TIDMMIG6
RNS Number : 1604L
Maven Income and Growth VCT 6 PLC
14 July 2017
Maven Income and Growth VCT 6 PLC
The Directors announce the final results for the year ended 31
March 2017.
Highlights for the year
-- NAV total return of 61.36p per share (2016: 61.81p) at the year end
-- NAV at year end of 58.51p per share (2016: 59.21p), after
payment of a dividend of 0.25p per share during the year
-- Offer for Subscription raised GBP8 million of new capital
-- Net assets increased to over GBP23 million
-- Six new VCT qualifying private company holdings added to the
portfolio, with a further four completed after the year end
-- Large pipeline of VCT qualifying investments, with a number in advanced process
-- Realisation of Nenplas for a total return of 5.0 times cost
-- Proposed final dividend of 0.25p per share (2016: 0.25p)
-- Total expense ratio reduced to 2.98% from 6.82% for the year to 31 March 2013(1)
(1) The total expense ratio has been calculated using the total
annual expenses and the average net asset value of the Company over
the respective financial years.
Chairman's Statement
On behalf of your Board I am pleased to present the Annual
Report for the first time as Chairman. The year to 31 March 2017
has seen very significant progress achieved by your Company
following the success of the most recent Offer for Subscription,
which was fully subscribed and raised GBP8 million of new capital.
As a result of the expansion of the asset base, your Company now
has a strong liquidity position and is well resourced to undertake
a strategy to increase the size and range of the investee company
portfolio holdings. The Board is pleased to note that the Manager
has actively commenced this approach, completing six new
investments in a diverse range of VCT qualifying private companies
during the year, with a further four completed shortly after the
year end. In addition, a notable realisation was achieved during
the year with the sale of Nenplas, which delivered a 5.0 times
money multiple return over the ten year holding period.
The period under review has been transformational for your
Company following the success of the latest Offer for Subscription,
which was launched on 9 December 2016, and closed early raising the
full GBP8 million (including an over-allotment facility of GBP2
million). Since 2014, the asset base of your Company has been
significantly enhanced by three fundraisings. These have aligned it
more closely in size with the other Maven VCTs and positions it for
growth in Shareholder value by increasing its investment capacity
and ability to commit higher amounts to new VCT qualifying
investments, whilst further reducing the total expense ratio for
the benefit of all Shareholders. As a result of this expansion,
your Company has entered a growth phase and, as it evolves and the
rate of investment increases as the new capital is deployed, there
may be a short-term delay until the benefits feed through to
investor returns. It is important to note that the Company's
increasing asset base is supported by the strength of the existing
portfolio, the majority of which is invested in established
businesses, completed prior to the rule changes and continues to
deliver growth and generate investment income.
Shareholders will be aware that the reporting period has also
been one of transition for the UK VCT industry, following the
enactment of revised legislation in November 2015. The new rules
have introduced a number of restrictions on the types of
transactions and companies in which VCTs can invest, requiring the
Manager to focus on the provision of development capital or
investing in businesses with growth finance requirements, rather
than management buy-outs or acquisition based transactions that
have traditionally offered a more predictable return profile. The
investment team at Maven is highly experienced at sourcing and
executing transactions that meet the revised criteria. In addition
to the new holdings already mentioned above, the Directors are
encouraged by the large and diverse pipeline of prospective new
investments at various stages of due diligence, and anticipate
seeing a number of these transactions complete during the first
half of the current financial year.
The Board believes that considerable progress has been achieved
by your Company during the reporting period, despite the challenges
presented by the implementation of the revised VCT legislation and
the economic uncertainty resulting from the outcome of the European
Union (EU) referendum held in June 2016. Whilst the full impact of
the UK's decision to leave the EU may become clearer as formal
negotiations progress, the Board and the Manager have conducted a
review of the portfolio and, at present, believe that the overall
effect is likely to be limited. The businesses in which your
Company has invested will focus on maintaining or adapting their
growth strategies as appropriate. A number of exporters have
already experienced a short-term benefit from the devaluation of
Sterling against several major currencies that has occurred since
the referendum.
Against this backdrop, performance has generally been good
across the investee portfolio, as can be seen from the detailed
analysis included in the Investment Manager's Review in the Annual
Report. The continuing growth experienced by a number of our
private company holdings has enabled the valuations of these assets
to be increased to reflect positive trading results. The Board also
remains conscious of the impact that the low oil price is having on
companies with exposure to the oil & gas sector. Whilst direct
remedial actions have been taken by portfolio companies with
exposure to this sector, the external environment remains
challenging and, notwithstanding some early indications of
recovery, conditions are not forecast to show a sustained
improvement until at least late 2017. Consequently, the valuations
of a small number of these investments have been conservatively
reduced. In addition, it is disappointing to report that the
valuation of the holding in Traceall Global has been reduced in
response to consistently poor trading, the impact of which is
reflected in the modest dip in NAV at the year end.
