We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| 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 | 70.75 | 70.00 | 70.00 | 0.00 | 08:00:27 |
| 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 May 2019 to May 2024
TIDMIGV
RNS Number : 3071F
Income & Growth VCT (The) PLC
16 May 2017
The Income & Growth VCT plc ("the Company", "the VCT" or "I&G VCT") is a Venture Capital Trust ("VCT") listed on the London Stock Exchange. Its investment portfolio is advised by Mobeus Equity Partners LLP ("Mobeus").
Company Objective
The objective of the Company is to provide investors with an attractive return, by maximising the stream of tax-free dividend distributions from the income and capital gains generated by a diverse and carefully selected portfolio of investments, while continuing at all times to qualify as a VCT.
Financial Highlights
Results for the six months ended 31 March 2017
Hot Features
Premium
- Net asset value total return per share was 2.0% for
the six months.
- Share price total return per share was 1.9% for the
six months.
- The Board has declared an interim dividend for the
current year of 3.00 pence per share to be paid to
shareholders on 20 June 2017, which will bring cumulative
dividends paid since the inception of the current
share class* to 87.50 pence per share.
- The Company made new investments totalling GBP3.14
million into four companies, BookingTek, Biosite,
Tapas Revolution and Buster & Punch. In addition,
GBP0.93 million was invested in Preservica, an existing
portfolio company.
Performance Summary
The table below shows the recent past performance of the Company's current class* of shares for each of the last five years, and the current year to date.
Net assets NAV Share price1 Cumulative Cumulative Dividends
per dividends total return paid
share paid per share to and proposed
per shareholders2 in respect
share of each
year
-----------------------
(NAV (Share
basis) price
basis)
As at (GBPm) (p) (p) (p) (p) (p) (p)
31 March
2017 69.88 96.43 86.50 84.50 180.93 171.00 3.004
30 September
2016 70.84 98.51 88.80 80.50 179.01 169.30 10.00
30 September
2015 75.20 106.38 93.50 68.50 174.88 162.00 12.00
30 September
2014 69.31 114.60 103.503 50.50 165.10 154.00 18.00
30 September
2013 60.47 113.90 99.50 40.50 154.40 140.00 10.00
30 September
2012 50.55 109.62 97.00 28.50 138.12 125.50 26.00
-------------- ---------- ------ ------------ ---------- ------- -------------- ---------------
1 Source: Panmure Gordon & Co (mid-price).
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 launch of the current share class*.
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, which was excluded from the listed share price at that year end.
4 An interim dividend of 3.00 pence, referred to in the Financial Highlights above, is payable to shareholders on 20 June 2017.
* The first allotment of the former 'S' share class, now the current share class, took place on 6 February 2008.
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 in 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.incomeandgrowthvct.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 am pleased to present the Company's Half-Year Report for the six months ended 31 March 2017.
The half-year has again seen steady progress with a further positive return for the period, which is detailed in the Performance section below, and an increase in the rate of growth capital investments made, in accordance with the amended Investment Policy approved by shareholders in February 2016.
Seven investments have now been completed in accordance with the amended Investment Policy, in response to the new VCT legislation introduced by the Finance (No 2) Act 2015 (the "new VCT Rules"). The main features of this legislation are disclosed in the Summary of VCT Regulations in the Half-Year Report. Five of these seven investments were made in the period under review. Levels of new investment across the VCT industry have been lower than the comparable periods, so the Company has made a relatively strong start to investing under the new VCT rules.
The existing MBO focused portfolio constructed under the previous VCT rules has continued to perform steadily.
Performance
The Company's NAV total return per share was 2.0% for the six months to 31 March 2017 (2016 3.8%) while the total share price return was 1.9% (2016: 7.0%).
Cumulative NAV total return per share (being the closing net asset value plus total dividends paid to date) has risen to180.93 pence compared to 179.01 pence at the year-end. This represents a further increase of 1.1% over the period.
Investment portfolio
The portfolio has performed steadily during the period, increasing in value by 1.5% (2016: 6.5%) on a like-for-like basis. The aggregate portfolio saw a net increase of GBP0.07 million in realised gains and GBP0.73 million in unrealised gains over the six month period. The portfolio was valued at GBP51.90 million at the period-end (30 September 2016: GBP54.36 million).
During the six months under review, the Company invested a total of GBP 4.07 million (including GBP0.72 million via a company preparing to trade), (2016: GBP4.47 million, including GBP4.18 million via companies preparing to trade) into five (2016: three) investments. These were BookingTek, a company that has developed a real-time booking platform for hotel meeting rooms and restaurant reservations; Biosite, a fast growing provider of biometric access control and software-based workforce management solutions for the construction sector; Preservica, an existing portfolio company which has developed software to preserve past and current data for future retrieval; Tapas Revolution, a leading Spanish themed restaurant chain; and most recently, Buster & Punch, a contemporary interiors brand.
The Company received cash proceeds of GBP6.61 million during the six month period, mostly being partial loan stock repayments.
Details of all these transactions and the performance of the portfolio are contained in the Investment Review.
Revenue account
The results for the period are set out in the Unaudited Condensed Income Statement in the Half-Year Report and show a revenue return (after tax) of 1.42 pence per share (2016: 1.69 pence). The revenue return for the period of GBP1.02 million has fallen from last year's comparable figure of GBP1.19 million. This fall is mainly due to a large interest receipt arising from the exit of Original Additions, which was included in the 2016 figure. Ignoring the effect of this non-recurring income, the underlying loan stock interest fell only slightly, which highlights the resilience of the income from the current portfolio.
Dividends
The Board continues to be committed to providing an attractive dividend stream to shareholders and is pleased to declare an interim dividend of 3.00 pence per share for the year ending 30 September 2017, comprising 1.50 pence of income and 1.50 pence of capital. This dividend will be paid on 20 June 2017 to shareholders on the Register on 26 May 2017 and will bring cumulative dividends per share paid to date to 87.50 pence.
In respect of the past five financial years, and this half-year, the Company has now paid or declared dividends totalling 79.00 pence per share.
