REG - Mobeus Inc&Gwth - Half-year Report
05/09/2022 16:30
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RNS Number : 3195Y Mobeus Income & Growth VCT PLC 05 September 2022
MOBEUS INCOME & GROWTH VCT PLC
LEI: 213800HKOSEVWS7YPH79
UNAUDITED HALF-YEAR RESULTS FOR THE SIX MONTHS TO 30 JUNE 2022
Mobeus Income & Growth VCT plc ("the Company") today announces its
Half-Year results for the six months to 30 June 2022.
You may, in due course, view the Half-Year Report, comprising the Unaudited
Condensed Financial Statements of the Company by visiting www.migvct.co.uk.
Financial Highlights
As at 30 June 2022:
Net assets: £103.56 million
Net asset value ("NAV") per share: 75.55 pence
Results for the six months to 30 June 2022:
· There was a negative Net asset value ("NAV") total return(1) per
share of (11.9)%.
· The Board declared an interim dividend in respect of the current year
of 4.00 pence per share, which was paid to Shareholders on 15 July 2022 whilst
decreasing NAV per share by a corresponding amount. Payment of this dividend
increased cumulative dividends paid(1) since inception in 2004 to 152.80 pence
per share.
· A second interim dividend of 4.00 pence per share has been declared
for payment on 7 November 2022.
· The Company made two new investments totalling £1.31 million and
four follow-on investments totalling £1.06 million.
· £14.34 million of unrealised losses in the period.
· The Company realised investments totalling £5.33 million, a gain of
£1.04 million.
(1) Definitions of key terms and alternative performance measures ("APMs") /
Key performance indicators ("KPIs") shown above and throughout this Report are
shown in the Glossary of terms within the Annual Report.
PERFORMANCE SUMMARY
The table below shows the recent key data and cumulative performance since
inception as at 30 June 2022 and for the previous year.
Reporting date Net NAV per Share Share Cumulative dividends paid Cumulative total return per share to shareholders(2) Dividends
assets
Price(1) per share per share paid and proposed in respect of each year
(NAV (Share price basis)
basis)
As at (£m) (p) (p) (p) (p) (p) (p)
30 June 2022 103.56 75.55 78.50(4) 148.80 224.35 227.30¹ 4.00(4)
31 December 2021 112.96 90.31 80.00(3) 144.80 235.11 224.80 9.00
30 June 2021 107.41 85.56 76.50 139.80 225.36 216.30 5.00
( )
(1 ) Source: Panmure Gordon (mid-price). Note that the Share price and
cumulative total return (share price basis) at 30 June 2022 is by reference to
the last announced NAV per share at 31 March 2022 of 82.18 pence and does not
yet reflect the fall in NAV per share at 30 June 2022.
(2 ) Cumulative total return per share comprises either the NAV per share
(NAV basis) or the mid-market price per share (share price basis), plus
cumulative dividends paid since launch in 2004.
(3 ) The share price at 31 December 2021 has been adjusted for a 4.00 pence
dividend paid after the year-end on 7 January 2022 which was ex-dividend at 31
December 2021.
(4 ) The Board declared an interim dividend of 4.00 pence per share in
respect of the year ending 31 December 2022. The dividend was paid to
Shareholders on 15 July 2022. The share price at 30 June 2022 has been
adjusted to add back this dividend as the listed share price was quoted ex
this dividend at the period-end.
Dividends paid post period-end in respect of year ending 31 December 2022
An interim capital dividend of 4.00 pence per share was paid on 15 July 2022
to Shareholders on the Register on 10 June 2022.
Detailed performance data, including a table of dividends paid to date for all
share classes and fundraising rounds, is shown in the Performance Data
appendix of the Half Year Report. The tables, which give information by
allotment date on NAVs and dividends paid per share, are also available on the
Company's website at www.migvct.co.uk (http://www.migvct.co.uk) where they can
be accessed by clicking on "table" under "Reviewing the performance of your
investment" on the home page.
( )
( )
Chairman's Statement
I present the Company's Half-Year Report for the six months to 30 June 2022.
Overview
The first six months of the Company's financial year have been notable for
significant economic disruption both domestically and internationally.
December was a high watermark in many technology and growth markets, and since
then we have experienced a number of significant global events such as the
Russian invasion of Ukraine, the return of inflation to 40-year highs and
political turmoil in the UK and across Europe. All of this has led to marked
volatility across markets and a general de-rating of growth stocks.
Performance
As a consequence of the factors described above, the Company has experienced a
negative NAV total return of (11.9)% over the six months to 30 June 2022
(2021: 27.6%).
The decline in NAV has been largely driven by market multiples rather than
underlying trading performance at this stage, as markets have factored in the
likely impact of inflation and higher interest rates on consumer spending and
business investment.
The negative NAV total return for the period was principally comprised of
unrealised falls in the value of investments still held, tempered somewhat by
the successful exit from Media Business Insight ("MBI") and deferred proceeds
received from the realisation of Red Paddle in December 2021.
At the period-end, the Company was ranked 3rd out of 40 Generalist VCTs over
five years and 2nd out of 31 over ten years, in the Association of Investment
Companies' analysis of NAV Cumulative Total Return. Shareholders should note
that, due to the lag in the disclosed performance figures available each
quarter, the AIC ranking figures do not fully reflect the final NAV movement
to 30 June disclosed by this Report, or those of our peers.
Portfolio
In the face of the current testing environment the portfolio has, thus far,
remained relatively resilient in terms of underlying trading. Nevertheless,
the investment adviser has started to see indicators of customer retrenchment
as consumer confidence declines. There was a fall of £13.30 million in the
overall value of the portfolio across the six months to 30 June (2021:
increase of £23.84 million), or a fall of (16.7)% on a like-for-like basis
compared to the opening value of the portfolio at 1 January 2022. A
significant proportion of this asset movement reflected a value decline in the
AIM-listed Virgin Wines investment which, in spite of positive news flows and
the relative outperformance of its peers, has suffered from the de-rating of
its sector.
The Company completed one successful exit during the period, generating
proceeds of £4.67 million from the sale of Media Business Insight. Returns
received over the life of this investment amounted to a 2.2x multiple of cost
and an IRR of 13.7%. Further proceeds from loan repayments and deferred
consideration amounted to £0.66 million.
Global supply shortages remain a significant factor and are expected to
continue to cause disruption going forward. The economic backdrop falls
largely outside of the experience of this generation of management teams and
advisers. As such, the experience of seasoned investment managers will be
increasingly important in the coming months.
Investment activity during the period has been strong, with two new and four
follow-on investments completed, totalling £2.37 million. History suggests
that, although the economic backdrop is challenging, investing throughout the
cycle is a fruitful strategy, with investments made in previous downturns in
many cases subsequently yielding very strong returns.
During the six months under review, the Company invested a total of £1.31
million into two new investments: a retail software provider (Proximity
Insight) and a marketing technology business (Bidnamic).
In addition, four follow-on investments totalling £1.06 million were made
into a provider of UK leisure and experience breaks (Caledonian), a dairy and
allergen-free ice cream brand (Northern Bloc), a provider of premium EV
chargers (Andersen EV) and a workforce management software business
(RotaGeek). We expect follow-on investments to continue to be a feature of the
growth capital investments as they seek to achieve scale and move towards
profitability.
Since the period-end, the Company has also made follow-on investments of
£0.78 million into an AI and Urban Traffic Control business (Vivacity) and
£0.43 million into a hair colourants brand (Bleach London).
During such turbulent times, doing everything in our power to support the
portfolio is an imperative. The Investment Adviser is making full use of its
Talent Management teams in helping to support management teams across the
portfolio. Such specialist skills are a key benefit of the move to Gresham
House.
Details of this investment activity and the performance of the portfolio are
contained in the Investment Adviser's Review and the Investment Portfolio
Summary.
Revenue account
The results for the period are set out in the Unaudited Condensed Income
Statement and show a revenue return (after tax) of 0.21 pence per share (2021:
0.12 pence per share). The revenue return for the period of £0.27 million has
increased from last year's figure of £0.16 million. This is primarily the
result of a significant loan interest receipt upon the sale of Media Business
Insight.
Dividends
The Board continues to be committed to providing an attractive dividend stream
to Shareholders and was pleased to declare an Interim dividend of 4.00 pence
per share for the year ending 31 December 2022.
This dividend was paid on 15 July 2022, to Shareholders on the Register on 10
June 2022, and brought cumulative dividends paid per share since inception in
2004 to 152.80 pence.
A second interim dividend in respect of the year ending 31 December 2022 of
4.00 pence per share has been declared for payment on 7 November 2022 for
those Shareholders on the Register of Members at 16 September 2022.
The Company's ongoing target of paying a dividend of at least 4.00 pence per
share in respect of each financial year has been achieved and often exceeded
in all 12 years since it was established. Whilst the Board still believes this
dividend target is attainable, it should be noted that the continued movement
of the portfolio to a larger share of younger growth capital investments could
lead to increased volatility, which may affect the return in any given year.
To the extent that dividends are paid other than out of income or from gains
on investments, for instance out of special distributable reserves,
Shareholders should note this may result in a reduction in NAV over the
period.
Fundraising
As announced recently, the Board intends to launch offers for subscription for
new ordinary shares in the 2022/23 tax year. The Board expects to convene a
general meeting of Shareholders to seek the necessary authority to allot
shares and disapply pre-emption rights in connection with the fundraising.
Shareholders will receive a circular in September confirming the amount to be
raised and the purposes for which the funds will be used in advance of that
meeting for consideration. We urge all Shareholders to submit their proxy
votes online in respect of the resolutions proposed via
https://www-uk.computershare.com/investor/
(https://www-uk.computershare.com/investor/) .
The Board expects to be in a position to launch the offer for subscription in
late September, full details of which will be contained in the prospectus and
on the Company's website: www.migvct.co.uk.
Liquidity
The Board continues to monitor credit risk in respect of its cash and near
cash resources and to prioritise the security and protection of the Company's
capital. Cash and liquidity fund balances as at 30 June 2022 amounted to
£40.11 million representing 38.7% of net assets. After the period-end,
following the payment of a 4.00 pence per share dividend, the pro-forma level
of liquidity will be £34.62 million (35.3% of net assets).
Share buybacks
During the six months to 30 June 2022, the Company bought back and cancelled
230,000 of its own shares, representing 0.2% (2020: 0.6%) of the shares in
issue at the beginning of the period, at a total cost of £0.18 million (2020:
£0.57 million), inclusive of expenses.
It is the Company's policy to cancel all shares bought back in this way. The
Board regularly reviews its buyback policy, where its priority is to act
prudently and in the interest of remaining Shareholders, whilst considering
other factors, such as levels of liquidity and reserves, market conditions and
applicable law and regulations. Under this policy, the Company seeks to
maintain the discount at which the Company's shares trade at approximately 5%
below the latest published NAV.
Shareholder communications
May I remind you that the Company has its own website which is available at:
www.migvct.co.uk (http://www.migvct.co.uk)
The Investment Adviser last held its Shareholder Event virtually on behalf of
all four Mobeus VCTs in early 2022. The event was well received and the
Investment Adviser plans to hold another event in 2023. Further details will
be circulated to Shareholders and shown on the Company's website in due
course.
Fraud Warning
We are aware of a number of cases where Shareholders are being fraudulently
contacted or are being subjected to attempts of identity fraud. Shareholders
should remain vigilant of all potential financial scams or requests for them
to disclose personal data. The Board strongly recommends Shareholders take
time to read the Company's Fraud warning section, including details of who to
contact, contained within the Information for Shareholders section.
Outlook
The economic backdrop for the next twelve months is likely to be challenging
although this can also provide a good opportunity to make high quality
investments and build strategic stakes in businesses with great potential for
the future. The exit environment is likely to dampen somewhat, although this
is not foreseen to be a significant issue given that the VCT fund is not
time-limited. On the whole, your Board is confident that, with continued and
targeted support, the portfolio remains on track to overcome these challenges
and achieve its growth ambitions.
Clive Boothman
Chairman
5 September 2022
Investment Policy
The investment policy is designed to meet the Company's objective.
Investments
The Company invests primarily in a diverse portfolio of UK unquoted companies.
Investments are made selectively across a number of sectors, principally in
established companies. Investments are usually structured as part loan stock
and part equity in order to produce a regular income stream and to generate
capital gains from realisations.
There are a number of conditions within the VCT legislation which need to be
met by the Company and which may change from time to time. The Company will
seek to make investments in accordance with the requirements of prevailing VCT
legislation.
Asset allocation and risk diversification policies, including the size and
type of investments the Company makes, are determined in part by the
requirements of prevailing VCT legislation. No single investment may represent
more than 15% (by VCT tax value) of the Company's total investments at the
date of investment.
Liquidity
The Company's cash and liquid funds are held in a portfolio of readily
realisable interest-bearing investments, deposit and current accounts, of
varying maturities, subject to the overriding criterion that the risk of loss
of capital be minimised.
Borrowing
The Company's Articles of Association permit borrowing of up to 10% of the
adjusted capital and reserves (as defined therein). However, the Company has
never borrowed and the Board would only consider doing so in exceptional
circumstances.
Investment Review
Portfolio review
Demand for growth capital investment remains strong and there continues to be
a healthy pipeline of investment opportunities. The current economic climate,
whilst challenging for businesses across the portfolio, also presents
opportunities for further investment in new and existing portfolio companies.
The portfolio movements in the period are summarised as follows:
2022 2021
£m £m
Opening portfolio value 79.81 51.14
New and follow-on investments 2.37 4.47
Disposal proceeds (5.33) (6.61)
Net realised gains 1.04 1.50
Unrealised valuation movements (14.34) 22.35
Portfolio value at 30 June 63.55 72.85
The six-month period to 30 June 2022 has seen volatility translate to a
decline in market ratings. The portfolio value has reduced as a result of
this, in spite of largely resilient underlying trading performances. The
Company made two new growth capital investments during the period: £0.73
million into Proximity Insight and £0.58 million into Bidnamic. Both these
companies are retail technology businesses.
The Company also achieved a satisfying exit from MBI during the period,
receiving a total of £4.67 million in proceeds, contributing to total
receipts of £5.33 million during the period.
The investment and divestment activity during the period has further increased
the proportion of the portfolio comprised of investments made since the 2015
VCT rule change to 74.3% by value at the period-end (31 December 2021: 63.6%).
After the period-end, the Company invested a further £0.78 million into
Vivacity and a further £0.43 million into Bleach, both of which are existing
portfolio companies. Vivacity is a developer of artificial intelligence and
Urban Traffic Control systems. Following its initial series A funding in
2021, the business has doubled the size of its team and partnered with leading
firms in the automotive and environmental measurement industries. Bleach
manufactures a range of haircare and colouring products. The funds will be
used to consolidate the brand's position in the UK market as well as drive
further expansion and strategic penetration of the North American market.
The portfolio valuation changes in the period are summarised as follows:
Investment Portfolio Capital Movement 2022 2021
£m £m
Increase in the value of unrealised investments 0.51 22.76
Decrease in the value of unrealised investments (14.85) (0.41)
Net (decrease)/ increase in the value of unrealised investments (14.34) 22.35
Realised gains 1.04 1.57
Realised losses - (0.07)
Net realised gains in the period 1.04 1.50
Net investment portfolio movement in the period (13.30) 23.85
Valuation changes of portfolio investments still held
From the total value increases of £0.51 million within the portfolio, the
principal movement was in Tharstern: £0.45 million. Improved trading
through new business wins and cost controls have enhanced its valuation.
