Half-Yearly Report
Mobeus Income & Growth 2 VCT plc
Half-Yearly Report for the six months ended 31 October 2013
INVESTMENT OBJECTIVE
Mobeus Income & Growth 2 VCT plc ("MIG2", the "Company" or the "VCT") is a
Venture Capital Trust ("VCT") managed by Mobeus Equity Partners LLP ("Mobeus")
investing primarily in established, profitable, unquoted companies.
The Company's objective is to provide investors with a regular income stream,
arising both from the income generated by the companies selected for the
portfolio and from realising any growth in capital.
Venture Capital Trust Status
Mobeus Income & Growth 2 VCT plc has satisfied the requirements as a Venture
Capital Trust under section 274 of the Income Tax Act 2007 ("ITA") and the
Directors intend to conduct the business of the Company so as to continue to
comply with that section.
FINANCIAL HIGHLIGHTS
Half-yearly results for the six months ended 31 October 2013
* Increase of 6.8% in total shareholder return (NAV basis) over the
half-year.
* The net asset value (NAV) cumulative total shareholder return per share
since launch* was 132.0 pence per share at 31 October 2013, up 7.2p in six
months.
* Total dividend of 5.0 pence per share to be paid on 21 March 2014.
* New investment activity of £1 million in period, plus a further £1.33
invested after the period-end.
* Loan stock repayments from investee companies totalled £2.5 million for the
half-year.
*16 December 2005, being the date shares were first allotted in the Ordinary
share (formerly C share) fund at 100 pence per share.
PERFORMANCE SUMMARY
The net asset value (NAV) per share as at 31 October 2013 was 114.0 pence
The table below shows the recent past performance of the original `O' funds
raised in 2000/2001 and the Ordinary share (formerly `C' share) funds raised in
2005/06.
Performance data for all fundraising rounds are shown in a table at the end of
this announcement.
Ordinary shares of 1 penny (formerly C shares until 10 September 2010)
Net Net asset Cumulative Share Cumulative total return
assets value per dividends price per share to
share paid per shareholders since
(NAV) share launch2&3
(£ million) (p) (p) (p)1 (NAV (Share
basis)4 price
basis)5
(p) (p)
Ordinary share fund (formerly C share fund until 10 September 2010)2
As at 31 27.3 114.0 18.0 93.5 132.0 111.5
October 2013
As at 30 April 25.7 106.8 18.0 70.3 124.8 88.3
2013
As at 31 24.6 99.2 14.0 67.4 113.2 81.4
October 2012
At close of 8.7 94.5 - - - -
Offer for
subscription in
2005
Former Ordinary share fund (raised in 2000/2001)3
As at 31 - 94.3 36.7 - 131.0 -
October 2013
As at 30 April - 88.3 36.7 - 125.0 -
2013
As at 31 - 82.1 33.4 - 115.5 -
October 2012
At close of 12.4 94.0 - - - -
Offer for
subscription in
2001
1 Source: London Stock Exchange.
2 Launch date 16 December 2005, as explained above.
3 Launch date 10 May 2000.
4 NAV as at 31 October 2013 plus cumulative dividends paid since fund launch.
5 Mid share price as at 31 October 2013 plus cumulative dividends paid since
fund launch.
CHAIRMAN'S STATEMENT
I am pleased to present the Half-Yearly Report of Mobeus Income & Growth 2 VCT
plc (the "Company") for the period from 1 May 2013 to 31 October 2013.
Performance for the six months ended 31 October 2013
Net asset value (NAV) per share has increased by 6.8% during the period from
106.75 pence per share at 30 April 2013 to 114.00 pence per share at 31 October
2013.
The cumulative NAV total return per share (being the closing net asset value
plus total dividends paid to date) since launch rose by 5.8% during the six
month period from 124.75 pence to 132.00 pence. This increase is predominantly
due to increases in investment valuations and some significant loan interest
receipts, boosting revenue returns.
Shareholders should note that the performance data in my statement relates to
the one Ordinary share class now in existence. Fundraising for this class
(which was formerly called the C share class) was launched on 20 September
2005. This single share class was created after a share class merger of the
former Ordinary and C share classes on 10 September 2010. To assist
shareholders to monitor the performance of their original Ordinary or C Share
investment in a particular fundraising on a consistent basis, we have included
separate performance data in the Performance Summary table above and at the end
of this announcement.
The Investment Portfolio
Portfolio valuations continued to increase, new deal activity remained at busy
levels and there was a healthy level of loan stock repayments.
Overall, the portfolio recorded realised and unrealised gains of £1.04 million
over the six month period. The portfolio under management was valued at £20.37
million at the period-end representing 103.8% of cost and an increase of 4.8%
in valuation over the period.
During the six month period to 31 October 2013, the Company invested £967,780
in Veritek Global Limited via the acquisition vehicle Madacombe Trading,
resulting in a £32,220 refund of the VCT's existing investment of £1 million in
Madacombe. A further £39,685 was also invested in Gro-Group Limited loan stock,
to finance the move to direct sales in Australia.
Following the period-end in November 2013, the Company completed a further
investment of £330,202 into the acquisition vehicle Culbone Trading to support
the MBO of Virgin Wine Online, one of the UK's leading online retailers of
wine. The Company's investment in Culbone Trading is now £1,330,202.
There have been a number of realisations, all from loan stock repayments during
the period, totalling £2.48 million.
Most significantly, in May 2013, Newquay Helicopters (2013) (formerly British
International) repaid in full its 2006 and 2009 loan stock, plus premium and
all outstanding interest arrears and penalties to date. This amounted to
capital proceeds totalling £1,248,800 and loan interest of £423,026.
Full details of the investment activity during the six months to 31 October
2013 and a summary of the performance highlights can be found in the Investment
Manager's Review below.
Revenue Account
The results for this period are set out in the Unaudited Income Statement below
and show an improved revenue gain (after tax) of 3.47 pence per share (31
October 2012: gain of 0.77 pence).
The revenue return for the period of £834,749 is an increase of £643,461
(336.4%) from last year's comparable period. This is due to an exceptional rise
in income of £687,751, from last year's £453,084 to £1,140,835 now.
Income benefited from an increase in loan stock interest of £683,669 (being an
increase of 175.8%, compared to the comparable period last year). The main
contributor is the large arrears receipt from Newquay Helicopters (2013)
Limited of £423,026 following the repayment of its two original loans as
referred to above. New loan stock investments in Gro-Group, Fullfield
(Motorclean) and ATG Media have also contributed to the increase and, as a
result, annualised loan stock income now stands at £953,688 (31 October 2012: £
764,486).
