Maven Inc&Grwth 5 - Half-year Report
25/07/2022 07:00
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RNS Number : 5686T Maven Income and Growth VCT 5 PLC 25 July 2022
Maven Income and Growth VCT 5 PLC
Interim Results for the Six Months Ended 31 May 2022 (Unaudited)
The Directors announce the Chairman's Statement, Investment Manager's Interim
Review and the unaudited Financial Statements for the six months ended 31 May
2022.
Highlights
• NAV total return at 31 May 2022 of 84.63p per share
• NAV at 31 May 2022 of 37.98p per share, after payment of final
dividend of 1.00p per share in May 2022
• Enhanced interim dividend of 3.00p per share declared
• Partial exit from Ideagen, the largest holding in the AIM
portfolio, generating proceeds of £4.7m. The full exit completed post the
period end generating a total return of 15x cost over the life of the
investment
• Offer for Subscription to be launched in Autumn 2022
Overview
On behalf of your Board, I am pleased to present the results for the six
months to 31 May 2022. Despite the volatile market conditions, your Company's
NAV total return has remained stable. This reflects good performance across
the unlisted portfolio, where most portfolio companies have delivered revenue
growth and achieved commercial milestones. In certain cases, this has resulted
in uplifts to valuations. The overall performance of the AIM quoted portfolio
has been affected by the volatility within listed markets. Notwithstanding the
wider market issues, a notable development in the period was the announcement
by portfolio company Ideagen that it had agreed terms on a recommended all
cash offer at a significant premium to the underlying share price. The Manager
was subsequently able to take advantage of market liquidity and partially
realised the holding, with a full exit completing in July. Following this
material realisation, and in line with the commitment to make regular
Shareholder distributions, the Directors are pleased to declare an enhanced
interim dividend of 3.00p per share for payment to Shareholders in August
2022.
During the reporting period, the impact of the pandemic has gradually receded,
enabling most global economies to re-open, with activity initially 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. The Board and the Manager will continue to monitor
the impact of the economic situation on your Company's investment strategy.
Given the challenging backdrop, it is worthwhile noting that your Company
maintains a low level of direct exposure to consumer facing sectors such as
travel, retail, leisure and hospitality. Over recent years, the Manager's
investment strategy has consistently focused on defensive sectors such as
software, cybersecurity, data analytics and healthcare, which are sectors that
have continued to grow and are generally not market sensitive. The Board
believes that this approach to portfolio composition should provide a degree
of insulation against a reduction in discretionary consumer spending and
inflationary pressures. It is also important to note that, as a result of the
careful approach taken by Maven in structuring new investments, the level of
external debt across the portfolio is generally low, which mitigates the risk
of further near term interest rate rises. The Manager maintains regular
dialogue with investee companies and will assist with any specific issues that
may arise.
Notwithstanding the challenges within the wider economy, your Board is
encouraged by the progress that has been achieved across the portfolio during
the period under review. Five new private and two AIM quoted companies were
added to the portfolio, and the Board is aware of the strong pipeline of
potential opportunities that are currently under review, which should help to
maintain a healthy rate of new investment activity during the second half of
the financial year. Throughout the reporting period, the portfolio of unlisted
companies has delivered a good overall performance, with a number of the
earlier stage holdings accelerating revenue growth and consolidating their
commercial position, which has resulted in uplifts to certain valuations.
Whilst the performance of AIM, as a whole, has been affected by adverse market
conditions, your Company's holdings have been less severely impacted, with the
AIM quoted portfolio reporting an 11.8% reduction in value during the period,
compared to a 19.8% reduction in the FTSE AIM All-Share Index over the same
time period.
Consistent with the recovery in M&A activity, a number of profitable
realisations also completed. In addition to the exit from Quorum Cyber, which
represents the most significant realisation to date from the early stage
portfolio, your Company also realised a significant proportion of its holding
in AIM quoted Ideagen. Following the announcement of the recommended cash
offer, the Manager was able to take advantage of good liquidity in the market
and partially realised your Company's holding at a share price in excess of
the proposed offer level. It is pleasing to report that the complete exit from
Ideagen concluded in July 2022 and generated a total return of 15x cost over
the life of the investment.
Following this significant realisation, your Company's exposure to AIM is
materially reduced and now represents 12% of NAV, compared to 20% at the year
end. The Directors have previously stated their intention to seek, where
possible, to reduce the size of certain, larger, AIM quoted holdings and the
exit from Ideagen is consistent with this strategic objective. The Directors
continue to believe that a blended portfolio of private and AIM quoted
companies provides the optimal structure for long term growth in Shareholder
value. However, given the current market uncertainty and the subdued activity
levels within AIM, it is likely that the majority of new investments, in the
near term, will be in private companies, where the Manager continues to see
good deal flow.
Further details of the key portfolio developments, including new investments
and realisations, can be found in the Investment Manager's Review.
Interim Dividend
In recognition of the recent strong exit activity, an enhanced interim
dividend of 3.00p per Ordinary Share, in respect of the year ending 30
November 2022, will be paid on 26 August 2022 to Shareholders on the register
as at 29 July 2022. Since the Company's launch, and after receipt of this
latest dividend, 49.65p per share will have been distributed in tax-free
dividends. Shareholders are reminded that the payment of a dividend reduces
the NAV of the Company by the total cost of the distribution.
Dividend Policy
Decisions on distributions take into consideration a number of factors,
including the realisation of capital gains, the adequacy of distributable
reserves, the availability of surplus revenue and the VCT qualifying level,
all of which are kept under close and regular review.
