Half-year Report

RNS Number : 3449Z

Mobeus Income & Growth 4 VCT PLC

14 September 2022

 

MOBEUS INCOME & GROWTH 4 VCT PLC

LEI: 213800IFNJ65R8AQW943

UNAUDITED HALF-YEAR RESULTS FOR THE SIX MONTHS TO 30 JUNE 2022

Mobeus Income & Growth 4 VCT plc ("the Company") announces its Half-Year results for the six months to 30 June 2022. These results were approved by the Board of Directors on 13 September 2022. You may, in due course, view the Half-Year Report, comprising the Unaudited Condensed Financial Statements of the Company by visiting www.mig4vct.co.uk.

Financial Highlights

As at 30 June 2022: Net assets: £86.13 million Net asset value ("NAV") per share: 94.66 pence

Results for the six months to 30 June 2022:

➤   There was a negative Net Asset Value ("NAV") total return¹ per share of (11.3)%. ➤   Share price total return 1 per share was 2.8%. ➤   The Board declared an interim dividend in respect of the current year of 4.00 pence per share, which was paid to Shareholders on 8 July 2022. Payment of this dividend increased cumulative dividends paid 1 since inception in 1998 to 147.20 pence per share. ➤   A further interim dividend for the year of 6.00 pence per share has been declared for payment on 7 November 2022. ➤   The Company made two new investments totalling £1.09 million and four follow-on investments totalling £0.80 million. ➤   £11.05 million of unrealised losses were incurred in the period. ➤   The Company realised investments totalling £4.34 million of cash proceeds and a net realised gain of £0.78 million for the six months to 30 June 2022.

1  Definitions of key terms and alternative performance measures ("APMs") / Key performance indicators ("KPIs") shown above and throughout this Report are shown in the Glossary of terms within the Half-Year Report.

PERFORMANCE SUMMARY

The longer-term trend of performance based upon cumulative total return per share (NAV basis) is shown in the chart below:-

Reporting date NAV per Share Cumulative dividends paid per share Cumulative total return per share to shareholders (NAV Basis) As at (p) (p) (p) 30 June 2022 94.66¹ 143.20¹ 237.86 31 December 2021 111.27 139.20 250.47 31 December 2020 81.50 134.20 215.70 31 December 2019 74.90 124.20 199.10 31 December 2018 84.79 105.20 189.99 31 December 2017 86.57 101.20 187.77

1 These figures exclude the impact of a dividend in respect of the year ending 31 December 2022 of 4.00 pence per share paid after the period-end on 8 July 2022. Payment of this dividend will reduce the Company's NAV per share and increase cumulative dividends paid to date by 4.00 pence per share. The chart above shows the recent past performance of the original funds raised in 1999.  The original subscription price was 200p per share before the benefit of income tax relief. Subscription prices from subsequent fundraisings and historic performance data from 2008 are shown in the Investor Performance Appendix at 30 June 2022 on the Company's website at: www.mig4vct.co.uk where they can be accessed by clicking on the word "table" under "Reviewing the performance of your investment" heading on the home page. On 1 August 2006, Mobeus became sole Investment Adviser to the Company. The cumulative NAV total return at this date was 122.51 pence.