As previously noted, the holding in Nenplas was realised in full
during the period achieving a total return of 5.0 times cost over
the life of the investment. The Board is aware that discussions are
in progress regarding potential exits from a number of the other
more mature portfolio assets, although there can be no certainty
that these will lead to profitable realisations.
The Directors are pleased to note that, Maven received industry
recognition for its performance during the year when it was named
Private Equity House of the Year, for the second year running, at
the 2016 High Potential Business Awards (previously the M&A
Awards). This category celebrates outstanding growth businesses and
their financial backers, recognising private equity managers that
have displayed the keenest judgement and opportunism in completing
acquisitions or exit transactions. Maven was also named Private
Equity Manager of the Year at the ACQ Global Awards which celebrate
achievement and innovation across the fund management industry.
Dividends
The Board recommends that a final capital dividend of 0.25p per
Ordinary Share, be paid on 8 September 2017 to Shareholders on the
register at 11 August 2017. The effect of paying the proposed final
dividend would be to reduce the NAV of the Company by the total
cost of the distribution.
After receipt of the proposed final dividend, Shareholders will
have received 3.10p per share in tax-free dividends over the past
five financial years. The Board considers it important that
Shareholders are aware that the move to invest in development
capital and growth finance opportunities, as required by the
revised VCT legislation, is likely to result in less predictable
capital gains and income flows. Although the Company has
distributable reserves that will help to support its distribution
policy, it is possible that the quantum and timing of future
dividend payments could be subject to increased fluctuation.
Fund Raising
In the prior year, the Company launched an Offer for
Subscription in New Ordinary Shares which closed on 30 June 2016
raising a total of GBP12.87 million, before expenses, for the
2015/16 and 2016/17 tax years.
On 23 September 2016 the Directors announced their intention to
launch a further GBP6 million top-up Offer for the 2016/17 and
2017/18 tax years, with an over- allotment facility for up to GBP2
million. This Offer was launched on 9 December 2016 and closed
early on 7 February 2017 being fully subscribed including the over-
allotment facility. On 16 February 2017 the Company issued and
allotted Ordinary Shares in respect of the 2016/17 tax year, with a
further allotment for the 2017/18 tax year made on 6 April 2017.
The proceeds from the Offer will provide additional liquidity to
support a higher deal allocation in investments in VCT qualifying
companies, buy back shares for cancellation and enable the Company
to spread its cost over a larger asset base, thereby reducing the
total expense ratio for the benefit of all Shareholders. Relevant
details regarding the New Ordinary Shares issued under the Offer
can be found in Note 12 to the Financial Statements in the Annual
Report.
Share Buy-backs
Shareholders should be aware that the Board's primary objective
is for the Company to retain sufficient liquid assets to make
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
delegated authority to the Manager to buy back shares in the market
for cancellation or to be held in treasury, subject always to such
transactions being in the best interests of Shareholders.
It is intended that, subject to market conditions, available
liquidity and the maintenance of the Company's VCT status, shares
will normally be bought back at prices representing a discount of
between 10% and 20% to the prevailing NAV per share.
Regulatory Developments
The Finance Act (No. 2) 2015 was enacted in November 2015 and
introduced a number of changes to the legislation governing VCTs.
The new rules are designed to bring the UK VCT scheme into line
with EU State Aid Rules for smaller company investment and have
introduced a number of restrictions on the types of qualifying
transactions and companies in which VCTs can invest. Unlike
previous changes in legislation, the new rules apply to all funds
raised by a VCT, including those raised prior to November 2015.
The new rules specifically prohibit participation in management
buy-outs or acquisitions, and limit the ability to support older
companies unless specific criteria are met.
The emphasis is, therefore, on providing development capital to
younger and earlier stage companies, or supporting more established
businesses which can demonstrate growth strategies that satisfy
specific provisions under the revised qualification criteria. In a
further amendment, the March 2016 Budget Statement included changes
to the rules governing non-qualifying investments by VCTs. With
effect from 6 April 2016, VCTs can only make qualifying investments
and certain limited non-qualifying investments for liquidity
purposes, with other types of new non-qualifying investments now
prohibited.
The revised legislation has imposed additional diligence and
administrative requirements on the investment process in order to
ensure that all aspects of the potential investment and transaction
structure remain compliant with the new rules.
