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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Income & Growth Vct (the) Plc | LSE:IGV | London | Ordinary Share | GB00B29BN198 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 70.00 | 68.50 | 71.50 | 70.00 | 70.00 | 70.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Offices-holdng Companies,nec | 8.63M | 5.49M | 0.0348 | 20.11 | 110.27M |
From Apr 2019 to Apr 2024
TIDMIGV
RNS Number : 8759R
Income & Growth VCT (The) PLC
15 December 2016
The Income & Growth VCT plc
Annual Financial Results of the Company for the Year ended 30 September 2016
Financial Highlights
Hot Features
Premium
- Net asset value total return per share was
3.9% for the year.
- Share price total return per share was 7.8%
for the year.
- Dividends paid and proposed in respect of
the year total 10.00 pence per share. The
proposed final dividend of 4.00 pence per
share, if approved, will bring cumulative
dividends paid to shareholders in respect
of the past five years to 76.00 pence per
share.
- This was another exceptional year of realisations,
raising GBP10.74 million of cash proceeds
and generating realised gains over cost of
GBP7.31 million.
- GBP5.12 million(1) was invested into new companies
during the year.
(1) This figure includes GBP4.18 million previously
held in companies preparing to trade.
PERFORMANCE SUMMARY
The net asset value ("NAV") per share at 30 September 2016 was 98.51 pence.
The table below shows the recent past performance of the Company's existing class of shares for each of the last five years.
Reporting Net NAV Share Cumulative Cumulative total Dividends
date assets per price(1) dividends return per share paid and
share paid to shareholders(2) proposed
per per share
share in respect
of each
year
(Share
As at (NAV price
30 September basis) basis)
(GBPm) (p) (p) (p) (p) (p) (p)
2016 70.84 98.51 88.80 80.50 179.01 169.30 10.00 (4)
2015 75.20 106.38 93.50 68.50 174.88 162.00 12.00
2014 69.31 114.60 103.50(3) 50.50 165.10 154.00 18.00
2013 60.47 113.90 99.50 40.50 154.40 140.00 10.00
2012 50.55 109.62 97.00 28.50 138.12 125.50 26.00
(1) Source: London Stock Exchange.
(2) Cumulative total return per share comprises the
NAV per share (NAV basis) or the mid-market price
per share (share price basis) plus cumulative
dividends paid since the launch of the current
share class (former 'S' shares) 2006/7.
(3) The share price at 30 September 2014 has been
adjusted to add back the dividend of 8.00 pence
per share paid on 30 October 2014, as the listed
share price was quoted ex this dividend at the
year-end.
(4) Dividends paid and proposed per share in respect
of 2016 include the final dividend of 4.00 pence
referred to above, which is subject to shareholder
approval at the Annual General Meeting ("AGM").
Detailed performance data for each of the VCT's
fundraisings is provided in the Performance Data
appendix which will be published in the Annual
Report. The tables, which give information by allotment
date on NAVs and dividends paid per share, will
also be available on the Company's website following
the publication of the Annual Report at www.incomeandgrowthvct.co.uk
where they can be downloaded by clicking on "table"
in "Reviewing the performance of your investment".
Chairman's Statement
I am pleased to present to shareholders the Annual Report of the Company for the year ended 30 September 2016.
Overview
This has been another year of solid performance by the Company. Returns to shareholders have again been positive, due both to profitable realisations in the first quarter and steady progress overall from the portfolio.
The results of the EU Referendum and the US election have added further uncertainty to the outlook for the UK and global economies, alongside volatility in financial markets. In this environment, we are continuing to adopt a measured approach to prospective investment opportunities and to valuations within the existing portfolio.
The year also reflects a period of adjustment in response to the new VCT measures introduced by the Finance (No2) Act 2015 ("New VCT Rules"). You will no doubt recall that shareholders approved a new Investment Policy at the Company's annual general meeting in February 2016. As explained to shareholders in my Statement last year, the purpose of this new Investment Policy was to comply with the New VCT Rules, necessary to retain VCT status. Further information on the impact of the New VCT Rules was given in my Statement in last year's Annual Report and in the more recent Half-Year Report. In summary, the New VCT Rules require VCT capital to be invested in younger and smaller companies for growth and development purposes. As a consequence of these more restrictive criteria, a slowdown in new investment has occurred across the whole of the VCT generalist sector. Nonetheless, the Company has now made four new investments, under the Company's new Investment Policy, two of which completed after the year end. Descriptions of these investments are set out under Investment portfolio and in the Investment Adviser's Review below. The Board is pleased to note that the Investment Adviser is reporting a growing pipeline of opportunities, from which we expect the rate of new investment to increase.
Performance
The Company's NAV total return per share was 3.9% for the year ended 30 September 2016 (2015: 8.5%), after adjusting for 12.00 pence per share of dividends paid in the year. This positive NAV return for the year was primarily attributable to first, realised gains from the sale of two investments, namely Tessella and Westway in the first half of the year; secondly, another year of good revenue returns, arising principally from income from loan stock investments; and finally, net unrealised gains due to the strong performances of some of the portfolio companies, reflected notably in rises in the valuations of IDOX plc and Jablite Holdings. There were some falls in valuations too, notably Entanet, although this investment remains valued above cost. A number of other portfolio companies have continued to make steady progress and have increased their profits and cash flow, which have in some cases enabled them to make early repayments of their loan stock.
As a result of this year's performance, the cumulative NAV total return per share (being the closing net asset value plus total dividends paid to date since launch) rose during the year by 2.4% (2015: 5.9%) from 174.88 pence to 179.01 pence.
Using the benchmark of NAV cumulative total return, it is pleasing to report strong relative performance over the long-term as well as in recent years, as compared with the Company's peers. The VCT was ranked in the top quartile over five and ten years amongst generalist (including planned exit) VCTs used by the Association of Investment Companies ("AIC") to measure performance at
31 October 2016. For further details please see the section on performance in the Strategic Report in the Annual Report.
Final dividend
Your Directors are recommending a final dividend in respect of the year ended 30 September 2016 of 4.00 (2015: 6.00) pence per share. The dividend, comprising 3.00 pence from capital and 1.00 penny from income, will be proposed to shareholders at the AGM of the Company to be held on 8 February 2017, for payment to shareholders on the register on 13 January 2017, on 15 February 2017.
This final dividend is in addition to the interim dividend of 6.00 pence (2015: 6.00 pence) per share, comprising 5.00 pence from capital and 1.00 penny from income, paid on 7 July 2016.
If approved by shareholders, this forthcoming final dividend will bring dividends paid per share in respect of the year ended 30 September 2016 to 10.00 pence (2015: 12.00 pence) and the Company will have paid dividends totalling 76.00 pence per share in respect of the last five years. Shareholders should note, however, as a result of the recent changes to the VCT Rules and the Company's Investment Policy, the Directors believe that the Company will find it a challenge to generate a similar level of dividends over the next five years. We are also reviewing whether the current minimum annual dividend of 6.00 pence per share, set by the Board, remains sustainable in this new investment environment. We will update shareholders in due course.
The Company's Dividend Investment Scheme ("the Scheme") will apply to this dividend and new elections under the Scheme should be received by the Scheme administrator, Capita Asset Services, by no later than Tuesday, 31 January 2017.
Investment portfolio
For the year, the portfolio as a whole achieved a net increase of GBP2.51 million on investments realised and an increase of GBP0.55 million on investments still held. Investment proceeds over the original cost of the investment were GBP7.31 million. The portfolio under management was valued at GBP54.36 million at the year-end representing 101% of cost and an increase of 5.0% in valuation on a like-for-like basis over the year.
During the year GBP5.12 million (including GBP4.18 million previously held in companies preparing to trade) was invested in three new companies and one existing portfolio company. The last MBO investment which the Company made, before the change in VCT legislation took effect, was in Access IS, a leading provider of data capture and scanning hardware.
Four new investments that comply with the New VCT Rules have since been made, two of which were made in the financial year under review. These were Redline, a market leader in the provision of security consultancy and training services to airlines, airports, governments and global distribution companies and MPB Group, Europe's leading online marketplace (www.mpb.com) for used photo and video equipment. Two further new investments were made following the year-end. GBP0.69 million was invested into BookingTek Limited, a provider of enterprise software to major hotel groups and GBP0.86 million was invested into Pattern Analytics Ltd (trading as Biosite) a provider of workforce management and security services for the construction sector.
Cash proceeds totalling GBP10.74 million were received from fourteen companies, that were either sold or which repaid loans. Of this total, GBP7.39 million was received in the first half of the Company's financial year as cash proceeds from three substantial disposals of Tessella, Westway and Original Additions. Each of these companies achieved significant returns during the time of the Company's investment and jointly realised total gains over cost of GBP5.95 million.
Full details of the investment activity during the year and a summary of the performance highlights can be found in the Investment Adviser's Review below.
Industry and regulatory developments
HMRC published its guidance on the New VCT Rules in May 2016 which has provided further information on the new requirements at a detailed and practical level. There remain several areas where further clarity is required and the VCT, the Investment Adviser and the VCT industry as a whole, are continuing to work with Government departments, through its industry bodies, to develop a definitive approach. We hope that further clarity will emerge over time.