The Board and the Manager recognise the importance of tax-free distributions
to Shareholders and, subject to the considerations outlined above, will seek,
as a guide, to pay an annual dividend that represents 5% of the NAV per share
at the immediately preceding year end.
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, including the interim dividend, which is due to be paid on 26
August 2022, by completing a DIS mandate, which must be received by the
Registrar (City Partnership) before 12 August 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/migvct5. Election to participate in the DIS
can also be made through the online investor hub:
maven-cp.cityhub.uk.com/login.
If a Shareholder is in any doubt about the merits of participating in the DIS,
or their own tax status, they should seek advice from a suitably qualified
adviser.
Fund Raising
Further to the announcement released on 8 July 2022, the Directors have
elected to launch joint Offers for Subscription this Autumn, running alongside
the three other Maven managed VCTs. Full details of the Offers will be
included in the forthcoming Prospectus, which will be published in the coming
months.
The Directors are confident that Maven's regional office network has the
capacity and capability to continue to source attractive investment
opportunities in VCT qualifying companies, and that the additional liquidity
provided by the proposed fundraising will facilitate further expansion and
development of the portfolio in line with the investment strategy.
Furthermore, the funds raised will allow your Company to maintain its share
buy-back policy, whilst also spreading costs over a wider asset base in line
with the objective of maintaining a competitive total expense ratio for the
benefit of all Shareholders.
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.
The Directors carried out a further review of the Company's share buy back
policy and, following that review, it is intended that the Company will seek
to buy back shares with a view to maintaining a share price discount that is
approximately 5% below the latest published NAV per share, adjusted where
appropriate for any dividends in respect of which the Company's shares are
trading ex-dividend, and subject to market conditions, availability liquidity
and the maintenance of the Company's VCT qualifying status.
During the period under review, 1,162,685 shares were bought back at a total
cost of £427,000.
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 Audit and
Risk Committees 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 associated with the Russian aggression, but
were mindful of the impact that a change in the underlying economic conditions
could have on the valuation of investment companies. Your Board recognise that
interest rates, fuel and energy costs, and the availability of bank finance,
can all be expected to be impacted during times of geopolitical uncertainty
and volatile markets.
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)
The Board is aware of the work that the Manager is doing in relation to ESG
and, during the period, the investment appraisal process was enhanced, 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.
It is encouraging to note that your Company has recently completed a number of
new investments in companies that have strong ESG credentials and are
achieving growth in expanding markets. These include Liftango, which has
developed a technology platform to improve the efficiency of on-demand
transport such as corporate buses and carpooling, in order to reduce carbon
footprint and congestion; Pura, which has developed a range of eco-friendly
baby nappies and wipes that are completely plastic free and biodegradable, as
well as being accredited by 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.
It is also worthwhile noting that your Company's exposure to the energy
services sector has been reducing over recent years. Following the recent
realisation of RMEC, the exposure is now 2% of the portfolio by value, with
most 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.
Outlook
Notwithstanding the uncertain economic outlook, the Directors believe that
your Company is well positioned to continue to deliver its core long term
investment objective. Following the resilient performance achieved during the
first half of the financial year, the focus for the remainder of the year will
be to progress the investment strategy by further expanding and developing the
portfolio of investee companies. The Manager will also pursue exits, where
appropriate, in order to generate further growth in Shareholder value and
support a programme of regular tax-free distributions.
Graham Miller
Chairman
22 July 2022
Investment Manager's Interim Review
Highlights
• Five new private investments added to the portfolio, with a
further three completed after the period end
• Two new AIM quoted companies added to the portfolio
• Partial realisation of Ideagen, with the exit completing post
the period end, generating a total return of 15x cost over the life of the
investment
• Five exits completed from the private equity portfolio,
including the realisation of Quorum Cyber for a total return of 6.5x cost over
the life of the investment
Overview
Notwithstanding the current economic uncertainty, your Company has made
further progress during the first half of the financial year. Across the
unlisted portfolio there are a growing number of earlier stage companies that
are achieving their commercial objectives and building scale, which has
resulted in uplifts to certain valuations. This has also been a very busy
period for realisations, with several investee companies attracting
acquisition interest from domestic and international buyers. In addition to
the realisation of portfolio company Quorum Cyber, four profitable private
company realisations also completed. Furthermore, AIM quoted Ideagen announced
that it had agreed terms for a recommended all cash offer. This announcement
enabled the Manager to take advantage of market liquidity and sell the
majority of the holding at a premium to the recommended offer level, with the
residual holding realised in July. The exit generated a total return of 15x
cost over the life of the investment.
Throughout the period, the Manager has continued to see good levels of demand
for equity investment from ambitious, growth focused businesses across all of
its regional offices. In addition to the five new private company holdings
added to the portfolio during the period, there is a strong pipeline of
potential investments, across a wide range of sectors, a number of which are
expected to complete in the near term. 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 have continued to deliver sustained revenue growth during
the period under review which, in certain cases, has merited an uplift to the
valuation, to reflect the progress that has been achieved.
During the period, two new AIM quoted investments were also added to the
portfolio. Over recent years, as part of the broader investment strategy, your
Company has been selectively adding new AIM investments to the portfolio with
the objective of constructing a diversified portfolio that is balanced between
earlier stage 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 biotech, medtech, new battery technology or renewable energy.
Whilst most of the AIM portfolio holdings have continued to issue positive
market announcements during the reporting period, the overall performance of
this portfolio has been impacted by the general volatility that has affected
financial markets since the turn of the year.
