Mobeus Income & Growth 4 VCT PLC 1st Quarter Results (7238O)

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RNS Number : 7238O

Mobeus Income & Growth 4 VCT PLC

02 June 2020

Mobeus Income & Growth 4 VCT plc ("the Company")

INTERIM MANAGEMENT STATEMENT

For the quarter ended 31 March 2020

Mobeus Income & Growth 4 VCT plc presents an Interim Management Statement for the quarter ended 31 March 2020. The statement also includes relevant financial information between the end of the period and the date of this statement.

NET ASSET VALUE & CUMULATIVE TOTAL RETURN PER SHARE

 
                                                  At 31 March 2020     At 31 December 
                                                                                 2019 
                                                       (unaudited)          (audited) 
                        Net assets attributable   GBP51.76 million   GBP50.04 million 
                                to shareholders 
                                Shares in issue         81,767,085         66,799,129 
                      Net asset value (NAV) per        63.30 pence        74.90 pence 
                                          share 
                      Cumulative dividends paid       128.20 pence       124.20 pence 
                        Cumulative Total return       191.50 pence       199.10 pence 
                        (net asset value basis) 
                      per share since inception 
 

The fall in the NAV per share of 11.60 pence over the quarter was due principally to two factors. Firstly a further interim dividend for the 2019 financial year of 4.00 pence per share was paid on 10 January 2020 (detailed under Dividends below); secondly, despite the positive impact upon the NAV per share from the sale of Turner TopCo Limited on 13 February 2020 (detailed under Realisations below), the Company's portfolio valuations at 31 March 2020 have been reduced in response to the economic disruption and market conditions resulting from the outbreak of the COVID-19 Global Pandemic. This resulted in a net fall from portfolio movements for the quarter of 7.60 pence in NAV per share.

On 26 March 2020, due to the COVID-19 Global Pandemic, the Company had issued an unaudited NAV of 64.16 pence per share as at 24 March 2020, which figure formed the basis of the offer price at which shares were allotted to investors on 2 April 2020.

DIVIDENDS

On 10 January 2020, an Interim dividend of 4.00 pence per ordinary share in respect of the year ended 31 December 2019 was paid to all Shareholders whose names were on the Register on 27 December 2019.

After the period end, on 7 May 2020, an Interim dividend of 6.00 pence per ordinary share in respect of the year ending 31 December 2020 was paid to all Shareholders whose names were on the Register on 14 April 2020. Payment of this dividend has reduced the NAV per share at 31 March 2020 of 63.30 pence to 57.30 pence and increased cumulative dividends paid to 134.20 pence per share.

Dividend Investment Scheme

After the period end, on 16 April 2020, the Board announced that it had decided to recommence the Company's Dividend Investment Scheme which had previously been suspended, effective from the conclusion of the AGM held on 2 June 2020. It will apply to all dividends in future. Details of the Scheme are contained in the Dividends section of the Company's website at www.mig4vct.co.uk.

FUNDRAISING

On 8 January 2020, the Company carried out its first allotment in respect of its offer for subscription launched on 25 October 2019, allotting 14,967,956 ordinary shares, at an average effective offer price of 71.27 pence per share. This allotment generated net funds of GBP10.30 million due to the Company.

Shortly after the period end, on 2 April 2020, the Company carried out its second and final allotment of shares under this offer, allotting 3,482,579 ordinary shares at an average effective offer price of 66.96 pence per share. This allotment generated net funds of GBP2.23 million due to the Company.

Following the second of these two allotments, the Company's offer was formally closed having been fully subscribed (including its over-allotment facility), raising net funds totalling GBP12.53 million.

REALISATIONS

On 7 February 2020, the Company realised its investment in Pattern Analytics Limited (trading as Biosite), a provider of workforce management and security services, generating proceeds of GBP1.98 million in the period. The Company received GBP2.07 million in cash over the life of the investment and generated a return on original cost of 1.5x and an IRR of 21.0% in the three years that the investment was held.

On 13 February 2020, the Company realised its investment in Turner Topco Limited (trading as Auction Technology Group), an online auction marketplace platform, generating proceeds of GBP5.27 million in the period, including GBP1.09 million of loan interest which was due upon completion. Over the 11 1/2 year life of the investment, total proceeds of GBP9.03 million have been received, achieving an overall multiple over cost of 4.5x and an IRR of 28.9%.

After the period end, on 30 April 2020, the Company realised half of its investment in Omega Diagnostics Group plc, a provider of in-vitro diagnostics for food intolerance, autoimmune diseases and infectious diseases, generating proceeds of GBP0.46 million and a profit of GBP0.36 million.

NEW & FURTHER INVESTMENTS

On 28 February 2020, the Company invested GBP0.62 million into Bella & Duke Limited, a premium frozen raw dog food provider.

After the period end, on 5 May 2020, the Company invested a further GBP0.44 million into existing portfolio company, Rota Geek Limited, a workforce management software provider.

Also after the period end, on 26 May, the Company invested a further GBP0.72 million into existing portfolio company, MyTutor, a digital marketplace for school tutoring.

SHARE BUYBACKS

On 20 April 2020, the Company repurchased 643,695 of its own ordinary shares at a price of 55.25 pence per share for cancellation.

Following this share buyback and cancellation there are now 84,605,969 ordinary shares of 1 penny each in issue.

Please note that all of the above information is unaudited.

Other than as described above, there were no material events during the period and to the date of this announcement.

For further information, please contact :

Mobeus Equity Partners LLP, Company Secretary: 020 7024 7600.

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June 02, 2020 11:00 ET (15:00 GMT)