TIDMMIG6
RNS Number : 8372Y
Maven Income and Growth VCT 6 PLC
08 December 2017
Maven Income and Growth VCT 6 PLC
Interim Announcement for the six months ended 30 September 2017
(unaudited)
The Directors announce the unaudited Interim Management Report
for the six months ended 30 September 2017.
Highlights
-- NAV total return of 60.68p per share at 30 September 2017,
compared to 61.36p at 31 March 2017
-- NAV at 30 September 2017 of 57.58p per share after payment of
the final dividend of 0.25p per share during the period
-- Six new VCT qualifying private company holdings added to the portfolio
-- Two AIM quoted VCT qualifying investments completed during the period
-- Large pipeline of VCT qualifying investments, with a number in advanced process
-- Exit from Crawford Scientific achieved shortly after the
period end, for a total return of 4.5 times cost
-- Realisation of SPS (EU) completed after the period end, for a
total return of 2.5 times cost
Overview
Since November 2015, your Company has undertaken two significant
fundraisings that have transformed the asset base, increasing net
asset value to GBP23.55 million at the period end. The Manager is
now engaged in an active programme of capital deployment and
portfolio construction, and is pleased to report on the completion
of eight new VCT qualifying investments during the period, in
companies operating across a wide range of sectors. In addition,
the pipeline of prospective new VCT investments across Maven's
nationwide office network remains strong. Shortly after the period
end two exits were achieved. Crawford Scientific was sold to an
institutional buyer, achieving a total return of 4.5 times cost
over the three-year investment period, and SPS (EU) was realised in
full through a sale to a US consolidator for a total return of 2.5
times cost.
During the first half of the financial year, Maven continued to
focus on sourcing attractive qualifying investment opportunities
that meet the requirements of the revised VCT legislation, details
of which were provided in the 2017 Annual Report. Since the
introduction of the new VCT rules in 2015, your Company has
provided development capital to fourteen qualifying companies,
demonstrating the Manager's flexible approach and ability to adapt
to the requirements of the revised legislation. It has, however,
become apparent that transactions are taking considerably longer to
complete, due to the complex process of securing Advance Assurance
tax clearance from HM Revenue & Customs (HMRC) for each new
investment. As a result, the Manager's ability to complete a number
of investments has been impacted, with some opportunities lost
because of slow response times.
Given the complexity of the new rules, Maven maintains a
cautious approach and continues to work closely with a specialist
VCT adviser engaged by the Company to assist with the tax clearance
process. There are a number of active transactions that are
well-progressed and it is anticipated that there will be a strong
rate of new investment activity through the second half of the
financial year. This is consistent with the growth strategy
outlined above, which is focused on deploying the new capital
raised. This is consistent with the strategy to grow the portfolio
and deploy further capital as outlined above, although Shareholders
should note that, during this intensive investment phase, there is
unlikely to be an uplift in the NAV as most investments will be
held at cost in the period immediately after investment. It will
take some years before this new portfolio reaches maturity, by
which time uplifts in value may be justified and exits begin to
occur for these newer assets.
As highlighted by the Board in the 2017 Annual Report,
Shareholders should be aware that the requirement to support
younger and earlier stage businesses may result in less predictable
capital gains and income flows, with the result that the quantum
and timing of future dividend payments is likely to be subject to
variation. Decisions on future distributions will take into
consideration the availability of surplus revenue, the adequacy of
reserves, the proceeds from any further realisations and the VCT
qualifying levels of the portfolio.
Portfolio Developments
Following the success of the two recent fundraisings, your
Company's asset base has substantially increased. The portfolio
will continue to evolve as the investment rate accelerates and cash
balances are reduced. While the portfolio is in the early stages of
development, it will take time for value to be created from these
new assets.
The proportion of the portfolio invested in established
companies continues to perform well, resulting in a number of
valuation uplifts in response to positive trading results. In
addition, despite the political and economic uncertainty resulting
from the General Election and the UK's intended exit from the
European Union (EU), there is to date no discernible impact to
report, aside from the short-term benefit that a number of
exporters have experienced following the devaluation of Sterling in
June 2016.
