MavIncGroVCT4 MavIncGroVCT4. - Half-year Report
02/09/2022 15:30
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RNS Number : 1625Y Maven Income & Growth VCT 4 PLC 02 September 2022
Maven Income and Growth VCT 4 PLC
Interim Results for the Six Months Ended 30 June 2022 (Unaudited)
The Directors announce the unaudited interim results for the six months ended
30 June 2022.
Highlights
• NAV total return at 30 June 2022 of 154.16p per share
• NAV at 30 June 2022 of 68.56p per share
• Interim dividend of 2.00p per share declared
• Offer for Subscription closed raising £16 million, with a
new fund raising to be launched during the Autumn of 2022
• Three new investments added to the portfolio, with a
further two completed after the period end
• Three profitable private company realisations completed
during the period, with a further two completed post the period end
• Partial exit from AIM quoted Ideagen, generating proceeds
of £1.3 million. A full exit was achieved post the period end, generating a
total return of 9.0x cost over the life of the investment
Peter Linthwaite, Chairman and Independent Non-executive Director
It was with deep regret that, on 24 June 2022, the Board announced the passing
of Peter Linthwaite, on 17 June 2022, following a prolonged illness. Peter
became a Director of your Company following its merger with Maven Income and
Growth VCT 2 PLC in November 2018 and served as Chairman from May 2019. During
his tenure, Peter made a significant contribution to the growth and strategic
development of your Company, was instrumental in completing the merger with
Maven Income and Growth VCT 6 PLC in December 2019 and oversaw several new
Offers for Subscription, which have helped to grow the net asset value to over
£89 million.
The Board and the Manager wish to record their gratitude for the considerable
contribution that Peter made to the Company during his period in office and
offer their sincerest condolences to his wife and family.
Overview
Notwithstanding inflationary pressures and the general economic uncertainty,
your Company has continued to make steady progress during the first half of
the financial year. Whilst the majority of the companies within the portfolio
have continued to deliver revenue growth and achieve commercial milestones,
NAV total return at the period end has reduced slightly compared to the
position at the year end. This reflects the volatility within listed markets,
which has impacted the value of your Company's AIM quoted portfolio.
Conversely, across the unlisted portfolio, there are a growing number of
earlier stage companies that are delivering their commercial objectives and
achieving scale, which has resulted in uplifts to certain valuations. There
has also been notable realisation activity, with a number of investee
companies attracting acquisition interest from domestic and international
buyers. Pleasingly this has resulted in three profitable private company
realisations. In addition, AIM quoted Ideagen announced that it had agreed
terms on a recommended all cash offer at a significant premium to the
underlying share price. The Manager was able to take advantage of good market
liquidity and partially realised the holding during the period, with a full
exit completing when the acquisition was approved in early July, generating a
total return for your Company of 9.0x cost over the life of the investment. In
recognition of this exit activity, and the commitment to make regular tax-free
distributions, an interim dividend of 2.00p per share has been declared for
payment to Shareholders in October 2022.
During the reporting period, the impact of the pandemic receded, enabling most
global economies to re-open, with activity largely recovering in response to
pent up demand. However, the invasion of Ukraine has had a destabilising
impact on economic growth, with financial markets and commodity prices
expected to remain volatile. Furthermore, as global prices, particularly
energy costs, continue to rise, high inflation is likely to remain a
persistent feature and the impact of the cost of living crisis is still to
take full effect within the UK. It is, however, worthwhile noting that your
Company maintains a low level of direct exposure to consumer facing sectors
such as hospitality, leisure, retail, and travel, with the investment strategy
primarily focused on defensive areas such as software, cybersecurity, data
analytics and healthcare, where investee companies with exposure to these
sectors have continued to report good growth and are less exposed to
inflationary pressures. It is also important to note that, as a result of the
considered approach taken by Maven in structuring new investments, the level
of external debt across the portfolio is low, which mitigates the risk of
further near term interest rate rises. The Manager will continue to monitor
the impact of the economic situation on your Company's investment strategy and
will maintain a regular dialogue with investee companies to assist with any
specific issues that may arise.
Against this backdrop, your Company has made further strategic progress.
Following the successful fund raising, which closed at the end of May 2022
having raised £16 million, net asset value at the period end increased to
£89 million. The new capital provides your Company with sufficient liquidity
to enable it to continue with its long-term objective of building a large and
sectorally diversified portfolio of private and AIM quoted companies that have
the potential to achieve scale and generate a capital gain on exit. Throughout
the period, the Manager has continued to see good demand for equity investment
from ambitious, growth focused businesses across all of its regional offices.
In addition to the three new private companies added to the portfolio during
the period, there is a strong pipeline of potential investments across a wide
range of sectors, all at various stages of due diligence and legal process,
which should result in a healthy rate of new investment activity during the
second half of the financial year. Maven retains a selective approach to
investment and continues to favour companies that operate in defensive or
counter cyclical sectors, and will generally only invest where meaningful
commercial traction and strong revenue growth can be demonstrated. This is
often measured in terms of contracted annual recurring revenue (ARR), which
provides a degree of visibility on the growth trajectory and, given its
recurring nature, can provide some protection during a period of economic
instability. It is encouraging to report that many of the earlier stage
private companies in the portfolio have continued to deliver sustained revenue
growth during the period under review which, in certain cases, has merited an
uplift to valuations to reflect the progress that has been achieved.
Over recent years, as part of the broader investment strategy, your Company
has been gradually increasing its exposure to AIM, with the objective of
constructing a diversified portfolio that is balanced between earlier stage
private companies, more mature unlisted holdings and AIM quoted companies. The
Manager believes that selective exposure to AIM provides access to a wider
range of growth companies, often with more favourable liquidity
characteristics that can provide exposure to dynamic and complementary sectors
such as new battery technology, renewable energy, biotech or medtech. A
notable development in the reporting period was the announcement by AIM quoted
regulatory and compliance software specialist Ideagen that it had agreed terms
of a recommended all cash offer at a share price of 350p per share, which
represented a 52% premium to the share price prior to the offer. The Manager
was able to sell a significant proportion of the holding at prices in excess
of the offer level, with the balance realised when the transaction completed
formally in July. The exit from this investment has resulted in a total return
of 9.0x cost over the life of the investment and generated proceeds of £1.3
million. Elsewhere in the AIM quoted portfolio, the performance has been more
muted and, whilst most of the holdings have continued to issue reassuring
market announcements, overall performance has been impacted by the general
volatility that has affected global financial markets since the turn of the
year.
Within the private company portfolio, three profitable exits were completed.
