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Income & Growth Vct (the) Plc LSE:IGV London Ordinary Share GB00B29BN198 ORD 1P
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Income & Growth VCT (The) PLC Half-year Report

16/06/2021 4:25pm

UK Regulatory (RNS & others)


TIDMIGV

RNS Number : 1495C

Income & Growth VCT (The) PLC

16 June 2021

 
                                                                  THE INCOME & GROWTH VCT PLC 
                                                                   LEI: 213800FPC15FNM74YD92 
 
                                                UNAUDITED HALF-YEAR RESULTS FOR THE SIX MONTHS TO 31 MARCH 2021 
 
 The Income & Growth VCT plc ("the Company") today announces its Half-Year 
  results for the six months to 31 March 2021. 
 
  You may, in due course, view the Half-Year Report, comprising the 
  Unaudited Condensed Financial Statements of the Company by visiting 
  www.incomeandgrowthvct.co.uk. 
 
 
 Financial Highlights 
                                                                                                                                          As at 31 March 2021: 
                                                                                                                                 Net assets: GBP111.95 million 
                                                                                                                Net asset value ("NAV") per share: 94.71 pence 
 Results for the six months to 31 March 2021: 
 *    Net asset value ("NAV") total return(1) per share was      35.2%. 
 
 
 *    Share price total return(1) per share was 31.9%. 
 
 
   *    The Board has declared an interim dividend in respect 
        of the year ending 30 September 2021 of 5.00 pence 
        per share to be paid to Shareholders on 23 July 2021. 
 
   *    The Company made four new investments totalling 
        GBP3.07 million and four follow-on investments 
        totalling GBP1.35 million. 
 
   *    GBP26.07 million of net unrealised gains were 
        achieved in the period from strong portfolio 
        performance. 
 
       *    The Company realised investments totalling GBP10.22 
            million of cash proceeds and generated net realised 
            gains in the period of GBP3.59 million. 
 
 
 
      (1) Definitions of key terms and alternative performance measures 
      ("APMs") / Key performance indicators ("KPIs") shown above and throughout 
      are shown in the Glossary of terms in the Half-Year Report, available 
      on the Company's website. 
 
 
 PERFORMANCE SUMMARY 
 
 The table below shows the recent past performance of the Company's 
  existing class of shares for each of the last five years, and the 
  current year to date: 
 Reporting        Net     NAV      Share  Cumulative         Cumulative total   Dividends 
  date          assets     per   Price(1)   dividends         return per share   per share 
                         Share                   paid       to shareholders(2)        paid 
                                            per share                                  and 
                                                                                  proposed 
                                                                                in respect 
                                                                                        of 
                                                                                 each year 
                                                           (NAV   (Share price 
                                                         basis)         basis) 
  As at         (GBPm)     (p)        (p)         (p)       (p)            (p)         (p) 
  31 March 
   2021         111.95   94.71      78.50      131.50    226.21         210.00     5.00(4) 
  30 
   September 
   2020          83.13   70.06      59.50      131.50    201.56         191.00       14.00 
  30 
   September 
   2019          81.73   79.12   75.50(3)      113.00    192.12         188.50        6.00 
  30 
   September 
   2018          82.58   78.32      69.50      108.00    186.32         177.50        6.00 
  30 
   September 
   2017          64.35   81.24      73.00      102.50    183.74         175.50       21.00 
  30 
   September 
   2016          70.84   98.51      88.80       80.50    179.01         169.30       10.00 
 
 (1) Source: Panmure Gordon & Co (mid-market 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 2019 has been adjusted to add 
  back the dividend of 4.50 pence per share paid on 18 October 2019, 
  as the listed share price was quoted ex this dividend at this year-end. 
  (4) An interim dividend of 5.00 pence per share, referred to in the 
  Financial Highlights above, is payable to Shareholders on 23 July 
  2021. 
 
   Detailed performance data, including a table of dividends paid to 
   date for all share classes and fundraising rounds, is shown in the 
   Performance Data section towards the end of the Half-Year Report. 
   The tables, which give information by allotment date on NAVs and dividends 
   paid per share, are also available on the Company's website at www.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 present the Company's Half-Year Report for the six months to 31 
  March 2021. 
 
  Overview 
  The first six months of the Company's financial year have been very 
  satisfactory for Shareholders, with the Company achieving a NAV total 
  return per share of 35.2% for the period. At the time of my last Statement 
  in the Company's Annual Report for the year ended 30 September 2020, 
  I was able to report on the resilience of the portfolio and the Company's 
  strong recovery beyond the initial shock of COVID-19 on the UK economy 
  last March, restoring the momentum it had built up over prior financial 
  periods. I am pleased to say that this momentum has been sustained 
  into the new financial year with a period of unprecedented value growth 
  and activity, driven fundamentally by strong trading performance across 
  the portfolio and characterised by a number of landmark transactions 
  for the VCT. 
 
  Whilst the longer-term economic impact of COVID-19 is yet to be fully 
  understood, and with teething issues following Brexit, most of the 
  investee companies in the portfolio have proven their ability to adapt 
  well in a rapidly changing environment. Your Board has been encouraged 
  by their adeptness in facing challenges by swiftly identifying new 
  opportunities and capitalising on them. In addition, favourable trading 
  conditions have emerged for a number of technology-related companies 
  in the portfolio, particularly those businesses operating direct-to-consumer 
  models. 
 
  During the period under review and despite considerable COVID-19 related 
  restrictions, the Company has maintained a high level of investment 
  activity. The Company added four new investments to its portfolio, 
  deployed follow-on funding into four existing portfolio companies, 
  achieved three profitable realisations, and supported the successful 
  admission to AIM of a further two of its investments. The Board has 
  particularly valued the efforts and achievements of the Investment 
  Adviser over this tumultuous period. 
 
 
  Performance 
  The Company's NAV total return per share was 35.2% for the six months 
  to 31 March 2021 (2020: a fall of (7.8)%), and the share price total 
  return was 31.9% (2020: a fall of (6.0)%). This represents an exceptional 
  uplift for the period and contrasts markedly with that recorded following 
  the onset of COVID-19 for the same period last year. The difference 
  between the NAV total return and share price total return figures 
  above arises principally due to the timing of NAV announcements which 
  are usually made retrospectively. 
 
  The exceptional NAV total return for the period was principally the 
  result of significant unrealised gains in the value of investments 
  still held as well as realised gains achieved via exits and partial 
  realisations of several portfolio companies. The combination of these 
  strong unrealised and realised portfolio returns has generated a performance 
  fee that is potentially payable to our Investment Adviser for the 
  first time in over three years. Shareholders should note that this 
  fee is subject to performance targets continuing to be met for the 
  remainder of the financial year and approval of the Annual Report 
  & Financial Statements by Shareholders at the Company's Annual General 
  Meeting ("AGM"). A breakdown of these fees is contained within Note 
  5 of the Unaudited Condensed Financial Statements. A positive revenue 
  return driven by strong dividend receipts has also contributed to 
  shareholder returns. 
 
  The Company's cumulative NAV total return per share (being the closing 
  net asset value plus total dividends paid since the launch of the 
  current share class) has increased from 201.56 pence per share at 
  the start of the period to 226.21 pence per share at the period-end. 
  This represents an increase of 12.2% over the period. 
 
  The Board believes that this performance has demonstrated strong portfolio 
  resilience over a volatile period. The valuations at the Half-Year 
  point reflect that many of our investee companies became beneficiaries 
  of accelerated changes in UK consumer and business behaviour, brought 
  on by a pandemic and lockdown restrictions. Despite the continued 
  uncertainty in respect of the pandemic's ultimate effect, both the 
  Board and the Investment Adviser believe that many of these changes 
  have become structural and are unlikely to reverse. In the case of 
  two direct-to-consumer portfolio companies, whose shares were admitted 
  to public trading on AIM in March 2021, the Company has benefited 
  from the market's recognition of this rapidly developing channel, 
  reflected in the substantial investor appetite for the offers of shares. 
  Nonetheless, the Board remains vigilant in monitoring the lasting 
  economic uncertainty and increased concentration of risk associated 
  with holding a significant portion of the portfolio's value in a small 
  number of public market investments, which accounted for 18.3% of 
  NAV at 31 March 2021. 
 
  Investment portfolio 
  The portfolio has performed very strongly in the first six months 
  of the Company's financial year. The overall value increased by GBP29.66 
  million (2020: decrease of GBP(8.20) million), or 58.3% (2020: (16.3)%) 
  on a like-for-like basis, compared to the opening portfolio value 
  at 1 October 2020 of GBP50.86 million. This increase comprised a net 
  unrealised uplift in portfolio valuations of GBP26.07 million and 
  GBP3.59 million in net realised gains, over the period. 
 
  At the period-end, the portfolio was valued at GBP74.72 million after 
  taking account of investments purchased and sold in the period, together 
  with the net realised and unrealised gains referred to above. The 
  portfolio may present opportunities for further investment in the 
  future. 
 
  Two notable events supported unrealised returns for Shareholders during 
  the period. The flotation of both Virgin Wines and Parsley Box on 
  the AIM market in March 2021 resulted in significant uplifts in valuation. 
  As part of the Virgin Wines transaction, the Company received repayment 
  of its remaining loan stock, leaving Virgin Wines ungeared. As part 
  of the IPO of Parsley Box, the Company realised part of its equity 
  holding, securing a 4.0x return on the cost of shares sold. There 
  were further substantial increases from MPB Group and EOTH, partially 
  offset by modest valuation falls at Rota Geek and Kudos Innovations. 
  Although a minority of companies remain disadvantaged by the COVID-19 
  pandemic, by contrast these have only had a modest impact on overall 
  shareholder returns. 
 
  Within the net realised gains, the principal contributors were the 
  full exits of Bourn Bioscience (GBP1.44 million), Omega Diagnostics 
  (GBP0.14 million) and Vectair (GBP0.06 million), as well as partial 
  exits of Parsley Box (GBP0.94 million) and MPB (GBP0.82 million). 
  Proceeds generated from these gains, combined with loan repayments 
  and other capital receipts, totalled GBP10.22 million received by 
  the Company in the period. 
 
  During the six months under review, the Company invested a total of 
  GBP3.07 million into four new investments: 
   Northern Bloc                          GBP0.47 million 
   Vegan and plant-based ice cream 
    producer 
 
   Connect Childcare                      GBP1.16 million 
   Nursery management software provider 
 
   Vivacity                               GBP1.25 million 
   Artificial intelligence & urban 
    traffic control system 
 
   Caledonian Leisure Travel              GBP0.19 million 
   UK leisure and experience breaks 
 
 
 
  In addition, four follow-on investments totalling GBP1.35 million 
  were made into: 
   Parsley Box                        GBP0.38 million 
   Ambient ready meals for the over 
    60s 
 
   Bleach London                      GBP0.15 million 
   Hair colourants brand 
 
   Arkk Consulting                    GBP0.66 million 
   Regulatory reporting software 
 
   Tapas Revolution                   GBP0.16 million 
   Spanish restaurant chain in the 
    casual dining sector 
 
 
  We expect follow-on investments to continue to be a feature of the 
  growth capital investments as they seek to achieve scale. 
 