It is, however, pleasing to report on the realisation of the holding in AIM
quoted Ideagen which, following a number of expressions of interest, announced
that it had agreed terms of a recommended cash offer at a share price of 350p
per share, which represented a 52% premium to the share price prior to the
offer. Your Company has been invested in Ideagen for a number of years and,
during that time, the holding has grown significantly in value. Throughout the
period of investment, Ideagen has consistently delivered its strategic
objectives, notably through an acquisition led growth plan. The exit from
Ideagen, which completed in July 2022, resulted in a total return of 15x cost
over the life of the investment.
Within the unlisted portfolio five profitable exits also completed, including
the most significant realisation to date from the early stage portfolio with
the sale of Quorum Cyber, which achieved a 6.5x money multiple return,
inclusive of a retained minority holding. 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 drive future growth in Shareholder value. Conversely, there are a small
number of cases where the Manager has elected to seek an exit earlier than
anticipated as the necessary scale was unlikely to be achieved.
Portfolio Developments
Private Company Holdings
Integrated drug discovery service provider BioAscent Discovery continues to
make encouraging progress across all business lines and is maintaining the
impressive growth rate achieved during the previous period. 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 recently 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 is trading ahead of plan. The business, which utilises
a powerful technology database to provide a membership network that enables UK
based university undergraduates and recent graduates to connect with leading
employers, has built a strong market position. Bright Network offers a
comprehensive range of services including providing advice and support to
assist members through their job or internship search process, as well as
bespoke in-person networking events. The platform currently has over 600,000
members, with diversity and inclusion being actively monitored and promoted.
The business works with over 300 partner firms including Amazon, Bloomberg,
Clifford Chance, Dyson, Google and Vodafone, and the platform is endorsed by
organisations such as 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, which is
based in Cardiff, 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. The
business currently has over £26 billion of live deals on its platform, and
has added further new clients, 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 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 has
continued to make positive commercial progress, delivering further growth in
ARR and expanding its client base. The business, which provides digital shelf
analytics to major consumer packaged goods brands, 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 continues to add to its client base and has established a
credible list that includes well-known brands such as Arla, Kellogg's, Mars,
PepsiCo, Royal Canin and Vodafone.
Horizon Ceremonies has delivered 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 good
commercial progress and has achieved significant growth in ARR through the
rapid addition of new clients. Employee engagement is becoming an increasingly
important component of effective management within any organisation. HiveHR's
cloud-base SaaS 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 ahead of
plan and is delivering against all key performance metrics. 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 and, thereby, respects the
privacy of online users. The business has made significant 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 drive further revenue growth.
Language analytics software specialist Relative Insight has maintained an
impressive growth rate increasing ARR and extending its client base. During
the period under review, the business secured series B funding from another
institutional investor, which provides additional capital to accelerate the
growth plan. The business has experienced strong demand for its AI-powered
advanced 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 business
in May 2021, the business 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. There are now a number of high profile companies operating in this
space and Rockar remains at the forefront in terms of its technological
capabilities and sector 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
commercial objectives and where the value 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 ongoing 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 the holding. In addition, a full write down has been taken against the
valuation of the investment in Boiler Plan, which experienced challenging
trading during the pandemic and has subsequently failed to deliver its
business plan.
Quoted Holdings
During the reporting period, performance across AIM was impacted by negative
investor sentiment surrounding inflationary pressures, the expectation of
further interest rate rises and the cost-of-living crisis, as well as ongoing
concerns in relation to the conflict in Ukraine. Despite the market
volatility, the Manager was able to trade several holdings, either partially
or in full, to crystallise gains generating total proceeds of £4.8 million,
the majority of which is attributed to the partial realisation of Ideagen,
with the exit completing in July 2022.
Water Intelligence released full year results, for the period to 31 December
2021, that recorded revenue growth of 44% to $54.5 million, with the statutory
results $1.9 million higher than previously announced due to a one-off gain.
Adjusted EBITDA increased by 48% to $10.3 million. Cash at the period end
increased to $23.8 million, against $6.8 million at the end of the previous
year, with net bank debt of $15.5 million. Operationally, America Leak
Detection (ALD) continues to represent 90% of group revenue and divisional
revenue increased by 44% to $48.4 million during 2021, with profit up 38% to
$5.4 million. The company noted it was confident in further corporate
development through 2022 and was well placed to navigate the inflationary
challenges, primarily fuel, raw material and labour. The first quarter trading
update reiterated that trading was in line with market expectations for 2022,
with sales growth up 44% to $16.5 million and adjusted EBITDA increasing 26%
to $3 million. Net cash at the quarter end remained steady at $10 million with
further liquidity available in undrawn debt facilities.
Following its IPO on AIM in June 2021, biopharmaceutical company Arecor
Therapeutics reported results for the year to 31 December 2021 that were in
line with expectations. Revenue from formulation development projects
increased by 50% to £1.2 million including the five new technology partner
agreements that were signed during the year. R&D increased to £5.4
million reflecting spend on key clinical trials for its ultra-rapid acting
insulin (AT247 and AT278) products, and the cash position remained strong at
£18.3 million, reflecting the fund raised at the time of flotation.
Operational highlights included the initiation of a US based Phase I clinical
trial in patients with Type I diabetes to further explore the clinical
benefits of AT247. Furthermore, Arecor also achieved positive headline Phase I
clinical trial results for its second diabetes product, AT278, an
ultra-concentrated, ultra-rapid acting insulin, which the company believes has
the potential to disrupt the market, as it is the first concentrated, yet
rapid acting insulin product. Arecor also secured five technology partnering
agreements with leading pharmaceutical companies and two of Arecor's specialty
hospital products have been partnered with Hikma Pharmaceuticals under
co-development and licensing deals. There is a strong pipeline of
opportunities within the speciality hospital portfolio, with further
technology partnering agreements expected to be developed during the year.
