Half-year Report

RNS Number : 4351N

Mobeus Income & Growth 4 VCT PLC

08 August 2017

 



Mobeus Income & Growth 4 VCT plc

Mobeus Income & Growth 4 VCT plc, ("MIG4", the "Company", or the "Fund") is a Venture Capital Trust ("VCT") advised by Mobeus Equity Partners LLP ("Mobeus"), investing primarily in established, unquoted companies.

Company Objective

The Objective of the Company is to provide investors with a regular income stream by way of tax-free dividends and to generate capital growth through portfolio realisations which can be distributed by way of additional tax-free dividends, while continuing at all times to qualify as a VCT.

Financial Highlights

Results for the six months ended 30 June 2017

- Net Asset Value ("NAV") Total Return per share of 5.2% for the half-year.

- The Company has declared an interim dividend of 18.00 pence per share, payable on 11 September 2017 to 

shareholders on the register on 11 August 2017, bringing total cumulative dividends paid to shareholders since

inception to 98.20 pence per share.

- Investments totalling £1.65¹  million have been made into Tapas Revolution, Buster & Punch, MyTutor, and a

follow on investment into BookingTek.

- The Company has realised its investment in Entanet after the period end in August 2017 for £4.89 million,

  contributing to a 2.5 multiple of cost over the life of the investment to date.

- The Board intends to raise up to £15 million under an Offer (£10 million plus

   £5 million via an over-allotment facility) alongside the other Mobeus VCTs, to be launched in September 2017.

¹ - includes £0.53 million previously held in a company preparing to trade.

Cumulative total shareholder return per share (NAV basis)*

The net asset value (NAV) per share as at 30 June 2017 was 106.18 pence.

The longer term trend of performance on this measure is shown in the chart below:

Period	Net asset value (NAV) per share	Cumulative dividends paid per share	Cumulative total return per share to shareholders since launch*
			(NAV basis)
	(p)	(p)	(p)
As at 30 June 2017	106.18	80.20	186.38
As at 31 December 2016	107.57	73.20	180.77
As at 31 December 2015	117.89	62.20	180.09
As at 31 December 2014	118.21	52.20	170.41
As at 31 December 2013	119.92	34.20	154.12
As at 31 December 2012	117.31	26.70	144.01
As at 31 January 2012	116.73	21.70	138.43

*Cumulative NAV total shareholder return is net asset value plus cumulative dividends paid since 1999 to date.

The table above shows the recent past performance of the original funds raised in 1999. The original subscription price was 200 pence per share before the benefit of income tax relief. Subscription prices from subsequent fundraisings and historic performance data from 2008 are shown in the Investor Performance Appendix on the Company's website, www.mig4vct.co.uk, where they can be downloaded by clicking on "table" under "Reviewing the performance of your investment" on the home page.

On 31 July 2006, Mobeus became sole Investment Adviser to the Company. The cumulative NAV total return at this date was 122.51 pence.

Chairman's Statement

I am pleased to present this Half-Year Report for Mobeus Income & Growth 4 VCT plc covering the six months ended 30 June 2017.

Overview

Your Board has announced its intention to raise up to a further £15 million comprising £10 million with a possible further over-allotment facility of £5 million alongside three other Mobeus- advised VCTs before the end of the financial year. This seems sensible to finance the intended investment programme, particularly as it is possible that the rules governing VCT investment may not be as favourable in the future.

We also believe that there continues to be good appetite for further investment in the Company, following a very popular fundraising in the 2014/2015 tax year.

A general meeting was convened and held on 3 August 2017 at which shareholder approval was sought and obtained for authority to allot shares and dis-apply pre-emption rights in connection with the fundraising. The Offers for Subscription ("Offers") are expected to be launched in early September 2017, full details of which will be contained in the Prospectus that will be sent to all registered shareholders.

We very much hope that existing shareholders will add to their holdings and look forward to welcoming new investors in the Company.

The half-year has produced a good return for shareholders with a positive income return and an increase in the value of the portfolio. In particular, the Board is pleased to note the sale of the investment in Entanet just after the half-year end, which has contributed substantially to this good return for shareholders.

The level of new investment has been strong with four growth capital investments completed so far in 2017. Further details of these investments are included under 'Investment Portfolio' below. These investments reflect the revised focus on providing growth capital to younger and smaller companies in accordance with the revised Investment Policy approved by shareholders last year. By way of reminder, this revised Policy was required to comply with the new VCT measures introduced by the Finance (No 2) Act 2015 in November of that year. Since that change £7.12 million has been invested to date in nine such companies.

Although the VCT industry can no longer make investments to finance management buyouts ("MBOs") these MBO investments continue to represent 77% of the Company's portfolio. This portfolio has performed well in what is a time of political and economic uncertainty.

Performance

The Net Asset Value ("NAV") Total Return was 5.2% for the period (compared with 0.1% for the same period last year).

Interim dividend

The Board has declared an interim dividend of 18.00 pence per share, comprising 1.00 pence from income (2016: 1.00 pence) and 17.00 pence from capital (2016: 1.00 pence), of which 15.00 pence is payable from the Company's Special Distributable Reserve. Shareholders should not assume further payments from the Special Distributable Reserve in the foreseeable future.  The quantum of dividend payments will increasingly depend on the success or otherwise of the current investment policy implemented as a result of regulatory changes.

The interim dividend will be paid on 11 September 2017 to shareholders on the Register on 11 August 2017 and will bring cumulative dividends paid per share since launch to 98.20 pence.

Investment portfolio

As noted above, the Company completed the divestment of Entanet Holdings Limited after the period end. Proceeds of £4.89 million have been received, while a further £0.50 million of deferred consideration is potentially payable over the next two years. This investment has achieved a return on original investment cost of 2.5 times to date, over the three and a half years that the investment was held, which is a very pleasing. The valuation of Entanet at the half-year reflects the full £4.89 million of cash proceeds received after the period-end.