  Since the period-end, the Company has made two follow-on investments 
  totalling GBP0.64 million. 
 
  Details of this investment activity and the performance of the portfolio 
  are contained in the Investment Adviser's Review and the Investment 
  Portfolio Summary below. 
 
  Revenue account 
  The results for the period are set out in the Unaudited Condensed 
  Income Statement and show a revenue return (after tax) of 0.70 pence 
  per share (2020: 1.40 pence per share). Despite strong dividend receipts, 
  the revenue return for the period of GBP0.83 million has decreased 
  from last year's comparable figure of GBP1.53 million. This is mainly 
  due to significant investment income received on the disposal of Auction 
  Technology Group which inflated the prior year's figure. 
 
  Dividends 
  The Board continues to be committed to providing an attractive dividend 
  stream to Shareholders and is pleased to declare an Interim dividend 
  of 5.00 pence per share for the year ending 30 September 2021. 
 
  This dividend will be paid on 23 July 2021, to Shareholders on the 
  Register on 25 June 2021, and will bring cumulative dividends paid 
  per share to 136.50 pence per share. 
 
  The Company's target of paying a dividend of at least 6.00 pence per 
  share in respect of each financial year has been met or exceeded in 
  each of the last nine years. It has been previously noted that the 
  evolution of the portfolio to younger growth capital investments may 
  make dividends harder to achieve from income and capital returns alone 
  in any given year, or which could affect the timing and frequency 
  of dividend payments compared to previous distributions. In light 
  of these factors, the Board continues to monitor the sustainability 
  of its dividend target. 
 
  Dividend Investment Scheme 
  The Company's Dividend Investment Scheme ("DIS") was recommenced on 
  12 February 2020, having been temporarily suspended. All previously 
  registered participants of the Scheme were automatically re-enrolled, 
  with their future dividends to be re-invested unless they notified 
  a wish to opt-out. Since its reinstatement in 2020, 4,277,951 Ordinary 
  shares have been allotted to participants of the DIS at an average 
  price of 63.13 pence per share. 
 
  The Scheme provides Shareholders with the opportunity to reinvest 
  their cash dividends into new shares in the Company at the latest 
  published NAV per share (adjusted for any subsequent dividends). New 
  VCT shares attract the same tax reliefs as shares purchased through 
  an Offer for Subscription. 
 
  Shareholders can opt-in to the DIS by completing a mandate form available 
  on the Company's website at www.incomeandgrowthvct.co.uk and can opt-out 
  by contacting Link Group, using their details provided under Shareholder 
  Information in the Half-Year Report. 
 
  Fundraising 
  The Board, with the Investment Adviser, continues to monitor the Company's 
  liquidity levels and cashflow requirements in view of investment activity, 
  market movements and regulatory obligations. With these in mind and 
  under regular review, the Board comes to a decision with regards to 
  future fundraising requirements and, in doing so, will notify Shareholders 
  of any intention to raise further funds for the Company through an 
  Offer for Subscription. 
 
  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 2021 amounted 
  to GBP34.33 million. This figure included GBP29.80 million held in 
  money market funds with AAA credit ratings and GBP4.53 million held 
  in deposit accounts with several well-known financial institutions 
  across a range of maturities. 
 
  Share buybacks 
  During the six months ended 31 March 2021, the Company bought back 
  and cancelled 461,200 of its own shares, representing 0.4% (2020: 
  1.1%) of the shares in issue at the beginning of the period, at a 
  total cost of GBP0.32 million (2020: GBP0.83 million), inclusive of 
  expenses. 
 
  It is the Company's policy to cancel all shares bought back in this 
  way. The Board regularly reviews its buyback policy, where its priority 
  is to act prudently and in the interest of remaining Shareholders, 
  whilst considering other factors, such as levels of liquidity and 
  reserves, market conditions and applicable law and regulations. Under 
  this policy, the Company seeks to maintain the discount at which the 
  Company's shares trade at no more than 5% 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 last held its annual Shareholder Event on behalf 
  of all Mobeus-advised VCTs in early 2020. Last year's event was well 
  received and the Investment Adviser plans to hold an event later in 
  2021. Further details will be circulated to Shareholders and shown 
  on the Company's website in due course. 
 
  Fraud Warning 
  We have been made aware of an increase in the number of Shareholders 
  being contacted in connection with sophisticated but fraudulent financial 
  scams which purport to come from the Company or to be authorised by 
  it. This is often by a phone call or an email usually originating 
  from outside of the UK, claiming or appearing to be from a corporate 
  finance firm offering to buy your shares at an inflated price. 
 
  Further information and fraud advice plus details of who to contact, 
  can be found in the Information for Shareholders section of the Half-Year 
  Report. 
 
 
  Environmental, Social and Governance ("ESG") 
  Whilst the requirements under company law to detail ESG matters are 
  not applicable to the Company at the current time, the Board is conscious 
  of the Company's potential impact on the environment as well as its 
  social and corporate governance responsibilities. The Investment Adviser 
  has presented its ESG strategy to the Board and is providing regular 
  updates regarding the ESG developments. 
 
  Your Board would like to assure Shareholders that ESG matters form 
  a key consideration in investment decisions. The future FCA reporting 
  requirements consistent with the Task Force on Climate-related Financial 
  Disclosures commencing from 1 January 2021 do not currently apply 
  to the Company although will be kept under review in light of any 
  recommended changes. 
 
  Outlook 
  The impact of COVID-19 was and will continue to be wide reaching. 
  Nevertheless, your Board considers that your Company is well positioned 
  to continue to respond and adapt in most likely scenarios that can 
  presently be foreseen. The successful realisations and previous fundraisings 
  have given the Company strong liquidity not only to support the existing 
  portfolio, but also to capitalise on opportunities which may arise 
  for new investment and the Investment Adviser is seeing a good pipeline 
  of new and interesting investment opportunities. 
 
  COVID-19 uncertainties and economic instability may cause global markets 
  to be more volatile in the short-term. UK and European businesses 
  will also continue to operate in an uncertain trading environment 
  for the near future as the new UK/EU trade agreement beds in. The 
  companies in the portfolio have been well prepared for a considerable 
  time for the impact of Brexit and those preparations appear to be 
  working well. Although the degree and frequency of any future restrictions 
  as a result of the pandemic are unclear, both the Investment Adviser 
  and portfolio companies are well equipped to respond. Consequently, 
  we have cause to be cautiously optimistic about the future. 
 
  I would like to take this opportunity once again to thank all Shareholders 
  for your continued support. 
 
  Maurice Helfgott 
  Chairman 
  16 June 2021 
 
 
 Investment Policy 
 
 The Company's policy is to invest primarily in a diverse portfolio 
  of UK unquoted companies. 
 
  Asset Mix and Diversification 
  The Company will seek to make investments in UK unquoted companies 
  in accordance with the requirements of prevailing VCT legislation. 
 
  Investments are made selectively across a wide variety of sectors, 
  principally in established companies. 
 
  Investments are generally structured as part loan and part equity 
  in order to receive regular income and to generate capital gain from 
  realisations. 
 
  There are a number of conditions within the VCT legislation which 
  need to be met by the Company and which may change from time to time. 
 
  No single investment may represent more than 15% (by VCT tax value) 
  of the Company's total investments at the date of investment. 
 
  Save as set out above, the Company's other investments are held in 
  cash and liquid funds. 
 
  Liquidity 
  The Company's cash and liquid funds are held in a portfolio of readily 
  realisable interest-bearing investments, deposit and current accounts, 
  of varying maturities, subject to the overriding criterion that the 
  risk of loss of capital be minimised. 
 
  Borrowing 
  The Company's Articles of Association permit borrowing of up to 10% 
  of the adjusted capital and reserves (as defined therein). However, 
  the Company has never borrowed and the Board would only consider doing 
  so in exceptional circumstances. 
 
 
 Investment Review 
 
 
   Portfolio review 
   More than one year on from the March 2020 low point marked by value 
   reductions and widespread volatility, it is apparent that the overall 
   portfolio has adapted well and generally remained robust throughout. 
   Having largely recovered from the COVID-19 related decline by the 
   start of the period under review, and with the economic uncertainty 
   subsiding, the portfolio has returned to a more stable and positive 
   trajectory. It should be noted that, whilst markets showed a buoyant 
   recovery in 2020, this has not continued into 2021 where the main 
   driver of value growth has been a continuation of strong underlying 
   trading performance across the portfolio. 
 
   Whilst there have been a few portfolio companies which have experienced 
   disruption as a result of the ongoing UK lockdowns, a significant 
   proportion have actually benefited from a structural change in consumer 
   purchasing habits and are now trading above their pre COVID-19 levels. 
 
   The majority of the portfolio has demonstrated a high degree of resilience, 
   with over 78% of companies by number showing revenue and/or earnings 
   progression over the previous year. Investments classified as Retailers 
   now comprise over 56% of the portfolio by value but all these companies 
   have considerable direct-to-consumer channels, a business model that 
   has performed well, and all but one have no physical presence. This 
   has been exemplified by the flotation of Virgin Wines UK PLC and Parsley 
   Box Group PLC in March 2021, both at a price per share that materially 
   increased the value of the Company's investment. Software and other 
   technology enabled businesses have also performed strongly with MPB 
   attracting a sizeable equity investment from a large private equity 
   investor in a Series D funding round, whilst the portfolio has limited 
   exposure to more challenging sectors such as hospitality and travel. 
   A small number of companies have struggled, but they are in the minority 
   and their impact on overall shareholder return is minimal. Some of 
   these companies, namely Media Business Insight and RDL, have seen 
   a recent uplift in business which suggests a potentially more positive 
   outlook, however it is still early days in their recovery. 
 
   Whilst the exposure to General Retail is very well diversified across 
   the most attractive business models, it is noted that 24% of the portfolio 
   value is now concentrated in the two recently AIM-listed investments. 
   In line with market practice, in both cases the Company's shareholdings 
   are subject to lock-up arrangements normal for a transaction of this 
   type. 
 
   Strong trading activity levels created investment opportunities for 
   the Company as portfolio companies sought to enhance their positions 
   by building capability in light of demand. A number of further growth 
   capital investments were therefore made into the portfolio during 
   the period. Mobeus continues to review the opportunities for follow-on 
   investments and is in a good position to capitalise on these due to 
   the Company's strong liquidity. M&A sentiment also remained buoyant 
   with a continuing stream of attractive realisations throughout the 
   period. The outlook for both follow-on investment and realisations 
   continues to be positive. 
 
   The Company made investments totalling GBP4.42 million (2020: GBP4.15 
   million), comprising GBP3.07 million (2020: GBP4.15 million) into 
   four new investments and GBP1.35 million (2020: GBPnil) into four 
   existing investments. This level of new and follow-on investment is 
   pleasing given the continued uncertainty and lockdown restrictions 
   over the period under review. A healthy pipeline of suitable opportunities 
   continues to be seen to date. 
 