Despite the EU Referendum result, the Board is working on the assumption that there will be no further changes to the existing VCT legislation in the near future. Industry bodies are still continuing discussions with HMRC and HM Treasury regarding an amendment to the VCT Rules to permit VCTs to provide some replacement capital as part of an investment. If obtained, this would enlarge the pool of possible investment opportunities for VCTs compared to the more restricted regime that now applies under the New VCT Rules.
The Board's view thus remains that the changes in VCT legislation restrict the universe of companies that the Company can invest in. These changes may cause new investments to carry a higher risk, but could also hold the prospect of higher but more variable returns. The VCT's recent investments into Redline, MPB Group, BookingTek and Biosite are examples of the type of investment the Company is likely to make in the future.
Fundraising and liquidity
The Company held cash or near cash resources of GBP29.31 million, including the liquidity held in companies preparing to trade ("CPTs"), at 30 September 2016 representing 41.3% of net assets. The Board is mindful that this level of liquidity is high. This results partly from the impact of the unexpected changes to the VCT Rules which have led to a lower than anticipated amount of new investment in the short to medium term. However, the Investment Adviser has developed a larger pipeline of prospective deals, which should reduce this liquidity over time. The final dividend of 4.00 pence per share being proposed to shareholders at the AGM will have a similar effect.
The Company is not anticipating that there will be any additional fundraising in this tax year to enable the Board to assess further the impact of the New VCT Rules upon future levels of investment.
Audit tender
New legislation has been introduced in the UK on audit firm rotation, resulting from the new European Audit Regulation Directive, making it mandatory for listed companies to undergo a tender process for the audit of their company at least every ten years. An audit firm can, however be appointed for up to twenty years provided a public tender process has been carried out after ten years. The Company, therefore, held an audit tender process in August-September 2016. The Board, on the recommendation of the Audit Committee, has decided to recommend the re-appointment of BDO LLP as the Company's external auditor. For further information on the audit tender process and the performance of the auditor, please see the Report of the Audit Committee in the Annual Report.
Shareholder Event
The Investment Adviser holds an annual VCT event for shareholders in Central London. The event will include presentations on the Mobeus advised VCTs' investment activity and performance. We have been pleased to receive positive comments from those attending in previous years. The next event will again be held at the Royal Institute of British Architects in Central London on Tuesday, 24 January 2017. There will be day-time and separate evening sessions. Shareholders have already been sent an invitation to this event with further details. If you have not replied to the invitation, but would like to attend, please visit the Mobeus website to register. The Board looks forward to meeting all shareholders able to join them at the event.
Outlook
The outcomes of the UK's EU Referendum vote on 23 June 2016 and the more recent US election have had significant and unexpected political repercussions and created a higher degree of global economic uncertainty. The prospect of greater political certainty in the UK followed the appointment of a new Prime Minister and Cabinet. With the possible exception of currency markets, global markets have partially rebalanced from the initial negative reactions. Uncertainty is likely to prevail until the direction of, and potential outcome from, the Brexit negotiations with the EU, trade discussions with other countries and the direction of the new US government become clearer.
In this context, it is too early to comment definitively on the outlook for your Company, but both the Board and Investment Adviser remain positive around future prospects.
Finally, I would like to take this opportunity once again to thank all shareholders for their continued support.
Colin Hook
Chairman
INVESTMENT POLICY
The Company's policy is to invest primarily in a diverse portfolio of UK unquoted companies. Investments are generally structured as part loan and part equity in order to receive regular income and to generate capital gains upon sale.
Investments are made selectively across a number of sectors, principally in established companies.
The Company's cash and liquid resources are held in a range of instruments of varying maturities, subject to the overriding criterion that the risk of loss of capital be minimised.
VCT regulation
The Investment Policy is designed to ensure that the Company continues to qualify and is approved as a VCT by HMRC.
Amongst other conditions, the Company may not invest more than 15% of its investments (by VCT value at the time of investment) in a single company or group and must have at least 70% by VCT value of its investments throughout the period in shares or securities comprised in VCT qualifying holdings of which a minimum overall of 30% by VCT value (70% for funds raised after 6 April 2011) must be in ordinary shares which carry no preferential rights (save as may be permitted under VCT rules). In addition, although the VCT can invest less than 30% (70% for funds raised after 6 April 2011) of an investment in a specific company in ordinary shares it must have at least 10% by VCT value of its total investments in each VCT qualifying company in ordinary shares which carry no preferential rights (save as may be permitted under VCT rules).
The companies in which investments are made must have no more than GBP15 million of gross assets at the time of investment and GBP16 million immediately following the investment to be classed as a VCT qualifying holding.
Asset Mix
The Company initially holds its funds in a portfolio of interest bearing investments and deposits. The investment portfolio of qualifying investments is built up over a three year period with the aim of investing and maintaining at least 70% of net funds raised in qualifying investments.
Risk diversification and maximum exposures
Risk is spread by investing in a number of businesses across different industry sectors. To reduce the risk of high exposure to equities, each qualifying investment is structured to achieve the optimum balance between loan stock and equity to provide protection against downside risk alongside the best potential overall returns.
Co-investment
The Company is entitled to invest alongside other VCTs advised by Mobeus that have a similar investment policy, normally on a pro rata to net assets basis.
Borrowing
The Company's Articles of Association permit borrowing of up to 10% of the adjusted capital and reserves (as defined therein). However, it has never borrowed and the Board has currently no plans to undertake any borrowing.
Investment ADVISER'S Review
Portfolio Review
This has been a year of continued progress within the portfolio. The exceptional level of disposals in 2014 and 2015 has reduced the age of the remaining portfolio such that 44% by value (35% by number) of the current portfolio (excluding companies preparing to trade) comprises investments made since the start of 2014. Many of the portfolio companies are generating cash and have made repayments of their loan stock and are trading well.
Having experienced an unprecedented number of profitable realisations over the last two years, the Investment Adviser does not anticipate this level to be repeated in the near to medium term. The focus will generally be on the expansion opportunities our management teams are pursuing, although our recent experience shows that our portfolio companies are often attractive targets for both mid-market private equity houses and acquisitive corporates. In the meantime, the companies held in the existing portfolio continue to generate a solid income streams for the VCT, principally from attractive yields from the loan stock investments held.
Impact of Changes in VCT Rules
The amendments to VCT legislation were a significant change for the VCT industry and required all VCTs to reconsider the type of investments that VCTs can make in future. We have responded to this by adding experienced growth capital investment resource to our existing team. Along with other investment advisers in the industry, we have been focused on familiarising ourselves with the practical implications of the rules on the types of investment opportunities we can now consider for VCT investment. That process is continuing. Although further clarification is still awaited on HMRC's draft Guidance to the legislation, we are gaining additional practical experience from assessing prospective opportunities at a detailed level and from continuing to seek HMRC Advance Assurance in respect of all new investment proposals. There has been an inevitable slowdown in new deal activity resulting from both the more restrictive criteria for VCT investment under the new VCT rules and delays at HMRC in processing applications for Advance Assurance. Independent research shows that as at 30 September 2016 the amount of completed new investment across the generalist VCT Industry for the first nine months of 2016 had fallen by 35.7% and 53.1% compared to the same periods in 2015 and 2014 respectively.
Against this background we are therefore pleased to have made four new investments under the New VCT Rules, being Redline and MPB Group during the year and BookingTek and Pattern Analytics (trading as Biosite) after the year-end, detailed on below. We intend that the pace and the quantum of new investment will increase over the coming months.
Impact of Brexit
It is too early to comment on the eventual impact of the UK leaving the EU upon the portfolio, in whatever form that departure takes. Whilst the SME sector will not be immune to any general downturn in the UK economy, the portfolio has historically proved to be resilient and we believe will continue to be so. Portfolio companies with foreign currency exposure routinely cover this exposure and any negative effects of a longer term adjustment in exchange rate will not emerge for some months. Some portfolio companies will be beneficiaries of a weaker pound.
Investments by market sector at valuation
Investments remain spread across a number of sectors, primarily in support services, software and computer services and general retailers.
New investment in the year
A total of GBP5.12 million (including GBP4.18 million previously held in companies preparing to trade) was invested into new and existing companies during the year under review. This comprised new investments into Access IS, Redline and MPB Group.
Company Business Date of investment Amount of
new investment
(GBPm)
----------- -------------------- -------------------- ----------------
Data capture
and scanning
Access IS hardware October 2015 3.31*
----------- -------------------- -------------------- ----------------
Access IS is a leading provider of data capture
and scanning hardware. The company has a significant
share of the worldwide market for this technology
in airports and strong positions in the fast
growing markets of both ID & Security and Transport
& Ticketing. This was an opportunity to invest
in a longstanding and profitable business that
is well positioned in its niche market. The
company's latest audited accounts for the year
ended 31 December 2015 show annual sales of
GBP11.49 million and profit before interest,
tax and amortisation of goodwill of GBP1.53
million.
* Amounts held in existing companies preparing
to trade, Knighton Management (GBP1.55 million)
and Tovey Management (GBP1.50 million), along
with a further GBP0.26 million from the Company,
were used for this investment.
-------------------------------------------------------------------------
Provision
of security
products and
Redline services February 2016 1.13*
----------- -------------------- -------------------- ----------------
Redline is a market leader in the provision
of security consultancy and training services
to airlines, governments, airports and global
distribution companies. Redline currently operates
predominantly in the aviation security market
and is at the forefront of counter terrorism
training and services. The investment is being
applied to enable the Company to grow in its
core aviation market and in other sectors. The
company's latest accounts for the year ended
31 March 2016 show turnover of GBP5.01 million
and underlying profit before interest, tax and
amortisation of goodwill of GBP1.04 million.