Overall the performance of the investment portfolio has been pleasing. The portfolio achieved a gain of £2.45 million (6.3% of the opening value during the first half of the year and was valued at £37.93 million at the period-end (30 June 2016: £37.45 million). The six month period experienced notable increases in the valuations of Entanet and Access IS. The portfolio also saw valuation declines over the period for Fullfield (Motorclean), CGI Creative Graphics and Media Business Insight.

During the period three new investments and one follow on were completed at a total cost of £1.65 million (analysed in the Investment Review and explained within Note 10).

These new investments were:

●      Ibericos Etc. Limited (trading as Tapas Revolution) - a leading Spanish restaurant chain in the casual dining sector.

●      Chatfield Services Limited (trading as Buster & Punch) - a London-based interiors brand.

●      MyTutorweb Limited - a digital marketplace that connects school pupils who are seeking private

one-to-one tutoring with university students.

Shortly after the period end, a further new investment of £2.33 million was made into Wetsuit Outlet, a leading online retailer in the water sports market. This investment utilised £1.56 million previously held in a company preparing to trade.

The company received cash proceeds of £4.57 million during the period, including £4.40 million of loan stock repayments.

Further information on the portfolio can be found under the Investment Adviser's Review.

Revenue account

There was an increase in net revenue return for the period, being £0.76 million compared to £0.61 million recorded this time last year. Income has increased due to a strong stream of dividends, as well as improved loan interest receipts due to new investments and some portfolio companies resuming loan interest payments as their trading improved.  Running costs have fallen due to lower Investment Adviser fees arising from lower net assets.

Industry and regulatory developments

The Patient Capital Review, announced in November 2016, is now in its consultation phase ahead of the Autumn Budget 2017. Led by HM Treasury, its objective is to assess what amendments to Government policy, if any, are needed to support the expansion in provision of long-term capital for growing innovative firms.  The Board is firmly of the view that the government should use this review to make a renewed public commitment to the positive role that VCTs play in providing development capital to the small business sector, as well as affirming the long-term future of the scheme.

Liquidity

The present level of cash or near cash resources held by the Company as at 30 June 2017, including the liquidity held by companies preparing to trade, was £18.25 million or 35% of net assets. After the period end, following the investment in Wetsuit Outlet, the realisation of Entanet Holdings, and the payment of the interim dividend in September 2017, the level of liquidity will be £11.86 million or 27% of net assets.

The VCT continues to hold its cash in a selection of money market funds with AAA credit ratings and in a number of deposit accounts diversified among well-known financial institutions across a range of maturities.

Investment in qualifying holdings

The Company is required to meet the threshold set by HM Revenue & Customs ("HMRC") of investing 70% of the funds raised in qualifying unquoted and AIM quoted companies. The Company complied with this limit (based on VCT cost as defined in tax legislation, which differs from the actual cost given in the Investment Portfolio Summary throughout the period. The balance of the portfolio continues to be held in non-qualifying investments and cash.

Share buybacks

We are pleased to note that currently there is relatively little demand for share buybacks. There were no share buybacks during the six months ended 30 June 2017. 10,000 Ordinary shares were bought back following the period end at a price of 90.86 pence per share (including costs). These were bought back at approximately a 10% discount to the Company's latest announced NAV, in accordance with its Buyback policy.

All of the shares bought-back after the period-end were subsequently cancelled by the Company. Continuing shareholders benefit from the difference between NAV per share and the price per share at which the shares are bought back and cancelled.

Dividend Investment Scheme

The Company's Dividend Investment Scheme ("the Scheme") is a convenient, easy and cost effective way for shareholders to build up their shareholding in the Company. Instead of receiving cash dividends they can elect to receive new shares in the Company.

A total of 706,138 new Ordinary shares were issued under the Scheme during the period at a price of 90.00 pence each.

Further information on the Scheme, including details of where to obtain an application form, can be found in Shareholder Information.

Shareholder communications

The Investment Adviser held its seventh annual shareholder event on 24 January 2017. The event was well attended and we were pleased to hear from the Investment Adviser that it received positive feedback from shareholders. The next event is to be held on Tuesday, 30 January 2018, again at the Royal Institute of British Architects in Central London. The programme will again include presentations on the investment activity and performance of the Mobeus VCTs as well as an update on the recent regulatory changes and talks from investee companies. Shareholders have been sent further details, and an invitation to the event, with the shareholder newsletter sent last week.

Outlook

The UK economy continues to be subject to the uncertainties arising both out of the ability of the UK government to negotiate a satisfactory exit from the European Union and from the recent UK election result. Nevertheless the demand from small UK businesses for development capital remains strong and there continues to be a healthy market to purchase quality smaller companies at attractive prices.

Both the Board and the Investment Adviser continue to have a positive outlook about the Company's future prospects. The small and medium-sized enterprises (SME) segment is a dynamic target universe for new investment, where the Investment Adviser is reviewing many promising opportunities. The Investment Adviser continues to expand its team and capabilities and has adapted well to the requirements of the new Investment Policy.

The existing portfolio continues to comprise predominantly established, profitable companies that have been conservatively financed, but over time the growth capital investments will represent a growing proportion. The latter will tend to be younger, and may not always be profitable at the time of investment. They will typically exhibit more volatility in returns and generate less income as they tend to re-invest profits during their growth phase, but may offer the prospect of higher capital returns.

Finally, I would like to thank shareholders for their continuing support.

Christopher Moore

Chairman

8 August 2017

Investment Policy

The investment policy is designed to meet the Company's objective.

Investments

The Company invests primarily in a diverse portfolio of UK unquoted companies. Investments are made selectively across a number of sectors, principally in established companies. Investments are usually structured as part loan stock and part equity in order to produce a regular income stream and to generate capital gains 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. The Company will seek to make investments in accordance with the requirements of prevailing VCT legislation.

Asset allocation and risk diversification policies, including the size and type of investments the Company makes, are determined in part by the requirements of prevailing VCT legislation. No single investment may represent more than 15 per cent. (by VCT tax value) of the Company's total investments at the date of investment.

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 borrowings of amounts up to 10 per cent. 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.

