Half Yearly Report

RNS Number : 4248Q

Maven Income & Growth VCT 4 PLC

29 August 2014

 

Maven Income and Growth VCT 4 PLC

Interim Results for the Six Months Ended 30 June 2014 (Unaudited)

The Directors announce the unaudited interim results for the six months ended 30 June 2014.

Highlights

·      NAV total return of 128.85p per Ordinary Share at 30 June 2014, up from 127.90p at 31 December 2013;

·      NAV at period end of 96.90p per Ordinary Share after payment of the final dividend of 2.65p;

·      Four new investments added to the portfolio; and

·      Increased interim dividend declared of 2.10p per Ordinary Share (2013:2.00p).

Interim Review

Overview

The continuing objective for your Company is to achieve long term capital appreciation and generate maintainable levels of income for Shareholders, by investing in a diversified portfolio of later-stage private businesses and AIM/ISDX quoted companies with established revenue streams and strong growth potential. During the six month period to 30 June 2014, a combination of valuation uplifts, investment returns and realisation proceeds has resulted in a further increase in NAV total return, to 128.85p per Ordinary Share.  

During the reporting period the Maven team has continued to source suitable investment opportunities in profitable UK businesses, and the asset base now includes 50 private companies, the majority of which are trading in line with or ahead of plan, and paying a regular yield. This revenue is an important component in your Company's ability to sustain an attractive level of tax-free distributions to Shareholders, and consequently your Board is pleased to declare an increased interim dividend of 2.10p per Ordinary Share at the half-year.

Several significant new private companies were added to the portfolio during the six month period. In February 2014, Maven supported the management buy-out of SPS (EU) from 4imprint Group and, in March 2014, an investment was completed in London headquartered ISN Solutions Group, an IT support and services business. In the following month, Maven supported the buy-in/management buy-out of Forfar based RMEC Group, and just prior to the period end led a secondary buy-out of Just Trays from Gresham Private Equity. Drawdowns also commenced on the committed first ranking secured mezzanine loan to Maven Capital (Llandudno).

Dividends

The Board has declared an interim dividend of 2.10p per Ordinary Share, comprising 1.00p of revenue and 1.10p of capital, to be paid on 26 September 2014 to Shareholders on the Register at 5 September 2014. After receipt of the interim dividend, Ordinary Shareholders who invested in the Company at the outset will have received 34.05p per share in tax-free dividends. The effect of paying the dividend will be to reduce the NAV of the Company by the total cost of the distribution.

Portfolio Developments

The private equity portfolio has generally performed well, and a number of companies, including several of the most recent investments, are performing ahead of plan and already becoming valuable assets for your Company. Following the initial investment in December 2013, additional funding has been provided to D Mack to develop its range of passenger car tyres. The company's profile has been boosted by very strong performances at the 2014 World Rally Championship events.

Maven Co-invest Exodus, which is invested in Six Degrees Group, was established in 2011 to implement a buy & build strategy for the group, which has now completed 13 acquisitions in the telecommunications and IT sectors. The company is a broad based telecommunications business centred on the converging of mobile, fixed-line, broadband, internet and IT technology businesses, and delivered annual sales of £51.5 million for the year ended 31 March 2013.

A follow-on investment was made in Glacier Energy Services Group, an oil & gas service business headquartered in Aberdeen that is focused on growth within its core UK market. This investment funded the acquisition of Professional Testing Services, a business which provides a comprehensive range of non-destructive testing services to the oil & gas and renewable sectors.

In light of current trading your Board has taken the prudent step of reducing the valuation of the legacy holdings in Networks by Wireless and Higher Nature acquired under the merger with Ortus VCT PLC.

New Investments

During the period your Company participated in four new private equity transactions, alongside follow-on investments supporting the development of existing portfolio companies.

·      SPS (EU), the UK's market leading supplier of branded promotional merchandise, operating from a modern, well invested site in Blackpool. The company is well placed to expand by developing new products in an improving economy;

·      ISN Solutions Group, a business headquartered in London providing consultancy, project management and outsourced IT services to a niche client base in the upstream exploration and production oil & gas sector;

·      RMEC Group, a specialist provider of engineering solutions and pressure control equipment to the oil & gas industry; and

·      Just Trays, the UK's leading manufacturer of shower trays and related accessories, with all product design, development and production undertaken at its main facility in Leeds.