* GBP1.50 million previously held in Pound FM
Consultants Limited, a company preparing to
trade, was used for this investment. This resulted
in a net repayment of GBP0.37 million. Pound
FM Consultants Limited has subsequently changed
its name to Redline Worldwide Limited.
-------------------------------------------------------------------------
Online marketplace
for used photo
and video
MPB Group equipment June 2016 0.65
----------- -------------------- -------------------- ----------------
MPB is Europe's leading online marketplace for
used photo and video equipment. Based in Brighton,
their custom-designed pricing technology enables
MPB to offer both buy and sell services through
the same platform and offers a one-stop shop
for all its customers. The investment is to
fund expansion of its platform globally, with
launches into both the US and German markets.
The company's latest audited accounts for the
year ended 31 March 2016 show turnover of GBP8.37
million and profit before interest, tax and
amortisation of goodwill of GBP0.001 million.
-------------------------------------------------------------------------
Further investment into an existing portfolio company
In October 2015, the VCT made a further investment of GBP0.03 million into Racoon, a premier supplier of ethically sourced hair for hair extensions, to provide additional working capital to enable the business to strengthen its sales team and to allow the company to broaden its product range.
New investment post year-end
Company Business Date of investment Amount of
new investment
(GBPm)
------------ ---------------- -------------------- ----------------
Direct booking
software for
BookingTek hotels October 2016 0.69
------------ ---------------- -------------------- ----------------
Based in London, BookingTek has developed software
that enables hotels to reduce their reliance
on third-party booking systems through a real-time
booking platform for meeting rooms and restaurant
reservations. The investment is to support further
growth. The company's latest audited accounts
for the year ended 31 July 2015 show turnover
of GBP2.19 million and loss before interest,
tax and amortisation of goodwill of GBP0.33
million.
----------------------------------------------------------------------
Workforce
Biosite management November 2016 0.86
------------ ---------------- -------------------- ----------------
Based in the Midlands, Biosite is a fast growing
provider of biometric access control and software-based
workforce management solutions for the construction
sector. The investment will support the expansion
of the Biosite team to facilitate the development
of new site-management tools to enable managers
to oversee all aspects of a construction project.
The Company's latest accounts for the year ended
31 July 2016 show turnover of GBP4.69 million
and profit before interest, tax and amortisation
of goodwill of GBP0.49 million.
----------------------------------------------------------------------
Realisations in the year
The VCT realised three investments during the year under review for cash proceeds totalling GBP7.39 million. This comprised the very successful realisations of Tessella and Westway as well as the final loan stock payment and related interest from Original Additions. Other realisations were GBP1.53 million, including post-sale receipts from the companies referred to below. With the loan repayments of GBP1.82 million listed below, total net cash proceeds for the year amounted to GBP10.74 million.
Company Business Period of Total cash
investment proceeds over
the life of
the investment/
Multiple
over cost
------------------- ----------------- -------------- -----------------
Tessella Science powered July 2012 GBP4.91 million
technology - December 2.8 times
and consulting 2015 cost
services
-------------------
The VCT sold its investment in Tessella to the
French engineering consultancy, Altran Group
plc for GBP4.04 million. Founded in 1980, Tessella
is now a global business. In 2011 the company
received the prestigious Queen's Award for Enterprise
in Innovation for its work on preserving the
integrity of digital information over long periods
of time, irrespective of numerous changes in
technology. As part of the sale transaction,
the Company has retained a small investment
in this data archiving business, Preservica,
which was previously held within Tessella. The
sale returned an IRR of 42% and during the three
and a half years of this investment, revenue
increased by 43% from GBP18.5 million in 2012
to GBP26.5 million forecast for the current
financial year. The Company has realised a gain,
over current cost, of GBP2.68 million, being
3.80 pence per share.
-------------------------------------------------------------------------
Westway Air conditioning June 2009 GBP3.76 million
systems - December 6.7 times
2015 cost
-------------------
The VCT sold its investment in Westway to ABM
Industries Inc, one of the largest facility
management services providers in the US, for
GBP2.81 million. During the period of the investment
Westway, which is headquartered in Middlesex
and was founded in 2001, expanded its range
of services from heating, ventilation and air
conditioning and now offers other technical
services including mechanical and electrical
maintenance, energy services, communications,
security systems and the servicing of electronic
garment picking systems. The sale returned an
IRR of 48%. The Company has realised a gain
over current cost of GBP2.76 million, being
3.90 pence per share.
-------------------------------------------------------------------------
Original Additions Beauty products September GBP4.41 million
2004 - March 4.4 times
2016 cost
-------------------
Original Additions repaid the final tranche
of its loan stock on the sale of the company
to PDC Brands, a US private equity backed personal
products business. Original Additions serves
the retail and professional beauty markets with
three leading brands. Over the lifetime of the
investment, the company returned an IRR of 41%.
In addition to the above, the Company received a further GBP1.53 million from investments realised in a previous period. This mainly comprised GBP1.29 million as deferred consideration primarily from App-DNA (GBP0.78 million), Focus (GBP0.29 million) and Alaric (GBP0.12 million). In addition, GBP0.24 million was received in consideration for the shares of Pound FM (a company preparing to trade).
Loan stock repayments
Loan stock repayments totalled GBP4.35 million for the year, including GBP2.53 million as part of the proceeds from the companies realised above. Positive cash flow at three other companies (in addition to Pound FM, a company preparing to trade) contributed to the balance of GBP1.82 million, summarised below:-
Company Business Month Amount
(GBP000's)
------------- ------------------------ ------------------ ------------
Logistics, storage
Ward Thomas and removals business December-January 1,225
------------- ------------------------ ------------------ ------------
Expanded polystyrene
Jablite products October-April 316
------------- ------------------------ ------------------ ------------
Vehicle cleaning and
Motorclean valeting services October-February 143
------------- ------------------------ ------------------ ------------
Company preparing
Pound FM to trade February 136
------------- ------------------------ ------------------ ------------
Total 1,820
----------------------------------------------------------- ------------
Mobeus Equity Partners LLP
Investment Adviser
INVESTMENT PORTFOLIO SUMMARY
for the year ended 30 September 2016
Total Total Additional Total % of % of
Cost at Valuation investments Valuation equity portfolio
30 September at at Held(1,2) by value
2016 30 September 30 September
2015 2016
GBP GBP GBP
Virgin Wines
Holding Company
Limited
Online wine
retailer 2,745,503 3,462,350 - 3,706,526 13.7% 6.8%
Tovey Management
Limited (trading
as Access IS)(3)
Provider of
data capture
and scanning
hardware 3,313,932 1,504,000 255,932 3,532,917 13.6% 6.5%
Entanet Holdings
Limited
Wholesale communications
provider 3,175,171 4,790,700 - 3,351,685 14.0% 6.2%
Media Business
Insight Holdings
Limited
A publishing
and events business
focused on the
creative production
industries 3,666,556 3,666,556 - 2,980,641 21.2% 5.5%
ASL Technology
Holdings Limited
Printer and
photocopier services 2,722,106 3,196,284 - 2,870,789 13.3% 5.3%
I-Dox plc(4)
Developer and
supplier of knowledge
management products 453,881 1,687,581 - 2,833,470 1.2% 5.2%
Manufacturing
Services Investment
Limited
Company seeking
to carry on a
business in the
manufacturing
sector 2,708,100 2,708,100 - 2,708,100 16.7% 5.0%
Veritek Global
Holdings Limited
Maintenance
of imaging equipment 2,289,859 2,494,306 - 2,297,607 14.6% 4.2%
Fullfield Limited
(trading as Motorclean)
Vehicle cleaning
and valet services 1,517,734 1,634,751 - 2,020,433 13.2% 3.7%
Tharstern Group
Limited
Software based
management information
systems for the
printing industry 1,454,278 2,012,448 - 1,777,923 16.2% 3.3%
CGI Creative
Graphics International
Limited
Vinyl graphics
to global automotive,
recreation vehicle
and aerospace
markets 1,943,948 1,990,351 - 1,768,414 8.4% 3.3%
Gro-Group Holdings
Limited
Baby sleep products 2,398,928 1,788,187 - 1,651,824 16.3% 3.0%
Vian Marketing
Limited (trading
as Tushingham
Sails)
Design, manufacture
and sale of stand-up
paddleboards
and windsurfing
sails 1,207,437 1,207,437 - 1,593,103 9.5% 2.9%
Hollydale Management
Limited
Company seeking
to carry on a
business in the
food sector 1,554,000 1,554,000 - 1,554,000 15.5% 2.8%
Backhouse Management
Limited
Company seeking
to carry on a
business in the
motor sector 1,504,000 1,504,000 - 1,504,000 15.0% 2.8%
Barham Consulting
Limited
Company seeking
to carry on a
business in the
catering sector 1,504,000 1,504,000 - 1,504,000 15.0% 2.8%
Chatfield Services
Limited
Company seeking
to carry on a
business in the
retail sector 1,504,000 1,504,000 - 1,504,000 15.0% 2.8%
Creasy Marketing
Services Limited
Company seeking
to carry on a
business in the
textile sector 1,504,000 1,504,000 - 1,504,000 15.0% 2.8%