   Overall, it is reassuring to see that the traditional investments, 
   as well as the new growth investments, are continuing to make good 
   progress. A strong track record for the growth investments is now 
   emerging which validates the strategic change arising from the change 
   in VCT rules in 2015. 
 
   The portfolio movements in the period are summarised as follows: 
                                          2021      2020 
                                          GBPm      GBPm 
   ---------------------------------  --------  -------- 
    Opening portfolio value              50.86     50.22 
    New and follow-on investments         4.42      4.15 
    Disposal proceeds                  (10.22)   (8.36 ) 
    Net realised gains                    3.59      2.53 
    Unrealised v aluation movements      26.07   (10.73) 
   ---------------------------------  --------  -------- 
    Portfolio value at 31 March          74.72     37.81 
   ---------------------------------  --------  -------- 
 
 
   The portfolio's valuation changes in the period are summarised as 
   follows: 
    Investment Portfolio Capital Movement        2021      2020 
                                                 GBPm      GBPm 
   ---------------------------------------  ---------  -------- 
    Increase in the value of unrealised 
     investments                                26.68      1.71 
    Decrease in the value of unrealised 
     investments                               (0.61)   (12.44) 
   ---------------------------------------  ---------  -------- 
    Net increase/(decrease) in the value 
     of unrealised investments                  26.07   (10.73) 
   ---------------------------------------  ---------  -------- 
    Realised gains                               3.67      2.53 
    Realised losses                          (0 . 08)         - 
   ---------------------------------------  ---------  -------- 
    Net realised gains in the period             3.59      2.53 
   ---------------------------------------  ---------  -------- 
    Net investment portfolio movement in 
     the period                                 29.66    (8.20) 
   ---------------------------------------  ---------  -------- 
 
 
 New investments during the period 
  The Company made four new investments totalling GBP3.07 million during 
  the period, as detailed below: 
      Company             Business         Date of Investment       Amount of new 
                                                                   investment (GBPm) 
                       Vegan and plant 
                        based ice cream 
    Northern Bloc          producer            December 2020              0.47 
                     -------------------  ---------------------  -------------------- 
   Northern Bloc Ice Cream (northern-bloc.com) is an established 
    food brand in the emerging and rapidly growing vegan market. By 
    focusing on chef quality natural ingredients, Northern Bloc has 
    carved out an early mover position in the vegan ice cream sector. 
    The company's focus on plant-based alternatives has strong environmental 
    credentials as well as it being the first ice cream brand to move 
    wholly into sustainable packaging. The investment is aimed at 
    capitalising on the company's market position and accelerating 
    growth. It has obtained key listings across several large supermarkets 
    and is well placed to benefit from the food service recovery as 
    it continues to secure menu placings. Northern Bloc has doubled 
    its retail store facings in 2020 and saw a 60% increase in retail 
    sales over the year. 
                                  Nursery management 
      Connect Childcare             software provider            December 2020      1.16 
   Connect Childcare (connectchildcare.com) is a fully integrated 
    nursery management system for childcare providers in the UK. Its 
    market leading Core Connect product provides nurseries and preschools 
    with an enterprise software solution enabling more efficient administrative 
    processes. The investment will be used to drive product marketing, 
    commercialise their new SaaS product, Foundations, as well as 
    support the roll out of a payment facility to its underlying customer 
    base. Supplying 14 of the top 25 largest nursery groups in the 
    UK, the company has strong recurring revenues which have grown 
    20% for each of the last three years. 
                                 Artificial intelligence 
                                     & urban traffic 
           Vivacity                   control system             February 2021      1.25 
                             ------------------------------  -------------------  ------- 
   Vivacity (vivacitylabs.com) develops camera sensors with on-board 
    video analytics software that enables real-time anonymised data 
    gathering of road transport system usage. It offers city transport 
    authorities the ability to manage their road infrastructure more 
    effectively, enabling more efficient monitoring of congestion 
    and pollution levels as well as planning for other issues, such 
    as the changing nature of road usage (e.g. the increasing number 
    of cyclists). The technology and software represent a significant 
    leap forward for local planning authorities which have traditionally 
    relied upon manual data collection methods. The growth capital 
    funding will allow the management team to achieve deeper penetration 
    of the UK transport management sector, explore opportunities internationally 
    and commercialise its new Smart Junction offering. Revenues have 
    grown 350% over the last three years and it has exceeded its most 
    recent year's budget despite the onset of the COVID-19 pandemic. 
    In April 2021, Vivacity won the Queen's Award for Enterprise: 
    Innovation 2021. 
 
                                      UK Leisure and 
      Caledonian Leisure            experience breaks             March 2021        0.19 
                             ------------------------------  -------------------  ------- 
   Caledonian Leisure works with accommodation providers, coach businesses 
    and other experienced providers (such as entertainment destinations 
    and theme parks) to deliver to its customers UK-based leisure 
    and experience breaks. It comprises two brands, Caledonian Travel 
    (caledoniantravel.com) and UK Breakaways (ukbreakaways.com). The 
    domestic leisure and experience travel market has been devastated 
    by the COVID-19 pandemic, but the company is well-placed to expand 
    as lockdown and travel restrictions are eased. This investment, 
    as part of a series of planned investment tranches, will help 
    the company prepare for and capitalise on what is expected to 
    be strong demand for UK staycation holidays. 
 
  Follow-on investments during the period 
  The Company made four further investments into existing portfolio 
  companies in the period, totalling GBP1.35 million, as detailed below:      Company               Business           Date of Investment    Amount of further 
                                                                        investment (GBPm) 
 
                            Ambient ready 
                           meals targeting          January/March 
      Parsley Box            the over 60s                2021                 0.38 
                      ------------------------  --------------------  ------------------- 
   Parsley Box (parsleybox.com) is a UK direct to consumer supplier 
    of home delivered, ambient ready meals for the over 60s. Founded 
    in 2017, Parsley Box has grown rapidly and has developed a unique 
    meal delivery solution for its customers. The company supplies 
    a diverse range of ambient meals via next day delivery which are 
    easy to store and aim to contribute to a more independent and 
    healthier lifestyle. The company has seen a strong benefit from 
    the COVID-19 pandemic with revenues nearly eight times that at 
    the time of the original VCT investment. This further investment 
    will scale the company's marketing strategy, enable it to process 
    larger order volumes and continue to build out its team. The company 
    admitted its shares to trading on AIM on 31 March 2021. 
 
                           Hair colourants 
     Bleach London              brand               February 2021             0.15 
                      ------------------------  --------------------  ------------------- 
   Bleach London Holdings ("Bleach") (bleachlondon.com) is an established 
    branded, fast growing business which manufactures a range of haircare 
    and colouring products. Bleach has made sound commercial progress 
    since the VCTs invested in 2019 with its direct-to-consumer channels 
    benefiting greatly from the COVID-19 pandemic. Revenues have grown 
    over 90% ahead of the previous year. This further investment, 
    along with strong support from existing investors, will be used 
    to invest in marketing and infrastructure to enable the business 
    to accelerate its direct-to-consumer channel. 
 
                            Regulatory and 
                        reporting requirement 
    Arkk Consulting        service provider         February 2021             0.66 
                      ------------------------  --------------------  ------------------- 
   Arkk Consulting (trading as Arkk Solutions) (arkksolutions.com) 
    provides services and software to enable organisations to remain 
    compliant with regulatory reporting requirements. Arkk was established 
    in 2009 and currently has over 800 clients across 20 countries. 
    These include more than 80 of the FTSE 350, and half of the largest 
    20 accountancy firms in the UK. This further investment is to 
    enable continued development of its software in order to capitalise 
    on HMRC's 'Making Tax Digital' campaign. The company has incorporated 
    artificial intelligence into its product and recurring revenues 
    are now over 50% higher than at the point of the original investment 
    in May 2019. 
 
                          Spanish restaurant 
   Tapas Revolution             chain                March 2021               0.16 
                      ------------------------  --------------------  ------------------- 
   Spanish Restaurant Group Limited (trading as Tapas Revolution) 
    (tapasrevolution.com) is a leading Spanish restaurant chain in 
    the casual dining sector. At initial investment in January 2017, 
    it was operating five sites and, subsequent to a further investment 
    round in March 2018, had grown to 12 sites. Tapas was trading 
    well and had a strong outlook up until the onset of COVID-19 which 
    mandated the closure of much of its estate during the course of 
    2020 in response to the varying patterns of government restrictions. 
    Costs have been controlled well under the circumstances and this 
    further investment is to provide financial headroom through the 
    remaining lockdown period and to capitalise on new site acquisition 
    opportunities once the lockdown period has ended. 
 
 Portfolio valuation movements 
  The portfolio generated significant net unrealised gains of GBP26.07 
  million in the first half of its financial year. The scale of the 
  valuation increases was underpinned by the Company's growth portfolio, 
  many of which have direct-to-consumer business models that have been 
  ideally suited to the more physically remote business environment 
  necessitated by COVID-19. Mobeus believes that this has accelerated 
  an existing trend and, in many cases, the shift in behaviour will 
  prove permanent. Over this period, some older style MBO portfolio 
  companies with similar business practices have also benefited. A few 
  companies have struggled in this environment, and while there remains 
  a possibility such businesses could fail, their value has already 
  been reduced to modest levels, reducing the risk to shareholder value. 
 
  Total valuation increases were GBP26.68 million. The main valuation 
  increases were: 
   Virgin Wines   GBP10.89 million 
 
   MPB Group      GBP3.21 million 
 
   EOTH (Equip)   GBP2.33 million 
 
   Parsley Box    GBP1.49 million 
 
 
  Virgin Wines, MPB and Parsley Box have generated record revenues and 
  earnings over the lockdown periods and beyond. Both have significantly 
  increased their customer base and there is evidence that these new 
  customers are continuing to be at least as active and profitable as 
  their pre-COVID-19 counterparts. EOTH experienced a very strong end 
  to its financial year, fully recovering to pre-COVID-19 levels of 
  profitability and has strong visibility over future orders. 
 
  Total valuation decreases were GBP(0.61) million. The main valuation 
  decreases were: 
   RotaGeek            GBP(0.23) million 
 
   Kudos Innovations   GBP(0.19) million 
 
 
  These companies saw the most significant impact of a sudden decline 
  in demand for their products or services as a result of COVID-19. 
  However, as restrictions are eventually eased, a recovery is anticipated 
  in due course. 
 
  The majority of the increase in portfolio value lies in the top 10 
  companies which represent over 70% of the portfolio by value (excluding 
  legacy). Year-on-year growth by either revenues or earnings has been 
  seen in all of the top ten companies (excluding legacy) and it is 
  pleasing to note that nine of these are from the younger, growth portfolio. 
 