Expenses charged to the Revenue Account have risen by £6,958. Fund management
fees rose by £5,262, as the amount charged to the Income Statement in total
increased by 6.93%, in line with the higher net assets than the equivalent
period last year. Other expenses have risen slightly by £1,696 in the period to
£151,793 (2012: £150,097). This increase was due to higher trail commission
costs arising from higher net assets and higher professional fees offset by
lower printing costs.
Strategy and Fundraising
Earlier this month, shareholders will have received a Securities Note
containing an Offer for shares in the Company, as part of a Linked Offer for
subscription launched on 28 November 2013, to raise an aggregate of up to £24
million in conjunction with Mobeus Income & Growth VCT plc, Mobeus Income &
Growth 4 VCT plc and The Income & Growth VCT plc.
I wish to take this opportunity to explain the background to this development.
In my Chairman's Statement in the 2013 Annual Report, I reported that the
Board, aware of the level of new investment opportunities, was considering
whether the Company should raise further funds. Subsequently, the Board decided
they did wish to raise additional funds, and agreed to become one of the
Companies participating in the current Mobeus VCTs' Linked Offer.
At the Company's AGM held on Friday 20 September 2013, shareholders approved
the changes to Company's strategy as outlined below:
1. Extension of the life of the Company until the fifth anniversary of the
latest allotment of shares, in order to maintain the tax reliefs on new
shares to be issued.
2. Adoption of a buyback policy with the objective of maintaining the discount
to the latest published NAV at 10% or less.
At the AGM, shareholders approved the above changes, and your Board has since
participated in the recent launch of the Linked Offer. This fundraising
anticipates a higher rate of new investment in the years ahead and the
increased assets will spread the Company's fixed running costs over a larger
asset base.
Change of financial year-end
In order to facilitate the process of allotting shares arising from the Linked
Offer and any future fundraisings, the Board has decided to change the
Company's financial year-end from 30 April to 31 March. Therefore the next set
of accounts will be for the 11 month period from 1 May 2013 to 31 March 2014
and future reports will be for years ending 31 March.
Dividends
The Board has declared an interim dividend of 4.9 pence per share for the
eleven months ending 31 March 2014. Following the change to the Company's
year-end, the dividend will be paid on 21 March 2014 to shareholders on the
Register on 28 February 2014. This is in addition to the interim dividend of
0.1 pence per share for the year ended 30 April 2013, as reported in the 2013
Annual Report, which the Company is required to pay in order to comply with VCT
rules. Therefore the total dividend to be paid on 21 March 2014 will be 5.0
pence per share.
The Board's objective is, subject to the availability of sufficient reserves
and liquidity, to distribute regular and consistent dividends of at least 4
pence per share per annum.
Share buybacks
During the period, the Company repurchased 150,000 shares for cancellation at a
price of 91.0 pence share, representing 0.62% (30 April 2013: 3.1%) of the
issued share capital. This buyback represented a discount to NAV of
approximately 20%. The current discount of the share price to NAV is
approximately 10%.
Possible VCT Legislation
Shareholders may wish to be aware of the following two developments. Firstly,
the Chancellor's Autumn Statement contained measures restricting tax relief on
subscriptions for shares in VCTs after 5 April 2014 where, within six months
before or after subscription, the investor disposes of shares in that VCT. If
introduced, as seems likely, such proposals may lead to a restriction on income
tax relief available to an investor for the issue of shares if, within six
months before or after subscription, the investor disposes of shares in the
Company. Secondly, HMRC is also considering proposals relating to the
availability of tax relief on dividends which are regarded by HMRC as returns
of capital. HMRC intends to hold a series of technical consultations on this
subject shortly.
Liquidity
The Board continue to consider and monitor credit risk in respect of its cash
balances extremely carefully.
In response to a change in VCT regulations, the Company can no longer add to
its investment in money market funds. It continues to hold £3.7 million in a
selection of money market funds with AAA credit ratings, and now also holds £
3.2 million at Barclays Bank, both as at 31 October 2013. In addition, the £2
million invested in acquisition vehicles is also held in money market funds
(reduced to £1 million following the use of Culbone to support the MBO of
Virgin Wine after the period end). The Company remains well positioned in the
short-term to make new investments and support suitable investment
opportunities within the portfolio if required, but has decided to raise
further funds so as to participate in a higher level of new investment
opportunities anticipated over the medium term.
Investment in qualifying holdings
The Company is required to meet the target set by HMRC of investing 70% of the
funds raised in qualifying unquoted and AIM quoted companies. The Company
exceeded this limit (based on VCT cost as defined in tax legislation, which
differs from the actual cost given in the Investment Portfolio Summary below)
throughout the period.
Industry awards for the Investment Manager
It is pleasing to report that the Investment Manager was named VCT Manager of
the Year 2013 for the second consecutive year at the unquote" British Private
Equity Awards 2013. The award recognised the high level of consistency achieved
by the Investment Manager during the year under consideration in maintaining
high standards in all areas of its activity including deals, exits, portfolio
management and fundraising. The Board is pleased that the work of the
Investment Manager has been acknowledged in this way.
Outlook
The outlook for the UK economy appears to have improved over the past few
months. Many forecasters now anticipate that economic growth will occur over
the next few years.
The Investment Manager is seeing an improved flow of opportunities to invest
more capital in smaller private companies with proven business models, good
management and sound financing. This rise in activity partly reflects the
improvement in the UK economic outlook and the continued perception that the UK
banking industry is reluctant to lend to smaller businesses.
The Board is mindful that the Company should have adequate liquidity to take
advantage of the increased number and quality of businesses currently being
evaluated by the Investment Manager. In view of the uncertain environment
described above, it is imperative that only the highest quality businesses are
selected with the terms of the deal structured so as to minimise the downside
risk to shareholders. The cautious approach of selecting well-run profitable
companies operating in niche markets is the primary reason for the quality of
the investment portfolio currently held within the Company.
If growth in the UK economy is sustained, prospects should improve further for
our existing and future portfolio companies. The Company's existing portfolio
contains a number of investments in companies which are progressing well, and
are capable of producing further growth in profits. Realisation of such
potential should provide exit opportunities and returns over the medium term
for shareholders.
I would like to take this opportunity to thank shareholders for their continued
support. The Securities Note recently sent to shareholders also contained an
invitation to a Shareholder Workshop on 21 January 2014, and the Board looks
forward to meeting any shareholders able to attend.