McGrigor Management
Limited
Company seeking
to carry on a
business in the pharmaceutical sector 1,504,000 1,504,000 - 1,504,000 15.0% 2.8% EOTH Limited (trading as Equip Outdoor Technologies) Distributor of branded outdoor equipment and clothing including the Rab and Lowe Alpine brands 1,383,313 1,696,968 - 1,495,307 2.5% 2.7% RDL Corporation Limited Recruitment consultants within the pharmaceutical, business intelligence and IT industries 1,441,667 892,906 - 1,409,809 13.0% 2.6% Jablite Holdings Limited (formerly Duncary 16 Limited) Manufacturer of expanded polystyrene products 498,790 727,290 - 1,271,052 12.1% 2.3% Bourn Bioscience Limited Management of In-vitro fertilisation clinics 1,610,379 1,220,035 - 1,206,547 10.9% 2.2% Redline Worldwide Limited (formerly Pound FM Consultants Limited)(5) Provider of security services to the aviation industry and other sectors 1,129,121 1,504,000 - 1,129,121 9.1% 2.1% Turner Topco Limited (trading as ATG Media)(6) Publisher and online auction platform operator 1,529,075 1,135,058 - 1,114,321 3.8% 2.0% Leap New Co Limited (trading as Ward Thomas Removals, Bishopsgate and Aussie Man & Van) A specialist logistics, storage and removals business 682,183 1,907,095 - 878,989 5.8% 1.6% The Plastic Surgeon Holdings Limited Supplier of snagging and finishing services to the property sector 406,169 618,566 - 836,215 7.6% 1.5% Aquasium Technology Limited(7) Manufacturing and marketing of bespoke electron beam welding and vacuum furnace equipment 250,000 799,825 - 681,377 16.7% 1.3% MPB Group Limited Online marketplace for used photographic equipment 650,075 - 650,075 650,075 7.3% 1.2% Blaze Signs Holdings Limited Manufacturer and installer of signs 418,281 858,687 - 608,241 12.5% 1.1% Omega Diagnostics Group plc In-vitro diagnostics for food intolerance, autoimmune diseases and infectious diseases 280,026 320,843 - 367,511 2.1% 0.7% Vectair Holdings Limited Designer and distributor of washroom products 53,400 235,230 - 302,340 4.6% 0.6% Racoon International Holdings Limited Supplier of hair extensions, hair care products and training 655,851 74,999 30,000 104,999 14.2% 0.2% LightWorks Software Limited Provider of software for CAD and CAM vendors 20,471 51,266 - 61,212 9.2% 0.1% BG Training Limited Technical training business 70,833 - - 70,833 0.0% 0.1% Corero Network Security plc(7) Provider of e-business technologies 600,000 12,033 - 9,577 0.1% 0.0% Newquay Helicopters (2013) Limited (in liquidation) Helicopter service operator 24,684 42,500 - - 5.0% 0.0% CB Imports Group Limited (trading as Country Baskets) Importer and distributor of artificial flowers, floral sundries and home decor products 175,000 - - - 6.0% 0.0% Oxonica Limited(7) International nanomaterials group 2,524,527 - - - 10.6% 0.0% NexxtDrive Limited/Nexxt E-drive Limited(8) Developer and exploiter of mechanical transmission technologies 487,014 - - - 3.9% 0.0% alwaysOn Group Limited(7) Design, supply and integration of data storage solutions 165,661 - - - 10.3% 0.0% Biomer Technology Limited(8) Developer of biomaterials for medical devices 137,170 - - - 3.5% 0.0% Watchgate Limited Holding company 1,000 - - - 33.3% 0.0% Preservica Limited(9) Seller of proprietary digital archiving software - - - - 6.3% 0.0% Disposed in year Tessella Holdings Limited(9) Provider of science powered technology and consulting services - 3,448,417 - - 0.0% 0.0% Westway Services Holdings (2014) Limited Installation, service and maintenance of air conditioning systems - 1,561,033 - - 0.0% 0.0% AppDNA Limited(7) Provider of software repackaging services - - - - 0.0% 0.0% Original Additions Topco Limited Sale of beauty products - 537,948 - - 0.0% 0.0% Focus Pharma Holdings Limited Licensor and distributor of generic pharmaceuticals - - - - 0.0% 0.0% Alaric Systems Limited Software developer and provider of support services for retail credit card payment systems - - - - 0.0% 0.0% Monsal Holdings Limited Supplier of engineering services to the water and waste sectors - - - - 0.0% 0.0% Youngman Group Limited Manufacturer of ladders and access towers - - - - 0.0% 0.0% Knighton Management Limited(3) Former company preparing to trade, used to support the investment into Tovey Management Limited (trading as Access IS) - 1,554,000 - - 0.0% 0.0% Total 53,866,123 60,415,750 936,007 54,364,958 100.0% -------------------------- ------------- ------------- ------------ ------------- ---------- ----------
Notes
(1) The percentage of equity held, and the amounts
co-invested, in these companies by funds managed
by Mobeus Equity Partners LLP are disclosed in
Note 10 of the financial statements.
(2) The percentage of equity held for these companies
is the fully diluted figure, in the event that
for example, management of the investee company
exercises share options where available.
(3) GBP1,504,000 invested in Tovey Management, a
company preparing to trade, was used to acquire
Knighton Management, a second company preparing
to trade held at 30 September 2015, and Azio Limited
(the holding company for Access IS) on 2 October
2015. The Company also advanced a non-qualifying
loan of GBP255,932 to Access IS Limited.
(4) Investment formerly managed by Nova Capital Management
Limited until 31 August 2007.
(5) GBP1,129,121 invested in Pound FM Consultants
Limited, a company preparing to trade, was used
for the investment into Redline Worldwide. This
resulted in a net repayment to the Company of
GBP374,879.
(6) Shares and loan stock in Turner Topco Limited
arose as proceeds from the part realisation of
ATG Media Holdings Limited.
(7) Investment formerly managed by Foresight Group
LLP up to various dates ending on or before 10
March 2009.
(8) Investment formerly managed by Nova Capital Management
Limited until 31 August 2007 and by Foresight
Group until various dates ending on or before
10 March 2009.
(9) The Company realised its investment in December
2015. As part of the consideration, in addition
to cash, the company received a small shareholding
in Preservica, a subsidiary of Tessella that was
demerged as part of the transaction. The fair
value of the holding was deemed to be zero at
the date of the transaction and therefore, the
investment cost is zero.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Financial Statements for each financial year and the Directors have elected to prepare the Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these Financial Statements, the Directors are required to:
- select suitable accounting policies and then
apply them consistently;
- make judgements and accounting estimates that
are reasonable and prudent;
- state whether the Financial Statements have
been prepared in accordance with United Kingdom
accounting standards, subject to any material
departures disclosed and explained in the
Financial Statements;
- prepare the Financial Statements on the going
concern basis unless it is inappropriate to
presume that the Company will continue in
business;
- prepare a Strategic Report, a Director's Report
and Directors' Remuneration Report which comply
with the requirements of the Companies Act
2006.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Website publication
The Directors are responsible for ensuring the Annual Report and the Financial Statements are made available on a website. Financial Statements are published on the Company's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of Financial Statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the Financial Statements contained therein.
Directors' responsibilities pursuant to Disclosure and Transparency Rule 4 of the UK Listing Authority
The Directors confirm to the best of their knowledge that:
(a) The Financial Statements, which have been
prepared in accordance with United Kingdom
Generally Accepted Accounting Practice give
a true and fair view of the assets, liabilities,
financial position and the profit of the
Company.
(b) The Annual Report includes a fair review
of the development and performance of the
business and the position of the Company,
together with a description of the principal
risks and uncertainties that it faces.
Having taken advice from the Audit Committee, the Board considers the Annual Report and Financial Statements, taken as a whole, is fair, balanced and understandable and that it provides the information necessary for shareholders to assess the Company's performance, business model and strategy.
Neither the Company nor the Directors accept any liability to any person in relation to the Annual Report except to the extent that such liability could arise under English law.
For and on behalf of the Board
Colin Hook
FINANCIAL STATEMENTS
INCOME STATEMENT
for the year ended 30 September 2016
Year ended 30 Year ended 30
September 2016 September 2015
Notes Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP
Net unrealised
gains on investments 8 - 549,889 549,889 - 4,574,928 4,574,928
Net gains on
realisation
of investments 8 - 2,506,146 2,506,146 - 2,053,151 2,053,151
Income 3 3,201,629 - 3,201,629 2,997,718 - 2,997,718
Investment Adviser's
fees 4a (419,260) (1,257,781) (1,677,041) (405,687) (1,217,061) (1,622,748)
Investment Advisers'
performance
fees 4b - (1,140,221) (1,140,221) - (667,622) (667,622)
Other expenses (392,228) - (392,228) (471,279) - (471,279)
Profit on ordinary
activities before
taxation 2,390,141 658,033 3,048,174 2,120,752 4,743,396 6,864,148
Taxation on
profit on ordinary
activities 5 (479,600) 479,600 - (386,360) 386,360 -
Profit for the
year and total
comprehensive
income 1,910,541 1,137,633 3,048,174 1,734,392 5,129,756 6,864,148
---------------------- ----- --------- ----------- ----------- ---------- ----------- -----------
Basic and diluted
earnings per
ordinary share: 6 2.68p 1.60p 4.28p 2.58p 7.63p 10.21p
The revenue column of the Income Statement includes all income and expenses. The capital column accounts for the unrealised 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 reflect better the activities of a VCT and in accordance with the Statement of Recommended Practice ("SORP") issued in November 2014 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 year.