The Manager continues to pursue a cautious approach and works
closely with a specialist VCT adviser, engaged by the Company, to
assist in interpreting the revised legislation and advising on the
VCT tax clearance process with HM Revenue & Customs (HMRC),
with advance assurance secured prior to any new investment
completing. The Board welcomed the announcement in the Chancellor's
2016 Autumn Statement that, in response to the increased volume of
applications submitted and the resultant delays experienced in
obtaining clearance for proposed investments, a consultation was
launched to consider the options for streamlining the HMRC advance
assurance service.
The 2016 Autumn Statement also highlighted that the Government
will no longer be initiating a review into the potential to allow
replacement capital as part of certain new VCT transactions, but
suggested that this may be reviewed at some point in the future.
Whilst the Directors and the Manager were disappointed by this
announcement, as the ability to include replacement capital was
viewed as an important capability under the new rules, it does not
impact the Company's investment strategy which has already adapted
to meet the requirements of the new rules. The Chancellor's 2017
Spring Statement did not introduce any further amendments to the
legislation.
Board of Directors
As indicated in the 2016 Interim Report, Jonathan Carr stood
down as Director and Chairman at the conclusion of the Annual
General Meeting (AGM) on 31 August 2016, succeeded by myself in the
role of Chairman following my re-election as a Director. Fraser
Gray was appointed as a Director on 1 July 2016 and was formally
elected by Shareholders at the 2016 AGM.
On behalf of the Board and the Manager, I would like to take
this opportunity to thank Jonathan for the valued contribution he
has made since the launch of your Company and wish him every
success for the future.
The Future
The strategy remains to build a broadly based portfolio of
private company holdings, diversified by geography and sector,
which meet the revised VCT qualification criteria. Whilst the
introduction of the new VCT rules has placed restrictions on the
types of companies and transactions in which your Company can
invest, the Board believes that the Manager has adapted nimbly to
the changes, as demonstrated by the wide range of VCT qualifying
investments completed since the new rules were enacted. This
position is strengthened by the recent extension of Maven's office
network through the opening of four new regional offices, which
will assist in sourcing attractive VCT qualifying investment
opportunities from across the UK. Your Board takes comfort from the
large pipeline of prospective investments in due diligence at the
date of this report and, consequently, believes that the rate of
investment during the remainder of the current year will continue
to be strong. The success of the recent Offers for Subscription
means that your Company is fully financed so as to take advantage
of these new opportunities, and the Directors look forward to a
year of further progress as the Manager continues to build the
investee company portfolio.
Brian May
Chairman
14 July 2017
Business Report
This Business Report is intended to provide an overview of the
strategy and business model of the Company as well as the key
measures used by the Directors in overseeing its management. The
Company is a venture capital trust which invests in accordance with
the investment objective set out below.
Investment Objective
The Company aims to achieve long-term capital appreciation and
generate maintainable levels of income for Shareholders.
Business Model and Investment Policy
Under an investment policy approved by the Directors, the
Company intends to achieve its objective by:
-- investing the majority of its funds in a diversified
portfolio of shares and securities in smaller, unquoted UK
companies and AIM/ISDX quoted companies which meet the criteria for
VCT qualifying investments and have strong growth potential;
-- investing no more than GBP1 million in any company in one
year and no more than 15% of the Company's assets by cost in one
business at any time; and
-- borrowing up to 15% of net asset value, if required and only
on a selective basis, in pursuit of its investment strategy.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company are as
follows:
Investment Risk
Many of the Company's investments are in small and medium sized
unlisted and AIM/ISDX quoted companies, some of which may be in the
early stages of their development and, by their nature, entail a
higher level of risk and lower liquidity than investments in large
quoted companies. The Board aims to limit the risk attaching to the
investment portfolio as a whole by ensuring that a structured
selection, monitoring and realisation process is applied. The Board
reviews the investment portfolio with the Manager on a regular
basis.
The Company manages and minimises investment risk by:
-- diversifying across a large number of companies;
-- diversifying across a range of economic sectors;
-- investing selectively, and predominantly in businesses with established profitability;
-- actively and closely monitoring the progress of investee companies;
-- seeking to appoint a non-executive director to the board of
each private investee company, provided from the Manager's
investment management team or from its pool of experienced
independent directors;
-- co-investing with other funds run by the Manager in larger
deals, which tend to carry less risk;
-- not investing in hostile public to private transactions; and
-- retaining the services of a manager that can provide the
resources required to achieve the investment objective and meet the
criteria stated above.