Nigel Melville
Chairman
18 December 2013
RESPONSIBILITY STATEMENT
In accordance with Disclosure and Transparency Rule (DTR) 4.2.10, Nigel
Melville (Chairman), Adam Kingdon (Chairman of the Audit Committee), Sally
Duckworth (Chairman of the Investment Committee) and Kenneth Vere Nicoll
(Chairman of the Nomination and Remuneration 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 the statement "Half-Yearly Reports" issued by the
Accounting Standards Board, gives a true and fair view of the assets,
liabilities, financial position and profit of the Company as required by
DTR 4.2.4;
b. the interim management report included within the Chairman's Statement,
Investment Policy, Investment Manager's Review and Investment Portfolio
Summary includes a fair review of the information required by DTR 4.2.7,
being an indication of 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 materially changed from those
identified in the Annual Report and Accounts for the year ended 30 April 2013.
The Board acknowledges that there is regulatory risk and continues to manage
the Company's affairs in such a manner as to comply with section 274 Income Tax
Act 2007.
The principal risks faced by the Company are:
* economic risk;
* loss of approval as a Venture Capital Trust;
* investment and strategic risk;
* regulatory risk;
* financial and operating risk;
* market risk;
* asset liquidity risk;
* market liquidity risk;
* credit/counterparty risk; and
* fraud and dishonesty risk.
A detailed explanation of the principal risks facing the Company can be found
on pages 18 and 19 and in Note 19 on pages 44 to 51 of the Annual Report and
Accounts for the year ended 30 April 2013. Copies are available from the
Company's website: www.mig2vct.co.uk.
RELATED PARTY TRANSACTIONS
There were no related party transactions in the first six months of the current
financial year that are required to be reported.
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 interim
management report which is included within the Chairman's Statement, Investment
Policy, Investment Manager's Review and Investment Portfolio Summary. The
Directors have satisfied themselves that the Company continues to maintain a
significant cash position, 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,
buy-backs 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 Note 19 on pages 44
to 51 of the Annual Report and Accounts for the year ended 30 April 2013.
Accordingly, the Directors continue to adopt the going concern basis of
accounting in preparing the Half-Yearly 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.
For and on behalf of the Board:
Nigel Melville
Chairman
18 December 2013
INVESTMENT POLICY
The Company's policy is to invest primarily in a diverse portfolio of UK
unquoted companies. Investments are structured as part loan and part equity in
order to receive regular income and to generate capital gains from trade sales
and flotations of investee companies.
Investments are made selectively across a number of sectors, primarily in
management buyout transactions (MBOs) i.e. to support incumbent management
teams in acquiring the business they manage but do not own. Investments are
primarily made in companies that are established and profitable.
The Company's cash and liquid resources may be invested to maximise income
returns in a range of instruments of varying maturities, subject to the
overriding criterion that the risk of loss of capital be minimised.
UK companies
The companies in which investments are made must have no more than £15 million
of gross assets at the time of investment and £16 million immediately following
the investment to be classed as a Venture Capital Trust ("VCT") qualifying
holding.
VCT regulation
The investment policy is designed to ensure that the Company continues to
qualify and is approved as a VCT by HM Revenue & Customs ("HMRC").
Amongst other conditions, the Company may not invest more than 15% of its
investments in a single company and must achieve at least 70 % by value of its
investments throughout the period in shares or securities in VCT qualifying
holdings, of which a minimum overall of 30% by value must be ordinary shares
which carry no preferential rights. In addition, although the Company can
invest less than 30% of an investment in a specific company in ordinary shares,
it must have at least 10% by value of its total investments in each VCT
qualifying company in ordinary shares which carry no preferential rights (save
as may be permitted under VCT rules).
The VCT regulations in respect of funds raised after 6 April 2011 have changed,
such that 70% of qualifying holdings invested with such funds must be held in
equity.
Asset mix
The Investment Manager aims to hold approximately 80% of net assets by value in
the Company's qualifying investments. The balance is held in readily realisable
interest bearing investments and deposits and in some non-qualifying holdings
in the same investee companies in which qualifying investments have been made.
Risk diversification and maximum exposures
Risk is spread by investing in a number of different businesses across
different industry sectors. To reduce the risk of high exposure to equities,
each qualifying investment is structured using a significant proportion of loan
stock (up to 70% of the total investment in each VCT qualifying company).
Initial investments in VCT qualifying companies are generally made in amounts
ranging from £200,000 to £2 million at cost, or such amounts as VCT legislation
permits. Normally, no holding in any one company will be greater than 10% (but
in any event will not be greater than 15%) of the value of the Company's
investments, based on cost, at the time of investment. Ongoing monitoring of
each investment is carried out by the Investment Manager, generally through
taking a seat on the board of each VCT qualifying company.
Co-investment
The Company aims to invest alongside the three other VCTs advised by the
Investment Manager with a similar investment policy. This enables the Company
to participate in larger combined investments advised on by the Investment
Manager.
Borrowing
The Company's articles of association permit borrowings of amounts up to 10% of
the adjusted capital and reserves (as defined therein), although the Company
has never borrowed and the Board has no current plans to undertake any
borrowing.
MANAGEMENT
The Board has overall responsibility for the Company's affairs including the
determination of its investment policy. Investment and divestment proposals are
originated, negotiated and recommended by the Investment Manager, Mobeus Equity
Partners LLP, and are then subject to formal approval by the Directors. Mobeus
Equity Partners LLP provides Company Secretarial and Accountancy services to
the Company.
INVESTMENT MANAGER'S REVIEW
Overview
The portfolio has made a satisfactory start to the year with encouraging
trading and cash generation from a number of companies in the portfolio,
causing a like for like rise in the portfolio's value of 4.8%. The rising trend
in terms of new deal activity towards the 2013 year end has continued with one
new investment completed in the period and one more completing after the period
end. Realisations have also continued at a healthy level with a number of
investee companies using their improved cash position to make partial or full
repayments of their loan stock.
New investment
In July 2013, the VCT completed a new investment of £967,780 using the VCT's
existing investment of £1 million in the seed company, Madacombe Trading,
resulting in a net repayment to the Company of £32,220. This investment
supported the MBO of Veritek Global Limited, a Europe-wide provider of
installation, maintenance and support services for blue-chip owners of a wide
range of complex imaging and printing equipment. The company has revenues in
excess of £25 million and around 300 staff across ten countries.
