Interim Management Statement

RNS Number : 4643E

Income & Growth VCT (the) PLC

10 February 2015

 



The Income & Growth VCT plc ("the Company")

INTERIM MANAGEMENT STATEMENT

For the quarter ended 31 December 2014

From November 2014, listed companies are no longer required to announce interim management statements to shareholders.  Notwithstanding this change, the Board has decided to continue providing such information so that shareholders are updated on the Company's progress on a quarterly basis.   Accordingly, the Company presents an Interim Management Statement for the quarter ended 31 December 2014.   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 December 2014		At 30 September 2014
Net assets attributable to shareholders	£ 67,109,487	£69,306,405
Shares in issue	61,095,551	60,476,940
Net asset value (NAV) per share	109.84 p	114.60 p
Net cumulative dividends paid per share	58.50 p	50.50 p
Cumulative total return per share (NAV basis) since launch	168.34 p	165.10 p

The fall in NAV per share of 4.76 pence is due to the payment of an interim dividend of 8.00 pence per share, detailed below.   Cumulative total return per share (NAV basis) has risen in the quarter, principally due to a number of investment disposals generating proceeds greater than their previously reported carrying values, and a rise in the unrealised valuations of investments still held.

CUMULATIVE DIVIDENDS

The Company paid an interim dividend of 8.00 pence per share (comprising 6.00 pence from capital and 2.00 pence from income) for the year ended 30 September 2014 on 30 October 2014, bringing cumulative dividends paid per share to date to 58.50 pence.

INVESTMENTS

In December 2014, the Company invested a total of £2.26 million to support the corporate restructuring of two companies in the Ward Thomas Group, a brand-led specialist logistics, storage and removals business.

Also in December 2014, the Company completed a further investment into ASL Technology, a printer and photocopier services business, of £0.95 million,  to provide capital to repay all bank borrowings and support the company's buy and build strategy.

Following the period end, in January 2015, the Company invested a further £1.54 million in the acquisition vehicle South West Services Investment Limited ("SWSIL"), adding to its earlier investment of £1.34 million.  This enabled SWSIL to acquire Media Business Insight Limited ("MBIL"). The Company has also advanced a non-qualifying loan of £0.78 million to MBIL.   MBIL is a publishing and events business focused on the creative production industries, specifically advertising, TV production and film media. 

Also after the period-end, the Company invested a further £0.07 million into Racoon International, a supplier of hair extensions and hair care products and training, to support the financial restructuring of that company.

DIVESTMENTS

In the quarter to 31 December 2014, the Company realised its investments in Focus Pharma, Youngman and EMaC for total net cash proceeds of £7.61 million.  In October, Focus Pharma was sold to CinVen-backed Amdipharm Mercury Group for net cash proceeds of £1.05 million.   Total cash proceeds received to date since the original investment in October 2007 were £1.98 million, representing 3.83 times original cost of £0.5 million.  Further contingent consideration of up to £0.4 million may be received over the next three years.

Also in October, Youngman was sold to Werner Co in the US for net cash proceeds of £1.66 million on completion.  Total cash proceeds received since the original investment in October 2005 have been £2.46 million, representing 2.46 times original cost of £1.00 million.

EMaC was sold to Innovation Group plc in December 2014 for net cash proceeds totalling £4.90 million.  Total cash proceeds received to date since the original investment in November 2011 are £5.78 million, representing 3.08 times original cost of £1.88 million.

LOAN STOCK REPAYMENTS

A total of £0.62 million has been received in loan stock repayments during the quarter to 31 December 2014, including payments from CB Imports (Country Baskets), Aquasium Technology, Fullfield (Motorclean) and Tessella.

A further £0.11 million was received from Fullfield (Motorclean) following the period-end.

DIVIDENDS

A final capital dividend of 4.00 pence per share for the year ended 30 September 2014 has been proposed for consideration by shareholders at the Annual General Meeting of the Company to be held on 12 February 2015.  If approved, this dividend will be paid on 20 March 2015 to shareholders on the register on 27 February 2015.  The final dividend will bring dividends paid in respect of the year ended 30 September 2014 to 18.00 pence per share and cumulative dividends paid to date to 62.50 pence per share.

SHARE BUY-BACKS

The Company bought back 33,800 of its own shares on 18 December 2014 at a price of 96.00 pence per share.

MOBEUS VCTs' JOINT OFFER FOR SUBSCRIPTION

Together with Mobeus Income & Growth VCT plc, Mobeus Income & Growth 2 VCT plc and Mobeus Income & Growth 4 VCT plc (closed on 4 February 2015 having been fully subscribed), the Company is participating in the current Mobeus VCTs' Offers for Subscription launched on 10 December 2014 to raise up to £39 million across the four VCTs including £10 million for the Company ("the Offer").

The Offers will remain open until 12.00 noon on 2 April 2015 unless fully subscribed before that date.

Applications totalling £28.83 million have been received under the four Offers to date, £8.37 million of which are in respect of this Company's Offer, representing 83.7% of its target amount.

ISSUE OF EQUITY

On 14 January 2015, the Company allotted 4,382,979 ordinary shares under the Offer at prices ranging between 106.60 and 112.26 pence per share in accordance with the allotment formula set out in the prospectus for the Offer.  The allotment raised net funds of £4.6 million for the Company.

For further information, please contact:

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

 

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