 Portfolio Realisations 
  The Company realised its investments in Vectair, Bourn Bioscience 
  and Omega Diagnostics during the period receiving combined proceeds 
  of GBP3.67 million and contributed to total proceeds of GBP10.22 million 
  received over the period, as detailed below. In summary, aggregate 
  proceeds generated over the life of these three investments were GBP6.11 
  million representing a gain over original cost of GBP4.00 million.      Company               Business          Period of investment   Total cash proceeds 
                                                                             over the life 
                                                                         of the investment 
                                                                           / Multiple over 
                                                                                      cost 
                            Designer and            January 2006           GBP1.83 million 
        Vectair            distributor of         to November 2020               8.5x cost 
                          washroom products 
                      -----------------------  --------------------- 
   The Company sold its investment in Vectair Holdings Limited to 
    a consortium of US investment funds, including Oxbow Industries 
    and Arcspring, and has received proceeds of GBP1.14 million (including 
    GBP0.06 million dividends) (realised gain in the period: GBP0.06 
    million). This investment generated proceeds over the life of 
    the investment of GBP1.83 million compared to original cost of 
    GBP0.22 million, which is a multiple of cost of 8.5x and an IRR 
    of 22.3%. 
   Bourn Bioscience    In vitro fertilisation       January 2014           GBP2.64 million 
                               clinics                   to                      1.6x cost 
                                                    December 2020 
                      -----------------------  ---------------------  -------------------- 
   The Company sold its investment in Bourn Bioscience Limited to 
    Canadian acquirer Triangle Capital, and has received cash proceeds 
    of GBP2.14 million (including GBP0.14 million interest on completion) 
    (realised gain in the period: GBP1.44 million). This investment 
    generated proceeds over the life of the investment of GBP2.64 
    million compared to original cost of GBP1.61 million, which is 
    a multiple of cost of 1.6x and an IRR of 8.5%. 
   Omega Diagnostics   In Vitro diagnostics        December 2010           GBP1.64 million 
                        for food intolerance,            to                      5.9x cost 
                        auto-immune diseases        February 2021 
                        and infectious 
                        diseases 
                      -----------------------  ---------------------  -------------------- 
   Following a further significant increase in the share price, the 
    Company sold its remaining investment in Omega Diagnostics Group 
    plc for GBP0.59 million (realised gain in the period: GBP0.14 
    million). Total proceeds received over the eleven-year life of 
    the investment were GBP1.64 million compared to an original investment 
    cost of GBP0.28 million, which is a multiple on cost of 5.9x and 
    an IRR of 19.9%. 
 
 
  Loan repayments and other gains/(losses) in the period 
  During the year and following the admission of its shares to AIM, 
  the Company received GBP1.73 million from the partial realisation 
  of its holding in Parsley Box, generating a realised gain of GBP0.94 
  million. Over the two years to date this investment has been held, 
  this partial sale generated a multiple of cost of 4.0x on the cost 
  of the shares sold. The Company also received GBP1.74 million from 
  the partial realisation of MPB Group generating a realised gain of 
  GBP0.82 million. This partial realisation generated a 7.8x multiple 
  of cost on the cost of the shares sold and was the result of a large 
  private equity investor taking a sizeable equity investment in the 
  company. 
 
  Proceeds of GBP2.93 million were received via loan repayments from 
  Virgin Wines, Vian Marketing (trading as Red Paddle), and BG Training, 
  generating a net realised gain of GBP0.04 million. 
 
  Finally, consideration and realised gains totalling GBP0.23 million 
  were received in respect of Redline Worldwide and Blaze Signs, both 
  investments realised in a previous year. A small realised loss of 
  GBP(0.08) million was also recognised in respect of transaction costs 
  for BookingTek and Virgin Wines, the latter due to stamp duty paid 
  upon the listing of shares to AIM. 
 
  Portfolio Income and yield 
  In the period under review, the Company received the following amounts 
  in loan interest and dividend income: 
   Investment Portfolio Yield                   2021    2020 
                                                GBPm    GBPm 
 
   Interest received in the period              0.72    1.85 
   Dividends received in the period             0.59    0.35 
  ------------------------------------------  ------  ------ 
   Total portfolio income in the period(1)      1.31    2.20 
  ------------------------------------------  ------  ------ 
   Portfolio Value at 31 March                 74.72   37.81 
  ------------------------------------------  ------  ------ 
   Portfolio Income Yield (Income as a % of 
    Portfolio value at 31 March)                1.8%    5.8% 
  ------------------------------------------  ------  ------ 
 
 
  (1) Total portfolio income in the period is generated solely from 
  investee companies within the portfolio 
 
 Further investments made after the period-end 
  The Company made two further investments into existing portfolio companies, 
  totalling GBP0.64 million after the period-end, as detailed below: 
         Company                Business          Date of Investment    Amount of further 
                                                                         investment (GBPm) 
 
                             UK Leisure and 
   Caledonian Leisure       experience breaks       April/May 2021             0.25 
                        -----------------------  --------------------  ------------------- 
   Caledonian Leisure works with accommodation providers, coach businesses 
    and other experienced break providers (such as entertainment destinations 
    and theme parks) to deliver to its customers UK-based leisure 
    and experience breaks. It comprises two brands, Caledonian Travel 
    (caledoniantravel.com) and UK Breakaways (ukbreakaways.com). The 
    domestic leisure and experience travel market has been devastated 
    by the COVID-19 pandemic, but the company is well-placed to expand 
    as lockdown and travel restrictions are eased. This second and 
    third investment, as part of a series of planned investment tranches, 
    will continue to help the company prepare for and capitalise on 
    what is expected to be strong demand for UK staycation holidays. 
 
                             Premium frozen 
       Bella & Duke       raw dog food provider        May 2021                0.39 
                        -----------------------  --------------------  ------------------- 
   Bella & Duke (bellaandduke.com) is a direct-to-consumer subscription 
    service, providing premium frozen raw dog food to pet owners in 
    the UK. Founded in 2016, the business provides an alternative 
    to standard meal options for dog owners by focusing on the well 
    documented health benefits of a raw food diet. This area is a 
    growing niche in the large and established pet food market and 
    is being driven by the premiumisation of dog food. Alongside a 
    co-investment by the British Growth Fund ("BGF") and existing 
    shareholders, this follow-on investment from the Company will 
    provide additional working capital enabling Bella & Duke to continue 
    to scale. 
 
 
  Environmental, Social, Governance considerations 
  The Investment Adviser believes that the consideration of environmental, 
  social and corporate governance ("ESG") factors throughout the investment 
  cycle will contribute towards enhanced Shareholder value. 
 
  When seeking new investment opportunities, it operates with a list 
  of exclusions which preclude it from investing in any businesses operating 
  in areas perceived to be unsustainable or detrimental to wider society, 
  or any businesses that have committed purposeful breaches of regulation 
  or have engaged in unlawful activity. Once identified, each potential 
  new investment is then subject to a comprehensive due diligence process 
  that encompasses commercial, financial and ESG principles. This process 
  helps in the formulation and agreement of strategic objectives at 
  the stage of business planning and investment. The Investment Adviser 
  then continues to work closely with each portfolio company board to 
  support them in addressing their particular ESG challenges and opportunities, 
  which are diverse across the entire portfolio. 
 
  Mobeus Equity Partners LLP is a signatory of the United Nations Principles 
  of Responsible Investment ("PRI"), considered to be the world's leading 
  proponent of responsible investing. As a signatory, it must report 
  to the PRI on an annual basis and is held accountable to worldwide 
  ESG standards. As such, the Investment Adviser continues to develop 
  its policies and procedures with the professional advice of specialist 
  ESG consultants and reports on the development of this ESG framework 
  to the Board on a regular basis. 
 
  Outlook 
  The growth strategy implemented in 2015 is clearly showing signs of 
  bearing fruit with many companies beginning to achieve significant 
  scale and attract the interest of public markets and larger secondary 
  investors. The portfolio is in a healthy position with many companies 
  trading well throughout the lockdowns, and several at record levels. 
  It continues to evolve, offering a balance of fast-growing and more 
  stable investments at various stages of maturity and scale across 
  a range of diverse market sectors. There is a significant exposure 
  to businesses operating a direct-to-consumer business model which 
  has underpinned performance during the year. This also gives confidence 
  about the future performance of the portfolio and its ability to cope 
  with the challenges and opportunities associated with Brexit, the 
  macro-economic outlook and the ongoing impact of COVID-19. The new 
  investment pipeline is recovering to levels seen pre-COVID-19 and 
  the prospects for capital deployment are encouraging. 
 
  The exceptional performance experienced since the impact of COVID-19 
  in March 2020, is likely to moderate over the next 12 months as the 
  level of activity normalises. However, the portfolio is in a robust 
  shape and the investment activity levels are promising. Mobeus is 
  therefore cautiously optimistic for the future. 
 