The following investments have been completed during the period:

			Investment cost
			£'000	£'000
Investment	Date	Sector	Ordinary Shares	C Ordinary Shares	Website
Unlisted
D Mack Limited	December 2013	Automobiles & parts	209	27	www.dmacktyres.com
Glacier Energy Services Group Limited	February 2014	Oil equipment services	188	-	www.glacier.co.uk
ISN Solutions Group Limited	March 2014	Software & computer services	348	55	www.isnsolutions.co.uk
JT Holdings (UK) Limited (trading as Just Trays)	June 2014	Household goods & textiles	448	75	www.just-trays.co.uk
Kelvinlea Limited	June 2014	Real estate	96	-	No website available
Maven Capital (Llandudno) LLP	February 2014	Real estate	243	-	No website available
Maven Capital (Telfer House) LLP	April 2014	Real estate	780	119	No website available
RMEC Group Limited	April 2014	Oil & Gas	398	65	www.rmecltd.co.uk
SPS (EU) Limited	February 2014	Support services	517	129	www.spseu.com
Total unlisted investment			3,227	470
Listed fixed income
Treasury Bill 16 June 2014	February 2014	UK Government	1,998	-
Treasury Bill 15 September 2014	May 2014	UK Government	2,999	500
Total listed fixed income investment			4,997	500
Total investment			8,224	970

At the period end, the combined Ordinary and C Share portfolios included 65 unlisted and quoted investments at a total cost of £23.6 million.

Realisations

The mezzanine loan provided to Tuscola (FC100) was repaid in full during May 2014, and in the following month your existing portfolio company Kelvinlea acquired Moriond in a transaction that will create synergies in the marketing process as the remaining residential properties held by both companies are sold.

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

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

Ordinary Shares			C Ordinary Shares
	Year first invested	Complete/ partial exit	Cost of shares disposed of £'000	Sales proceeds £'000	Realised gain/(loss) £'000	Cost of shares disposed of £'000	Sales Proceeds £'000	Realised gain/(loss) £'000
Unlisted
Attraction World Holdings Limited	2010	Partial	28	45	17	-	-	-
Ensco 969 Limited (trading as DPP)	2013	Partial	70	70	-	-	-	-
Kelvinlea Limited	2013	Partial	79	79	-	-	-	-
Maven Capital (Telfer House) LLP	2014	Complete	780	784	4	119	120	1
Moriond Limited	2011	Complete	42	79	37	-	-	-
Torridon (Gibraltar) Limited (formerly Torridon Capital Limited)¹	2010	Partial	97	92	(5)	-	-	-
Tuscola (FC100) Limited (previously Grangeford (FC100) Limited)	2012	Complete	400	400	-	-	-	-
Westway Services Holdings (2010) Limited¹	2009	Partial	68	60	(8)	-	-	-
Total unlisted disposals			1,564	1,609	45	119	120	1
Quoted
Brookwell Limited	2008	Partial	-	4	4	-	-	-
esure Group PLC	2010	Partial	-	30	30	-	-	-
Hasgrove PLC	2006	Partial	5	3	(2)	-	-	-
Plastics Capital PLC	2007	Partial	26	34	8	-	-	-
Vectura PLC	2004	Partial	-	-	-	28	49	21
Total quoted disposals			31	71	40	28	49	21
Listed fixed income
Treasury Bill 24 March 2014	2013	Complete	3,499	3,500	1	750	750	-
Treasury Bill 16 June 2014	2014	Complete	1,998	2,000	2	-	-	-
Total listed fixed income disposals			5,497	5,500	3	750	750	-
Total disposals			7,092	7,180	88	897	919	22

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

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

Material Developments Since the Period End

Since 30 June 2014, two follow-on investments have been completed in existing portfolio companies and one new private company asset has been added to the portfolio. In August 2014, a new investment was completed in Crawford Scientific Holdings, a leading supplier of chromatography products and services to blue-chip clients and laboratories across the UK, Europe and the US. The business will look to expand through organic growth and by making strategic bolt-on acquisitions.

Principal Risks and Uncertainties

The principal risks and uncertainties facing the Company were set out in full in the Strategic Report contained within the 2013 Annual Report, and are the risks associated with investment in small and medium sized unlisted and AIM/ISDX quoted companies, which by their nature, entail a higher level of risk and lower liquidity than investments in large quoted companies. The valuation of investee companies may be affected by economic conditions and the credit environment, and other risks include legislation, regulation, adherence to VCT qualifying rules and the effectiveness of the internal controls operated by the Company and the Manager. These risks and procedures are reviewed regularly by your Board and monitored continually by the Manager, and the Board has confirmed that all tests, including the criteria for VCT qualifying status, continue to be met.