In the financial year to 31 December 2021, Concurrent Technologies reported
revenue of £20.5 million, which was slightly ahead of market expectations.
This is regarded as a creditable outcome given the ongoing global component
supply issues. EBITDA was up slightly year on year at £5.1 million, with
profit before tax increasing 22% to £3.5 million. Cash at the year end
remained steady at £11.8 million and the annual dividend of 2.55p per share
was maintained. Operationally, the company highlighted the positive impact of
the new CEO, who was appointed in June 2021, and reiterated the strategic
focus to increase the pace of development and manufacturing of a new product
range, both in the UK and US. Noting the challenging economic conditions, the
company stated that, whilst 2022 had started with a healthy order book, which
as at the end of March was £16.2 million, it expected the component supply
challenges to impact during the first half of the financial year, with order
deliveries expected to be delayed and revenues recognised over a longer period
than normal. Despite this caution, the company added that it was managing the
issues robustly and remained committed to continuing to grow the order book
and further new product innovation.
The financial year to 30 November 2021 was a transformation period for K3
Business Technology, during which the recently appointed CEO launched a new
growth strategy alongside implementing a restructuring of the operations with
the sale of two non-core businesses and the removal of associated costs. In
the full year revenue from continuing operations was 3% ahead of prior year at
£45.3million, and adjusted EBITDA was up 8% at £4.4 million. The balance
sheet at the year end was significantly strengthened with a net cash position
of £9.0 million compared net debt of £1.9 million at the end of the previous
year. Operationally, the company noted it was now better positioned,
highlighting the good opportunities that were emerging to support core
business processes with its target fashion and apparel markets. This included
the expansion of services into key areas of sustainability (supply chain
traceability and certification), omni-channel (creating a seamless shopping
experience for consumers engaging with brands both digitally and physically)
and business insights (to assist brands with analytics and data intelligence
to provide a more personalised consumer engagement). The company confirmed
that trading in the current financial year was in line with its expectations,
and it was anticipated that further progress towards growth initiatives would
be achieved as the year progressed.
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, five new private companies were added to the portfolio:
• CYSIAM is a provider of cybersecurity and incident response
services to a broad range of public and private sector clients. The company
provides specialist advice and bespoke training, and also offers a wraparound
managed service solution for clients seeking to fully outsource their
cybersecurity function. The founders have significant experience of critical
defence and national security environments, both in the UK and overseas, and a
deep understanding and personal insight into this rapidly expanding speciality
market. The VCT funding is being used to support the business as it launches a
sales and marketing campaign to raise the corporate profile, as well as
providing capital to progress further product development.
• iPac is an established designer and manufacturer of bespoke
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 manufacturing plant is powered entirely through renewable sources
and less than 2% of manufacturing 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.
• Liftango is a provider of a demand responsive transport (DRT)
technology platform, which enables clients such as global corporates,
governments and transport authorities to optimise route planning in real-time
in response to passenger usage. The business has three core products (carpool,
fixed-route shuttles and on-demand buses), all of which are designed to
optimise vehicle scheduling and routing to improve fleet efficiency. The
technology also helps clients to minimise carbon footprint, reduce congestion
and create a safe and convenient shared transport network. Liftango has a
strong client list including corporates such as IKEA, Tesla, Unilever and
Volvo, as well as several county councils. The VCT funding is being used to
recruit key sales and marketing staff, and to assist the business as it
expands into Europe and North America.
• ORCHA is a global leader in curating and managing accredited
pathways, which enable private, local and national health systems to adopt
digital solutions to support healthcare professionals in recommending digital
health apps to patients. ORCHA's Digital Health Library contains over 6,000
reviewed apps and operates in 12 countries, including the UK, Canada and parts
of Europe, helping health and care organisation, national health bodies,
educational centres and charities. ORCHA's management team is supported by
highly experienced board of advisors, which includes former Tesco CEO Sir
Terry Leahy, who is also an investor in the business. The VCT funding is being
used to further develop the core technology and support the expansion into new
markets, specifically the US.
• 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.
In addition, two new AIM quoted investments were added to the portfolio:
• Directa Plus is a leading producer and supplier of
graphene-based products for use in consumer and industrial markets. The
company's manufacturing capability uses proprietary patented technology to
create graphene-based materials in a variety of forms, such as liquid, paste
and powder, and it has cornerstone customer and partners in four key end
market (environmental, textiles, composites and lithium-sulphur batteries).
The company holds the Green Economy Mark, from the London Stock Exchange which
recognises its contribution to the global green economy. Your Company
participated in the £7 million fund raising, which completed in December
2021. The investment is being used to support research and development with
the objective of broadening the number of applications offered. It will also
strengthen the balance sheet and provide general working capital.
• Velocys is an international sustainable fuels company that has
developed a proprietary technology for the generation of clean, low carbon
aviation and road transport fuel from residual wood biomass and municipal
solid waste. The Fischer-Tropsch technology seeks to reduce greenhouse gases
and key exhaust pollutants to support the net zero carbon commitment. Your
company participated in the £25 million placing, which completed in December
2021. The investment is being used to accelerate the delivery of the
technology and enable the business to grow with a view to achieving its target
of being net cash flow positive by 2024.