  Mobeus Equity Partners LLP 
  Investment Adviser 
  16 June 2021 
 INVESTMENT PORTFOLIO SUMMARY as at 31 March 2021 
                                          Total      Valuation    Additional     Valuation 
                                         cost at             at                          at 
                                        31 March   30 September   investments      31 March 
                                            2021           2020                        2021 
                                     (unaudited)      (audited)        in the   (unaudited) 
                                                                       period 
                                             GBP            GBP           GBP           GBP 
    Virgin Wines UK Plc (formerly 
     Virgin Wines Holding Company 
     Limited) (1)                         65,288      6,458,434             -    14,673,244 
    Online wine retailer 
   -------------------------------  ------------  -------------  ------------  ------------ 
    MPB Group Limited                  1,820,552      4,698,745             -     6,992,306 
    Online marketplace for used 
     photographic equipment 
   -------------------------------  ------------  -------------  ------------  ------------ 
    EOTH Limited (trading as Equip 
     Outdoor Technologies)             1,383,313      2,986,028             -     5,318,777 
    Branded outdoor equipment 
     and clothing including the 
     Rab and Lowe Alpine brands 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Preservica Limited                 2,960,899      4,303,532             -     5,177,255 
    Seller of proprietary digital 
     archiving software 
   -------------------------------  ------------  -------------  ------------  ------------ 
    End Ordinary Group Limited 
     (trading as Buster and Punch) 
     (formerly Buster and Punch 
     Holdings Limited)                 2,046,612      2,740,635             -     3,965,398 
    Industrial inspired lighting 
     and interiors retailer 
   -------------------------------  ------------  -------------  ------------  ------------ 
    My Tutorweb Limited (trading 
     as MyTutor)                       2,759,335      2,972,638             -     3,701,022 
    Digital marketplace connecting 
    school pupils seeking 
    one-to-one 
    online tutoring 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Parsley Box Group Plc 
     (formerly 
     Parsley Box Limited)(2)             874,001      2,168,135       377,486     3,253,102 
    Supplier of home delivered, 
     ambient ready meals targeting 
     the over 60s 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Manufacturing Services 
     Investment 
     Limited (trading as Wetsuit 
     Outlet)                           3,205,182      2,371,375             -     3,203,099 
    Online retailer in the water 
     sports market 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Data Discovery Solutions 
     Limited 
     (trading as Active 
     Navigation)                       1,543,500      3,087,000             -     3,087,000 
    Provides the global market 
    leading file analysis software 
    for information governance, 
    security and compliance 
   -------------------------------  ------------  -------------  ------------  ------------ 
    I-Dox plc                            453,881      1,895,924             -     2,583,458 
    Developer and supplier of 
     knowledge management products 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Proactive Group Holdings Inc         988,390      2,486,769             -     2,486,769 
    Provider of media services 
     and investor conferences for 
     companies primarily listed 
     on secondary public markets 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Media Business Insight 
     Holdings 
     Limited                           3,666,556      1,407,127             -     2,332,587 
    A publishing and events 
    business 
    focused on the creative 
    production 
    industries 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Arkk Consulting Limited 
     (trading 
     as Arkk Solutions)                2,182,187      1,348,963       656,180     2,275,782 
    Provider of services and 
    software 
    to enable organisations to 
    remain compliant with 
    regulatory 
    reporting requirements 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Vian Marketing Limited 
     (trading 
     as Red Paddle Co)                 1,059,617      1,881,880             -     2,106,039 
    Design, manufacture and sale 
     of stand-up paddleboards and 
     windsurfing sails 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Master Removers Group 2019 
     Limited (trading as Anthony 
     Ward Thomas, Bishopsgate and 
     Aussie Man & Van)                   464,658      1,175,977             -     2,041,054 
    A specialist logistics, 
    storage 
    and removals business 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Bella & Duke Limited                 931,499        931,499             -     1,498,787 
    A premium frozen raw dog food 
     provider 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Tharstern Group Limited            1,454,278      1,137,147             -     1,495,708 
    Software based management 
     Information systems for the 
     printing industry 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Connect Childcare Group 
     Limited                           1,157,214              -     1,157,214     1,402,901 
    Nursery management software 
     provider 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Bleach London Holdings Limited       874,302      1,232,358       152,850     1,279,006 
    Hair colourants brand 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Vivacity Labs Limited              1,250,760              -     1,250,760     1,250,760 
    Provider of artificial 
    intelligence 
    & urban traffic control 
    systems 
   -------------------------------  ------------  -------------  ------------  ------------ 
    IPV Limited                          954,674        954,674             -       954,674 
    Provider of media asset 
    software 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Rota Geek Limited                  1,250,800      1,170,582             -       944,809 
    Workforce management software 
   -------------------------------  ------------  -------------  ------------  ------------ 
    CGI Creative Graphics 
     International 
     Limited                           1,943,948        337,590             -       653,479 
    Vinyl graphics to global 
    automotive, 
    recreation vehicle and 
    aerospace 
    markets 
   -------------------------------  ------------  -------------  ------------  ------------ 
    RDL Corporation Limited            1,441,667        137,899             -       529,811 
    Recruitment consultants within 
    the pharmaceutical, business 
    intelligence and IT industries 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Northern Bloc Ice Cream 
     Limited                             473,100              -       473,100       495,536 
    Supplier of premium vegan 
     ice cream 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Spanish Restaurant Group 
     Limited 
     (formerly Ibericos Etc. 
     Limited) 
     (trading as Tapas Revolution)     1,552,636        186,300       155,250       341,550 
    Spanish restaurant chain 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Muller EV Limited (trading 
     as Andersen EV)                     317,000        352,473             -       263,474 
    Provider of premium electric 
     vehicle (EV) chargers 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Caledonian Leisure Limited           194,675              -       194,675       194,675 
    Provider of UK leisure and 
     experience breaks 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Kudos Innovations Limited            472,500        329,354             -       140,795 
    Online platform that provides 
    and promotes academic research 
    dissemination 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Jablite Holdings Limited (in 
     members' voluntary 
     liquidation)                        498,790         65,779             -        65,779 
    Manufacturer of expanded 
    polystyrene 
    products 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Corero Network Security plc          600,000          7,374             -        11,787 
    Provider of e-business 
    technologies 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Oxonica Limited                    2,524,527              -             -             - 
    International nanomaterials 
     group 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Veritek Global Holdings            2,289,859              -             -             - 
    Limited 
    Maintenance of imaging 
    equipment 
   -------------------------------  ------------  -------------  ------------  ------------ 
    BookingTek Limited                   779,155              -             -             - 
    Software for hotel groups 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Racoon International Group           655,851              -             -             - 
     Limited 
    Supplier of hair extensions, 
    hair care products and 
    training 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Oakheath Limited (formerly           649,528              -             -             - 
    Super Carers Limited) (in 
    members' voluntary 
    liquidation) 
    Online platform that connects 
    people seeking home care from 
    experienced independent carers 
   -------------------------------  ------------  -------------  ------------  ------------ 
    NexxtDrive Limited/Nexxt             487,014              -             -             - 
    E-drive 
    Limited 
    Developer and exploiter of 
    mechanical transmission 
    technologies 
   -------------------------------  ------------  -------------  ------------  ------------ 
    CB Imports Group Limited             175,000              -             -             - 
    (trading 
    as Country Baskets) 
    (in members' voluntary 
    liquidation) 
    Importer and distributor of 
    artificial flowers, floral 
    sundries and home decor 
    products 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Aquasium Technology Limited          166,667              -             -             - 
    Manufacturing and marketing 
    of bespoke electron beam 
    welding 
    and vacuum furnace equipment 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Biomer Technology Limited            137,170              -             -             - 
    Developer of biomaterials 
     for medical devices 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Disposals in period 
    Vectair Holdings Limited                   -      1,020,351             -             - 
    Designer and distributor of 
     washroom products 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Bourn Bioscience Limited                   -        552,130             -             - 
    Management of In-vitro 
    fertilisation 
    clinics 
   -------------------------------  ------------  -------------  ------------  ------------ 
    Omega Diagnostics Group plc                -        449,180             -             - 
    In-vitro diagnostics for food 
    intolerance, autoimmune 
    diseases 
    and infectious diseases 
   -------------------------------  ------------  -------------  ------------  ------------ 
    BG Training Limited                        -         13,281             -             - 
    Technical training business 
 
    Total                             48,706,585     50,861,133     4,417,515    74,720,423 
   -------------------------------  ------------  -------------  ------------  ------------ 
 
    Total Investment Portfolio 
     split by type 
    Growth focused portfolio (3)      32,146,089     37,931,047     4,417,515    52,374,570 
    MBO focused portfolio (3)         16,560,496     12,930,086             -    22,345,853 
    Total                             48,706,585     50,861,133     4,417,515    74,720,423 
   -------------------------------  ------------  -------------  ------------  ------------ 
 
    (1) Admitted to AIM during the period. Ahead of the Admission to 
     AIM of Virgin Wines on 2 March 2021, the Company's equity investment 
     in Virgin Wines Holding Company Ltd ("VWHCL") had been exchanged 
     for an equity investment in Rapunzel Newco Limited ("RNL"), a company 
     owned by the four Mobeus advised VCTs pro rata to each VCT's share 
     of its investment in Virgin Wines. Immediately prior to Admission, 
     RNL exchanged its equity investment in VWHCL for an equity investment 
     in Virgin Wines UK plc ("VWUK"). The Company is beneficially interested 
     in VWUK, through its holding in RNL. RNL is the legal owner of the 
     shares in VWUK, but each VCT is the beneficial holder. As part of 
     Virgin Wines' admission to AIM, the Company received repayment of 
     its loan stock generating proceeds of GBP2.68 million. 
    (2) Admitted to AIM during the period. On 7 January 2021, a GBP0.36 
     million follow-on investment was made into Parsley Box Limited. 
     The enlarged shareholding was admitted to AIM on 31 March 2021. 
     Ahead of the admission to AIM, the Company's equity investment in 
     Parsley Box Limited had been exchanged for an equity investment 
     in Parsley Box Group UK plc. Upon admission to AIM, the Company 
     invested a further GBP0.02 million and realised proceeds of GBP1.73 
     million. 
    (3) The growth focused portfolio contains all investments made 
     after the change in the VCT regulations in 2015 plus some investments 
     that are growth in nature made before this date. The MBO focused 
     portfolio contains investments made prior to 2015 as part of the 
     previous MBO strategy. 
 
        Statement of the Directors' Responsibilities 
 
        Responsibility statements 
        In accordance with Disclosure and Transparency Rule (DTR) 4.2.10, 
        Maurice Helfgott (Chairman), Justin Ward (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 Interim Management Report which comprises the Chairman's Statement, 
        Investment Policy, Investment Review and Investment Portfolio Summary 
        includes a fair review of the information required by DTR 4.2.7, being 
        an indication of the important events that have occurred during the 
        first six months of the financial year and their impact on the condensed 
        set of financial statements; 
 
        c) a description of the principal risks and uncertainties facing the 
        Company for the remaining six months is set out below, in accordance 
        with DTR 4.2.7; and 
 
        d) there were no related party transactions in the first six months 
        of the current financial year that are required to be disclosed in 
        accordance with DTR 4.2.8. 
 
        Principal risks and uncertainties 
        In accordance with DTR 4.2.7, the Board confirms that the principal 
        risks and uncertainties facing the Company have not materially changed 
        from those identified in the Annual Report and Financial Statements 
        for the year ended 30 September 2020 ("the Annual Report"). The COVID-19 
        pandemic continues to cause some uncertainty, but has not changed 
        the nature of the principal risks. The Board considers that the present 
        processes for mitigating those risks remain appropriate. 
 
        The principal risks faced by the Company are: 
 
         *    Investment and liquidity; 
 
 
         *    Loss of approval as a Venture Capital Trust; 
 
 
         *    Regulatory; 
 
 
         *    Economic, political and other external risks; 
 
 
         *    Financial and operating; and 
 
 
         *    Market liquidity; 
 
 
 
        A detailed explanation of the principal risks facing the Company can 
        be found in the Annual Report on pages 31 and 32, as well as in Note 
        16 on Financial Instruments on pages 67 to 74 of that report. 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 earlier in the Interim management report which comprises the Chairman's 
        Statement, Investment Policy, Investment Adviser's Review and Investment 
        Portfolio Summary. The Directors have satisfied themselves that the 
        Company continues to maintain a significant cash position. The majority 
        of companies in the portfolio are well funded and the portfolio taken 
        as a whole remains resilient and well diversified, although the continuing 
        impact of COVID-19 may impose further considerable demands upon the 
        liquidity and trading prospects of some of these companies in the 
        near-term. 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 to the Financial Statements in the Annual Report, 
        available on the Company's website. Accordingly, the Directors continue 
        to adopt the going concern basis of accounting in preparing the Interim 
        report and financial statements. 
 