Cursor Controls, a global leader in the design and niche
manufacture of trackballs for cursor movement used in industrial
applications, has performed well since Maven clients invested in
July 2015. The business continues to deliver good levels of organic
growth and performance was further enhanced in April 2016 by the
acquisition of NSI, a Belgian distributor of trackballs and other
associated products. The acquisition formed part of Maven's
investment proposal and is expected to be significantly earnings
enhancing, with a number of commercial and operational synergies
identified to help drive the growth and profitability of the
enlarged group. The management team is encouraged by the
integration process to date, with NSI trading to plan and the core
Cursor business continuing to deliver organic growth.
Manufacturer and supplier of technical plastic components and
interior parts for the global automotive industry, John McGavigan,
continues to exceed expectations. The year to 31 December 2016 saw
a significant increase in profitability across its operations in
China and Scotland, which was achieved through top line growth and
enhanced by the benefits of a number of productivity improvement
projects implemented earlier in the year. This momentum has
continued through the current year, with the company continuing to
grow and exceed budget. The order book remains strong, with a
number of significant contracts secured in recent months,
increasing future visibility for the business. Given the growth
achieved and forecast projections, the management team has decided
to move its Chinese premises in anticipation of capacity
constraints in the region, and work is progressing to advance
this.
Maven clients invested in Attraction World, a leading provider
of worldwide theme park and attraction tickets, in 2010 to support
the incumbent executive team through a management buy-out. Since
investment, the company has made steady progress and the core
business continues to perform well. In March 2016, the business
enhanced its operating platform through the complementary
acquisition of Day Out With The Kids (www.dayoutwiththekids.co.uk),
an e-commerce site that focuses on UK attraction information. The
development of the new acquisition is progressing to plan and the
management team believes that it will prove to be a valuable
addition to the business.
The UK's largest provider of promotional merchandise, SPS (EU),
has achieved excellent growth under private equity ownership since
Maven clients invested in February 2014. Operational improvements
have enhanced profitability following the successful implementation
of a new enterprise resource planning system. The complementary
acquisitions of HPP and TEC, completed during the year to 31
December 2015, have been integrated successfully within the group
and are both delivering a positive profit contribution. The company
has invested in sales resource to help penetrate the European
market, and this region is starting to contribute significantly to
group performance. During the period, the business received an
offer from a large American consolidator and the sale completed
post the period end, generating a total return of 2.5 times cost
over the life of the investment.
Crawford Scientific, the UK's leading independent provider of
outsourced chromatography consumable products and services to the
laboratory research and testing sectors, continues to trade ahead
of plan. The business leverages its world-class technical expertise
to offer end-to-end solutions for users of chromatography
instruments and techniques. Crawford has consistently outperformed
since the initial investment by Maven clients in August 2014,
including the successful acquisition and integration of analytical
services company Hall Analytical Laboratories during 2015. An offer
for the business was received during the reporting period and a
full exit completed shortly after the period-end at a premium to
carrying value, resulting in a 4.5 times return over the three-year
investment period.
DPP provides mechanical and electrical maintenance and
installation services mainly to the leisure, hospitality and retail
sectors in the south of England and in Wales. The company
differentiates itself by operating through an employed and managed
team of engineers, as opposed to engaging with a network of
subcontractors. The business has made considerable progress over
the past twelve months by enhancing operational procedures and
reducing costs, which has led to a significant improvement in
profitability. A number of new contracts were secured during the
year and the outlook is positive, which is highly encouraging given
the challenges experienced during 2014 when DPP lost a key
customer.
During the period, the valuation of the investment in Torridon
(Gibraltar) was protectively reduced to reflect circumstances at
one of its trading subsidiaries and CHS Engineering Services was
placed into administration. In addition, in light of current
trading, other selective provisions were taken across a small
number of portfolio companies.
The Manager maintains a close working relationship with investee
companies operating within the oil & gas sector and it is
encouraging to report that the majority of these assets are
experiencing improving market conditions. Following extensive cost
cutting, the Maven portfolio companies are operating with lean
structures and have limited or no external debt, and are relatively
well-positioned to benefit from a market recovery. The majority of
Maven's investee companies in this sector are focused on
operational expenditure, particularly related to health and safety.