Shareholders are encouraged to ensure that Capita, the Company's Registrar, has up-to-date details for them and to check whether they have received all dividends payable to them. This is particularly important if they have recently moved house or changed their bank account. We are aware that a number of dividends remain unclaimed by shareholders and whilst we will continue to endeavour to contact you if this is the case, we cannot guarantee that we will be able to do so if the Registrars do not have an up-to-date address and/or email address for you.
Dividend Investment Scheme
The Company's Dividend Investment Scheme ("the Scheme") is a convenient, easy and cost effective way for shareholders to build up their shareholding in the Company. Instead of receiving cash dividends, shareholders can elect to receive new shares in the Company. By opting to receive a dividend in this manner, there are three benefits to shareholders:
- The dividend remains tax free;
- Shareholders are allotted new shares in the Company which will, subject to their particular circumstances, attract VCT tax reliefs applicable for the tax year in which the shares are allotted. The tax relief currently available to investors in new VCT shares is 30% for the 2017/18 tax year for investments up to GBP200,000 in any one tax year; and
- The Scheme also has one particular advantage. Under its terms, a member is able to re-invest at an advantageous price, being the average market price of the shares for the five business days prior to the dividend being paid. This price is likely to be at a discount of 10% to the underlying net asset value (provided that this is greater than 70% of the latest published net asset value per share).
Shareholders wishing to join the Scheme should submit a mandate form to Capita Asset Services, the Scheme Administrator, by no later than Monday, 5 June 2017, to ensure that they receive the above dividend as shares. Details of where to obtain an application form can be found in Shareholder Information in the Half-Year Report.
Industry developments
An announcement in the recent Budget has brought VCTs within the remit of the current Patient Capital Review. The review, led by HM Treasury, is considering the current availability of long-term finance for innovative and growing companies looking to expand their businesses and changes in government policy that may support the expansion of long-term capital for growing innovative firms. We are closely monitoring developments and are continuing to support industry bodies such as the Association of Investment Companies, BVCA and EISA who are contributing their views to the Government on the Company's behalf.
A summary of current VCT regulation is included below.
Liquidity
Annual fundraisings by the Company have provided it with a satisfactory level of liquidity sufficient to pursue its Objective and to meet the Company's running costs. The Board will consider additional fundraising in the future in line with its liquidity and new investment requirements, together with an assessment of the effects of possible future legislative changes.
Cash available for investment
The Board continues to monitor credit risk in respect of its cash balances and to prioritise the security and protection of the Company's capital. Cash and liquidity fund balances as at 31 March 2017 amounted to GBP17.70 million. This figure included GBP6.74 million held in money market funds with AAA credit ratings and
GBP10.96 million held in deposit accounts with a number of well-known financial institutions across a range of maturities. In addition, the investment portfolio contained GBP4.53 million in companies preparing to trade that also hold cash in money market funds.
Share buy-backs
During the six months ended 31 March 2017, the Company bought back 32,790 of its own shares, representing 0.1% (2016: 0.3%) of the shares in issue at the beginning of the period, at a total cost of GBP0.03 million (2016: GBP0.21 million) inclusive of expenses.
It is the Company's policy to cancel all shares bought back by the Company. The Board regularly reviews its buyback policy and currently seeks to maintain the discount to NAV at which the Company's shares trade at around 10% below the latest published NAV.
Shareholder communications
May I remind you that the Company has its own website which is available at www.incomeandgrowthvct.co.uk.
The Investment Adviser held its seventh annual Shareholder Event in January 2017 which, from the feedback submitted, was well received by shareholders. The event included presentations on the investment activity and performance of the Mobeus VCTs. I would like to thank those shareholders who attended for helping to make it such a success. The next Event will take place in January 2018. Shareholders will be sent further details and an invitation nearer to the time.
Outlook
The outlook for the UK economy over the next year and the medium-term remains somewhat unclear, although current forecasts still predict economic growth over the next few years for the UK economy. The UK Government will presumably commence formal negotiations for the UK to leave the EU, after the General Election in June. The outcome of these negotiations with the EU will in due course provide more clarity to the UK economic environment.
In the meantime, the Board and Investment Adviser consider that the portfolio is well positioned to withstand this uncertainty. We will continue our measured and cautious approach to investment appraisal and our active engagement with existing portfolio companies. The portfolio has a solid foundation of investments made under the previous MBO strategy, the majority of which are mature and profitable companies providing consistent income returns. Over the coming years, this portfolio mix is expected to change towards younger growth capital companies. These sorts of companies typically exhibit more volatility in returns and generate less income as they tend to re-invest profits during their growth phase. Your Board remains confident that, within the current regulatory environment, and with the Investment Adviser's expanded investment team, attractive opportunities will continue to be identified.
Once again, I would like to take this opportunity to thank all shareholders for their continued support.
Colin Hook
Chairman
16 May 2017
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 gain 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 different 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 Equity Partners LLP 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.
Summary of VCT Regulation
To assist shareholders, the following table contains a summary of the most important rules that determine VCT approval.
To maintain its status as a VCT, the Company must
meet a number of conditions, the most important
of which are that:
* The Company must hold at least 70%, by VCT tax value*,
of its total investments (shares, securities and
liquidity) in VCT qualifying holdings, within
approximately three years of a fundraising;
* Of these qualifying holdings, an overall minimum of
70% by VCT tax value* (30% for funds raised on or
before 6 April 2011) must be in ordinary shares which
carry no preferential rights (save as may be
permitted under VCT rules);
* No investment in a single company or group of
companies may represent more than 15% (by VCT tax
value*) of the Company's total investments at the
date of investment;
The Company must pay sufficient levels of income
dividend from its revenue available for distribution
so as not to retain more than 15% of its income
from shares and securities in a year;
* The Company's shares must be listed on a regulated
European stock market; and
* Non-qualifying investments can no longer be made,
except for certain exemptions in managing the
Company's short-term liquidity;
* To be a VCT qualifying holding, new investments must
be in companies:-
* which carry on a qualifying trade;
* which have no more than GBP15 million of gross assets
at the time of investment and GBP16 million
immediately following investment from VCTs;
* whose maximum age is generally seven years (ten years
for knowledge intensive businesses);
* that receive no more than an annual limit of GBP5
million and a lifetime limit of GBP12 million (GBP20
million for knowledge intensive companies), from VCTs
and similar sources of State Aid funding;
* that use the funds received from VCTs for growth and
development purposes.