Summary of VCT Regulation

To maintain its status as a VCT, the Company must meet a number of conditions, the most important of which are that:- -The Company must hold at least 70%, by VCT tax value*, of its total investments (shares, securities and      liquidity) in VCT qualifying holdings, within approximately three years of a fundraising; -Of these qualifying holdings, an overall minimum of 30% by VCT tax value* (70% for funds raised on or after 6 April 2011) must be in ordinary shares which carry no preferential rights (save as may be permitted under VCT rules); -No investment in a single company or group of companies may represent more than 15% (by VCT tax value*) of the Company's total investments at the date of investment; -The Company must pay sufficient levels of income dividend from its revenue available for distribution so as not to retain more than 15% of its income from shares and securities in a year; -The Company's shares must be listed on a regulated European stock market; and -Non-qualifying investments can no longer be made, except for certain exemptions in managing the Company's short term liquidity. To be a VCT qualifying holding, a new investment must be in companies:- -which carry on a qualifying trade; -which have no more than £15 million of gross assets at the time of investment and £16 million immediately following investment from VCTs; -whose maximum age is generally seven years (ten years for knowledge intensive businesses); -that receive no more than an annual limit of £5 million and a lifetime limit of £12 million (£20 million for knowledge intensive companies), from VCTs and similar sources of State Aid funding; -that use the funds received from VCTs for growth and development purposes. *VCT tax value means as valued in accordance with prevailing VCT legislation which may not be the actual cost or fair value of the Investment Portfolio Summary. The above takes into account legislation up to the Finance Act 2016 but effective from 6 April 2016.

Investment Review

New investments in the Half-Year

A total of £1.65 million was invested into three new companies during the six months under review plus one existing portfolio company. This comprised new investments into Tapas Revolution, Buster & Punch, MyTutor and a follow on investment in BookingTek.  One further investment in Wetsuit Outlet was completed after the period end.

Company	Business	Date of investment		Amount of new investment (£m)
Tapas Revolution	Restaurant	January 2017		0.58
Based in London, Ibericos Etc. Limited (which trades as Tapas Revolution) is a leading Spanish restaurant chain in the casual dining sector focusing on shopping centre sites with high footfall. Having opened its first restaurant in Shepherd's Bush Westfield, the business has since opened a further six restaurants. The investment provided growth capital to a high-calibre team with significant restaurant rollout experience which has spent the past five years building and refining its offer and is now well placed to capitalise on a strong pipeline of new sites. The company's latest accounts for the year ended 25 October 2016 show a turnover of £4.25 million and loss before interest, tax and amortisation of goodwill of £0.25 million.
Buster & Punch	Retailer	March 2017		0.53
Chatfield Services Limited (trading as Buster & Punch) is a London-based interiors brand founded in 2012 by architect and industrial designer Massimo Buster Minale. Buster & Punch (www.busterandpunch.com) started in a small garage in East London, where it built the "world's first designer LED light bulb" (the Buster Bulb) and made its name with its industrial-inspired lighting. Its products are now sold in over 50 countries, both directly to end-consumers, designers and architects, and through well-known retailers including John Lewis, Harvey Nichols and Harrods. The investment will support the business's international expansion plans and the broadening of its product range. The company's latest accounts for the year ended 31 March 2016 show turnover of £1.98 million and profit before interest, tax and amortisation of goodwill of £0.47 million.
MyTutor	Online tutoring	May 2017		0.47
My Tutorweb Limited is a digital marketplace that connects school pupils who are seeking private one-to-one tutoring with university students. The business is satisfying a growing demand from both schools and parents to improve pupils' exam results to enhance their academic and career prospects. This investment represents an opportunity to consolidate the sizeable £2bn UK tutoring market, build My Tutor's market presence and will also be used to drive technological development.   The company's latest accounts for the year ended 31 December 2016 show a turnover of £0.21 million and a loss before interest, tax and amortisation of goodwill of £0.79 million.

A further small loan investment of £0.07 million was made into BookingTek Limited (which provides direct booking software for hotel groups), to fund an opportunity for US expansion.

New investment post period-end

Company	Business	Date of investment		Amount of new investment (£m)
Wetsuit Outlet	Retailer	July 2017		2.33
B2C Holdings Limited (trading as Wetsuit Outlet) has established itself as a leading online retailer in the water sports market, stocking an impressive brand portfolio including Musto, Billabong, Rip Curl, O'Neill, Red Paddle (an existing Mobeus investment) and Gul. The investment is to fund working capital and growth in the existing activity and enter two new markets. Established in 2005, the company has developed into a successful and profitable business with revenues of £11.51 million and £1.77 million NPBIT&A in the financial year ended 31 March 2017.

Realisations in the period

There were no realisations during the period under review, although there was one substantial realisation shortly after the period end (Entanet Holdings Limited) as set out below:

Company	Business	Period of investment		Total cash proceeds over the life of the investment/Multiple over cost
Entanet	Wholesale voice and data communications provider	February 2014 to August 2017		£5.53 million 2.5 times cost
The VCT has just sold this investment to AIM quoted CityFibre Infrastructure Holdings PLC for £4.89 million. Between December 2014 and December 2016, Entanet's revenues increased by 39% to £35.75 million. Deferred consideration of up to £0.50 million is potentially payable over the next 24 months. Excluding this deferred consideration, the company has so far realised a gain of £2.72 million, being 5.48 pence per share, and has returned an IRR of 39% to date, an excellent outcome.