The following investments have been completed during the reporting period:
Investment
cost
Investments Date Sector £'000
New unlisted
CYSIAM Limited December 2021 Software 373
Kanabo GP Limited(1) February 2022 Pharmaceuticals, biotechnology & healthcare 1,639
Liftango Group Limited December 2021 Software 547
mypura.com Group Limited (trading as Pura) January 2022 Business services 448
ORCHA Health Limited March 2022 Pharmaceuticals, biotechnology & healthcare 497
Project Falcon Topco Limited (trading as Quorum Cyber)(2) December 2021 Software 126
Reed Thermoformed Packaging Limited (trading as iPac) March 2022 Business services 448
Total new unlisted 4,078
Follow-on unlisted
Atterley.com Holdings Limited April 2022 Software 41
Boiler Plan (UK) Limited February 2022 Business services 33
Contego Solutions Limited (trading as NorthRow) April 2022 Software 245
Delio Limited February 2022 Software 248
e.fundamentals (Group) Limited January 2022 Marketing & advertising technology 125
HiveHR Limited(3) March & April 2022 Software 23
MirrorWeb Limited May 2022 Software 350
Precursive Limited March 2022 Software 500
Push Technology Limited May 2022 Data analytics 200
Shortbite Limited (trading as DigitalBridge) January 2022 Marketing & advertising technology 57
Total follow-on unlisted 1,822
Total unlisted 5,900
Investment
cost
Investments Date Sector £'000
New quoted
Directa Plus PLC February 2022 Industrials & engineering 120
Velocys PLC December 2021 Industrials & engineering 148
Total new quoted 268
Follow-on quoted
Verici Dx PLC March 2022 Pharmaceuticals, biotechnology & healthcare 83
Total follow-on quoted 83
Total quoted 351
Total investments 6,251
(1) The holding in this investment resulted from the sale of The GP
Service (UK) Limited, which was structured as a share for share exchange.
(2) Retained minority interest following the sale of Quorum Cyber
Security Limited.
(3) Follow-on investment completed in two tranches.
At the period end, the portfolio stood at 123 unlisted and quoted investments,
at a total cost of £42.6 million.
Realisations
In December 2021, the sale of online mortgage broker Mojo Mortgages completed
following receipt of regulatory approval. Your Company first invested in Mojo
in 2019, supporting an ambitious management team to develop its disruptive
mortgage broking technology platform. Mojo's solution provides an innovative
hybrid of online and advised services, capable of managing the entire process
from product price comparison through to the mortgage application and
completion. The sale to RVU, which is part of the Zoopla Property Group and
owns of a number of consumer finance and comparison sites, generated a total
return of up to 1.8x cost (including monies held in escrow) over the life of
the investment.
In December, the sale of cybersecurity technology provider Quorum Cyber
completed. The threat of cyber-attacks has become an increasingly significant
risk for businesses, which was amplified during the pandemic as companies
followed Government advice and implemented working from home practices which,
in some cases, exposed system weaknesses. Against this backdrop Quorum, which
provides a fully managed, 24/7 cyber risk mitigation platform for corporate
clients, experienced a rapid increase in demand for its services which, in
turn, resulted in strong growth in revenues. The business increased its
customer base through organic growth as well as via referrals from partners
such as Microsoft. An approach to acquire Quorum was subsequently received
from a UK private equity house and the exit delivered an overall money
multiple return of 6.5x cost, inclusive of a retained minority holding in the
business. This retained holding enables your Company to participate in the
future growth of Quorum, offering the potential for a further return.
In January 2022, the holding in 3D photonic circuit specialist Optoscribe was
realised through the sale to a US corporate buyer. Since the Maven VCTs first
invested in 2019, the Manager has 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, subject to regulatory approval. The acquisition enables
Brown & Brown to establish itself in the UK retail insurance sector, where
it does not currently have 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 in the acquiring vehicle. The subsequent
sale to Brown & Brown will result in a full exit from this investment and
will generate a further return equivalent to 1.24x the original cost, taking
the total money multiple return to 3.38x cost.
In March, Servoca, a leading provider of staffing solutions and outsourced
services, announced a Tender Offer of up to £10 million at a price of 30p per
share. Given the premium this offered above your Company's carrying value, it
represented a good opportunity to crystallise value. As a result, your Company
realised 74.9% of its holding which generated proceeds of £843,000, whilst
also leaving a smaller retained investment.
In late March, the holding in energy services specialist RMEC was realised
through the sale to Aberdeen based trade acquirer Centurion Group. Over the
holding period, RMEC has delivered a consistently strong performance despite
the various challenges within its operating environment. 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 2.28x
cost over the life of the investment, inclusive of all income payments.
The table below gives details of all realisations completed during the
reporting period:
Cost of shares Value at 30 Gain/(loss) over 30
disposed November Realised November
of 2021 gain/ 2021 value
£'000 £'000 (loss) £'000
£'000
Year Complete/ Sales
first partial exit proceeds
invested £'000
Sales
Unlisted
Life's Great Group Limited (trading as Mojo Mortgages) 2019 Complete 817 1,374 1,374 557 -
Optoscribe Limited 2018 Complete 275 629 631 356 2
Quorum Cyber Security Limited(1) 2020 Complete 150 961 961 811 -
RMEC Group Limited(2) 2014 Complete 308 503 463 155 (40)
Servoca PLC(3) 2007 Partial 476 365 843 367 478
The GP Service (UK) Limited(4) 2016 Complete 860 892 1,639 779 747
Tissuemed Limited 2000 Complete 71 - 177 106 177
Others - - 6 6 6
Total unlisted 2,957 4,724 6,094 3,137 1,370
Quoted
Gelion PLC 2021 Partial 28 28 51 23 23
Ideagen PLC 2005 Partial 99 3,469 4,786 4,687 1,317
Total quoted 127 3,497 4,837 4,710 1,340
Total sales 3,084 8,221 10,931 7,847 2,710
(1) Proceeds exclude yield received, which is disclosed as
revenue for financial reporting purposes.
