Half Yearly Report

RNS Number : 4740X

Maven Income & Growth VCT 4 PLC

28 August 2015

 

Maven Income and Growth VCT 4 PLC

Interim Results for the Six Months Ended 30 June 2015 (Unaudited)

The Directors announce the unaudited interim results for the six months ended 30 June 2015.

Highlights

·    NAV total return of 135.55p per share at 30 June 2015, an increase of 3.3% from 131.25p at 31 December 2014

·    NAV at period end of 98.63p per share after payment of the final dividend of 2.90p per share

·    Three new investments added to the portfolio

·    Realisation of Steminic for a total return of 3.3 times cost

·    Disposal of Higher Nature, generating cash proceeds of £300,000

·    Agreement reached for the sale of Six Degrees Group

·    Increased interim dividend declared of 2.20p per share (2014: 2.10p)

Interim Review

Overview

The continuing objective for your Company is to achieve long term capital appreciation and generate maintainable levels of income for Shareholders, by investing in a diversified portfolio of mature private businesses and AIM/ISDX quoted companies with established revenue streams and strong growth potential. During the six month period to 30 June 2015, this strategy has delivered a further increase in NAV total return, to 135.55p per share.

During the reporting period the Maven team has continued to source suitable investment opportunities in profitable businesses across the UK and the asset base now includes 49 private companies, the majority of which are trading in line with plan and paying a regular yield. This revenue is an important component in your Company's ability to sustain an attractive level of tax-free distributions to Shareholders and, consequently, your Board is pleased to declare an increased interim dividend of 2.20p per share at the half-year.

In June 2015, Maven was named as Private Equity House of the Year at the 2015 M&A Awards, one of the leading events in the corporate finance calendar. This category recognises private equity managers that have displayed the keenest judgement and opportunism in completing acquisitions or exit transactions during the year, including an acknowledgement of their contribution in increasing the value of investee businesses.

Maven has also been recognised in two categories at the 2015 Investor Allstars Awards, having been shortlisted for Private Investor Network of the Year while one of its clients has been nominated for VCT of the Year. Investor Allstars, now in its thirteenth year, is one of the leading events in the European entrepreneurial and investment community, aiming to celebrate success across the SME investment space.

Dividends

The Board has declared an increased interim dividend of 2.20p per share, comprising 1.00p of revenue and 1.20p of capital, to be paid on 25 September 2015 to Shareholders on the Register at 28 August 2015. Since the Company's launch, and after receipt of the interim dividend, Ordinary Shareholders will have received 39.15p per share in tax-free dividends. The effect of paying the dividend will be to reduce the NAV of the Company by the total cost of the distribution.

Portfolio Developments

The private equity portfolio has generally performed well, and strong trading results have led to valuation uplifts for a number of companies operating in a range of sectors.

SPS (EU), the UK's largest provider of promotional merchandise, has experienced excellent growth under private ownership since Maven clients supported the management buy-out in February 2014. In June 2015 SPS completed the self-funded complementary acquisition of High Profile, a manufacturer of bespoke products, increasing the product range and production capability of the business.

Westway Services Holdings (2014), a provider of technical facility services, has a proven track record of delivering a reliable and quality service to its clients across a broad range of planned and reactive maintenance projects. The business enjoys a longstanding relationship with M&S and, in light of recent contract wins, the directors expect revenues in the current financial year to exceed £55 million, compared to £39 million in the prior year.

Maven clients first invested in Just Trays (JT), the UK's leading manufacturer of shower trays and related accessories, in June 2014 and subsequently the business has increased its customer base and extended its product range. The JT brand has received a number of industry awards, including being recognised as 'Shower Brand of the Year' at the inaugural Bathroom & Kitchen Update awards in July 2015.

A follow-on investment was made in May 2015 to enable Claven Holdings to complete the complementary acquisition of Debt Management Services in a transaction that has created the largest provider of field support services in the UK. The group now has a network of 250 field agents who undertake personal customer visits, using a state-of-the-art case management system, and enables lenders to engage directly with customers to resolve payment arrears.