Loan stock repayments

Loan stock repayments totalled £4.40 million. These proceeds are summarised below:-

Company	Business	Month		Amount (£000s)
Backhouse Management	Company preparing to trade	January		907
Creasy Marketing	Company preparing to trade	March		907
McGrigor Management	Company preparing to trade	January, February		907
Hollydale Management	Company preparing to trade	March		657
Chatfield Services	Company subsequently used to invest in Buster & Punch	March		523
Barham Consulting	Company preparing to trade	March		454
TPSFF Holdings	Building finishing services	April		42
BG Training	Technical training	January		4
		Total		4,401

Mobeus Equity Partners LLP

Investment Adviser

8 August 2017

Investment Portfolio Summary

at 30 June 2017

Mobeus Equity Partners LLP		Total cost at 30 June 2017 £	Total valuation at 31 December 2016 £		Total valuation at 30 June 2017 £		% of equity held	% of portfolio by value
Entanet Holdings Limited 1 Wholesale voice and data communications provider		2,167,662	2,254,135		4,892,454		13.1%	13.0%
Tovey Management Limited (trading as Access IS) Provider of data capture and scanning hardware		2,469,013	2,601,197		2,932,773		10.1%	7.7%
Virgin Wines Holding Company Limited Online wine retailer		1,930,813	2,685,675		2,531,929		9.7%	6.7%
ASL Technology Holdings Limited Printer and photocopier services		1,933,591	2,082,980		2,031,383		9.5%	5.4%
Manufacturing Services Investment Limited Company subsequently used to invest in Wetsuit Outlet after the period- end		2,016,900	2,016,900		2,016,900		11.4%	5.3%
Media Business Insight Holdings Limited A publishing and events business focused on the creative production industries		2,722,760	2,218,152		1,991,494		15.7%	5.3%
Turner Topco Limited (trading as ATG Media) Publisher and online auction platform operator		1,529,075	1,330,326		1,359,196		3.7%	3.6%
Vian Marketing Limited (trading as Red Paddle Co)       Design, manufacture and sale of stand-up paddleboards and windsurfing sails		899,074	1,188,439		1,330,996		7.1%	3.5%
Gro-Group Holdings Limited Baby sleep products		1,577,977	1,361,293		1,260,805		10.7%	3.3%
Tharstern Group Limited Software based management information systems to the print sector		1,091,886	1,217,396		1,247,456		12.2%	3.3%
Veritek Global Holdings Limited Maintenance of imaging equipment		1,620,086	1,283,041		1,225,723		10.3%	3.2%
EOTH Limited (trading as Equip Outdoor Technologies) Branded outdoor equipment and clothing		951,471	1,197,945		1,188,932		1.7%	3.1%
Fullfield Limited (trading as Motorclean) Vehicle cleaning and valet services		1,131,444	1,459,525		1,147,117		9.8%	3.0%
CGI Creative Graphics International Limited Vinyl graphics to global automotive, recreation vehicle and aerospace markets		1,449,746	1,311,572		1,080,299		6.6%	2.8%
	TPSFF Holdings Limited (formerly The Plastic Surgeon Holdings Limited) Supplier of snagging and finishing services to the domestic and commercial property markets	424,235	902,329		986,808		8.7%	2.7%
Redline Worldwide Limited Provider of security services to the aviation industry and other sectors		838,377	838,377		971,656		6.7%	2.6%
RDL Corporation Limited Recruitment consultants within the pharmaceutical, business intelligence and IT industries		1,000,000	926,025		966,274		9.1%	2.5%
Master Removers Group Limited (formerly Leap New Co Limited (trading as Anthony Ward Thomas, Bishopsgate and Aussie Man & Van)) A specialist logistics, storage and removals business		511,855	734,387		957,783		4.3%	2.5%
Bourn Bioscience Limited Management of In-vitro fertilisation clinics		1,132,521	864,082		777,161		7.7%	2.0%
Preservica Limited Seller of proprietary digital archiving software		679,617	679,617		679,617		4.6%	1.8%
MPB Group Limited Online marketplace for photographic and video equipment		471,216	471,216		677,890		5.3%	1.8%
Pattern Analytics Limited (trading as Biosite) Workforce management and security services for the construction industry		640,171	640,171		640,171		4.8%	1.7%
BookingTek Limited Direct booking software for hotels		581,974	512,137		581,974		3.4%	1.5%
Ibericos Etc. Limited (trading as Tapas Revolution)		580,469	-	580,469		5.8%			1.5%
Spanish restaurant chain
Chatfield Services Limited (trading as Buster &  Punch)2		530,392	1,134,000	530,392		4.5%			1.4%
Industrial inspired lighting and interiors retailer
My TutorWeb Limited		466,639	-	466,639		4.5%			1.2%
Digtal marketplace connecting school pupils seeking one to one
online tutoring
Jablite Holdings Limited		376,083	606,998	448,343		9.1%			1.2%
Manufacturer of expanded polystyrene products
Hollydale Management Limited		701,120	1,095,500	438,200		11.0%			1.2%
Company seeking to carry on a business in the food industry
Omega Diagnostics Group plc		200,028	291,682	312,516		1.5%			0.8%
In-vitro diagnostics for food intolerance, auto-immune diseases and
infectious diseases
Backhouse Management Limited		589,680	1,134,000	226,800		11.3%			0.6%
Company seeking to carry on a business in the motor sector
Barham Consulting Limited		589,680	680,400	226,800		11.3%			0.6%
Company seeking to carry on a business in the catering sector
Creasy Marketing Services Limited		589,680	1,134,000	226,800		11.3%			0.6%
Company seeking to carry on a business in the textile sector
McGrigor Management Limited		589,680	1,134,000	226,800		11.3%			0.6%
Company seeking to carry on a business in the pharmaceutical
sector
Blaze Signs Holdings Limited		190,631	280,944	213,131		5.7%			0.6%
Manufacturer and installer of signs
Vectair Holdings Limited		24,732	183,729	160,769		2.1%			0.4%
Designer and distributor of washroom products
Lightworks Software Limited		9,329	34,926	31,444		4.2%			0.1%
Provider of software for CAD and CAM vendors
BG Training Limited		10,625	14,167	5,313		0.0%			0.0%
City-based provider of specialist technical training
Racoon International Holdings Limited		484,347	38,771	-		10.5%			0.0%
Supplier of hair extensions, hair care products and training
CB Imports Group Limited (trading as Country Baskets)		175,000	-	-		5.8%			0.0%
Importer and distributor of artificial flowers, floral sundries and home
decor products
Newquay Helicopters (2013) Limited (in creditors' voluntary		7,617	-	-		2.5%			0.0%
liquidation)
Helicopter service operator
Watchgate Limited		1,000	-	-		33.3%			0.0%
Holding company
Total		35,888,196	38,540,034	37,571,207					99.1%
Former Elderstreet Private Equity Limited Portfolio
Cashfac Limited Provider of virtual banking application software solutions to		260,101	288,932	300,988		2.9%			0.8%
corporate customers
Sparesfinder Limited		250,854	64,067	53,025		2.0%			0.1%
Supplier of industrial spare parts online
Sift Group Limited		135,391	33,401	-		1.3%			0.0%
Developer of business-to-business internet communities
Total		646,346	386,400	354,013					0.9%
Total Investment Portfolio		36,534,542	38,926,434	37,925,220					100.0%

1 - Entanet Holdings Limited was realised after the period end. The valuation at 30 June 2017 reflects the actual proceeds received.