Chairman's Statement

I am pleased to present the Company's Half-Year Report for the six months to 30 June 2022. Overview The first six months of the Company's financial year have been notable for significant economic disruption both domestically and internationally. December 2021 was a high watermark in many technology and growth markets, and since then we have experienced a number of significant global events such as the Russian invasion of Ukraine, the return of inflation to 40-year highs and heightened political uncertainty in the UK and across Europe. All of this has led to marked volatility across markets and a general de-rating of growth stocks. Performance As a consequence of the factors described above, the Company has experienced a negative NAV total return of (11.3)% over the six months to 30 June 2022 (2021: positive 28.5%). Share price total return was in positive territory at 2.8% (2021: 34.1%) but markets remain very volatile and the results for the six months to 30 June 2022 necessarily provide only a snapshot as at the reporting period end. This value decline has been largely driven by market multiples rather than underlying trading performance at this stage, as markets have factored in the likely impact of inflation and higher interest rates on consumer spending and business investment. The negative NAV total return for the period was principally comprised of unrealised falls in the value of investments still held, tempered somewhat by the successful exit from Media Business Insight ("MBI"), loan repayments and deferred proceeds received from the realisation of Red Paddle in December 2021. Investment portfolio In the face of the current testing environment the portfolio has, thus far, remained relatively resilient. Nevertheless, the Investment Adviser has started to see indicators of customer retrenchment as consumer confidence declines. There was a fall of £10.27 million, or 15.7%, in the overall value of the portfolio across the six months to 30 June 2022 (2021: increase of £19.95 million, or 47.9%) on a like for like basis compared to the opening value of the portfolio at 1 January 2022. A significant proportion of this asset movement reflected a value decline in the AIM-listed Virgin Wines investment which, in spite of positive news flows and the relative outperformance of its peers, has suffered from the de-rating of its sector. The Company completed one successful exit during the period, generating proceeds of £3.84 million from the sale of Media Business Insight. Returns received over the life of this investment amounted to 2.2x multiple of cost and an IRR of 13.7%. Further proceeds from loan repayments and deferred consideration amounted to £0.49 million. Global supply shortages remain a significant factor and are expected to continue to cause disruption going forward. The economic backdrop falls largely outside of the experience of this generation of management teams and advisers. As such, the experience of seasoned investment managers will be increasingly important in the coming months. Investment activity during the period has been strong, with two new and four follow-on investments completed during the period, totalling £1.89 million. History suggests that, although the economic backdrop is challenging, investing throughout the cycle is a fruitful strategy, with investments made in previous downturns in many cases subsequently yielding very strong returns. During the six months under review, the Company invested a total of £1.09 million into two new investments: a retail software provider (Proximity Insight) and a marketing technology business (Bidnamic). In addition, four follow-on investments totalling £0.80 million were made into a provider of UK leisure and experience breaks (Caledonian Leisure), a dairy and allergen-free ice cream brand (Northern Bloc), a provider of premium electric vehicle chargers (Andersen EV) and a workforce management software business (RotaGeek). Access to additional resources following the move to Gresham House is very welcome in this regard. Since the period-end, the Company has also made two follow-on investments and two new investments. £0.62 million into an AI and Urban Traffic Control business (Vivacity) and £0.33 million into a hair colourants brand (Bleach London), both existing businesses. £0.50 million was newly invested into FocalPoint, a navigation and positioning technology company and £0.44 million into Orri Limited, a specialist private clinic, for those aged 16+, for expert treatment of Anorexia, Bulimia and Binge Eating Disorder. During such turbulent times, doing everything in our power to support the portfolio is an imperative. The Investment Adviser is making full use of its Talent Management teams in helping to support management teams across the portfolio. Such specialist skills are a key benefit of the move to Gresham House. Details of this investment activity and the performance of the portfolio are contained in the Investment  Review and the Investment Portfolio Summary below. Revenue account The results for the period are set out in the Unaudited Condensed Income Statement on pages 12 to 13 of the Half-Year Report and show a revenue return (after tax) of 0.19 pence per share (2021: 0.11 pence per share). The revenue return for the period of £0.17 million has increased from last year's figure of £0.09 million. This is mainly due to a significant loan interest receipt upon the sale of MBI. Dividends The Board continues to be committed to providing an attractive dividend stream to Shareholders and was pleased to declare an Interim dividend of 4.00 pence per share for the year ending 31 December 2022. This dividend was paid on 8 July 2022, to Shareholders on the Register on 27 May 2022, and brought cumulative dividends paid per share since inception to 147.20 pence. An additional interim dividend of 6.00 pence per share is declared for payment on 7 November 2022 for those shareholders on the Register of Members at 16 September 2022. The Company's ongoing target of paying a dividend of at least 4.00 pence per share in respect of each financial year has been achieved and often exceeded in all 12 years since it was established. Whilst the Board still believes this dividend target is attainable, it should be noted that the continued movement of the portfolio to a larger share of younger growth capital investments could lead to increased volatility, which may affect the return in any given year. The Company's Dividend Investment Scheme ("DIS") provides Shareholders with the opportunity to reinvest their cash dividends into new shares in the Company at the latest published NAV per share (adjusted for dividends paid). New VCT shares attract the same tax reliefs as shares purchased through an Offer for Subscription. There were 508,732 shares allotted through the DIS during the period at an average price of 99.57 pence. Shareholders can opt-in to the DIS by completing a mandate form available on the Company's website at www.mig4vct.co.uk or can opt-out by contacting Link Group, using the details provided under Shareholder Information on pages 24-25 of the Half-Year Report. Please note that instructions received take 15 days to become effective. To the extent that dividends are paid other than out of income or from gains on investments, for instance out of special distributable reserves, Shareholders should note this may result in a reduction in NAV over the period. Offer for Subscription As announced recently, the Board intends to launch joint offers for subscription for new ordinary shares in the 2022/23 tax year alongside the other Mobeus VCTs. The Board expects to convene a general meeting of shareholders to seek the necessary authority to allot shares and disapply pre-emption rights in connection with the fundraising. Shareholders will have received a Circular in September confirming the amount to be raised and the purposes for which the funds will be used in advance of the General meeting for consideration. We urge all Shareholders to submit their proxy votes online in respect of the resolutions proposed via the Link Group shareholder portal: www.signalshares.com . If Shareholder approval is obtained, the Board expects to be in a position to launch the offer for subscription later this month, full details of which will be contained in the prospectus on the Company's website: www.mig4vct.co.uk . Liquidity The Board continues to monitor credit risk in respect of its cash and near cash resources and to prioritise the security and protection of the Company's capital. Cash and liquidity fund balances as at 30 June 2022 amounted to £33.36 million representing 38.7% of net assets. After the period-end, following the payment of a 4.00 pence per share dividend, the pro-forma level of liquidity will be £30.29 million (36.5% of net assets). Share buy-backs During the six months to 30 June 2022, the Company bought back and cancelled 269,283 of its own shares, representing 0.3% (2021: 0.8%) of the shares in issue at the beginning of the period, at a total cost of £0.26 million (2021: £0.60 million), inclusive of expenses. It is the Company's policy to cancel all shares bought back in this way. The Board regularly reviews its buyback policy, where its priority is to act prudently and in the interest of remaining Shareholders, whilst considering other factors, such as levels of liquidity and reserves, market conditions and applicable law and regulations. Under this policy, the Company seeks to maintain the discount at which the Company's shares trade at approximately 5% below the latest published NAV. Shareholder communications May I remind you that the Company has its own website which is available at:  www.mig4vct.co.uk . The Investment Adviser held its most recent Shareholder Event on behalf of all four Mobeus VCTs in early 2022. The event was well received and the Investment Adviser plans to hold another event in 2023.Further details will be circulated to Shareholders and shown on the Company's website in due course. Fraud Warning We are aware of a number of cases where Shareholders are being fraudulently contacted or are being subjected to attempts of identity fraud. Shareholders should remain vigilant of all potential financial scams or requests for them to disclose personal data. The Board strongly recommends Shareholders take time to read the Company's Fraud warning section, including details of who to contact, contained within the Information for Shareholders section on pages 24 and 25 of the Half-Year Report. Succession Planning I have stated my intention to retire as Chairman and a Director of the Company following the conclusion of the Company's Annual General Meeting in May 2023. The Board intends to appoint Graham Paterson as Chairman of the Company to succeed me. It has therefore begun its recruitment process for a Non-Executive Director to succeed Graham, who will step down from his role as Chairman of the Audit Committee. In its recruitment process, the Nomination & Remuneration Committee will give careful consideration to the diversity of skills, experience, gender and background of the wider Board, whilst also ensuring that the candidate selected has the requisite skills and experience to discharge their duties effectively as a Director and Chairman of the Audit Committee. Outlook The economic impacts for the next twelve months and perhaps beyond can be expected to be challenging. However, such conditions can provide a good opportunity to make high quality investments and build strategic stakes in businesses with great potential for the future. The exit environment is likely to dampen somewhat, although this is not foreseen to be a significant issue given that the VCT fund is not time-limited. On the whole, your Board is confident that, with continued and targeted support, the portfolio remains on track to overcome its challenges and achieve its growth ambitions. Jonathan Cartwright Chairman 13 September 2022

Investment Policy

The investment policy is designed to meet the Company's objective. Investments The Company invests primarily in a diverse portfolio of UK unquoted companies. Investments are made selectively across a number of sectors, principally in established companies. Investments are usually structured as part loan stock and part equity in order to produce a regular income stream and to generate capital gains from realisations. There are a number of conditions within the VCT legislation which need to be met by the Company and which may change from time to time. The Company will seek to make investments in accordance with the requirements of prevailing VCT legislation. Asset allocation and risk diversification policies, including the size and type of investments the Company makes, are determined in part by the requirements of prevailing VCT legislation. No single investment may represent more than 15% (by VCT tax value) of the Company's total investments at the date of investment. Liquidity The Company's cash and liquid funds are held in a portfolio of readily realisable interest-bearing investments, deposit and current accounts, of varying maturities, subject to the overriding criterion that the risk of loss of capital be minimised. Borrowing The Company's Articles of Association permit borrowing of up to 10% of the adjusted capital and reserves (as defined therein). However, the Company has never borrowed and the Board would only consider doing so in exceptional circumstances.

