Interim Management Statement
Matrix Income & Growth VCT plc (the Company)
INTERIM MANAGEMENT STATEMENT
For the quarter ended 31 March 2011
In accordance with Rule 4.3 of the Disclosure and Transparency Rules of the UK
Listing Authority, Matrix Income & Growth VCT plc presents an Interim
Management Statement for the quarter ended 31 March 2011. The statement also
includes relevant financial information between the end of the period and the
date of this statement.
NET ASSET VALUE AND TOTAL RETURN PER SHARE
At 31 March 2011 At 31 December 2010
Net assets attributable to £40,200,289 £38,450,907
shareholders
Shares in issue 42,292,627 39,779,546
Net asset value per Ordinary 95.05 p 96.66 p
Share
Cumulative dividends paid 21.30 p 21.30 p
Total return (net asset value 116.35 p 117.96 p
basis) per share since inception
% return on opening net asset 23.12% 24.83%
value per share of 94.5 pence
The net asset value per share has fallen by 1.61 pence over the quarter. This
is primarily due to a reduction in the valuation of one of the investments in
the portfolio which is exposed to volatility in revenues, and is progressing
much more slowly than previously anticipated. Other companies in the portfolio
have continued to trade satisfactorily.
CUMULATIVE DIVIDENDS
A final dividend of 5.0 pence per share comprising 0.5 pence from income and
4.5 pence from capital in respect of the year ended 31 December 2010 was
approved by shareholders at the Annual General Meeting of the Company held
today, 4 May 2011. The dividend will be payable on 27 May 2011 to Shareholders
who are on the Register on 13 May 2011. This dividend, once paid, will increase
cumulative dividends paid since inception to 26.3 pence per share.
This dividend will have no impact on the total return (net asset value basis)
per share shown above.
NEW INVESTMENTS
In March 2011, the VCT invested a further £622,466 into ASL Technology Holdings
Limited to help fund the acquisition of Transcribe Copier Systems Limited (of
which £562,685 will be held in escrow until June 2011 pending finalisation of
the second tranche of this additional investment).
DEMERGER of INVESTEE COMPANY
Just before the end of the period in March 2011, VSI Limited ("VSI") completed
the demerger of its two operating subsidiary companies, creating two separate
investee companies for the VCT, called MachineWorks Software Limited
("MachineWorks") and LightWorks Software Limited. The original VSI loan, which
was transferred to MachineWorks on the demerger, was repaid by this company
shortly after the period-end. Following this repayment, the VCT now has two
separate equity investments in each of these companies with an investment cost
of £44,489 each.
DIVESTMENTS
In January 2011, the VCT realised its entire investment in Campden Media
Limited for a cash consideration of £836,294, representing 85.8% of the total
investment cost of £975,000. Together with interest paid over the life of the
investment the total cash return was £1,016,150, representing 104.2% of cost.
In February, Iglu.com Holidays Limited repaid its loan stock in full, realising
£1,205,180 together with a premium of £213,262 for the Company and in March
Vectair Holdings Limited repaid its loan in full realising £421,728 together
with a premium of £84,346 for the Company.
Just after the period-end in April 2011, MachineWorks (formerly part of VSI)
made a payment of £556,108 in full settlement of its loan.
SHARE BUY-BACKS
The Company bought back 952,478 of its own Ordinary Shares at an average price
of 85.01 pence during the quarter ended 31 March 2011 and has bought-back
452,608 of its own shares at a price of 86.78 pence since the end of the
quarter.
MATRIX VCTs' JOINT OFFER FOR SUBSCRIPTION
During the quarter ended 31 March 2011, the Company issued and allotted a total
of 3,465,559 ordinary shares at prices of 98.0 and 102.3 pence per share,
raising net proceeds of £3,275,591.
Since the quarter end the Company has allotted a further 1,512,600 ordinary
shares at a price of 102.3 pence per share, raising further net proceeds of £
1,463,708.
The Offer remains open until 30 June 2011.
For further information, please contact:
Sarah Penfold, for Matrix Private Equity Partners LLP, Company Secretary: 020
3206 7000.