As a Scottish registered Company it is acknowledged that there is uncertainty in relation to the referendum on Scottish independence due to take place on 18 September 2014. A number of investee businesses are located in Scotland, whilst the Manager is registered in England, and the Board considers that should the vote be in favour of independence, there will be a transition period during which there will be an opportunity to assess the impact and take any appropriate action.

Fund Raising

In September 2013, the Company announced that it planned to raise up to £4 million in a joint Offer for Subscription alongside the other Maven VCTs. The first allotment under the Offer took place on 3 February 2014 when 2,432,334 new Ordinary Shares were issued, and a further allotment of 1,292,767 new Ordinary Shares took place on 5 April 2014. The Offer was fully subscribed by 4 April 2014, and closed on 5 April 2014 in relation to the tax year 2013/14. In consideration of certain provisions contained within The Finance Bill 2014, which could have had adverse tax consequences for the Company and its Shareholders, the Board decided to postpone the issue of new shares under the Offer in respect of the 2014/15 tax year until there was certainty that the allotments could take place without contravening the new rules. HM Treasury has now clarified the operation of the proposed changes to regulations, and the Offer was subsequently closed on 30 May 2014, with a final allotment of 548,108 new Ordinary Shares taking place on 1 July 2014, using the over-allotment facility set out in the Prospectus.

The Company may use the money raised under the Offer to pay dividends and general running costs, thereby preserving for investment purposes an equivalent sum of more valuable 'old money' which operates under more advantageous VCT regulations. The proceeds of the Offer will also provide additional liquidity for the Company to make further later stage investments, and enable it to spread its costs over a larger asset base to the benefit of all Shareholders.

Share Buy-backs

Shareholders have given the Board authority to buy back Shares for cancellation or to be held in treasury, subject always to such transactions being in the best interests of Shareholders. It is intended that, subject to market conditions, available liquidity and the maintenance of the Company's VCT status, Shares will be bought back at prices representing a discount of up to 15% per Ordinary Share, and up to 20% per C Ordinary Share, to the prevailing NAV per share. During the period under review, 545,000 Ordinary Shares were bought back at a cost of £469,000.

Share Consolidation

The Company completed a merger with Ortus VCT PLC on 3 April 2013, details of which were contained in a shareholder circular and prospectus dated 1 March 2013. It was agreed that the common assets be merged into the Ordinary Share pool and, in view of the disproportionately high value of several of the legacy Ortus VCT PLC investments, that these be segregated into a new C Share pool, which would be managed separately for a period of up to two years. The C Shares would then be consolidated into the Ordinary Shares on a relative net asset basis (as provided for in the Articles of Association as amended at the time of the merger). As the C Shares pool investments have been materially realised and the proceeds reinvested alongside the Ordinary Shares pool, the Board has decided to accelerate the consolidation of the C Shares into the Ordinary Shares and create a single class of shares. It is the intention to undertake the share consolidation shortly.

VCT Regulatory Developments

The AIFM Directive came into force on 21 July 2011 and was implemented within the UK on 22 July 2013. The Board and the Manager have engaged legal advisers to ensure that the impact of the legislation has been considered fully, and the Directors have taken the decision to register Maven Income and Growth VCT 4 PLC as a self-managed small registered AIFM. This will enable the Company to take advantage of the reduced reporting requirements and avoid the direct and indirect costs of appointing a depositary. The Company was registered on 22 July 2014; governance and procedures are in place to ensure compliance with the Directive. 

The Association of Investment Companies (AIC) has participated in a consultation process to ensure the Government's continued long-term support for the VCT sector by addressing concerns from HM Treasury that enhanced share buy-back (EBB) schemes conflict with the public policy objectives of VCTs. Whilst the buy-back and cancellation of shares will continue to be permitted, EBBs are now prohibited.

HM Treasury had published draft legislation to address its concerns about the use of share premium accounts to return capital to investors, which will prevent VCTs returning capital within three years of the accounting period in which the shares were issued. These changes are effective from 6 April 2014 but, as the provisions may have affected the ability to pay dividends out of reserves created from the reduction of share premium or capital where the VCT had issued shares of the same class before and after 5 April 2014, the AIC sought clarification on this matter. HMRC has confirmed that the new rule will apply only in respect of returns of capital from shares issued on or after 6 April 2014, and the draft legislation was amended prior to receiving Royal Assent in July 2014.