(2) Proceeds exclude yield and redemption premium received, which
are disclosed as revenue for financial reporting purposes.
(3) Partial sale following tender offer.
(4) 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. In line with IPEV guidelines, the
valuation of the holding has been adjusted to reflect the market value as at
31 May 2022.
During the period, one private and one AIM quoted company were struck off the
Register of Companies, resulting in a total realised loss of £302,000 (cost
£302,000). This had no effect on the NAV of the Company as full provisions
had been made against the value of the holdings in a previous period.
Material Developments Since the Period End
Since 31 May 2022, three 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. The company has a
strong client base which 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. 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, as well as providing a work-for-hire studio. Through a licence
agreement with Sony Pictures, XR has developed the VR game The 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 good 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.
• 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: retail, corporate, government, and security and
facilities management. Zinc's solution, which provides 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 over 20 countries
with a strong client list that includes B&Q, the Environmental Agency and
City of London Police. The VCT funding is being used to enhance the sales and
marketing function, and to progress product development.
In July 2022, the holding in e.fundamentals was realised through a sale to
CommerceIQ, a US private equity backed trade consolidator. The exit
generated 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.
Outlook
Your Company has continued to make positive progress during the first half of
the financial year and 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 focussed
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
Manager
22 July 2022
Investment Portfolio Summary
As at 31 May 2022
Valuation Cost % of total assets % of equity held % of equity
Investment £'000 £'000 held by other clients(1)
Unlisted
Bright Network (UK) Limited 1,655 940 2.5 8.2 31.7
Rockar 2016 Limited (trading as Rockar) 1,464 980 2.3 5.2 16.4
Relative Insight Limited 1,290 600 1.9 2.6 22.1
Delio Limited 1,276 648 1.9 2.5 9.7
Cardinality Limited 1,188 796 1.8 7.9 17.0
e.fundamentals (Group) Limited 1,176 625 1.8 1.6 9.2
MirrorWeb Limited 1,176 1,000 1.8 7.2 37.7
Nano Interactive Group Limited 1,126 625 1.7 3.7 11.2
Precursive Limited 1,000 1,000 1.5 6.7 27.5
Horizon Ceremonies Limited (trading as Horizon Cremation) 990 660 1.5 3.6 49.1
Horizon Technologies Consultants Limited 900 796 1.3 5.5 11.7
CB Technology Group Limited 856 521 1.3 10.6 68.3
Contego Solutions Limited (trading as NorthRow) 843 843 1.3 4.9 27.3
Push Technology Limited 725 725 1.1 3.4 9.9
Enpal Limited (trading as Guru Systems) 697 697 1.0 7.5 14.1
Atterley.com Holdings Limited 654 654 1.0 7.6 10.0
BioAscent Discovery Limited 651 174 1.0 4.4 35.6
Draper & Dash Limited (trading as RwHealth) 597 597 0.9 2.9 10.6
FodaBox Limited 597 597 0.9 4.3 6.5
GradTouch Limited 567 567 0.8 6.2 33.9
HiveHR Limited 560 374 0.8 6.0 38.6
Ensco 969 Limited (trading as DPP) 560 515 0.8 2.2 32.3
Liftango Limited 547 547 0.8 3.4 10.5
Kanabo GP Limited(2) 518 1,639 0.8 13.8 53.4
WaterBear Education Limited 517 245 0.8 5.1 34.1
Glacier Energy Services Holdings Limited 509 643 0.8 2.5 25.2
Flow UK Holdings Limited 498 498 0.7 6.0 29.0
ORCHA Health Limited 497 497 0.7 1.3 1.3
QikServe Limited 494 494 0.7 2.2 13.6
Whiterock Group Limited 490 321 0.7 5.2 24.8
As at 31 May 2022
Investment Valuation Cost % of total % of equity held % of equity held by other clients(1)
£'000 £'000 assets
Unlisted (continued)
Vodat Communications Group (VCG) Holding Limited (formerly Vodat 476 264 0.7 2.0 24.9
Communications Group Limited)
CODILINK UK Limited (trading as Coniq) 450 450 0.7 1.3 3.6