Investment Review

Portfolio review Demand for growth capital investment remains strong and there continues to be a healthy pipeline of investment opportunities. The current economic climate, whilst challenging for businesses across the portfolio, also presents great opportunities to develop potential through investment. The portfolio movements in the period are summarised as follows: 2022 £m 2021 £m Opening portfolio value 65.58 41.68 New and follow-on investments 1.89 3.83 Disposal proceeds (4.33) (5.42) Net realised gains 0.78 1.14 Unrealised v aluation movements (11.05) 18.81 Portfolio value at 30 June 52.87 60.04 The six months to 30 June 2022 has seen volatility translate into a decline in market ratings.  The portfolio value has reduced as a result of this, in spite of largely resilient underlying trading performances. The Company made two new growth capital investments during the period: £0.61 million into Proximity Insight and £0.48 million into Bidnamic. Both these companies are retail technology businesses. The Company also achieved a satisfying exit from Media Business Insight ("MBI") during the period, receiving a total of £3.84 million in proceeds, contributing to total receipts of £4.23 million during the period. The investment and divestment activity during the period has further increased the proportion of the portfolio comprised of growth substantially made up of investments made since the 2015 VCT rule change. These investments amount to 89.2% by value at the period-end (31 December 2021: 77.1%). After the period-end, the Company invested a further £0.62 million into Vivacity, an existing portfolio company. Vivacity is a developer of artificial intelligence and Urban Traffic Control systems.  Following its initial series A funding in 2021, the business has doubled the size of its team and partnered with leading firms in the automotive and environmental measurement industries. Also, after the period end, £0.33 million was further invested into Bleach (London). It also made a new investment  of £0.50 into FocalPoint, a next-generation navigation and positioning technology company and £0.44 million was invested into Orri Limited, a specialist private clinic, for those aged 16+, for expert treatment of Anorexia, Bulimia and Binge Eating Disorder. The portfolio's valuation changes in the six-month period to 30 June are summarised as follows: Investment Portfolio Capital Movement 2022 £m 2021 £m Increase in the value of unrealised investments 0.81 19.12 Decrease in the value of unrealised investments (11.86) (0.31) Net (decrease)/increase in the value of unrealised investments (11.05) 18.81 Realised gains 0.78 1.20 Realised losses - (0.06) Net realised gains in the period 0.78 1.14 Net investment portfolio movement in the period (10.27) 19.95 Valuation changes of portfolio investments still held From the total value increases of £0.81 million within the portfolio, the principal movements were in Bella and Duke: £0.40 million and Tharstern: £0.36 million. Bella and Duke has relatively maintained its existing customer base despite the slowdown in securing new customers due to the current economic environment. Improved trading for Tharstern through new business wins and cost controls have enhanced its valuation. The main reductions within total valuation decreases of (£11.86) million, were in Virgin Wines £(6.02) million; MyTutor £(1.51) million and MPB Group £(1.24) million. The portfolio's largest asset by value at the start of the year, Virgin Wines, has consistently delivered robust trading performance relative to its peers and continued to release positive news flow. Nevertheless, the value of the AIM-listed stock has been impacted by the general de-rating of its sector. MyTutor has generated strong revenues in the year to date.  However, a significant reduction in comparator multiples has reduced the value of this investment.  Finally, MPB has seen a reduction in benchmark multiples and accelerated its cash spend for growth but is yet to see this translate into revenues for valuation purposes. Realised gains and deferred consideration receipts The Company realised its investment in MBI during the period under review, generating gains in the period of £0.38 million. These contributed to a multiple of cost of 2.2x over the life of the investment. The Company also received deferred proceeds of £0.40 million from the realisation of Red Paddle in a previous period. Investment portfolio yield and capital repayments In the period under review, the Company received the following amounts in loan interest and dividend income: Portfolio income and yield 2022 £m 2021 £m Interest received in the period 0.55 0.42 Dividends received in the period 0.07 0.07 Total portfolio income in the period1 0.62 0.49 Portfolio Value at 30 June 52.87 60.04 Portfolio Income Yield (Income as a % of Portfolio Value at 30 June) 1.2% 0.8% 1  Total portfolio income in the period is generated solely from investee companies within the portfolio. See Note 4 of the Financial Statements for all income receivable by the Company. In addition to realisation proceeds and deferred consideration receipts outlined earlier, the Company also received loan stock repayments of £0.09 million from MBI earlier in the period.

New investments during the period The Company made two new investments totalling £1.09 million during the period, as detailed below:

Company Business Date of Investment Amount of new investment (£m)

Proximity Insight Retail Software February 2022 0.61 Proximity Insight (proximityinsight.com) is a retail technology business that offers a "Super-App" that is used by the customer-facing teams of brands and retailers to engage, inspire and transact with customers. Headquartered in London with offices in New York and Sydney, Proximity Insight has a global client base that includes over 20 brands, boutiques and department stores in fashion, beauty, jewellery, electronics and homewares. These clients use Proximity Insight's platform to blur the lines between physical and digital retail, enhancing the customer experience and improving the lifetime value of their customers by upwards of 35%. The business grew annual recurring revenue by 117% to £2.2 million in 2021, and the investment will support Proximity Insight's continued product development and international growth. The investment was made across all six VCTs advised and managed by Gresham House, including the two Baronsmead VCTs. Bidnamic Marketing technology business May 2022 0.48 Lads Store Limited, trading as "Bidnamic" ( www.bidnamic.com ) is a marketing technology business that offers a SaaS platform for online retailers to optimise their search engine marketing spend. The technology was all developed internally and uses bespoke machine learning algorithms to automate the management and optimisation of online retailers' Google shopping spend. The ARR of the business has grown substantially over the last two years and this is projected to continue. The investment round will be used to further enhance the product's capabilities and drive continued ARR growth through expanding the sales & marketing team and building a presence in North America.  The investment was made across all six VCTs advised and managed by Gresham House, including the two Baronsmead VCTs. Follow-on investments during the period The Company made four further investments into existing portfolio companies, totalling £0.80 million, as detailed below: Company Business Date of Investment Amount of further investment (£m) Caledonian Leisure UK Leisure and experience breaks January/February 2022 0.22 Caledonian Leisure works with accommodation providers, coach businesses and other experienced providers (such as entertainment destinations and theme parks) to deliver UK-based leisure and experience breaks to its customers. It comprises two brands, Caledonian Travel (caledoniantravel.com) and UK Breakaways (ukbreakaways.com). The domestic leisure and experience travel market had been devastated by the COVID-19 pandemic, but the company was well-placed to expand as lockdown and travel restrictions eased. A series of planned investment tranches has helped the company prepare for and capitalise on the strong demand for UK staycation holidays. Northern Bloc Dairy and allergen-free ice cream producer April 2022 0.12 Northern Bloc Ice Cream (northern-bloc.com) is an an established food brand in the emerging and rapidly growing vegan market. By focusing on chef quality and natural ingredients, Northern Bloc has carved out an early mover position in the dairy and allergen-free ice cream sector. The company's  focus on plant-based alternatives has strong environmental credentials as well as it being the first ice cream brand to move wholly into sustainable packaging. Following the initial investment in December 2020, Northern Bloc has grown rapidly and strengthened its prospects. This further investment provides additional working capital and funds a new production facility to increase its resilience, flexibility and margins in the future. Andersen EV Provider of premium electric vehicle (EV) chargers May 2022 0.24 Muller EV Limited (trading as Andersen EV) (andersen-ev.com) is a design-led manufacturer of premium electric vehicle (EV) chargers. Incorporated in 2016, this business has secured high profile partnerships with household brands, establishing an attractive niche position in charging points for the high-end EV market. This follow-on funding is to further support its premium brand and product positioning whilst ensuring all new and existing products meet the most recent and highest safety and compliance standards. Andersen EV has continued its strong trading performance with revenue up over 300% year on year. RotaGeek Workforce management software June 2022 0.22 RotaGeek (rotageek.com) is a provider of cloud-based enterprise software to help larger retail, leisure and healthcare organisations to schedule staff effectively. This investment, alongside funds from a new investor and existing shareholders, will be used to capitalise on opportunities that will emerge as the retail sector recovers from lockdown restrictions. RotaGeek will also be expanding its presence in healthcare to help address the workforce management issues of a sector that is chronically overburdened at present.

Realisations during the period The Company realised its investment in MBI, as detailed below: Company Business Date of Investment Amount of further investment (£m) Media Business Insight Publishing and events business January 2015 to June 2022 £6.07 million 2.2x cost The Company realised its investment in MBI for £3.84 million (realised gain in the period: £0.38 million). Total proceeds received over the life of the investment were £6.07 million compared to an original investment cost of £2.72 million, representing a multiple on cost of 2.2x and an IRR of 13.7%.