In January 2022, 3D photonic specialist Optoscribe was acquired by a US
corporate buyer, generating a total return of 1.85x cost over the life of the
investment. In March, the exit from the holding in energy services specialist
RMEC completed through a sale to an Aberdeen based trade acquirer, generating
a total return of 2.3x cost over the life of the investment. In June, the
residual holding in insurance broker Global Risk Partners (Maven Co-invest
Endeavour) was realised through the sale to a US listed insurance broker. This
exit generated a further return of 1.24x cost, taking the total money multiple
to 3.38x over the life of the investment.
The Manager is encouraged by the level of external interest in the unlisted
portfolio, where a number of companies have received approaches from potential
buyers that recognise the strategic value within these businesses. As the
early stage portfolio matures, the Manager is gaining greater clarity on the
holdings that have the potential to generate future growth in Shareholder
value.
During the period, your Company completed two investments in companies that
have particularly strong environmental, social and governance (ESG)
credentials, and which are demonstrating good growth in new and expanding
markets: Baby care brand Pura has developed a range of eco-friendly baby
nappies and wipes that are completely plastic free and biodegradable, with
accreditation from Allergy UK and the British Skin Foundation; and iPac a
designer and manufacturer of bespoke sustainable plastic packaging for the UK
food sector. ESG considerations are becoming an increasingly important feature
of investment and can also be key for potential future acquirers. Further
details on the Manager's approach to ESG can be found on page 15 of the
Interim Report.
Interim Dividend
In respect of the year ending 31 December 2022, an interim dividend of 2.00p
per Ordinary Share will be paid on 7 October 2022 to Shareholders on the
register at 9 September 2022. Since the Company's launch, and after receipt of
this latest dividend, 87.60p per share will have been distributed in tax free
dividends. It should be noted that the payment of a dividend reduces the NAV
of the Company by the total cost of the distribution.
Dividend Policy
As Shareholders will be aware from recent Annual and Interim Reports,
decisions on distributions take into consideration a number of factors,
including the realisation of capital gains, the adequacy of distributable
reserves, the availability of surplus revenue and the VCT qualifying level,
all of which are kept under close and regular review.
The Board and the Manager recognise the importance of tax-free distributions
to Shareholders and, subject to the considerations outlined above, will seek,
as a guide, to pay an annual dividend that represents 5% of the NAV per share
at the immediately preceding year end.
The Directors would like to remind Shareholders that, as the portfolio
continues to expand and a greater proportion of holdings are invested in
younger companies, the timing of distributions will be more closely linked to
realisation activity, whilst also reflecting the Company's requirement to
maintain its VCT qualifying level. If larger distributions are required as a
consequence of significant exits, this will result in a corresponding
reduction in NAV per share. However, the Board and the Manager consider this
to be a tax efficient means of returning value to Shareholders, whilst
ensuring ongoing compliance with the VCT legislation.
Dividend Investment Scheme (DIS)
Your Company operates a DIS, through which Shareholders can, at any time,
elect to have their dividend payments utilised to subscribe for new Ordinary
Shares issued by the Company under the standing authority requested from
Shareholders at Annual General Meetings. Shares issued under the DIS should
qualify for VCT tax relief applicable for the tax year in which they are
allotted, subject to an individual Shareholder's particular circumstances.
Shareholders can elect to participate in the DIS in respect of future
dividends by completing a DIS mandate. In order for the DIS to apply to the
interim dividend that is due to be paid on 7 October 2022, a completed DIS
mandate must be received by the Registrar (The City Partnership) before 23
September 2022, this being the next dividend election date. The mandate form,
terms & conditions and full details of the scheme (including tax
considerations) are available from the Company's website at:
mavencp.com/migvct4. Election to participate in the DIS can also be made
through the Registrar's online investor hub at: maven-cp.cityhub.uk.com.
If a Shareholder is in any doubt about the merits of participating in the DIS,
or their own tax status, they should seek advice from a suitably qualified
adviser.
Joint Offers for Subscription
On 20 September 2021, your Company, alongside Maven Income and Growth VCT 3
PLC, launched joint Offers for Subscription for new Ordinary Shares, for up to
£20 million in aggregate (£10 million for each company) with a combined
over-allotment facility of up to £20 million in aggregate (£10 million for
each company). Your Company's Offer closed on 27 May 2022 raising a total of
£16 million for the 2021/22 and 2022/23 tax years.
In respect of the 2021/22 tax year, there were three allotments of new
Ordinary Shares. An allotment of 11,772,141 new Ordinary Shares completed on 4
February 2022, with a further allotment of 3,334,456 new Ordinary Shares on 23
March 2022 and a final allotment of 4,184,073 new Ordinary Shares on 5 April
2022. An allotment of 2,282,396 new Ordinary Shares for the 2022/23 tax year
took place on 6 June 2022.
This additional liquidity will enable your Company to continue to expand its
portfolio by investing in ambitious, growth focused businesses that operate
across a broad range of market sectors, and which have the potential to
generate a capital gain on exit. It will also ensure that existing portfolio
companies can continue to be supported through follow- on funding where there
is an ongoing business case that merits further investment. The funds raised
will also allow your Company to maintain its share buy-back policy, whilst
also spreading costs over a wider asset base in line with the objective of
maintaining a competitive total expense ratio for the benefit of all
Shareholders.
On 8 July 2022 it was announced that the Directors have elected to launch a
new Offer for Subscription, which will run alongside Offers by the three other
Maven managed VCTs. Full details of the Offers will be included in the
forthcoming Prospectus, which is expected to be published in Autumn 2022.
Portfolio Developments
Integrated drug discovery service provider BioAscent Discovery continues to
make encouraging progress across all business lines and is maintaining an
impressive growth rate. Since the Maven VCTs first invested in 2018, the
business has averaged a year-on-year growth rate of 120% in its integrated
discovery projects, alongside 40% annualised growth for its more established
compound storage and management services. It was also named top performing
outsourcer for the second year running, and second place overall, in the
Alantra Pharma Fast 50, which ranks the UK's fastest growing privately owned
pharma and pharma service companies. The near term strategic objective is to
expand internationally and positive discussions are progressing with several
prospective clients in North America and Europe. During the pandemic,
BioAscent worked as part of a consortium, led by the University of Glasgow, to
establish a national COVID-19 testing facility for high-throughput clinical
testing. It is pleasing to note that the consortium (Lighthouse Laboratory)
was awarded the Knowledge Exchange/Transfer Initiative of the Year at the
Times Higher Education (THE) Awards 2021.
During the period under review, Bright Network has continued to make good
commercial progress and has achieved a four fold increase in revenue since
your Company first invested. The business has developed a powerful database
that enables the top UK based university undergraduates and recent graduates
to connect with leading employers, and offers a comprehensive range of
services, including providing advice and support to assist members through
their job or internship search process, as well as offering bespoke in-person
networking events. The platform has grown strongly and currently has around
700,000 members, with diversity and inclusion being actively monitored and
promoted. The business works with over 300 leading employers including Amazon,
Bloomberg, Clifford Chance, Dyson, Google and Vodafone, and its platform is
endorsed by the CBI, the Department for Work & Pensions and the Institute
of Student Employers. Over the coming year, Bright Network will focus on
expanding its market position and enhancing its services, with a view to
entering specific overseas territories.