Following the period end in November 2013, the Company completed a further
investment of £330,202 into the acquisition vehicle Culbone Trading to support
the MBO of Virgin Wine Online Limited, one of the UK's leading online retailers
of wine. The Company's investment in this company now totals £1,330,202.
Follow-on investments
A small follow-on loan of £39,685 was advanced to Gro-Group Holdings Limited,
to finance the move to direct sales distribution in Australia, rather than use
a sales agent.
Realisations
The first six months of the year has seen further realisations that reflect the
way our portfolio investments are initially structured and that many of them
are generating positive cash flow. During the period, cash of £2,475,380
(excluding Madacombe's partial refund of £32,220) has been generated from part
or full loan stock repayments.
In May 2013, following the disposal of the company's major trading subsidiary,
Newquay Helicopters (2013) Limited (formerly British International Holdings
Limited) repaid the principal and premium of the first two loan stocks,
together with all interest arrears for total cash proceeds of £1,671,825. The
capital proceeds of £1,248,800 compare with an investment cost of £934,000, and
contributed to an overall return including interest of two times investment
cost, to date. This is a pleasing outcome and there is the prospect of further
returns of capital as the company realises its remaining assets.
In September 2013, Focus Pharma Holdings Limited repaid a further £1,000,000
across all Mobeus VCTs, of which £206,325 (including £63,914 premium) related
to the Company. After the period-end, Focus made a full repayment of the
remaining loan stock realising £207,616 (including £64,314 premium). These
repayments arise from a substantial improvement in Focus's profitability.
Strong cash flow at DiGiCo Global Limited enabled it to repay further loan
tranches totalling £420,437 in July and October.
In October 2013, Blaze Signs Holdings Limited fully repaid its remaining loan
stock realising £270,268 (including premium of £62,368).
Also in October 2013, Faversham House made a partial repayment of loan
realising £49,604 (including £6,283 premium), the cash for which was received
just after the period end. After the period end, Faversham has now fully repaid
the remaining loan, realising £77,552 (including £9,862 premium), which
represents our exit from what has been a disappointing investment. On a total
return basis (including interest received) we have recovered £350,297 of our
original investment cost of £374,870, or 93% of that original investment.
A number of other capital loan repayments have been made during the period,
totalling £279,946, being from EMaC (£228,276), Monsal Holdings Limited (£
25,632), and Tessella Holdings Limited (£26,038).
Portfolio review
The portfolio at 31 October 2013 comprised twenty-eight investments (2012:
thirty) with a cost of £19.6 million (2012: £22.8 million) and valued at £20.4
million (2012: £20.5 million). On a like for like basis, the portfolio has
increased by 4.81% compared with the valuations prevailing at 30 April 2013.
Over the same period the FTSE All-Share and FTSE SmallCap indices have risen by
5.76% and 13.88% respectively.
The portfolio's performance as a whole continues to be robust. The three main
uplifts in valuation have occurred at ASL, Blaze and Tessella. ASL is showing
signs of improvement with profits ahead of the prior year. Blaze Signs is
having an exceptional year, building on their involvement with Olympic
projects, and now benefiting from a large contract with a bank. This has
enabled it to repay all of its remaining VCT loans as noted above. Tessella has
made an encouraging start, and its valuation has now moved above its valuation
at the point of investment.
DiGiCo continues to remain highly profitable and is developing more new
products for its markets. Fullfield has traded well, and the extra resource
acquired as part of their acquisition have integrated well in to the existing
business.
ATG also continues to trade well, and is investing in new auction software that
should benefit the UK business and its recent US acquisition. EMaC is
performing ahead of budget with plans to offer more flexible service plans
which will meet market demands.
PXP and Plastic Surgeon continue to benefit from improvements in the
construction and house building sectors. PXP has a healthier order book.
Plastic Surgeon has maintained profits over the previous year, and plans to
recruit in order to meet increasing demand for its services. Uncertainty
remains in Youngman's markets, with orders from key customers down on the
previous year.
Outlook
The outlook for the UK economy is still uncertain although recent forecasts
have become more optimistic. Improved business confidence and the perception
that the UK banking industry is still reluctant to lend to smaller businesses
are resulting in a sustained and positive deal flow of opportunities. We are
hopeful that we will continue with a busy period of new investment during the
latter part of the year. The number and quality of deals being considered in
recent months has increased and we are confident that this will result in a
number of transactions being completed in the near future. However, we are
maintaining a prudent approach to making new investments.
We continue to be conscious of the need to ensure that investee companies take
appropriate actions to respond to the challenging environment ahead. We are
ensuring that the existing portfolio remains well capitalised, and that the
stronger companies build on their strengths. Based upon the potential in the
current portfolio, and the prospects for new investment, we are confident that
good returns can continue to be earned for investors.