Distribution of Annual and Interim Reports

The Board is aware that a number of Shareholders have expressed an interest in receiving notification, by post or e-mail, that documents, including annual and interim reports, are available on the Company's website as an alternative to receiving hard copies by post. The ability to do so is provided for under the Articles of Association. A letter of request is included with this Interim Report for Shareholders to complete and return to confirm whether or not they wish to take advantage of this facility. It should be noted that the option to receive hard copies of documents will still be available. However, should no letter of request be received advising to the contrary, Shareholders will be deemed as having given their consent to receiving only postal notifications that documents are available on the website. This will result in a significant cost saving for your Company.

Dividend Reinvestment Scheme

The Directors intend to implement an optional Dividend Reinvestment Scheme through which Shareholders may elect to have their entitlement to dividend payments used to apply for additional Ordinary Shares issued by the Company under the standing authority conferred by Shareholders at the Annual General Meeting held on 14 May 2014. Details of the scheme and an application form will be issued in advance of the payment of the final dividend for the year ending 31 December 2014.

Outlook

Your Company will continue to focus on investing at attractive entry values in established UK businesses that are capable of generating income and have significant potential for capital appreciation. The Board and the Manager believe this strategy continues to be the optimal approach to support a progressive dividend programme and to deliver consistent growth in Shareholder value.

Directors' Responsibility Statement

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

·      the Financial Statements for the six months ended 30 June 2014 have been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' issued in January 2009;

·       the Interim Management Report includes a fair review of the information required by DTR 4.2.7R in relation to the indication of important events during the first six months, and of the principal risks and uncertainties facing the Company during the second six months, of the year ending 31 December 2014; and

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

On behalf of the Board

Maven Capital Partners UK LLP

Secretary

29 August 2014

Summary of Investment Changes (Ordinary Shares)

For the Six Months Ended 30 June 2014

	Valuation 31 December 2013		Net investment/ (disinvestment)	Appreciation/ (depreciation)	Valuation 30 June 2014
	£'000	%	£'000	£'000	£'000	%
Unlisted investments
Equities	8,070	31.8	394	478	8,942	32.0
Preference shares	3	-	-	-	3	-
Loan stock	12,305	48.6	1,224	(229)	13,300	47.5
	20,378	80.4	1,618	249	22,245	79.5
AIM/ISDX investments
Equities	260	1.0	(41)	18	237	0.8
Listed investments
Equities	50	0.2	(30)	5	25	0.1
Fixed income	3,497	13.8	(503)	3	2,997	10.7
Total investments	24,185	95.4	1,044	275	25,504	91.1
Other net assets	1,155	4.6	1,323	-	2,478	8.9
Total assets	25,340	100.0	2,367	275	27,982	100.0

Summary of Investment Changes (C Ordinary Shares)

For the Six Months Ended 30 June 2014

	Valuation 31 December 2013		Net investment/ (disinvestment)	Appreciation/ (depreciation)	Valuation 30 June 2014
	£'000	%	£'000	£'000	£'000	%
Unlisted investments
Equities	1,363	37.5	93	(454)	1,002	34.1
Preference shares	623	17.2	257	(196)	684	23.3
Loan stock	1,986	54.7	350	(650)	1,686	57.4
AIM/ISDX investments
Equities	398	11.0	(49)	(8)	341	11.6
Listed investments
Fixed income	749	20.6	(250)	1	500	17.0
Total investments	3,133	86.3	51	(657)	2,527	86.0
Other net assets	498	13.7	(86)	-	412	14.0
Total assets	3,631	100.0	(35)	(657)	2,939	100.0