*VCT tax value means as valued in accordance with
prevailing VCT legislation, which may not be the
same as the investment cost or the carrying value
of the investment shown in the Investment Portfolio
Summary in Half-Year Report.
--------------------------------------------------------------
Investment Review
New investment in the half-year
A total of GBP4.07 million was invested into five companies during the six months under review. This comprised new investments into BookingTek, Biosite, Tapas Revolution, Buster & Punch and a further investment into an existing portfolio company, Preservica.
Company Business Date of investment Amount of new
Investment
(GBPm)
------------------ ----------------------- -------------------- --------------
Direct booking October
BookingTek software for hotels 2016 0.78
------------------ ----------------------- -------------------- --------------
Based in London, BookingTek has developed software
that enables hotels to reduce their reliance on
third-party booking systems by means of a real-time
booking platform for meeting rooms and restaurant
reservations. The investment is to support further
growth. The company's latest accounts for the year
ended 31 July 2016 show turnover of GBP2.03 million
and loss before interest, tax and amortisation of
goodwill of GBP0.29 million.
---------------------------------------------------------------------------------
November
Biosite Workforce management 2016 0.86
------------------ ----------------------- -------------------- --------------
Based in the Midlands, Pattern Analytics (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 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.
---------------------------------------------------------------------------------
Seller of proprietary
digital archiving December
Preservica software 2016 0.93
------------------ ----------------------- -------------------- --------------
Preservica has developed the world's leading software
for the long-term preservation of digital records
ensuring that digital content remains accessible,
irrespective of future changes in technology. Previously
a subsidiary of Tessella, it was demerged prior
to the sale of Tessella in December 2015. The new
investment provided additional growth capital to
finance the development of the business. The company's
latest accounts for the year ended 31 March 2016
show turnover of GBP1.78 million and profit before
interest, tax and amortisation of goodwill of GBP0.16
million.
---------------------------------------------------------------------------------
Tapas Revolution Restaurant chain January 2017 0.78
------------------ ----------------------- -------------------- --------------
Based in London, Ibericos Etc. (which trades as
Tapas Revolution) is a leading Spanish restaurant
chain in the casual dining sector focusing on shopping
centre sites with high footfall. Having opened its
first restaurant in Shepherd's Bush: Westfield,
the business has since opened six restaurants. The
investment provided growth capital to a high-calibre
team with significant restaurant rollout experience
who have spent the past five years building and
refining their offer and are now well placed to
capitalise on a strong pipeline of new sites. The
company's latest accounts for the year ended 25
October 2015 show turnover of GBP2.37 million and
loss before interest, tax and amortisation of goodwill
of GBP0.16 million.
---------------------------------------------------------------------------------
Buster
& Punch Retailer March 2017 0.72
------------------ ----------------------- -------------------- --------------
Chatfield Services Limited (trading as Buster &
Punch) is a London-based interiors brand founded
in 2012 by architect and industrial designer Massimo
Buster Minale. Buster + Punch (www.busterandpunch.com)
started in a small garage in East London, where
it built the "world's first designer LED light bulb"
(Buster Bulb) and made its name with its industrial-inspired
lighting. Its products are now sold in over 50 countries,
both directly to end-consumers, designers and architects,
and through well-known retailers including John
Lewis, Harvey Nichols and Harrods. The investment
will support the business's international expansion
plans and the broadening of its product range. The
company's latest accounts for the year ended 31
March 2016 show turnover of GBP1.98 million and
profit before interest, tax and amortisation of
goodwill of GBP0.47 million.
---------------------------------------------------------------------------------
Realisations in the half-year
There have been no full realisations during the six month period under review although the Company received total cash proceeds of GBP6.61 million (2016: GBP10.65 million). This was in the form of loan stock repayments of GBP6.45 million (2016: GBP1.75 million) detailed below, deferred consideration of GBP0.06 million from Focus Pharma and MachineWorks, realised in a previous period, and other receipts of GBP0.10 million.
Loan stock repayments
Partial loan stock repayments received from seven companies totalled GBP6.45 million for the six months as summarised below:
Company Business Month(s) Amount (GBP000's)
-------------------- ------------------- ---------- -----------------------
Backhouse Company preparing
Management to trade January 1,203
-------------------- ------------------- ---------- -----------------------
Company preparing December,
Barham Consulting to trade March 1,203
-------------------- ------------------- ---------- -----------------------
Company preparing
Creasy Marketing to trade March 1,203
-------------------- ------------------- ---------- -----------------------
Company preparing January,
McGrigor Management to trade February 1,203
-------------------- ------------------- ---------- -----------------------
Hollydale Company preparing
Management to trade March 932
-------------------- ------------------- ---------- -----------------------
Chatfield Company preparing
Services to trade March 687
-------------------- ------------------- ---------- -----------------------
BG Training Technical training January 18
-------------------- ------------------- ---------- -----------------------
Total 6,449
--------------------------------------------------- -----------------------
Investment Portfolio Summary
as at 31 March 2017
Total cost at 31 March 2017 (unaudited) Valuation Additional Valuation
at 30 September investments at 31
2016 in the period March
2017
(unaudited)
GBP (audited) GBP GBP
GBP
---------------------------------------------------------------------------------------------------------------------------- ------------------------ ------------------- ---------------
Tovey Management Limited
(trading as Access IS)
Provider of data capture