Although budgets were set conservatively at the start of the year,
there is evidence of a sustained improvement in performance, with
profitability showing a significant uplift over the prior year
across the portfolio. The Board will continue to monitor the
performance of investee companies in this sector, and may revisit
some of the provisions applied in previous periods, to reflect the
improving outlook.
The investments in private equity investment trusts, real estate
investment trusts, fixed income investment trusts and
infrastructure investment trusts have delivered positive
performance over the period. The Board and the Manager are
encouraged by this contribution and believe that these investments
should continue to provide a steady and reliable source of income.
This is particularly important in light of the restrictions
introduced in the March 2016 Budget Statement, which prevent VCTs
from investing in traditional instruments such as treasury bills or
other government securities, for liquidity management purposes. The
Board and the Manager remain highly cognisant of the importance of
maintaining an effective liquidity management policy.
New Investments
During the period, your Company provided development capital to
six private companies:
-- ADC Biotechnology is a developer of a proprietary
Lock-Release technology, for the efficient development and
manufacture of the Antibody Drug Conjugates (ADC) group of cancer
therapies. ADCs, also known as 'magic bullets', combine the unique
targeting capabilities of antibodies with the cancer-killing
ability of cytotoxic drugs, thereby targeting cancer cells whilst
minimising damage to healthy cells and tissue, and with the
potential for reduced side effects. Maven VCT clients have invested
alongside existing shareholders to support an experienced
management team as it seeks to progress the drug development
platform in this high growth sector of oncology therapeutics.
-- Cognitive Geology is a petroleum geoscience software company
that recently launched Hutton, its first advanced geological data
analysis tool. The product uses patented technology that emulates
the behaviour of an experienced geologist while utilising modern
computing capabilities. The funding will be used to support the
rollout out of Hutton and further product development and
commercialisation of the pipeline of innovative 3rd generation
geoscience software applications, which are designed to help
geologists find, appraise, and develop conventional and
unconventional oil & gas reserves, both onshore and offshore,
in this well-established and strongly growing market.
-- Contego Fraud Solutions is a provider of complex,
multi-source compliance and fraud detection software for public and
private sector clients including property, banking and financial
services companies. The application performs a vast number of
screening, verification and vetting assessments including Know Your
Customer and Anti-Money Laundering, to fulfil both real-time
customer on-boarding and on-going monitoring of regulatory
requirements. The investment will support the continued growth of
the business, facilitating the hiring of additional sales
resources, further product development and expansion into new
markets.
-- ebb3 is a technology company that develops mobile workspace
solutions, addressing the need for secure access to apps, files and
services on any device, in any location. The technology is
specifically targeted at high-end 3D computer graphics users within
the automotive (Formula 1), construction, oil & gas and
education sectors, where there is a requirement for data-intensive
applications that can service geographically dispersed,
multi-disciplinary teams. ebb3 has high profile partnership
agreements with providers such as Cisco, NetApp and NVidia, and the
investment will enable the business to pursue its growth strategy
in this niche part of the growing supercomputing market.
-- Horizon Cremation plans to develop and operate a portfolio of
next generation crematoria across the UK, where existing facilities
are either under-invested or in short supply. Horizon is seeking to
build contemporary facilities that are environmentally and
technologically advanced, offering enhanced professional service
and care levels for families. The investment will provide capital
to source and secure development sites, whilst supporting the
operational expenditure and overheads of Horizon's first
crematorium in North Ayrshire, Scotland, where construction
commenced in May 2017. Third party finance has been secured to fund
the construction and fit-out of the facility.
-- ITS Technology is a leading alternative network provider that
owns and maintains fibre networks, providing faster and more
reliable broadband connectivity, and related services, to
customers, particularly in areas that are not well-serviced by the
existing infrastructure. The business currently has twelve fibre
broadband networks in operation, with a further five under
construction. The investment will help to fund growth within the
existing networks, build a stable recurring revenue base and also
support expansion through the addition of new networks.