Investment Portfolio Summary                             

As at 30 June 2014

Ordinary Shares			C Ordinary Shares
								% of equity
	Valuation	Cost	% of total	Valuation	Cost	% of total	% of equity	held by other
Investment	£'000	£'000	assets	£'000	£'000	assets	held	clients¹
Unlisted
Torridon (Gibraltar) Limited (formerly Torridon Capital Limited)	1,853	682	6.7	-	-	-	3.7	36.3
Maven Co-invest Exodus Limited Partnership and Tosca Penta Exodus Mezzanine Limited Partnership (invested in Six Degrees Group)²	1,827	895	6.6	-	-	-	4.0	8.5
Ensco 969 Limited (trading as DPP)	1,217	1,217	4.3	-	-	-	4.6	29.9
Glacier Energy Services Group Limited	1,141	957	4.1	-	-	-	3.7	23.9
HCS Control Systems Group Limited (previously Burray Capital Limited)	836	836	3.0	-	-	-	7.8	32.5
Intercede (Scotland) 1 Limited (trading as EFC)	792	338	2.8	-	-	-	2.9	25.6
CatTech International Limited	792	498	2.8	-	-	-	4.8	25.3
Nenplas Holdings Limited	727	488	2.6	-	-	-	4.0	28.5
Manor Retailing Limited	600	600	2.1	125	125	4.3	11.7	38.1
Richfield Engineering Services Limited	600	600	2.1	125	125	4.3	11.7	38.1
Search Commerce Limited	600	600	2.1	125	125	4.3	11.7	38.1
Lambert Contracts Holdings Limited	664	664	2.4	59	59	2.0	12.3	52.4
Lemac No. 1 Limited (trading as John McGavigan)	701	698	2.5	-	-	-	9.1	27.7
Venmar Limited (trading as XPD8 Solutions)	651	651	2.3	-	-	-	6.0	29.0
R&M Engineering Group Limited	648	648	2.3	-	-	-	8.7	61.9
SPS (EU) Limited	517	517	1.8	129	129	4.4	6.5	36.0
Camwatch Limited	632	998	2.3	-	-	-	4.6	38.3
Lab M Holdings Limited	-	-	-	600	404	20.4	17.6	-
Vodat Communications Group Limited	592	592	2.1	-	-	-	6.9	34.9
Steminic Limited (trading as MSIS)	554	322	2.0	-	-	-	4.3	31.5
TC Communications Holdings Limited	554	777	2.0	-	-	-	8.1	21.9
JT Holdings (UK) Limited (trading as Just Trays)	448	448	1.6	75	75	2.6	5.7	24.3
D Mack Limited	445	445	1.6	57	57	1.9	4.9	25.1
Flexlife Group Limited	482	482	1.7	-	-	-	1.9	12.7
RMEC Group Limited	398	398	1.4	65	65	2.2	3.5	54.7
ISN Solutions Group Limited	348	348	1.2	55	55	1.9	4.6	50.4
LCL Hose Limited (trading as Dantec Hose)	398	398	1.4	-	-	-	7.1	22.9
Westway Services Holdings (2010) Limited	393	174	1.4	-	-	-	3.3	18.7
Adler & Allan Holdings Limited	391	280	1.4	-	-	-	1.0	5.6
CHS Engineering Services Limited	379	399	1.4	-	-	-	4.2	19.1
Maven Capital (Claremont House) Limited	284	284	1.0	71	71	2.4	11.9	88.1
Kelvinlea Limited	302	302	1.1	-	-	-	13.1	36.9
Space Student Living Limited	294	236	1.1	-	-	-	11.6	74.4
Attraction World Holdings Limited	278	98	1.0	-	-	-	6.2	32.2
Maven Capital (Llandudno) LLP	243	243	0.9	-	-	-	-	-
Lawrence Recycling and Waste Management Limited	219	854	0.8	-	-	-	8.4	53.6
Higher Nature Limited	-	-	-	200	600	6.7	11.2	-
Martel Instruments Holdings Limited	190	227	0.7	-	-	-	4.2	40.0
Claven Holdings Limited	150	88	0.5	-	-	-	10.2	39.9
Maven Co-invest Endeavour Limited Partnership (invested in Global Risk Partners Limited)²	102	102	0.4	-	-	-	4.3	95.7
Other unlisted investments	3	911	-	-	450	-
Total unlisted investments	22,245	20,295	79.5	1,686	2,340	57.4
Quoted
Vectura Group PLC	-	-	-	169	115	5.7	-	0.1
Plastics Capital PLC	115	85	0.4	-	-	-	0.4	1.7
Chime Communications PLC	91	56	0.4	-	-	-	-	-
Angle PLC	-	-	-	86	61	2.9	0.2	-
OMG PLC	-	-	-	61	80	2.1	0.2	-
Deltex Medical Group PLC	-	-	-	25	33	0.9	0.1	-
esure Group PLC	24	-	0.1	-	-	-	-	-
Work Group PLC	12	151	-	-	-	-	0.7	2.5
Brookwell Limited	10	21	-	-	-	-	-	-
Hasgrove PLC	4	12	-	-	-	-	0.1	0.5
Other quoted investments	6	372	-	-	-	-
Total quoted investments	262	697	0.9	341	289	11.6
Listed fixed income
Treasury Bill 15 September 2014	2,997	2,999	10.7	500	500	17.0
Total investments	25,504	23,991	91.1	2,527	3,129	86.0