Fintech specialist Delio has made encouraging commercial progress and
continues to grow its customer base and increase ARR. The business designs and
develops digital private asset infrastructures for global financial
institutions, such as angel networks, family offices and wealth managers, with
a growing current client base that includes Barclays, Coutts, Rabobank and the
UK Business Angels Association. Its white label platform provides a secure,
compliant and efficient system for connecting investors and capital with
private market investment opportunities. Delio currently has over £26 billion
of live deals on its platform and has added a number of new clients this year,
which has generated further growth in ARR. In February 2022, Delio secured
significant additional investment from another institutional investor, with
the Maven VCTs also participating. The new funding is being used to accelerate
product innovation and to help establish a business presence in the US, which
is regarded as a key growth market.
During the reporting period, analytical software provider e.fundamentals
continued to make positive commercial progress, delivering further growth in
ARR and expanding its client base. The business provides digital shelf
analytics to major consumer packaged goods brands and helps clients to measure
and optimise their ecommerce performance to ensure that they maximise an
online listing. Over the past two years, e.fundamentals has experienced rapid
growth, consistent with the acceleration in online grocery and household
shopping during the pandemic, which has resulted in a 600% increase in ARR.
e.fundamentals continued to add new clients and established a credible list
that includes well known brands such as Arla, Kellogg's, Mars, PepsiCo, Royal
Canin and Vodafone. During the reporting period, an offer to acquire the
business was received from CommerceIQ, a US private equity backed trade
consolidator. The exit completed shortly after the period end generating a
total return on investment of 2.35x cost, which comprises of an initial cash
return of 1x cost, plus an equity stake in the enlarged business, which has
the potential to deliver a further return to shareholders in the future.
Horizon Ceremonies has made strong operational and strategic progress since
your Company first invested in 2017, and now has a portfolio of three
operational crematoria. Trading at the original site in the Clyde Coast and
Garnock Valley remains strong and ahead of plan. The second crematorium, in
Cannock, Staffordshire, has traded ahead of plan since opening in April 2021,
and the management team is working with local funeral directors and
undertakers to increase awareness of the service provided. The third
crematorium, in the suburbs of Glasgow, opened in mid- December 2021 and is
also trading well. There are two further sites in the near term pipeline. The
planning appeal process at Oxted in Surrey is ongoing and a planning
application at Hooton, near Chester, has been submitted. The medium term
strategic objective remains to build a portfolio of modern, technologically
advanced crematoria that meet the best environmental standards, whilst
offering a compassionate service for families, and to sell the business to a
trade, private equity or infrastructure acquirer when all sites reach
maturity.
Since first investment, HR technology platform provider HiveHR has made
encouraging commercial progress and has achieved good revenue growth through
the rapid addition of new clients. Employee engagement is becoming an
increasingly important component of effective management within any
organisation. HiveHR's cloud-based "software as a service" solution offers a
comprehensive range of tools and resources that help employers to collate and
analyse employee feedback in real time to enable them to better understand
employee concerns or suggestions, and to implement company wide policy updates
or broader change initiatives. HiveHR now has over 170,000 live users, and its
clients include Evri, Financial Services Compensation Scheme, Tarmac and
Travelodge, as well as a number of universities, housing associations,
charities and local authorities. HiveHR is well positioned in a high growth
sector and the focus for the year ahead will be to continue to expand the
business and accelerate growth in ARR.
Marketing technology provider Nano Interactive continues to trade strongly and
is meeting its key performance targets. The business has established a strong
position in the "intent targeting" market, where it uses its proprietary
technology to assess multiple intent signals, such as online search history.
This analysis enables clients to place adverts in real time, targeting
customers that have indicated an interest in a product or service, and helps
them enhance the effectiveness of digital advertising campaigns. Importantly,
Nano's platform achieves this in an identity- free way, without the use of
third party cookies or email addresses, thereby respecting the privacy of
online users. The business has made meaningful progress over the past year and
has an extensive client list that includes household names such as Mars,
McDonalds, Microsoft, Pets at Home and Vodafone. During 2021, Nano also helped
the UK Government to achieve targeted messaging with its COVID-19
communication strategy. Nano is well positioned to achieve further scale and
the near term strategic objective is to develop its presence in the US, which
should help generate further revenue growth.
Over the past year, language analytics software specialist Relative Insight
has maintained an impressive growth rate, increasing ARR and expanding its
client base. The business also secured Series B funding from another
institutional investor, which provides additional capital to accelerate the
growth plan. Relative Insight has experienced strong demand for its AI-powered
linguistics technology platform, which enables clients to analyse any source
of text data and then create content that is designed to appeal to a specific
audience to increase the effectiveness of advertising and marketing campaigns.
The software solution has been adopted by numerous blue chip names such as
Amazon, John Lewis, Nespresso and Sky, alongside large marketing and
advertising agencies. Following the recent fund raising, the business is
capitalised to deliver further growth and has the medium term objective of
establishing a presence in the US.
During the period, Rockar, a developer of a disruptive digital platform for
buying new and used cars, has continued to grow its market presence and build
commercial relationships with global car manufacturers and national dealership
groups that are keen to develop a digital alternative to replace or complement
the traditional showroom model. Following the demerger of the retail division
in May 2021, Rockar is now focused exclusively on developing and expanding its
technology platform and is currently working on projects with manufacturers
such as BMW and Jaguar Land Rover, and is progressing discussions with several
others. Over the past year, there has been a rapid acceleration in the move to
digitalise the automotive market, which has been one of the few remaining
major retail sectors to fully embrace a technological solution. Rockar remains
at the forefront of its sector, in terms of both its technological
capabilities and operational experience.
Whilst the majority of companies within the portfolio have made encouraging
progress in the year to date, there are a small number that have not achieved
their commercial objectives and where the value of the investment has been
written down. Speciality industrial services provider Cat Tech experienced a
particularly challenging operating environment during the pandemic, as
international travel restrictions prevented the completion of scheduled
maintenance programmes in its overseas territories. Whilst Cat Tech provides
highly specialist services, which are a health and safety requirement, the
COVID-19 related travel disruption coupled with deferred shutdowns at key
client sites has resulted in the scheduled programme of works being delayed.
Trading in the current year is expected to be below budget and a provision has
been taken against the value of this investment. In addition, a full write
down has been taken against the value of the holding in Boiler Plan, which
experienced challenging trading during the pandemic and has subsequently
failed to achieve its business plan.