mypura.com Group Limited (trading as Pura) 448 448 0.7 2.1 16.7
Reed Thermoformed Packaging Limited (trading as iPac) 448 448 0.7 2.5 10.0
Filtered Technologies Limited 435 400 0.7 4.1 21.3
Rico Developments Limited (trading as Adimo) 435 435 0.7 3.3 6.4
Hublsoft Group Limited 375 300 0.6 4.7 26.5
Maven Co-Invest Endeavour Limited Partnership 375 1 0.6 6.1 93.9
CYSIAM Limited 373 373 0.6 6.5 13.5
RevLifter Limited 300 300 0.4 3.3 17.1
Cat Tech International Limited 299 299 0.4 2.9 27.2
Snappy Shopper Limited 298 298 0.4 0.4 1.4
Growth Capital Ventures Limited 275 264 0.4 4.8 42.6
HCS Control Systems Group Limited 269 373 0.4 3.0 33.5
ebb3 Limited 264 206 0.4 4.9 53.7
Servoca PLC(2) 241 138 0.4 0.7 -
Automated Analytics Limited (formerly eSales Hub Limited) 150 150 0.2 1.7 16.9
Project Falcon Topco Limited (trading as Quorum Cyber) 126 126 0.2 0.4 2.6
Shortbite Limited (trading as DigitalBridge) 121 314 0.2 1.5 23.4
The Algorithm People Limited 100 100 0.1 2.1 14.8
ISN Solutions Group Limited 98 250 0.1 3.6 51.4
R&M Engineering Group Limited 80 357 0.1 4.0 66.6
Intilery.com Limited 75 75 0.1 0.8 58.6
Honcho Markets Limited 65 64 0.1 1.2 23.5
LightwaveRF PLC(3) 40 74 0.1 0.9 0.9
Other unlisted investments 25 2,205 -
Total unlisted 31,259 28,530 46.9
As at 31 May 2022
Investment Valuation Cost % of total % of % of equity
£'000 £'000 assets equity held by other
held clients(1)
Quoted
Water Intelligence PLC 1,688 163 2.6 1.2 -
Ideagen PLC 1,058 22 1.7 0.1 -
Access Intelligence PLC 483 224 0.8 0.4 0.1
Avingtrans PLC 405 54 0.7 0.3 -
Concurrent Technologies PLC 356 161 0.5 0.7 -
GENinCode PLC 342 397 0.5 1.8 9.3
K3 Business Technology Group PLC 309 238 0.5 0.5 -
Vianet Group PLC 270 405 0.4 1.1 0.3
Arecor Therapeutics PLC 267 167 0.4 0.3 0.3
Anpario PLC 262 57 0.4 0.2 -
Netcall PLC 221 26 0.3 0.2 -
Polarean Imaging PLC 209 246 0.3 0.2 0.4
Crossword Cybersecurity PLC 156 150 0.2 0.8 1.9
Synectics PLC 144 308 0.2 0.8 -
Saietta Group PLC 139 111 0.2 0.1 0.1
Oncimmune Holdings PLC 132 250 0.2 0.2 0.4
Avacta Group PLC 108 13 0.2 - 0.1
Croma Security Solutions Group PLC 108 433 0.2 1.0 -
Velocys PLC 96 148 0.1 0.1 0.1
LungLife AI PLC 94 114 0.1 0.3 0.2
Directa Plus PLC 82 120 0.1 0.2 0.2
Gelion PLC 79 121 0.1 0.1 0.1
SulNOx PLC 74 130 0.1 0.5 0.5
Intelligent Ultrasound Group PLC 71 51 0.1 0.2 1.6
ReNeuron Group PLC 71 150 0.1 0.4 1.7
Destiny Pharma PLC 68 100 0.1 0.3 1.5
C4X Discovery Holdings PLC 66 40 0.1 0.1 0.9
Feedback PLC 63 74 0.1 0.4 1.3
Verici Dx PLC 60 83 0.1 0.2 1.4
Eden Research PLC 58 83 0.1 0.4 1.0
Osirium Technologies PLC 51 199 0.1 1.6 2.9
Vertu Motors PLC 49 50 0.1 - -
As at 31 May 2022
Investment Valuation Cost % of total % of % of equity held by other
£'000 £'000 assets equity clients(1)
held
Quoted (continued)
Renalytix PLC 39 - 0.1 - -
RUA Life Sciences PLC 31 229 - 0.3 1.3
Seeen PLC 31 100 - 0.4 1.3
Egdon Resources PLC 24 48 - 0.1 -
Diurnal Group PLC 23 62 - 0.1 0.4
Merit Group PLC 23 450 - 0.2 -
XP Factory PLC (formerly Escape Hunt PLC) 22 26 - 0.1 0.1
Incanthera PLC 21 49 - 0.6 0.6
Transense Technologies PLC 21 1,188 - 0.3 -
Trackwise Designs PLC 15 20 - 0.1 0.3
DeepMatter Group PLC 10 201 - 0.2 0.3
Other quoted investments 15 4,454 -
Total quoted 7,914 11,715 11.8
Private equity investment trusts
HgCapital Trust PLC 548 315 0.9 0.3 1.0
HarbourVest Global Private Equity Limited 478 310 0.7 - 0.1
BMO Private Equity Trust PLC (formerly F&C Private Equity Trust PLC) 431 342 0.6 0.1 0.3
ICG Enterprise Trust PLC 401 324 0.6 - 0.1
abrdn Private Equity Opportunities Trust PLC (formerly Standard Life Private 372 266 0.6 - 0.1
Equity Trust PLC)
Apax Global Alpha Limited 355 289 0.5 - 0.1
Princess Private Equity Holding Limited 351 308 0.5 - 0.2
Pantheon International PLC 312 236 0.5 - 0.1
Total private equity investment trusts 3,248 2,390 4.9
Total investments 42,421 42,635 63.6
(1) Other clients of Maven Capital Partners UK LLP.
(2) 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 31 May 2022.
(3) This company delisted from AIM in a previous period.
Shaded line indicates that the investment was completed pre 2015.