Mobeus Equity Partners LLP
18 December 2013
INVESTMENT PORTFOLIO SUMMARY
as at 31 October 2013
Date of Total
first book cost at Valuation Valuation at % of net
investment/ 31 October at 30 April 31 October assets by
Sector 2013 2013 2103 value
£ £ £
Qualifying
investments
Unquoted
investments
ATG Media October 2008 1,631,830 3,334,643 3,279,082 12.0%
Holdings
Limited
Publisher and Media
online auction
platform
operator
Fullfield July 2011 1,624,769 1,920,275 1,900,470 7.0%
Limited,
trading as
Motorclean
Limited
Vehicle Support
cleaning and services
valet services
Ingleby (1879) October 2008 867,447 1,424,024 1,465,197 5.4%
Limited trading
as EMaC
Service plans Support
for the motor services
trade
Blaze Signs April 2006 437,030 1,143,484 1,310,994 4.8%
Holdings
Limited
Manufacturing Support
and services
installation of
signs
Tessella July 2012 854,687 880,725 1,159,177 4.3%
Holdings
Limited
Provision of Support
specialist services
scientific and
computer
programming
consultancy
Gro-Group March 2013 1,096,102 1,056,417 1,096,102 4.0%
Holdings
Limited
Baby sleep Retail
products
ASL Technology December 2010 1,360,130 611,725 1,056,692 3.9%
Holdings
Limited
Printer and Support
photocopier services
services
Ackling January 2012 1,000,000 1,000,000 1,000,000 3.7%
Management
Limited
Food Food production
manufacturing, & distribution
distribution
and brand
management
Culbone Trading April 2012 1,000,000 1,000,000 1,000,000 3.7%
Limited
Outsourced Support
services services
Madacombe April 2012 967,780 - 967,780 3.5%
Trading Limited
trading as
Veritek Global
Limited2
Engineering Support
services services
EOTH Limited October 2011 817,185 842,294 847,937 3.1%
trading as
Equip Outdoor
Technologies
Limited
Branded outdoor General
equipment and retailers
clothing
Focus Pharma October 2007 375,416 914,513 745,088 2.7%
Holdings
Limited
Licensor and Support
distributer of services
generic
pharmaceuticals
Youngman Group October 2005 1,000,052 699,966 699,966 2.6%
Limited
Manufacturer of Support
ladders and services
access towers
Machineworks April 2006 25,727 674,691 511,726 1.9%
Software
Limited
Software for Software and
CAM and machine Computer
tool vendors Services
RDL Corporation October 2010 1,000,000 663,859 442,734 1.6%
Limited
Recruitment Support
consultants for services
the
pharmaceutical
, business
intelligence
and IT
industries
The Plastic April 2008 392,264 353,544 369,395 1.4%
Surgeon
Holdings
Limited
Snagging and Support
finishing of services
domestic and
commercial
properties
Vectair January 2006 60,293 222,027 271,848 1.0%
Holdings
Limited
Design and sale Support
of washroom services
products
Newquay June 2006 226,000 997,500 226,000 0.8%
Helicopters
(2013) Limited
(previously
British
International
Holdings
Limited)
Helicopter Support
service services
operators
Lightworks April 2006 25,727 146,059 109,871 0.4%
Software
Limited
Software for Software and
CAD vendors Computer
Services
Faversham House December 2010 68,014 111,335 68,014 0.2%
Publisher, Media
exhibition
organiser and
operator of
websites for
the
environmental,
visual
communications
and building
services
sectors
PXP Holdings December 2006 1,220,579 57,143 57,143 0.2%
Limited
(Pinewood
Structures)
Design, Construction
manufacture and
supply of
timber frames
for buildings
Monsal Holdings December 2007 821,982 76,897 51,265 0.2%
Limited
Supplier of Engineering
engineering
services to the
water and waste
sectors
Racoon December 2006 878,527 250,551 27,269 0.1%
International
Holdings
Limited
Supplier of Personal goods
hair
extensions,
hair care
products and
training
Legion Group August 2005 150,000 - - 0.0%
plc
Provision of Support
manned Services
guarding,
mobile
patrolling, and
alarm response
services
Madacombe April 2012 - 1,000,000 - 0.0%
Trading Limited
2
Engineering Support
services services
Total unquoted 17,901,541 19,381,672 18,663,750 68.5%
investments
AiM quoted
investments
Omega December 2010 214,998 331,455 241,873 0.9%
Diagnostics
Group plc
In vitro Pharmaceuticals
diagnostics for
food
intolerance,
auto-immune
diseases and
infectious
diseases
Vphase plc March 2001 254,586 507 - 0.0%
(formerly
Flightstore
Group plc)
Development of Electronic and
energy saving electrical
devices for equipment
domestic use
Total AiM 469,584 331,962 241,873 0.9%
quoted
investments
Total 18,371,125 19,713,634 18,905,623 69.4%1
qualifying
investments
Non-qualifying
investments
DiGiCo Global July 2007 829,767 1,587,065 1,294,691 4.7%
Limited
(formerly
Newincco 1124
Limited)
Design and Technology,
manufacture of hardware and
audio mixing equipment
desks
Newquay 167,647 487,647 167,647 0.6%
Helicopters
(2013) Limited
(previously
British
International
Holdings
Limited)
ATG Media 104 647 627 0.0%
Holdings
Limited
Fuse 8 plc 250,000 - - 0.0%
Legion Group 106 - - 0.0%
plc
Total 1,247,624 2,075,359 1,462,965 5.3%
non-qualifying
investments
Total portfolio 19,618,749 21,788,993 20,368,588 74.7%
investments
Money market 3,727,300 13.7%
funds 3
Debtors 275,459 1.0%
Cash 3,212,949 11.8%
Creditors (314,421) (1.2%)
Net assets 27,269,875 100.0%
1 As at 31 October 2013 the Company held more than 70% of its total investments
in qualifying holdings, and therefore complied with the VCT investment test.
For the purposes of the VCT investment tests, the Company is permitted to
disregard disposals of investments for six months from the date of disposal.
2 The Company's existing investment in Madacombe Trading Limited of £1m was
used to make an investment in Veritek Global Limited of £967,780 resulting in a
net repayment of £32,220 to the Company. This £967,780 explains the difference
between investment additions above of £1,007,465 and additions per Note 9 of £
39,685.
3 Disclosed within Current assets as Investments at fair value in the Balance
Sheet.
UNAUDITED INCOME STATEMENT
for the six months ended 31 October 2013
Six months ended Year ended Six months ended
31 October 2013 30 April 2013 31 October 2012
(unaudited) (audited) (unaudited)
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £ £ £ £
Unrealised 9 - 1,041,227 1,041,227 - 2,556,199 2,556,199 - 99,858 99,858
gains on
investments
held at
fair value
Realised 9 - 6,283 6,283 - 34,319 34,319 - - -
gains/
(losses) on
investments
held at
fair value
Income 3 1,140,835 - 1,140,835 1,025,133 - 1,025,133 453,084 - 453,084
Investment 4 (81,217) (243,650) (324,867) (151,992) (455,974) (607,966) (75,955) (227,865)(303,820)
management
expense
Other (151,793) - (151,793) (322,286) - (322,286) (150,097) - (150,097)
expenses
Profit/ 907,825 803,860 1,711,685 550,855 2,134,544 2,685,399 227,032 (128,007) 99,025
(loss) on
ordinary
activities
before
taxation
Tax on 5 (73,076) 73,076 - (88,954) 88,954 - (35,744) 35,744 -
profit/
(loss) on
ordinary
activities
Profit/ 834,749 76,936 1,711,685 461,901 2,223,498 2,685,399 191,288 (92,263) 99,025
(loss) on
ordinary
activities
after
taxation
Basic and
diluted
earnings
per share
Ordinary 6 3.47p 3.64p 7.11p 1.87p 9.00p 10.87p 0.77p (0.37)p 0.40p
shares
The total column of this statement is the profit and loss account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations.
There were no other recognised gains or losses in the period.
Other than revaluation movements arising on investments held at fair value
through profit and loss there were no differences between the profit/(loss) as
stated above and at historical cost.