In addition, two qualifying AIM quoted investments were added to
the portfolio through participation in secondary market
placings:
-- Byotrol is a provider of specialist anti-microbial
technologies for business and consumer users. The GBP4.3 million
fund raising was approved at a general meeting of the company on 5
September 2017 and is to be used to accelerate growth across three
new technology platforms.
-- Plant Impact is a provider of crop enhancement products that
increase quality and yield, particularly for soybean and cocoa.
Your Company participated in a GBP4 million fund raising, which
will provide additional cash resources to support product
development in this expanding market.
The following investments have been completed during the
reporting period:
Investment
cost
Date Sector GBP'000 Website
-------------------------- ----------- ------------------ ---------- ---------------------------------------
Unlisted
ADC Biotechnology September Pharmaceuticals 298 www.adcbio.com
Limited 2017 &
biotechnology
Cognitive Geology September Software 199 www.cognitivegeology.com
Limited 2017 &
computer
services
Contego Fraud July 2017 Software 274 www.contego.com
Solutions Limited &
computer
services
ebb3 Limited May 2017 Software 200 www.ebb3.com
&
computer
services
Horizon Cremation May 2017 Support services 500 www.horizoncremation.co.uk
Limited
ITS Technology June 2017 Telecommunication 348 www.itstechnologygroup.com
Group Limited
services
-------------------------- ----------- ------------------ ---------- ---------------------------------------
Total unlisted 1,819
----------------------------------------------------------- ---------- ---------------------------------------
Quoted
Byotrol PLC September Chemicals 177 www.byotrol.co.uk
2017 & materials
Plant Impact PLC July 2017 Chemicals 246 www.plantimpact.com
& materials
-------------------------- ----------- ------------------ ---------- ---------------------------------------
Total quoted 423
----------------------------------------------------------- ---------- ---------------------------------------
Fixed income investment
trusts
Alcentra European April 2017 Investment 86 www.aefrif.com
Floating Rate companies
Income Fund Limited
Twentyfour Income April 2017 Investment 100 www.twentyfouram.com
Fund Limited companies
-------------------------- ----------- ------------------ ---------- ---------------------------------------
Total fixed income
investment trusts 186
----------------------------------------------------------- ---------- ---------------------------------------
Infrastructure
investment trusts
3i Infrastructure August Investment 100 www.3i-infrastructure.com
PLC 2017 companies
HICL Infrastructure August Investment 99 www.hicl.com
Company 2017 companies
Limited
International August Investment 99 www.internationalpublicpartnerships.com
Public Partnerships 2017 companies
Limited
The Renewables August Investment 100 www.trig-ltd.com
Infrastructure 2017 companies
Group Limited
-------------------------- ----------- ------------------ ---------- ---------------------------------------
Total infrastructure
investment trusts 398
----------------------------------------------------------- ---------- ---------------------------------------
Total investments 2,826
----------------------------------------------------------- ---------- ---------------------------------------
At the period end, the portfolio stood at 73 unlisted and quoted
investments.
Realisations
During the period, no material realisations were achieved.
However, GBP7,000 of deferred consideration was received in respect
of the previous disposal of Cyclotech and a total of GBP150,000 of
loan stock was repaid by Constant Progress, Equator Capital and
Toward Technology.
As at the date of this report, the Manager is engaged with
several investee companies and prospective acquirers at various
stages of the negotiation process, although there can be no
certainty that these discussions will result in profitable
sales.
Material Developments Since the Period End
In October 2017, Maven achieved a full exit from Crawford
Scientific, through a sale to Limerston Capital Partners. The exit
achieved a total return of 4.5 times the original investment with
an IRR of 70% over the three year investment period. In December
2017, the holding in SPS (EU) was realised in full through a trade
sale to an American acquirer achieving a total return of 2.5 times
cost over the life of the investment.
In addition, follow on funding was provided to Horizon
Cremation.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company were
set out in full in the Strategic Report contained within the 2017
Annual Report, and are the risks associated with investment in
small and medium sized unlisted and AIM/NEX quoted companies which,
by their nature, carry a higher level of risk and are subject to
lower liquidity than investments in large quoted companies. The
valuation of investee companies may be affected by economic
conditions, the credit environment and other risks including
legislation, regulation, adherence to VCT qualifying rules and the
effectiveness of the internal controls operated by the Company and
the Manager. These risks and procedures are reviewed regularly by
the Audit and Risk Committees and reported to your Board. The Board
has confirmed that all tests, including the criteria for VCT
qualifying status, continue to be monitored and met.