The main reductions within total valuation decreases of (£14.85) million,
were in Virgin Wines £(7.60) million; MyTutor £(1.77) million and MPB
£(1.59) million. Virgin Wines has consistently delivered robust trading
performance relative to its peers and continued to release positive news flow.
Nevertheless, the value of the AIM-listed stock has been impacted by the
general de-rating of its sector.
MyTutor has generated strong revenues in the year to date, up significantly
year on year. However, a significant reduction in comparator multiples has
reduced the value of this investment. Finally, MPB has seen a reduction in
benchmark multiples and accelerated its cash spend for growth, but is yet to
see this translate into revenues for valuation purposes.
Realised gains and deferred consideration receipts
The Company realised its investment in MBI during the period under review,
generating gains in the period of £0.49 million. These contributed to a
multiple of cost of 2.2x over the life of the investment. The Company also
received deferred proceeds totalling £0.55 million from the realisations of
Red Paddle and Vectair in previous periods.
Investment portfolio yield and loan capital repayments
In the period under review, the Company received the following amounts in loan
interest and dividend income:
Investment Portfolio Yield 2022 2021
£m £m
Interest received in the period 0.78 0.54
Dividends received in the period 0.09 0.08
Total portfolio income in the period(1) 0.87 0.62
Portfolio Value at 30 June 63.55 72.85
Portfolio Income Yield (Income as a % of Portfolio Value at 30 June) 1.4% 0.9%
(1 ) Total portfolio income in the period is generated solely from investee
companies within the portfolio. See Note 4 of the Financial Statements for all
income receivable by the Company.
In addition to realisation proceeds and deferred consideration receipts
outlined earlier, the Company also received loan stock repayments of £0.12
million from MBI earlier in the period.
New investments during the period
The Company made two new investments totaling £1.31 million during the
period, as detailed below:
Company Business Date of Investment Amount of new investment (£m)
Proximity Insight 0.73
Retail software February 2022
Proximity Insight (proximityinsight.com) is a retail technology business that
offers a 'Super-App' that is used by the customer-facing teams of brands and
retailers to engage, inspire and transact with customers. Headquartered in
London with offices in New York and Sydney, Proximity Insight has a global
client base that includes over 20 brands, boutiques and department stores in
fashion, beauty, jewellery, electronics and homewares. These clients use
Proximity Insight's platform to blur the lines between physical and digital
retail, enhancing the customer experience and improving the lifetime value of
their customers by upwards of 35%. The business grew annual recurring revenue
by 117% to £2.2 million in 2021, and the investment will support Proximity
Insight's continued product development and international growth. The
investment was made across all six VCTs advised and managed by Gresham House,
including the two Baronsmead VCTs.
Bidnamic May 2022 0.58
Marketing technology business
Lads Store Limited, trading as "Bidnamic" (www.bidnamic.com) is a marketing
technology business that offers a SaaS platform for online retailers to
optimise their search engine marketing spend. The technology was all developed
internally and uses bespoke machine learning algorithms to automate the
management and optimisation of online retailers' Google shopping spend. The
ARR of the business has grown substantially over the last two years and this
is projected to continue. The investment round will be used to further enhance
the product's capabilities and drive continued ARR growth through expanding
the sales & marketing team and building a presence in North America. The
investment was made across all six VCTs advised and managed by Gresham House,
including the two Baronsmead VCTs.
Further investments during the period
The Company made four further investments into existing portfolio companies,
totaling £1.06 million, as detailed below:
Company Business Date of Investment Amount of further investment (£m)
Caledonian Leisure January / February 2022 0.27
UK Leisure and experience breaks
Caledonian Leisure works with accommodation providers, coach businesses and
other experienced providers (such as entertainment destinations and theme
parks) to deliver UK-based leisure and experience breaks to its customers. It
comprises two brands, Caledonian Travel (caledoniantravel.com) and UK
Breakaways (ukbreakaways.com). The domestic leisure and experience travel
market has been devastated by the COVID-19 pandemic, but the company was
well-placed to expand as lockdown and travel restrictions eased. A series of
planned investment tranches has helped the company prepare for and capitalise
on the strong demand for UK staycation holidays.
Northern Bloc Dairy and allergen-free ice cream producer April 2022 0.17
Northern Bloc Ice Cream (northern-bloc.com) is an established food brand in
the emerging and rapidly growing vegan market. By focusing on chef quality and
natural ingredients, Northern Bloc has carved out an early mover position in
the dairy and allergen-free ice cream sector. The company's focus on
plant-based alternatives has strong environmental credentials as well as it
being the first ice cream brand to move wholly into sustainable packaging.
Following the initial investment in December 2020, Northern Bloc has grown
rapidly and strengthened its prospects. This further investment provides
additional working capital and funds a new production facility to increase its
resilience, flexibility and margins in the future.
Andersen EV May 2022 0.34
Premium EV chargers
Muller EV Limited (trading as Andersen EV) (andersen-ev.com) is a design-led
manufacturer of premium electric vehicle (EV) chargers. Incorporated in 2016,
this business has secured high profile partnerships with household brands,
establishing an attractive niche position in charging points for the high-end
EV market. This follow-on funding is to further support its premium brand and
product positioning whilst ensuring all new and existing products meet the
most recent and highest safety and compliance standards. Andersen EV has
continued its strong trading performance with revenue up over 300% year on
year.
RotaGeek June 2022 0.28
Workforce management software
RotaGeek (rotageek.com) is a provider of cloud-based enterprise software to
help larger retail, leisure and healthcare organisations to schedule staff
effectively. RotaGeek has proven its ability to solve the scheduling issue for
large retail clients effectively competing due to the strength of its
technologically advanced proposition. The company has made significant
commercial progress since the VCTs first investment nearly doubling ARR. This
investment will help boost ARR further and enable the company to take
advantage further large client opportunities.
Portfolio Realisations during the period
The Company realised its investment in MBI, as detailed below:
Company Business Period of investment Total cash proceeds over the life of the investment / Multiple over cost
Publishing and events business
MBI January 2015 to £7.32 million
June 2022 2.2x cost
The Company realised its investment in MBI for £4.67 million (realised gain
in the period: £0.49 million). Total proceeds received over the life of the
investment were £7.32 million compared to an original investment cost of
£3.28 million, representing a multiple on cost of 2.2x and an IRR of 13.7%.
Further investments after the period-end
The Company made two further investments into existing portfolio companies,
totaling £1.21 million, as detailed below:
Company Business Date of Investment Amount of further investment (£m)
Vivacity June 2022 0.78
Artificial Intelligence and Urban Traffic Control
(UTC) systems
Vivacity (vivacitylabs.com) develops camera sensors with on-board video
analytics software that enables real-time anonymised data gathering of road
transport system usage. It offers city transport authorities the ability to
manage their road infrastructure more effectively, enabling more efficient
monitoring of congestion and pollution levels as well as planning for other
issues, such as the changing nature of road usage (e.g. the increasing number
of cyclists). The technology and software represent a significant leap forward
for local planning authorities which have traditionally relied upon manual
data collection methods. This new investment will help boost the company's
revenues through development of new functionality to enhance its product suite
which can also be installed into the existing asset base.
Bleach Hair Colourants Brand August 2022 0.43
Bleach London Holdings ("Bleach") is an established branded, fast-growing
business which manufactures a range of haircare and colouring products. Bleach
is regarded as a leading authority in the hair colourant market having opened
one of the world's first salons focused on colouring and subsequently launched
its first range of products in 2013. This further investment was part of a
wider £5.5 million investment round alongside existing shareholders and a
strategic partner. The funds will be used to consolidate the brands position
in the UK market as well as drive further expansion and strategic penetration
of the North American market.
Environmental, Social, Governance considerations
The novation of the investment advisory agreement to Gresham House has enabled
the Company to benefit from a dedicated team which is focused on
sustainability tasked with implementing the highest industry standards in this
area. Under the new enlarged investment team, each investment executive is
responsible for their own individual ESG objectives in support of the wider
overarching ESG goals of the Investment Adviser. For further details, Gresham
House published its second Sustainable Investment Report in April 2022, which
can be found on its website at: www.greshamhouse.com
(http://www.greshamhouse.com) .
Gresham House Asset Management Limited
Investment Adviser
5 September 2022
INVESTMENT PORTFOLIO SUMMARY as at 30 June 2022
Market sector Date of investment Total book cost Valuation Like for like valuation increase/(decrease) over period (1) % value of net assets
£'000 £'000
Qualifying investments
Unquoted investments
Preservica Limited Software & computer services Dec-15 4,498 14,156 (3.3)% 13.7%
Seller of proprietary digital archiving software
MPB Group Limited Retailers Jun-16 1,405 5,807 (21.5)% 5.6%
Online marketplace for used photographic and video equipment
EOTH Limited (trading as Equip Outdoor Technologies) Retailers Oct-11 1,000 5,191 (16.6)% 5.0%
Branded outdoor equipment and clothing (including the RAB and Lowe Alpine
brands)
Virgin Wines UK plc (formerly Virgin Wines Holding Company Limited) Retailers Nov-13 58 4,385 (63.4)% 4.2%
Online wine retailer
My Tutorweb Limited (trading as Mytutor) Industrial support services May-17 2,892 4,119 (30.0)% 4.0%
Digital marketplace connecting school pupils seeking one-to-one online
tutoring
End Ordinary Group Limited (trading as Buster and Punch) Retailers Mar-17 1,885 3,762 (9.6)% 3.6%
Industrial inspired lighting and interiors retailer
Master Removers Group 2019 Limited (trading as Anthony Ward Thomas, Industrial support services Dec-14 419 3,609 0.2% 3.5%
Bishopsgate and Aussie Man & Van)
Aspecialist logistics, storage and removals business
Data Discovery Solutions Limited (trading as Active Navigation) Software & computer services Nov-19 1,809 3,215 (4.6)% 3.1%
Provider of global market leading file analysis software for information
governance, security and compliance
Arkk Consulting Limited (trading as Arkk Solutions) Software & computer services May-19 2,069 2,215 1.9% 2.0%
Provider of services and software to enable organisations to remain compliant
with regulatory reporting requirements
Tharstern Group Limited Software & computer services Jul-14 1,377 1,968 29.6% 1.9%
Software based management information systems
Manufacturing Services Investment Limited (trading as Wetsuit Outlet) Retailers Jul-17 2,174 1,743 (15.6)% 1.7%
Online retailer in the water sports market
RotaGeek Limited Software & computer services Aug-18 1,428 1,297 1.0% 1.3%
Workforce management software
Connect Childcare Group Limited Software & computer services Dec-20 1,168 1,295 (5.7)% 1.3%
Nursery management software provider
Vivacity Labs Limited Technology, hardware & equipment Feb-21 1,158 1,158 - 1.1%
Provider of artificial intelligence & urban traffic control systems
IPV Limited Software & computer services Nov-19 890 890 - 0.9%
Provider of media asset software
Spanish Restaurant Group Limited (trading as Tapas Revolution) Travel & Leisure Jan-17 1,453 876 (0.7)% 0.8%
Spanish restaurant chain
Caledonian Leisure Limited Travel & leisure Mar-21 681 825 (36.1)% 0.8%
Provider of UK leisure and experience breaks
Legatics Limited Software & computer services Jun-21 822 822 - 0.8%
SaaS LegalTech software provider
Bleach London Holdings Limited Retailers Dec-19 816 795 (22.5)% 0.8%
Hair colourants brand
Northern Bloc Ice Cream Limited Food producers Dec-20 588 768 (12.9)% 0.7%
Supplier of premium vegan ice cream
Pets' Kitchen Limited (trading as Vet's Klinic) Consumer services Jun-21 763 763 - 0.7%
Veterinary clinics
Proximity Insight Holdings Limited Software & computer services Feb-22 730 730 New investment 0.7%
Super-App used by customer-facing teams of brands and retailers to engage,
inspire and transact with customers
Bidnamic Limited Software & computer services May-22 582 582 New investment 0.6%
SaaS platform for optimisation of search engine marketing spend
CGI Creative Graphics International Limited General industrials Jun-14 1,808 472 (4.6)% 0.5%
Vinyl graphics to global automotive, recreational vehicle and aerospace
markets
Muller EV Limited (trading as Andersen EV) Technology, hardware & equipment Jun-20 809 455 (56.3)% 0.4%
Provider of premium electric vehicle (EV) chargers
RDL Corporation Limited Industrial support services Oct-10 1,558 312 (36.8)% 0.3%
Recruitment consultants for the pharmaceutical, business intelligence and IT
industries
Parsley Box Group plc (formerly Parsley Box Limited) Retailers May-19 807 284 (46.8)% 0.3%
Supplier of home delivered ambient ready meals targeting the over 60s
Kudos Innovations Limited Software & computer services Nov-18 421 93 (11.4)% 0.1%
Online platform that provides and promotes academic research dissemination
Jablite Holdings Limited (in members' voluntary liquidation) Construction and materials Apr-15 502 66 0.3% 0.1%
Manufacturer of expanded polystyrene products
Veritek Global Holdings Limited Industrial support services Jul-13 2,045 - - 0.0%
Maintenance of imaging equipment
Racoon International Group Limited Personal goods Dec-06 1,213 - - 0.0%
Supplier of hair extensions, hair care products and training
BookingTek Limited Software & computer services Oct-16 687 - - 0.0%
Direct booking software for hotel groups
Total qualifying investments 40,515 62,653 60.5%
Non-qualifying investments
Manufacturing Services Investment Limited (trading as Wetsuit Outlet) Retailers Jul-17 571 571 - 0.6%
Online retailer in the water sports market
EOTH Limited (trading as Equip Outdoor Technologies) Retailers Oct-11 298 324 (0.1)% 0.3%
Branded outdoor equipment and clothing (including the RAB and Lowe Alpine
brands)
Total non-qualifying investments 869 895 0.9%
Total investment portfolio 41,384 63,548 61.4%
Current asset investments and Cash at bank and in hand² 40,109 40,109 38.7%
Total investments 81,493 103,657 100.1%
Other assets 177 0.2%
Current liabilities (275) (0.3)%
Net assets 103,559 100.0%
Portfolio split by type
Investment made prior to 2015 VCT rule change 10,278 16,327 25.7%
Investment made after to 2015 VCT rule change 31,106 47,221 74.3%
Investment Adviser's Total 41,384 63,548 100.0%
1-This percentage change in 'like for like' valuations is a comparison of
the 30 June 2022 valuations with the 31 December 2021 valuations (or where a
new investment has been made in the year, the investment amount), having
adjusted for partial disposals, loan stock repayments or new investments in
the period.
2-Disclosed as Current Asset Investments and Cash at bank and in hand within
Current assets in the Balance Sheet below.
Statement of the Directors' Responsibilities
Responsibility statements
In accordance with Disclosure and Transparency Rule (DTR) 4.2.10, Clive
Boothman (Chairman), Bridget Guérin (Chairman of the Nominations and
Remuneration and Management Engagement Committees), and Lucy Armstrong
(Chairman of the Audit Committee), being the Directors of the Company, confirm
that, to the best of their knowledge:
a) the condensed set of financial statements, which has been prepared in
accordance with Financial Reporting Standard 104 "Interim Financial Reporting"
gives a true and fair view of the assets, liabilities, financial position and
profit of the Company, as required by DTR 4.2.10;
b) the Half-Year Management Report which comprises the Chairman's
Statement, Investment Policy, Investment Review and Investment Portfolio
Summary includes a fair review of the information required by DTR 4.2.7, being
an indication of the important events that have occurred during the first six
months of the financial year and their impact on the condensed set of
financial statements;
c) a description of the principal risks and uncertainties facing the
Company for the remaining six months is set out below, in accordance with DTR
4.2.7; and
d) there were no related party transactions in the first six months of the
current financial year that are required to be disclosed in accordance with
DTR 4.2.8.