New investments made after the period-end The Company made two further investments totalling £0.94 million, as detailed below: Company Business Date of Investment Amount of further investment (£m) FocalPoint Navigation and positioning technology company September 2022 0.50 FocalPoint Positioning Limited (trading as FocalPoint) (www.focalpointpositioning.com) is a DeepTech business with a growing IP and software portfolio. FocalPoint's proprietary technology applies advanced physics and machine learning to reduce costs and dramatically improve the satellite-based location sensitivity, accuracy, and security of devices such as smartphones, wearables, and vehicles. Across both the Mobeus VCTs and the Baronsmead VCTs, this £4m investment is part of a larger investment round alongside existing investor Molten Ventures. The investment will be used to grow and develop its business, hire additional staff and continue the development and roll out of its offerings.

Company Business Date of Investment Amount of further investment (£m) Orri A specialist private clinic September 2022 0.44 Orri Limited (www.orri-uk.com/) is a specialist service provider for patients over 16 suffering from eating disorders. Orri's intensive day care model addresses a gap in service provision between residential in-patient services and infrequent outpatient sessions. Across both the Mobeus VCTs and the Baronsmead VCTs, the £4.5m investment will be used to open a second Orri site as well as to accelerate growth in online services, provide a step-down outpatient service, and build out the business' head office team.

Further investments made after the period-end The Company made two further investments into existing portfolio companies, totalling £0.95 million, as detailed below: Company Business Date of Investment Amount of further investment (£m) Vivacity Artificial Intelligence and Urban Traffic Control (UTC) system June 2022 0.62 Vivacity (vivacitylabs.com) develops camera sensors with on-board video analytics software that enables real-time anonymised data gathering of road transport system usage. It offers city transport authorities the ability to manage their road infrastructure more effectively, enabling more efficient monitoring of congestion and pollution levels as well as planning for other issues, such as the changing nature of road usage (e.g. the increasing number of cyclists). The technology and software represent a significant leap forward for local planning authorities which have traditionally relied upon manual data collection methods. The growth capital funding will allow the management team to achieve deeper penetration of the UK transport management sector, explore opportunities internationally and commercialise its new Smart Junction offering. Revenues have grown 350% over the last three years and it has exceeded its most recent year's budget despite the onset of the COVID-19 pandemic. In April 2021, Vivacity won the Queen's Award for Enterprise: Innovation 2021. Bleach Hair Colourants Brand August 2022 0.33 Bleach London Holdings ("Bleach") is an established branded, fast-growing business which manufactures a range of haircare and colouring products. Bleach is regarded as a leading authority in the hair colourant market having opened one of the world's first salons focused on colouring and subsequently launched its first range of products in 2013. This further investment was part of a wider £5.5 million investment round alongside existing shareholders and a strategic partner. The funds will be used to consolidate the brands position in the UK market as well as drive further expansion and strategic penetration of the North American market.  Environmental, Social, Governance considerations Following the novation of the investment advisory agreement to Gresham House, who have a dedicated team which is focused on sustainability, this provides an opportunity to enhance the Company's existing protocols and procedures through the adoption of the highest industry standards. Under the new enlarged investment team, each investment executive is responsible for their own individual ESG objectives in support of the wider overarching ESG goals of the Investment Adviser. For further details, Gresham House published its second Sustainable Investment Report in April 2022, which can be found on its website at:  www.greshamhouse.com . Gresham House Asset Management Limited Investment Adviser 13 September 2022

INVESTMENT PORTFOLIO SUMMARY as at 30 June 2022

Total Total Total % of % of cost valuation valuation equity  portfolio at 30 June 2022 at 31 December 2021 at 30 June 2022 held by value Gresham House Asset Management Portfolio £ £ £ Preservica Limited 3,397,745 11,056,628 10,693,622 13.3% 20.2% Seller of proprietary digital archiving software MPB Group Limited 1,095,252 5,764,694 4,526,932 3.2% 8.6% Online marketplace for photographic and video equipment EOTH Limited (trading as Equip Outdoor Technologies) 951,471 4,847,187 4,043,046 1.7% 7.6% Branded outdoor equipment and clothing (including the RAB and Lowe Alpine brands) My TutorWeb Limited (trading as MyTutor) 2,464,757 5,015,751 3,511,020 5.3% 6.6% Digital marketplace connecting school pupils seeking one to one online tutoring Virgin Wines UK plc 45,915 9,486,219 3,470,568 8.3% 6.6% Online wine retailer Master Removers Group 2019 Limited (trading as Anthony Ward Thomas, Bishopsgate and Aussie Man & Van) 348,641 3,001,004 3,006,136 6.6% 5.7% A specialist logistics, storage and removals business End Ordinary Group Limited (trading as Buster and Punch) 1,496,785 3,305,392 2,987,455 7.8% 5.7% Industrial inspired lighting and interiors retailer Data Discovery Solutions Limited (trading as Active Navigation) 1,408,640 2,624,447 2,503,729 7.1% 4.7% Provider of global market leading file analysis software for information governance, security and compliance Bella & Duke Limited 877,381 2,050,122 2,452,629 4.4% 4.6% A premium frozen raw dog food provider Manufacturing Services Investment Limited (trading as Wetsuit Outlet) 2,333,102 2,331,133 1,967,122 6.4% 3.7% Online retailer in the water sports market Arkk Consulting Limited (trading as Arkk Solutions) 1,599,445 1,680,942 1,712,786 6.7% 3.2% Provider of services and software to enable organisations to remain compliant with regulatory reporting requirements Tharstern Group Limited 1,091,886 1,204,783 1,560,890 12.7% 3.0% Software based management information systems to the print sector Rota Geek Limited 1,092,500 765,890 992,446 4.1% 1.9% Workforce management software Connect Childcare Group Limited 846,007 994,110 937,439 3.0% 1.8% Nursery management software provider Vivacity Labs Limited 914,754 914,754 914,754 4.4% 1.7% Provider of artificial intelligence & urban traffic control systems Spanish Restaurant Group Limited (trading as Tapas Revolution) 1,219,096 739,557 734,928 6.7% 1.4% Spanish restaurant chain Caledonian Leisure Limited 547,502 695,000 663,343 6.6% 1.3% Provider of UK leisure and experience breaks Legatics Limited 663,011 663,011 663,011 6.0% 1.2% SaaS LegalTech software provider Pets' Kitchen Limited (trading as Vet's Klinic) 631,120 631,120 631,120 4.5% 1.2% Veterinary clinics IPV Limited 619,487 619,487 619,487 5.5% 1.2% Provider of media asset software Bleach London Holdings Limited 629,772 791,477 613,118 3.1% 1.2% Hair colourants brand Proximity Insight Holdings Limited 608,000 - 608,000 2.5% 1.2% Super-App used by customer-facing teams of brands and retailers to engage, inspire and transact with customers Northern Bloc Ice Cream Limited 425,670 498,768 555,832 6.3% 1.0% Supplier of premium vegan ice cream Lads Store Limited (trading as Bidnamic) 480,538 - 480,538 1.1% 0.9% SaaS platform for optimisation of search engine marketing spend CGI Creative Graphics International Limited 1,449,746 397,434 378,906 6.3% 0.7% Vinyl graphics to global automotive, recreation vehicle and aerospace markets Muller EV Limited (trading as Andersen EV) 585,598 195,200 329,398 8.8% 0.6% Provider of premium electrical vehicle (EV) changers Parsley Box Group plc 631,003 417,536 221,816 1.8% 0.4% Home delivered ambient ready meals targeting the over 60s RDL Corporation Limited 1,000,000 317,413 199,932 8.9% 0.4% Recruitment consultants within the pharmaceutical, business intelligence and IT industries Kudos Innovations Limited 328,950 81,979 72,883 3.0% 0.1% Online platform that provides and promotes academic research dissemination Jablite Holdings Limited (in members' voluntary liquidation) 376,083 49,597 49,597 9.1% 0.1% Manufacturer of expanded polystyrene products Veritek Global Holdings Limited 1,620,086 - - 15.4% 0.0% Maintenance of imaging equipment BookingTek Limited 582,300 - - 3.5% 0.0% Direct booking software for hotels Racoon International Group Limited 484,347 - - 0.0% 0.0% Supplier of hair extensions, hair care products and training Importer and distributor of artificial flowers, floral sundries and home decor products Disposals in period Media Business Insight Holdings Limited 3,560,047 15.7% 0.0% A publishing and events business focused on the creative production industries Total 32,846,590 64,700,682 52,102,483 98.5% Former Elderstreet Private Equity Limited Portfolio Cashfac Limited 260,101 851,035 725,731 2.9% 1.4% Provider of virtual banking application software solutions to corporate customers Sift Group Limited 135,391 32,750 39,722 1.3% 0.1% Developer of business-to-business internet communities Total 395,492 883,785 765,453 1.5% Total Investment Portfolio 33,242,082 65,584,467 52,867,936 100.0% Total Investment Portfolio by type Growth focused portfolio1 27,174,019 50,568,974 47,208,043 89.2% MBO focused portfolio1 6,068,063 15,015,493 5,659,893 10.8% Investment Adviser's Total 33,242,082 65,584,467 52,867,936 100.0% Notes 1 - The growth focused portfolio contains all investments made after the change in the VCT regulations in 2015 plus some investments that are growth in nature made before this date. The MBO focused portfolio contains investments made prior to 2015 as part of the previous MBO strategy.