2 - £1,134,000 invested in Chatfield Services Limited, a company preparing to trade, was used for the   investment into Buster & Punch. This resulted in a net repayment to the company of £603,608.

Statements of the Directors' Responsibilities

Responsibility Statement

In accordance with Disclosure and Transparency Rule (DTR) 4.2.10, Christopher Moore (Chairman), Andrew Robson (Chairman of the Audit Committee and Nomination and Remuneration Committee) 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 Half-Year Management Report which comprises the Chairman's Statement, Investment Policy,   Investment Review and the 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 changed materially from those identified in the Annual Report and Accounts for the year ended 31 December 2016 ("the Annual Report").

The principal risks faced by the Company are:

•         economic risk;

•         loss of approval as a Venture Capital Trust;

•         investment risk;

•         regulatory risk;

•         financial and operating risk;

•         market risk;

•         asset liquidity risk;

•         market liquidity risk; and

•         counterparty risk.

A detailed explanation of these risks can be found in the Annual Report on page 19 and in Note 15 on pages 54 - 60 of the Annual Report and Accounts for the year ended 31 December 2016, copies of which are available on the Investment Adviser's website, www.mobeusequity.co.uk or by going directly to the VCT's website, www.mig4vct.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 in the Half-Year Management Report.  The Directors have satisfied themselves that the Company continues to maintain a significant cash position but does intend to raise funds from an offer of subscription later this year. The majority of companies in the portfolio continue to trade profitably and the portfolio taken as a whole remains resilient and well-diversified. The major cash outflows of the Company (namely investments, 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 15 and 16 on pages 54 - 61 of the Annual Report and Accounts for the year ended 31 December 2016. Accordingly, the Directors continue to adopt the going concern basis of accounting in preparing the half-year report and annual financial statements.

Cautionary Statement

This report may contain forward looking statements with regards 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.

On behalf of the Board

Christopher Moore

Chairman

8 August 2017

Unaudited Condensed Income Statement

for the six months ended 30 June 2017

		Six months ended 30 June 2017 (unaudited)						Six months ended 30 June 2016 (unaudited)			Year ended 31 December 2016 (audited)
Notes		Revenue		Capital	Total			Revenue	Capital	Total	Revenue	Capital	Total
		£		£	£			£	£	£	£	£	£
Unrealised gains/(losses)  gains on investments held at fair value	10		-	2,363,132		2,363,132		-	(479,479)	(479,479)	-	(377,677)	(377,677)
Realised gains on investments held at fair value	10		-	87,628		87,628		-	381,087	381,087	-	381,087	381,087
Income	4		1,244,177	-		1,244,177		1,054,766	-	1,054,766	2,019,579	-	2,019,579
Investment Adviser's fees	5		(142,763)	(428,288)		(571,051)		(156,674)	(470,021)	(626,695)	(304,628)	(913,884)	(1,218,512)
Other expenses			(189,358)	-		(189,358)		(187,868)	-	(187,868)	(370,899)	-	(370,899)
Profit/(loss) on ordinary activities before taxation			912,056	2,022,472		2,934,528		710,224	(568,413)	141,811	1,344,052	(910,474)	433,578
Tax on profit/(loss) on ordinary activities	6		(150,244)	82,446		(67,798)		(101,479)	94,004	(7,475)	(212,864)	182,776	(30,088)
Profit/(loss) and total comprehensive income			761,812	2,104,918		2,866,730		608,745	(474,409)	134,336	1,131,188	(727,698)	403,490
Basic and diluted earnings per ordinary share	7		1.54p	4.26p		5.80p		1.26p	(0.98)p	0.28p	2.32p	(1.49)p	0.83p

The revenue column of the Income Statement includes all income and expenses. The capital column accounts for the unrealised gains/(losses) and realised gains on investments and the proportion of the Investment Adviser's fee charged to capital.

The total column is the Statement of Total Comprehensive Income of the Company prepared in accordance with UK GAAP, including Financial Reporting Standard 102. In order to better reflect the activities of a VCT and in accordance with the 2014 Statement of Recommended Practice ("SORP") updated in January 2017 by the Association of Investment Companies ("AIC"), 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.

Unaudited Condensed Balance Sheet

as at 30 June 2017

		30 June 2017 (unaudited)	30 June 2016 (unaudited)	31 December 2016 (audited)
	Notes	£	£	£
Fixed assets
Investments at fair value	10	37,925,220	37,450,507	38,926,434
Current assets
Debtors and prepayments		250,771	227,399	860,011
Current asset investments	11	12,193,267	13,308,457	9,511,810
Cash at bank	11	2,690,122	2,596,622	3,662,074
		15,134,160	16,132,478	14,033,895
Creditors: amounts falling due within one year		(235,006)	(167,128)	(205,173)
Net current assets		14,899,154	15,965,350	13,828,722
Net assets		52,824,374	53,415,857	52,755,156
Capital and reserves
Called up share capital		497,492	489,909	490,430
Share premium reserve		14,169,354	13,364,351	13,540,891
Capital redemption reserve		9,342	8,012	9,342
Revaluation reserve		3,512,924	1,050,205	1,152,007
Special distributable reserve		28,357,894	32,129,885	31,646,338
Realised capital reserve		4,792,400	5,192,452	4,702,557
Revenue reserve		1,484,968	1,181,043	1,213,591
Equity shareholders' funds		52,824,374	53,415,857	52,755,156
Basic and diluted net asset value per share	9	106.18p	109.03p	107.57p