Principal risks and uncertainties
In accordance with DTR 4.2.7, the Board confirms that the principal risks and
uncertainties facing the Company have not changed materially since the
publication of the Annual Report and Financial Statements for the year ended
31 December 2021 and no changes are anticipated for the remaining six months
of the year. The Board acknowledges that there is regulatory risk and
continues to manage the Company's affairs in such a manner as to comply with
section 274 of the Income Tax Act 2007. The principal risks faced by the
Company are:
· Economic;
· Loss of approval as a Venture Capital Trust;
· Investment and strategic;
· Regulatory;
· Financial and operating;
· Valuations and stock market;
· Asset liquidity;
· Market liquidity;
· Counterparty; and
· Key staff.
A detailed explanation of these risks can be found in the Strategic Report and
in Note 15 on pages 68 to 74 of the Annual Report and Financial Statements for
the year ended 31 December 2021, copies of which can be viewed or downloaded
from the Company's website: www.migvct.co.u (http://www.migvct.co.uk) k.
Going concern
The Board has assessed the Company's operation as a going concern. The
Company's business activities, together with the factors likely to affect its
future development, performance and position are set out in the Half-Year
Management Report. The Directors have satisfied themselves that the Company's
cash position, bolstered by the fund raising that completed at the beginning
of 2022 is adequate to enable the Company to continue as a going concern under
any plausible stress scenario. The portfolio taken as a whole remains
resilient and well-diversified although supply chain constraints and
inflationary pressures are beginning to impact. The major cash outflows of the
Company (namely investments, share buy-backs and dividends) are within the
Company's control.
The Board's assessment of liquidity risk and details of the Company's policies
for managing its capital and financial risks are shown in Notes 15 and 16 on
pages 68 to 74 of the Annual Report and Financial Statements for the year
ended 31 December 2021. Accordingly, the Directors continue to adopt the going
concern basis of accounting in preparing the Half-Year report and annual
financial statements.
Cautionary statement
This report may contain forward looking statements with regards to the
financial condition and results of the Company, which are made in the light of
current economic and business circumstances. Nothing in this report should be
construed as a profit forecast.
For and on behalf of the Board:
Clive Boothman
Chairman
5 September 2022
UNAUDITED CONDENSED FINANCIAL STATEMENTS
Unaudited Condensed Income Statement for the six months ended 30 June 2022
Six months ended 30 June 2022 Six months ended 30 June 2021 Year ended 31 December 2021
(unaudited) (unaudited) (audited)
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £ £ £ £
Net investment portfolio (losses)/gains 9 - (13,302,763) (13,302,763) - 23,845,396 23,845,396 - 36,360,661 36,360,661
Income 4 877,637 - 877,637 629,731 - 629,731 1,710,712 - 1,710,712
Investment Adviser's fees 5 (299,444) (898,331) (1,197,775) (241,546) (724,638) (966,184) (525,873) (1,577,618) (2,103,491)
Other expenses (262,363) - (262,363) (215,240) - (215,240) (455,452) - (455,452)
Profit/(loss) on ordinary activities before taxation 315,830 (14,201,094) (13,885,264) 172,945 23,120,758 23,293,703 729,387 34,783,043 35,512,430
Tax on profit/(loss) on ordinary activities 6 (43,077) 43,077 - (16,823) 16,823 - (53,768) 53,768 -
Profit/(loss) and total comprehensive income 272,753 (14,158,017) (13,885,264) 156,122 23,137,581 23,293,703 675,619 34,836,811 35,512,430
Basic and diluted earnings per share 7 0.21p (10.68)p (10.47)p 0.12p 18.33p 18.45p 0.54p 27.67pp 28.21p
The revenue column of the Income Statement includes all income and expenses.
The capital column accounts for the net investment portfolio (losses)/gains
(unrealised (losses)/gains and realised gains on investments) and the
proportion of the Investment Adviser's fee charged to capital.
The total column is the Statement of Total Comprehensive Income of the Company
prepared in accordance with Financial Reporting Standards ("FRS"). In order to
better reflect the activities of a VCT and in accordance with the 2014
Statement of Recommended Practice ("SORP") updated in April 2021 by the
Association of Investment Companies ("AIC"), supplementary information which
analyses the Income Statement between items of a revenue and capital nature
has been presented alongside the Income Statement. The revenue column of
profit attributable to equity Shareholders is the measure the Directors
believe appropriate in assessing the Company's compliance with certain
requirements set out in Section 274 Income Tax Act 2007.
All the items in the above statement derive from continuing operations of the
Company. No operations were acquired or discontinued in the period/year.
The notes to the unaudited financial statements below form part of these
Half-Year Financial Statements.
Unaudited Condensed Balance Sheet as at 30 June 2022
As at As at As at
Company registration number: 5153931 30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Notes £ £ £
Fixed assets
Investments at fair value 9 63,547,549 72,855,045 79,807,671
Current assets
Debtors and prepayments 176,951 179,615 433,761
Current asset investments 10 37,135,871 30,561,479 24,362,614
Cash at bank 10 2,973,413 4,353,638 8,604,505
40,286,235 35,094,732 33,400,880
Creditors: amounts falling due within one year (274,960) (541,724) (248,076)
Net current assets 40,011,275 34,553,008 33,152,804
Net assets 103,558,824 107,408,053 112,960,475
Capital and reserves
Called up share capital 1,370,810 1,255,380 1,250,775
Capital redemption reserve 40,427 33,522 38,127
Share premium reserve 24,024,221 14,397,509 14,397,509
Revaluation reserve 23,812,751 33,226,958 39,729,600
Special distributable reserve 13,160,557 26,133,899 18,967,400
Realised capital reserve 38,670,899 30,044,190 36,056,813
Revenue reserve 2,479,159 2,316,595 2,520,251
Equity shareholders' funds 103,558,824 107,408,053 112,960,475
Basic and diluted net asset value per share 11 75.55p 85.56p 90.31p
The financial information for the six months ended 30 June 2022 and the six
months ended 30 June 2021 has not been audited.
The notes to the unaudited financial statements below form part of these
Half-Year Financial Statements.
Unaudited Condensed Statement of Changes in Equity
for the six months to 30 June 2022
Non-distributable reserves Distributable reserves
Called up Capital Share Revaluation Special Realised Total
share redemption premium reserve distributable capital Revenue
capital reserve reserve reserve reserve reserve
For the six months ended 30 June 2022 Notes (Note a) (Note b) (Note b)
£ £ £ £ £ £ £ £
At 1 January 2022 1,250,775 38,127 14,397,509 39,729,600 18,967,400 36,056,813 2,520,251 112,960,475
Comprehensive income for the period
(Loss)/profit for the period - - - (14,343,372) - 185,355 272,753 (13,885,264)
Total comprehensive income for the period - - - (14,343,372) - 185,355 272,753 (13,885,264)
Contributions by and distributions to owners
Shares issued under Offer for subscription (Note c) 122,335 - 9,877,665 - - - - 10,000,000
Issue costs and facilitation fees - - (250,953) - (63,450) - - (314,403)
Shares bought back (Note c) (2,300) 2,300 - - (180,462) - - (180,462)
Dividends paid 8 - - - - (4,707,677) - (313,845) (5,021,522)
Total contributions by and distributions to owners 120,035 2,300 9,626,712 - (4,951,589) - (313,845) 4,483,613
Other movements
Realised losses transferred to special reserve (Note a) - - - - (855,254) 855,254 - -
Realisation of previously unrealised gains - - - (1,573,477) - 1,573,477 - -
Total other movements - - - (1,573,477) (855,254) 2,428,731 - -
At 30 June 2022 1,370,810 40,427 24,024,221 23,812,751 13,160,557 38,670,899 2,479,159 103,558,824
Note a: The purpose of this reserve is to fund market purchases of the
Company's own shares, to write off existing and future losses and for any
other corporate purpose. The transfer of £855,254 to the special reserve from
the realised capital reserve above is the total of realised losses incurred by
the Company in the period. As at 30 June 2022, the Company has a special
reserve £13,160,557, all of which is distributable under VCT rules. Reserves
originating from share issues are not distributable under VCT rules if they
arise from share issues that are within three years of the end of an
accounting period in which shares were issued.
Note b: The Realised capital reserve and the Revenue reserve together comprise
the Profit and Loss Account of the Company.
Note c: Under the Company's Offer for Subscription launched on 20 January
2022, 12,233,462 Ordinary shares were allotted on 9 March 2022, raising net
funds of £9,685,597 for the Company. This figure is net of issue costs of
£250,953 and facilitation fees of £63,450.
Note d: During the period, the Company repurchased 230,000 of its own shares
at the prevailing market price for a total cost of £180,462, which were
subsequently cancelled.
Non-distributable reserves Distributable reserves
Called up Capital Share Revaluation Special Realised Total
share redemption premium reserve distributable capital Revenue
For the six months ended 30 June 2021 capital reserve reserve reserve reserve reserve
£ £ £ £ £ £ £ £
At 1 January 2021 Comprehensive income for the period 1,263,366 25,536 14,397,509 12,498,006 27,415,880 26,927,746 2,160,473 84,688,516
Profit for the period - - - 22,351,169 - 786,412 156,122 23,293,703
Total comprehensive income for the period - - - 22,351,169 - 786,412 156,122 23,293,703
Contributions by and distributions to owners
Shares bought back (7,986) 7,986 - - (574,166) - - (574,166)
Total contributions by and distributions to owners (7,986) 7,986 - - (574,166) - - (574,166)
Other movements
Realised losses transferred to special reserve - - - - (707,815) 707,815 - -
Realisation of previously unrealised gains - - - (1,622,217) - 1,622,217 - -
Total other movements - - - (1,622,217) (707,815) 2,330,032 - -
At 30 June 2021 1,255,380 33,522 14,397,509 33,226,958 26,133,899 30,044,190 2,316,595 107,408,053
The notes to the unaudited financial statements below form part of these
Half-Year Financial Statements.
The composition of each of these reserves is explained below:
Called up share capital - The nominal value of shares originally issued
increased for subsequent share issues either via an Offer for Subscription or
reduced due to shares bought back by the Company.
Capital redemption reserve - The nominal value of shares bought back and
cancelled is held in this reserve, so that the Company's capital is
maintained.
Share premium reserve - This reserve contains the excess of gross proceeds
less issue costs over the nominal value of shares allotted under recent Offers
for Subscription.
Revaluation reserve - Increases and decreases in the valuation of investments
held at the period-end are accounted for in this reserve, except to the extent
that the diminution is deemed permanent.
In accordance with stating all investments at fair value through profit and
loss, all such movements through both revaluation and realised capital
reserves are shown within the Income Statement for the period.
Special distributable reserve - This reserve is created from cancellations of
the balances upon the Share premium reserve, which are transferred to this
reserve from time to time. The cost of share buybacks and any realised losses
on the sale or impairment of investments (excluding transaction costs) are
charged to this reserve. 75% of the Investment Adviser fee expense, and the
related tax effect, that are charged to the realised capital reserve are
transferred to this reserve. This reserve will also be charged any
facilitation fee payments to financial advisers, which arose as part of the
Offer for Subscription.
Realised capital reserve - The following are accounted for in this reserve:
• Gains and losses on realisation of investments;
• Permanent diminution in value of investments;
• Transaction costs incurred in the acquisition and disposal of investments;
• 75% of the Investment Adviser fee expense and 100% of any performance
incentive fee payable, together with the related tax effect to this reserve in
accordance with the policies; and
• Capital dividends paid.
Revenue reserve - Income and expenses that are revenue in nature are accounted
for in this reserve, as well as 25% of the Investment Adviser fee together
with the related tax effect, as well as income dividends paid that are
classified as revenue in nature.
Unaudited Condensed Statement of Changes in Equity
for the six months to 30 June 2022
Non-distributable reserves Distributable reserves
Called up Capital Share Revaluation Special Realised Total
share redemption premium reserve distributable capital Revenue
capital reserve reserve reserve reserve reserve
For the six months ended 30 June 2022 Notes (Note a) (Note b) (Note b)
£ £ £ £ £ £ £ £
At 1 January 2022 1,250,775 38,127 14,397,509 39,729,600 18,967,400 36,056,813 2,520,251 112,960,475
Comprehensive income for the period
(Loss)/profit for the period - - - (14,343,372) - 185,355 272,753 (13,885,264)
Total comprehensive income for the period - - - (14,343,372) - 185,355 272,753 (13,885,264)
Contributions by and distributions to owners
Shares issued under Offer for subscription (Note c) 122,335 - 9,877,665 - - - - 10,000,000
Issue costs and facilitation fees - - (250,953) - (63,450) - - (314,403)
Shares bought back (Note c) (2,300) 2,300 - - (180,462) - - (180,462)
Dividends paid 8 - - - - (4,707,677) - (313,845) (5,021,522)
Total contributions by and distributions to owners 120,035 2,300 9,626,712 - (4,951,589) - (313,845) 4,483,613
Other movements
Realised losses transferred to special reserve (Note a) - - - - (855,254) 855,254 - -
Realisation of previously unrealised gains - - - (1,573,477) - 1,573,477 - -
Total other movements - - - (1,573,477) (855,254) 2,428,731 - -
At 30 June 2022 1,370,810 40,427 24,024,221 23,812,751 13,160,557 38,670,899 2,479,159 103,558,824
Note a: The purpose of this reserve is to fund market purchases of the
Company's own shares, to write off existing and future losses and for any
other corporate purpose. The transfer of £855,254 to the special reserve from
the realised capital reserve above is the total of realised losses incurred by
the Company in the period. As at 30 June 2022, the Company has a special
reserve £13,160,557, all of which is distributable under VCT rules. Reserves
originating from share issues are not distributable under VCT rules if they
arise from share issues that are within three years of the end of an
accounting period in which shares were issued.
Note b: The Realised capital reserve and the Revenue reserve together comprise
the Profit and Loss Account of the Company.
Note c: Under the Company's Offer for Subscription launched on 20 January
2022, 12,233,462 Ordinary shares were allotted on 9 March 2022, raising net
funds of £9,685,597 for the Company. This figure is net of issue costs of
£250,953 and facilitation fees of £63,450.
Note d: During the period, the Company repurchased 230,000 of its own shares
at the prevailing market price for a total cost of £180,462, which were
subsequently cancelled.
Non-distributable reserves Distributable reserves
Called up Capital Share Revaluation Special Realised Total
share redemption premium reserve distributable capital Revenue
For the six months ended 30 June 2021 capital reserve reserve reserve reserve reserve
£ £ £ £ £ £ £ £
At 1 January 2021 Comprehensive income for the period 1,263,366 25,536 14,397,509 12,498,006 27,415,880 26,927,746 2,160,473 84,688,516
Profit for the period - - - 22,351,169 - 786,412 156,122 23,293,703
Total comprehensive income for the period - - - 22,351,169 - 786,412 156,122 23,293,703
Contributions by and distributions to owners
Shares bought back (7,986) 7,986 - - (574,166) - - (574,166)
Total contributions by and distributions to owners (7,986) 7,986 - - (574,166) - - (574,166)
Other movements
Realised losses transferred to special reserve - - - - (707,815) 707,815 - -
Realisation of previously unrealised gains - - - (1,622,217) - 1,622,217 - -
Total other movements - - - (1,622,217) (707,815) 2,330,032 - -
At 30 June 2021 1,255,380 33,522 14,397,509 33,226,958 26,133,899 30,044,190 2,316,595 107,408,053
The notes to the unaudited financial statements below form part of these
Half-Year Financial Statements.