The notes to the unaudited financial statements below form part of these
Half-Yearly financial statements.
UNAUDITED BALANCE SHEET
as at 31 October 2013
31 October 2013 30 April 2013 31 October 2012
(unaudited) (audited) (unaudited)
Notes
£ £ £
Fixed assets
Investments at fair 9 20,368,588 21,788,993 20,472,274
value
Current Assets
Debtors 275,459 157,722 170,381
Current Investments 10 3,727,300 3,727,300 3,800,720
Cash at bank 3,212,949 211,420 316,362
7,215,708 4,096,442 4,287,463
Creditors: amounts (314,421) (190,059) (181,548)
falling due within
one year
Net current assets 6,901,287 3,906,383 4,105,915
Net assets 27,269,875 25,695,376 24,578,189
Capital and reserves 11
Called up share 239,207 240,707 247,673
capital
Capital redemption 67,440 65,940 58,974
reserve
Revaluation reserve 3,526,815 2,827,063 193,533
Special distributable 12,349,142 13,176,946 14,202,309
reserve
Profit and loss 11,087,271 9,384,720 9,875,700
account
27,269,875 25,695,376 24,578,189
Net asset value per
share
Ordinary shares 7 114.00p 106.75p 99.24p
UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the six months ended 31 October 2013
Six months Year Six months
ended ended ended
31 October 2013 30 April 2013 31 October 2012
(unaudited) (audited) (unaudited)
Notes £ £ £
Opening shareholders' 25,695,376 24,526,693 24,526,639
funds
Net share capital (137,186) (541,894) (55,116)
bought back 11
Profit for the period 1,711,685 2,685,399 99,025
Dividends refunded/ 8 - (974,768) 7,641
(paid) in period
Closing shareholders' 27,269,875 25,695,376 24,578,189
funds
UNAUDITED CASH FLOW STATEMENT
for the six months ended 31 October 2013
Six months Year Six months
ended ended ended
31 October 2013 30 April 2013 31 October 2012
(unaudited) (audited) (unaudited)
Notes £ £ £
Operating activities
Investment income 1,085,470 884,548 494,262
received
Dividend income 537 157,147 6,209
Other income - 6,678 -
Investment management (324,867) (607,966) (303,820)
fees paid
Other cash payments (129,078) (287,611) (111,895)
for other expenses
Net cash inflow from 632,062 152,796 84,756
operating activities
Investing activities
Acquisition of 9 (39,685) (281,207) (57,143)
investments
Disposal of 9 2,457,996 3,380,036 1,982,031
investments
Net cash inflow from 2,418,311 3,098,829 1,924,888
investing activities
Dividends
Equity dividends paid - (974,768) 7,641
Net cash inflow before 3,050,373 2,276,857 2,017,285
liquid resource
management and
financing
Financing
Purchase of own shares 11 (48,844) (517,829) (79,895)
Net cash outflow from (48,844) (517,829) (79,895)
financing
Management of liquid
resources
Decrease in monies - (1,627,394) (1,700,814)
held in current
investments
Increase in cash for 3,001,529 131,634 236,576
the period
Reconciliation of profit on ordinary activities before taxation to net cash
inflow from operating activities
for the six months ended 31 October 2013
Six months Year Six months
ended ended ended
31 October 2013 30 April 2013 31 October 2012
(unaudited) (audited) (unaudited)
£ £ £
Profit on ordinary 1,711,685 2,685,399 99,025
activities before taxation
Net unrealised gains on (1,041,227) (34,319) (99,858)
investments
Net gains on realisations (6,283) (2,556,199) -
on investments
(Increase)/decrease in (68,133) (55,888) 43,229
debtors
Increase in creditors and 36,020 2,027 42,360
accruals
Net cash inflow from 632,062 152,796 84,756
operating activities
The Notes to the unaudited financial statements below form part of these
Half-Yearly financial statements.
Notes to the Unaudited Financial Statements
1. Principal accounting policies
The following accounting policies have been applied consistently throughout the
period. Full details of principal accounting policies will be disclosed in the
Annual Report.
a) Basis of accounting
The unaudited results cover the six months to 31 October 2013 and have been
prepared under UK Generally Accepted Accounting Practice (UK GAAP), consistent
with the accounting policies set out in the statutory accounts for the year
ended 30 April 2013 and the 2009 Statement of Recommended Practice, `Financial
Statements of Investment Trust Companies and Venture Capital Trusts' ("the
SORP") issued by the Association of Investment Companies. The financial
statements are prepared under the historical cost convention except for the
revaluation of certain investments.
The Half-yearly Report has not been audited, nor has it been reviewed by the
auditors pursuant to the Auditing Practices Board (APB)'s guidance on Review of
Interim Financial Information.
b) Presentation of the Income Statement
In order to better reflect the activities of a VCT and in accordance with the
SORP, 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.
c) Investments
Investments are accounted for on a trade date basis.
All investments held by the Company are classified as "fair value through
profit and loss" 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,
recognition and fair value is determined by reference to Stock Exchange market
trading rules and quoted bid prices at the close of business on the balance
sheet date.
Unquoted investments are valued by the Directors at `fair value through profit
and loss'. Accordingly, in the absence of a market price, the Directors have
valued unquoted investments in accordance with International Private Equity
Venture Capital Valuation (IPEVCV) guidelines as updated in September 2009.
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, the following factors will be
considered:
(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) an earnings multiple basis. The shares may be valued by applying a suitable
price-earnings ratio to that company's historic, current or forecast post-tax
earnings before interest and amortisation (the ratio used being based on a
comparable sector but the resulting value being adjusted to reflect points of
difference identified by the Investment Manager 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.
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 Manager, will agree the values that
represent the extent to which an investment loss 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.
(iii) Premiums on loan stock investments are accrued at fair value when the
Company receives the right to the premium and when considered recoverable.
(iv) Where an earnings multiple or cost less impairment basis is not
appropriate and overriding factors apply, discounted cash flow or net asset
valuation bases may be applied.
d) Capital gains and losses
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.
2. The Company revoked its status as an investment company on 7 September 2005,
so that it can regard realised capital profits as part of the profits available
for distribution.