¹Other Clients of Maven Capital Partners UK LLP

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

Income Statement
For the six months ended 30 June 2014
	Ordinary Shares (unaudited)			C Ordinary Shares (unaudited)			TOTAL
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments	-	275	275	-	(657)	(657)	-	(382)	(382)
Income from investments	560	-	560	31	-	31	591	-	591
Investment management fees	(84)	(335)	(419)	(9)	(37)	(46)	(93)	(372)	(465)
Other expenses	(131)	-	(131)	(20)	-	(20)	(151)	-	(151)
Net Return on ordinary activities before taxation	345	(60)	285	2	(694)	(692)	347	(754)	(407)
Tax on ordinary activities	(33)	33	-	-	-	-	(33)	33	-
Return attributable to equity shareholders	312	(27)	285	2	(694)	(692)	314	(721)	(407)
Earnings per share (pence)	1.1	(0.1)	1.0	-	(17.9)	(17.9)	1.1	(18.0)	(16.9)

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

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

Reconciliation of movements in Shareholders' Funds For the six months ended 30 June 2014

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

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

Income Statement
For the six months ended 30 June 2013

	Ordinary Shares (unaudited)			C Ordinary Shares (unaudited)			TOTAL
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments	-	907	907	-	(43)	(43)	-	864	864
Income from investments	389	-	389	5	-	5	394	-	394
Investment management fees	(78)	(311)	(389)	(5)	(19)	(24)	(83)	(330)	(413)
Other expenses	(132)	-	(132)	(11)	-	(11)	(143)	-	(143)
Net Return on ordinary activities before taxation	179	596	775	(11)	(62)	(73)	168	534	702
Tax on ordinary activities	(16)	16	-	-	-	-	(16)	16	-
Return attributable to Equity shareholders	163	612	775	(11)	(62)	(73)	152	550	702
Earnings per share (pence)	0.9	3.5	4.4	(0.6)	(3.2)	(3.8)	0.3	0.3	0.6

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

All items in the above statement are derived from continuing operations. The Company has only one class of business and derives its income from investments made in shares, securities and bank deposits. The total column of this statement is the Profit and Loss Account of the Company. Reconciliation of movements in Shareholders' Funds For the six months ended 30 June 2013 Ordinary Shares (unaudited) C Ordinary Shares (unaudited) S Ordinary Shares (unaudited) Total £'000 £'000 £'000 £'000 Opening Shareholders' funds  8,990  -  5,877 14,867 S Ordinary share consolidation to Ordinary  5,877  -  (5,877)  - Net Return for year  775  (73)  -  702 Issue of new Ordinary shares  6,272  -  -  6,272 Issue of new C Ordinary shares  -  3,969  -  3,969 Net proceeds of share issue  4,171  -  -  4,171 Repurchase and cancellation of shares  (174)  (95)  -  (269) Dividends paid - revenue  (161)  -  -  (161) Dividends paid - capital  (183)  -  -  (183) Closing Shareholders' funds 25,567  3,801 -  29,368 The accompanying notes are an integral part of the financial statements.

Income Statement
For the year ended 31 December 2013

		Ordinary Shares (audited)			C Ordinary Shares (audited)			TOTAL
		Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments		-	1,808	1,808	-	(120)	(120)	-	1,688	1,688
Income from investments		1,041	-	1,041	18	-	18	1,059	-	1,059
Investment management fees		(188)	(753)	(941)	(20)	(84)	(104)	(208)	(837)	(1,045)
Other expenses		(358)	-	(358)	(37)	-	(37)	(395)	-	(395)
Net return on ordinary activities before taxation		495	1,055	1,550	(39)	(204)	(243)	456	851	1,307
Tax on ordinary activities		(95)	95	-	-	-	-	(95)	95	-
Return attributable to equity shareholders		400	1,150	1,150	(39)	(204)	(243)	361	946	1,307
Earnings per share (pence)		1.8	5.3	7.1	(1.0)	(5.2)	(6.2)	0.8	0.1	0.9