The composition of each of these reserves is explained below:
Called up share capital - The nominal value of shares originally issued
increased for subsequent share issues either via an Offer for Subscription or
reduced due to shares bought back by the Company.
Capital redemption reserve - The nominal value of shares bought back and
cancelled is held in this reserve, so that the Company's capital is
maintained.
Share premium reserve - This reserve contains the excess of gross proceeds
less issue costs over the nominal value of shares allotted under recent Offers
for Subscription.
Revaluation reserve - Increases and decreases in the valuation of investments
held at the period-end are accounted for in this reserve, except to the extent
that the diminution is deemed permanent.
In accordance with stating all investments at fair value through profit and
loss, all such movements through both revaluation and realised capital
reserves are shown within the Income Statement for the period.
Special distributable reserve - This reserve is created from cancellations of
the balances upon the Share premium reserve, which are transferred to this
reserve from time to time. The cost of share buybacks and any realised losses
on the sale or impairment of investments (excluding transaction costs) are
charged to this reserve. 75% of the Investment Adviser fee expense, and the
related tax effect, that are charged to the realised capital reserve are
transferred to this reserve. This reserve will also be charged any
facilitation fee payments to financial advisers, which arose as part of the
Offer for Subscription.
Realised capital reserve - The following are accounted for in this reserve:
• Gains and losses on realisation of investments;
• Permanent diminution in value of investments;
• Transaction costs incurred in the acquisition and disposal of investments;
• 75% of the Investment Adviser fee expense and 100% of any performance
incentive fee payable, together with the related tax effect to this reserve in
accordance with the policies; and
• Capital dividends paid.
Revenue reserve - Income and expenses that are revenue in nature are accounted
for in this reserve, as well as 25% of the Investment Adviser fee together
with the related tax effect, as well as income dividends paid that are
classified as revenue in nature.
( )
(1 ) Source: Panmure Gordon (mid-price). Note that the Share price and
cumulative total return (share price basis) at 30 June 2022 is by reference to
the last announced NAV per share at 31 March 2022 of 82.18 pence and does not
yet reflect the fall in NAV per share at 30 June 2022.
(2 ) Cumulative total return per share comprises either the NAV per share
(NAV basis) or the mid-market price per share (share price basis), plus
cumulative dividends paid since launch in 2004.
(3 ) The share price at 31 December 2021 has been adjusted for a 4.00 pence
dividend paid after the year-end on 7 January 2022 which was ex-dividend at 31
December 2021.
(4 ) The Board declared an interim dividend of 4.00 pence per share in
respect of the year ending 31 December 2022. The dividend was paid to
Shareholders on 15 July 2022. The share price at 30 June 2022 has been
adjusted to add back this dividend as the listed share price was quoted ex
this dividend at the period-end.
Dividends paid post period-end in respect of year ending 31 December 2022
An interim capital dividend of 4.00 pence per share was paid on 15 July 2022
to Shareholders on the Register on 10 June 2022.
Detailed performance data, including a table of dividends paid to date for all
share classes and fundraising rounds, is shown in the Performance Data
appendix of the Half Year Report. The tables, which give information by
allotment date on NAVs and dividends paid per share, are also available on the
Company's website at www.migvct.co.uk (http://www.migvct.co.uk) where they can
be accessed by clicking on "table" under "Reviewing the performance of your
investment" on the home page.
( )
( )
Chairman's Statement
I present the Company's Half-Year Report for the six months to 30 June 2022.
Overview
The first six months of the Company's financial year have been notable for
significant economic disruption both domestically and internationally.
December was a high watermark in many technology and growth markets, and since
then we have experienced a number of significant global events such as the
Russian invasion of Ukraine, the return of inflation to 40-year highs and
political turmoil in the UK and across Europe. All of this has led to marked
volatility across markets and a general de-rating of growth stocks.
Performance
As a consequence of the factors described above, the Company has experienced a
negative NAV total return of (11.9)% over the six months to 30 June 2022
(2021: 27.6%).
The decline in NAV has been largely driven by market multiples rather than
underlying trading performance at this stage, as markets have factored in the
likely impact of inflation and higher interest rates on consumer spending and
business investment.
The negative NAV total return for the period was principally comprised of
unrealised falls in the value of investments still held, tempered somewhat by
the successful exit from Media Business Insight ("MBI") and deferred proceeds
received from the realisation of Red Paddle in December 2021.
At the period-end, the Company was ranked 3rd out of 40 Generalist VCTs over
five years and 2nd out of 31 over ten years, in the Association of Investment
Companies' analysis of NAV Cumulative Total Return. Shareholders should note
that, due to the lag in the disclosed performance figures available each
quarter, the AIC ranking figures do not fully reflect the final NAV movement
to 30 June disclosed by this Report, or those of our peers.
Portfolio
In the face of the current testing environment the portfolio has, thus far,
remained relatively resilient in terms of underlying trading. Nevertheless,
the investment adviser has started to see indicators of customer retrenchment
as consumer confidence declines. There was a fall of £13.30 million in the
overall value of the portfolio across the six months to 30 June (2021:
increase of £23.84 million), or a fall of (16.7)% on a like-for-like basis
compared to the opening value of the portfolio at 1 January 2022. A
significant proportion of this asset movement reflected a value decline in the
AIM-listed Virgin Wines investment which, in spite of positive news flows and
the relative outperformance of its peers, has suffered from the de-rating of
its sector.
The Company completed one successful exit during the period, generating
proceeds of £4.67 million from the sale of Media Business Insight. Returns
received over the life of this investment amounted to a 2.2x multiple of cost
and an IRR of 13.7%. Further proceeds from loan repayments and deferred
consideration amounted to £0.66 million.
Global supply shortages remain a significant factor and are expected to
continue to cause disruption going forward. The economic backdrop falls
largely outside of the experience of this generation of management teams and
advisers. As such, the experience of seasoned investment managers will be
increasingly important in the coming months.
Investment activity during the period has been strong, with two new and four
follow-on investments completed, totalling £2.37 million. History suggests
that, although the economic backdrop is challenging, investing throughout the
cycle is a fruitful strategy, with investments made in previous downturns in
many cases subsequently yielding very strong returns.
During the six months under review, the Company invested a total of £1.31
million into two new investments: a retail software provider (Proximity
Insight) and a marketing technology business (Bidnamic).
In addition, four follow-on investments totalling £1.06 million were made
into a provider of UK leisure and experience breaks (Caledonian), a dairy and
allergen-free ice cream brand (Northern Bloc), a provider of premium EV
chargers (Andersen EV) and a workforce management software business
(RotaGeek). We expect follow-on investments to continue to be a feature of the
growth capital investments as they seek to achieve scale and move towards
profitability.
Since the period-end, the Company has also made follow-on investments of
£0.78 million into an AI and Urban Traffic Control business (Vivacity) and
£0.43 million into a hair colourants brand (Bleach London).
During such turbulent times, doing everything in our power to support the
portfolio is an imperative. The Investment Adviser is making full use of its
Talent Management teams in helping to support management teams across the
portfolio. Such specialist skills are a key benefit of the move to Gresham
House.
Details of this investment activity and the performance of the portfolio are
contained in the Investment Adviser's Review and the Investment Portfolio
Summary.
Revenue account
The results for the period are set out in the Unaudited Condensed Income
Statement and show a revenue return (after tax) of 0.21 pence per share (2021:
0.12 pence per share). The revenue return for the period of £0.27 million has
increased from last year's figure of £0.16 million. This is primarily the
result of a significant loan interest receipt upon the sale of Media Business
Insight.
Dividends
The Board continues to be committed to providing an attractive dividend stream
to Shareholders and was pleased to declare an Interim dividend of 4.00 pence
per share for the year ending 31 December 2022.
This dividend was paid on 15 July 2022, to Shareholders on the Register on 10
June 2022, and brought cumulative dividends paid per share since inception in
2004 to 152.80 pence.
A second interim dividend in respect of the year ending 31 December 2022 of
4.00 pence per share has been declared for payment on 7 November 2022 for
those Shareholders on the Register of Members at 16 September 2022.
The Company's ongoing target of paying a dividend of at least 4.00 pence per
share in respect of each financial year has been achieved and often exceeded
in all 12 years since it was established. Whilst the Board still believes this
dividend target is attainable, it should be noted that the continued movement
of the portfolio to a larger share of younger growth capital investments could
lead to increased volatility, which may affect the return in any given year.
To the extent that dividends are paid other than out of income or from gains
on investments, for instance out of special distributable reserves,
Shareholders should note this may result in a reduction in NAV over the
period.
Fundraising
As announced recently, the Board intends to launch offers for subscription for
new ordinary shares in the 2022/23 tax year. The Board expects to convene a
general meeting of Shareholders to seek the necessary authority to allot
shares and disapply pre-emption rights in connection with the fundraising.
Shareholders will receive a circular in September confirming the amount to be
raised and the purposes for which the funds will be used in advance of that
meeting for consideration. We urge all Shareholders to submit their proxy
votes online in respect of the resolutions proposed via
https://www-uk.computershare.com/investor/
(https://www-uk.computershare.com/investor/) .
The Board expects to be in a position to launch the offer for subscription in
late September, full details of which will be contained in the prospectus and
on the Company's website: www.migvct.co.uk.
Liquidity
The Board continues to monitor credit risk in respect of its cash and near
cash resources and to prioritise the security and protection of the Company's
capital. Cash and liquidity fund balances as at 30 June 2022 amounted to
£40.11 million representing 38.7% of net assets. After the period-end,
following the payment of a 4.00 pence per share dividend, the pro-forma level
of liquidity will be £34.62 million (35.3% of net assets).
Share buybacks
During the six months to 30 June 2022, the Company bought back and cancelled
230,000 of its own shares, representing 0.2% (2020: 0.6%) of the shares in
issue at the beginning of the period, at a total cost of £0.18 million (2020:
£0.57 million), inclusive of expenses.
It is the Company's policy to cancel all shares bought back in this way. The
Board regularly reviews its buyback policy, where its priority is to act
prudently and in the interest of remaining Shareholders, whilst considering
other factors, such as levels of liquidity and reserves, market conditions and
applicable law and regulations. Under this policy, the Company seeks to
maintain the discount at which the Company's shares trade at approximately 5%
below the latest published NAV.
Shareholder communications
May I remind you that the Company has its own website which is available at:
www.migvct.co.uk (http://www.migvct.co.uk)
The Investment Adviser last held its Shareholder Event virtually on behalf of
all four Mobeus VCTs in early 2022. The event was well received and the
Investment Adviser plans to hold another event in 2023. Further details will
be circulated to Shareholders and shown on the Company's website in due
course.
Fraud Warning
We are aware of a number of cases where Shareholders are being fraudulently
contacted or are being subjected to attempts of identity fraud. Shareholders
should remain vigilant of all potential financial scams or requests for them
to disclose personal data. The Board strongly recommends Shareholders take
time to read the Company's Fraud warning section, including details of who to
contact, contained within the Information for Shareholders section.
Outlook
The economic backdrop for the next twelve months is likely to be challenging
although this can also provide a good opportunity to make high quality
investments and build strategic stakes in businesses with great potential for
the future. The exit environment is likely to dampen somewhat, although this
is not foreseen to be a significant issue given that the VCT fund is not
time-limited. On the whole, your Board is confident that, with continued and
targeted support, the portfolio remains on track to overcome these challenges
and achieve its growth ambitions.
Clive Boothman
Chairman
5 September 2022
Investment Policy
The investment policy is designed to meet the Company's objective.
Investments
The Company invests primarily in a diverse portfolio of UK unquoted companies.
Investments are made selectively across a number of sectors, principally in
established companies. Investments are usually structured as part loan stock
and part equity in order to produce a regular income stream and to generate
capital gains from realisations.
There are a number of conditions within the VCT legislation which need to be
met by the Company and which may change from time to time. The Company will
seek to make investments in accordance with the requirements of prevailing VCT
legislation.
Asset allocation and risk diversification policies, including the size and
type of investments the Company makes, are determined in part by the
requirements of prevailing VCT legislation. No single investment may represent
more than 15% (by VCT tax value) of the Company's total investments at the
date of investment.
Liquidity
The Company's cash and liquid funds are held in a portfolio of readily
realisable interest-bearing investments, deposit and current accounts, of
varying maturities, subject to the overriding criterion that the risk of loss
of capital be minimised.
Borrowing
The Company's Articles of Association permit borrowing of up to 10% of the
adjusted capital and reserves (as defined therein). However, the Company has
never borrowed and the Board would only consider doing so in exceptional
circumstances.
Investment Review
Portfolio review
Demand for growth capital investment remains strong and there continues to be
a healthy pipeline of investment opportunities. The current economic climate,
whilst challenging for businesses across the portfolio, also presents
opportunities for further investment in new and existing portfolio companies.
The portfolio movements in the period are summarised as follows:
2022 2021
£m £m
Opening portfolio value 79.81 51.14
New and follow-on investments 2.37 4.47
Disposal proceeds (5.33) (6.61)
Net realised gains 1.04 1.50
Unrealised valuation movements (14.34) 22.35
Portfolio value at 30 June 63.55 72.85
The six-month period to 30 June 2022 has seen volatility translate to a
decline in market ratings. The portfolio value has reduced as a result of
this, in spite of largely resilient underlying trading performances. The
Company made two new growth capital investments during the period: £0.73
million into Proximity Insight and £0.58 million into Bidnamic. Both these
companies are retail technology businesses.
The Company also achieved a satisfying exit from MBI during the period,
receiving a total of £4.67 million in proceeds, contributing to total
receipts of £5.33 million during the period.
The investment and divestment activity during the period has further increased
the proportion of the portfolio comprised of investments made since the 2015
VCT rule change to 74.3% by value at the period-end (31 December 2021: 63.6%).
After the period-end, the Company invested a further £0.78 million into
Vivacity and a further £0.43 million into Bleach, both of which are existing
portfolio companies. Vivacity is a developer of artificial intelligence and
Urban Traffic Control systems. Following its initial series A funding in
2021, the business has doubled the size of its team and partnered with leading
firms in the automotive and environmental measurement industries. Bleach
manufactures a range of haircare and colouring products. The funds will be
used to consolidate the brand's position in the UK market as well as drive
further expansion and strategic penetration of the North American market.
The portfolio valuation changes in the period are summarised as follows:
Investment Portfolio Capital Movement 2022 2021
£m £m
Increase in the value of unrealised investments 0.51 22.76
Decrease in the value of unrealised investments (14.85) (0.41)
Net (decrease)/ increase in the value of unrealised investments (14.34) 22.35
Realised gains 1.04 1.57
Realised losses - (0.07)
Net realised gains in the period 1.04 1.50
Net investment portfolio movement in the period (13.30) 23.85
Valuation changes of portfolio investments still held
From the total value increases of £0.51 million within the portfolio, the
principal movement was in Tharstern: £0.45 million. Improved trading
through new business wins and cost controls have enhanced its valuation.