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
continue to be bought back at prices representing a discount of
between 10% and 20% of the prevailing NAV per share. During the
period under review, 500,000 shares were bought back at a total
cost of GBP260,000.
Regulatory Developments
The Chancellor's March 2017 Budget Statement did not introduce
any further amendments to the legislation governing VCTs, but
reiterated the announcements made in the 2016 Autumn Statement. The
most noteworthy of these was that the Government will no longer be
initiating a review of the provision to allow replacement capital
in certain new VCT transactions, suggesting that this may be
reviewed at some point in the future. Whilst the Board and the
Manager were disappointed by this announcement, as the ability to
include replacement capital was viewed as an important capability
under the new rules, it does not impact the Company's investment
strategy which has already adapted to meet the requirements of the
new rules.
The Patient Capital Review has been formally extended to
consider the effectiveness and value for money provided by the VCT
and EIS sector. The consultation paper, 'Financing growth in
innovative firms', has been published and Maven provided feedback
to HM Treasury on behalf of its VCT clients.
Maven welcomes the intention of the 2017 Autumn Budget Statement
to preserve the attractive fundamentals of the VCT scheme, which
continue to provide a valuable bridge between private capital and
the UK SME sector. The continuing availability of long-term patient
capital in line with Government objectives, at what is an
increasingly important time for the UK economy, gives comfort to
small businesses and ensures that the best entrepreneurial
companies can continue to access equity finance, and investors can
benefit from their success.
However, there are some changes to the VCT scheme that the
Manager considers to be unnecessary, including the requirement for
the loan element of an investment to be unsecured and the increase
in the qualifying holdings test from 70% to 80% at a time when most
VCT managers are experiencing long delays in securing Advance
Assurance for new investments. The announcement that HMRC
anticipates being able to enhance their approval process during the
early part of 2018 is therefore welcome, as this should help
improve the rate of new investment and allow managers such as Maven
to continue to build their portfolios expeditiously and comply with
the new tests.
The Board and the Manager will continue to consider the
implications of the Autumn Statement and take these developments
into account when planning future strategy.
Outlook
The Manager is encouraged by the quality of investment
opportunities that have emerged during the first half of the
financial year, which have enabled a number of new transactions to
be completed. Whilst it is early days for the new investee
companies, initial indications suggest that they are performing
broadly to plan and should, over time, represent valuable additions
to the portfolio. This expansion is supported by the strength of
the existing portfolio, the majority of which is invested in
established businesses, completed prior to the rules change, that
continue to deliver growth and generate investment income.
During the period, Maven extended its nationwide presence,
expanding its network to ten locations across the UK. This regional
approach ensures that the investment team is well-positioned to
access potential investment opportunities through their local
network of contacts.