In light of an improvement in trading and the agreement on a sale of the business, which completed after the period end, the Directors have considered it appropriate to increase the valuation of the holding in Lab M Holdings.  However, your Board has also taken the prudent step to reduce the valuation in respect of D Mack in light of its current trading circumstances.

New Investments

During the period, alongside the provision of funding to support the development of two existing portfolio assets, your Company participated in two new investments in established private companies:

•    Flow UK Holdings, a specialist IT security business based in Hertfordshire that provides flexible networking security solutions to customers throughout the UK and Ireland. The business aims to grow organically by increasing its sales team and to add scale through a buy & build strategy; and

•    Traceall Global, a data management solutions provider located near Glasgow that delivers a range of tracking, verification and remote sensor monitoring products for the international food and beverage industry.

One listed investment was added to the portfolio when, in January 2015, your Company participated in the AIM placing of Ideagen, an information management software company. The funds raised enabled Ideagen to complete the acquisition of Gael, which has strengthened and broadened the product offering whilst adding a number of key new customers.

The following investments have been completed during the period:

		Investment Cost
Investment	Date	Sector	£'000	Website
Unlisted
Claven Holdings Limited	May 2015	Speciality & other finance	82	No website available
Flow UK Holdings Limited	March 2015	Software & computer services	598	www.flowcommunications.co.uk
Maven Capital (Llandudno) LLP	January 2015	Real estate	59	No website available
Traceall Global Limited	March 2015	Software & computer services	197	www.traceallglobal.com
Total unlisted investment			936
Quoted
Ideagen PLC	January 2015	Software & computer services	207	www.ideagenplc.com
Total quoted investment			207
UK treasury bills
Treasury Bill 18 May 2015	April 2015	UK government	2,749
Treasury Bill 29 June 2015	April 2015	UK government	1,159
Treasury Bill 20 July 2015	March 2015	UK government	1,798
Treasury Bill 14 September 2015	June 2015	UK government	1,748
Total UK treasury bills investment			7,454
Total investment			8,597

At the period end, the portfolio stood at 64 unlisted and quoted investments at a total cost of £23.5 million.

Realisations

In June 2015, Steminic (trading as MSIS) was sold to UK private equity house Primary Capital, achieving a 3.3 times total return on cost over the life of the investment. Maven clients first invested in Steminic in 2007 and provided additional funding in subsequent years to facilitate growth, enabling the business to more than double its revenues and increase profitability three fold during the period of investment. In the same month the legacy holding in Higher Nature, acquired through the Company's merger with Ortus VCT PLC, was sold at greater than carrying value.

Also in June, funds affiliated with Boston-based private equity firm Charlesbank Capital Partners entered into an agreement to acquire Six Degrees Group; the exit proceeds, which were received during July 2015, have been reflected in the NAV as at 30 June 2015.

As at the date of this report, the Manager is engaged with several other investee companies and prospective acquirers at various stages of a potential exit process. This realisation activity reflects the increasing maturity of a number of holdings, but it should be noted that there can be no certainty that these discussions will lead to profitable sales

The table below gives details of all realisations during the reporting period:

	Year first invested	Complete/ partial exit	Cost of shares disposed of £'000	Value at 31 December 2014 £'000	Sale proceeds £'000	Realised gain/ (loss) £'000	Gain/ (loss) over December 2014 value £'000
Unlisted
Higher Nature Limited	1999	Complete	600	200	300	(300)	100
Manor Retailing Limited	2013	Complete	218	218	218	-	-
Maven Co-invest Endeavour Limited Partnership (invested in Global Risk Partners)	2013	Partial	26	26	26	-	-
Nenplas Holdings Limited	2013	Partial	165	165	165	-	-
Richfield Engineering Services Limited	2013	Complete	725	725	725	-	-
Search Commerce Limited	2013	Complete	217	217	217	-	-
Steminic Limited¹	2007	Complete	665	898	1,161	496	263
Total unlisted disposals			2,616	2,449	2,812	196	363
Quoted
Angle PLC	2006	Partial	2	3	4	2	1
Ideagen PLC	2015	Partial	1	1	1	-	-
Total quoted disposals			3	4	5	2	1
UK treasury bills
Treasury Bill 16 March 2015	2014	Complete	2,992	2,997	3,000	8	3
Treasury Bill 18 May 2015	2015	Complete	2,749	N/A	2,750	1	N/A
Treasury Bill 29 June 2015	2015	Complete	1,159	N/A	1,160	1	N/A
Total UK treasury bill disposals			6,900	2,997	6,910	10	3
Total disposals			9,519	5,450	9,727	208	367