Liquidity Management
The Board and the Manager continue to operate an active liquidity management
policy, with the objective of generating income from cash resources held prior
to investment. The Manager has constructed a focused portfolio of listed
investment trust holdings and will continue to consider any other permitted
investment options that have the potential to meet this objective.
New Investments
During the period, three new VCT qualifying private companies were added to
the portfolio:
• iPac is an established designer and manufacturer of sustainable
thermoformed plastic packaging, which is used by the food and pharmaceutical
sectors. The business is at the leading edge of sustainable manufacturing and
its products are 100% recyclable and use over 85% recycled content. The plant
is powered entirely through renewable sources and less than 2% of its waste
goes into landfill. The VCT funding is being used to develop new product
lines, which are more efficient and produce less waste, and to open a second
manufacturing facility in the North East of England.
• Pura is a baby care brand that specialises in eco-friendly wipes
and nappies. Pura's plant based wipes are 100% plastic free and biodegradable,
as well as being accredited by Allergy UK and the British Skin Foundation,
while the nappies are enhanced with organic cotton and made using green energy
with no production waste to landfill. Since launching in 2020, Pura has
established itself through a direct-to-consumer, subscription based website
model and has gained recognition within its core target market with its
eco-friendly nappies recently awarded Gold in the Made for Mums Awards 2022.
The VCT funding is being used to support the expansion into the business-to-
business market, which is specifically targeted at the UK and US supermarket
sectors. Pura has already made good progress in this area, having secured
contracts with Amazon, Costco and Ocado, with the brand also recently
launching in Asda.
• Zinc Systems is a provider of a software-based solution for
safety, security and critical event management, which currently supports
clients in four key sectors: corporate, government, retail, and security and
facilities management. Zinc's solution, which provides real time support for
incidents such as fire, online fraud or compliance breaches, is fully
integrated with a client's system and configured for mobile access, meaning
that critical information is instantly available and remotely accessible. The
business has achieved good scale and currently has over 30,000 users in more
than 20 countries, with a strong client list that includes B&Q, City of
London Police and the Environment Agency. The VCT funding is being used to
enhance the sales and marketing function and to progress product development.
The following investments have been completed during the reporting period:
Investments Investment
cost
Date Sector £'000
New unlisted
Kanabo GP Limited(1) February 2022 Pharmaceuticals, biotechnology & healthcare 2,986
mypura.com Group Limited (trading as Pura) January 2022 Business services 216
(consumer)
Reed Thermoformed Packaging Limited March 2022 Business services 100
(trading as iPac) (manufacturing)
Zinc Digital Business Solutions Limited June 2022 Software 199
Total new unlisted 3,501
Follow-on unlisted
Boiler Plan (UK) Limited February 2022 Business services 96
e.fundamentals (Group) Limited January 2022 Marketing & 75
advertising technology
HiveHR Limited(2) March & April 2022 Software 17
MirrorWeb Limited May 2022 Software 100
Push Technology Limited May 2022 Data analytics 100
Shortbite Limited (trading as Fixtuur) January 2022 Software 72
Total follow-on unlisted 460
Total investments 3,961
(1) The holding in this company resulted from the sale of The GP Service
(UK) Limited, which was structured as a share for share exchange. In line with
IPEV Guidelines, the valuation of the holding has been adjusted to reflect the
market value of the listed shares as at 30 June 2022.
(2) Follow-on investment completed in two tranches.
At the period end, the portfolio stood at 114 unlisted and quoted investments,
at a total cost of £56.10 million.
Realisations
In January 2022, the holding in 3D photonic circuit specialist Optoscribe was
realised through the sale to a US corporate buyer. Since the VCTs first
invested in 2019, Maven supported the company's growth through several funding
rounds, enabling the business to strengthen strategic partnerships and move
into higher volume production. Optoscribe manufactures high-performance
photonic integrated circuits for use by optical transceiver manufacturers in
the production of glass-based 3D circuits in the telecom, datacom and mobile
network markets. Its technology produces components primarily for the cloud
data centre sector, which has experienced strong growth as consumer demand
increases for access to high quality content. The exit generated a total
return of 1.85x cost over the holding period.
In early March 2022, the residual holding in Global Risk Partners (Maven
Co-invest Endeavour) was provisionally sold to US listed insurance broker
Brown & Brown, with the sale formally completing in June following
regulatory approval. The acquisition enables Brown & Brown to establish
itself in the UK retail insurance sector, where it has not previously had a
large presence. As part of the initial sale of Global Risk Partners to
Searchlight Capital Partners in 2020, an element of the sale consideration was
reinvested into the acquiring vehicle. The subsequent sale to Brown &
Brown resulted in a full exit from this investment and generated a further
return equivalent to 1.24x the original cost, taking the total money multiple
return to 3.38x over the life of the investment.
In March, the holding in energy services specialist RMEC was realised through
the sale to Aberdeen based trade acquirer Centurion Group. Over the holding
period, despite the various challenges within its operating environment, RMEC
delivered a consistently strong performance. The business traded profitably
throughout the pandemic and, during this time, continued to secure blue-chip
clients and agree long term master service agreements with key North Sea
operators and service companies. The exit achieved a total return of 2.3x cost
over the life of the investment, inclusive of all income payments.
During the period, a total of £1.3 million was realised through AIM
disposals. This largely reflects the partial realisation of the holding in
Ideagen, which was acquired by Hg Pooled Management, a leading software and
service investor. The holding was exited in full shortly after the period end,
generating a total return of 9.0x cost over the life of the investment.
The table below gives details of all realisations achieved during the
reporting period:
Sales Cost of shares disposed of Gain/(loss)
£'000 Value at 31 December over 31 December 2021 value
2021 Sales proceeds Realised gain/(loss) £'000
Year first Complete/ £'000 £'000 £'000
invested partial exit
Unlisted
Optoscribe Limited 2018 Complete 726 1,370 1,402 676 32
RMEC Group Limited(1) 2014 Complete 782 1,241 1,144 362 (97)
The GP Service (UK) Limited(2) 2016 Complete 1,597 1,622 2,986 1,389 1,364
Total unlisted 3,105 4,233 5,532 2,427 1,299
Quoted
Angle PLC 2006 Partial 10 19 26 16 7
Ideagen PLC 2015 Partial 125 990 1,302 1,177 312
Total quoted 135 1,009 1,328 1,193 319
Private equity investment trusts(3)
abrdn Private Equity Opportunities Trust PLC (formerly Standard Life Private 2016 Partial 49 83 61 12 (22)
Equity Trust PLC)
Apax Global Alpha Limited 2016 Partial 90 117 102 12 (15)
CT Private Equity Trust PLC (formerly BMO Private Equity Trust PLC) 2016 Partial 49 66 60 11 (6)
HarbourVest Global Private Equity Limited 2018 Partial 66 134 110 44 (24)
HgCapital Trust PLC 2019 Partial 118 218 209 91 (9)
ICG Enterprise Trust PLC 2018 Partial 52 76 60 8 (16)
Pantheon International PLC 2018 Partial 81 130 110 29 (20)
Princess Private Equity Holding Limited 2018 Partial 55 76 60 5 (16)
Total private equity investment trusts 560 900 772 212 (128)
Real estate investment trusts(3)
Regional REIT Limited 2016 Partial 59 50 50 (9) -
Schroder REIT Limited 2016 Partial 206 183 187 (19) 4
Total real estate investment trusts 265 233 237 (28) 4
Infrastructure investment trusts(3)
3i Infrastructure PLC 2017 Complete 118 143 143 25 -
HICL Infrastructure PLC 2017 Complete 105 108 107 2 (1)
International Public Partnerships Limited 2017 Complete 102 104 103 1 (1)
The Renewables Infrastructure Group Limited 2017 Complete 122 123 122 - (1)
Total infrastructure investment trusts 447 478 475 28 (3)
Total sales 4,512 6,853 8,344 3,832 1,491
(1) Proceeds exclude yield and redemption premiums received, which are
disclosed as revenue for financial reporting purposes.