Unaudited Condensed Statement of Changes in Equity

for the six months ended 30 June 2017

	Non-distributable reserves				Distributable reserves
	Called up	Share	Capital	Revaluation	Special	Realised	Revenue	Total
	share	premium	redemption	reserve	distributable	capital	reserve
	capital	reserve	reserve		reserve	reserve	(Note b)
					(Note a)	(Note b)
	£	£	£	£	£	£	£	£
At 1 January 2017	490,430	13,540,891	9,342	1,152,007	31,646,338	4,702,557	1,213,591	52,755,156
Comprehensive income for the period
Profit/(loss) for the period	-	-	-	2,363,132	-	(258,214)	761,812	2,866,730
Total comprehensive income for the period	-	-	-	2,363,132	-	(258,214)	761,812	2,866,730
Contributions by and distributions to owners
Issue of shares under Dividend Investment Scheme	7,062	628,463	-	-	-	-	-	635,525
Shares bought back	-	-	-	-	-	-	-	-
Dividends paid	-	-	-	-	(2,942,602)	-	(490,435)	(3,433,037)
Total contributions by and distributions to owners	7,062	628,463	-	-	(2,942,602)	-	(490,435)	(2,797,512)
Other movements
Realised losses transferred to special reserve (note a)	-	-	-	-	(345,842)	345,842	-	-
Realisation of previously unrealised appreciation	-	-	-	(2,215)	-	2,215	-	-
Total other movements	-	-	-	(2,215)	(345,842)	348,057	-	-
At 30 June 2017	497,492	14,169,354	9,342	3,512,924	28,357,894	4,792,400	1,484,968	52,824,374

Notes

a): The cancellation of the share premium reserve and capital redemption reserve has increased the Company's special distributable reserve. The purpose of this reserve is to fund market purchases of the Company's own shares, write off any existing and future losses and for any other corporate purpose. All of this reserve arose from shares issued before 5 April 2014.

b): The Realised capital reserve and the Revenue reserve together comprise the Profit and Loss Account of the Company.

Unaudited Condensed Statement of Changes in Equity

for the six months ended 30 June 2016

	Non-distributable reserves				Distributable reserves
	Called up	Share	Capital	Revaluation	Special	Realised	Revenue	Total
	share	premium	redemption	reserve	distributable	capital	reserve
	capital	reserve	reserve		reserve	reserve	(Note b)
					(Note a)	(Note b)
	£	£	£	£	£	£	£	£
At 1 January 2016	483,562	12,629,944	6,827	1,545,364	32,622,021	8,422,420	1,297,644	57,007,782
Comprehensive income for the period
(Loss)/ Profit for the period	-	-	-	(479,479)	-	5,070	608,745	134,336
Total comprehensive income for the period	-	-	-	(479,479)	-	5,070	608,745	134,336
Contributions by and distributions to owners
Issue of shares under Dividend Investment Scheme	7,532	734,407	-	-	-	-	-	741,939
Shares bought back	(1,185)	-	1,185	-	(116,119)	-	-	(116,119)
Dividends paid	-	-	-	-	-	(3,626,735)	(725,346)	(4,352,081)
Total contributions by and distributions to owners	6,347	734,407	1,185	-	(116,119)	(3,626,735)	(725,346)	(3,726,261)
Other movements
Realised losses transferred to special reserve	-	-	-	-	(376,017)	376,017	-	-
Realisation of previously unrealised appreciation	-	-	-	(15,680)	-	15,680	-	-
Total other movements	-	-	-	(15,680)	(376,017)	391,697	-	-
At 30 June 2016	489,909	13,364,351	8,012	1,050,205	32,129,885	5,192,452	1,181,043	53,415,857

Unaudited Condensed Statement of Cash Flows

for the six months ended 30 June 2017

		Six months ended 30 June 2017 (unaudited)	Six months ended 30 June 2016 (unaudited)	Year ended 31 December 2016 (audited)
	Notes	£	£	£
Cash flows from operating activities
Profit for the financial period		2,866,730	134,336	403,490
Adjustments for:
Unrealised (gains)/losses on investments		(2,363,132)	479,479	377,677
Realised gains on investments		(87,628)	(381,087)	(381,087)
Tax charge for the current year		67,798	-	30,088
Decrease/(increase) in debtors		28,771	29,330	(22,813)
Decrease in creditors and accruals		(37,965)	(110,131)	(102,175)
Net cash inflow from operating activities		474,574	151,927	305,180
Cash flows from investing activities
Sale of investments	10	4,568,919	1,944,207	2,402,008
Purchase of investments	10	(536,476)	(471,216)	(2,883,610)
(Increase)/decrease in bank deposits with a maturity over three months		-	(621,023)	85,130
Net cash inflow/(outflow) from investing activities		4,032,443	851,968	(396,472)
Cash flows from financing activities
Equity dividends paid	8	(2,797,512)	(3,610,142)	(4,411,541)
Purchase of own shares		-	(115,539)	(243,995)
Net cash outflow from financing activities		(2,797,512)	(3,725,681)	(4,655,536)
Net increase/(decrease) in cash and cash equivalents		1,709,505	(2,721,786)	(4,746,828)
Cash and cash equivalents at start of period		11,173,884	15,920,712	15,920,712
Cash and cash equivalents at end of period		12,883,389	13,198,926	11,173,884
Cash and cash equivalents comprise:
Cash at bank and in hand	11	2,690,122	2,596,622	3,662,074
Cash equivalents	11	10,193,267	10,602,304	7,511,810

Notes to the Unaudited Condensed Financial Statements

for the six months ended 30 June 2017

1. Company information

Mobeus Income and Growth 4 VCT plc is a public limited company incorporated in England, registration number 03707697. The registered office is 30 Haymarket, London, SW1Y 4EX.

2. Basis of preparation of the financial statements

These financial statements are 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') issued by the Association of Investment Companies (updated in January 2017).

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 10 on investments.