¹Proceeds exclude yield payments and redemption premiums received, which are disclosed as revenue for financial reporting purposes.

The table above includes the redemption of loan notes by a number of investee companies.

One unlisted investment was struck off the Register during the period, resulting in a realised loss of £404,000 (cost £404,000).  This had no effect on the NAV as a full provision had been made in earlier periods.

Material Developments Since the Period End

Since 30 June 2015 one new private company asset has been added to the portfolio.  In July 2015 an investment was completed in Cursor Controls, a manufacturer of trackball pointing solutions which are utilised in a number of industrial applications. Based in Nottinghamshire, Cursor is widely recognised as a global market leader, with over 1,200 trackball variants in its product portfolio.

In August 2015 the Manager completed the realisation of Lab M Holdings, the dehydrated culture media specialist, with the aggregate proceeds receivable being marginally above the carrying value of the investment as at 30 June 2015.

Principal Risks and Uncertainties

The principal risks and uncertainties facing the Company were set out in full in the Strategic Report contained within the 2014 Annual Report, and are the risks associated with investment in small and medium sized unlisted and AIM/ISDX quoted companies which, by their nature, entail a higher risk and lower liquidity than investments in large quoted companies. The valuation of investee companies may be affected by economic conditions and the credit environment, and other risks include legislation, regulation, adherence to VCT qualifying rules and the effectiveness of the internal controls operated by the Company and the Manager. These risks and procedures are reviewed regularly by the Audit and Risk Committees and reported to your Board. The Board has confirmed that all tests, including the criteria for VCT qualifying status, continue to be met.

Fund Raising

In October 2014 the Company announced that it planned to raise up to £2 million in an Offer for Subscription alongside Offers by four other Maven VCTs. All of the Offers reached their fund raising target ahead of schedule and have now closed. The first allotment under the Offer took place on 20 February 2015, when 1,924,909 new Ordinary Shares were issued, and a further allotment of 149,427 new Ordinary Shares took place on 13 April 2015.

Under existing legislation, the Company may use the money raised under the Offer to pay dividends (subject to meeting the requirements of the return of capital legislation effective from 6 April 2014) and general running costs, thereby preserving for investment purposes an equivalent sum of more valuable 'old money' which operates under more advantageous VCT regulations. The proceeds of the Offers will also provide additional liquidity for the Company to make further investments, and enable it to spread its costs over a larger asset base to the benefit of all Shareholders.

Share Buy-backs

Shareholders have given the Board authority to buy back Shares for cancellation or to be held in treasury, subject always to such transactions being in the best interests of Shareholders. It is intended that, subject to market conditions, available liquidity and the maintenance of the Company's VCT status, Shares will be bought back at prices representing a discount of up to 15% to the prevailing NAV per share. During the period under review 447,000 Shares were bought back at a total cost of £382,000.

VCT Regulatory Developments

The March 2015 Budget announced a package of changes to the VCT scheme, including a new age limit on companies qualifying for investment and a new cap on total EIS/VCT investment that a company can receive. As the limits proposed are higher than those provided for under European Union (EU) requirements, and are therefore subject to State Aid approval, the legislation has not been published in the Finance Bill 2015. A consultation period for comments on the draft legislation closed on 15 May 2015.