and scanning hardware 3,313,932 3,532,917 - 3,969,609 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Virgin Wines Holding Company Limited Online wine retailer 2,745,503 3,706,526 - 3,766,225 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Entanet Holdings Limited Wholesale communications provider 3,175,171 3,351,685 - 3,408,538 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Media Business Insight Holdings Limited A publishing and events business focused on the creative production industries 3,666,556 2,980,641 - 3,349,588 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- ASL Technology Holdings Limited Printer and photocopier services 2,722,106 2,870,789 - 2,938,549 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- I-Dox plc Developer and supplier of knowledge management products 453,881 2,833,470 - 2,916,807 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Manufacturing Services Investment Limited Company seeking to carry on a business in the manufacturing sector 2,708,100 2,708,100 - 2,708,100 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Gro-Group Holdings Limited Baby sleep products 2,398,928 1,651,824 - 2,080,321 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Tharstern Group Limited Software based management Information systems for the printing industry 1,454,278 1,777,923 - 1,734,745 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- CGI Creative Graphics International Limited Vinyl graphics to global automotive, recreation vehicle and aerospace markets 1,943,948 1,768,414 - 1,727,786 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- EOTH Limited (trading as Equip Outdoor Technologies) Distributor of branded outdoor equipment and clothing including the Rab and Lowe Alpine brands 1,383,313 1,495,307 - 1,695,321 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Veritek Global Holdings Limited Maintenance of imaging equipment 2,289,859 2,297,607 - 1,693,780 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Vian Marketing Limited (trading as Tushingham Sails) Design, manufacture and sale of stand-up paddleboards and windsurfing sails 1,207,437 1,593,103 - 1,663,277 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Fullfield Limited (trading as Motorclean) Vehicle cleaning and valet services 1,517,734 2,020,433 - 1,559,379 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- RDL Corporation Limited Recruitment consultants within the pharmaceutical, business intelligence and IT sectors 1,441,667 1,409,809 - 1,486,503 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Redline Worldwide Limited Provider of security services to the aviation industry 1,129,121 1,129,121 - 1,385,757 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Turner Topco Limited (trading as ATG Media) Publisher and online auction platform operator 1,529,075 1,114,321 - 1,332,895 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Bourn Bioscience Limited Management of In-vitro fertilisation clinics 1,610,379 1,206,547 - 1,073,275 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Master Removers Group Limited (formerly Leap New Co Limited (trading as Anthony Ward Thomas, Bishopsgate and Aussie Man & Van)) A specialist logistics, storage and removals business 682,183 878,989 - 971,039 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Preservica Limited1 Seller of proprietary digital archiving software 935,000 - 935,000 935,000 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- TPSFF Holdings Limited (formerly The Plastic Surgeon Holdings) Supplier of snagging and finishing services to the property sector 406,169 836,215 - 912,459 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Pattern Analytics Limited (trading as Biosite) Workforce management and security services for the construction industry 857,014 - 857,014 857,014 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- ---------------
BookingTek Limited Direct booking software for hotels 779,095 - 779,095 779,095 ---------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Ibericos Etc. Limited (trading as Tapas Revolution) Spanish restaurant chain 776,386 - 776,386 776,386 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Chatfield Services Limited (trading as Buster and Punch)2 Industrial inspired lighting and interiors retailer 725,226 1,504,000 - 725,226 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Jablite Holdings Limited Manufacturer of expanded polystyrene products 498,790 1,271,052 - 712,321 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Aquasium Technology Limited Manufacturing and marketing of bespoke electron beam welding and vacuum furnace equipment 250,000 681,377 - 693,301 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- MPB Group Limited Online marketplace for used photographic and video equipment 650,075 650,075 650,075 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Hollydale Management Limited Company seeking to carry on a business in the food sector 994,560 1,554,000 - 621,600 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Omega Diagnostics Group plc In-vitro diagnostics for food intolerance, autoimmune diseases and infectious diseases 280,026 367,511 - 536,682 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Blaze Signs Holdings Limited Manufacturer and installer of signs 418,281 608,241 - 491,102 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Vectair Holdings Limited Designer and distributor of washroom products 53,400 302,340 - 357,543 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Backhouse Management Limited Company seeking to carry on a business in the motor sector 782,080 1,504,000 - 300,800 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Barham Consulting Limited Company seeking to carry on a business in the catering sector 782,080 1,504,000 - 300,800 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Creasy Marketing Services Limited Company seeking to carry on a business in the textile sector 782,080 1,504,000 - 300,800 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- McGrigor Management Limited Company seeking to carry on a business in the pharmaceutical sector 782,080 1,504,000 - 300,800 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- LightWorks Software Limited Provider of software for CAD and CAM vendors 20,471 61,212 - 73,793 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- BG Training Limited Technical training business 53,125 70,833 - 53,125 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Racoon International Holdings Limited Supplier of hair extensions, hair care products and training 655,851 104,999 - 52,500 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Corero Network Security plc Provider of e-business technologies 600,000 9,577 - 4,670 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Oxonica Limited International nanomaterials group 2,524,527 - - - --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- NexxtDrive Limited Developer and exploiter of mechanical transmission technologies 487,014 - - - --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- CB Imports Group Limited (trading as Country Baskets) Importer and distributor of artificial flowers, floral sundries and home décor products 175,000 - - - --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Biomer Technology Limited Developer of biomaterials for medical devices 137,170 - - - --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Newquay Helicopters (2013) Limited (in creditors' voluntary liquidation) Helicopter service operator 15,234 - - .
--------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Watchgate Limited Holding company 1,000 - - - --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- --------------- Total 52,794,905 54,364,958 3,347,495 51,896,586 --------------------------------------------------------------- ---------------------------------------------------------- ------------------------ ------------------- ---------------
1 - A further GBP935,000 was invested into Preservica Limited, adding to the Company's existing shareholding that was received as part of the disposal of Tessella Holdings Limited in December 2015.
2 - GBP1,504,000 invested in Chatfield Services Limited, a company preparing to trade, was used for the investment into Buster & Punch. This resulted in a net repayment to the Company of GBP778,774
Statement of the Directors' Responsibilities
Responsibility statement
In accordance with Disclosure and Transparency Rule (DTR) 4.2.10, Colin Hook (Chairman), Jonathan Cartwright (Chairman of the Audit and Nomination & Remuneration Committees) and Helen Sinclair (Chairman of the Investment 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 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 materially changed from those identified in the Annual Report and Accounts for the year ended 30 September 2016 ("the Annual Report").