An explanation of certain risks and how they are managed is
contained in Note 16 to the Financial Statements in the Annual
Report.
Financial and Liquidity Risk
As most of the investments require a medium to long term
commitment and are relatively illiquid, the Company retains a
portion of the portfolio in cash or cash equivalents in order to
finance any new unquoted investment opportunities. The Company has
only limited direct exposure to currency risk and does not enter
into any derivative transactions.
Economic Risk
The valuation of investment companies may be affected by
underlying economic conditions such as fluctuating interest rates
and the availability of bank finance.
Credit Risk
The Company may hold financial instruments and cash deposits and
is dependent on counterparties discharging their agreed
responsibilities. The Directors consider the creditworthiness of
the counterparties to such instruments and seek to ensure that
there is no undue concentration of exposure to any one party.
Internal Control Risk
The Board reviews regularly the system of internal controls,
both financial and non-financial, operated by the Company and the
Manager. These include controls designed to ensure that the
Company's assets are safeguarded and that all records are complete
and accurate.
VCT Qualifying Status Risk
The Company operates in a complex regulatory environment and
faces a number of related risks, including:
-- becoming subject to capital gains tax on the sale of its
investments as a result of a breach of Section 274 of the Income
Tax Act 2007;
-- loss of VCT status and consequent loss of tax reliefs
available to Shareholders as a result of a breach of the VCT
Regulations;
-- loss of VCT status and reputational damage as a result of a
serious breach of other regulations such as the FCA Listing Rules
and the Companies Act 2006; and
-- increased investment restrictions resulting from the EU State
Aid Rules enacted through the Finance Act (No. 2) 2015.
Legislative and Regulatory Risk
In order to maintain its approval as a VCT, the Company is
required to comply with current VCT legislation in the UK as well
as the EU State Aid Rules. Changes in either could have an adverse
impact on Shareholder investment returns whilst maintaining the
Company's VCT status. The Board and the Manager continue to make
representations where appropriate, either directly or through
relevant industry bodies such as the British Private Equity &
Venture Capital Association (BVCA).
The Company has retained Philip Hare & Associates LLP as VCT
advisers.
Breaches of other regulations including, but not limited to, the
Companies Act 2006, the FCA Listing Rules, the FCA Disclosure and
Transparency Rules or the Alternative Investment Fund Managers
Directive (AIFMD), could lead to a number of detrimental outcomes
and reputational damage.
The AIFMD, which regulates the management of alternative
investment funds, including VCTs, introduced a new authorisation
and supervisory regime for all investment companies in the EU. The
Company is approved by the FCA as a self-managed small registered
UK AIFM under the AIFMD.
The Company is also required to comply with tax legislation
under the Foreign Account Tax Compliance Act and the Common
Reporting Standard. The Company has appointed Capita Asset Services
to act on its behalf to report annually to HMRC and ensure
compliance with this legislation.
Political Risk
In a referendum held on 23 June 2016, the UK voted to leave the
EU (a process informally known as Brexit). The formal process of
implementing this decision exists in Article 50 of the Lisbon
Treaty, which was invoked on 29 March 2017. The political, economic
and legal consequences of the referendum vote are not yet known. It
is possible that investments in the UK may be more subjective to
value, may be more difficult to assess for suitability of risk,
harder to buy or sell, or may be subject to greater or more
frequent rises and falls in value. In the longer term, there is
likely to be a period of uncertainty as the UK seeks to negotiate
its exit from the EU. The UK's laws and regulations concerning
funds may, in future, diverge from those of the EU and this may
lead to changes in the operation of the Company, the rights of
investors, or the territories in which the shares of the Company
may be promoted and sold.
An explanation of certain economic and financial risks and how
they are managed is also contained in Note 16 to the Financial
Statements in the Annual Report.
Statement of Compliance with Investment Policy
The Company is adhering to its stated investment policy and
managing the risks arising from it. This can be seen in various
tables and charts throughout the Annual Report, and from
information provided in the Chairman's Statement and the Investment
Manager's Review. A review of the Company's business, its position
as at 31 March 2017 and its performance during the year then ended
is included in the Chairman's Statement, which also includes an
overview of the Company's business model and strategy.
The management of the investment portfolio has been delegated to
Maven, which also provides company secretarial, administrative and
financial management services to the Company. The Board is
satisfied with the depth and breadth of the Manager's resources and
its network of offices, which supply new deals and enable it to
monitor the geographically widespread portfolio of companies
effectively.