Statement of the Directors' Responsibilities  Responsibility statements In accordance with Disclosure and Transparency Rule (DTR) 4.2.10, Jonathan Cartwright (Chairman), Graham Paterson (Chairman of the Audit Committee and Nomination and Remuneration Committee) and Chris Burke (Chairman of the Investment Committee), being the Directors of the Company confirm that to the best of their knowledge: a)  the condensed set of financial statements, which has been prepared in accordance with Financial Reporting Standard 104 "Interim Financial Reporting" gives a true and fair view of the assets, liabilities, financial position and profit of the Company, as required by DTR 4.2.10; b)  the Half-Year Management Report which comprises the Chairman's Statement, Investment Policy, Investment Review and the Investment Portfolio Summary includes a fair review of the information required by DTR 4.2.7, being an indication of the important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; c)  a description of the principal risks and uncertainties facing the Company for the remaining six months is set out below, in accordance with DTR 4.2.7; and d)  there were no related party transactions in the first six months of the current financial year that are required to be disclosed, in accordance with DTR 4.2.8. Principal risks and uncertainties In accordance with DTR 4.2.7, the Board confirms that the principal risks and uncertainties facing the Company have not materially changed from those identified in the Annual Report and Financial Statements for the year ended 31 December 2021 ("the Annual Report") and are not expected to change ahead of the year-end. The principal risks faced by the Company are: · Loss of approval as a Venture Capital Trust; · economic and political risk; · investment risk; · regulatory risk; · financial and operating risk; · market risk; · asset liquidity risk; and · environmental, social and governance emerging risk. A detailed explanation of the principal risks can be found in the Annual Report on pages 34 and 35 and in Note 15 on pages 72 to 79 of the Annual Report and Financial Statements for the year ended 31 December 2021, copies of which are available on the Investment Adviser's website, www.greshamhouse.com or by going directly to the VCT's website,  www.mig4vct.co.uk . Going concern The Board has assessed the Company's operation as a going concern. The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Half-Year Management Report. The Directors have satisfied themselves that Company's cash position, bolstered by the fundraising completed at the beginning of 2022 is adequate for the Company to continue as a going concern under any plausible stress scenario. The majority of companies in the portfolio continue to trade well and the portfolio taken as a whole remains resilient and well-diversified, although supply chain constraints and inflationary pressures are beginning to impact. The major cash outflows of the Company (namely investments, buybacks and dividends) are within the Company's control. The Board's assessment of liquidity risk and details of the Company's policies for managing its financial risks and capital are shown in Note 15 on pages 72 to 79 of the Annual Report and Financial Statements for the year ended 31 December 2021. Accordingly, the Directors continue to adopt the going concern basis of accounting in preparing the Half-Year report and annual financial statements. Cautionary statement This report may contain forward looking statements with regards to the financial condition and results of the Company, which are made in the light of current economic and business circumstances. Nothing in this report should be construed as a profit forecast. For and on behalf of the Board: Jonathan Cartwright Chairman 13 September 2022

UNAUDITED CONDENSED FINANCIAL STATEMENTS

Unaudited Condensed Income Statement for the six months to 30 June 2022

Six months ended 30 June 2022 Six months ended 30 June 2021 Year ended 31 December 2021 (unaudited) (unaudited) (audited) Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total £ £ £ £ £ £ £ £ £ Net investment portfolio (losses)/gains 10 - (10,266,686) (10,266,686) - 19,952,419 19,952,419 - 29,904,336 29,904,336 Income 4 699,999 - 699,999 496,873 - 496,873 1,354,209 - 1,354,209 Investment Adviser's fees 5 (247,680) (743,037) (990,717) (194,595) (583,787) (778,382) (428,601) (1,285,804) (1,714,405) Other expenses (261,117) - (261,117) (208,965) - (208,965) (460,888) - (460,888) Profit/(loss) on ordinary activities before taxation 191,202 (11,009,723) (10,818,521) 93,313 19,368,632 19,461,945 464,720 28,618,532 29,083,252 Tax on profit/(loss) on ordinary activities 6 (22,224) 22,224 - (4,371) 4,371 - (22,097) 22,097 - Profit/(loss) and total comprehensive income 168,978 (10,987,499) (10,818,521) 88,942 19,373,003 19,461,945 442,623 28,640,629 29,083,252 Basic and diluted earnings per ordinary share 7 0.19p (12.43)p (12.24)p 0.11p 23.08p 23.19p 0.53p 34.16p 34.69p The revenue column of the Income Statement includes all income and expenses. The capital column accounts for the net investment portfolio (losses)/gains (unrealised (losses)/gains and realised gains on investments) and the proportion of the Investment Adviser's fee charged to capital. The total column is the Statement of Total Comprehensive Income of the Company prepared in accordance with Financial Reporting Standards ("FRS"). In order to better reflect the activities of a VCT and in accordance with the 2014 Statement of Recommended Practice ("SORP") (updated in April 2021) issued by the Association of Investment Companies ("AIC"), supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement. The revenue column of profit attributable to equity shareholders is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Section 274 Income Tax Act 2007. All the items in the above statement derive from continuing operations of the Company. No operations were acquired or discontinued in the period/year. The notes to the unaudited financial statements below form part of these Half-Year Financial Statements.

Unaudited Condensed Balance Sheet  as at 30 June 2022 30 June 2022 30 June 2021 31 December 2021 (unaudited) (unaudited) (audited) Notes £ £ £ Fixed assets Investments at fair value 10   52,867,936 60,040,228   65,584,467 Current assets Debtors and prepayments   146,585 148,101   2,895,532 Current asset investments 9   30,938,168 24,529,923   20,475,179 Cash at bank 9   2,422,753 3,001,675   4,059,487   33,507,506 27,679,699   27,430,198 Creditors: amounts falling due within one year (241,463) (400,219) (227,411) Net current assets   33,266,043 27,279,480   27,202,787 Net assets   86,133,979 87,319,708   92,787,254 Capital and reserves Called up share capital   909,903 833,540   833,897 Share premium reserve   20,869,200 12,495,262   13,129,427 Capital redemption reserve   36,299 27,012   33,606 Revaluation reserve   20,436,687 27,540,590   32,819,832 Special distributable reserve   15,945,431 25,380,699   20,109,912 Realised capital reserve   26,145,111 19,355,977   24,028,652 Revenue reserve   1,791,348 1,686,628   1,831,928 Equity shareholders' funds   86,133,979 87,319,708   92,787,254 Basic and diluted net asset value: Basic and diluted net asset value per share 11 94.66p 104.76p 111.27p The financial information for the six months ended 30 June 2022 and the six months ended 30 June 2021 has not been audited. The notes to the unaudited financial statements below form part of these Half-Year Financial Statements.