Maven's geographic presence is delivering a strong pipeline of
prospective new investments and, based on current momentum, it is
anticipated that the rate of investment in the remainder of the
financial year will continue to be strong. Your Board looks forward
to future growth of the portfolio during the second half of the
financial year.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
8 December 2017
Summary of Investment Changes
For the Six Months Ended 30 September 2017
Valuation Net investment/ Appreciation/ Valuation
31 March 2017 (disinvestment) (depreciation) 30 September
2017
GBP'000 % GBP'000 GBP'000 GBP'000 %
--------------------- -------- ------ ---------------- --------------- -------- ------
Unlisted investments
Equities 2,215 9.5 1,169 8 3,392 14.4
Loan stock 1,870 8.0 493 (70) 2,293 9.7
--------------------- -------- ------ ---------------- --------------- -------- ------
4,085 17.5 1,662 (62) 5,685 24.1
AIM/NEX investments
Equities 74 0.3 - 385 459 1.9
Listed investments
Equities 6 - 423 (422) 7 -
Investment trusts 1,313 5.6 584 53 1,950 8.3
--------------------- -------- ------ ---------------- --------------- -------- ------
Total investments 5,478 23.4 2,669 (46) 8,101 34.3
Other net assets 17,943 76.6 (2,494) - 15,449 65.7
--------------------- -------- ------ ---------------- --------------- -------- ------
Net assets 23,421 100.0 175 (46) 23,550 100.0
--------------------- -------- ------ ---------------- --------------- -------- ------
Investment Portfolio Summary
As at 30 September 2017
% of equity % of equity
Valuation Cost % of total held held by
Investment GBP'000 GBP'000 assets other clients(1)
-------------------------------- ----------- --------- ------------ ----------- -----------------
Unlisted
Horizon Cremation Limited 500 500 2.1 16.7 67.0
ITS Technology Group Limited 348 348 1.6 3.4 18.7
Lemac No.1 Limited (trading
as John McGavigan) 337 107 1.4 1.4 35.4
ADC Biotechnology Limited 298 298 1.3 2.4 13.9
Crawford Scientific Holdings
Limited 298 57 1.3 0.9 47.3
Contego Fraud Solutions
Limited 274 274 1.3 2.5 14.1
QikServe Limited 249 249 1.1 2.5 17.5
Torridon (Gibraltar) Limited 208 21 0.9 0.8 39.2
ebb3 Limited 200 200 0.8 4.7 19.8
The GP Service (UK) Limited 199 199 0.8 2.5 30.0
Cognitive Geology Limited 199 199 0.8 8.4 33.9
Rockar 2016 Limited (trading
as Rockar) 199 199 0.8 1.1 12.7
Chic Lifestyle Limited (trading
as Chic Retreats) 187 187 0.8 5.6 41.3
Glacier Energy Services
Holdings Limited 150 150 0.6 0.6 27.1
SPS (EU) Limited 131 61 0.6 0.5 42.0
Majenta Logistics Limited 125 125 0.5 1.7 48.1
Metropol Communications
Limited 125 125 0.5 1.7 48.1
Onyx Logistics Limited 125 125 0.5 1.7 48.1
Vectis Technology Limited 125 125 0.5 1.7 48.1
Martel Instruments Holdings
Limited 106 116 0.5 1.4 42.8
Ensco 969 Limited (trading
as DPP) 102 91 0.4 0.4 34.1
Whiterock Group Limited 100 100 0.4 2.2 22.8
Growth Capital Ventures
Limited 99 99 0.4 2.8 27.8
CatTech International Holdings
Limited 93 60 0.4 0.6 29.4
Fathom Systems Group Limited 89 89 0.4 1.0 59.0
Vodat Communications Group
Limited 83 60 0.4 0.7 41.0
Castlegate 737 Limited (trading
as Cursor Controls) 82 50 0.3 0.5 47.0
Flow UK Holdings Limited 75 75 0.3 0.9 34.1
JT Holdings (UK) Limited
(trading as Just Trays) 65 50 0.3 0.5 29.5
Attraction World Holdings
Limited 60 3 0.3 0.9 37.5
CB Technology Group Limited 58 58 0.3 1.2 77.8
Endura Limited 57 57 0.2 0.2 5.7
GEV Holdings Limited 56 56 0.2 0.4 35.6
Flexlife Group Limited 54 75 0.2 0.3 14.3
RMEC Group Limited 50 50 0.2 0.3 49.8
R&M Engineering Group Limited 45 60 0.2 0.7 69.9
Maven Co-invest Endeavour
Limited Partnership 44 38 0.2 0.7 99.3
(invested in Global Risk
Partners)
-------------------------------- ----------- --------- ------------ ----------- -----------------
Investment Portfolio Summary (Continued)
As at 30 September 2017
% of equity % of equity
Valuation Cost % of total held held by
Investment (continued) GBP'000 GBP'000 assets other clients(1)
--------------------------------- ----------- --------- ------------ ----------- -----------------
Unlisted (continued)
HCS Control Systems Group 43 60 0.2 0.5 36.0
ISN Solutions Group Limited 26 40 0.1 0.6 54.4
Space Student Living Limited 11 - - 1.7 78.4
Lawrence Recycling & Waste
Management Limited 10 73 - 0.8 61.2
Other unlisted investments - 246 -
--------------------------------- ----------- --------- ------------ ----------- -----------------
Total unlisted 5,685 5,155 24.1