(2) The holding in The GP Service (UK) Limited was acquired by Kanabo GP
Limited, a subsidiary of Kanabo Group PLC, in a transaction that was
structured as a share for share exchange.
(3) Proceeds from the realisation of non-qualifying investment trust holdings
will be used to fund new VCT qualifying investments.
During the period, one private company was struck off the Register of
Companies, resulting in a realised loss of £300,000 (cost £300,000). This
had no effect on the NAV of the Company as a full provision had been made
against the value of the holding in a previous period.
Material Developments Since the Period End
Since 30 June 2022, two new private company holdings have been added to the
portfolio:
• Novatus Advisory is a regulatory advisory business that helps
financial organisations prevent or remedy regulatory or compliance issues
through the provision of advisory services (both project based and long terms
assignments) and also provides bespoke regulatory software. Novatus has a
strong client base that includes blue-chip names such as Artemis and Enstar.
It recently invested in software development to create a transaction reporting
tool to help clients to meet legal reporting requirements and to reconcile
trades, which is viewed as a key growth market. The VCT funding is being used
to progress product development, particularly within the software side of the
business.
• XR Games is a developer of virtual reality (VR) and augmented
reality (AR) games, which creates mobile and console-based games under licence
and as a work-for-hire studio. Through a licence agreement with Sony Pictures,
XR has developed the VR game Angry Birds Movie 2 VR: Under Pressure, which was
released for PlayStation and launched alongside the movie Angry Birds 2. More
recently, XR produced and developed Zombieland VR, a game based on the film
franchise of the same name. XR has become a Microsoft partner, through its
relationship with Sony, and is currently working on a number of projects and
game prototypes. The business has built a strong market reputation and is well
positioned to achieve growth in this expanding sector. The VCT funding is
being used to support the pipeline of game development, enhance the marketing
function and make a number of strategic new hires.
During the period under review, an offer to acquire data analytics specialist
Cardinality was received from a Finnish trade acquirer and the exit generated
a total return of 1.5x cost over an 18 month holding period.
Principal and Emerging Risks and Uncertainties
The principal and emerging risks and uncertainties facing the Company were set
out in full in the Strategic Report contained within the 2021 Annual Report,
and are the risks associated with investment in small and medium sized
unlisted and AIM/AQSE quoted companies which, by their nature, carry a higher
level of risk and are subject to lower liquidity than investments in larger
quoted companies. The valuation of investee companies may be affected by
economic conditions, the credit environment and other risks including
legislation, regulation, adherence to VCT qualifying rules and the
effectiveness of the internal controls operated by the Company and the
Manager. These risks and procedures are reviewed regularly by the Risk
Committee and reported to your Board. The Board has confirmed that all tests,
including the criteria for VCT qualifying status, continue to be monitored and
met.
In March 2020, the COVID-19 pandemic developed from being an emerging risk to
a principal risk that had implications for the Company, the Manager, investee
companies and both the UK and global economies. The Board and the Manager have
sought to identify all of the individual risks associated with the pandemic
that could impact on the Company and the steps that are required to mitigate
them. These have been recorded in separate risk registers that are reviewed on
a regular basis as the situation continues to evolve.
During the period, the invasion of Ukraine by Russia was added to the Risk
Register as an emerging risk, as the Directors were not only aware of the
heightened cyber security risk but were mindful of the impact that a change in
the underlying economic conditions could have on the valuation of investment
companies, with fluctuating interest rates, fuel and energy costs, and the
availability of bank finance, all likely to be impacted during times of
geopolitical uncertainty and volatile markets.
Share Buy-backs
Shareholders will be aware that a primary objective for the Board is to ensure
that the Company retains sufficient liquidity for making investments in line
with its stated policy, and for the continued payment of dividends. However,
the Directors also acknowledge the need to maintain an orderly market in the
Company's shares and have, therefore, delegated authority to the Manager to
buy back shares in the market, for cancellation or to be held in treasury,
subject always to such transactions being in the best interests of
Shareholders.
It is intended that the Company should seek to maintain a share price discount
that is approximately 5% below the latest published NAV per share, subject to
market conditions, availability liquidity and the maintenance of the Company's
VCT qualifying status. During the period under review, 1,256,151 shares were
bought back at a total cost of £865,000.
VCT Regulatory Update
During the period under review, there have been no further amendments to the
rules governing VCTs. The Spring Budget was delivered on 23 March 2022 and did
not propose any changes to VCT legislation.
The Directors and the Manager continue to apply the International Private
Equity and Venture Capital Valuation (IPEV) Guidelines as the central
methodology for all private company valuations. The IPEV Guidelines are the
prevailing framework for fair value information in the private equity and
venture capital industry. In light of the current geopolitical and
macroeconomic uncertainty resulting from the conflict in Ukraine, on 31 March
2022 IPEV reiterated the Special Guidance provided in March 2020 with respect
to assessing the fair value of private company holdings. The Directors and the
Manager continue to follow industry best practice and adhere to the IPEV
Special Guidelines in all private company valuations.
Environmental, Social and Governance (ESG)
As part of a move towards more sustainable investing, the Manager has enhanced
its investment appraisal process, with ESG now embedded as a core component
within the selection criteria. Additionally, a robust framework has been
developed to ensure that ESG considerations are monitored and managed
carefully throughout the period of investment.
As previously noted, your Company recently completed two new investments in
companies that have strong ESG credentials and are achieving growth in
expanding markets. It is also worthwhile noting that your Company's exposure
to the energy services sector has been reducing over recent years. Following
the sale of RMEC, the exposure is now less than 3.8% of the portfolio by
value, with the remaining investee companies actively diversifying away from
traditional oil & gas markets and moving into renewable energy or other
adjacent markets to realign their future growth strategy.