Unaudited Condensed Statement of Changes in Equity for the six months ended 30 June 2022 Non-distributable reserves Distributable reserves Called up Share Capital Special Realised share premium redemption Revaluation distributable capital Revenue capital reserve reserve reserve reserve reserve reserve Total (Note a) (Note b) (Note b) For the six months ended 30 June 2022 Notes £ £ £ £ £ £ £ £ At 1 January 2022 833,897 13,129,427 33,606 32,819,832 20,109,912 24,028,652 1,831,928 92,787,254 Comprehensive income for the period (Loss)/profit for the period - - - (11,048,140) - 60,641 168,978 (10,818,521) Total comprehensive income for the period - - - (11,048,140) - 60,641 168,978 (10,818,521) Contributions by and distributions to owners Shares issued via Offer for Subscription (Note c) 73,612 7,426,388 - -  - - - 7,500,000 Issue costs and facilitation fees on Offer for Subscription (Note c) - (188,072) - - (40,749) - -  (228,821) Issue of shares under Dividend Investment Scheme 5,087 501,457 - - - - - 506,544 Shares bought back (Note d) (2,693) - 2,693 - (259,553) - - (259,553) Dividends paid 8 - - - - (3,143,366) - (209,558) (3,352,924) Total contributions by and distributions to owners 76,006 7,739,773 2,693 - (3,443,668) - (209,558) 4,165,246 Other movements Realised losses transferred to special reserve (Note a) - - - - (720,813) 720,813 - - Realisation of previously unrealised gains - - - (1,335,005) - 1,335,005 - - Total other movements - - - (1,335,005) (720,813) 2,055,818 - - At 30 June 2022 909,903 20,869,200 36,299 20,436,687 15,945,431 26,145,111 1,791,348 86,133,979 Notes: a): The Special distributable reserve also provides the Company with a reserve to absorb any existing and future realised losses and, when considered by the Board to be in the interests of Shareholders, to fund share buybacks and for other corporate purposes. The transfer of £720,813 to the special reserve from the realised capital reserve above is the total of realised losses incurred by the Company in the period. As at 30 June 2022, the Company has a special reserve of £15,945,431, all of which arises from shares issued more than three years after the end of the financial year in which they were issued. Reserves originating from share issues are not distributable under VCT rules if they are within three years of the end of an accounting period in which the shares were issued. b): The Realised capital reserve and the Revenue reserve together comprise the Profit and Loss Account of the Company. c): Under the Company's Offer for subscription launched on 20 January 2022, 7,361,191 Ordinary Shares were allotted on 9 March 2022, raising net funds of £7,271,179 for the Company. This figure is net of issue costs of £188,072 and facilitation fees of £40,749. d): During the period, the Company repurchased 269,283 of its own shares at the prevailing market price for a total cost (including stamp duty) of £259,553, which were subsequently cancelled. The notes to the unaudited financial statements below form part of these Half-Year Financial Statements. Unaudited Condensed Statement of Changes in Equity for the six months ended 30 June 2021 Non-distributable reserves Distributable reserves Called up Share Capital Special Realised share premium redemption Revaluation distributable capital Revenue capital reserve reserve reserve reserve reserve reserve Total For the six months ended 30 June 2021 Notes £ £ £ £ £ £ £ £ At 1 January 2021 840,040 12,495,262 20,512 10,205,933 26,563,547 16,738,215 1,597,686 68,461,195 Comprehensive income for the period Profit for the period - - - 18,812,482 - 560,521 88,942 19,461,945 Total comprehensive income for the period - - - 18,812,482 - 560,521 88,942 19,461,945 Contributions by and distributions to owners Shares bought back (6,500) - 6,500 - (603,432) - - (603,432) Dividends paid - - - - - - - - Total contributions by and distributions to owners (6,500) - 6,500 - (603,432) - - (603,432) Other movements Realised losses transferred to special reserve - - - - (579,416) 579,416 - - Realisation of previously unrealised gains - - - (1,477,825) - 1,477,825 - - Total other movements - - - (1,477,825) (579,416) 2,057,241 - - At 30 June 2021 833,540 12,495,262 27,012 27,540,590 25,380,699 19,355,977 1,686,628 87,319,708 The composition of each of these reserves is explained below: Called up share capital - The nominal value of shares originally issued, increased for subsequent share issues either via an Offer for Subscription or Dividend Investment Scheme or reduced due to shares bought back by the Company. Capital redemption reserve - The nominal value of shares bought back and cancelled is held in this reserve, so that the Company's capital is maintained. Share premium reserve - This reserve contains the excess of gross proceeds less issue costs over the nominal value of shares allotted under recent Offers for Subscription and the Company's Dividend Investment Scheme. Revaluation reserve - Increases and decreases in the valuation of investments held at the period-end are accounted for in this reserve, except to the extent that the diminution is deemed permanent. In accordance with stating all investments at fair value through profit and loss, all such movements through both revaluation and realised capital reserves are shown within the Income Statement for the period. Special distributable reserve - This reserve is created from cancellations of the balances upon the Share premium reserve, which are transferred to this reserve from time to time. The cost of share buybacks and any realised losses on the sale or impairment of investments (excluding transaction costs) are charged to this reserve. 75% of the Investment Adviser fee expense, and the related tax effect, that are charged to the realised capital reserve are transferred to this reserve. This reserve will also be charged any facilitation payments to financial advisers, which arose as part of an Offer for Subscription. Realised capital reserve - The following are accounted for in this reserve: • Gains and losses on realisation of investments; • Permanent diminution in value of investments; • Transaction costs incurred in the acquisition and disposal of investments; • 75% of the Investment Adviser fee expense and 100% of any performance incentive fee payable, together with the related tax effect to this reserve in accordance with the policies; and • Capital dividends paid. Revenue reserve - Income and expenses that are revenue in nature are accounted for in this reserve together with the related tax effect, as well as income dividends paid that are classified as revenue in nature. The notes to the unaudited financial statements below form part of these Half-Year Financial Statements.