The principal risks faced by the Company are:
-- Investment and strategic -- Loss of approval as a Venture Capital Trust; -- Regulatory; -- Counterparty; -- Economic; -- Financial and operating; -- Market; -- Asset liquidity; and -- Market liquidity;
A detailed explanation of the principal risks facing the Company can be found in the Annual Report on page 25 and in Note 16 on Financial Instruments on pages 59- 66. Copies can be viewed or downloaded from the Company's website: www.incomeandgrowthvct.co.uk
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 continues to maintain a significant cash position. The majority of companies in the portfolio continue to trade profitably and the portfolio taken as a whole remains resilient and well-diversified. The major cash outflows of the Company (namely investments, share buybacks 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 16 and 17 on page 59 to 66 of the Annual Report. Accordingly, the Directors continue to adopt the going concern basis of accounting in preparing the half-year report and 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:
Colin Hook
Chairman
16 May 2017
Unaudited Condensed Income Statement
for the six months ended 31 March 2017
Six months Six months ended Year ended 30
ended 31 March 31 March 2016 September 2016
2017
(unaudited) (unaudited) (audited)
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ------ ------------ ---------- ------------ ----------- ------------ ------------ ----------- ------------ ------------
Unrealised
gains on
investments 9 - 725,815 725,815 - 726,630 726,630 - 549,889 549,889
Realised
gains on
investments 9 - 69,100 69,100 - 2,471,203 2,471,203 - 2,506,146 2,506,146
Income 4 1,640,297 - 1,640,297 1,894,754 - 1,894,754 3,201,629 - 3,201,629
Investment
Adviser's
fees 5 (197,406) (592,219) (789,625) (213,564) (640,692) (854,256) (419,260) (1,257,781) (1,677,041)
Investment
Advisers'
performance
fees 5 - - - - (1,134,982) (1,134,982) - (1,140,221) (1,140,221)
Other expenses (206,829) - (206,829) (197,949) - (197,949) (392,228) - (392,228)
--------------- ------ ------------ ---------- ------------ ----------- ------------ ------------ ----------- ------------ ------------
Profit
on ordinary
activities
before
taxation 1,236,062 202,696 1,438,758 1,483,241 1,422,159 2,905,400 2,390,141 658,033 3,048,174
Taxation
on profit
on ordinary
activities 6 (211,109) 211,109 - (288,818) 288,818 - (479,600) 479,600 -
--------------- ------ ------------ ---------- ------------ ----------- ------------ ------------ ----------- ------------ ------------
Profit
for the
period
and total
comprehensive
income 1,024,953 413,805 1,438,758 1,194,423 1,710,977 2,905,400 1,910,541 1,137,633 3,048,174
--------------- ------ ------------ ---------- ------------ ----------- ------------ ------------ ----------- ------------ ------------
Basic and
diluted
earnings
per share 7 1.42p 0.57p 1.99p 1.69p 2.41p 4.10p 2.68p 1.60p 4.28p
--------------- ------ ------------ ---------- ------------ ----------- ------------ ------------ ----------- ------------ ------------
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 and performance fee charged to capital.
The total column is the Statement of Total Comprehensive Income of the Company prepared in accordance with UK GAAP, including Financial Reporting Standard 102. In order to better reflect the activities of a VCT and in accordance with the 2014 Statement of Recommended Practice ("SORP") updated in January 2017 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.
Unaudited Condensed Balance Sheet
as at 31 March 2017
31 March 31 March 30 September
2017 2016 2016
(unaudited) (unaudited) (audited)
--------------------------
Notes GBP GBP GBP
-------------------------- ----- ------------ ------------ ------------
Fixed assets
Investments at fair
value 9 51,896,586 53,954,429 54,364,958
Current assets
Debtors and prepayments 455,875 532,667 304,935
Current asset investments 10 9,891,458 18,395,656 15,338,067
Cash at bank 10 7,805,131 2,805,684 2,189,856
-------------------------- ----- ------------ ------------ ------------
18,152,464 21,734,007 17,832,858
Creditors: amounts falling
due within one year (167,622) (1,377,009) (1,357,178)
--------------------------------- ------------ ------------ ------------
Net current assets 17,984,842 20,356,998 16,475,680
--------------------------------- ------------ ------------ ------------
Net assets 69,881,428 74,311,427 70,840,638
--------------------------------- ------------ ------------ ------------
Capital and reserves
Called up share capital 724,688 711,648 719,140
Capital redemption
reserve 12,313 11,564 11,985
Share premium reserve 18,809,469 17,628,344 18,308,887
Revaluation reserve 5,645,322 4,921,137 4,744,396
Special distributable
reserve 24,404,104 25,448,930 24,980,045
Realised capital reserve 18,129,188 23,393,471 20,225,980
Revenue reserve 2,156,344 2,196,333 1,850,205
-------------------------- ----- ------------ ------------ ------------
Equity shareholders' funds 69,881,428 74,311,427 70,840,638
--------------------------------- ------------ ------------ ------------
Basic and diluted
net asset value:
------------
Basic and diluted
net asset value per
share 11 96.43p 104.42p 98.51p
-------------------------- ----- ------------ ------------ ------------
Unaudited Condensed Statement of Changes in Equity
for the six months ended 31 March 2017
Non-distributable reserves Distributable
reserves
Called Capital Share Revaluation Special Realised Revenue Total
up
share redemption premium reserve distributable capital reserve
capital reserve reserve reserve reserve
(Note
a)
GBP GBP GBP GBP GBP GBP GBP GBP
----------------- ------- ---------- ---------- ----------- ------------- ------------- ----------- -------------
At 1 October
2016 719,140 11,985 18,308,887 4,744,396 24,980,045 20,225,980 1,850,205 70,840,638
Comprehensive
income
for the period
Profit/(loss)
for the period - - - 725,815 - (312,010) 1,024,953 1,438,758
----------------- ------- ---------- ---------- ----------- ------------- ------------- ----------- -------------
Total
comprehensive
income for
the period - - - 725,815 - (312,010) 1,024,953 1,438,758
----------------- ------- ---------- ---------- ----------- ------------- ------------- ----------- -------------
Contributions
by and
distributions
to owners
Dividends
re-invested
into new shares 5,876 - 500,582 - - - - 506,458
Shares bought
back (328) 328 - - (29,170) - - (29,170)
Dividends
paid - - - - - (2,156,442) (718,814) (2,875,256)
----------------- ------- ---------- ---------- ----------- ------------- ------------- ----------- -------------
Total
contributions
by and
distributions
to owners 5,548 328 500,582 - (29,170) (2,156,442) (718,814) (2,397,968)
----------------- ------- ---------- ---------- ----------- ------------- ------------- ----------- -------------
Other movements
Realised
losses
transferred
to special
reserve (note
a) - - - - (546,771) 546,771 - -
Realisation
of previously
unrealised
depreciation - - - 175,111 - (175,111) - -
----------------- ------- ---------- ---------- ----------- ------------- ------------- ----------- -------------
Total other
movements - - - 175,111 (546,771) 371,660 - -
----------------- ------- ---------- ---------- ----------- ------------- ------------- ----------- -------------
At 31 March
2017 724,688 12,313 18,809,469 5,645,322 24,404,104 18,129,188 2,156,344 69,881,428
----------------- ------- ---------- ---------- ----------- ------------- ------------- ----------- -------------
Notes
a) The Special distributable reserve provides the Company with a reserve to fund market purchases of the Company's own shares, to absorb any existing and future losses and for any other corporate purpose.