        Cautionary statement 
        This report may contain forward looking statements with regard 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: 
 
        Maurice Helfgott 
        Chairman 
        16 June 2021 
 
 UNAUDITED CONDENSED FINANCIAL STATEMENTS 
 
 Unaudited Condensed Income Statement for the six months to 31 March 
  2021 
 
                                        Six months ended 31 March                     Six months ended 31 
                                                 2021 (unaudited)                  March 2020 (unaudited) 
                             ------------------------------------  -------------------------------------- 
                      Notes     Revenue      Capital        Total     Revenue       Capital         Total 
                             ----------                            ----------  ------------  ------------ 
                                    GBP          GBP          GBP         GBP           GBP           GBP 
   ----------------  ------  ----------  -----------  -----------  ----------  ------------  ------------ 
    Net investment 
     portfolio 
     gains/(losses)     9             -   29,661,261   29,661,261           -   (8,201,658)   (8,201,658) 
                     ------  ----------  -----------  -----------  ----------  ------------  ------------ 
    Income              4     1,328,132            -    1,328,132   2,311,854             -     2,311,854 
                     ------  ----------  -----------  -----------  ----------  ------------  ------------ 
    Investment 
     Adviser's 
     fees               5     (223,439)    (670,315)    (893,754)   (236,541)     (709,625)     (946,166) 
                     ------  ----------  -----------  -----------  ----------  ------------  ------------ 
    Investment 
     Adviser's 
     performance 
     fees               5             -    (742,900)    (742,900)           -             -             - 
                     ------  ----------  -----------  -----------  ----------  ------------  ------------ 
    Other expenses            (218,943)            -    (218,943)   (270,947)             -     (270,947) 
                     ------  ----------  -----------  -----------  ----------  ------------  ------------ 
    Profit/(loss) 
     on ordinary 
     activities 
     before 
     taxation                   885,750   28,248,046   29,133,796   1,804,366   (8,911,283)   (7,106,917) 
                     ------  ----------  -----------  -----------  ----------  ------------  ------------ 
    Tax on 
     profit/(loss) 
     on ordinary 
     activities         6      (56,538)       56,538            -   (276,098)       276,098             - 
                     ------  ----------  -----------  -----------  ----------  ------------  ------------ 
    Profit/(loss) 
     for the period 
     and total 
     comprehensive 
     income                     829,212   28,304,584   29,133,796   1,528,268   (8,635,185)   (7,106,917) 
                     ------  ----------  -----------  -----------  ----------  ------------  ------------ 
    Basic and 
     diluted 
     earnings per 
     share              7         0.70p       23.90p       24.60p       1.40p       (7.93)p       (6.53)p 
                     ------  ----------  -----------  -----------  ----------  ------------  ------------ 
 
                                                      Year ended 30 September 
                                                                2020 (audited) 
                                 Notes     Revenue       Capital         Total 
                                        ---------- 
                                               GBP           GBP           GBP 
   ---------------------------  ------  ----------  ------------  ------------ 
    Net investment 
     portfolio gains/(losses)                    -     9,848,433     9,848,433 
                                ------  ----------  ------------  ------------ 
    Income                         4     3,660,837             -     3,660,837 
                                ------  ----------  ------------  ------------ 
    Investment Adviser's 
     fees                          5     (458,619)   (1,375,856)   (1,834,475) 
                                ------  ----------  ------------  ------------ 
    Investment Adviser's 
     performance fees              5             -             -             - 
                                ------  ----------  ------------  ------------ 
    Other expenses                       (528,481)             -     (528,481) 
                                ------  ----------  ------------  ------------ 
    Profit/(loss) 
     on ordinary activities 
     before taxation                     2,673,737     8,472,577    11,146,314 
                                ------  ----------  ------------  ------------ 
    Tax on profit/(loss) 
     on ordinary activities        6     (348,948)       348,948             - 
                                ------  ----------  ------------  ------------ 
    Profit/(loss) 
     for the period 
     and total comprehensive 
     income                              2,324,789     8,821,525    11,146,314 
                                ------  ----------  ------------  ------------ 
    Basic and diluted 
     earnings per 
     share                         7         2.07p         7.87p         9.94p 
                                ------  ----------  ------------  ------------ 
 
   The revenue column of the Income Statement includes all income and 
   expenses. The capital column accounts for the net investment portfolio 
   gains (unrealised gains/(losses) 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 Financial Reporting Standards 
   ("FRS"). In order to better reflect the activities of a VCT and in 
   accordance with the 2014 Statement of Recommended Practice ("SORP") 
   issued by the Association of Investment Companies ("AIC") and updated 
   in October 2019, supplementary information which analyses the Income 
   Statement between items of a revenue and capital nature has been presented 
   alongside the Income Statement. The revenue column of profit attributable 
   to equity shareholders is the measure the Directors believe appropriate 
   in assessing the Company's compliance with certain requirements set 
   out in Section 274 Income Tax Act 2007. 
 
   All the items in the above statement derive from continuing operations 
   of the Company. No operations were acquired or discontinued in the 
   period/year. 
 
   The notes to the unaudited financial statements form part of these 
   Half-Year Financial Statements. 
   Unaudited Condensed Balance Sheet as at 31 March 2021 
   ----------------------------------------------------------------------------------- 
 
                                                 31 March      31 March   30 September 
                                                     2021          2020           2020 
                                              (unaudited)   (unaudited)      (audited) 
                                      Notes           GBP           GBP            GBP 
   --------------------------------  ------  ------------  ------------  ------------- 
 
    Fixed assets 
 
    Investments at fair value           9      74,720,423    37,808,748     50,861,133 
 
    Current assets 
 
    Debtors and prepayments                     3,917,073       362,814        398,489 
 
    Current asset investments          10      32,954,426    39,479,736     30,449,213 
 
    Cash at bank                       10       1,378,815     1,406,450      1,739,602 
 
                                               38,250,314    41,249,000     32,587,304 
 
    Creditors: amounts falling due 
     within one year                          (1,022,895)     (282,076)      (315,007) 
 
 
    Net current assets                         37,227,419    40,966,924     32,272,297 
 
    Net assets                                111,947,842    78,775,672     83,133,430 
 
 
    Capital and reserves 
 
    Called up share capital                     1,182,005     1,150,685      1,186,617 
    Capital redemption reserve                     28,439        16,980         23,827 
    Share premium reserve                      12,283,303     9,625,433     12,283,303 
    Revaluation reserve                        31,570,937   (6,814,985)      6,862,342 
 
    Special distributable reserve              52,950,812    61,740,118     54,626,873 
 
    Realised capital reserve                   10,890,667     9,626,672      5,938,001 
 
    Revenue reserve                             3,041,679     3,430,769      2,212,467 
 
 
    Equity Shareholders' funds                111,947,842    78,775,672     83,133,430 
 
 
    Basic and diluted net asset 
     value: 
    Basic and diluted net asset 
     value per share                   11          94.71p        68.46p         70.06p 
   --------------------------------  ------  ------------  ------------  ------------- 
  The financial information for the six months ended 31 March 2021 
   and the six months ended 31 March 2020 has not been audited. 
 
   The notes to the unaudited financial statements form part of these 
   Half-Year Financial Statements. 
  Unaudited Condensed Statement of Changes in Equity 
    for the six months to 31 March 2021 
  -------------------------------------------------------------------------------------------------------------------------- 
                               Non-distributable reserves                       Distributable reserves 
                       Called 
                           up      Capital        Share                       Special     Realised 
                        share   redemption      premium   Revaluation   distributable      capital     Revenue 
                      capital      reserve      reserve       reserve         reserve      reserve     reserve         Total 
                                                                                (Note        (Note       (Note 
                                                                                   a)           b)          b) 
                          GBP          GBP          GBP           GBP             GBP          GBP         GBP           GBP 
  ---------------  ----------  -----------  -----------  ------------  --------------  -----------  ----------  ------------ 
 
   At 1 October 
    2020            1,186,617       23,827   12,283,303     6,862,342      54,626,873    5,938,001   2,212,467    83,133,430 
   Comprehensive 
   income 
   for the period 
   Profit for the 
    period                  -            -            -    26,073,426               -    2,231,158     829,212    29,133,796 
   Total 
    comprehensive 
    income for 
    the period              -            -            -    26,073,426               -    2,231,158     829,212    29,133,796 
                               -----------  -----------                --------------  ----------- 
 
   Contributions 
   by 
   and 
   distributions 
   to owners 
   Shares bought 
    back 
    (Note c)          (4,612)        4,612            -             -       (319,384)            -           -     (319,384) 
   Total 
    contributions 
    by and 
    distributions 
    to owners         (4,612)        4,612            -             -       (319,384)            -           -     (319,384) 
                               -----------  -----------                --------------  ----------- 
 
   Other 
   movements 
   Realised 
    losses 
    transferred 
    to special 
    reserve (Note 
    a)                      -            -            -             -     (1,356,677)    1,356,677           -             - 
   Realisation of 
    previously 
    unrealised 
    appreciation            -            -            -   (1,364,831)               -    1,364,831           -             - 
   Total other 
    movements               -            -            -   (1,364,831)     (1,356,677)    2,721,508           -             - 
                               -----------  -----------                --------------  ----------- 
 
   At 31 March 
    2021            1,182,005       28,439   12,283,303    31,570,937      52,950,812   10,890,667   3,041,679   111,947,842 
                               -----------  -----------                --------------  ----------- 
 
 
   Notes 
   Note 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 Shareholders, and to absorb any existing and future 
    realised losses and for other corporate purposes. At 31 March 2021, 
    the Company has a special reserve of GBP52,950,812, GBP30,576,363 
    of which arises from shares issued more than three years after the 
    end of the financial year in which they were issued. Reserves originating 
    from share issues are not distributable under VCT rules if they 
    are within three years of the end of an accounting period in which 
    the shares were issued. The total transfer of GBP1,356,677 from 
    the realised capital reserve to the special distributable reserve 
    above is the total of realised losses incurred by the Company in 
    the period. 
 
   Note b): The realised capital reserve and the revenue reserve together 
    comprise the Profit and Loss Account of the Company. 
 
   Note c): During the period, the Company repurchased 461,200 of its 
    own shares at the prevailing market price for a total cost (including 
    stamp duty) of GBP319,384, which were subsequently cancelled. The 
    difference between the figure shown above of GBP319,384 and that 
    per the Statement of Cash Flows of GBP413,435 is GBP94,051 which 
    was a creditor at the previous year-end. 
 
  Unaudited Condensed Statement of Changes in Equity 
    for the six months to 31 March 2020 
                               Non-distributable reserves                       Distributable reserves 
                       Called 
                           up      Capital       Share                        Special      Realised 
                        share   redemption     premium    Revaluation   distributable       capital     Revenue 
                      capital      reserve     reserve        reserve         reserve       reserve     reserve         Total 
                          GBP          GBP         GBP            GBP             GBP           GBP         GBP           GBP 
  ---------------  ----------  -----------  ----------  -------------  --------------  ------------  ----------  ------------ 
 
   At 1 October 
    2019            1,033,029        5,245           -      4,652,457      63,751,255     9,864,455   2,421,638    81,728,079 
   Comprehensive 
   income 
   for the period 
   (Loss)/profit 
    for 
    the period              -            -           -   (10,733,344)               -     2,098,159   1,528,268   (7,106,917) 
   Total 
    comprehensive 
    income for 
    the period              -            -           -   (10,733,344)               -     2,098,159   1,528,268   (7,106,917) 
                               -----------  ----------                 --------------  ------------ 
 
   Contributions 
   by 
   and 
   distributions 
   to owners 
   Shares issued 
    via 
    Offer for 
    Subscription      129,391            -   9,625,433              -        (99,106)             -           -     9,655,718 
   Shares bought 
    back             (11,735)       11,735           -              -       (828,976)             -           -     (828,976) 
   Dividends paid           -            -           -              -               -   (4,153,095)   (519,137)   (4,672,232) 
   Total 
    contributions 
    by and 
    distributions 
    to owners         117,656       11,735   9,625,433              -       (928,082)   (4,153,095)   (519,137)     4,154,510 
                               -----------  ----------                 --------------  ------------ 
 
   Other 
   movements 
   Realised 
    losses 
    transferred 
    to special 
    reserve                 -            -           -              -     (1,083,055)     1,083,055           -             - 
   Realisation of 
    previously 
    unrealised 
    appreciation            -            -           -      (734,098)               -       734,098           -             - 
   Total other 
    movements               -            -           -      (734,098)     (1,083,055)     1,817,153           -             - 
                               -----------  ----------                 --------------  ------------ 
 
   At 31 March 
    2020            1,150,685       16,980   9,625,433    (6,814,985)      61,740,118     9,626,672   3,430,769    78,775,672 
                               -----------  ----------                 --------------  ------------ 
 
   The notes to the unaudited financial statements form part of these 
    Half-Year Financial Statements. 
 