The main reductions within total valuation decreases of (£14.85) million,
were in Virgin Wines £(7.60) million; MyTutor £(1.77) million and MPB
£(1.59) million. Virgin Wines has consistently delivered robust trading
performance relative to its peers and continued to release positive news flow.
Nevertheless, the value of the AIM-listed stock has been impacted by the
general de-rating of its sector.
MyTutor has generated strong revenues in the year to date, up significantly
year on year. However, a significant reduction in comparator multiples has
reduced the value of this investment. Finally, MPB has seen a reduction in
benchmark multiples and accelerated its cash spend for growth, but is yet to
see this translate into revenues for valuation purposes.
Realised gains and deferred consideration receipts
The Company realised its investment in MBI during the period under review,
generating gains in the period of £0.49 million. These contributed to a
multiple of cost of 2.2x over the life of the investment. The Company also
received deferred proceeds totalling £0.55 million from the realisations of
Red Paddle and Vectair in previous periods.
Investment portfolio yield and loan capital repayments
In the period under review, the Company received the following amounts in loan
interest and dividend income:
Investment Portfolio Yield 2022 2021
£m £m
Interest received in the period 0.78 0.54
Dividends received in the period 0.09 0.08
Total portfolio income in the period(1) 0.87 0.62
Portfolio Value at 30 June 63.55 72.85
Portfolio Income Yield (Income as a % of Portfolio Value at 30 June) 1.4% 0.9%
(1 ) Total portfolio income in the period is generated solely from investee
companies within the portfolio. See Note 4 of the Financial Statements for all
income receivable by the Company.
In addition to realisation proceeds and deferred consideration receipts
outlined earlier, the Company also received loan stock repayments of £0.12
million from MBI earlier in the period.
New investments during the period
The Company made two new investments totaling £1.31 million during the
period, as detailed below:
Company Business Date of Investment Amount of new investment (£m)
Proximity Insight 0.73
Retail software February 2022
Proximity Insight (proximityinsight.com) is a retail technology business that
offers a 'Super-App' that is used by the customer-facing teams of brands and
retailers to engage, inspire and transact with customers. Headquartered in
London with offices in New York and Sydney, Proximity Insight has a global
client base that includes over 20 brands, boutiques and department stores in
fashion, beauty, jewellery, electronics and homewares. These clients use
Proximity Insight's platform to blur the lines between physical and digital
retail, enhancing the customer experience and improving the lifetime value of
their customers by upwards of 35%. The business grew annual recurring revenue
by 117% to £2.2 million in 2021, and the investment will support Proximity
Insight's continued product development and international growth. The
investment was made across all six VCTs advised and managed by Gresham House,
including the two Baronsmead VCTs.
Bidnamic May 2022 0.58
Marketing technology business
Lads Store Limited, trading as "Bidnamic" (www.bidnamic.com) is a marketing
technology business that offers a SaaS platform for online retailers to
optimise their search engine marketing spend. The technology was all developed
internally and uses bespoke machine learning algorithms to automate the
management and optimisation of online retailers' Google shopping spend. The
ARR of the business has grown substantially over the last two years and this
is projected to continue. The investment round will be used to further enhance
the product's capabilities and drive continued ARR growth through expanding
the sales & marketing team and building a presence in North America. The
investment was made across all six VCTs advised and managed by Gresham House,
including the two Baronsmead VCTs.
Further investments during the period
The Company made four further investments into existing portfolio companies,
totaling £1.06 million, as detailed below:
Company Business Date of Investment Amount of further investment (£m)
Caledonian Leisure January / February 2022 0.27
UK Leisure and experience breaks
Caledonian Leisure works with accommodation providers, coach businesses and
other experienced providers (such as entertainment destinations and theme
parks) to deliver UK-based leisure and experience breaks to its customers. It
comprises two brands, Caledonian Travel (caledoniantravel.com) and UK
Breakaways (ukbreakaways.com). The domestic leisure and experience travel
market has been devastated by the COVID-19 pandemic, but the company was
well-placed to expand as lockdown and travel restrictions eased. A series of
planned investment tranches has helped the company prepare for and capitalise
on the strong demand for UK staycation holidays.
Northern Bloc Dairy and allergen-free ice cream producer April 2022 0.17
Northern Bloc Ice Cream (northern-bloc.com) is an established food brand in
the emerging and rapidly growing vegan market. By focusing on chef quality and
natural ingredients, Northern Bloc has carved out an early mover position in
the dairy and allergen-free ice cream sector. The company's focus on
plant-based alternatives has strong environmental credentials as well as it
being the first ice cream brand to move wholly into sustainable packaging.
Following the initial investment in December 2020, Northern Bloc has grown
rapidly and strengthened its prospects. This further investment provides
additional working capital and funds a new production facility to increase its
resilience, flexibility and margins in the future.
Andersen EV May 2022 0.34
Premium EV chargers
Muller EV Limited (trading as Andersen EV) (andersen-ev.com) is a design-led
manufacturer of premium electric vehicle (EV) chargers. Incorporated in 2016,
this business has secured high profile partnerships with household brands,
establishing an attractive niche position in charging points for the high-end
EV market. This follow-on funding is to further support its premium brand and
product positioning whilst ensuring all new and existing products meet the
most recent and highest safety and compliance standards. Andersen EV has
continued its strong trading performance with revenue up over 300% year on
year.
RotaGeek June 2022 0.28
Workforce management software
RotaGeek (rotageek.com) is a provider of cloud-based enterprise software to
help larger retail, leisure and healthcare organisations to schedule staff
effectively. RotaGeek has proven its ability to solve the scheduling issue for
large retail clients effectively competing due to the strength of its
technologically advanced proposition. The company has made significant
commercial progress since the VCTs first investment nearly doubling ARR. This
investment will help boost ARR further and enable the company to take
advantage further large client opportunities.
Portfolio Realisations during the period
The Company realised its investment in MBI, as detailed below:
Company Business Period of investment Total cash proceeds over the life of the investment / Multiple over cost
Publishing and events business
MBI January 2015 to £7.32 million
June 2022 2.2x cost
The Company realised its investment in MBI for £4.67 million (realised gain
in the period: £0.49 million). Total proceeds received over the life of the
investment were £7.32 million compared to an original investment cost of
£3.28 million, representing a multiple on cost of 2.2x and an IRR of 13.7%.
Further investments after the period-end
The Company made two further investments into existing portfolio companies,
totaling £1.21 million, as detailed below:
Company Business Date of Investment Amount of further investment (£m)
Vivacity June 2022 0.78
Artificial Intelligence and Urban Traffic Control
(UTC) systems
Vivacity (vivacitylabs.com) develops camera sensors with on-board video
analytics software that enables real-time anonymised data gathering of road
transport system usage. It offers city transport authorities the ability to
manage their road infrastructure more effectively, enabling more efficient
monitoring of congestion and pollution levels as well as planning for other
issues, such as the changing nature of road usage (e.g. the increasing number
of cyclists). The technology and software represent a significant leap forward
for local planning authorities which have traditionally relied upon manual
data collection methods. This new investment will help boost the company's
revenues through development of new functionality to enhance its product suite
which can also be installed into the existing asset base.
Bleach Hair Colourants Brand August 2022 0.43
Bleach London Holdings ("Bleach") is an established branded, fast-growing
business which manufactures a range of haircare and colouring products. Bleach
is regarded as a leading authority in the hair colourant market having opened
one of the world's first salons focused on colouring and subsequently launched
its first range of products in 2013. This further investment was part of a
wider £5.5 million investment round alongside existing shareholders and a
strategic partner. The funds will be used to consolidate the brands position
in the UK market as well as drive further expansion and strategic penetration
of the North American market.
Environmental, Social, Governance considerations
The novation of the investment advisory agreement to Gresham House has enabled
the Company to benefit from a dedicated team which is focused on
sustainability tasked with implementing the highest industry standards in this
area. Under the new enlarged investment team, each investment executive is
responsible for their own individual ESG objectives in support of the wider
overarching ESG goals of the Investment Adviser. For further details, Gresham
House published its second Sustainable Investment Report in April 2022, which
can be found on its website at: www.greshamhouse.com
(http://www.greshamhouse.com) .
Gresham House Asset Management Limited
Investment Adviser
5 September 2022
INVESTMENT PORTFOLIO SUMMARY as at 30 June 2022
Market sector Date of investment Total book cost Valuation Like for like valuation increase/(decrease) over period (1) % value of net assets
£'000 £'000
Qualifying investments
Unquoted investments
Preservica Limited Software & computer services Dec-15 4,498 14,156 (3.3)% 13.7%
Seller of proprietary digital archiving software
MPB Group Limited Retailers Jun-16 1,405 5,807 (21.5)% 5.6%
Online marketplace for used photographic and video equipment
EOTH Limited (trading as Equip Outdoor Technologies) Retailers Oct-11 1,000 5,191 (16.6)% 5.0%
Branded outdoor equipment and clothing (including the RAB and Lowe Alpine
brands)
Virgin Wines UK plc (formerly Virgin Wines Holding Company Limited) Retailers Nov-13 58 4,385 (63.4)% 4.2%
Online wine retailer
My Tutorweb Limited (trading as Mytutor) Industrial support services May-17 2,892 4,119 (30.0)% 4.0%
Digital marketplace connecting school pupils seeking one-to-one online
tutoring
End Ordinary Group Limited (trading as Buster and Punch) Retailers Mar-17 1,885 3,762 (9.6)% 3.6%
Industrial inspired lighting and interiors retailer
Master Removers Group 2019 Limited (trading as Anthony Ward Thomas, Industrial support services Dec-14 419 3,609 0.2% 3.5%
Bishopsgate and Aussie Man & Van)
A specialist logistics, storage and removals business
Data Discovery Solutions Limited (trading as Active Navigation) Software & computer services Nov-19 1,809 3,215 (4.6)% 3.1%
Provider of global market leading file analysis software for information
governance, security and compliance
Arkk Consulting Limited (trading as Arkk Solutions) Software & computer services May-19 2,069 2,215 1.9% 2.0%
Provider of services and software to enable organisations to remain compliant
with regulatory reporting requirements
Tharstern Group Limited Software & computer services Jul-14 1,377 1,968 29.6% 1.9%
Software based management information systems
Manufacturing Services Investment Limited (trading as Wetsuit Outlet) Retailers Jul-17 2,174 1,743 (15.6)% 1.7%
Online retailer in the water sports market
RotaGeek Limited Software & computer services Aug-18 1,428 1,297 1.0% 1.3%
Workforce management software
Connect Childcare Group Limited Software & computer services Dec-20 1,168 1,295 (5.7)% 1.3%
Nursery management software provider
Vivacity Labs Limited Technology, hardware & equipment Feb-21 1,158 1,158 - 1.1%
Provider of artificial intelligence & urban traffic control systems
IPV Limited Software & computer services Nov-19 890 890 - 0.9%
Provider of media asset software
Spanish Restaurant Group Limited (trading as Tapas Revolution) Travel & Leisure Jan-17 1,453 876 (0.7)% 0.8%
Spanish restaurant chain
Caledonian Leisure Limited Travel & leisure Mar-21 681 825 (36.1)% 0.8%
Provider of UK leisure and experience breaks
Legatics Limited Software & computer services Jun-21 822 822 - 0.8%
SaaS LegalTech software provider
Bleach London Holdings Limited Retailers Dec-19 816 795 (22.5)% 0.8%
Hair colourants brand
Northern Bloc Ice Cream Limited Food producers Dec-20 588 768 (12.9)% 0.7%
Supplier of premium vegan ice cream
Pets' Kitchen Limited (trading as Vet's Klinic) Consumer services Jun-21 763 763 - 0.7%
Veterinary clinics
Proximity Insight Holdings Limited Software & computer services Feb-22 730 730 New investment 0.7%
Super-App used by customer-facing teams of brands and retailers to engage,
inspire and transact with customers
Bidnamic Limited Software & computer services May-22 582 582 New investment 0.6%
SaaS platform for optimisation of search engine marketing spend
CGI Creative Graphics International Limited General industrials Jun-14 1,808 472 (4.6)% 0.5%
Vinyl graphics to global automotive, recreational vehicle and aerospace
markets
Muller EV Limited (trading as Andersen EV) Technology, hardware & equipment Jun-20 809 455 (56.3)% 0.4%
Provider of premium electric vehicle (EV) chargers
RDL Corporation Limited Industrial support services Oct-10 1,558 312 (36.8)% 0.3%
Recruitment consultants for the pharmaceutical, business intelligence and IT
industries
Parsley Box Group plc (formerly Parsley Box Limited) Retailers May-19 807 284 (46.8)% 0.3%
Supplier of home delivered ambient ready meals targeting the over 60s
Kudos Innovations Limited Software & computer services Nov-18 421 93 (11.4)% 0.1%
Online platform that provides and promotes academic research dissemination
Jablite Holdings Limited (in members' voluntary liquidation) Construction and materials Apr-15 502 66 0.3% 0.1%
Manufacturer of expanded polystyrene products
Veritek Global Holdings Limited Industrial support services Jul-13 2,045 - - 0.0%
Maintenance of imaging equipment
Racoon International Group Limited Personal goods Dec-06 1,213 - - 0.0%
Supplier of hair extensions, hair care products and training
BookingTek Limited Software & computer services Oct-16 687 - - 0.0%
Direct booking software for hotel groups
Total qualifying investments 40,515 62,653 60.5%
Non-qualifying investments
Manufacturing Services Investment Limited (trading as Wetsuit Outlet) Retailers Jul-17 571 571 - 0.6%
Online retailer in the water sports market
EOTH Limited (trading as Equip Outdoor Technologies) Retailers Oct-11 298 324 (0.1)% 0.3%
Branded outdoor equipment and clothing (including the RAB and Lowe Alpine
brands)
Total non-qualifying investments 869 895 0.9%
Total investment portfolio 41,384 63,548 61.4%
Current asset investments and Cash at bank and in hand² 40,109 40,109 38.7%
Total investments 81,493 103,657 100.1%
Other assets 177 0.2%
Current liabilities (275) (0.3)%
Net assets 103,559 100.0%
Portfolio split by type
Investment made prior to 2015 VCT rule change 10,278 16,327 25.7%
Investment made after to 2015 VCT rule change 31,106 47,221 74.3%
Investment Adviser's Total 41,384 63,548 100.0%
1 - This percentage change in 'like for like' valuations is a comparison of
the 30 June 2022 valuations with the 31 December 2021 valuations (or where a
new investment has been made in the year, the investment amount), having
adjusted for partial disposals, loan stock repayments or new investments in
the period.
2 - Disclosed as Current Asset Investments and Cash at bank and in hand within
Current assets in the Balance Sheet below.
Statement of the Directors' Responsibilities
Responsibility statements
In accordance with Disclosure and Transparency Rule (DTR) 4.2.10, Clive
Boothman (Chairman), Bridget Guérin (Chairman of the Nominations and
Remuneration and Management Engagement Committees), and Lucy Armstrong
(Chairman of the Audit Committee), being the Directors of the Company, confirm
that, to the best of their knowledge:
a) the condensed set of financial statements, which has been prepared in
accordance with Financial Reporting Standard 104 "Interim Financial Reporting"
gives a true and fair view of the assets, liabilities, financial position and
profit of the Company, as required by DTR 4.2.10;
b) the Half-Year Management Report which comprises the Chairman's
Statement, Investment Policy, Investment Review and Investment Portfolio
Summary includes a fair review of the information required by DTR 4.2.7, being
an indication of the important events that have occurred during the first six
months of the financial year and their impact on the condensed set of
financial statements;
c) a description of the principal risks and uncertainties facing the
Company for the remaining six months is set out below, in accordance with DTR
4.2.7; and
d) there were no related party transactions in the first six months of the
current financial year that are required to be disclosed in accordance with
DTR 4.2.8.