The Investment Portfolio Summary in the Annual Report discloses
the investments in the portfolio and the degree of co-investment
with other clients of the Manager. The tabular analysis of the
unlisted and quoted portfolio in the Annual Report shows that the
portfolio is diversified across a variety of sectors and deal
types. The level of VCT qualifying investment is monitored by the
Manager on a daily basis and reported to the Risk Committee
quarterly.
Key Performance Indicators
At each Board Meeting the Directors consider a number of
financial performance measures to assess the Company's success in
achieving its objectives, and these also enable Shareholders and
investors to gain an understanding of its business. The key
performance indicators are as follows:
-- NAV total return;
-- dividend history;
-- share price discount to NAV;
-- investment income; and
-- operational expenses.
The NAV total return is a measure of the current NAV per share
and dividends paid to date. The dividend history measure shows how
much of that Shareholder value has been returned to original
investors in the form of dividends. A historical record of these
measures is shown in the Financial Highlights in the Annual Report
and the profile of the portfolio is reflected in the Summary of
Investment Changes in the Annual Report. The Board reviews the
Company's investment income and operational expenses on a quarterly
basis as the Directors consider that both of these elements are
important components in the generation of Shareholder returns.
In addition, the Directors consider economic, regulatory and
political trends and features that may impact on the Company's
future development and performance.
There is no meaningful venture capital trust index against which
to compare the financial performance of the Company but, for
reporting to the Board and Shareholders, the Manager uses
comparisons with appropriate indices and the Company's peer group.
The Directors also consider non-financial performance measures such
as the flow of investment proposals and the Company's ranking
within the VCT sector by independent analysts.
Valuation Process
Investments held by Maven Income and Growth VCT 6 PLC in
unquoted companies are valued in accordance with the International
Private Equity and Venture Capital Valuation Guidelines.
Investments quoted or traded on a recognised stock exchange are
valued at their bid prices.
Share Buy-backs
The Board will seek the necessary Shareholder authority to
conduct a share buy-back programme under appropriate
circumstances.
Employee, Environmental and Human Rights Policy
The Company has no direct employee or environmental
responsibilities, nor is it responsible for the emission of
greenhouse gases. However, the Directors will consider economic,
regulatory and political trends and features that may impact on the
Company's future development and performance. The Board's principal
responsibility to Shareholders is to ensure that the investment
portfolio is managed and invested properly. The management of the
portfolio is undertaken by the Manager through members of its
portfolio management team. The Manager engages with the Company's
underlying investee companies in relation to their corporate
governance practices and in developing their policies on social,
community and environmental matters and further information may be
found in the Statement of Corporate Governance. In light of the
nature of the Company's business, there are no relevant human
rights issues and, therefore, the Company does not have a human
rights policy.
Independent Auditor
The Company's Independent Auditor is required to report if there
are any material inconsistencies between the content of the
Strategic Report and the Financial Statements. The Independent
Auditor's Report can be found in the Annual Report.
Future Strategy
The Board and Manager intend to maintain the policies set out
above for the year ending 31 March 2018 as it is believed that
these are in the best interests of Shareholders.
Approval
The Business Report, and the Strategic Report as a whole, was
approved by the Board of Directors and signed on its behalf by:
Brian May
Director
14 July 2017
Income Statement
For the Year Ended 31 March 2017
Year ended 31 Year ended 31
March 2017 March 2016
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- -------- -------- -------- -------- -------- --------
Gains on investments - 241 241 - 274 274
Income from investments 142 - 142 211 - 211
Other income 7 - 7 - - -
Investment management
fees (75) (300) (375) (29) (114) (143)
Other expenses (181) - (181) (101) - (101)
---------------------------- -------- -------- -------- -------- -------- --------
Net return on ordinary
activities before taxation (107) (59) (166) 81 160 241
Tax on ordinary activities - - - (12) 12 -
---------------------------- -------- -------- -------- -------- -------- --------
Return attributable to
Equity Shareholders (107) (59) (166) 69 172 241
---------------------------- -------- -------- -------- -------- -------- --------
Earnings per share (pence) (0.37) (0.21) (0.58) 0.84 2.10 2.94
---------------------------- -------- -------- -------- -------- -------- --------
All gains and losses are recognised in the Income Statement.
All items in the above statement are derived from continuing
operations. The Company has only one class of business and one
reportable segment, the results of which are set out in the Income
Statement and Balance Sheet. The Company derives its income from
investments made in shares, securities and bank deposits.
There are no potentially dilutive capital instruments in issue
and therefore no diluted returns per share figures are relevant.
The basic and diluted earnings per share are therefore
identical.
The total column of this statement is the Profit and Loss
Account of the Company.