Unaudited Condensed Statement of Cash Flows for the six months ended 30 June 2022 Six months ended 30 June 2022 Six months ended 30 June 2021 Year ended 31 December 2021 Notes (unaudited) (unaudited) (audited) £ £ £ Cash flows from operating activities (Loss)/Profit for the financial period (10,818,521) 19,461,945 29,083,252 Adjustments for: Net investment portfolio losses/(gains) 10,266,686 (19,952,419) (29,904,336) Decrease in debtors 169,170 255,467 87,812 Increase in creditors and accruals 14,052 45,409 23,302 Net cash outflow from operations (368,613) (189,598) (709,970) Corporation tax paid - - (103,452) Net cash outflow from operating activities (368,613) (189,598) (813,422) Cash flows from investing activities Sale of investments 10 4,341,501 5,424,072 12,231,857 Purchase of investments 10 (1,891,656) (3,835,185) (6,235,292) Net cash inflow from investing activities 2,449,845 1,588,887 5,996,565 Cash flows from financing activities Share issued as part of Offer for Subscription 7,500,000 - - Issue costs and facilitation fees as part of Offer for Subscription (228,821) - - Equity dividends paid 8 (266,603) - (6,106,267) Purchase of own shares (259,553) (556,183) (1,230,702) Net cash inflow/(outflow) from financing activities 6,745,023 (556,183) (7,336,969) Net increase/(decrease) in cash and cash equivalents 8,826,255 843,106 (2,153,826) Cash and cash equivalents at start of period 22,534,666 24,688,492 24,688,492 Cash and cash equivalents at end of period 31,360,921 25,531,598 22,534,666 Cash and cash equivalents comprise: Cash at bank and in hand 9 2,422,753 3,001,675 4,059,487 Cash equivalents 9 28,938,168 22,529,923 18,475,179 The notes to the unaudited financial statements below form part of these Half-Year Financial Statements.