--------------------------------- ----------- --------- ------------ ----------- -----------------
Quoted
Plant Impact PLC 214 246 0.8 0.8 1.1
Byotrol PLC 177 177 0.7 1.1 2.5
Angle PLC 37 69 0.2 0.1 0.3
Vianet Group PLC (formerly
Brulines Group PLC) 13 16 0.1 - 1.5
Plastics Capital PLC 12 10 0.1 - 1.4
esure Group PLC 7 - - - -
Gordon Dadds Group PLC (formerly
Work Group PLC) 6 101 - - 0.1
Other quoted investments - 238 -
--------------------------------- ----------- --------- ------------ ----------- -----------------
Total quoted 466 857 1.9
--------------------------------- ----------- --------- ------------ ----------- -----------------
Private equity investment
trusts
Princess Private Equity
Holding Limited 125 98 0.6 - 0.1
F&C Private Equity Trust
PLC 120 103 0.5 0.1 0.3
Apax Global Alpha Limited 116 99 0.5 - 0.1
HgCapital Trust PLC 116 100 0.5 - 0.1
Standard Life Private Equity
Trust 56 43 0.2 - -
--------------------------------- ----------- --------- ------------ ----------- -----------------
Total private equity investment
trusts 533 443 2.3
--------------------------------- ----------- --------- ------------ ----------- -----------------
Real estate investment trusts
Custodian REIT PLC 107 99 0.6 - 0.2
Schroder REIT Limited 106 99 0.5 - 0.2
Standard Life Investment
Property Income Trust 104 99 0.4 - 0.2
Limited
Target Healthcare REIT Limited 102 98 0.4 - 0.2
British Land Company PLC 99 99 0.4 - -
Regional REIT Limited 97 99 0.4 - 0.2
--------------------------------- ----------- --------- ------------ ----------- -----------------
Total real estate investment
trusts 615 593 2.7
--------------------------------- ----------- --------- ------------ ----------- -----------------
Investment Portfolio Summary (Continued)
As at 30 September 2017
% of equity % of equity
Valuation Cost % of total held held by
Investment (continued) GBP'000 GBP'000 assets other clients(1)
---------------------------------- ----------- --------- ------------ ----------- -----------------
Fixed income investment
trusts
TwentyFour Income Fund Limited 208 201 0.9 0.1 -
Alcentra European Floating
Rate Income Fund Limited 196 200 0.8 0.1 -
---------------------------------- ----------- --------- ------------ ----------- -----------------
Total fixed income investment
trusts 404 401 1.7
---------------------------------- ----------- --------- ------------ ----------- -----------------
Infrastructure investment
trusts
3i Infrastructure PLC 100 100 0.4 - -
The Renewables Infrastructure
Group Limited 100 100 0.4 - -
HICL Infrastructure Company
Limited 99 99 0.4 - -
International Public Partnerships
Limited 99 99 0.4 - -
---------------------------------- ----------- --------- ------------ ----------- -----------------
Total infrastructure investment
trusts 398 398 1.6
---------------------------------- ----------- --------- ------------ ----------- -----------------
Total investments 8,101 7,847 34.3
---------------------------------- ----------- --------- ------------ ----------- -----------------
(1) Other clients of Maven Capital Partners UK LLP.
Income Statement
For the Six Months Ended 30 September 2017
Six months ended Six months ended Year ended
30 September 30 September 31 March 2017
2017 2016
(unaudited) (unaudited) (audited)
---------------------------- ---------------------------- ----------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- -------- -------- -------- -------- -------- -------- -------- ------------
(Losses)/gains
on investments - (46) (46) - 227 227 - 241 241
Income from
investments 105 - 105 42 - 42 142 - 142
Other income 11 - 11 - - - 7 - 7
Investment
management
fees (60) (239) (299) (34) (136) (170) (75) (300) (375)
Other expenses (84) - (84) (73) - (73) (181) - (181)
-------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net return on
ordinary (28) (285) (313) (65) 91 26 (107) (59) (166)
activities before
taxation
Tax on ordinary - - - - - - - - -
activities
-------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Return attributable
to Equity
Shareholders (28) (285) (313) (65) 91 26 (107) (59) (166)
-------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Earnings per share
(pence) (0.07) (0.69) (0.76) (0.25) 0.35 0.10 (0.37) (0.21) (0.58)
-------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
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 one
reportable segment, the results of which are set out in the Income
Statement and Balance Sheet. The Company derives its income from
investments made in shares, securities and bank deposits.