3. Income
Six months ended Year ended Six months ended
31 October 2013 30 April 2013 31 October 2012
(unaudited) (audited) (unaudited)
Income from £ £ £
investments
Dividends 59,416 135,481 48,314
Money-market funds 7,319 16,684 8,994
Loan stock interest 1,072,501 865,768 388,832
Bank deposit and other 1,599 991 735
interest
Other income - 6,209 6,209
Total Income 1,140,835 1,025,133 453,084
4. Investment management expense
Under the terms of a revised investment management agreement dated 10 September
2010, Mobeus provides investment advisory, administrative and company
secretarial services to the Company, for a fee of 2.0% per annum calculated on
a quarterly basis by reference to the net assets at the end of the preceding
quarter, plus a fee of £104,432 per annum, the latter being subject to changes
in the retail prices index each year. In the current period, the Board and the
Investment Manager have agreed that further RPI increases will not occur until
both parties agree. This agreement replaced the previous agreements with Mobeus
dated 10 May 2000 and 20 September 2005, both novated to Mobeus on 20 October
2006, and the accounting services agreement and the secretarial services
agreement with Matrix-Securities Limited both dated 20 September 2005, all of
which were terminated on 10 September 2010. In accordance with the policy
statement published under "Management and Administration" in the Company's
prospectus dated 10 May 2000, the Directors have charged 75% of the investment
management expenses to the capital account. This is in line with the Board's
expectation of the long-term split of returns from the investment portfolio of
the Company.
5. Taxation
There is no tax charge in the period as the Company has utilised tax losses
brought forward from previous years.
6. Basic and diluted earnings per share
Six months Year Six months
ended ended ended 31
31 October 2013 30 April 2013 October 2012
(unaudited) (audited) (unaudited)
Ordinary Ordinary Ordinary
shares shares shares
£ £ £
Total earnings after 1,711,685 2,685,399 99,025
taxation:
Basic and diluted earnings 7.11p 10.87p 0.40p
per share (note a)
Net revenue from ordinary 834,749 461,901 191,288
activities after taxation
Basic and diluted revenue 3.47p 1.87p 0.77p
earnings per share (note
b)
Net realised capital gains 1,041,227 2,556,199 99,858
Net unrealised capital 6,283 34,319 -
gains
Capital expenses (net of (170,574) (367,020) (192,121)
taxation)
Total capital return 876,936 2,223,498 (92,263)
Basic and diluted capital 3.64p 9.00p (0.37)p
earnings per share (note
c)
Weighted average number of 24,069,103 24,697,137 24,824,253
shares in issue in the
period
Notes:
a. Basic and diluted earnings per share is total earnings after taxation
divided by the weighted average number of shares in issue.
b. Basic and diluted revenue earnings per share is revenue earnings after
taxation divided by the weighted average number of shares in issue.
c. Basic and diluted capital earnings per share is total capital earnings
divided by the weighted average number of shares in issue.
7. Net asset value per share
As at 31 October As at 30 As at 31
2013 April 2013 October 2012
(unaudited) (audited) (unaudited)
£ £ £
Net assets 27,269,875 25,695,376 24,578,189
Number of shares in issue 23,920,716 24,070,716 24,767,305
Net asset value per share 114.00 p 106.75 p 99.24 p
(pence)
8. Dividends paid
Six months Year Six months
to 31 October to 30 April to 31 October
2013 2013 2012
(unaudited) (audited) (unaudited)
£ £ £
Ordinary shares
Interim capital dividend - 303,182 -
paid for the year ended 30
April 2013 of 1.25p per
share
Interim income dividend - 671,586 -
paid for the year ended 30
April 2013 of 2.75p per
share
Dividends refunded* - - (7,641)
Total - 974,768 (7,641)
* - This amount represents dividends that were paid on shares that were
subsequently bought back by the Company. As a result, the dividends have been
refunded to the Company.
An interim dividend of 0.1 pence per share for the year ended 30 April 2013 was
declared in the previous year. An interim dividend of 4.9 pence per share has
been declared in the current period. The aggregate of 5.0 pence per share will
be paid on 21 March 2014 to shareholders on the Register on 28 February 2014.
9. Summary of fixed asset investments at fair value during the period
Traded Unquoted Preference Qualifying Total
on AiM Ordinary shares loans
or OFEX shares
£ £ £ £ £
Cost at 1 May 2013 469,584 6,365,282 39,734 14,764,699 21,639,299
Unrealised gains/ 116,964 934,828 (16,736) 544,194 1,579,250
(losses) at 30 April
2013
Permanent impairment at (254,586) (400,106) - (774,864) (1,429,556)
30 April 2013
Value at 30 April 2013 331,962 6,900,004 22,998 14,534,029 21,788,993
Purchases at cost - - - 39,685 39,685
Sale proceeds - - - (2,507,600) (2,507,600)
(Decrease)/increase in (90,089) 991,200 - 140,116 1,041,227
unrealised gains
Reclassification at cost - (373,999) 699 373,300 -
/valuation
Realised gains - - - 6,283 6,283
Valuation at 31 October 241,873 7,517,205 23,697 12,585,813 20,368,588
2013
Book cost at 31 October 469,584 5,991,283 40,433 13,117,449 19,618,749
2013
Unrealised gains/ 26,875 2,409,798 (15,997) 278,762 2,699,438
(losses) at 31 October
2013
Permanent impairment at (254,586) (883,876) (739) (810,398) (1,949,599)
31 October 2013
Valuation at 31 October 241,873 7,517,205 23,697 12,585,813 20,368,588
2013
Unrealised (losses)/ (137,622) 534,722 (16,736) (230,670) 149,694
gains at 1 May 2013
Net movement in (90,089) 991,200 - 140,116 1,041,227
unrealised
(depreciation)/
appreciation in the
period
Permanent impairments in - (483,770) (739) (35,535) (520,044)
the period
Realisation of - 483,770 739 (405,547) 78,962
previously unrealised
gains/(losses)
(Losses)/gains on (227,711) 1,525,922 (16,736) (531,636) 749,839
investments at 31
October 2013
Investment sale proceeds shown in the Cash Flow Statement of £2,457,996 differ
to that shown above by £49,604. This is due to a loan repayment from Faversham
House Holdings Limited which settled after the period end.
10. Current asset investments at fair value
Current asset investments comprise investments in four OEIC money market funds
(three Dublin based and one London based), managed by Blackrock Investment
Management (UK) Ltd, Royal Bank of Scotland, Federated Prime Rate Capital
Management and Scottish Widows Investment Partnership. All of this sum, £
3,727,300 (30 April 2013: £3,727,300; 31 October 2012: £3,800,720), is subject
to same day access.