Notes to the Unaudited Condensed Financial Statements Notes to the Unaudited Condensed Financial Statements for the six months ended 30 June 2022 1. Company information Mobeus Income and Growth 4 VCT plc is a public limited company incorporated in England, registration number 3707697. The registered office is 5 New Street Square, London EC4A 3TW. 2. Basis of preparation of the financial statements These Financial Statements have been prepared in accordance with accounting policies consistent with Financial Reporting Standard 102 ("FRS102"), Financial Reporting Standard 104 ("FRS104") - Interim Financial Reporting, with the Companies Act 2006 and the 2014 Statement of Recommended Practice, 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' ('the SORP') (updated in April 2021) issued by the Association of Investment Companies. The Half-Year Report has not been audited, nor has it been reviewed by the auditor pursuant to the Financial Reporting Council's (FRC) guidance on Review of Interim Financial Information. 3. Principal accounting policies The accounting policies have been applied consistently throughout the period. Full details of principal accounting policies will be disclosed in the Annual Report, while the policy in respect of investments is included within an outlined box at the top of note 10 on investments. 4. Income Six months ended Six months ended Year ended 30 June 2022 30 June 2021 31 December 2021 (unaudited) (unaudited) (audited) Income from investments £ £ £ Dividends   74,231   70,309 348,420 Loan stock interest   548,258   415,674 984,972 Money-market funds   59,788   758 2,258 Bank deposit interest   17,722   10,132 18,559 Total Income   699,999   496,873   1,354,209 5. Investment Adviser's fees and performance fees 25% of the Investment Adviser's fees are charged to the revenue column of the Income Statement, while 75% is charged against the capital column of the Income Statement. This is in line with the Board's expected long-term split of returns from the investment portfolio of the Company. 100% of any performance incentive fee payable for the year would be charged against the capital column of the Income Statement, as it is based upon the achievement of capital growth. Six months ended Six months ended Year ended 30 June 2022 30 June 2021 31 December 2021 (unaudited) (unaudited) (audited) Total Total Total £ £ £ Allocated to revenue return: Investment Adviser's fees 247,680 194,595 428,601 Allocated to capital return: Investment Adviser's fees 743,037 583,787 1,285,804 Total 990,717 778,382 1,714,405 6. Taxation Six months ended Six months ended Year ended 30 June 2022 30 June 2021 31 December 2021 (unaudited) (unaudited) (audited) Revenue Capital Total Revenue Capital Total Revenue Capital Total £ £ £ £ £ £ £ £ £ a)  Analysis of tax charge: UK Corporation tax on profits/(losses) for the period 22,224 (22,224) - 4,371 (4,371) - 22,097 (22,097) - Total current tax charge/(credit) 22,224 (22,224) - 4,371 (4,371) - 22,097 (22,097) - Corporation tax is based on a rate of 19.0% (2021: 19.0%) b) Profit/(loss) on ordinary activities before tax 191,202 (11,009,723) (10,818,521) 93,313 19,368,632 19,461,945 464,720 28,618,532 29,083,252 Profit/(loss) on ordinary activities multiplied by rate of corporation tax in the UK of 19.0% (2021: 19.0%) 36,328 (2,091,848) (2,055,520) 17,729 3,680,041 3,697,770 88,297 5,437,521 5,525,818 Effect of: UK dividends (14,104) - (14,104) (13,358) - (13,358) (66,200) - (66,200) Net investment portfolio losses/(gains) not allowable/(taxable) - 1,950,670 1,950,670 - (3,790,961) (3,790,961) - (5,681,824) (5,681,824) Losses not utilised - 118,954 118,954 - 106,549 106,549 - 222,206 222,206 Actual current tax charge 22,224 (22,224) - 4,371 (4,371) - 22,097 (22,097) - 7. Basic and diluted earnings per share The basic earnings, revenue return and capital return per share shown below for each period are respectively based on numerators i)-iii), each divided by the weighted average number of shares in issue in the period - see iv) below Six months ended Six months ended Year ended 30 June 2022 30 June 2021 31 December 2021 (unaudited) (unaudited) (audited) £ £ £ i) Total earnings after taxation (10,818,521) 19,461,945   29,083,252  Basic and diluted earnings per share (Note a) (12.24)p 23.19p   34.69p ii) Revenue earnings from ordinary activities after taxation 168,978 88,942   442,623 Basic and diluted revenue return per share (Note b) 0.19p 0.11p   0.53p Net investment portfolio (losses)/gains (10,266,686) 19,952,419   29,904,336 Capital Investment Adviser's fees less taxation (720,813) (579,416) (1,263,707) iii) Total capital return (10,987,499) 19,373,003 28,640,629 Basic and diluted capital return per share (Note c) (12.43)p 23.08p   34.16p iv) Weighted average number of shares in issue in the period 88,388,162 83,932,807   83,840,235 Notes: a) Basic earnings per share is total earnings after taxation divided by the weighted average number of shares in issue. b) Basic revenue return per share is the revenue return after taxation divided by the weighted average number of shares in issue. c) Basic capital return per share is the capital return after taxation divided by the weighted average number of shares in issue. 8 . Dividends paid Six months ended Six months ended Year ended 30 June 2022 30 June 2021 31 December 2021 (unaudited) (unaudited) (audited) Dividend Type For the year ended 31 December Pence per share Date paid £ £ £ Interim Income 2021 0.25p 06 August 2021   -    -    208,381 Interim Capital* 2021 4.75p 06 August 2021   -    -    3,959,226 Interim Income 2021 0.25p 07 January 2022   209,558   -    -  Interim Capital* 2021 3.75p 07 January 2022   3,143,366   -    -  Total Dividends Paid 3,352,924 - 4,167,607 * - These dividends were paid out of the Company's special distributable reserve. For the period ended 30 June 2022, £3,352,924 disclosed above differs to that shown in the Condensed Statement of Cash Flows of £266,603 due to £506,545 of new shares allotted subject to listing under the Company's Dividend Investment scheme and £2,579,776 in dividends paid to the registrar before the previous year end. The Board declared an interim dividend in respect of the year ending 31 December 2022 of 4.00 pence per share which was paid to Shareholders on 8 July 2022. 9. Current asset investments and cash at bank as at as at as at 30 June 2022 30 June 2021 31 December 2021 (unaudited) (unaudited) (audited) £ £ £ OEIC Money market funds 28,938,168 22,529,923 18,475,179 Cash equivalents per Statement of Cash Flows 28,938,168 22,529,923 18,475,179 Bank deposits that mature after three months 2,000,000 2,000,000 2,000,000 Current asset investments 30,938,168 24,529,923 20,475,179 Cash at Bank 2,422,753 3,001,675 4,059,487 10. Summary of movement on investments during the period The most critical estimates, assumptions and judgements relate to the determination of the carrying value of investments at "fair value through profit and loss" (FVTPL). All investments held by the Company are classified as FVTPL and measured in accordance with the International Private Equity and Venture Capital Valuation ("IPEV") guidelines, as updated in December 2018. This classification is followed as the Company's business is to invest in financial assets with a view to profiting from their total return in the form of capital growth and income. Purchases and sales of unlisted investments are recognised when the contract for acquisition or sale becomes unconditional. For investments actively traded on organised financial markets, fair value is generally determined by reference to Stock Exchange market quoted bid prices at the close of business on the balance sheet date. Purchases and sales of quoted investments are recognised on the trade date where a contract of sale exists whose terms require delivery within a time frame determined by the relevant market. Where the terms of a disposal state that consideration may be received at some future date and, subject to the conditionality and materiality of the amount of deferred consideration, an estimate of the fair value discounted for the time value of money may be recognised through the Income Statement. In other cases, the proceeds will only be recognised once the right to receive payment is established and there is no reasonable doubt that payment will be received. Unquoted investments are stated at fair value by the Directors at each measurement date in accordance with appropriate valuation techniques, which are consistent with the IPEV guidelines:- (i) Each investment is considered as a whole on a 'unit of account' basis, i.e. that the value of each portfolio company is considered as a whole, alongside consideration of:- The price of new or follow on investments made, if deemed to be made as part of an orderly transaction, are considered to be at fair value at the date of the transaction. The inputs that derived the investment price are calibrated within individual valuation models and at subsequent quarterly measurement dates are reconsidered for any changes in light of more recent events or changes in the market performance of the investee company. The valuation bases used are the following:   -  a multiple basis. The enterprise value of the investment may be determined by applying a suitable price-earnings ratio, revenue or gross profit multiple to that company's historic, current or forecast post-tax earnings before interest and amortisation, or revenue, or gross profit (the ratio used being based on a comparable sector but the resulting value being adjusted to reflect points of difference identified by the Investment Adviser compared to the sector including, inter alia, scale and liquidity). or:-    - where a company's underperformance against plan indicates a diminution in the value of the investment, provision against the price of a new investment is made, as appropriate. (ii) Premiums, to the extent that they are considered capital in nature, and that they will be received upon repayment of loan stock investments are accrued at fair value when the Company receives the right to the premium and when considered recoverable. (iii) Where a multiple or the price of recent investment less impairment basis is not appropriate and overriding factors apply, a discounted cash flow, net asset valuation, realisation proceeds or a weighted average of these bases may be applied. Capital gains and losses on investments, whether realised or unrealised, are dealt with in the profit and loss and revaluation reserves and movements in the period are shown in the Income Statement. All investments are initially recognised and subsequently measured at fair value. Changes in fair value are recognised in the Income Statement. A key judgement made in applying the above accounting policy relates to investments that are permanently impaired. Where the value of an investment has fallen permanently below the price of recent investment, the loss is treated as a permanent impairment and as a realised loss, even though the investment is still held. The Board assesses the portfolio for such investments and, after agreement with the Investment Adviser, will agree the values that represent the extent to which an investment 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. The methods of fair value measurement are classified into hierarchy based on the reliability of the information used to determine the valuation. - Level 1 - Fair value is measured based on quoted prices in an active market. - Level 2 - Fair value is measured based on directly observable current market prices or indirectly being derived from market prices. - Level 3 - Fair value is measured using valuation techniques using inputs that are not based on observable market data. Traded Unquoted Unquoted Unquoted Total on AIM equity preference Loan Stock shares shares Level 1 Level 3 Level 3 Level 3 £ £ £ £ £ Valuation at 31 December 2021 9,903,755 45,972,682 1,608,338 8,099,692 65,584,467 Purchases at cost - 370,903 1,083,253 437,500 1,891,656 Sales - proceeds - (3,205,562) - (1,135,939) (4,341,501)   - realised gains (Note a) - 781,454 - - 781,454 Unrealised (losses)/gains on investments in the period (Note a) (6,211,371) (4,770,421) 56,645 (122,993) (11,048,140) Valuation at 30 June 2022 3,692,384 39,149,056 2,748,236 7,278,260 52,867,936 Book cost at 30 June 2022 676,918 20,209,052 2,554,667 9,801,445 33,242,082 Unrealised gains/(losses) at 30 June 2022 3,015,466 19,686,222 193,796 (2,458,797) 20,436,687 Permanent impairment of investments - (746,218) (227) (64,388) (810,833) Valuation at 30 June 2022 3,692,384 39,149,056 2,748,236 7,278,260 52,867,936 Gains on investments - 2,116,459 - - 2,116,459 Less amounts recognised as unrealised gains in previous years - (1,335,005) - - (1,335,005) Realised gains based on carrying value at 31 December 2021 - 781,454 - - 781,454 Net movement in unrealised (losses)/gains in the period (6,211,371) (4,770,421) 56,645 (122,993) (11,048,140) (Losses)/gains on investments for the six months ended 30 June 2022 (6,211,371) (3,988,967) 56,645 (122,993) (10,266,686) Note a) Net realised gains on investments of £781,454 together with net unrealised losses of £11,048,140 equal net investment portfolio losses of £10,266,686 as disclosed in the Income Statement. Level 3 unquoted equity and loan investments are valued in accordance with IPEV guidelines as follows: as at as at as at 30 June 2022 30 June 2021 31 December 2021 (unaudited) (unaudited) (audited) £ £ Valuation methodology Multiple of earnings, revenues or gross margin, as appropriate 47,708,019 45,057,207 55,435,915 Recent investment price 1,088,538 1,622,633 195,200 Recent investment price (reviewed for impairment) 329,398 48,800 - Estimated and discounted realisation proceeds 49,597 49,597 49,597 Net asset value - 309,420 - 49,175,552 47,087,657 55,680,712 11. Net asset value per share As at As at As at 30 June 2022 30 June 2021 31 December 2021 (unaudited) (unaudited) (audited) Net assets  86,133,979  87,319,708  92,787,254 Number of shares in issue   90,990,361   83,354,074   83,389,721 Net asset value per share (pence) 94.66p 104.76p 111.27p 12. Post balance sheet events On 5 July 2022, the Company made a further investment of £0.62 million into Vivacity Labs Limited, an Artificial Intelligence and Urban Traffic Control ("UTC") system . On 23 August 2022, the Company made a further investment of £0.33 million into Bleach London Holdings Limited, a hair colourants brand. On 9 September 2022, the Company made a new investment of £0.50 million into Focal Point Positioning Limited, a navigation and positioning technology company. On 12 September 2022, the Company made a new investment of £0.44 million into Orri Limited,   a specialist private clinic, for those aged 16+, for expert treatment of Anorexia, Bulimia and Binge Eating Disorder. 13. The financial information for the six months ended 30 June 2022 does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006.  The financial statements for the year ended 31 December 2021 have been filed with the Registrar of Companies.  The auditor has reported on the financial statements for the year ended 31 December 2021 and that report was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006. 14. This Half-Year Report will shortly be made available on our website: www.mig4vct.co.uk and will be circulated by post to those shareholders who have requested copies of the Report. Further copies are available free of charge from the Company's registered office, 5 New Street Square, London, EC4A 3TW or can be downloaded via the website.

 

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