Unaudited Condensed Statement of Changes in Equity
for the six months ended 31 March 2016
Non-distributable reserves Distributable
reserves
Called Capital Share Revaluation Special Realised Revenue
up
share redemption premium reserve distributable capital reserve
capital reserve reserve reserve reserve Total
----------------- ------- ---------- ---------- ------------- ------------- ------------- ----------- -------------
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 period
Profit for
the period - - - 726,630 - 984,347 1,194,423 2,905,400
----------------- ------- ---------- ---------- ------------- ------------- ------------- ----------- -------------
Total
comprehensive
income for
the period - - - 726,630 - 984,347 1,194,423 2,905,400
----------------- ------- ---------- ---------- ------------- ------------- ------------- ----------- -------------
Contributions
by and
distributions
to owners
Dividends
re-invested
into new
shares 6,994 - 650,442 - - - - 657,436
Shares bought
back (2,276) 2,276 - - (212,179) - - (212,179)
Dividends
paid - - - - - (3,534,605) (706,921) (4,241,526)
----------------- ------- ---------- ---------- ------------- ------------- ------------- ----------- -------------
Total
contributions
by and
distributions
to owners 4,718 2,276 650,442 - (212,179) (3,534,605) (706,921) (3,796,269)
----------------- ------- ---------- ---------- ------------- ------------- ------------- ----------- -------------
Other movements
Realised
losses
transferred
to special
reserve - - - - (1,486,856) 1,486,856 - -
Realisation
of previously
unrealised
appreciation - - - (4,803,126) - 4,803,126 - -
----------------- ------- ---------- ---------- ------------- ------------- ------------- ----------- -------------
Total other
movements - - - (4,803,126) (1,486,856) 6,289,982 - -
----------------- ------- ---------- ---------- ------------- ------------- ------------- ----------- -------------
At 31 March
2016 711,648 11,564 17,628,344 4,921,137 25,448,930 23,393,471 2,196,333 74,311,427
----------------- ------- ---------- ---------- ------------- ------------- ------------- ----------- -------------
Unaudited Condensed Statement of Cash Flows
for the six months ended 31 March 2017
Six months Six months Year ended
ended ended
31 March 31 March 30 September
2017 (unaudited) 2016 (unaudited) 2016
(audited)
----------------------------
Notes GBP GBP GBP
---------------------------- ----- ------------------ ------------------ -----------------------
Cash flows from operating
activities
Profit for the financial
period 1,438,758 2,905,400 3,048,174
Adjustments for:
Unrealised gains on
investments (725,815) (726,630) (549,889)
Realised gains on
investments (69,100) (2,471,203) (2,506,146)
(Increase)/decrease
in debtors (150,940) (150,101) 77,630
(Decrease)/increase
in creditors (1,152,217) 220,474 190,471
---------------------------- ----- ------------------ ------------------ -----------------------
Net cash (outflow)/inflow
from operating activities (659,314) (222,060) 260,240
Cash flows from investing
activities
Purchase of investments 9 (3,347,495) (285,932) (936,007)
Disposal of investments 9 6,610,782 10,645,086 10,742,834
Decrease in bank deposits
with a maturity over
three months 2,028,243 1,960,755 1,960,755
---------------------------- ----- ------------------ ------------------ -----------------------
Net cash inflow from
investing activities 5,291,530 12,319,909 11,767,582
Cash flows from financing
activities
Equity dividends paid 8 (2,368,798) (3,584,090) (7,160,312)
Purchase of own shares (66,509) (185,476) (212,644)
---------------------------- ----- ------------------ ------------------ -----------------------
Net cash outflow from
financing activities (2,435,307) (3,769,566) (7,372,956)
----------------------------------- ------------------ ------------------ -----------------------
Net increase in cash
and cash equivalents 2,196,909 8,328,283 4,654,866
Cash and cash equivalents
at start of period 12,347,911 7,693,045 7,693,045
---------------------------- ----- ------------------ ------------------ -----------------------
Cash and cash equivalents
at end of period 14,544,820 16,021,328 12,347,911
----------------------------------- ------------------ ------------------ -----------------------
Cash and cash equivalents
comprise:
Cash at bank and in
hand 7,805,131 2,805,684 2,189,856
Cash equivalents 6,739,689 13,215,644 10,158,055
---------------------------- ----- ------------------ ------------------ -----------------------
The notes below form part of these Half-Year Financial Statements.
Notes to the Unaudited Condensed Financial Statements
for the six months ended 31 March 2017
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 of the Financial Statements
These Financial Statements prepared in accordance with accounting policies consistent with Financial Reporting Standard 102 ("FRS102"), Financial Reporting Standard 104 ("FRS104") - 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' ('the SORP') (updated in January 2017) issued by the Association of Investment Companies. The Financial Statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as
specified in note 9.
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.