On 15 April, HM Revenue & Customs (HMRC) published guidance on how it intends to apply the proposed new EU rule changes to investments made between 6 April 2015 and the date the EU grants State Aid approval, which involves new procedures in particular circumstances where investments exceed the basic EU limits of seven years and €15 million in total.

This, combined with the statements made in the July 2015 Budget, has resulted in a degree of uncertainty as to whether or not specific new investments made after 6 April 2015 will be VCT qualifying, and may restrict the number and range of later-stage small and medium-sized enterprises that are available for your Company to invest in.

Management and Administration Fees

HMRC has confirmed that VAT is no longer payable on performance and secretarial fees. The Manager has pursued the recovery of amounts paid previously and a total of £275,000 received subsequent to the period end has been reflected in the Financial Statements.

Distribution of Annual and Interim Reports

Shareholders are able to elect to receive postal or e-mail notifications that documents, including Annual and Interim Reports, are available on the Company's website as an alternative to receiving hard copies by post. A letter of request was provided with the 2014 Interim Report, which Shareholders could complete to confirm whether or not they wished to take advantage of this facility. In the absence of a letter being returned, a Shareholder will have been deemed as having given their consent to receiving only postal notifications that documents are available on the website. Therefore, Shareholders who have previously made an election for postal notification, or who elected not to respond, will have received notification by post of the publication of this Interim Report on the Company's website. Shareholders who wish notifications to be sent by e-mail rather than by post should advise the Registrar via www.capitashareportal.com. Hard copies of all documents are available on request.

Dividend Investment Scheme

On 20 August 2015 the Board announced that, in light of the investment restrictions proposed in the Government's Summer 2015 Budget, the Directors intended to review the operation of the Company's DIS and reserved the right, under the Terms and Conditions of the Scheme, to suspend or terminate its operation without prior notice and revert to making monetary payments to all Participants. The Board subsequently resolved that, with effect from 24 August 2015, the DIS should be suspended in order to allow the Directors and the Manager to review the final changes to the VCT legislation and to consider the full potential impact of these on the Company's future investment strategy. As a result, the interim dividend payable on 25 September 2015, and all subsequent dividends until further notice, will be paid to Shareholders by either cheque or direct bank transfer using existing mandate instructions.

Outlook

Your Company will maintain its focus on investing principally in established UK businesses, which are each capable of generating a high level of income and offer the potential to achieve capital appreciation on realisation. The Board and the Manager believe that this strategy, which has been employed over a number of years, will continue to deliver steady growth in Shareholder value and support a progressive dividend programme.

On behalf of the Board

Maven Capital Partners UK LLP

Secretary

28 August 2015

Summary of Investment Changes

For the Six Months Ended 30 June 2015

	Valuation		Net investment/	Appreciation/	Valuation
	31 December 2014		(disinvestment)	(depreciation)	30 June 2015
	£'000	%	£'000	£'000	£'000	%
Unlisted investments
Equities	11,028	35.4	(1,284)	1,208	10,952	32.9
Preference shares	3	-	(5)	2	-	-
Loan stock	14,792	47.5	(587)	72	14,277	42.9
	25,823	82.9	(1,876)	1,282	25,229	75.8
AIM/ISDX investments
Equities	457	1.5	202	130	789	2.4
Listed investments
Equities	19	0.1	-	4	23	0.1
UK treasury bills	2,997	9.6	544	7	3,548	10.7
Total investments	29,296	94.1	(1,130)	1,423	29,589	89.0
Other net assets	1,842	5.9	1,811	-	3,653	11.0
Total assets	31,138	100.0	681	1,423	33,242	100.0