BALANCE SHEET
as at 30 September 2016
Company No. 4069483
as at as at
30 September 30 September
2016 2015
Notes GBP GBP
Fixed assets
Investments at fair value 8 54,364,958 60,415,750
Current assets
Debtors and prepayments 304,935 1,082,567
Current asset investments 9 15,338,067 11,158,555
Cash at bank and in hand 9 2,189,856 3,675,257
--------------------------- ----- ------------- -------------
17,832,858 15,916,379
Creditors: amounts falling
due within one year (1,357,178) (1,129,833)
--------------------------- ----- ------------- -------------
Net current assets 16,475,680 14,786,546
Net assets 70,840,638 75,202,296
--------------------------- ----- ------------- -------------
Capital and reserves
Called up share capital 10 719,140 706,930
Capital redemption reserve 11,985 9,288
Share premium reserve 18,308,887 16,977,902
Revaluation reserve 4,744,396 8,997,633
Special distributable
reserve 24,980,045 27,147,965
Profit and loss account 22,076,185 21,362,578
Equity shareholders'
funds 70,840,638 75,202,296
--------------------------- ----- ------------- -------------
Basic and diluted net
asset value per share
Ordinary shares 11 98.51p 106.38p
STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30
SEPTEMBER 2016
Non-distributable reserve Distributable reserves Total
Notes Called Capital Share Revaluation Special Realised Revenue
up redemption premium reserve distributable capital reserve
share reserve reserve reserve reserve
capital
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 October
2015 706,930 9,288 16,977,902 8,997,633 27,147,965 19,653,747 1,708,831 75,202,296
Comprehensive
income
for the
year
Profit
for the
year - - - 549,889 - 587,744 1,910,541 3,048,174
---------------- ------ -------- ----------- ----------- ------------ -------------- ------------ ------------ ------------
Total
comprehensive
income
for the
year - - - 549,889 - 587,744 1,910,541 3,048,174
---------------- ------ -------- ----------- ----------- ------------ -------------- ------------ ------------ ------------
Contributions
by and
distributions
to owners
Shares
issued
via Offer
for
Subscription - - - - - - - -
Dividends
re-invested
into new
shares 14,907 - 1,330,985 - - - - 1,345,892
Shares
bought
back (note
c) (2,697) 2,697 - - (249,518) - - (249,518)
Dividends
paid 7 - - - - - (6,737,039) (1,769,167) (8,506,206)
Total
contributions
by and
distributions
to owners 12,210 2,697 1,330,985 - (249,518) (6,737,039) (1,769,167) (7,409,832)
---------------- ------ -------- ----------- ----------- ------------ -------------- ------------ ------------ ------------
Other
movements
Realised
losses
transferred
to special
reserve
(note
d) - - - (1,918,402) 1,918,402 - -
Realisation
of previously
unrealised
appreciation - - - (4,803,126) - 4,803,126 - -
Total
other
movements - - - (4,803,126) (1,918,402) 6,721,528 - -
At 30
September
2016 719,140 11,985 18,308,887 4,744,396 24,980,045 20,225,980 1,850,205 70,840,638
---------------- ------ -------- ----------- ----------- ------------ -------------- ------------ ------------ ------------
a) The Company's special reserve is available to fund
buybacks of shares as and when it is considered
by the Board to be in the interests of the shareholders,
and to absorb any existing and future realised losses
and for other corporate purposes. As at 30 September
2016, the Company has a special reserve of GBP24,980,045,
all of which relates to reserves from shares issued
on or before 5 April 2014.
b) The realised capital reserve and the revenue reserve
together comprise the Profit and Loss Account of
the Company shown in the Balance Sheet.
c) The shareholders authorised the Company to purchase
its own shares for cancellation pursuant to section
701 of the Companies Act 2006 at the Annual General
Meeting held on 10 February 2016. The authority
was limited to a maximum number of 10,596,882 shares
(this being approximately 14.99% of the issued share
capital at the date of the Notice of the meeting).
This authority will, unless previously revoked or
renewed, expire on the conclusion of the Annual
General Meeting of the Company to be held on 8 February
2017. The minimum price which may be paid for a
share is 1 penny per share, the nominal value thereof.
The maximum price that may be paid for a share is
an amount that is not more than 5% above the average
of the middle market quotations of the shares as
derived from the Daily Official List of the London
Stock Exchange for the five business days preceding
such purchase. The authorities provide that the
Company may make a contract or contracts to purchase
its own shares prior to the expiry of the authority
which may be executed in whole or part after the
expiry of such authority, and may purchase its shares
in pursuance of any such contract. A resolution
to renew these authorities will be proposed at the
Annual General Meeting to be held on 8 February
2017.
d) The transfer of GBP1,918,402 to the special distributable
reserve from the realised capital reserve above
is the total of realised losses incurred by the
Company this year.
STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30
SEPTEMBER 2015
Non-distributable reserves Distributable reserves Total
Called Capital Share Revaluation Special Realised Revenue
up redemption premium reserve distributable capital reserve
share reserve reserve reserve reserve
capital
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 October
2014 604,769 3,750 5,662,818 7,662,673 29,576,755 23,917,139 1,878 69,306,405
Comprehensive
income
for the
year
Profit
for the
year - - - 4,574,928 - 554,828 1,734,392 6,864,148
---------------- -------- ----------- ----------- ------------ -------------- ------------ ------------ -------------
Total
comprehensive
income
for the
year - - - 4,574,928 - 554,828 1,734,392 6,864,148
---------------- -------- ----------- ----------- ------------ -------------- ------------ ------------ -------------
Contributions
by and
distributions
to owners
Shares
issued
under Offer
for
Subscription 90,435 - 9,716,707 - (42,292) - - 9,764,850
Dividends
re-invested
into new
shares 17,264 - 1,598,377 - - - - 1,615,641
Shares
bought
back (5,538) 5,538 - - (527,852) - - (527,852)
Dividends
paid - - - - - (9,916,834) (1,904,062) (11,820,896)
Total
contributions
by and
distributions
to owners 102,161 5,538 11,315,084 - (570,144) (9,916,834) (1,904,062) (968,257)
---------------- -------- ----------- ----------- ------------ -------------- ------------ ------------ -------------
Other movements
Realised
losses
transferred
to special
reserve - - - (1,858,646) 1,858,646 - -
Realisation
of previously
unrealised
appreciation - - - (3,239,968) - 3,239,968 - -
Total other
movements - - - (3,239,968) (1,858,646) 5,098,614 - -
---------------- -------- ----------- ----------- ------------ -------------- ------------ ------------ -------------
At 30 September
2015 706,930 9,288 16,977,902 8,997,633 27,147,965 19,653,747 1,708,831 75,202,296
---------------- -------- ----------- ----------- ------------ -------------- ------------ ------------ -------------
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 Dividend
Investment Scheme 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 and the Company's Dividend Investment
Scheme.
Revaluation reserve - Increases and decreases in the
valuation of investments held at the year-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 (as recorded in Note
9 to these Financial Statements), all such movements
through both revaluation and realised capital reserves
are shown within the Income Statement for the year.
Special distributable reserve - The cost of share
buybacks is charged to this reserve. In addition,
any realised losses on the sale or impairment of investments
(excluding transaction costs), and 75% of the Investment
Adviser fee expense, and the related tax effect, are
transferred from the realised capital reserve to this
reserve.
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; and
- 75% of the Investment Adviser fee expense and
100% of any performance 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 together with the related tax effect, as well as income dividends paid that are classified as revenue in nature.
STATEMENT OF CASH FLOWS
for the year ended 30 September 2016
Year ended Year ended
Notes 30 September 2016 30 September 2015
GBP GBP
Cash flows from operating activities
Profit for the financial year 3,048,174 6,864,148
Adjustments for:
Net unrealised gains on investments (549,889) (4,574,928)
Net gains on realisations on investments (2,506,146) (2,053,151)
Decrease in debtors 77,630 171,028
Increase/(decrease) in creditors and accruals 190,471 (1,020,953)
Net cash inflow/(outflow) from operating activities 260,240 (613,856)
Cash flows from investing activities
Purchase of investments 8 (936,007) (26,134,832)
Disposal of investments 8 10,742,834 12,247,446
Decrease/(increase) in bank deposits with a maturity over three months 1,960,755 (2,031,611)
Net cash inflow/(outflow) from investing activities 11,767,582 (15,918,997)
Cash flows from financing activities
Shares issued as part of Offer for subscription - 9,764,851
Equity dividends paid 7 (7,160,312) (10,205,256)
Purchase of own shares (212,644) (527,387)
Net cash outflow from financing activities (7,372,956) (967,792)
Net increase/(decrease) in cash and cash equivalents 4,654,866 (17,500,645)
Cash and cash equivalents at start of year 7,693,045 25,193,690
Cash and cash equivalents at end of year 12,347,911 7,693,045
Cash and cash equivalents comprise:
Cash at bank and in hand 9 2,189,856 3,675,257
Cash equivalents 9 10,158,055 4,017,788
Notes TO THE financial statements
For the year ended 30 September 2016
1 Company Information
The Income and Growth VCT plc is a public
limited company incorporated in England,
registration number 4069483. The registered
office is 30 Haymarket, London, SW1Y 4EX.