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. 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 Six months Year ended
ended 31 ended 31 30 September
March 2017 March 2016 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
-------------------------------- -------------------------- -------------------------- ----------------------------
Dividends 180,519 39,150 114,915
Money market
funds 10,951 17,595 38,412
Loan stock
interest 1,412,723 1,779,137 2,946,909
Bank deposit
interest 36,036 58,872 101,393
Other income 68 - -
-------------------------------- -------------------------- -------------------------- ----------------------------
Total income 1,640,297 1,894,754 3,201,629
-------------------------------- -------------------------- -------------------------- ----------------------------
5. Investment Adviser's fees and performance fees
Six months Six months Year ended
ended 31 ended 31 30 September
March 2017 March 2016 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
-------------------------------- -------------------------- -------------------------- ----------------------------
Allocation to
revenue
return:
Investment
Adviser's
fees 197,406 213,564 419,260
Allocation to
capital
return:
Investment
Adviser's
fees 592,219 640,692 1,257,781
Investment
Advisers'
performance fees - 1,134,982 1,140,221
-------------------------------- -------------------------- -------------------------- ----------------------------
Total 789,625 1,989,238 2,817,262
-------------------------------- -------------------------- -------------------------- ----------------------------
Investment
Adviser's
fees 789,625 854,256 1,677,041
Investment
Advisers'
performance fees - 1,134,982 1,140,221
-------------------------------- -------------------------- -------------------------- ----------------------------
Total 789,625 1,989,238 2,817,262
-------------------------------- -------------------------- -------------------------- ----------------------------
The Directors have charged 75% of the fees payable under the Investment Adviser's agreement, and 100% of the amounts payable under the Incentive Agreements, to the capital reserve. The Directors believe it is appropriate to charge the incentive
fees wholly against the capital return, as any fees payable depend on capital performance, as explained below.
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. For the period ended 31 March 2017, no amount has been accrued under the previous
agreement. Mobeus waived their right to their portion of the fee under the previous agreement. This agreement is due to
expire on 10 March 2019.
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 either:
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 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, theresultant 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 new incentive agreement, any fee payments to Mobeus are subject to an annual cap of an amount equal to 2%
of the net assets of I&G VCT as at the immediately preceding year end. This cap will include any fee payable to Foresight
under the old agreement, although any such payment to Foresight 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).
For the year ending 30 September 2017, the Target Return will be 142.44p per share (being a 6% uplift on the Target Return
at the previous year end of 134.38 pence per share). As at 31 March 2017, the Cumulative Total NAV return is 140.43p per
share, so the Target Return for the 2017 financial year has currently not been met and so no fee has been accrued.
6. Taxation
There is no tax charge for the period as the Company has tax losses brought forward from previous periods, which can be
offset against taxable income.
7. Basic and diluted earnings and return per share
Dividend Type For the Pence Date paid Six months Six months Year ended
year ended ended
ended per 31 March 31 March 30 September
2017 2016 2016
30 September share (unaudited) (unaudited) (audited)
---------
GBP GBP GBP
--------- --------- ---------------------- -------- --------- ------------ ------------ -----------------------
15
February
Final Income 2015 1.00p 2016 - 706,921 706,921
15
February
Final Capital 2015 5.00p 2016 - 3,534,605 3,534,606
7 July
Interim Income 2016 1.00p 2016 - - 1,067,478
7 July
Interim Capital 2016 5.00p 2016 - - 3,202,433
15
February
Final Income 2016 1.00p 2017 718,814 - -
15
February
Final Capital 2016 3.00p 2017 2,156,442 - -
Previous dividends not
claimed within the statutory
period (5,232)
----------------------------------------------------------------- ------------ ------------ -----------------------
2,875,256 4,241,526 8,506,206
----------------------------------------------------------------- ------------ ------------ -----------------------
Six months Six months Year ended
ended 31 ended 31 30 September
March 2017 March 2016 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
-------------------------------- -------------------------- -------------------------- ----------------------------
i) Total earnings after
taxation: 1,438,758 2,905,400 3,048,174
Basic and diluted earnings
per share 1.99p 4.10p 4.28p
-------------------------------- -------------------------- -------------------------- ----------------------------
ii) Net revenue from ordinary
activities after taxation 1,024,953 1,194,423 1,910,541
Basic and diluted revenue
return per share 1.42p 1.69p 2.68p
-------------------------------- -------------------------- -------------------------- ----------------------------
Net unrealised capital
gains on investments 725,815 726,630 549,889
Net realised capital gains
on investments 69,100 2,471,203 2,506,146
Capital Investment Adviser's
fees less taxation (381,110) (351,874) (778,181)
Investment Advisers' performance
fees - (1,134,982) (1,140,221)
-------------------------------- -------------------------- -------------------------- ----------------------------
iii) Total capital return 413,805 1,710,977 1,137,633
Basic and diluted capital
return per share 0.57p 2.41p 1.60p
-------------------------------- -------------------------- -------------------------- ----------------------------
iv) Weighted average number
of shares in issue in
the period 72,037,688 70,863,747 71,198,046
-------------------------------- -------------------------- -------------------------- ----------------------------
8. Dividends paid
* - GBP2,875,256 (31 March 2016: GBP4,241,526; 30 September 2016: GBP8,506,206) disclosed above differs to that shown in the Statement
of Cash Flows of GBP2,368,798 (31 March 2016: GBP3,584,090; 30 September 2016: GBP7,160,312) due to GBP506,458 (31 March 2016:
GBP657,436; 30 September 2016: GBP1,345,894) of new shares issued as part of the Company's Dividend Investment Scheme.
9. Summary of movement on investments during the period
The most critical estimates, assumptions and judgements
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 Valuation ("IPEV") 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 in 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 IPEV 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 consideration of:
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).
or:-
b) where a company's underperformance against plan
indicates a diminution in the value of the
investment, provision against cost is made, as
appropriate.
iii) Premiums, to the extent that they are considered
capital in nature, and 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.
iv) 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.
Capital gains and losses on investments, whether
realised or unrealised, are dealt with in the profit
and loss and revaluation reserves and movements
in the period are shown in the Income Statement.
All investments are initially recognised and subsequently
measured at fair value. Changes in fair value are
recognised in the Income Statement.
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 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.
The methods of fair value measurement are classified
in to hierarchy based on the reliability of the
information used to determine the valuation.
* Level 1 - Fair value is measured based on quoted
prices in an active market.
* Level 2 - Fair value is measured based on directly
observable current market prices or indirectly being
derived from market prices.
Level 3 - Fair value is measured using valuation
techniques using inputs that are not based on observable
market data.