Investment Portfolio Summary                             

As at 30 June 2015

	Valuation	Cost	% of total	% of equity	% of equity held by other
Investment	£'000	£'000	assets	held	clients¹
Unlisted
Torridon (Gibraltar) Limited (formerly Torridon Capital Limited)	1,853	682	5.5	3.7	36.3
Maven Co-invest Exodus Limited Partnership and Tosca Penta Exodus Mezzanine Limited Partnership (invested in Six Degrees Group)²	1,645	895	4.9	4.0	8.5
Lab M Holdings Limited	1,260	404	3.8	17.6	-
Glacier Energy Services Holdings Limited	1,141	957	3.4	3.7	23.9
Westway Services Holdings (2014) Limited	1,067	540	3.2	6.9	40.2
Lemac No. 1 Limited (trading as John McGavigan)	987	698	3.0	9.1	27.7
HCS Control Systems Group Limited	957	836	2.9	6.8	29.7
Ensco 969 Limited (trading as DPP)	904	1,217	2.7	4.6	29.9
Nenplas Holdings Limited	875	323	2.6	4.0	28.5
CatTech International Limited	792	498	2.4	4.8	25.3
SPS (EU) Limited	737	647	2.2	6.6	35.9
Lambert Contracts Holdings Limited	723	723	2.2	12.3	52.4
JT Holdings (UK) Limited (trading as Just Trays)	686	522	2.1	5.8	24.2
Venmar Limited (trading as XPD8 Solutions)	651	651	2.0	6.0	29.0
R&M Engineering Group Limited	648	648	1.9	8.7	61.9
Crawford Scientific Holdings Limited	612	612	1.8	7.2	41.0
Assecurare Limited	600	600	1.8	12.0	37.8
Braelaw Limited	600	600	1.8	12.0	37.8
Broadwave Engineering Limited	600	600	1.8	12.0	37.8
Flow UK Holdings Limited	598	598	1.8	15.5	56.3
Vodat Communications Group Limited	592	592	1.8	6.9	34.9
Maven Capital (Llandudno) LLP	575	575	1.7	-	100.0
Fathom Systems Group Limited	573	573	1.7	7.7	52.3
CB Technology Group Limited	559	559	1.7	11.4	67.6
TC Communications Holdings Limited	554	777	1.7	8.1	21.9
Flexlife Group Limited	482	482	1.4	1.9	12.7
RMEC Group Limited	463	463	1.4	3.5	54.7
Maven Capital (Claremont House) Limited	426	355	1.3	11.8	88.2
ISN Solutions Group Limited	403	403	1.2	4.6	50.4
LCL Hose Limited (trading as Dantec Hose)	398	398	1.2	7.1	22.9
CHS Engineering Services Limited	352	497	1.1	4.2	19.1
Attraction World Holdings Limited	278	98	0.8	6.2	32.2
Claven Holdings Limited	232	170	0.7	9.6	40.4
Endura Limited2	229	229	0.7	0.7	5.2
Traceall Global Limited	197	197	0.6	5.9	9.1
Martel Instruments Holdings Limited	190	227	0.6	4.2	40.0
Kelvinlea Limited	186	186	0.6	13.1	36.9
Space Student Living Limited	168	-	0.5	10.6	69.4
D Mack Limited	165	504	0.5	4.8	25.2
Lawrence Recycling and Waste Management Limited	135	770	0.4	8.4	53.6
Maven Co-invest Endeavour Limited Partnership (invested in Global Risk Partners)²	133	133	0.4	5.6	94.4
Other unlisted investments	3	958	-
Total unlisted investments	25,229	22,397	75.8

Investment Portfolio Summary (Continued)          

As at 30 June 2015

	Valuation	Cost	% of total	% of equity	% of equity held by other
	£'000	£'000	assets	held	clients¹
Quoted
Ideagen PLC	254	206	0.9	0.3	2.8
Vectura Group PLC	219	110	0.7	-	0.1
OMG PLC	96	80	0.3	0.2	-
Plastics Capital PLC	82	85	0.2	0.2	1.2
Chime Communications PLC	67	56	0.2	-	-
Angle PLC	42	27	0.1	0.1	0.5
esure Group PLC	23	-	0.1	-	-
Deltex Medical Group PLC	14	33	-	0.1	-
Work Group PLC	8	151	-	0.7	2.5
Other quoted investments	7	393	-
Total quoted investments	812	1,141	2.5
UK treasury bills
Treasury Bill 20 July 2015	1,800	1,798	5.4
Treasury Bill 14 September 2015	1,748	1,748	5.3
Total UK treasury bill investments	3,548	3,546	10.7
Total investments	29,589	27,084	89.0

¹Other Clients of Maven Capital Partners UK LLP

²These investments are managed by Penta Capital LLP of which a Director of the Company, Steven Scott, is a partner.