11. Movement in share capital and reserves
Called up Capital Special Profit
share redemption Revaluation distributable and loss
capital reserve reserve reserve account Total
£ £ £ £ £ £
At 30 April 240,707 65,940 2,827,063 13,176,946 9,384,720 25,695,376
2013
Shares bought (1,500) 1,500 - (137,186) - (137,186)
back
Transfer of - - - (690,618) 690,618 -
realised
capital losses
to Special
distributable
reserve (note)
Realised gain - - - - 6,283 6,283
on investments
Realisation of - - (341,475) - 341,475 -
previously
unrealised gain
Profit for the - - 1,041,227 - 664,175 1,705,402
period
At 31 October 239,207 67,440 3,526,815 12,349,142 11,087,271 27,269,875
2013
The cost of shares bought back shown in the Cash Flow Statement of £48,844
differs to that disclosed above by £88,342. This is due to an opening share
buyback creditor of £48,844 settled during the period and a closing balance of
£137,186.
The Special distributable reserve provides the Company with a reserve out of
which it can fund buy-backs of the Company's shares as and when it is
considered by the Board to be in the interests of the shareholders, and to
absorb any existing and future realised losses. Under Resolution 11 of the
Annual General Meeting held on 20 September 2013, shareholders authorised the
Company to purchase its own shares pursuant to section 693(4) of the Companies
Act 2006. The authority is limited to a maximum of 14.99% of the issued
Ordinary share capital of the Company, and will unless, previously revoked or
renewed, expire on the conclusion of the Annual General Meeting of the Company
to be held in 2014.
The maximum price that may be paid for Ordinary shares will be an amount equal
to 105% of the average of the middle market quotation as taken from the London
Stock Exchange daily official list for the five business days immediately
preceding the day on which that Ordinary share is purchased. The minimum price
that may be paid for Ordinary shares is 1 penny per share. The authority
provides that the Company may make a contract to purchase Ordinary shares under
the authority conferred by this resolution prior to the expiry of such
authority which will or may be executed wholly or partly after the expiration
of such authority and may make a purchase of Ordinary shares pursuant to such
contract.
12. Statutory Information
The financial information set out in this Half-Yearly Report does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006. The information for the year ended 30 April 2013 has been extracted from
the latest published audited financial statements, which have been filed with
the Registrar of Companies. The auditors have reported on these financial
statements and that report was unqualified and did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
13. Half-Yearly Report
Copies of this statement are being sent to all shareholders. Further copies are
available free of charge from the Company's registered office, 30 Haymarket,
London, SW1Y 4EX, or can be downloaded via the Company's website at
www.mig2vct.co.uk.
INVESTOR PERFORMANCE APPENDIX
Performance data at 31 October 2013
The two former 'C' and Ordinary classes of shares were merged on 10 September
2010, and the 'C' share class redesignated as Ordinary shares. The following
tables show, for all investors in the former share classes, how their
investments have performed since they were originally allotted shares in each
fundraising.
Total return data, which includes cumulative dividends paid to date, is shown
on both a share price and NAV basis as at 31 October 2013. The NAV basis
enables shareholders to evaluate more clearly the performance of the Investment
Manager, as it reflects the underlying value of the portfolio at the reporting
date. This is the most widely used measure of performance in the VCT sector.
Ordinary share fund
Share price as at 31 October 2013 93.50p 1
NAV per share as at 31 October 2013 114.00p
Cumulative total return
per share to shareholders
since allotment
Allotment Allotment Net Cumulative (Share (NAV % increase
date(s) price allotment dividends price) basis) since 30
price 2 paid per basis) April 2013
share4 (NAV basis)
(p) (p) (p) (p) (p) (%)
Funds raised 2005/06
Between 16 100.00 60.00 18.00 111.50 132.00 5.81%
December 2005
and 5 April
2006
Funds raised 2008/09
Between 3 92.39 64.67 14.00 107.50 128.00 6.00%
April 2009
and 18 June
2009
Former Ordinary share fund
Share price 77.32p
as at 31
October 2013
NAV per share 94.28p
as at 31
October 2013
Shareholders in the former Ordinary share fund received 0.827 shares in the
Company for each former Ordinary share that they held on 10 September 2010,
when the two share classes merged. Both the share price and the NAV per share
shown above have been adjusted using this merger ratio.
Cumulative total return
per share to shareholders
since allotment
%
increase
since 30
April
2013
Allotment date Allotment Net Cumulative (Share (NAV (NAV
(s) price allotment dividends paid price basis) basis)
price 2 per share4 basis)
(p) (p) (p) (p) (p) %
Funds raised 2000/01 3
Between 30 May 100.00 80.00 36.72 114.04 131.00 4.80%
2000 and 11
December 2000
1 - Source: London Stock
Exchange (mid-price basis).
2 - Net allotment price is the allotment price less applicable income tax
relief. The tax relief was 20% up to 5 April 2004, 40% from 6 April 2004 to 5
April 2006, and 30% thereafter.
3 - Investors in this fundraising may also have enhanced returns
if they had also deferred capital gains tax liabilities.
4 - For derivation, see table below.
Cumulative dividends paid
Funds Funds Funds
raised raised raised
2000/01 2005/06 2008/09
(p) (p) (p)
19 April 2013 3.31 1 4.00 4.00
20 April 2012 3.31 1 4.00 4.00
20 April 2011 3.31 1 4.00 4.00
10 September 2010 - Merger of Ordinary share fund and C share fund
13 August 2010 - 1.00 1.00
19 September 2009 - 1.00 1.00
23 July 2008 6.00 2.50
19 September 2007 6.00 1.50
8 February 2006 6.00
20 October 2005 6.00
24 September 2003 0.51
16 September 2002 1.35
10 September 2001 0.93
36.72 18.00 14.00
1 - The dividends paid after the merger of the share
classes on 10 September 2010 to former Ordinary share
fund shareholders have been restated to reflect the
merger conversion ratio of approximately 0.827.
Contact details for further enquiries:
Robert Brittain at Mobeus Equity Partners LLP (the Company Secretary) on 020
7024 7600 or by e-mail on mig2@mobeusequity.co.uk
Mark Wignall or Mike Walker at Mobeus Equity Partners LLP (the Investment
Manager), on 020 7024 7600 or by e-mail on info@mobeusequity.co.uk.
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.
Latest directors dealings
- 1 day ago IntegraFin Holding
- 1 day ago Spirent Communications
- 1 day ago CRH (CDI)
- 1 day ago Bezant Resources
- 1 day ago EJF Investments Ltd NPV