2 Basis of preparation
A summary of the principal accounting policies,
all of which have been applied consistently
throughout the year are set out at the start
of the related disclosure throughout the
Notes to the Financial Statements. All accounting
policies are included within an outlined
box at the top of each relevant Note.
These financial statements have been prepared
in accordance with applicable United Kingdom
accounting standards, Financial Reporting
Standard 102 ("FRS102"), with the Companies
Act 2006 and the 2014 Statement of Recommended
practice, 'Financial Statements of Investment
Trust Companies and Venture Capital Trusts'
('the SORP') issued by the Association of
Investment Companies.
This is the first year in which the financial
statements have been prepared under FRS102.
There has been no material change in the
accounting policies and so there has been
no restatement of comparatives, other than
in relation to Cash at bank and Current
asset investments. This is just a presentational
change in both cases and has no effect on
net assets. The Company has elected to apply
early the revised disclosure requirements
as set out in Amendments to FRS 102 - Fair
Value hierarchy disclosures issued in March
2016.
3 Income
Dividends receivable on quoted equity shares
are brought into account on the ex-dividend
date. Dividends receivable on unquoted equity
shares are brought into account when the
Company's right to receive payment is established
and there is no reasonable doubt that payment
will be received.
Interest income on loan stock is accrued
on a daily basis. Provision is made against
this income where recovery is doubtful or
where it will not be received in the foreseeable
future. Where the loan stocks only require
interest or a redemption premium to be paid
on redemption, the interest and redemption
premium is recognised as income or capital
as appropriate once redemption is reasonably
certain. When a redemption premium is designed
to protect the value of the instrument holder's
investment rather than reflect a commercial
rate of revenue return the redemption premium
is recognised as capital. The treatment
of redemption premiums is analysed to consider
if they are revenue or capital in nature
on a company by company basis. Accordingly,
the redemption premium recognised in the
year ended 30 September 2016 has been classified
as capital and has been included within
realised gains on investments.
2016 2015
GBP GBP
Income from bank deposits 101,393 121,523
---------------------------------- --------- ---------
Income from investments
- from equities 114,915 167,656
- from OEIC funds 38,412 29,977
- from loan stock 2,946,909 2,667,443
3,100,236 2,865,076
Other income - 11,119
Total income 3,201,629 2,997,718
---------------------------------- --------- ---------
Total income comprises
Revenue dividends received 153,327 197,633
Interest 3,048,302 2,788,966
Other income - 11,119
Total Income 3,201,629 2,997,718
---------------------------------- --------- ---------
Income from investments comprises
Listed UK securities 36,086 16,000
Listed overseas securities 38,412 29,977
Unlisted UK securities 3,025,738 2,819,099
Total investment income 3,100,236 2,865,076
---------------------------------- --------- ---------
Total loan stock interest due but not recognised
in the year was GBP525,395 (2015: GBP269,052)
due to uncertainty over its recoverability.
--------------------------------------------------------
4 Investment Adviser's fees and performance
fees
25% of the Investment Adviser's fees are charged
to the revenue column of the Income Statement,
while 75% is charged against the capital column
of the Income Statement. This is in line with
the Board's expected long-term split of returns
from the investment portfolio of the Company.
100% of any performance incentive fee payable
for the year is charged against the capital
column of the Income Statement, as it is based
upon the achievement of capital growth.
a) Investment Adviser's fees
Revenue Capital Total Revenue Capital Total
2016 2016 2016 2015 2015 2015
GBP GBP GBP GBP GBP GBP
----------------- -------- ---------- ---------- -------- ---------- ----------
Mobeus Equity
Partners LLP 419,260 1,257,781 1,677,041 405,687 1,217,061 1,622,748
----------------- -------- ---------- ---------- -------- ---------- ----------
Under the terms of a revised investment
management agreement dated 29 March 2010,
Mobeus Equity Partners LLP ("Mobeus") (formerly
Matrix Private Equity Partners LLP ("MPEP"))
provides investment advisory, administrative
and company secretarial services to the
Company, for a fee of 2.4% per annum of
closing net assets, calculated on a quarterly
basis by reference to the net assets at
the end of the preceding quarter. One sixth
of this fee is subject to minimum and maximum
limits of GBP150,000 (2015: GBP150,000)
and GBP170,000 (2015: GBP170,000) per annum
respectively.
The Investment Adviser fees disclosed above
are stated after applying a cap on expenses
excluding IFA trail commission and exceptional
items set at 3.25% of closing net assets
at the year-end. In accordance with the
investment management agreement any excess
expenses are wholly borne by the Investment
Adviser. The excess expenses during the
year attributable to the Investment Adviser
amounted to GBPnil (2015: GBPnil).
b) Investment Advisers' performance fees
Revenue Capital Total Revenue Capital Total
2016 2016 2016 2015 2015 2015
GBP GBP GBP GBP GBP GBP
Portfolio
Mobeus Equity
Partners LLP - 1,096,391 1,096,391 - 667,622 667,622
Foresight
Group LLP - 43,830 43,830 - - -
----------------- -------- ---------- ---------- -------- ---------- ----------
1,140,221 1,140,221 - 667,622 667,622
----------------- -------- ---------- ---------- -------- ---------- ----------
Under a Deed of Termination and Variation
relating to Performance Incentive Agreements
dated 29 March 2010, the Investment Adviser's
Incentive Agreement for the former 'O' Share
Fund was continued, while the former 'S'
Share Fund's Incentive Agreement was terminated.
Under the terms of the pre-merger 'O' Share
Fund Incentive Agreement, each of the ongoing
Investment Adviser, Mobeus Equity Partners
LLP and a former Investment Adviser, Foresight
Group LLP ("F oresight") are entitled to
a performance fee equal to 20% of the excess
of the value of any realisation of an investment
made after 30 June 2007, over the value
of that investment in an Investment Adviser's
portfolio at that date ("the Embedded Value"),
which value is itself uplifted at the rate
of 6% per annum subject to a High Watermark
test.
On 30 September 2014, a new incentive fee
agreement was signed between the Board and
Mobeus, with effect from 1 October 2013,
to amend and replace the previous agreement.
The previous agreement remains in force,
but only with the former adviser, Foresight
Group LLP, to whom, for the year ended 30
September 2016, GBP43,830 (2015: GBPnil)
is payable. The agreement is due to expire
on 10 March 2019. Mobeus waived their right
to their portion of the fee, under the previous
agreement.
Any payment under the new incentive agreement
is now 15% of net realised gains for each
year, payable in cash. It is payable only
if Cumulative Net Asset Value (NAV) total
return per share (being the closing NAV
at a year-end plus cumulative dividends
paid to that year-end, since 1 October 2013)
equals or exceeds a Target Return. The Target
Return is the greater of two targets, being:
i) compound growth of 6% per annum (but
5% per annum for the year ended 30 September
2014 only), before deducting any incentive
fee payable (for the year of calculation
only) under both this amended agreement
and the existing incentive agreement
with Foresight Group LLP in Cumulative
NAV total return per share; or
ii) the cumulative percentage change in the
Consumer Prices Index since 1 October
2013 to the relevant financial year end,
the resultant figure then being multiplied
by (100+A)/100, where A is the number
of full 12 month periods (or part thereof)
that have passed between 1 October 2013
and the relevant financial year end.
Both measures of Target Return are applied
to the same opening base, being NAV per
share as at 30 September 2013 of 113.90
pence. The objective of this Target Return
is to enable shareholders to benefit from
a cumulative NAV return of at least 6% per
annum (5% in the financial year ended 30
September 2014), before any incentive fee
is payable. Once a payment has been made,
cumulative NAV total return is calculated
after deducting past years' incentive fees
paid and payable.
Under this amended agreement, any fee payments
to Mobeus are subject to an annual cap of
an amount equal to 2% of the net assets
of the Company as at the immediately preceding
year-end. This cap will include any fee
payable to Foresight Group LLP under the
old agreement, although any such payment
to Foresight Group LLP is not capped. Any
excess over the 2% remains payable to Mobeus
in the following year(s), subject to the
2% annual cap in such subsequent year(s)
and after any payment in respect of such
subsequent year(s).
The Target Return for the year ended 30
September 2016 was a 6% uplift on the previous
year's Target Return of 126.77 pence, being
134.38 pence. As Cumulative Total NAV return
is 140.09 pence per share, the Target Return
has been met and a fee is payable. This
fee amounts to GBP1,096,391 and has been
accrued in these Financial Statements. This
is payable following the approval of this
Annual Report by shareholders at the AGM.
c) Offer for Subscription fees
No funds were raised by an offer by the
VCT in the year (2015: GBP10 million). Accordingly,
no subscription fees were payable to Mobeus
in the year (2015: GBP0.33 million, where
all costs associated with the Offer were
met out of these fees by Mobeus, excluding
any payments to financial advisers facilitated
under the terms of the Offer).
5 Taxation on profit on ordinary activities
The tax expense for the year comprises current
tax and is recognised in profit or loss. The
current income tax charge is calculated on the
basis of tax rates and laws that have been enacted
or substantively enacted by the reporting date.