4. Income

	Six months ended 30 June 2017 (unaudited)	Six months ended 30 June 2016 (unaudited)	Year ended 31 December 2016 (audited)
	£	£	£
Dividends	131,569	29,140	106,043
Loan stock interest	1,087,313	967,555	1,817,393
Money-market funds	10,591	29,864	47,986
Bank deposit interest	14,704	28,207	48,157
Total Income	1,244,177	1,054,766	2,019,579

5. Investment Adviser's fees and performance fees

25% of the Investment Adviser's fees are charged to the revenue column of the Income Statement, while 75% is charged against the capital column of the Income Statement. This is in line with the Board's expected long-term split of returns from the investment portfolio of the Company. 100% of any performance incentive fee payable for the year would be charged against the capital column of the Income Statement, as it is based upon the achievement of capital growth.

	Six months ended 30 June 2017 (unaudited) Total	Six months ended 30 June 2016 (unaudited) Total	Year ended 31 December 2016 (audited) Total
	£	£	£
Allocation to revenue return: Investment Adviser's fees	142,763	156,674	304,628
Allocation of capital return: Investment Adviser's fees	428,288	470,021	913,884
Total Income	571,051	626,695	1,218,512

6. Taxation

	Six months ended 30 June 2017 (unaudited)			Six months ended 30 June 2016 (unaudited)			Year ended 31 December 2016 (audited)
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£	£	£	£	£	£	£	£	£
a) Analysis of tax charge: UK Corporation tax on profits/(losses) for the period	150,244	(82,446)	67,798	101,479	(94,004)	7,475	212,864	(182,776)	30,088
Total current tax charge/(credit)	150,244	(82,446)	67,798	101,479	(94,004)	7,475	212,864	(182,776)	30,088
Corporation tax is based on a rate of 19.3% (2016: 20.0%)
b) Profit on ordinary activities before tax	912,056	2,022,472	2,934,528	710,224	(568,413)	141,811	1,344,052	(910,474)	433,578
Profit/(loss) on ordinary activities multiplied by rate of corporation tax in the UK of 19.3% (2016: 20.0%)	175,571	389,326	564,897	142,045	(113,683)	28,362	268,810	(182,095)	86,715
Effect of:
UK dividends	(25,327)	-	(25,327)	(5,828)	-	(5,828)	(21,209)	-	(21,209)
Unrealised (gains)/losses not taxable/allowable	-	(454,904)	(454,904)	-	95,896	95,896	-	75,535	75,535
Realised gains not taxable	-	(16,868)	(16,868)	-	(76,217)	(76,217)	-	(76,216)	(76,216)
Losses brought forward	-	-	-	(34,738)	-	(34,738)	(34,737)	-	(34,737)
Actual current tax charge	150,244	(82,446)	67,798	101,479	(94,004)	7,475	212,864	(182,776)	30,088

7. Basic and diluted earnings per share

The basic earnings, revenue return and capital return per share shown below for each period are respectively based on numerators i)-iii), each divided by the weighted average number of shares in issue in the period - see iv) below:

	Six months ended 30 June 2017 (unaudited)	Six months ended 30 June 2016 (unaudited)	Year ended 31 December 2016 (audited)
	£	£	£
i) Total earnings after taxation:	2,866,730	134,336	403,490
Basic and diluted earnings per share (pence)	5.80p	0.28p	0.83p
ii) Revenue earnings from ordinary activities after taxation	761,812	608,745	1,131,188
Basic and diluted revenue earnings per share (pence)	1.54p	1.26p	2.32p
Net unrealised capital gains/(losses) on investments	2,363,132	(479,479)	(377,677)
Net realised capital gains on investments	87,628	381,087	381,087
Capital Investment Adviser's fees less taxation	(345,842)	(376,017)	(731,108)
iii) Capital earnings	2,104,918	(474,409)	(727,698)
Basic and diluted capital earnings per share (pence)	4.26p	(0.98)p	(1.49)p
iv) Weighted average number of shares in issue in the period	49,452,671	48,504,551	48,793,978

8. Dividends paid

Dividend	Type	For the year ended 31 December	Pence per share	Date paid	Six months ended 30 June 2017 (unaudited)	Six months ended 30 June 2016 (unaudited)		Year ended 31 December 2016 (audited)
					£	£		£
Final	Income	2015	1.50p	25 May 2016		725,346		725,346
Final	Capital	2015	7.50p	25 May 2016		3,626,735		3,626,735
Interim	Income	2016	1.00p	8 September 2016	-	-		489,895
Interim	Capital	2016	1.00p	8 September 2016	-	-		489,895
Second Interim	Income	2016	1.00p	17 March 2017	490,435	-		-
Second Interim	Capital	2016	6.00p	17 March 2017	2,942,6021	-		-
Total Dividends Paid*					3,433,037		4,352,081	5,331,871

1- This dividend was paid out of the Company's special distributable reserve.

* - £3,433,037 (30 June 2016: £4,352,081; 31 December 2016: £5,331,871) disclosed above differs to that shown in the Condensed Statement of Cash Flows of £2,797,512 (30 June 2016: £3,610,142; 31 December 2016: £4,411,541) due to £635,525 (30 June 2016: £741,939; 31 December 2016: £920,330) of new shares issued under the Company's Dividend Investment Scheme.

9. Net asset value per share

	as at 30 June 2017 (unaudited)	as at 30 June 2016 (unaudited)	as at 31 December 2016 (audited)
Net assets	£52,824,374	£53,415,857	£52,755,156
Number of shares in issue	48,749,171	48,990,948	49,043,033
Net asset value per share (pence)	106.18p	109.03p	107.57p

10. 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 2015. 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. For investments actively traded in 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. Purchases and sales of unlisted investments are recognised when the contract for acquisition or sale becomes unconditional. Unquoted investments are stated at fair value by the Directors in accordance with the following rules, which are consistent with the IPEV guidelines: All investments are held at the price of a recent investment for an appropriate period where there is considered to have been no change in fair value. Where such a basis is no longer considered appropriate, each investment is considered as a whole on a 'unit of account' basis alongside consideration of: (i)    Where a value is indicated by a material arms-length transaction by an independent third party in the shares of a company, this value will be used. (ii)   In the absence of  i), and depending upon both the subsequent trading performance and investment structure of an investee company, the valuation basis will usually move to either:- a)     a multiple basis. The shares may be valued by applying a suitable price-earnings ratio or revenue multiple to that company's historic, current or forecast post-tax earnings before interest and amortisation or revenue (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, a lack of marketability). or:- b)     where a company's underperformance against plan indicates a diminution in the value of the investment, provision against cost is made, as appropriate. (iii) Premiums, to the extent they are considered capital in nature, and that 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. (vi) Where an earnings or revenue multiple or cost less impairment basis is not appropriate and overriding factors apply, adiscounted cash flow, net asset valuation, or realisation proceeds basis 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 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 cost, 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 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 All investments are initially recognised and subsequently measured at fair value. Changes in fair value are recognised in the Income Statement. The methods of fair value measurement are classified in to 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.