--------------------------------------------------------------
Traded on Unquoted Unquoted Unquoted Total
AIM ordinary Preference Loan stock
shares shares
Level 1 Level 3 Level 3 Level 3
GBP GBP GBP GBP GBP
----------------------------- ----------- ------------- ----------- ------------ ------------
Valuation at 1 October
2016 3,210,558 12,137,532 22,646 38,994,222 54,364,958
Purchases at cost - 2,943,504 - 403,991 3,347,495
Sales - proceeds - (160,584) - (6,450,198) (6,610,782)
- realised (losses)/gains - (2,228,980) - 2,298,080 69,100
Reclassification at
valuation - (87) 87 - -
Unrealised gains/(losses)
on investments in
the period 247,601 (581,951) 391,878 668,287 725,815
----------------------------- ----------- ------------- ----------- ------------ ------------
Valuation at 31 March
2017 3,458,159 12,109,434 414,611 35,914,382 51,896,586
----------------------------- ----------- ------------- ----------- ------------ ------------
Book cost at 31 March
2017 1,333,907 20,789,093 27,428 30,644,477 52,794,905
Unrealised gains/(losses)
at 31 March 2017 2,124,252 (2,186,018) 387,183 5,269,905 5,595,322
Permanent impairment
of valuation of investments - (6,493,641) - - (6,493,641)
----------------------------- ----------- ------------- ----------- ------------ ------------
Valuation at 31 March
2017 3,458,159 12,109,434 414,611 35,914,382 51,896,586
----------------------------- ----------- ------------- ----------- ------------ ------------
Gains/(losses) on
investments
Realised (losses)/gains
based on historical
cost - (2,404,091) - 2,298,080 (106,011)
Less amounts recognised
as unrealised losses
in previous years - 175,111 - - 175,111
----------------------------- ----------- ------------- ----------- ------------ ------------
Realised (losses)/gains
based on carrying
value at 30 September
2016 - (2,228,980) - 2,298,080 69,100
Net movement in unrealised
gains/ (losses) in
the period 247,601 (581,951) 391,878 668,287 725,815
----------------------------- ----------- ------------- ----------- ------------ ------------
Gains/(losses) on
investments for the
period ended 31 March
2017 247,601 (2,810,931) 391,878 2,966,367 794,915
----------------------------- ----------- ------------- ----------- ------------ ------------
Unrealised gains/(losses) at 31 March 2017 above of GBP5,595,322 differ to that shown in the Revaluation reserve on the Statement of Changes in Equity of GBP5,645,322. The difference of GBP50,000 is the estimated fair value of contingent consideration held at the Balance Sheet date, and is included within Debtors.
There has been no significant change in the risk analysis as disclosed in Note 16 of the Financial Statements in the Company's Annual Report. The increase in unrealised valuations of the loan stock investments above reflect the changes in the entitlement to loan premiums, and/or in the underlying enterprise value of the investee company. The increase does not arise from assessments of credit or market risk upon these instruments.
Level 3 unquoted equity and loan investments are valued in accordance with IPEV guidelines as follows:
as at as at 31 as at 30
31 March March 2016 September
2017 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
----------------------------------- -------------------------- -------------------------- -------------------------
Valuation
methodology
Estimated
realisation
proceeds 53,125 103,917 70,833
Recent investment
price 9,308,196 17,537,589 13,666,295
Earnings multiple 39,077,106 33,873,159 37,417,272
----------------------------------- -------------------------- -------------------------- -------------------------
Total 48,438,427 51,514,665 51,154,400
----------------------------------- -------------------------- -------------------------- -------------------------
10. Current asset investments
as at 31 as at as at 30
March 2017 31 March September
2016 2016
(unaudited) (unaudited) (audited)
GBP GBP GBP
----------------------------------- -------------------------- -------------------------- -------------------------
OEIC Money market
funds 6,739,689 10,704,092 10,158,055
Bank deposits that
mature
within three months
but are not
immediately
repayable - 2,511,552 -
----------------------------------- -------------------------- -------------------------- -------------------------
Cash equivalents per
Statement of Cash
Flows 6,739,689 13,215,644 10,158,055
Bank deposits that
mature
after three months 3,151,769 5,180,012 5,180,012
----------------------------------- -------------------------- -------------------------- -------------------------
Current asset
investments 9,891,458 18,395,656 15,338,067
----------------------------------- -------------------------- -------------------------- -------------------------
Cash at bank 7,805,131 2,805,684 2,189,856
----------------------------------- -------------------------- -------------------------- -------------------------
11. Net asset value per share
as at 31 as at as at 30
March 2017 31 March September
2016 2016
(unaudited) (unaudited) (audited)
Net assets GBP69,881,428 GBP74,311,427 GBP70,840,638
Number of
shares in
issue 72,468,771 71,164,788 71,914,023
Net asset
value per
share -
basic and
diluted 96.43p 104.42p 98.51p
---------------------------- ---------------------------- ---------------------------- ----------------------------
12. Post balance sheet events
On 3 May 2017, TPSFF Holding Limited (formerly The Plastic Surgeon Holdings Limited) repaid loan stock of GBP36,852.
13. Statutory Information
The financial information for the six months ended 31 March 2017 and the six months ended 31 March 2016 has not been audited.
The financial information contained in this Half-Year report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Financial Statements for the year ended 30 September 2016 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 either section 498(2) or 498(3) of the Companies Act 2006.
14. Half-Year Report
Copies of this statement are being sent to all shareholders. Further copies are available free of charge from the Company's registered office, 30 Haymarket, London, SW1Y 4EX, or can be downloaded via the Company's website at www.incomeandgrowthvct.co.uk.
Contact details for further enquiries:
Rob Brittain or Sarah Penfold at Mobeus Equity Partners LLP (the Company Secretary) on 020 7024 7600 or by e-mail on vcts@mobeusequity.co.uk.
Mobeus Equity Partners LLP (the Investment Adviser), on 020 7024 7600 or by e-mail on 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
IR FQLFFDEFLBBE
(END) Dow Jones Newswires
May 16, 2017 08:37 ET (12:37 GMT)
1 Year Income & Growth Vct Chart |
1 Month Income & Growth Vct Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