Statement of Changes in Equity
For the Year Ended 31 March 2017
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 March 2016 2,078 6,784 (1,189) 309 2,257 2,919 (857) 12,301
Net return - - (57) (2) - - (107) (166)
Dividends paid - - - - - - (71) (71)
Repurchase and
cancellation
of shares (40) - - - (211) 40 - (211)
Share issue 1,965 9,618 - - - - - 11,583
Cancellation
of share premium
account - (10,538) - - 10,538 - - -
Cancellation
of capital redemption
reserve - - - - 2,919 (2,919) - -
Costs relating
to cancellation
of share premium
account and capital
redemption reserve - - - - (15) - - (15)
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 March 2017 4,003 5,864 (1,246) 307 15,488 40 (1,035) 23,421
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
For the year ended 31 March 2016
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 March 2015 3,617 53 (1,327) 381 2,389 - (926) 4,187
Net return - - 244 (72) - - 69 241
Dividends paid - - (106) - - - - (106)
Repurchase and
cancellation
of shares (130) - - - (132) 130 - (132)
Share capital
reconstruction (2,789) - - - - 2,789 - -
Share issue 1,380 6,731 - - - - - 8,111
----------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 March 2016 2,078 6,784 (1,189) 309 2,257 2,919 (857) 12,301
----------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
The accompanying Notes are an integral part of the Financial
Statements.
Balance Sheet
As at 31 March 2017
31 March 2017 31 March 2016
GBP'000 GBP'000
------------------------------- ------------- -------------
Fixed assets
Investments at fair value
through profit or loss 5,478 11,801
Current assets
Debtors 60 43
Cash 18,129 507
------------------------------- ------------- -------------
18,189 550
Creditors
Amounts falling due within
one year 246 50
------------------------------- ------------- -------------
Net current assets 17,943 500
------------------------------- ------------- -------------
Net assets 23,421 12,301
------------------------------- ------------- -------------
Capital and reserves
Called up share capital 4,003 2,078
Share premium account 5,864 6,784
Capital reserve - realised (1,246) (1,189)
Capital reserve - unrealised 307 309
Special distributable reserve 15,488 2,257
Capital redemption reserve 40 2,919
Revenue reserve (1,035) (857)
------------------------------- ------------- -------------
Net assets attributable
to Ordinary Shareholders 23,421 12,301
------------------------------- ------------- -------------
Net asset value per Ordinary
Share (pence) 58.51 59.21
------------------------------- ------------- -------------
The Financial Statements of Maven Income and Growth VCT 6 PLC,
registered number 3870187, were approved by the Board and were
signed on its behalf by:
Brian May
Director
14 July 2017
The accompanying Notes are an integral part of the Financial
Statements.
Cash Flow Statement
For the Year Ended 31 March 2017
Year ended 31 March 2017 Year ended 31
GBP'000 March 2016
GBP'000
------------------------------- ------------------------ -------------
Net cash flow from operating
activities (574) (230)
Cash flows from investing
activities
Investment income received 125 222
Deposit interest received 7 -
Purchase of investments (2,069) (11,035)
Sale of investments 8,847 2,884
------------------------------- ------------------------ -------------
Net cash flows from
investing activities 6,910 (7,929)
------------------------------- ------------------------ -------------
Cash flows from financing
activities
Equity dividends paid (71) (106)
Issue of Ordinary Shares 11,583 8,111
Repurchase of Ordinary
Shares (211) (132)
Costs relating to cancellation
of
share premium account (15) -
------------------------------- ------------------------ -------------
Net cash flows from
financing activities 11,286 7,873
------------------------------- ------------------------ -------------
Increase/(decrease)
in cash 17,622 (286)
------------------------------- ------------------------ -------------
Cash at beginning of
year 507 793
Cash at end of year 18,129 507
------------------------------- ------------------------ -------------
The accompanying Notes are an integral part of the Financial
Statements.
Notes to the Financial Statements
For the Year Ended 31 March 2017
1. Accounting Policies
(a) Basis of preparation
The Financial Statements have been prepared under FRS 102, The
Financial Reporting Standard applicable in the UK and Republic of
Ireland, and in accordance with the Statement of Recommended
Practice for Investment Trust Companies and Venture Capital Trusts
(the SORP) issued by the Association of Investment Companies (AIC)
in November 2014.