Income Statement

For the Six Months Ended 30 June 2015

		Ordinary
	Shares
		(unaudited)
	Revenue	Capital	Total
	£'000	£'000	£'000
Gains on investments	-	1,423	1,423
Income from investments	675	-	675
Investment management fees	(116)	(462)	(578)
Other expenses	(42)	-	(42)
Net Return on ordinary activities before taxation	517	961	1,478
Tax on ordinary activities	(46)	46	-
Return attributable to Equity Shareholders	471	1,007	1,478
Earnings per share (pence)	1.4	3.0	4.4

A Statement of Total Recognised Gains and Losses has not been prepared, as all gains and losses are recognised in the Income Statement.

All items in the above statement are derived from continuing operations. The Company has only one class of business and derives its income from investments made in shares, securities and bank deposits.

The total column of this statement is the Profit and Loss Account of the Company.

Reconciliation of Movements in Shareholders' Funds

For the Six Months Ended 30 June 2015

	Ordinary Shares (unaudited)
	£'000
Opening Shareholders' funds	31,138
Net return for period	1,478
Net proceeds of share issue	1,986
Net proceeds of DIS issue	24
Merger costs	(20)
Repurchase and cancellation of shares	(382)
Dividends paid - revenue	(237)
Dividends paid - capital	(745)
Closing Shareholders' funds	33,242

The accompanying notes are an integral part of the financial statements.

Income Statement

For the Six Months Ended 30 June 2014

	Ordinary			C Ordinary
		Shares			Shares
	(unaudited)			(unaudited)			TOTAL
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments	-	275	275	-	(657)	(657)	-	(382)	(382)
Income from investments	560	-	560	31	-	31	591	-	591
Investment management fees	(84)	(335)	(419)	(9)	(37)	(46)	(93)	(372)	(465)
Other expenses	(131)	-	(131)	(20)	-	(20)	(151)	-	(151)
Net return on ordinary activities before taxation	345	(60)	285	2	(694)	(692)	347	(754)	(407)
Tax on ordinary activities	(33)	33	-	-	-	-	(33)	33	-
Return attributable to equity shareholders	312	(27)	285	2	(694)	(692)	314	(721)	(407)
Earnings per share (pence)	1.1	(0.1)	1.0	-	(17.9)	(17.9)	1.1	(18.0)	(16.9)

A Statement of Total Recognised Gains and Losses has not been prepared, as all gains and losses are recognised in the Income Statement.

All items in the above statement are derived from continuing operations.  The Company has only one class of business and derives its income from investments made in shares, securities and bank deposits.

The total column of this statement is the Profit and Loss Account of the Company.

Reconciliation of Movements in Shareholders' Funds

For the Six Months Ended 30 June 2014

	Ordinary	C Ordinary
	Shares	Shares
	(unaudited)	(unaudited)	Total
	£'000	£'000	£'000
Opening Shareholders' funds	25,340	3,631	28,971
Net return for period	285	(692)	(407)
Net proceeds of share issue	3,599	-	3,599
Repurchase and cancellation of shares	(469)	-	(469)
Dividends paid - revenue	(190)	-	(190)
Dividends paid - capital	(583)	-	(583)
Closing Shareholders' funds	27,982	2,939	30,921

The accompanying Notes are an integral part of the Financial Statements.