Income Statement
For the six months Ended 31 May 2022
Six months ended Six months ended Year ended
31 May 2022 31 May 2021 30 November 2021
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 773 773 - 6,807 6,807 - 9,624 9,624
Income from investments 263 - 263 200 - 200 516 - 516
Other income 4 - 4 1 - 1 3 - 3
Investment management fees (221) (663) (884) (157) (472) (629) (324) (972) (1,296)
Other expenses (192) - (192) (135) - (135) (415) - (415)
Net return on ordinary activities before taxation (146) 110 (36) (91) 6,335 6,244 (220) 8,652 8,432
Tax on ordinary activities - - - - - - - - -
Return attributable to Equity Shareholders (146) 110 (36) (91) 6,335 6,244 (220) 8,652 8,432
Earnings per share (pence) (0.08) 0.06 (0.02) (0.06) 4.37 4.31 (0.14) 5.38 5.24
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
Six months ended 31 May 2022
Non-distributable reserves Distributable reserves
Six months ended Share capital Share premium account Capital redemption reserve Capital reserved unrealised Capital reserve realised Special distributable reserve Revenue reserve Total
31 May 2022 (unaudited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30 November 2021 17,635 14,527 484 6,543 1,720 29,308 (1,454) 68,763
Net return - - - (6,757) 7,530 (663) (146) (36)
Dividends paid - - - - - (1,751) - (1,751)
Repurchase and (116) - 116 - - (427) - (427)
cancellation of shares
Net proceeds of DIS issue 50 135 - - - - - 185
At 31 May 2022 17,569 14,662 600 (214) 9,250 26,467 (1,600) 66,734
Non-distributable reserves Distributable reserves
Six months ended Share capital Share premium account Capital redemption reserve Capital reserved unrealised Capital reserve realised Special distributable reserve Revenue reserve Total
31 May 2021 (unaudited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30 November 2020 12,405 21 218 (3,095) 1,734 35,087 (1,234) 45,136
Net return - - - 6,978 (171) (472) (91) 6,244
Dividends paid - - - - - (1,926) - (1,926)
Repurchase and (190) - 190 - - (655) - (655)
cancellation of shares
Net proceeds of share issue 5,381 13,667 - - - - - 19,048
Net proceeds of DIS issue 58 143 - - - - - 201
At 31 May 2021 17,654 13,831 408 3,883 1,563 32,034 (1,325) 68,048
Non-distributable reserves Distributable reserves
Year ended Share capital Share premium account Capital redemption reserve Capital reserved unrealised Capital reserve realised Special distributable reserve Revenue reserve Total
30 November 2021 (audited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30 November 2020 12,405 21 218 (3,095) 1,734 35,087 (1,234) 45,136
Net return - - - 9,638 (14) (972) (220) 8,432
Dividends paid - - - - - (3,874) - (3,874)
Repurchase and (266) - 266 - - (933) - (933)
cancellation of shares
Net proceeds of share issue 5,381 14,210 - - - - - 19,591
Net proceeds of DIS issue 115 296 - - - - - 411
At 30 November 2021 17,635 14,527 484 6,543 1,720 29,308 (1,454) 68,763
The accompanying Notes are an integral part of the Financial Statements.
Balance Sheet
As at 31 May 2022
31 May 2022 31 May 2021 30 November 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Fixed assets
Investments at fair value through profit or loss 42,421 42,109 46,313
Current assets
Debtors 430 367 436
Cash 24,278 25,829 22,434
24,708 26,196 22,870
Creditors
Amounts falling due within one year (395) (257) (420)
Net current assets 24,313 25,939 22,450
Net assets 66,734 68,048 68,763
Capital and reserves
Called up share capital 17,569 17,654 17,635
Share premium account 14,662 13,831 14,527
Capital redemption reserve 600 408 484
Capital reserve - unrealised (214) 3,883 6,543
Capital reserve - realised 9,250 1,563 1,720
Special distributable reserve 26,467 32,034 29,308
Revenue reserve (1,600) (1,325) (1,454)
Net assets attributable to Ordinary Shareholders 66,734 68,048 68,763
Net asset value per Ordinary Share (pence) 37.98 38.54 38.99
The Financial Statements of Maven Income and Growth VCT 5 PLC, registered
number 04084875, were approved by the Board and were signed on its behalf by:
Graham Miller
Director
22 July 2022
The accompanying Notes are an integral part of the Financial Statements.
Cash Flow Statement
For the six months ended 31 May 2022
Six months ended Six months ended Year ended
31 May 2022 31 May 2021 30 November 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Net cash flows from operating activities (855) (605) (1,042)
Cash flows from investing activities
Purchase of investments (4,612) (4,213) (8,067)
Sale of investments 9,304 2,516 4,885
Net cash flows from investing activities 4,692 (1,697) (3,182)
Cash flows from financing activities
Equity dividends paid (1,751) (1,926) (3,874)
Issue of Ordinary Shares 185 19,249 20,002
Repurchase of Ordinary Shares (427) (735) (1,013)
Net cash flows from financing activities (1,993) 16,588 15,115
Net increase in cash 1,844 14,286 10,891
Cash at beginning of period 22,434 11,543 11,543
Cash at end of period 24,278 25,829 22,434
The accompanying Notes are an integral part of the Financial Statements.
Notes to the Financial Statements
1. Accounting policies
The financial information for the six months ended 31 May 2022 and the six
months ended 31 May 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 based on the accounting policies set out in the
Annual Report and Financial Statements for the year ended 30 November 2021,
which have been filed at Companies House and which 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 31 May 2022
The returns per share have been based on the following figures:
Weighted average number of Ordinary Shares 175,879,350
Revenue return (£146,000)
Capital return £110,000
Total return (£36,000)
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
• the Financial Statements for the six months ended 31 May 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, comprising the Chairman's
Statement and the Investment Manager's Interim Review, 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 and
emerging risks and uncertainties facing the Company during the second six
months, of the year ending 30 November 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
The NAV per Ordinary Share has been calculated using the number of Ordinary
Shares in issue at 31 May 2022, which was 175,699,831. A summary of investment
changes for the six months under review and an investment portfolio summary as
at 31 May 2022 are included above. A full copy of the Interim Report and
Financial Statements will be printed and issued to Shareholders in due course.
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 at 1-2 Royal Exchange
Buildings, London, EC3V 3LF; and on the Company's website at:
mavencp.com/migvct5 (http://www.mavencp.com/migvct5) .
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.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
22 July 2022
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