Principal risks and uncertainties
In accordance with DTR 4.2.7, the Board confirms that the principal risks and
uncertainties facing the Company have not changed materially since the
publication of the Annual Report and Financial Statements for the year ended
31 December 2021 and no changes are anticipated for the remaining six months
of the year. The Board acknowledges that there is regulatory risk and
continues to manage the Company's affairs in such a manner as to comply with
section 274 of the Income Tax Act 2007. The principal risks faced by the
Company are:
· Economic;
· Loss of approval as a Venture Capital Trust;
· Investment and strategic;
· Regulatory;
· Financial and operating;
· Valuations and stock market;
· Asset liquidity;
· Market liquidity;
· Counterparty; and
· Key staff.
A detailed explanation of these risks can be found in the Strategic Report and
in Note 15 on pages 68 to 74 of the Annual Report and Financial Statements for
the year ended 31 December 2021, copies of which can be viewed or downloaded
from the Company's website: www.migvct.co.u (http://www.migvct.co.uk) k.
Going concern
The Board has assessed the Company's operation as a going concern. The
Company's business activities, together with the factors likely to affect its
future development, performance and position are set out in the Half-Year
Management Report. The Directors have satisfied themselves that the Company's
cash position, bolstered by the fund raising that completed at the beginning
of 2022 is adequate to enable the Company to continue as a going concern under
any plausible stress scenario. The portfolio taken as a whole remains
resilient and well-diversified although supply chain constraints and
inflationary pressures are beginning to impact. The major cash outflows of the
Company (namely investments, share buy-backs and dividends) are within the
Company's control.
The Board's assessment of liquidity risk and details of the Company's policies
for managing its capital and financial risks are shown in Notes 15 and 16 on
pages 68 to 74 of the Annual Report and Financial Statements for the year
ended 31 December 2021. Accordingly, the Directors continue to adopt the going
concern basis of accounting in preparing the Half-Year report and annual
financial statements.
Cautionary statement
This report may contain forward looking statements with regards to the
financial condition and results of the Company, which are made in the light of
current economic and business circumstances. Nothing in this report should be
construed as a profit forecast.
For and on behalf of the Board:
Clive Boothman
Chairman
5 September 2022
UNAUDITED CONDENSED FINANCIAL STATEMENTS
Unaudited Condensed Income Statement for the six months ended 30 June 2022
Six months ended 30 June 2022 Six months ended 30 June 2021 Year ended 31 December 2021
(unaudited) (unaudited) (audited)
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £ £ £ £
Net investment portfolio (losses)/gains 9 - (13,302,763) (13,302,763) - 23,845,396 23,845,396 - 36,360,661 36,360,661
Income 4 877,637 - 877,637 629,731 - 629,731 1,710,712 - 1,710,712
Investment Adviser's fees 5 (299,444) (898,331) (1,197,775) (241,546) (724,638) (966,184) (525,873) (1,577,618) (2,103,491)
Other expenses (262,363) - (262,363) (215,240) - (215,240) (455,452) - (455,452)
Profit/(loss) on ordinary activities before taxation 315,830 (14,201,094) (13,885,264) 172,945 23,120,758 23,293,703 729,387 34,783,043 35,512,430
Tax on profit/(loss) on ordinary activities 6 (43,077) 43,077 - (16,823) 16,823 - (53,768) 53,768 -
Profit/(loss) and total comprehensive income 272,753 (14,158,017) (13,885,264) 156,122 23,137,581 23,293,703 675,619 34,836,811 35,512,430
Basic and diluted earnings per share 7 0.21p (10.68)p (10.47)p 0.12p 18.33p 18.45p 0.54p 27.67pp 28.21p
The revenue column of the Income Statement includes all income and expenses.
The capital column accounts for the net investment portfolio (losses)/gains
(unrealised (losses)/gains and realised gains on investments) and the
proportion of the Investment Adviser's fee charged to capital.
The total column is the Statement of Total Comprehensive Income of the Company
prepared in accordance with Financial Reporting Standards ("FRS"). In order to
better reflect the activities of a VCT and in accordance with the 2014
Statement of Recommended Practice ("SORP") updated in April 2021 by the
Association of Investment Companies ("AIC"), supplementary information which
analyses the Income Statement between items of a revenue and capital nature
has been presented alongside the Income Statement. The revenue column of
profit attributable to equity Shareholders is the measure the Directors
believe appropriate in assessing the Company's compliance with certain
requirements set out in Section 274 Income Tax Act 2007.
All the items in the above statement derive from continuing operations of the
Company. No operations were acquired or discontinued in the period/year.
The notes to the unaudited financial statements below form part of these
Half-Year Financial Statements.
Unaudited Condensed Balance Sheet as at 30 June 2022
As at As at As at
Company registration number: 5153931 30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Notes £ £ £
Fixed assets
Investments at fair value 9 63,547,549 72,855,045 79,807,671
Current assets
Debtors and prepayments 176,951 179,615 433,761
Current asset investments 10 37,135,871 30,561,479 24,362,614
Cash at bank 10 2,973,413 4,353,638 8,604,505
40,286,235 35,094,732 33,400,880
Creditors: amounts falling due within one year (274,960) (541,724) (248,076)
Net current assets 40,011,275 34,553,008 33,152,804
Net assets 103,558,824 107,408,053 112,960,475
Capital and reserves
Called up share capital 1,370,810 1,255,380 1,250,775
Capital redemption reserve 40,427 33,522 38,127
Share premium reserve 24,024,221 14,397,509 14,397,509
Revaluation reserve 23,812,751 33,226,958 39,729,600
Special distributable reserve 13,160,557 26,133,899 18,967,400
Realised capital reserve 38,670,899 30,044,190 36,056,813
Revenue reserve 2,479,159 2,316,595 2,520,251
Equity shareholders' funds 103,558,824 107,408,053 112,960,475
Basic and diluted net asset value per share 11 75.55p 85.56p 90.31p
The financial information for the six months ended 30 June 2022 and the six
months ended 30 June 2021 has not been audited.
The notes to the unaudited financial statements below form part of these
Half-Year Financial Statements.
Unaudited Condensed Statement of Changes in Equity
for the six months to 30 June 2022
Non-distributable reserves Distributable reserves
Called up Capital Share Revaluation Special Realised Total
share redemption premium reserve distributable capital Revenue
capital reserve reserve reserve reserve reserve
For the six months ended 30 June 2022 Notes (Note a) (Note b) (Note b)
£ £ £ £ £ £ £ £
At 1 January 2022 1,250,775 38,127 14,397,509 39,729,600 18,967,400 36,056,813 2,520,251 112,960,475
Comprehensive income for the period
(Loss)/profit for the period - - - (14,343,372) - 185,355 272,753 (13,885,264)
Total comprehensive income for the period - - - (14,343,372) - 185,355 272,753 (13,885,264)
Contributions by and distributions to owners
Shares issued under Offer for subscription (Note c) 122,335 - 9,877,665 - - - - 10,000,000
Issue costs and facilitation fees - - (250,953) - (63,450) - - (314,403)
Shares bought back (Note c) (2,300) 2,300 - - (180,462) - - (180,462)
Dividends paid 8 - - - - (4,707,677) - (313,845) (5,021,522)
Total contributions by and distributions to owners 120,035 2,300 9,626,712 - (4,951,589) - (313,845) 4,483,613
Other movements
Realised losses transferred to special reserve (Note a) - - - - (855,254) 855,254 - -
Realisation of previously unrealised gains - - - (1,573,477) - 1,573,477 - -
Total other movements - - - (1,573,477) (855,254) 2,428,731 - -
At 30 June 2022 1,370,810 40,427 24,024,221 23,812,751 13,160,557 38,670,899 2,479,159 103,558,824
Note a: The purpose of this reserve is to fund market purchases of the
Company's own shares, to write off existing and future losses and for any
other corporate purpose. The transfer of £855,254 to the special reserve from
the realised capital reserve above is the total of realised losses incurred by
the Company in the period. As at 30 June 2022, the Company has a special
reserve £13,160,557, all of which is distributable under VCT rules. Reserves
originating from share issues are not distributable under VCT rules if they
arise from share issues that are within three years of the end of an
accounting period in which shares were issued.
Note b: The Realised capital reserve and the Revenue reserve together comprise
the Profit and Loss Account of the Company.
Note c: Under the Company's Offer for Subscription launched on 20 January
2022, 12,233,462 Ordinary shares were allotted on 9 March 2022, raising net
funds of £9,685,597 for the Company. This figure is net of issue costs of
£250,953 and facilitation fees of £63,450.
Note d: During the period, the Company repurchased 230,000 of its own shares
at the prevailing market price for a total cost of £180,462, which were
subsequently cancelled.
Non-distributable reserves Distributable reserves
Called up Capital Share Revaluation Special Realised Total
share redemption premium reserve distributable capital Revenue
For the six months ended 30 June 2021 capital reserve reserve reserve reserve reserve
£ £ £ £ £ £ £ £
At 1 January 2021 Comprehensive income for the period 1,263,366 25,536 14,397,509 12,498,006 27,415,880 26,927,746 2,160,473 84,688,516
Profit for the period - - - 22,351,169 - 786,412 156,122 23,293,703
Total comprehensive income for the period - - - 22,351,169 - 786,412 156,122 23,293,703
Contributions by and distributions to owners
Shares bought back (7,986) 7,986 - - (574,166) - - (574,166)
Total contributions by and distributions to owners (7,986) 7,986 - - (574,166) - - (574,166)
Other movements
Realised losses transferred to special reserve - - - - (707,815) 707,815 - -
Realisation of previously unrealised gains - - - (1,622,217) - 1,622,217 - -
Total other movements - - - (1,622,217) (707,815) 2,330,032 - -
At 30 June 2021 1,255,380 33,522 14,397,509 33,226,958 26,133,899 30,044,190 2,316,595 107,408,053
The notes to the unaudited financial statements below form part of these
Half-Year Financial Statements.
The composition of each of these reserves is explained below:
Called up share capital - The nominal value of shares originally issued
increased for subsequent share issues either via an Offer for Subscription or
reduced due to shares bought back by the Company.
Capital redemption reserve - The nominal value of shares bought back and
cancelled is held in this reserve, so that the Company's capital is
maintained.
Share premium reserve - This reserve contains the excess of gross proceeds
less issue costs over the nominal value of shares allotted under recent Offers
for Subscription.
Revaluation reserve - Increases and decreases in the valuation of investments
held at the period-end are accounted for in this reserve, except to the extent
that the diminution is deemed permanent.
In accordance with stating all investments at fair value through profit and
loss, all such movements through both revaluation and realised capital
reserves are shown within the Income Statement for the period.
Special distributable reserve - This reserve is created from cancellations of
the balances upon the Share premium reserve, which are transferred to this
reserve from time to time. The cost of share buybacks and any realised losses
on the sale or impairment of investments (excluding transaction costs) are
charged to this reserve. 75% of the Investment Adviser fee expense, and the
related tax effect, that are charged to the realised capital reserve are
transferred to this reserve. This reserve will also be charged any
facilitation fee payments to financial advisers, which arose as part of the
Offer for Subscription.
Realised capital reserve - The following are accounted for in this reserve:
• Gains and losses on realisation of investments;
• Permanent diminution in value of investments;
• Transaction costs incurred in the acquisition and disposal of investments;
• 75% of the Investment Adviser fee expense and 100% of any performance
incentive fee payable, together with the related tax effect to this reserve in
accordance with the policies; and
• Capital dividends paid.
Revenue reserve - Income and expenses that are revenue in nature are accounted
for in this reserve, as well as 25% of the Investment Adviser fee together
with the related tax effect, as well as income dividends paid that are
classified as revenue in nature.
Unaudited Condensed Statement of Changes in Equity
for the six months to 30 June 2022
Non-distributable reserves Distributable reserves
Called up Capital Share Revaluation Special Realised Total
share redemption premium reserve distributable capital Revenue
capital reserve reserve reserve reserve reserve
For the six months ended 30 June 2022 Notes (Note a) (Note b) (Note b)
£ £ £ £ £ £ £ £
At 1 January 2022 1,250,775 38,127 14,397,509 39,729,600 18,967,400 36,056,813 2,520,251 112,960,475
Comprehensive income for the period
(Loss)/profit for the period - - - (14,343,372) - 185,355 272,753 (13,885,264)
Total comprehensive income for the period - - - (14,343,372) - 185,355 272,753 (13,885,264)
Contributions by and distributions to owners
Shares issued under Offer for subscription (Note c) 122,335 - 9,877,665 - - - - 10,000,000
Issue costs and facilitation fees - - (250,953) - (63,450) - - (314,403)
Shares bought back (Note c) (2,300) 2,300 - - (180,462) - - (180,462)
Dividends paid 8 - - - - (4,707,677) - (313,845) (5,021,522)
Total contributions by and distributions to owners 120,035 2,300 9,626,712 - (4,951,589) - (313,845) 4,483,613
Other movements
Realised losses transferred to special reserve (Note a) - - - - (855,254) 855,254 - -
Realisation of previously unrealised gains - - - (1,573,477) - 1,573,477 - -
Total other movements - - - (1,573,477) (855,254) 2,428,731 - -
At 30 June 2022 1,370,810 40,427 24,024,221 23,812,751 13,160,557 38,670,899 2,479,159 103,558,824
Note a: The purpose of this reserve is to fund market purchases of the
Company's own shares, to write off existing and future losses and for any
other corporate purpose. The transfer of £855,254 to the special reserve from
the realised capital reserve above is the total of realised losses incurred by
the Company in the period. As at 30 June 2022, the Company has a special
reserve £13,160,557, all of which is distributable under VCT rules. Reserves
originating from share issues are not distributable under VCT rules if they
arise from share issues that are within three years of the end of an
accounting period in which shares were issued.
Note b: The Realised capital reserve and the Revenue reserve together comprise
the Profit and Loss Account of the Company.
Note c: Under the Company's Offer for Subscription launched on 20 January
2022, 12,233,462 Ordinary shares were allotted on 9 March 2022, raising net
funds of £9,685,597 for the Company. This figure is net of issue costs of
£250,953 and facilitation fees of £63,450.
Note d: During the period, the Company repurchased 230,000 of its own shares
at the prevailing market price for a total cost of £180,462, which were
subsequently cancelled.
Non-distributable reserves Distributable reserves
Called up Capital Share Revaluation Special Realised Total
share redemption premium reserve distributable capital Revenue
For the six months ended 30 June 2021 capital reserve reserve reserve reserve reserve
£ £ £ £ £ £ £ £
At 1 January 2021 Comprehensive income for the period 1,263,366 25,536 14,397,509 12,498,006 27,415,880 26,927,746 2,160,473 84,688,516
Profit for the period - - - 22,351,169 - 786,412 156,122 23,293,703
Total comprehensive income for the period - - - 22,351,169 - 786,412 156,122 23,293,703
Contributions by and distributions to owners
Shares bought back (7,986) 7,986 - - (574,166) - - (574,166)
Total contributions by and distributions to owners (7,986) 7,986 - - (574,166) - - (574,166)
Other movements
Realised losses transferred to special reserve - - - - (707,815) 707,815 - -
Realisation of previously unrealised gains - - - (1,622,217) - 1,622,217 - -
Total other movements - - - (1,622,217) (707,815) 2,330,032 - -
At 30 June 2021 1,255,380 33,522 14,397,509 33,226,958 26,133,899 30,044,190 2,316,595 107,408,053
The notes to the unaudited financial statements below form part of these
Half-Year Financial Statements.