Income Statement

For the Year Ended 31 December 2014

	Ordinary
		Shares
		(audited)
	Revenue	Capital	Total
	£'000	£'000	£'000
Gains on investments	-	473	473
Income from investments	1,282	-	1,282
Investment management fees	(208)	(831)	(1,039)
Other expenses	(387)	-	(387)
Net return on ordinary activities before taxation	687	(358)	329
Tax on ordinary activities	(132)	132	-
Return attributable to Equity Shareholders	555	(226)	329
Earnings per share (pence)	1.7	(0.7)	1.0

A Statement of Total Recognised Gains and Losses has not been prepared, as all gains and losses are recognised in the Income Statement.

All items in the above statement are derived from continuing operations.  The Company has only one class of business and derives its income from investments made in shares, securities and bank deposits.

The total column of this statement is the Profit and Loss Account of the Company.

Reconciliation of Movements in Shareholders' Funds

For the Year Ended 31 December 2014

	Ordinary		C Ordinary
	Shares		Shares
	(audited)		(audited)		Total
	£'000		£'000		£'000
Opening Shareholders' funds		25,340		3,631	28,971
C Ordinary Share consolidation to Ordinary Shares		3,631		(3,631)	-
Net return for year		329		-	329
Net proceeds of share issue		4,093		-	4,093
Merger costs		(3)		-	(3)
Repurchase and cancellation of shares		(861)		-	(861)
Dividends paid - revenue		(484)		-	(484)
Dividends paid - capital		(907)		-	(907)
Closing Shareholders' funds		31,138		-	31,138

The accompanying Notes are an integral part of the Financial Statements.

Balance Sheet

As at 30 June 2015

				30 June 2015		30 June 2014				31 December 2014
				(unaudited)			(unaudited)			(audited)
				Ordinary		Ordinary	C Ordinary			Ordinary
				Shares		Shares	Shares	Total		Shares
				£'000		£'000	£'000	£'000		£'000
Fixed assets
Investments at fair value through profit or loss				29,589		25,504	2,527	28,031		29,296
Current assets
Debtors				730		551	195	746		511
Cash				3,319		2,043	238	2,281		1,565
				4,049		2,594	433	3,027		2,076
Creditors
Amounts falling due within one year				(396)		(116)	(21)	(137)		(234)
Net current assets				3,653		2,478	412	2,890		1,842
Total net assets				33,242		27,982	2,939	30,921		31,138
Capital and reserves
Called up share capital				3,370		2,887	386	3,273		3,205
Share premium account				19,457		13,577	3,572	17,149		17,677
Capital reserve - realised				(2,375)		(920)	(296)	(1,216)		(1,018)
Capital reserve - unrealised				2,502		1,512	(602)	910		883
Distributable reserve				9,239		10,122	(95)	10,027		9,621
Capital redemption reserve				274		173	11	184		229
Revenue reserve				775		631	(37)	594		541
Net assets attributable to Ordinary Shareholders				33,242		27,982	2,939	30,921		31,138
Net asset value per Ordinary Share (pence)				98.6		96.9	76.1			97.2

The Financial Statements were approved and authorised for issue by the Board of Directors on 28 August 2015 and were signed on its behalf by:

Ian Cormack

Director

The accompanying Notes are an integral part of the Financial Statements.

