
---------------- ---------------- ------------
Net decrease in cash (2,985) (5,461) (13,504)
---------------- ---------------- ------------
Cash at beginning of period 9,834 23,338 23,338
---------------- ---------------- ------------
Cash at end of period 6,849 17,877 9,834
---------------- ---------------- ------------
The accompanying Notes are an integral part of the Financial
Statements.
Notes to the Financial Statements
For the Six Months Ended 31 August 2023
1 Accounting policies
The financial information for the six months ended 31 August
2023 and the six months ended 31 August 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 28
February 2023, 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 as a
dividend. This reserve is distributable.
3 Return per Ordinary Share
Six months ended
31 August 2023
The returns per share have been based on the following 146,815,611
figures:
Weighted average number of Ordinary Shares GBP105,000
Revenue return (GBP1,702,000)
Capital return
----------------
Total return (GBP1,597,000)
----------------
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
-- the Financial Statements for the six months ended 31 August
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 29 February 2024; and
-- the Interim Management Report includes adequate disclosure of
the information required by DTR 4.2.8R in relation to related party
transactions and any changes therein.
Other information
The NAV per Ordinary Share at 31 August 2023 has been calculated
using the number of Ordinary Shares in issue of 148,542,742.
A full copy of the Interim Report and Financial Statements will
be issued to Shareholders. Copies of this announcement will be
available to the public at the office of Maven Capital Partners UK
LLP, Kintyre House, 205 West George Street, Glasgow G2 2LW and at
the registered office of the Company, 6th Floor, Saddlers House, 44
Gutter Lane, London EC2V 6BR.
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
18 October 2023
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END
IR BSBDGDUBDGXI
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October 18, 2023 10:54 ET (14:54 GMT)
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