Constitution of the Board
Following the sad news of the passing of Peter Linthwaite, the Board confirmed
on 14 July 2022 that Fraser Gray, who had been serving as Interim Chairman,
had been appointed to the role on a permanent basis with immediate effect.
Also on 14 July 2022, the Board confirmed the appointment of Brian Colquhoun
as Independent Non-executive Director with effect from 1 August 2022. Brian is
a Fellow of the Chartered Bankers Institute and spent more than three decades
at Clydesdale and Yorkshire Bank in the UK, working extensively with smaller
companies and management teams in supporting their growth ambitions. He held a
number of senior roles and has considerable experience of corporate lending,
credit and relationship management in the SME market. His most recent role was
as UK Head of Commercial Banking, where he held national responsibility for
customer growth and satisfaction. Brian is also a non-executive director of
Coventry and Warwickshire Growth Hub Limited.
Brian will chair the Company's Risk Committee and will also serve on the
Audit, Management Engagement and Nomination Committees. He will stand for
election by Shareholders at the 2023 Annual General Meeting.
Outlook
Your Company has continued to make positive progress during the first half of
the financial year and, following the success of the recent fund raising,
currently has sufficient liquidity to enable it to continue to progress its
investment strategy. The primary near term challenge is the impact of
inflationary pressures and the associated risk of constrained economic growth.
Against this background, the Manager will maintain a focused approach in
targeting emerging growth companies operating in sectors and markets that are
likely to be more resilient and less dependent on discretionary consumer
spending.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
2 September 2022
Summary Of Investment Changes
For the Six Months Ended 30 June 2022
Valuation Net investment/ (disinvestment) Appreciation/ (depreciation) Valuation
31 December 2021 30 June 2022
£'000 % £'000 £'000 £'000 %
Unlisted investments
Equities 40,493 49.2 (873) 331 39,951 44.6
Loan stock 15,143 18.4 (618) (26) 14,499 16.2
55,636 67.6 (1,491) 305 54,450 60.8
AIM/AQSE investments*
Equities 10,481 12.7 (1,328) (3,215) 5,938 6.6
Listed investments
Investment trusts 5,385 6.5 (1,484) (809) 3,092 3.4
Total investments 71,502 86.8 (4,303) (3,719) 63,480 70.8
10,810 13.2 15,343 - 26,153 29.2
Other net assets
Net assets 82,312 100.0 11,040 (3,719) 89,633 100.0
*Shares traded on the Alternative Investment Market (AIM) and the Aquis Stock
Exchange (AQSE).
Investment Portfolio Summary
As at 30 June 2022
Valuation Cost % of % of % of equity
Investment £'000 £'000 total equity held by other clients(1)
assets held
Unlisted
BioAscent Discovery Limited 3,906 1,532 4.5 26.1 13.9
Horizon Ceremonies Limited (trading as Horizon Cremation) 3,694 2,463 4.2 12.9 39.7
Bright Network (UK) Limited 2,190 1,383 2.5 11.9 26.0
Relative Insight Limited 2,150 1,000 2.4 5.3 24.0
e.fundamentals (Group) Limited 2,121 1,042 2.4 3.8 7.1
Rockar 2016 Limited (trading as Rockar) 2,089 1,674 2.3 6.9 14.7
WaterBear Education Limited 2,075 987 2.3 20.1 19.1
Delio Limited 2,033 994 2.3 5.2 9.8
Ensco 969 Limited (trading as DPP) 1,889 1,823 2.1 7.4 27.1
Whiterock Group Limited 1,753 1,014 2.0 13.0 17.0
Vodat Communications Group (VCG) Holding Limited 1,717 1,240 1.9 7.1 19.8
(formerly Vodat Communications Group Limited)
QikServe Limited 1,674 1,674 1.9 7.6 8.2
CB Technology Group Limited 1,584 1,097 1.8 19.6 59.3
Contego Solutions Limited (trading as NorthRow) 1,581 1,581 1.8 12.1 20.2
Martel Instruments Holdings Limited 1,509 701 1.7 14.7 29.6
MirrorWeb Limited 1,376 800 1.5 8.3 32.8
Glacier Energy Services Holdings Limited 1,219 1,540 1.4 6.0 21.7
ebb3 Limited 1,186 1,307 1.3 23.3 35.3
Nano Interactive Group Limited 1,126 625 1.3 3.7 11.2
Flow UK Holdings Limited 1,047 1,047 1.2 12.7 22.3
Filtered Technologies Limited 1,034 950 1.2 9.7 15.8
Hublsoft Group Limited 1,000 800 1.1 12.5 18.7
RevLifter Limited 1,000 1,000 1.1 11.9 6.0
HCS Control Systems Group Limited 952 1,201 1.1 10.7 25.8
Cat Tech International Limited 881 1,115 1.0 8.4 21.6
Maven Co-invest Endeavour Limited Partnership(2) 773 4 0.9 12.6 87.4
Precursive Limited 750 750 0.8 6.5 15.1
TC Communications Holdings Limited 734 958 0.8 10.7 19.3
Cardinality Limited 668 448 0.7 4.5 20.5
Growth Capital Ventures Limited 650 639 0.7 11.5 36.0
Maven Capital (Marlow) Limited 650 650 0.7 - 100.0
Kanabo GP Limited(3) 649 2,986 0.7 25.1 42.1
Push Technology Limited 625 625 0.7 2.8 8.5
Horizon Technologies Consultants Limited 506 448 0.6 3.1 14.1
Liftango Group Limited 497 497 0.6 3.3 11.6
HiveHR Limited 476 317 0.5 5.2 33.7
Project Falcon Topco Limited 419 419 0.5 1.2 1.7
(trading as Quorum Cyber)(4)
CODILINK UK Limited (trading as Coniq) 400 400 0.4 1.1 3.8
Draper & Dash Limited (trading as RwHealth) 398 398 0.4 2.0 11.6
FodaBox Limited 398 398 0.4 2.9 8.0
The Algorithm People Limited 300 300 0.3 6.3 10.6
Enpal Limited (trading as Guru Systems) 299 299 0.3 3.2 18.4