Any tax relief obtained in respect of investment
advisory fees allocated to capital is reflected
in the capital reserve - realised and a corresponding
amount is charged against revenue. The tax relief
is the amount by which corporation tax payable
is reduced as a result of these capital expenses.
Deferred tax is recognised in respect of all
timing differences that have originated but
not reversed at the balance sheet date where
transactions or events that result in an obligation
to pay more tax in the future or a right to
pay less tax in the future have occurred at
the balance sheet date. Timing differences are
differences between the Company's taxable profits
and its results as stated in the financial statements
that arise from the inclusion of gains and losses
in the tax assessments in periods different
from those in which they are recognised in the
Financial Statements.
Deferred tax is measured at the average tax
rates that are expected to apply in the years
in which the timing differences are expected
to reverse based on tax rates and laws that
have been enacted or substantively enacted at
the balance sheet date. Deferred tax is measured
on a non-discounted basis.
A deferred tax asset would be recognised only
to the extent that it is more likely than not
that future taxable profits will be available
against which the asset can be utilised.
2016 2016 2016 2015 2015 2015
Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP
a) Analysis of
tax charge:
UK Corporation
tax on profits/(losses)
for the year 479,600 (479,600) - 386,360 (386,360) -
------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Total current
tax charge/(credit) 479,600 (479,600) - 386,360 (386,360) -
------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Corporation tax
is based on a
rate of 20% (2015:
20.5%)
b) Profit on ordinary
activities before
tax 2,390,141 658,033 3,048,174 2,120,752 4,743,396 6,864,148
Profit on ordinary
activities multiplied
by main company
rate of corporation
tax in the UK
of 20.0% (2015:
20.5%) 478,028 131,607 609,635 434,754 972,396 1,407,150
Effect of:
UK dividends (22,983) - (22,983) (34,369) - (34,369)
Unrealised gains
not taxable - (109,978) (109,978) - (937,860) (937,860)
Realised gains
not taxable - (501,229) (501,229) - (420,896) (420,896)
Losses carried
forward/(utilised) 24,555 - 24,555 (14,025) - (14,025)
Actual current
tax charge 479,600 (479,600) - 386,360 (386,360) -
------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Tax relief relating to Investment Adviser fees
is allocated between revenue and capital where
such relief can be utilised. The rate of Corporation
tax applied to the company has reduced due to
a reduction in HMRC's main company rate of corporation
tax to 20% on 1 April 2015, from the previous
rate of 21%.
No asset or liability has been recognised for
deferred tax in relation to capital gains or
losses on revaluing investments as the Company
is exempt from corporation tax in relation to
capital gains or losses as a result of qualifying
as a Venture Capital Trust.
There is no potential liability to deferred
tax (2015: GBPnil). There is an unrecognised
deferred tax asset of GBP1,034,000 (2015: GBP1,192,000).
6 Basic and diluted earnings and return per share
2016 2015
GBP GBP
Total earnings after taxation: 3,048,174 6,864,148
Basic and diluted earnings per
share (note a) 4.28p 10.21p
-------------------------------------- ------------------------------------------------ -----------
Revenue profit from ordinary
activities after taxation 1,910,541 1,734,392
Basic and diluted revenue earnings
per share (note b) 2.68p 2.58p
-------------------------------------- ------------------------------------------------ -----------
Net unrealised capital gains
on investments 549,889 4,574,928
Net realised capital gains on
investments 2,506,146 2,053,151
Capitalised Investment Adviser
fees less taxation (778,181) (830,701)
Investment Adviser's performance
fees (1,140,221) (667,622)
-------------------------------------- ------------------------------------------------ -----------
Total capital return 1,137,633 5,129,756
Basic and diluted capital earnings
per share (note c) 1.60p 7.63p
-------------------------------------- ------------------------------------------------ -----------
Weighted average number of shares
in issue in the year 71,198,046 67,212,047
-------------------------------------- ------------------------------------------------ -----------
a) Basic earnings per share is total earnings
after taxation divided by the weighted average
number of shares in issue
b) Revenue earnings per share is the revenue
return after taxation divided by the weighted
average number of shares in issue.
c) Capital earnings per share is the capital
return after taxation divided by the weighted
average number of shares in issue.
7 Dividends paid and payable
Dividends payable are recognised as distributions
in the financial statements when the Company's
liability to pay them has been established.
This liability is established for interim dividends
when they are paid, and for final dividends
when they are approved by the shareholders,
usually at the Company's Annual General Meeting.
The Company's status as a VCT means it has
to comply with Section 259 of the Income Tax
Act 2007, which requires that no more than
15% of the income from shares and securities
in a year can be retained from the revenue
available for distribution for the year. Accordingly,
the Board is required to determine the amount
of minimum income dividend.
-----------------------------------------------------------------------------------------------------
Dividend Type For the Pence Date paid 2016 2015
year per GBP GBP
ended share
30
September
Second 30 October
interim Income 2014 2.00p 2014 - 1,210,445
Second 30 October
interim Capital 2014 6.00p 2014 - 3,631,337
20 March
Final Capital 2014 4.00p 2015 - 2,778,526
30 June
Interim Income 2015 1.00p 2015 - 701,394
30 June
Interim Capital 2015 5.00p 2015 - 3,506,972
15 February
Final Income 2015 1.00p 2016 706,921 -
15 February
Final Capital 2015 5.00p 2016 3,534,606 -
07 July
Interim Income 2016 1.00p 2016 1,067,478 -
07 July
Interim Capital 2016 5.00p 2016 3,202,433 -
Previous dividends not claimed
within the statutory period (5,232) (7,778)
------------------------------------------------------------------------------- ---------- -----------
Total dividends paid in year 8,506,206 11,820,896
------------------------------------------------------------------------------- ---------- -----------
* GBP8,506,206 (30 September 2015: GBP11,820,896) disclosed
above differs to that shown in the Statement of Cash Flows of
GBP7,160,312; (30 September 2015: GBP10,205,256) due to GBP1,345,894
(30 September 2015: GBP1,615,640) of new shares issued as part
of the Company's Dividend Investment Scheme.
2016 2016 2016 2015 2015 2015
Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP
Proposed distribution
to equity holders
at the year-end
Final dividend
for the year ended
30 September 2016
of 1.00 penny
(income) (2015:
1.00 penny), 3.00
pence (capital)
(2015: 5.00 pence)
per ordinary share 719,140 2,157,421 2,876,561 706,930 3,534,650 4,241,580
------------------------ ---------- ---------- -------------- ---------- ---------- --------------
Any proposed final dividend is subject to
approval by shareholders at the Annual General
Meeting and has not been included as a liability
in these financial statements.
Set out below are the total income dividends
payable in respect of the financial year,
which is the basis on which the requirements
of section 274 of the Income Tax Act 2007
are considered.
2016 2015
GBP GBP
Revenue available by way of
dividends for the year 1,910,541 1,734,392
Interim income dividend for
the year - 1.00 penny (2015:
1.00 penny) 1,067,478 701,394
Proposed final income dividend
for the year - 1.00 penny (2015:
1.00 penny) 719,140 706,930
Total income dividends for the
year 1,786,618 1,408,324
-------------------------------------------------------------------- ---------- ----------
8 Investments at fair value
The most critical estimates, assumptions
and judgments relate to the determination
of the carrying value of investments at "fair
value through profit and loss" (FVTPL). All
investments held by the Company are classified
as FVTPL and measured in accordance with
the International Private Equity and Venture
Capital ("IPEVC") guidelines, as updated
in December 2015. This classification is
followed as the Company's business is to
invest in financial assets with a view to
profiting from their total return in the
form of capital growth and income.
For investments actively traded on organised
financial markets, fair value is generally
determined by reference to Stock Exchange
market quoted bid prices at the close of
business on the balance sheet date. Purchases
and sales of quoted investments are recognised
on the trade date where a contract of sale
exists whose terms require delivery within
a time frame determined by the relevant market.
Purchases and sales of unlisted investments
are recognised when the contract for acquisition
or sale becomes unconditional.
Unquoted investments are stated at fair value
by the Directors in accordance with the following
rules, which are consistent with the IPEVC
guidelines:
All investments are held at the price of
a recent investment for an appropriate period
where there is considered to have been no
change in fair value. Where such a basis
is no longer considered appropriate, each
investment is considered as a whole on a
'unit of account' basis, alongside the following
factors:
--------------------------------------------------------------------------------------------
(i) Where a value is indicated by a material
arms-length transaction by an independent
third party in the shares of a company,
this value will be used.
(ii) In the absence of i) and depending upon
both the subsequent trading performance
and investment structure of an investee
company, the valuation basis will usually
move to either:-
a) an earnings multiple basis. The shares
may be valued by applying a suitable
price-earnings ratio to that company's
historic, current or forecast post-tax
earnings before interest and amortisation
(the ratio used being based on a comparable
sector but the resulting value being
adjusted to reflect points of difference
identified by the Investment Adviser
compared to the sector including, inter
alia, a lack of marketability).
b) where a company's underperformance
against plan indicates a diminution
in the value of the investment, provision
against cost is made, as appropriate.
c) Premiums that will be received upon
repayment of loan stock investments
are accrued at fair value when the
Company receives the right to the premium
and when considered recoverable.
d) Where an earnings multiple or cost
less impairment basis is not appropriate
and overriding factors apply, discounted
cash flow or net asset valuation bases
may be applied.