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

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

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

Reconciliation of Movements in Shareholders' Funds For the year ended 31 December 2013

	Ordinary Shares (audited)	C Ordinary Shares (audited)	S Ordinary Shares (audited)	Total
	£'000	£'000	£'000	£'000
Opening Shareholders' funds	8,990	-	5,877	14,867
S Ordinary Share consolidation to Ordinary	5,877	-	(5,877)	-
Net Return for year	1,550	(243)	-	1,307
Issue of new Ordinary Shares	6,272	-	-	6,272
Issue of new C Ordinary Shares	-	3,969	-	3,969
Net proceeds of share issue	4,169	-	-	4,169
Merger Costs	(29)	-	-	(29)
Repurchase and cancellation of shares	(621)	(95)	-	(716)
Dividends paid - revenue	(423)	-	-	(423)
Dividends paid - capital	(445)	-	-	(445)
Closing Shareholders' funds	25,340	3,631	-	28,971

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

Balance Sheet As At 30 June 2014
				30 June 2014			30 June 2013			31 December 2013
				(unaudited)			(unaudited)			(audited)
				Ordinary	C Ord		Ordinary	C Ord		Ordinary	C Ord
				Shares	Shares	Total	Shares	Shares	Total	Shares	Shares		Total
				£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000		£'000
Fixed assets
Investments at fair value through profit or loss				25,504	2,527	28,031	24,378	3,697	28,075	24,185	3,133		27,318
Current assets
Debtors				551	195	746	420	9	429	467	214		681
Cash and overnight deposits				2,043	238	2,281	1,035	98	1,133	963	291		1,254
				2,594	433	3,027	1,455	107	1,562	1,430	505		1,935
Creditors: amounts falling due within one year				(116)	(21)	(137)	(266)	(3)	(269)	(275)	(7)		(282)
Net current assets				2,478	412	2,890	1,293	104	1,293	1,155	498		1,653
Total net assets				27,982	2,939	30,921	29,368	3,801	29,368	25,340	3,631		28,971
Capital and reserves
Called up share capital				2,887	386	3,273	2,621	386	3,007	2,569	386		2,955
Share premium account				13,577	3,572	17,149	10,381	3,572	13,953	10,350	3,572		13,922
Capital reserve - realised				(920)	(296)	(1,216)	890	(114)	776	(123)	(281)		(404)
Capital reserve - unrealised				1,512	(602)	910	36	(43)	(7)	1,325	77		1,402
Distributable reserve				10,122	(95)	10,027	11,038	-	11,038	10,591	(95)		10,496
Capital redemption reserve				173	11	184	67	11	78	119	11		130
Revenue reserve				631	(37)	594	534	(11)	523	509	(39)		470
Net assets attributable to Ordinary Shareholders				27,982	2,939	30,921	25,567	3,801	29,368	25,340	3,631		28,971
Net asset value per Ordinary Share (pence)				96.9	76.1		97.6	98.4		98.6	94.0

The Financial Statements were approved by the Board of Directors on 29 August 2014 and were signed on its behalf by:

I D Cormack

Chairman

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

Cash Flow Statement
For the six months ended 30 June 2014
	Six months to 30 June 2014			Six months to 30 June 2013			Year to 31 December 2013
	(unaudited)			(unaudited)			(audited)
	Ordinary	C Ord		Ordinary	C Ord		Ordinary	C Ord
	Shares	Shares	Total	Shares	Shares	Total	Shares	Shares	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Operating activities
Investment income received	493	31	524	338	(2)	336	946	3	949
Deposit interest received	2	-	2	-	-	-	2	-	2
Investment management fees paid	(564)	(46)	(610)	(258)	(24)	(282)	(744)	(104)	(848)
Secretarial fees paid	(40)	(6)	(46)	(42)	(4)	(46)	(80)	(11)	(91)
Directors' fees paid	(34)	(5)	(39)	(36)	(4)	(40)	(68)	(10)	(78)
Other cash payments/receipts	(90)	24	(66)	(3)	(2)	(5)	(215)	(208)	(423)
Net cash outflow from operating activities	(233)	(2)	(235)	(1)	(36)	(37)	(161)	(330)	(491)
Taxation
Corporation Tax	-	-	-	-	-	-	(4)	-	(4)
Financial investment
Purchase of investments	(8,224)	(970)	(9,194)	(17,852)	(3,740)	(21,592)	(22,367)	(1,407)	(23,774)
Sale of investments	7,180	919	8,099	7,631	-	7,631	17,797	1,459	19,256
Net cash (outflow)/inflow from financial investment	(1,044)	(51)	(1,095)	(10,221)	(3,740)	(13,961)	(4,570)	52	(4,518)
Equity dividends paid	(773)	-	(773)	(344)	-	(344)	(868)	-	(868)
Net cash outflow before financing	(2,050)	(53)	(2,103)	(10,566)	(3,776)	(14,342)	(5,603)	(278)	(5,881)
Financing
Issue of Ordinary Shares	3,599	-	3,599	10,443	3,969	14,412	4,169	-	4,169
Net cash balance acquired from merger	-	-	-	-	-	-	1,686	664	2,350
Repurchase of Ordinary Shares	(469)	-	(469)	(174)	(95)	(269)	(621)	(95)	(716)
Net cash inflow from financing	3,130	-	3,130	10,269	3,874	14,143	5,234	569	5,803
Increase/(decrease) in cash	1,080	(53)	1,027	(297)	98	(199)	(369)	291	(78)