Snappy Shopper Limited 298 298 0.3 0.4 1.4
R&M Engineering Group Limited 268 1,087 0.3 13.4 57.2
ISN Solutions Group Limited 216 467 0.2 7.8 47.2
mypura.com Group Limited (trading as Pura) 216 216 0.2 1.0 17.8
Rico Developments Limited (trading as Adimo) 200 200 0.2 1.5 8.2
GradTouch Limited 200 200 0.2 2.3 37.7
Atterley.com Holdings Limited 199 199 0.2 2.5 15.2
CYSIAM Limited 199 199 0.2 3.5 16.5
Zinc Digital Business Solutions Limited 199 199 0.2 3.0 18.8
Shortbite Limited (trading as Fixtuur) 153 397 0.2 1.1 30.5
Honcho Markets Limited 129 129 0.1 2.4 22.3
Reed Thermoformed Packaging Limited 100 100 0.1 0.5 11.8
(trading as iPac)
Intilery.com Limited 75 75 0.1 0.6 58.6
Other unlisted investments 20 2,294 -
Total unlisted 54,450 47,186 60.8
Quoted
GENinCode PLC 682 600 0.8 3.9 7.0
Intelligent Ultrasound Group PLC 533 400 0.6 1.4 0.4
Verici Dx PLC 482 438 0.5 1.5 -
MaxCyte Inc 451 207 0.5 0.1 0.1
Ideagen PLC 293 29 0.3 0.2 0.6
SkinBioTherapeutics PLC 259 208 0.3 0.8 -
Creo Medical Group PLC 251 497 0.3 0.2 -
Oxford Metrics PLC 245 80 0.3 0.2 -
Pelatro PLC 244 496 0.3 2.0 0.7
KRM22 PLC 238 220 0.3 1.6 -
Avacta Group PLC 212 33 0.2 0.1 0.1
C4X Discovery Holdings PLC 212 137 0.2 0.4 0.6
TPXimpact Holdings PLC 207 107 0.2 0.2 -
(formerly The Panoply Holdings PLC)
Diaceutics PLC 190 161 0.2 0.3 0.3
Destiny Pharma PLC 185 300 0.2 0.6 0.8
One Media IP Group PLC 178 186 0.2 1.7 -
Angle PLC 131 82 0.1 0.1 -
Crossword Cybersecurity PLC 110 122 0.1 0.5 2.1
ReNeuron Group PLC 109 277 0.1 0.7 1.4
Polarean Imaging PLC 95 129 0.1 0.1 0.6
AFC Energy PLC 73 57 0.1 - -
Feedback PLC 73 121 0.1 0.5 1.3
Access Intelligence PLC 67 35 0.1 0.1 0.4
Spectral MD Holdings PLC 57 99 0.1 0.1 0.1
Faron Pharmaceuticals PLC 55 70 0.1 0.1 0.1
Eden Research PLC 52 83 0.1 0.4 1.0
Oncimmune Holdings PLC 47 100 0.1 0.1 0.5
Hardide PLC 47 122 0.1 0.4 0.2
Diurnal Group PLC 34 99 - 0.2 0.3
RUA Life Sciences PLC 30 100 - 0.4 1.3
Vianet Group PLC 29 49 - 0.1 1.4
Trackwise Designs PLC 24 42 - 0.2 0.3
Seeen PLC 18 75 - 0.3 1.4
Osirium Technologies PLC 16 100 - 1.0 6.0
Other quoted investments 9 451 -
Total quoted 5,938 6,312 6.6
Private equity investment trusts
HgCapital Trust PLC 484 309 0.5 0.1 0.1
Princess Private Equity Holding Limited 405 336 0.5 0.1 0.1
CT Private Equity Trust PLC 370 293 0.4 0.2 0.3
(formerly BMO Private Equity Trust PLC)
Apax Global Alpha Limited 358 294 0.4 0.1 0.1
HarbourVest Global Private Equity Limited 272 184 0.3 - 0.1
ICG Enterprise Trust PLC 249 199 0.3 - 0.1
abrdn Private Equity Opportunities Trust PLC (formerly Standard Life Private 210 141 0.2 - 0.1
Equity Trust PLC)
Pantheon International PLC 116 98 0.1 - 0.1
Total private equity investment trusts 2,464 1,854 2.7
Real estate investment trusts
Target Healthcare REIT PLC 189 199 0.2 0.1 -
Regional REIT Limited 148 205 0.2 0.1 0.1
Custodian REIT PLC 120 140 0.1 - -
Total real estate investment trusts 457 544 0.5
Fixed income investment trusts
TwentyFour Income Fund Limited 162 196 0.2 0.1 -
Alcentra European Floating Rate Income Fund Limited 9 11 - 0.1 -
Total fixed income investment trusts 171 207 0.2
Total investments 63,480 56,103 70.8
(1) Other clients of Maven Capital Partners UK LLP.
(2) Managed by Penta Capital LLP, of which Steven Scott, a Director of the
Company, is a partner.
(3) The holding in this investment resulted from the sale of The GP Service
(UK) Limited to Kanabo GP Limited in a share for share exchange. In line with
IPEV Guidelines, the valuation of the holding has been adjusted to reflect the
market value as at 30 June 2022.
(4) Retained minority interest from the sale of Quorum Cyber Security Limited.
Shaded line indicates that the investment was completed pre 2015.
Income Statement
For the six month ended 30 June 2022
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on investments - (3,719) (3,719) - 7,517 7,517 - 12,143 12,143
Income from investments 713 - 713 1,286 - 1,286 2,004 - 2,004
Other income 5 - 5 1 - 1 1 - 1
Investment management fees (211) (842) (1,053) (500) (2,001) (2,501) (865) (3,460) (4,325)
Other expenses (218) - (218) (264) - (264) (431) - (431)
Net return on ordinary activities before taxation 289 (4,561) (4,272) 523 5,516 6,039 709 8,683 9,392
Tax on ordinary activities (18) 18 - (43) 43 - (93) 93 -
Return attributable to Equity Shareholders 271 (4,543) (4,272) 480 5,559 6,039 616 8,776 9,392
Earnings per share (pence) 0.22 (3.73) (3.51) 0.43 4.98 5.41 0.56 7.91 8.47
All gains and losses are recognised in the Income Statement.
All items in the above statement are derived from continuing operations. The
Company has only one class of business and one reportable segment, the results
of which are set out in the Income Statement and Balance Sheet. The Company
derives its income from investments made in shares, securities and bank
deposits.
There are no potentially dilutive capital instruments in issue and, therefore,
no diluted earnings per share figures are relevant. The basic and diluted
earnings per share are, therefore, identical.
The accompanying Notes are an integral part of the Financial Statements.