A key judgement made in applying the above
accounting policy relates to investments
that are permanently impaired. Where the
value of an investment has fallen permanently
below cost, the loss is treated as a permanent
impairment and as a realised loss, even though
the investment is still held. The Board assesses
the portfolio for such investments and, after
agreement with the Investment Adviser, will
agree the values that represent the extent
to which an investment loss has become realised.
This is based upon an assessment of objective
evidence of that investment's future prospects,
to determine whether there is potential for
the investment to recover in value. No additional
such losses were identified in the year.
2016 2015
Traded on AIM 3,210,558 2,020,457
Unquoted equity shares 12,137,532 18,105,585
Unquoted preference shares 22,646 24,581
Unquoted loan stock 38,994,222 40,265,127
Total 54,364,958 60,415,750
-------------------------------------------------- ------------------------- -------------
Brought forward net unrealised
gains now realised 4,803,126 3,239,968
Realised gains during the
year 2,724,579 2,400,249
Transaction costs (218,433) (173,549)
-------------------------------------------------- ------------------------- -------------
Total realised gains 7,309,272 5,466,668
Unrealised gains for the
year 549,889 4,574,928
-------------------------------------------------- ------------------------- -------------
Total realised and unrealised
gains 7,859,161 10,041,596
-------------------------------------------------- ------------------------- -------------
Summary of movements on investments during
the year
Traded Unquoted Unquoted Unquoted Total
on ordinary preference loan
AIM shares shares stock
GBP GBP GBP GBP GBP
Cost at 30
September 2015 1,333,907 19,298,676 27,040 36,819,426 57,479,049
Realised losses
on investments
still held (500,000) (4,582,683) (787) (227,462) (5,310,932)
Unrealised
gains/(losses)
at
30 September
2015 1,186,550 3,389,592 (1,672) 3,673,163 8,247,633
------------------------ ---------- ------------ ----------- ------------ -------------
Valuation at
30 September
2015 2,020,457 18,105,585 24,581 40,265,127 60,415,750
Purchases at
cost - 495,295 - 440,712 936,007
Sales - proceeds - (6,396,821) - (4,346,013) (10,742,834)
Reclassification
at value - (301) 301 - -
Net realised
gains - 2,418,807 - 87,339 2,506,146
Unrealised
gains/(losses)
in the year 1,190,101 (2,485,033) (2,236) 2,547,057 1,249,889
------------------------ ---------- ------------ ----------- ------------ -------------
Valuation at
30 September
2016 3,210,558 12,137,532 22,646 38,994,222 54,364,958
------------------------ ---------- ------------ ----------- ------------ -------------
Cost at 30
September 2016 1,333,907 18,112,271 27,341 34,392,604 53,866,123
Realised losses
on investments
still held (500,000) (3,467,312) (787) (227,462) (4,195,561)
Unrealised
gains/(losses)
at 30 September
2016 2,376,651 (2,507,427) (3,908) 4,829,080 4,694,396
------------------------ ---------- ------------ ----------- ------------ -------------
Valuation at
30 September
2016 3,210,558 12,137,532 22,646 38,994,222 54,364,958
------------------------ ---------- ------------ ----------- ------------ -------------
Realised gains above of GBP1,249,889 differ
from that shown in the Income Statement and
the Investment Portfolio Summary of GBP549,889.
The difference of GBP700,000 is a reduction
for the year in the estimated fair value
of contingent consideration held at the Balance
Sheet date to GBP50,000 (2015: GBP750,000),
included within other debtors in Note 11
to the Financial Statements. This reduction
is because consideration of GBP906,837 was
received in the year, of which GBP700,000
was recognised in the previous year, now
realised. The remaining GBP50,000 of contingent
consideration at the Balance Sheet date also
explains all of the difference between unrealised
gains at 30 September 2016 above of GBP4,694,396
and that shown on the Statement of Changes
in Equity of GBP4,744,396.
Provisions and write-offs against unlisted
investments
The amounts valued below cost at the end
of the year ('provisions') or written-off
against unlisted investments ('permanent
impairments') were as follows:
Total Provisions Net write-offs
at end of year in year(1)
GBP GBP
Financial Year
2016 11,500,860 (1,115,371)
2015 9,793,793 65,779
2014 7,709,509 (1,876,253)
2013 10,475,290 2,001,476
2012 11,991,733 313,850
2011 11,206,678 1,881,554
2010 11,575,422 2,524,527
2009 10,537,427 300,000
(1) During the year, GBP1,115,371 of the cost
of certain investments which were permanently
impaired were written back, as these investments
were liquidated in the year.
Details of the movements in unrealised gains
and losses in the year are disclosed within
the Investment Portfolio Summary below.
Major movements in investments
Tessella Holdings Limited was realised in
the year for net proceeds of GBP4,043,706,
realising a net gain in the year of GBP595,289.
Westway Services (2014) Limited was realised
in the year for net proceeds of GBP1,502,957,
realising a net gain in the year of GBP1,252,209.
Net unrealised gains of GBP549,889 include
valuation uplifts of GBP1,145,889 relating
to IDOX plc, and GBP772,262 relating to Jablite
Holdings Limited and valuation reductions
of GBP1,439,015 for Entanet Holdings Limited
and GBP685,915 for Media Business Insight
Holdings Limited.
9 Current asset investments and Cash at bank
Cash equivalents, for the purposes of the
Statement of Cash Flows, comprise bank deposits
repayable on up to three months' notice and
funds held in OEIC money-market funds. Current
asset investments are the same but also include
bank deposits that mature after three months.
Current asset investments are disposable
without curtailing or disrupting the business
and are readily convertible into known amounts
of cash at their carrying values at immediate
or up to six months' notice. Cash, for the
purposes of the Statement of Cash Flows is
cash held with banks in accounts subject
to immediate access. Cash at bank in the
Balance Sheet is the same.
2016 2015
GBP GBP
OEIC Money market funds 10,158,055 1,471,708
Bank deposits that mature within
three months but are not immediately
repayable - 2,546,080
-------------------------------------------------------------------- ------------ -------------
Cash equivalents per Statement
of Cash Flows 10,158,055 4,017,788
Bank deposits that mature after
three months 5,180,012 7,140,767
-------------------------------------------------------------------- ------------ -------------
Current asset investments 15,338,067 11,158,555
-------------------------------------------------------------------- ------------ -------------
Cash at bank 2,189,856 3,675,257
-------------------------------------------------------------------- ------------ -------------
10 Called up share capital
2016 2015
GBP GBP
Allotted, called-up and fully
paid:
Ordinary Shares of 1p each: 71,914,023
(2015: 70,693,007) 719,140 706,930
Under the terms of the Dividend Investment Scheme, a total of 1,490,729 (2015: 1,726,349)
ordinary shares were allotted during the year for a total consideration of GBP1,345,892 (2015:
GBP1,615,641).
During the year, the Company purchased 269,713 (2015: 553,800) of its own ordinary shares
for cash (representing 0.4% (2015: 0.9%) of the ordinary shares in issue at the start of the
year) at the prevailing market price for a total cost of GBP249,518 (2015: GBP527,852). The
shares bought back were subsequently cancelled.
11 Basic and diluted net asset value
per share
2016 2015
GBP GBP
Net assets 70,840,638 75,202,296
Number of shares in issue 71,914,023 70,693,007
Basic and diluted net asset value per share 98.51 p 106.38 p
12 Post balance sheet events
On 20 October 2016, GBP0.69 million was invested into BookingTek Limited.
On 23 November 2016, GBP0.86 million was invested into Pattern Analytics Ltd (trading as Biosite.
13 Statutory information
The financial information set out in these statements does not constitute the Company's statutory
accounts for the year ended 30 September 2016 but is derived from those accounts. Statutory
accounts will be delivered to the Registrar of Companies after the Annual General Meeting.
The auditors have reported on these accounts and their report was unqualified and did not
contain a statement under section 498(2) of the Companies Act 2006.
14 Annual Report
The Annual Report will be published on the Company's website at www.incomeandgrowthvct.co.uk
shortly and following the adoption of electronic communications by the Company, shareholders
will shortly receive notification from the Company on how to download a pdf of the Report
from the website. Shareholders and members of the public, who wish to receive a hard copy
of the Annual Report, may request a copy by writing to the Company Secretary, Mobeus Equity
Partners LLP, 30 Haymarket (4th floor), London SW1Y 4EX or by email: vcts@mobeusequity.co.uk.
15 Annual General Meeting
The Annual General Meeting of the Company will be held at 11.00 am on Wednesday, 8 February
2017 at The Clubhouse, 8 St James's Square, London, SW1Y 4JU.
Contact details for further enquiries:
Robert Brittain of Mobeus Equity Partners LLP (the Company Secretary) on 020 7024 7600 or by e-mail to vcts@mobeusequity.co.uk.
Mark Wignall or Mike Walker at Mobeus Equity Partners LLP (the Investment Adviser) on 020 7024 7600 or by e-mail to info@mobeusequity.co.uk.
DISCLAIMER
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKQDQPBDDCBD
(END) Dow Jones Newswires
December 15, 2016 02:00 ET (07:00 GMT)
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