   The composition of each of these reserves is explained below: 
 
   Called up share capital - The nominal value of shares originally 
    issued, increased for subsequent share issues either via an Offer 
    for Subscription or 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 period-end are accounted for in this reserve, 
    except to the extent that the diminution is deemed permanent. 
 
   In accordance with stating all investments at fair value through 
    profit and loss (as recorded in Note 9), all such movements through 
    both revaluation and realised capital reserves are shown within the 
    Income Statement for the period. 
 
   Special distributable reserve - This reserve is created from cancellations 
    of the balances upon the Share premium reserve, which are transferred 
    to this reserve from time to time. The cost of share buybacks and 
    any realised losses on the sale or impairment of investments (excluding 
    transaction costs) are charged to this reserve. 75% of the Investment 
    Adviser fee expense, and the related tax effect, that are charged 
    to the realised capital reserve are transferred to this reserve. 
    This reserve will also be charged any facilitation fee payments to 
    financial advisers, which arose as part of the Offer for Subscription. 
 
   Realised capital reserve - The following are accounted for in this 
    reserve: 
 
   - Gains and losses on realisation of investments; 
 
   - Permanent diminution in value of investments; 
 
   - Transaction costs incurred in the acquisition and disposal of 
    investments; 
 
   - 75% of the Investment Adviser fee expense and 100% of any performance 
    fee payable, together with the related tax effect to this reserve 
    in accordance with the policies; and 
 
   - Capital dividends paid. 
 
   Revenue reserve - Income and expenses that are revenue in nature 
    are accounted for in this reserve, as well as 25% of the Investment 
    Adviser fee together with the related tax effect, as well as income 
    dividends paid that are classified as revenue in nature. 
 
 
    Unaudited Condensed Statement of Cash Flows 
     for the six months ended 31 March 2021 
 
                                            Six months    Six months 
                                                 ended         ended     Year ended 
                                              31 March      31 March   30 September 
                                                  2021          2020           2020 
                                  Notes    (unaudited)   (unaudited)      (audited) 
                                                   GBP           GBP            GBP 
    Cash flows from operating 
     activities 
    Profit/(loss) for the 
     financial period                       29,133,796   (7,106,917)     11,146,314 
    Adjustments for: 
    Net investment portfolio 
     (gains)/losses                       (29,661,261)     8,201,658    (9,848,433) 
    Increase in debtors                       (12,233)      (80,341)      (135,373) 
    Increase in creditors 
     and accruals                              799,205        37,456         39,354 
   ----------------------------  ------  ------------- 
    Net cash inflow from 
     operating activities                      259,507     1,051,856      1,201,862 
 
    Cash flows from investing 
     activities 
    Purchase of investments         9      (4,417,515)   (4,151,125)    (8,385,023) 
    Disposal of investments         9        6,715,869     8,346,088     17,597,050 
   ----------------------------  ------ 
    Net cash inflow from 
     investing activities                    2,298,354     4,194,963      9,212,027 
 
    Cash flows from financing 
     activities 
    Shares issued as part 
     of Offer for subscription                       -    10,000,000     10,000,000 
    Issue costs as part of 
     Offer for subscription                          -     (344,282)      (344,282) 
    Equity dividends paid           8                -   (4,672,232)   (18,153,151) 
    Purchase of own shares                   (413,435)     (806,336)    (1,189,858) 
   ----------------------------  ------  -------------  ------------  ------------- 
    Net cash (outflow)/inflow 
     from financing activities               (413,435)     4,177,150    (9,687,291) 
 
    Net increase in cash 
     and cash equivalents                    2,144,426     9,423,969        726,598 
    Cash and cash equivalents 
     at start of period                     29,037,046    28,310,448     28,310,448 
 
    Cash and cash equivalents 
     at end of period                       31,181,472    37,734,417     29,037,046 
   ============================  ======  =============  ============  ============= 
 
    Cash and cash equivalents 
     comprise: 
    Cash at bank and in hand       10        1,378,815     1,406,450      1,739,602 
    Cash equivalents               10       29,802,657    36,327,967     27,297,444 
   ----------------------------  ------  -------------  ------------  ------------- 
 
    The notes to the unaudited financial statements form part of these 
     Half-Year Financial Statements. 
 
 
  Notes to the Unaudited Condensed Financial Statements 
 
   1.    Company 
         information 
 
         The Income and Growth VCT plc is a public limited company incorporated 
          in England, registration number 04069483. 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 October 2019) issued by the Association of Investment Companies 
          ("AIC"). 
 
         The Half-Year Report has not been audited, nor has it been reviewed 
          by the auditor pursuant to the Financial Reporting Council's 
          (FRC) guidance on Review of Interim Financial Information. 
 
   3.    Principal accounting policies 
         The accounting policies have been applied consistently throughout 
          the period. Full details of principal accounting policies will 
          be disclosed in the Annual Report, while the policy in respect 
          of investments is included within an outlined box at the top 
          of Note 9 on investments. 
 
   4.    Income 
 
                                   Six months      Six months         Year ended 
                                        ended           ended 
                                31 March 2021   31 March 2020       30 September 
                                                                            2020 
                                  (unaudited)     (unaudited)          (audited) 
                                        Total           Total              Total 
                                          GBP             GBP                GBP 
         Income 
    - Dividends                       588,183         351,220            837,168 
    - Money market 
     funds                              2,569          83,823            112,575 
    - Loan stock 
     interest                         715,528       1,851,961          2,625,570 
    - Bank deposit 
     interest                          16,063          24,570             43,410 
    - Interest on 
     preference share 
     dividend arrears                       -             280             38,987 
    - Other income                      5,789               -              3,127 
 
    Total Income                    1,328,132       2,311,854          3,660,837 
                             ================  ==============  ================= 
 
 
   5.    Investment Adviser's fees and 
          performance fees 
 
                                   Six months      Six months         Year ended 
                                        ended           ended 
                                31 March 2021   31 March 2020       30 September 
                                                                            2020 
                                  (unaudited)     (unaudited)          (audited) 
                                        Total           Total              Total 
                                          GBP             GBP                GBP 
 
    Allocated to 
     revenue 
     return: 
     Investment 
     Adviser's fees                   223,439         236,541            458,619 
    Allocated to 
     capital 
     return: 
     Investment 
     Adviser's fees                   670,315         709,625          1,375,856 
         Investment                   742,900               -                  - 
         Adviser's 
         performance fees 
 
    Total                           1,636,654         946,166          1,834,475 
   -------------------  ---  ----------------  --------------  ----------------- 
 
    Investment 
     Adviser's 
     fee                              893,754         946,166          1,834,475 
         Investment                   742,900               -                  - 
         Adviser's 
         performance fees 
 
    Total                           1,636,654         946,166          1,834,475 
   -------------------  ---  ----------------  --------------  ----------------- 
 
 
    The Directors have charged 75% of the fees payable under the 
     Investment Adviser's agreement, and 100% of the amounts payable 
     under the Incentive Agreement, 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 revised incentive fee agreement was signed 
     between the Board, on behalf of the Company, and Mobeus, with 
     effect from 1 October 2013, to amend and replace the previous 
     agreement. The previous agreement remained in force, but only 
     with the former adviser, Foresight Group LLP ("Foresight"). Mobeus 
     waived their right to their portion of the fee under the previous 
     agreement. This agreement expired on 10 March 2019. 
    Any payment under the revised 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, 
     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 revised incentive 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 included any fee payable to Foresight under the old 
     agreement, although any such payment to Foresight was not capped, 
     but that agreement expired on 10 March 2019. 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 2021, the Target Return will 
     be 179.83 pence per share (being a 6% uplift on the Target Return 
     at the previous year-end of 169.65 pence per share). As at 31 
     March 2021, the Cumulative Total NAV return is 186.34 pence per 
     share, so the Target Return for the 2021 financial year has currently 
     been met and a fee of GBP742,900 has been accrued. This fee is 
     payable subject to the cumulative Target NAV return continuing 
     to exceed the Target Return at the year-end and the approval 
     of the Company's Annual Report by shareholders at the AGM. 
 
    Between 1 April 2020 and 31 March 2021, the Investment Adviser's 
     fee upon the net assets raised under the 2019/20 Offer for Subscription 
     from the use of the over-allotment facility of GBP5 million was 
     reduced to 1.4% from 2.4%. 
 
    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 
 
 
                                                                              Year 
                                            Six months    Six months         ended 
                                                 ended         ended            30 
                                              31 March      31 March     September 
                                                  2021          2020          2020 
                                           (unaudited)   (unaudited)     (audited) 
                                                 Total         Total         Total 
                                                   GBP           GBP           GBP 
             Total earnings 
     i)       after taxation:               29,133,796   (7,106,917)    11,146,314 
                  Basic and diluted 
                   earnings per share            24.60                        9.94 
                   (Note a)                          p       (6.53)p             p 
 
                  Revenue earnings from 
          ii)      ordinary activities 
      after taxation                           829,212     1,528,268     2,324,789 
                  Basic and diluted 
                   revenue earnings 
                   per share (Note                0.70                        2.07 
                   b)                                p        1.40 p             p 
 
      Net investment 
       portfolio 
       gains/(losses)                       29,661,261   (8,201,658)     9,848,433 
      Capitalised Investment 
       Adviser fees and 
       performance fees 
       less taxation                       (1,356,677)     (433,527)   (1,026,908) 
     -----------------------              ------------  ------------  ------------ 
             Total capital 
     iii)     return                        28,304,584   (8,635,185)     8,821,525 
                  Basic and diluted 
                   capital earnings 
                   per share (Note               23.90                        7.87 
                   c)                                p       (7.93)p             p 
 
                  Weighted average 
          iv)      number of shares 
      in issue in the 
       period (Note d)                     118,453,326   108,874,052   112,120,361 
 
          Notes: 
 
          a)      Basic earnings per share is total earnings after taxation 
                   divided by the weighted average number of shares in issue. 
 
          b)      Basic revenue earnings per share is the revenue return after 
                   taxation divided by the weighted average number of shares 
                   in issue. 
 
          c)      Basic capital earnings per share is the total capital return 
                   after taxation divided by the weighted average number of 
                   shares in issue. 
 