The composition of each of these reserves is explained below:
Called up share capital - The nominal value of shares originally issued
increased for subsequent share issues either via an Offer for Subscription or
reduced due to shares bought back by the Company.
Capital redemption reserve - The nominal value of shares bought back and
cancelled is held in this reserve, so that the Company's capital is
maintained.
Share premium reserve - This reserve contains the excess of gross proceeds
less issue costs over the nominal value of shares allotted under recent Offers
for Subscription.
Revaluation reserve - Increases and decreases in the valuation of investments
held at the period-end are accounted for in this reserve, except to the extent
that the diminution is deemed permanent.
In accordance with stating all investments at fair value through profit and
loss, all such movements through both revaluation and realised capital
reserves are shown within the Income Statement for the period.
Special distributable reserve - This reserve is created from cancellations of
the balances upon the Share premium reserve, which are transferred to this
reserve from time to time. The cost of share buybacks and any realised losses
on the sale or impairment of investments (excluding transaction costs) are
charged to this reserve. 75% of the Investment Adviser fee expense, and the
related tax effect, that are charged to the realised capital reserve are
transferred to this reserve. This reserve will also be charged any
facilitation fee payments to financial advisers, which arose as part of the
Offer for Subscription.
Realised capital reserve - The following are accounted for in this reserve:
• Gains and losses on realisation of investments;
• Permanent diminution in value of investments;
• Transaction costs incurred in the acquisition and disposal of investments;
• 75% of the Investment Adviser fee expense and 100% of any performance
incentive fee payable, together with the related tax effect to this reserve in
accordance with the policies; and
• Capital dividends paid.
Revenue reserve - Income and expenses that are revenue in nature are accounted
for in this reserve, as well as 25% of the Investment Adviser fee together
with the related tax effect, as well as income dividends paid that are
classified as revenue in nature.
Unaudited Condensed Statement of Cash Flows
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)
Notes £ £ £
Cash flows from operating activities
(Loss)/profit after tax for the financial period (13,885,264) 23,293,703 35,512,430
Adjustments for:
Net investment portfolio losses/(gains) 13,302,763 (23,845,396) (36,360,661)
Decrease in debtors 256,810 337,663 83,516
Increase in creditors and accruals 26,884 44,594 18,678
Net cash outflow from operations (298,807) (169,436) (746,037)
Corporation tax (paid - - (191,171)
Net cash outflow from operating activities (298,807) (169,436) (937,208)
Cash flows from investing activities
Purchases of investments 9 (2,374,854) (4,472,581) (7,541,213)
Disposals of investments 9 5,332,213 6,607,116 15,238,387
(Decrease)/Increase in bank deposits with a maturity over three months (739) 385 256
Net cash inflow from investing activities 2,956,620 2,134,920 7,697,430
Cash flows from financing activities
Shares issued as part of Offer for subscription 10,000,000 - -
Issue costs and facilitation fees as part of Offer for subscription (314,403) - -
Equity dividends paid 8 (5,021,522) - (6,316,829)
Share capital bought back (180,462) (541,719) (967,755)
Net cash inflow/(outflow) from financing activities 4,483,613 (541,719) (7,284,584)
Net increase/(decrease) in cash and cash equivalents 7,141,426 1,423,765 (524,362)
Cash and cash equivalents at start of period 31,962,077 32,486,439 32,486,439
Cash and cash equivalents at end of period 39,103,503 33,910,204 31,962,077
Cash and cash equivalents comprise:
Cash at bank and in hand 10 2,973,413 4,353,638 8,604,505
Cash equivalents 10 36,130,090 29,556,566 23,357,572
The notes to the unaudited financial statements below form part of these
Half-Year Financial Statements.
Notes to the Unaudited Condensed Financial Statements
for the six months to 30 June 2022
1. Company information
Mobeus Income and Growth VCT plc is a public limited company incorporated in
England, registration number 5153931. The registered office is 5 New Street
Square, London, EC4A 3TW.
2. Basis of preparation of the Financial Statements
These Financial Statements are prepared in accordance with accounting policies
consistent with Financial Reporting Standard 102 ("FRS 102"), Financial
Reporting Standard 104 ("FRS 104) - Interim Financial Reporting, with the
Companies Act 2006 and the 2014 Statement of Recommended Practice, Financial
Statements of Investment Trust Companies and Venture Capital Trusts ("SORP")
(updated in April 2021) issued by the Association of Investment Companies
("AIC").
The Half-Year Report has not been audited, nor has it been reviewed by the
Auditor pursuant to the Financial Reporting Council's (FRC) guidance on Review
of Interim Financial Information.
3. Principal accounting policies
The accounting policies have been applied consistently throughout the period.
Full details of principal accounting policies will be disclosed in the Annual
Report, while the policy in respect of investments is included within an
outlined box at the top of note 9 on investments.
4. Income
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
Dividends 89,109 84,401 446,397
Money-market funds 80,460 1,033 2,664
Loan stock interest 704,235 541,228 1,256,891
Bank deposit interest 3,833 3,064 4,755
Other income - 5 5
Total Income 877,637 629,731 1,710,712
5. Investment Adviser's fees
In accordance with the policy statement published under "Management and
Administration" in the Company's prospectus dated 9 July 2004, the Directors
have charged 75% of the Investment Adviser's fees to the capital reserve. This
is in line with the Board's expectation of the long-term split of returns from
the investment portfolio of the Company. For further details, see note 4a on
page 58 of the 2021 Annual Report.
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Total Total Total
£ £ £
Allocated to revenue return: Investment Adviser's fees 299,444 241,546 525,873
Allocated to capital return: Investment Adviser's fees 898,331 724,638 1,577,618
Total 1,197,775 966,184 2,103,491
5.
Investment Adviser's fees
In accordance with the policy statement published under "Management and
Administration" in the Company's prospectus dated 9 July 2004, the Directors
have charged 75% of the Investment Adviser's fees to the capital reserve. This
is in line with the Board's expectation of the long-term split of returns from
the investment portfolio of the Company. For further details, see note 4a on
page 58 of the 2021 Annual Report.
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Total Total Total
£ £ £
Allocated to revenue return: Investment Adviser's fees 299,444 241,546 525,873
Allocated to capital return: Investment Adviser's fees 898,331 724,638 1,577,618
Total 1,197,775 966,184 2,103,491
6. Taxation
There is no tax charge for the period as the Company has deductible expenses
in excess of taxable income.
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
£ £ £ £ £ £ £ £ £
a) Analysis of tax charge:
UK Corporation tax on profit for the period 43,077 (43,077) - 16,823 (16,823) - 53,768 (53,738) -
Total current tax charge/(credit) 43,077 (43,077) - 16,823 (16,823) - 53,768 (53,768) -
Corporation tax is based on a rate of 19.0% (2021: 19.0%)
b) Profit/(loss) on ordinary activities before tax 315,830 (14,201,094) (13,885,264) 172,945 23,120,758 23,293,703 729,387 34,783,043 35,512,430
Profit/(loss) on ordinary activities multiplied by rate of corporation tax in 60,007 (2,698,208) (2,638,201) 32,859 4,392,944 4,425,803 138,584 6,608,778 6,747,362
the UK of 19.0% (2021: 19.0%)
Effect of:
UK dividends (16,930) - (16,930) (16,036) - (16,036) (84,816) - (84,816)
Net investment portfolio losses/(gains) not allowable/(taxable) - 2,527,525 2,527,525 - (4,530,625) (4,530,625) - (6,908,526) (6,908,526)
Losses not utilised - 127,606 127,606 - 120,858 120,858 - 245,980 245,980
Actual current tax charge 43,077 (43,077) - 16,823 (16,823) - 53,768 (53,768) -
7. Basic and diluted earnings and return per share
The basic and diluted earnings, revenue return and capital return per share
shown below for each period are respectively based on numerators i)-iii), each
divided by the weighted average number of shares in issue in the period - see
iv) below.
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
i) Total (losses)/earnings after taxation (13,885,264) 23,293,703 35,512,430
Basic and diluted earnings per share (Note a) (10.47)p 18.45p 28.21p
ii) Revenue earnings from ordinary activities after taxation 272,753 156,122 675,619
Basic and diluted revenue earnings per share (Note b) 0.21p 0.12p 0.54p
Net investment portfolio (losses)/gains (13,302,763) 23,845,396 36,360,661
Capital Investment Adviser's fees less taxation (855,254) (707,815) (1,523,850)
iii) Total capital (losses)/earnings (14,158,017) 23,137,581 34,836,811
Basic and diluted capital earnings per share (10.68)p 18.33p 27.67p
iv) Weighted average number of shares in issue in the period 132,670,472 126,244,156 125,868,010
Notes:
a) Basic earnings per share is total earnings after taxation divided by the
weighted average number of shares in issue.
b) Basic revenue earnings per share is the revenue earnings after taxation
divided by the weighted average number of shares in issue.
c) Basic capital earnings per share is the total capital earnings after
taxation divided by the weighted average number of shares in issue.
8. Dividends paid
Six months ended 30 June 2022 Six months ended 30 June 2021 Year ended 31 December 2021
(unaudited) (unaudited) (audited)
Dividend Type For the year ended 31 December Pence per share Date paid £ £ £
Interim Income 2021 0.25p 12 July 2021 - - 315,841
Interim Capital 2021 4.75p* 12 July 2021 - - 6,000,988
Interim Income 2022 0.25p 7 January 2022 313,845 - -
Interim Capital 2022 3.75p* 7 January 2022 4,707,677 - -
5,021,522 - 6,316,829
*This dividend was paid out of the Company's special distributable reserve.
The Board declared an interim dividend in respect of the year ending 31
December 2022 of 4.00 pence per share which was paid to Shareholders on 15
July 2022.
7.
Basic and diluted earnings and return per share
The basic and diluted earnings, revenue return and capital return per share
shown below for each period are respectively based on numerators i)-iii), each
divided by the weighted average number of shares in issue in the period - see
iv) below.
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
i) Total (losses)/earnings after taxation (13,885,264) 23,293,703 35,512,430
Basic and diluted earnings per share (Note a) (10.47)p 18.45p 28.21p
ii) Revenue earnings from ordinary activities after taxation 272,753 156,122 675,619
Basic and diluted revenue earnings per share (Note b) 0.21p 0.12p 0.54p
Net investment portfolio (losses)/gains (13,302,763) 23,845,396 36,360,661
Capital Investment Adviser's fees less taxation (855,254) (707,815) (1,523,850)
iii) Total capital (losses)/earnings (14,158,017) 23,137,581 34,836,811
Basic and diluted capital earnings per share (10.68)p 18.33p 27.67p
iv) Weighted average number of shares in issue in the period 132,670,472 126,244,156 125,868,010
Notes:
a) Basic earnings per share is total earnings after taxation divided by the
weighted average number of shares in issue.
b) Basic revenue earnings per share is the revenue earnings after taxation
divided by the weighted average number of shares in issue.
c) Basic capital earnings per share is the total capital earnings after
taxation divided by the weighted average number of shares in issue.
8.
Dividends paid
Six months ended 30 June 2022 Six months ended 30 June 2021 Year ended 31 December 2021
(unaudited) (unaudited) (audited)
Dividend Type For the year ended 31 December Pence per share Date paid £ £ £
Interim Income 2021 0.25p 12 July 2021 - - 315,841
Interim Capital 2021 4.75p* 12 July 2021 - - 6,000,988
Interim Income 2022 0.25p 7 January 2022 313,845 - -
Interim Capital 2022 3.75p* 7 January 2022 4,707,677 - -
5,021,522 - 6,316,829
*This dividend was paid out of the Company's special distributable reserve.
The Board declared an interim dividend in respect of the year ending 31
December 2022 of 4.00 pence per share which was paid to Shareholders on 15
July 2022.
9. Summary of movement on investments during the period
Traded on Unquoted Unquoted Unquoted Total
AIM equity preference Loan
shares shares stock
Level 1 Level 3 Level 3 Level 3
£ £ £ £ £
Valuation at 1 January 2022 12,518,431 54,832,186 2,112,663 10,344,391 79,807,671
Purchases at cost - 511,565 1,305,289 558,000 2,374,854
Sales - proceeds - (3,926,991) - (1,405,222) (5,332,213)
Net realised gains (Note) - 1,040,609 - - 1,040,609
Net unrealised (losses)/gains on investments (Note) (7,850,241) (6,377,198) 74,451 (190,384) (14,343,372)
Valuation at 30 June 2022 4,668,190 46,080,171 3,492,403 9,306,785 63,547,549
Book cost at 30 June 2022 864,604 24,704,307 3,239,979 12,574,686 41,383,576
Permanent impairment in value of investments - (1,648,476) (302) - (1,648,778)
Unrealised gains/(losses) at 30 June 2022 3,803,586 23,024,340 252,726 (3,267,901) 23,812,751
Valuation at 30 June 2022 4,668,190 46,080,171 3,492,403 9,306,785 63,547,549
Gains on investments
Net realised gains based on historical cost - 2,614,086 - - 2,614,086
Less amounts recognised as unrealised gains in previous years - (1,573,477) - - (1,573,477)
Net realised gains based on carrying value at 31 December 2021 - 1,040,609 - - 1,040,609
Net movement in unrealised (losses)/gains in the period (7,850,241) (6,377,198) 74,451 (190,384) (14,343,372)
Net investment portfolio (losses)/gains for the period ended 30 June 2022 (7,850,241) (5,336,589) 74,451 (190,384) (13,302,763)
Note) Net realised gains on investments of £1,040,609 together with net
unrealised losses of £14,343,372 equal net investment portfolio losses of
£13,302,763 as disclosed in the Income Statement.
Level 3 unquoted equity and loan investments are valued in accordance with
IPEV guidelines as follows:
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
Multiple of earnings, revenue, or gross margin, as appropriate 57,046,213 53,960,080 66,953,246
Net asset value - 368,852 -
Recent investment price 1,311,667 1,994,040 -
Estimated realisation proceeds 66,194 66,194 66,194
Recent investment price (reviewed for impairment) 455,285 67,450 269,800
58,879,359 56,456,616 67,289,240
10. Current asset investments and Cash at bank
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
OEIC Money market funds 36,130,090 29,556,566 23,357,572
Cash equivalents per Statement of Cash Flows 36,130,090 29,556,566 23,357,572
Bank deposits that mature after three months 1,005,781 1,004,913 1,005,042
Current asset investments 37,135,871 30,561,479 24,362,614
Cash at bank 2,973,413 4,353,638 8,604,505
11. Basic and diluted net asset value per ordinary share
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Net assets £103,558,824 107,408,053 £112,960,475
Number of shares in issue 137,080,943 125,538,048 125,077,481
Basic and diluted net asset value per share (pence) 75.55p 85.56p 90.31p
12. Post balance sheet events
On 5 July 2022, the Company made a further investment of £0.78 million into
Vivacity Labs Limited, an Artificial Intelligence and Urban Traffic Control
("UTC") system.
On 23 August 2022, the Company made a further investment of £0.43 million
into Bleach (London) Holdings Limited, a hair colourants brand.