Statement of Changes in Equity
For the Six Months Ended 30 June 2022
Six months ended 30 June 2022 (unaudited)
Non-distributable reserves Distributable reserves
Share Share Capital Capital Capital Special Revenue Total
capital premium redemption reserve reserve distributable reserve £'000
£'000 account reserve unrealised realised reserve £'000
£'000 £'000 £'000 £'000 £'000
At 31 December 2021 10,992 23,244 502 14,583 2,517 29,367 1,107 82,312
Net return - - - (7,206) 3,487 (824) 271 (4,272)
Dividends paid - - - - - (3,687) (35) (3,722)
Repurchase and cancellation of shares (126) - 126 - - (865) - (865)
Net proceeds of share issue 2,157 13,692 - - - - - 15,849
Net proceeds of DIS issue 49 282 - - - - - 331
At 30 June 2022 13,072 37,218 628 7,377 6,004 23,991 1,343 89,633
Six months ended 30 June 2021 (unaudited)
Non-distributable reserves Distributable reserves
Share Share Capital Capital Capital Special Revenue Total
capital premium redemption reserve Reserve distributable reserve £'000
£'000 account reserve unrealised realised reserve £'000
£'000 £'000 £'000 £'000 £'000
At 31 December 2020 11,200 22,905 236 3,732 1,225 38,533 943 78,774
Net return - - - 8,930 (1,413) (1,958) 480 6,039
Dividends paid - - - - - (2,079) (151) (2,230)
Repurchase and cancellation of shares (129) - 129 - - (857) - (857)
Net proceeds of DIS issue 29 179 - - - - - 208
At 30 June 2021 11,100 23,084 365 12,662 (188) 33,639 1,272 81,934
Year ended 31 December 2021 (audited)
Non-distributable reserves Distributable reserves Total
£'000
Share Share Capital Capital Capital Special Revenue
capital premium redemption reserve reserve distributable reserve
£'000 account reserve unrealised realised reserve £'000
£'000 £'000 £'000 £'000 £'000
At 31 December 2020 11,200 22,905 236 3,732 1,225 38,533 943 78,774
Net return - - - 10,851 1,292 (3,367) 616 9,392
Dividends paid - - - - - (3,984) (452) (4,436)
Repurchase and cancellation of shares (266) - 266 - - (1,815) - (1,815)
Net proceeds of DIS issue 58 339 - - - - - 397
At 31 December 2021 10,992 23,244 502 14,583 2,517 29,367 1,107 82,312
The accompanying Notes are an integral part of the Financial Statements.
Balance Sheet
As at 30 June 2022
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Fixed assets
Investments at fair value through profit or loss 63,480 71,290 71,502
Current assets
Debtors 1,322 1,075 1,195
Cash 24,968 11,266 10,542
26,290 12,341 11,737
Creditors
Amounts falling due within one year (137) (1,697) (927)
Net current assets 26,153 10,644 10,810
Net assets 89,633 81,934 82,312
Capital and reserves
Called up share capital 13,072 11,100 10,992
Share premium account 37,218 23,084 23,244
Capital redemption reserve 628 365 502
Capital reserve - unrealised 7,377 12,662 14,583
Capital reserve - realised 6,004 (188) 2,517
Special distributable reserve 23,991 33,639 29,367
Revenue reserve 1,343 1,272 1,107
Net assets attributable to Ordinary Shareholders 89,633 81,934 82,312
Net asset value per Ordinary Share (pence) 68.56 73.81 74.88
The Financial Statements of Maven Income and Growth VCT 4 PLC, registered
number SC272568, were approved by the Board and were signed on its behalf by:
Fraser Gray
Director
2 September 2022
The accompanying Notes are an integral part of the Financial Statements.
Cash Flow Statement
For the Six Months Ended 30 June 2022
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Net cash flows from operating activities (1,424) (932) (3,100)
Cash flows from investing activities
Purchase of investments (1,010) (2,517) (5,030)
Sale of investments 5,267 2,742 9,674
Net cash flows from investing activities 4,257 225 4,644
Cash flows from financing activities
Equity dividends paid (3,722) (2,230) (4,436)
Net Proceeds of DIS issue 331 208 397
Issue of Ordinary Shares 15,849 - -
Repurchase of Ordinary Shares (865) (857) (1,815)
Net cash flows from financing activities 11,593 (2,879) (5,854)
Net increase/(decrease) in cash 14,426 (3,586) (4,310)
Cash at beginning of period 10,542 14,852 14,852
Cash at end of period 24,968 11,266 10,542
The accompanying Notes are an integral part of the Financial Statements.
Notes to the Financial Statements
For the Six Months Ended 30 June 2022
1. Accounting policies
The financial information for the six months ended 30 June 2022 and the six
months ended 30 June 2021 comprises non-statutory accounts within the meaning
of S435 of the Companies Act 2006. The financial information contained in this
report has been prepared on the basis of the accounting policies set out in
the Annual Report and Financial Statements for the year ended 31 December
2021, which have been filed at Companies House and contained an Auditor's
Report that was not qualified and did not contain a statement under S498(2) or
S498(3) of the Companies Act 2006.
2. Reserves
Share premium account
The share premium account represents the premium above nominal value received
by the Company on issuing shares net of issue costs. This reserve is
non-distributable.
Capital redemption reserve
The nominal value of shares repurchased and cancelled is represented in the
capital redemption reserve. This reserve is non-distributable.
Capital reserve - unrealised
Increases and decreases in the fair value of investments are recognised in the
Income Statement and are then transferred to the capital reserve unrealised
account. This reserve is non-distributable.
Capital reserve - realised
Gains or losses on investments realised in the year that have been recognised
in the Income Statement are transferred to the capital reserve realised
account on disposal. Furthermore, any prior unrealised gains or losses on such
investments are transferred from the capital reserve unrealised account to the
capital reserve realised account on disposal. This reserve is distributable.
Special distributable reserve
The total cost to the Company of the repurchase and cancellation of shares is
represented in the special distributable reserve account. The special
distributable reserve also represents capital dividends, capital investment
management fees and the tax effect of capital items. This reserve is
distributable.
Revenue reserve
The revenue reserve represents accumulated profits retained by the Company
that have not been distributed to Shareholders. This reserve is distributable.
3. Return per Ordinary Share
Six months ended 30 June 2022
The returns per share have been based on the following figures:
Weighted average number of Ordinary Shares 121,786,068
Revenue return £271,000
Capital return (£4,543,000)
Total return (£4,272,000)
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
• the Financial Statements for the six months ended 30 June 2022
have been prepared in accordance with FRS 102, the Financial Reporting
Standard applicable in the UK and Republic of Ireland;
• the Interim Management Report includes a fair review of the
information required by DTR 4.2.7R in relation to the indication of important
events during the first six months, and of the principal risks and
uncertainties facing the Company during the second six months, of the year
ending 31 December 2022; and
• the Interim Management Report includes adequate disclosure of
the information required by DTR 4.2.8R in relation to related party
transactions and any changes therein.
Other information
A full copy of the Interim Report and Financial Statements will be printed and
issued to Shareholders. Copies of this announcement will be available to the
public at the registered office of the Company at Kintyre House, 205 West
George Street, Glasgow G2 2LW; at the office of the Manager, Maven Capital
Partners UK LLP, 5th Floor, 1-2 Royal Exchange Buildings, London EC3V 3LF;
and, in due course, on the Company's website at mavencp.com/migvct4
(http://www.mavencp.com/migvct4) .
Neither the content of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
By order of the Board
Maven Capital Partners UK LLP
Secretary
2 September 2022
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