                  There are no instruments that will increase the number of 
                   shares in issue in the future. Accordingly, the above figures 
                   currently represent both basic and diluted earnings per 
          d)       share. 
 
    8.            Dividends 
                                                                                        Six 
                                                                                     months    Six months 
                                                                                      ended         ended   Year ended 
                                                                                         31                         30 
                                                                                      March      31 March    September 
                                                                                       2021          2020         2020 
                                                                                (unaudited)   (unaudited)    (audited) 
                                               For the 
                                                  year 
                                                 ended 
                                                    30         Pence          Date 
                  Dividend       Type        September     per share          paid      GBP           GBP          GBP 
                                                                        18 October 
      Interim             Income                  2019         0.50p          2019        -       519,137      519,137 
                                                                        18 October 
      Interim             Capital                 2019         4.00p          2019        -     4,153,095    4,153,095 
                                                                           10 July 
      Interim             Income                  2020         1.50p          2020        -             -    1,725,492 
                                                                           10 July 
      Interim             Capital                 2020         1.50p          2020        -             -    1,725,492 
                                                                                28 
                                                                         September 
      Interim             Income                  2020         0.25p          2020        -             -      289,331 
                                                                                28 
                                                                         September 
      Interim             Capital                 2020         6.00p          2020        -             -    6,943,954 
                                                                                28 
                                                                         September 
      Interim            Capital*                 2020         4.75p          2020        -             -    5,497,299 
                                                                                          -     4,672,232   20,853,800 
                                                                                    -------  ------------  ----------- 
      * - This dividend was paid out 
       of the Company's Special distributable 
       reserve. 
 
      The Board has declared an interim dividend in respect of 
       the year ending 30 September 2021 of 5.00 pence per share 
       to be paid to Shareholders on 23 July 2021. 
 
 
      For the year ended 30 September 2020, GBP20,853,800 disclosed 
       above differs to that shown in the Statement of Cash Flows 
       of GBP18,153,151 due to GBP2,700,649 of new shares allotted 
       subject to listing under 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 
           2018 (as updated by Special Valuation guidance issued in March 
           2020). 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. 
 
          Purchases and sales of unlisted investments are recognised when 
           the contract for acquisition or sale becomes unconditional. 
           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. Where the terms of a disposal state that consideration 
           may be received at some future date and, subject to the conditionality 
           and materiality of the amount of deferred consideration, an 
           estimate of the fair value discounted for the time value of 
           money may be recognised through the Income Statement. In other 
           cases, the proceeds will only be recognised once the right to 
           receive payment is established and there is no reasonable doubt 
           that payment will be received. 
 
          Unquoted investments are stated at fair value by the Directors 
           at each measurement date in accordance with appropriate valuation 
           techniques, which are consistent with the IPEV guidelines:- 
 
          (i) Each investment is considered as a whole on a 'unit of account' 
           basis, i.e. that the value of each portfolio company is considered 
           as a whole, alongside consideration of:- 
 
                    The price of new or follow on investments made, if deemed 
                     to be made as part of an orderly transaction, are considered 
                     to be at fair value at the date of the transaction. The 
                     inputs that derived the investment price are calibrated 
                     within individual valuation models and at every subsequent 
                     quarterly measurement date, are reconsidered for any changes 
                     in light of more recent events or changes in the market 
                     performance of the investee company. The valuation bases 
                     used are the following: 
 
          a) a multiple basis. The enterprise value of the investment 
           may be determined by applying a suitable price-earnings ratio, 
           revenue or gross profit multiple to that company's historic, 
           current or forecast post-tax earnings before interest, depreciation 
           and amortisation, or revenue, or gross profit (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, scale 
           and liquidity). 
          or:- 
 
          b) where a company's underperformance against plan indicates 
           a diminution in the value of the investment, provision against 
           the price of a new investment is made, as appropriate. 
          (ii) Premiums, to the extent that they are considered capital 
           in nature, and that they 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. 
 
          (iii) Where a multiple or the price of recent investment less 
           impairment basis is not appropriate and overriding factors apply, 
           a discounted cash flow, net asset valuation, realisation proceeds, 
           or a weighted average of these 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 figures are shown net of any applicable transaction 
           costs incurred by the Company. 
 
          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 the 
           price of recent investment, 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. 
 
          The methods of fair value measurement are classified into 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. 
 
 
                                                                        Unquoted     Unquoted 
                                                          Traded        ordinary   preference        Unquoted          Total 
                                                                                                         loan 
                                                          on AIM          shares       shares           stock 
                                                           Level           Level        Level           Level 
                                                               1               3            3               3 
                                                             GBP             GBP          GBP             GBP            GBP 
         --------  -------------   ---------------  ------------  --------------  -----------  --------------  ------------- 
    Valuation at 1 October 
     2020                                              2,352,478      34,894,706    1,168,593      12,445,356     50,861,133 
 
    Purchases at 
     cost                                                377,486       2,071,359            -       1,968,670      4,417,515 
    Sales - proceeds 
     (Note a)                                        (2,236,021)     (3,888,490)        (360)     (4,094,615)   (10,219,486) 
    - net realised 
     gains/(losses)                                      999,759       1,953,582      (3,491)         637,985      3,587,835 
    Reclassification 
     at valuation 
     (Note b)                                          5,946,354     (5,946,354)            -               -              - 
    Net unrealised gains 
     on investments                                   13,081,535      11,202,941      184,708       1,604,242     26,073,426 
 
 
    Valuation at 
     31 March 2021                                    20,521,591      40,287,744    1,349,450      12,561,638     74,720,423 
 
 
    Book cost at 
     31 March 2021                                     1,993,170      29,361,816    1,240,546      16,111,053     48,706,585 
    Unrealised 
     gains/(losses) 
     at 31 March 2021                                 19,028,421      15,895,539      109,205     (3,462,228)     31,570,937 
    Permanent impairment 
     of investments                                    (500,000)     (4,969,611)        (301)        (87,187)    (5,557,099) 
 
 
    Valuation at 
     31 March 2021                                    20,521,591      40,287,744    1,349,450      12,561,638     74,720,423 
   -----------------------  -----  ---------------  ------------  --------------  -----------  --------------  ------------- 
 
          Gains/(losses) on investments 
 
    Realised gains based on 
     historical cost                                   1,736,725       3,152,590            -          63,351      4,952,666 
    Less amounts recognised 
     as unrealised gains/(losses) 
     in previous years                                 (736,966)     (1,199,008)      (3,491)         574,634    (1,364,831) 
   -----------------------------------------------  ------------  --------------  -----------  --------------  ------------- 
 
    Net realised gains/(losses) 
     based on carrying value 
     at 30 September 2020                                999,759       1,953,582      (3,491)         637,985      3,587,835 
    Net movement in unrealised 
     gains in the period                              13,081,535      11,202,941      184,708       1,604,242     26,073,426 
 
    Net investment portfolio 
     gains for the period ended 
     31 March 2021                                    14,081,294      13,156,523      181,217       2,242,227     29,661,261 
   ===============================================  ============  ==============  ===========  ==============  ============= 
 
          Notes: 
          a): The sale proceeds shown above of GBP10,219,486 is GBP3,503,617 
           more than that shown on the Condensed Statement of Cash Flows 
           of GBP6,715,869 due to further proceeds receivable in respect 
           of Vectair as well as proceeds receivable from the part realisations 
           of MPB and Parsley Box. These amounts are recognised as debtors 
           at 31 March 2021. 
 
          b): The Company's equity investments in Virgin Wines and Parsley 
           Box were admitted to AIM during the period. The amount transferred 
           from Level 3 to Level 1 of GBP5,946,354 reflects the combined 
           equity value held at the start of the period. 
 
 
          Level 3 unquoted equity and loan investments 
           are valued in accordance with IPEV guidelines 
           as follows: 
 
                                             As at                         As at                        As at 
                                          31 March                      31 March                 30 September 
                                              2021                          2020                         2020 
                                       (unaudited)                   (unaudited)                    (audited) 
                    Valuation 
                     methodology               GBP                           GBP                          GBP 
 
     Multiple of 
      earnings, 
      revenues 
      or gross 
      margin, 
      as 
      appropriate                       52,346,068                    35,136,619                   47,240,479 
                    Recent 
                    investment 
                    price                1,445,435                             -                            - 
     Net asset 
      value                                341,550                     1,063,667                    1,189,116 
     Estimated 
      realisation 
      proceeds                              65,779                        13,281                       79,060 
 
                                        54,198,832                    36,213,567                   48,508,655 
 
   10.    Current asset investments and Cash at bank 
 
                                             As at                         As at                        As at 
                                          31 March                      31 March                 30 September 
                                              2021                          2020                         2020 
                                       (unaudited)                   (unaudited)                    (audited) 
                                               GBP                           GBP                          GBP 
     OEIC Money 
      market funds                      29,802,657                    36,327,967                   27,297,444 
     Cash 
      equivalents 
      per 
      Statement 
      of Cash 
      Flows                             29,802,657                    36,327,967                   27,297,444 
     Bank deposits 
      that mature 
      after three 
      months                             3,151,769                     3,151,769                    3,151,769 
                                   ---------------                --------------               -------------- 
     Current asset 
      investments                       32,954,426                    39,479,736                   30,449,213 
                                   ---------------                --------------               -------------- 
     Cash at 
      bank                               1,378,815                     1,406,450                    1,739,602 
                                   ---------------                --------------               -------------- 
 
 
   11.    Net asset value 
           per share                         As at                         As at                        As at 
                                          31 March                      31 March                 30 September 
                                              2021                          2020                         2020 
                                       (unaudited)                   (unaudited)                    (audited) 
 
          Net 
           assets                   GBP111,947,842                 GBP78,775,672                GBP83,133,430 
    Number of shares 
     in issue                          118,200,511                   115,068,452                  118,661,711 
    Net asset value 
     per share - basic 
     and diluted                            94.71p                        68.46p                       70.06p 
 
 
   12.    Post balance sheet events 
    On 16 April 2021 and 18 May 2021, follow-on investments of GBP0.15 
     million and GBP0.10 million respectively were made into Caledonian 
     Leisure Limited, an existing portfolio company. 
 
     On 1 April 2021, a loan repayment of GBP0.32 million was received 
     from Vian Marketing Limited (trading as Red Paddle Co). 
 
     On 26 May 2021, a follow-on investment of GBP0.39 was made into 
     Bella & Duke Limited, an existing portfolio company. 
 
     On 28 May 2021, a loan repayment of GBP0.46 million was received 
     from MPB Group Limited. 
 
   13.    Statutory Information 
    The financial information for the six months ended 31 March 
     2021 and the six months ended 31 March 2020 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 2020 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 report are being sent to all Shareholders who 
     elected to receive a paper copy otherwise Shareholders are being 
     notified that a copy is available on the Company's website. 
     Further copies are available free of charge from the Company's 
     registered office, 30 Haymarket, London, SW1Y 4EX, or can be 
     downloaded via the Company's website at www.incomeandgrowthvct.co.uk. 
 

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