Cash Flow Statement

For the Six Months Ended 30 June 2015

	Six months				Year ended
	ended 30 June 2015	Six months ended 30 June 2014			31 December 2014
	(unaudited)	(unaudited)			(audited)
	Ordinary	Ordinary	C Ordinary		Ordinary
	Shares	Shares	Shares	Total	Shares
	£'000	£'000	£'000	£'000	£'000
Operating activities
Investment income received	680	493	31	524	1,323
Deposit interest received	-	2	-	2	2
Investment management fees paid	(579)	(564)	(46)	(610)	(1,092)
Secretarial fees paid	(39)	(40)	(6)	(46)	(93)
Directors' fees paid	(35)	(34)	(5)	(39)	(73)
Other cash payments/receipts	(80)	(90)	24	(66)	(20)
Net cash (outflow)/inflow from operating activities	(53)	(233)	(2)	(235)	47
Taxation
Corporation tax	-	-	-	-	-
Financial investment
Purchase of investments	(8,597)	(8,224)	(970)	(9,194)	(20,941)
Sale of investments	9,778	7,180	919	8,099	19,367
Net cash inflow/(outflow) from financial investment	1,181	(1,044)	(51)	(1,095)	(1,574)
Equity dividends paid	(982)	(773)	-	(773)	(1,391)
Net cash inflow/(outflow) before financing	146	(2,050)	(53)	(2,103)	(2,918)
Financing
Issue of Ordinary Shares	2,010	3,599	-	3,599	4,093
Merger costs	(20)	-	-	-	(3)
Repurchase of Ordinary Shares	(382)	(469)	-	(469)	(861)
Net cash inflow from financing	1,608	3,130	-	3,130	3,229
Increase/(decrease) in cash	1,754	1,080	(53)	1,027	311

The accompanying Notes are an integral part of the Financial Statements.

Notes to the Financial Statements

For the Six Months Ended 30 June 2015

1.    Accounting Policies

The financial information for the six months ended 30 June 2015 and the six months ended 30 June 2014 comprises non-statutory accounts within the meaning of S435 of the Companies Act 2006.  The financial information contained in this report has been prepared on the basis of the accounting policies set out in the Annual Report and Financial Statements for the year ended 31 December 2014, which have been filed at Companies House and which contained an Auditor's Report which was not qualified and did not contain a statement under S498(2) or S498(3) of the Companies Act 2006.

2.    Movement in Reserves

	Share	Capital	Capital		Capital
	premium	reserve	reserve	Distributable	redemption	Revenue
Movement in reserves	account	realised	unrealised	reserve	reserve	reserve
Ordinary shares	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2015	17,677	(1,018)	883	9,621	229	541
Loss on sale of investments	-	(196)	-	-	-	-
Net increase in value of investments	-	-	1,619	-	-	-
Investment management fees	-	(462)	-	-	-	-
Dividends paid	-	(745)	-	-	-	(237)
Tax effect of capital items	-	46	-	-	-	-
Share Issue	1,778	-	-	-	-	-
DIS Share Issue	22	-	-	-	-	-
Merger costs	(20)	-	-	-	-	-
Repurchase and cancellation of shares	-	-	-	(382)	45	-
Net return on ordinary activities after taxation	-	-	-	-	-	471
As 30 June 2015	19,457	(2,375)	2,502	9,239	274	775

3.    Return per Ordinary Share

			Six months ended
		30 June 2015
The returns per share have been based on the following figures:
Weighted average number of Ordinary Shares			33,334,448
Revenue return			£471,000
Capital return			£1,007,000
Total return			£1,478,000

Directors' Responsibility Statement

The Directors confirm that, to the best of their knowledge:

•      the Financial Statements for the six months ended 30 June 2015 have been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' issued in January 2009;

•      the Interim Management Report includes a fair review of the information required by DTR 4.2.7R in relation to the indication of important events during the first six months, and of the principal risks and uncertainties facing the Company during the second six months, of the year ending 31 December 2015; and

•      the Interim Management Report includes adequate disclosure of the information required by DTR 4.2.8R in relation to related party transactions and any changes therein.

Other Information

The NAV per Ordinary Share has been calculated using the number of Ordinary Shares in issue at 30 June 2015 of 33,702,502.  A summary of investment changes for the six months under review and an investment portfolio summary as at 30 June 2015 are included above. A full copy of the Interim Report and Financial Statements will be printed and issued to Shareholders.  Copies of this announcement will be available to the public at the registered office of the Company, Kintyre House, 205 West George Street, Glasgow G2 2LW.

Neither the content of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

By Order of the Board

Maven Capital Partners UK LLP, Secretary

28 August 2015

 

END

 

 

IR UWAARVSAWUAR