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

Notes to the Financial Statements For the Six Months Ended 30 June 2014
1.	Accounting Policies
	The financial information for the six months ended 30 June 2014 and the six months ended 30 June 2013 comprises non-statutory      accounts within the meaning of section 435 of the Companies Act 2006.  The financial information contained in this report has been            prepared on the basis of the accounting policies set out in the Annual Report and Financial Statements for the year ended     31 December 2013, which have been filed at Companies House and which contained an Auditors' Report which was not qualified            and did not contain a statement under s498(2) or s498(3) of the Companies Act 2006.
2.	Movement in reserves
		Share	Capital	Capital		Capital
		premium	reserves	reserves	Distributable	redemption	Revenue
		account	realised	unrealised	reserve	reserve	reserve
	ORDINARY SHARES	£'000	£'000	£'000	£'000	£'000	£'000
	At 1 January 2014	10,350	(123)	1,325	10,591	119	509
	Gains on sales of investments	-	88	-	-	-	-
	Net increase in value of investments	-	-	187	-	-	-
	Investment management fees	-	(335)	-	-	-	-
	Dividends paid	-	(583)	-	-	-	(190)
	Tax effect of capital items	-	33	-	-	-	-
	Share Issue - 2014	3,227	-	-	-	-	-
	Repurchase and cancellation of shares	-	-	-	(469)	54	-
	Net return on ordinary activities after taxation	-	-	-	-	-	312
	At 30 June 2014	13,577	(920)	1,512	10,122	173	631
	Movement in reserves
		Share	Capital	Capital		Capital
		premium	reserves	reserves	Distributable	redemption	Revenue
		account	realised	unrealised	reserve	reserve	reserve
	C ORDINARY SHARES	£'000	£'000	£'000	£'000	£'000	£'000
	At 1 January 2014	3,572	(281)	77	(95)	11	(39)
	Gains on sales of investments	-	22	-	-	-	-
	Net decrease in value of investments	-	-	(679)	-	-	-
	Investment management fees	-	(37)	-	-	-	-
	Dividends paid	-	-	-	-	-	-
	Tax effect of capital terms	-	-	-	-	-	-
	Repurchase and cancellation of shares	-	-	-	-	-	-
	Net return on ordinary activities after taxation	-	-	-	-	-	2
	At 30 June 2014	3,572	(296)	(602)	(95)	11	(37)
	Total Reserves	17,149	(1,216)	910	10,027	184	594
3.	Return per ordinary share
					Six months ended
	ORDINARY SHARES					30 June 2014
	The returns per share have been based on the following figures:
	Weighted average number of Ordinary shares						28,098,205
	Revenue Return						£312,000
	Capital Return						(£27,000)
	Total Return						£285,000
	C ORDINARY SHARES
	The returns per share have been based on the following figures:
	Weighted average number of C Ordinary shares						3,863,876
	Revenue Return						£2,000
	Capital Return						(£694,000)
	Total Return						(£692,000)

Other information

Copies of this announcement will be available to the public at the registered office of the Company, Kintyre House, 205 West George Street, Glasgow G2 2LW, on the Company's website at www.mavencp.com/migvct4, and at the National Storage Mechanism.

Neither the content of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website)

is included in or forms part of this announcement.

By Order of the Board

Maven Capital Partners UK LLP, Secretary

29 August 2014

ENDS

 

END

 

 

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