(b) Income
Dividends receivable on equity shares and unit trusts are
treated as revenue for the period on an ex-dividend basis. Where no
ex-dividend date is available dividends receivable on or before the
year end are treated as revenue for the period. Provision is made
for any dividends not expected to be received. The fixed returns on
debt securities and non-equity shares are recognised on a time
apportionment basis so as to reflect the effective interest rate on
the debt securities and shares. Provision is made for any fixed
income not expected to be received. Interest receivable from cash
and short term deposits and interest payable are accrued to the end
of the year.
(c) Expenses
All expenses are accounted for on an accruals basis and charged
to the Income Statement. Expenses are charged through the revenue
account except as follows:
-- expenses which are incidental to the acquisition and disposal
of an investment are charged to capital; and
-- expenses are charged to realised capital reserves where a
connection with the maintenance or enhancement of the value of the
investments can be demonstrated. In this respect the investment
management fee has been allocated 25% to revenue and 75% to
realised capital reserves to reflect the Company's investment
policy and prospective income and capital growth.
(d) Taxation
Deferred taxation is recognised in respect of all timing
differences that have originated but not reversed at the balance
sheet date, where transactions or events that result in an
obligation to pay more tax in the future or right to pay less tax
in the future have occurred at the balance sheet date. This is
subject to deferred tax assets only being recognised if it is
considered more likely than not that there will be suitable profits
from which the future reversal of the underlying timing differences
can be deducted. Timing differences are differences arising between
the Company's taxable profits and its results as stated in the
Financial Statements which are capable of reversal in one or more
subsequent periods.
Deferred tax is measured on a non-discounted basis at the tax
rates that are expected to apply in the periods in which timing
differences are expected to reverse, based on tax rates and laws
enacted or substantively enacted at the balance sheet date.
The tax effect of different items of income/gain and
expenditure/loss is allocated between capital reserves and revenue
account on the same basis as the particular item to which it
relates using the Company's effective rate of tax for the
period.
UK corporation tax is provided at amounts expected to be
paid/recovered using the tax rates and laws that have been enacted
or substantively enacted at the balance sheet date.
(e) Investments
In valuing unlisted investments the Directors follow the
criteria set out below. These procedures comply with the revised
International Private Equity and Venture Capital Valuation
Guidelines (IPEVCV) for the valuation of private equity and venture
capital investments. Investments are recognised at their trade date
and are designated by the Directors as fair value through profit
and loss. At subsequent reporting dates, investments are valued at
fair value, which represents the Directors' view of the amount for
which an asset could be exchanged between knowledgeable and willing
parties in an arm's length transaction. This does not assume that
the underlying business is saleable at the reporting date or that
its current shareholders have an intention to sell their holding in
the near future.
A financial asset or liability is generally derecognised when
the contract that gives rise to it is settled, sold, cancelled or
expires.
1. For investments completed prior to the reporting date, fair
value is determined using the Price of Recent Investment Method,
except that adjustments are made when there has been a material
change in the trading circumstances of the company or a substantial
movement in the relevant sector of the stock market.
2. Whenever practical, recent investments will be valued by
reference to a material arm's length transaction or a quoted
price.
3. Mature companies are valued by applying a multiple to their
prospective earnings to determine the enterprise value of the
company.
3.1 To obtain a valuation of the total ordinary share capital
held by management and the institutional investors, the value of
third party debt, institutional loan stock, debentures and
preference share capital is deducted from the enterprise value. The
effect of any performance related mechanisms is taken into account
when determining the value of the ordinary share capital.
3.2 Preference shares, debentures and loan stock are valued
using the Price of Recent Investment Method. When a redemption
premium has accrued, this will only be valued if there is a
reasonable prospect of it being paid. Preference shares which carry
a right to convert into ordinary share capital are valued at the
higher of the Price of Recent Investment Method basis and the
price/earnings basis.
4. In the absence of evidence of a deterioration, or strong
defensible evidence of an increase in value, the fair value is
determined to be that reported at the previous balance sheet
date.
5. All unlisted investments are valued individually by the
portfolio management team of Maven Capital Partners UK LLP. The
resultant valuations are subject to detailed scrutiny and approval
by the Directors of the Company.
6. In accordance with normal market practice, investments listed
on the Alternative Investment Market or a recognised stock exchange
are valued at their bid market price.
(f) Fair value measurement
Fair value is defined as the price that the Company would
receive upon selling an investment in a timely transaction to an
independent buyer in the principal or the most advantageous market
of the investment. A three-tier hierarchy has been established to
maximise the use of observable market data and minimise the use of
unobservable inputs and to establish classification of fair value
measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset
or liability, including assumptions about risk, for example, the
risk inherent in a particular valuation technique used to measure
fair value including such a pricing model and/or the risk inherent
in the inputs to the valuation technique. Inputs may be observable
or unobservable.