13. Financial statements for the period ended 30 June 2022
The information for the six months ended 30 June 2022 does not comprise
statutory accounts within the meaning of Section 434 of the Companies Act
2006. The Financial Statements for the year ended 31 December 2021 have been
filed with the Registrar of Companies. The auditor has reported on these
Financial Statements and that report was unqualified and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
14. Half-Year Report
Copies of this Report are being sent to all Shareholders who elected to
receive a paper copy otherwise Shareholders are being notified that a copy is
available on the Company's website. Further copies are available free of
charge from the Company's registered office, 5 New Street Square, London, EC4A
3TW, or can be downloaded via the Company's website at www.migvct.co.uk
(http://www.migvct.co.uk) .
Note) Net realised gains on investments of £1,040,609 together with net
unrealised losses of £14,343,372 equal net investment portfolio losses of
£13,302,763 as disclosed in the Income Statement.
Level 3 unquoted equity and loan investments are valued in accordance with
IPEV guidelines as follows:
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
Multiple of earnings, revenue, or gross margin, as appropriate 57,046,213 53,960,080 66,953,246
Net asset value - 368,852 -
Recent investment price 1,311,667 1,994,040 -
Estimated realisation proceeds 66,194 66,194 66,194
Recent investment price (reviewed for impairment) 455,285 67,450 269,800
58,879,359 56,456,616 67,289,240
10.
Current asset investments and Cash at bank
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
OEIC Money market funds 36,130,090 29,556,566 23,357,572
Cash equivalents per Statement of Cash Flows 36,130,090 29,556,566 23,357,572
Bank deposits that mature after three months 1,005,781 1,004,913 1,005,042
Current asset investments 37,135,871 30,561,479 24,362,614
Cash at bank 2,973,413 4,353,638 8,604,505
11.
Basic and diluted net asset value per ordinary share
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Net assets £103,558,824 107,408,053 £112,960,475
Number of shares in issue 137,080,943 125,538,048 125,077,481
Basic and diluted net asset value per share (pence) 75.55p 85.56p 90.31p
12.
Post balance sheet events
On 5 July 2022, the Company made a further investment of £0.78 million into
Vivacity Labs Limited, an Artificial Intelligence and Urban Traffic Control
("UTC") system.
On 23 August 2022, the Company made a further investment of £0.43 million
into Bleach (London) Holdings Limited, a hair colourants brand.
13.
Financial statements for the period ended 30 June 2022
The information for the six months ended 30 June 2022 does not comprise
statutory accounts within the meaning of Section 434 of the Companies Act
2006. The Financial Statements for the year ended 31 December 2021 have been
filed with the Registrar of Companies. The auditor has reported on these
Financial Statements and that report was unqualified and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
14.
Half-Year Report
Copies of this Report are being sent to all Shareholders who elected to
receive a paper copy otherwise Shareholders are being notified that a copy is
available on the Company's website. Further copies are available free of
charge from the Company's registered office, 5 New Street Square, London, EC4A
3TW, or can be downloaded via the Company's website at www.migvct.co.uk
(http://www.migvct.co.uk) .
5.
Investment Adviser's fees
In accordance with the policy statement published under "Management and
Administration" in the Company's prospectus dated 9 July 2004, the Directors
have charged 75% of the Investment Adviser's fees to the capital reserve. This
is in line with the Board's expectation of the long-term split of returns from
the investment portfolio of the Company. For further details, see note 4a on
page 58 of the 2021 Annual Report.
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Total Total Total
£ £ £
Allocated to revenue return: Investment Adviser's fees 299,444 241,546 525,873
Allocated to capital return: Investment Adviser's fees 898,331 724,638 1,577,618
Total 1,197,775 966,184 2,103,491
6. Taxation
There is no tax charge for the period as the Company has deductible expenses
in excess of taxable income.
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
£ £ £ £ £ £ £ £ £
a) Analysis of tax charge:
UK Corporation tax on profit for the period 43,077 (43,077) - 16,823 (16,823) - 53,768 (53,738) -
Total current tax charge/(credit) 43,077 (43,077) - 16,823 (16,823) - 53,768 (53,768) -
Corporation tax is based on a rate of 19.0% (2021: 19.0%)
b) Profit/(loss) on ordinary activities before tax 315,830 (14,201,094) (13,885,264) 172,945 23,120,758 23,293,703 729,387 34,783,043 35,512,430
Profit/(loss) on ordinary activities multiplied by rate of corporation tax in 60,007 (2,698,208) (2,638,201) 32,859 4,392,944 4,425,803 138,584 6,608,778 6,747,362
the UK of 19.0% (2021: 19.0%)
Effect of:
UK dividends (16,930) - (16,930) (16,036) - (16,036) (84,816) - (84,816)
Net investment portfolio losses/(gains) not allowable/(taxable) - 2,527,525 2,527,525 - (4,530,625) (4,530,625) - (6,908,526) (6,908,526)
Losses not utilised - 127,606 127,606 - 120,858 120,858 - 245,980 245,980
Actual current tax charge 43,077 (43,077) - 16,823 (16,823) - 53,768 (53,768) -
7. Basic and diluted earnings and return per share
The basic and diluted earnings, revenue return and capital return per share
shown below for each period are respectively based on numerators i)-iii), each
divided by the weighted average number of shares in issue in the period - see
iv) below.
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
i) Total (losses)/earnings after taxation (13,885,264) 23,293,703 35,512,430
Basic and diluted earnings per share (Note a) (10.47)p 18.45p 28.21p
ii) Revenue earnings from ordinary activities after taxation 272,753 156,122 675,619
Basic and diluted revenue earnings per share (Note b) 0.21p 0.12p 0.54p
Net investment portfolio (losses)/gains (13,302,763) 23,845,396 36,360,661
Capital Investment Adviser's fees less taxation (855,254) (707,815) (1,523,850)
iii) Total capital (losses)/earnings (14,158,017) 23,137,581 34,836,811
Basic and diluted capital earnings per share (10.68)p 18.33p 27.67p
iv) Weighted average number of shares in issue in the period 132,670,472 126,244,156 125,868,010
Notes:
a) Basic earnings per share is total earnings after taxation divided by the
weighted average number of shares in issue.
b) Basic revenue earnings per share is the revenue earnings after taxation
divided by the weighted average number of shares in issue.
c) Basic capital earnings per share is the total capital earnings after
taxation divided by the weighted average number of shares in issue.
8. Dividends paid
Six months ended 30 June 2022 Six months ended 30 June 2021 Year ended 31 December 2021
(unaudited) (unaudited) (audited)
Dividend Type For the year ended 31 December Pence per share Date paid £ £ £
Interim Income 2021 0.25p 12 July 2021 - - 315,841
Interim Capital 2021 4.75p* 12 July 2021 - - 6,000,988
Interim Income 2022 0.25p 7 January 2022 313,845 - -
Interim Capital 2022 3.75p* 7 January 2022 4,707,677 - -
5,021,522 - 6,316,829
*This dividend was paid out of the Company's special distributable reserve.
The Board declared an interim dividend in respect of the year ending 31
December 2022 of 4.00 pence per share which was paid to Shareholders on 15
July 2022.
7.
Basic and diluted earnings and return per share
The basic and diluted earnings, revenue return and capital return per share
shown below for each period are respectively based on numerators i)-iii), each
divided by the weighted average number of shares in issue in the period - see
iv) below.
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
i) Total (losses)/earnings after taxation (13,885,264) 23,293,703 35,512,430
Basic and diluted earnings per share (Note a) (10.47)p 18.45p 28.21p
ii) Revenue earnings from ordinary activities after taxation 272,753 156,122 675,619
Basic and diluted revenue earnings per share (Note b) 0.21p 0.12p 0.54p
Net investment portfolio (losses)/gains (13,302,763) 23,845,396 36,360,661
Capital Investment Adviser's fees less taxation (855,254) (707,815) (1,523,850)
iii) Total capital (losses)/earnings (14,158,017) 23,137,581 34,836,811
Basic and diluted capital earnings per share (10.68)p 18.33p 27.67p
iv) Weighted average number of shares in issue in the period 132,670,472 126,244,156 125,868,010
Notes:
a) Basic earnings per share is total earnings after taxation divided by the
weighted average number of shares in issue.
b) Basic revenue earnings per share is the revenue earnings after taxation
divided by the weighted average number of shares in issue.
c) Basic capital earnings per share is the total capital earnings after
taxation divided by the weighted average number of shares in issue.
8.
Dividends paid
Six months ended 30 June 2022 Six months ended 30 June 2021 Year ended 31 December 2021
(unaudited) (unaudited) (audited)
Dividend Type For the year ended 31 December Pence per share Date paid £ £ £
Interim Income 2021 0.25p 12 July 2021 - - 315,841
Interim Capital 2021 4.75p* 12 July 2021 - - 6,000,988
Interim Income 2022 0.25p 7 January 2022 313,845 - -
Interim Capital 2022 3.75p* 7 January 2022 4,707,677 - -
5,021,522 - 6,316,829
* This dividend was paid out of the Company's special distributable reserve.
The Board declared an interim dividend in respect of the year ending 31
December 2022 of 4.00 pence per share which was paid to Shareholders on 15
July 2022.
9. Summary of movement on investments during the period
Traded on Unquoted Unquoted Unquoted Total
AIM equity preference Loan
shares shares stock
Level 1 Level 3 Level 3 Level 3
£ £ £ £ £
Valuation at 1 January 2022 12,518,431 54,832,186 2,112,663 10,344,391 79,807,671
Purchases at cost - 511,565 1,305,289 558,000 2,374,854
Sales - proceeds - (3,926,991) - (1,405,222) (5,332,213)
Net realised gains (Note) - 1,040,609 - - 1,040,609
Net unrealised (losses)/gains on investments (Note) (7,850,241) (6,377,198) 74,451 (190,384) (14,343,372)
Valuation at 30 June 2022 4,668,190 46,080,171 3,492,403 9,306,785 63,547,549
Book cost at 30 June 2022 864,604 24,704,307 3,239,979 12,574,686 41,383,576
Permanent impairment in value of investments - (1,648,476) (302) - (1,648,778)
Unrealised gains/(losses) at 30 June 2022 3,803,586 23,024,340 252,726 (3,267,901) 23,812,751
Valuation at 30 June 2022 4,668,190 46,080,171 3,492,403 9,306,785 63,547,549
Gains on investments
Net realised gains based on historical cost - 2,614,086 - - 2,614,086
Less amounts recognised as unrealised gains in previous years - (1,573,477) - - (1,573,477)
Net realised gains based on carrying value at 31 December 2021 - 1,040,609 - - 1,040,609
Net movement in unrealised (losses)/gains in the period (7,850,241) (6,377,198) 74,451 (190,384) (14,343,372)
Net investment portfolio (losses)/gains for the period ended 30 June 2022 (7,850,241) (5,336,589) 74,451 (190,384) (13,302,763)
Note) Net realised gains on investments of £1,040,609 together with net
unrealised losses of £14,343,372 equal net investment portfolio losses of
£13,302,763 as disclosed in the Income Statement.
Level 3 unquoted equity and loan investments are valued in accordance with
IPEV guidelines as follows:
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
Multiple of earnings, revenue, or gross margin, as appropriate 57,046,213 53,960,080 66,953,246
Net asset value - 368,852 -
Recent investment price 1,311,667 1,994,040 -
Estimated realisation proceeds 66,194 66,194 66,194
Recent investment price (reviewed for impairment) 455,285 67,450 269,800
58,879,359 56,456,616 67,289,240
10. Current asset investments and Cash at bank
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
OEIC Money market funds 36,130,090 29,556,566 23,357,572
Cash equivalents per Statement of Cash Flows 36,130,090 29,556,566 23,357,572
Bank deposits that mature after three months 1,005,781 1,004,913 1,005,042
Current asset investments 37,135,871 30,561,479 24,362,614
Cash at bank 2,973,413 4,353,638 8,604,505
11. Basic and diluted net asset value per ordinary share
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Net assets £103,558,824 107,408,053 £112,960,475
Number of shares in issue 137,080,943 125,538,048 125,077,481
Basic and diluted net asset value per share (pence) 75.55p 85.56p 90.31p
12. Post balance sheet events
On 5 July 2022, the Company made a further investment of £0.78 million into
Vivacity Labs Limited, an Artificial Intelligence and Urban Traffic Control
("UTC") system.
On 23 August 2022, the Company made a further investment of £0.43 million
into Bleach (London) Holdings Limited, a hair colourants brand.
13. Financial statements for the period ended 30 June 2022
The information for the six months ended 30 June 2022 does not comprise
statutory accounts within the meaning of Section 434 of the Companies Act
2006. The Financial Statements for the year ended 31 December 2021 have been
filed with the Registrar of Companies. The auditor has reported on these
Financial Statements and that report was unqualified and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
14. Half-Year Report
Copies of this Report are being sent to all Shareholders who elected to
receive a paper copy otherwise Shareholders are being notified that a copy is
available on the Company's website. Further copies are available free of
charge from the Company's registered office, 5 New Street Square, London, EC4A
3TW, or can be downloaded via the Company's website at www.migvct.co.uk
(http://www.migvct.co.uk) .
Note) Net realised gains on investments of £1,040,609 together with net
unrealised losses of £14,343,372 equal net investment portfolio losses of
£13,302,763 as disclosed in the Income Statement.
Level 3 unquoted equity and loan investments are valued in accordance with
IPEV guidelines as follows:
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
Multiple of earnings, revenue, or gross margin, as appropriate 57,046,213 53,960,080 66,953,246
Net asset value - 368,852 -
Recent investment price 1,311,667 1,994,040 -
Estimated realisation proceeds 66,194 66,194 66,194
Recent investment price (reviewed for impairment) 455,285 67,450 269,800
58,879,359 56,456,616 67,289,240
10.
Current asset investments and Cash at bank
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
£ £ £
OEIC Money market funds 36,130,090 29,556,566 23,357,572
Cash equivalents per Statement of Cash Flows 36,130,090 29,556,566 23,357,572
Bank deposits that mature after three months 1,005,781 1,004,913 1,005,042
Current asset investments 37,135,871 30,561,479 24,362,614
Cash at bank 2,973,413 4,353,638 8,604,505
11.
Basic and diluted net asset value per ordinary share
As at As at As at
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
Net assets £103,558,824 107,408,053 £112,960,475
Number of shares in issue 137,080,943 125,538,048 125,077,481
Basic and diluted net asset value per share (pence) 75.55p 85.56p 90.31p
12.
Post balance sheet events
On 5 July 2022, the Company made a further investment of £0.78 million into
Vivacity Labs Limited, an Artificial Intelligence and Urban Traffic Control
("UTC") system.
On 23 August 2022, the Company made a further investment of £0.43 million
into Bleach (London) Holdings Limited, a hair colourants brand.
13.
Financial statements for the period ended 30 June 2022
The information for the six months ended 30 June 2022 does not comprise
statutory accounts within the meaning of Section 434 of the Companies Act
2006. The Financial Statements for the year ended 31 December 2021 have been
filed with the Registrar of Companies. The auditor has reported on these
Financial Statements and that report was unqualified and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
14.
Half-Year Report
Copies of this Report are being sent to all Shareholders who elected to
receive a paper copy otherwise Shareholders are being notified that a copy is
available on the Company's website. Further copies are available free of
charge from the Company's registered office, 5 New Street Square, London, EC4A
3TW, or can be downloaded via the Company's website at www.migvct.co.uk
(http://www.migvct.co.uk) .
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