10. Summary of movement on investments during the period (continued)

	Traded on AIM	Unquoted equity shares	Unquoted preference shares	Unquoted Loan Stock	Total
	Level 1	Level 3	Level 3	Level 3
	£	£	£	£	£
Valuation at 31 December 2016	291,682	10,204,887	12,767	28,417,098	38,926,434
Purchase at cost	-	814,908	-	302,037	1,116,945
Reclassification at value	-	(98)	98	-	-
Sales - proceeds	-	(168,156)	-	(4,400,763)	(4,568,919)
-realised (losses)/gains	-	(1,445,372)	-	1,533,000	87,628
Unrealised gains/(losses) on investments in the period	20,834	2,220,983	442,365	(321,050)	2,363,132
Valuation at 30 June 2017	312,516	11,627,152	455,230	25,530,322	37,925,220
Book cost at 30 June 2017	200,028	13,841,556	15,242	22,477,716	36,534,542
Unrealised gains/(losses) at 30 June 2017	112,488	(376,920)	440,569	3,336,787	3,512,924
Permanent impairment of investments	-	(1,837,484)	(581)	(284,181)	(2,122,246)
Valuation at 30 June 2017	312,516	11,627,152	455,230	25,530,322	37,925,220
(Losses)/gains on investments	-	(1,450,097)	-	1,539,940	89,843
Less amounts recognised as unrealised gains/(losses) in previous period	-	4,725	-	(6,940)	(2,215)
Realised (losses)/gains based on carrying value at 31 December 2016	-	(1,445,372)	-	1,533,000	87,628
Net movement in unrealised appreciation/ (depreciation) in the period	20,834	2,220,983	442,365	(321,050)	2,363,132
Gains on investments for the  six months ended 30 June 2017	20,834	775,611	442,365	1,211,950	2,450,760

Purchases of investments above of £1,116,945 are more than that shown in the Condensed Statement of Cash Flows of £536,476 by £580,469. This amount represents funds remitted in December 2016, for the investment in Ibericos Etc. Limited (trading as Tapas Revolution), which completed in this Half-Year period. Purchases of investments referred to in the Chairman's Statement of £1,647,337 are higher than that shown above by £530,392. This amount represents funds previously held in Chatfield Services Limited, a company preparing to trade, utilised for the investment into Buster & Punch, as referred to in the Investment Adviser's Review.

There has been no significant change in the risk analysis as disclosed in Note 15 of the financial statements in the Company's Annual Report. The decrease in unrealised valuations of the loan stock investments above reflect the changes in the entitlement to loan premiums, and/or in the underlying enterprise value of the investee company. The decrease does not arise from assessments of credit or market risk upon these instruments.

Level 3 unquoted equity and loan stock investments are valued in accordance with IPEV guidelines as follows:

	as at 30 June 2017 (unaudited) £	as at 30 June 2016 (unaudited) £	as at 31 December 2016 (audited) £
Valuation methodology
Estimated realisation proceeds	4,897,767	14,167	14,167
Cost (reviewed for impairment)	-	-	38,771
Recent investment price	6,841,561	12,638,548	11,470,318
Price earnings or revenue multiple	25,873,376	24,531,112	27,111,496
	37,612,704	37,183,827	38,634,752

11. Current asset investments and cash at bank

	as at 30 June 2017 (unaudited) £	as at 30 June 2016 (unaudited) £	as at 31 December 2016 (audited) £
OEIC Money market funds	10,193,267	10,597,771	7,511,810
Bank deposits that mature within three months but are not immediately repayable	-	4,533	-
Cash equivalents per Condensed Statement of Cash Flows	10,193,267	10,602,304	7,511,810
Bank deposits that mature after three months	2,000,000	2,706,153	2,000,000
Current asset investments	12,193,267	13,308,457	9,511,810
Cash at bank	2,690,122	2,596,622	3,662,074

12. Post balance sheet events

On 5 July 2017, an investment of £2.33 million was made in Wetsuit Outlet Limited, comprising £0.77 million of funds from the Company and £1.56 million from one of the Company's investments, Manufacturing Services Investment Limited, a company preparing to trade.

On 1 August 2017, the Company realised its entire holding in Entanet Holdings Limited for proceeds of £4.89 million, realising a gain over original cost of £2.72 million, or 5.48 pence per share to date. These proceeds have been fully reflected in the valuation of the company at 30 June 2017, as the Board consider the transaction was sufficiently progressed at 30 June to justify a valuation reflecting the full cash proceeds.

13. Financial statements for the year ended 31 December 2016

The financial information for the period ended 30 June 2017 does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial statements for the year ended 31 December 2016 have been filed with the Registrar of Companies. The auditor has reported on the financial statements for the year ended 31 December 2016 and that report was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

14. Half-Year Report

This Half-Year Report will shortly be made available on our website: www.mig4vct.co.uk and will be circulated by post to those shareholders who have requested copies of the Report. Further copies are available free of charge from the Company's registered office, 30 Haymarket, London SW1Y 4EX or can be downloaded via the website.

Contact details for further enquiries:

Jonathan McGuire at Mobeus Equity Partners LLP (the Company Secretary) on 020 7024 7600 or by e-mail on [e-mail]

Jonathan Gregory at Mobeus Equity Partners LLP (the Investment Adviser), on 020 7024 7600 or by e-mail on [e-mail].

DISCLAIMER

Neither the contents 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.

 

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