Observable inputs are inputs that reflect the assumptions market
participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the
reporting entity.
Unobservable inputs are inputs that reflect the reporting
entity's own assumptions about the assumptions market participants
would use in pricing the asset or liability developed based on best
information available in the circumstances
The three-tier hierarchy of inputs is summarised in the three
broad levels listed below.
-- Level 1 - the unadjusted quoted price in an active market for
identical assets or liabilities that the entity can access at the
measurement date.
-- Level 2 - inputs other than quoted prices included within
Level 1 that are observable (ie developed using market data) for
the asset or liability, either directly or indirectly.
-- Level 3 - inputs are unobservable (ie for which market data
is unavailable) for the asset or liability.
(g) Gains and losses on investments
When the Company sells or revalues its investments during the
year, any gains or losses arising are credited/charged to the
Income Statement.
(h) Significant judgements and estimates
Disclosure is required of judgements and estimates made by the
Board and the Manager in applying the accounting policies that have
a significant effect on the financial statements. The area
involving the highest degree of judgement and estimates is the
valuation of unlisted investments recognised in Note 8 to the
Financial Statements and explained in note 1 (e) above.
Reserves
Share premium account
The share premium account represents the premium above nominal
value received by the Company on issuing shares net of issue
costs.
Capital reserves
Gains or losses on investments realised in the year that have
been recognised in the Income Statement are transferred to the
capital reserve realised account on disposal. Furthermore, any
prior unrealised gains or losses on such investments are
transferred from the capital reserve unrealised account to the
capital reserve realised account on disposal.
Increases and decreases in the fair value of investments are
recognised in the Income Statement and are then transferred to the
capital reserve unrealised account. The capital reserve realised
account also represents capital dividends, capital investment
management fees and the tax effect of capital items.
Special distributable reserve
The total cost to the Company of the repurchase and cancellation
of shares is represented in the special distributable reserve
account.
Capital redemption reserve
The nominal value of shares repurchased and cancelled is
represented in the capital redemption reserve.
Revenue reserve
The revenue reserve represents accumulated profits retained by
the Company that have not been distributed to Shareholders as a
dividend.
Return per Ordinary Share
Year ended 31 Year ended 31
March 2017 March 2016
The returns per share
have been based on the
following figures:
Weighted average number
of Ordinary Shares 28,546,015 8,175,723
Revenue return (GBP107,000) GBP69,000
Capital return (GBP59,000) GBP172,000
------------------------ ------------- -------------
Total return (GBP166,000) GBP241,000
------------------------ ------------- -------------
Net Asset Value per Ordinary Share
Net asset value per Ordinary Share as at 31 March 2017 has been
calculated using the number of Ordinary Shares in issue at that
date of 40,032,061 (2016: 20,775,100).
Directors' Responsibility Statement
The Directors believe that, to the best of their knowledge:
-- the Financial Statements have been prepared in accordance
with the applicable accounting standards and give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company as at 31 March 2017 and for the year to that
date;
-- the Directors' Report includes a fair review of the
development and performance of the Company, together with a
description of the principal risks and uncertainties that it faces;
and
-- the Annual Report and Financial Statements taken as a whole
is fair, balanced and understandable and provides the information
necessary for Shareholders to assess the Company's position and
performance, business model and strategy.
Other information
The Annual General Meeting of the Company will be held on 30
August 2017, commencing at 10.00 am at 5th Floor, 1-2 Royal
Exchange Buildings, London, EC3V 3LF.
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; at the registered office of the
Company, 1-2 Royal Exchange Buildings, London EC3V 3LF; and on the
Company's website at: www.mavencp.com/migvct6.
The financial information contained within this Announcement
does not constitute the Company's statutory Financial Statements as
defined in the Companies Act 2006. The statutory Financial
Statements for the year ended 31 March 2016 have been delivered to
the Registrar of Companies and contained an audit report which was
unqualified and did not constitute statements under S498(2) or
S498(3) of the Companies Act 2006.
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.
The Annual Report will be submitted to the National Storage
Mechanism and, in due course, will be available for inspection at
www.morningstar.co.uk/uk/NSM.
By order of the Board
Maven Capital Partners UK LLP
Secretary
14 July 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR RIMITMBTBBBR
(END) Dow Jones Newswires
July 14, 2017 10:25 ET (14:25 GMT)
Maven Income And Growth ... (LSE:MIG6)
Historical Stock Chart
From Apr 2024 to May 2024
Maven Income And Growth ... (LSE:MIG6)
Historical Stock Chart
From May 2023 to May 2024