There are no potentially dilutive capital instruments in issue
and, therefore, no diluted returns per share figures are relevant.
The basic and diluted earnings per share are, therefore,
identical.
The total column of this statement is the Profit and Loss
Account of the Company.
The accompanying Notes are an integral part of the Financial
Statements.
Statement of Changes in Equity
For the Six Months Ended 30 September 2017
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
Six Months Ended 30 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
September
2017
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 March 2017 4,003 5,864 (1,246) 307 15,488 40 (1,035) 23,421
Net return - - (232) (53) - - (28) (313)
Dividends paid - - (103) - - - - (103)
Repurchase and
cancellation
of shares (50) - - - (260) 50 - (260)
Share issue 137 668 - - - - - 805
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 30 September 2017 4,090 6,532 (1,581) 254 15,228 90 (1,063) 23,550
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
Six Months Ended 30 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
September
2016
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 March 2016 2,078 6,784 (1,189) 309 2,257 2,919 (857) 12,301
Net return - - (111) 202 - - (65) 26
Dividends paid - - - - - - (71) (71)
Repurchase and
cancellation
of shares (40) - - - (210) 40 - (210)
Share issue 763 3,754 - - - - - 4,517
Cancellation of share
premium
account - (10,538) - - 10,538 - - -
Cancellation of
capital redemption
reserve - - - - 2,919 (2,919) - -
Costs relating to
cancellation
of share
premium account and
capital
redemption reserve - - - - (15) - - (15)
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 30 September 2016 2,801 - (1,300) 511 15,489 40 (993) 16,548
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
Year Ended 31 March GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
2017
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 March 2016 2,078 6,784 (1,189) 309 2,257 2,919 (857) 12,301
Net return - - (57) (2) - - (107) (166)
Dividends paid - - - - - - (71) (71)
Repurchase and
cancellation
of shares (40) - - - (211) 40 - (211)
Share issue 1,965 9,618 - - - - - 11,583
Cancellation of share
premium
account - (10,538) - - 10,538 - - -
Cancellation of
capital redemption
reserve - - - - 2,919 (2,919) - -
Costs relating to
cancellation
of share
premium account and
capital
redemption reserve - - - - (15) - - (15)
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 March 2017 4,003 5,864 (1,246) 307 15,488 40 (1,035) 23,421
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
The accompanying Notes are an integral part of the Financial
Statements.
Balance Sheet
As at 30 September 2017
30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------- ------------ ------------ ----------
Fixed assets
Investments at fair value
through profit or loss 8,101 4,428 5,478
Current assets
Debtors 82 37 60
Cash 15,461 12,223 18,129
------------------------------- ------------ ------------ ----------
15,543 12,260 18,189
Creditors
Amounts falling due within
one year 94 140 246
------------------------------- ------------ ------------ ----------
Net current assets 15,449 12,120 17,943
------------------------------- ------------ ------------ ----------
Net assets 23,550 16,548 23,421
------------------------------- ------------ ------------ ----------
Capital and reserves
Called up share capital 4,090 2,801 4,003
Share premium account 6,532 - 5,864
Capital reserve - realised (1,581) (1,300) (1,246)
Capital reserve - unrealised 254 511 307
Special distributable reserve 15,228 15,489 15,488
Capital redemption reserve 90 40 40
Revenue reserve (1,063) (993) (1,035)
------------------------------- ------------ ------------ ----------
Net assets attributable
to Ordinary Shareholders 23,550 16,548 23,421
------------------------------- ------------ ------------ ----------
Net asset value per Ordinary
Share (pence) 57.58 59.09 58.51
------------------------------- ------------ ------------ ----------
The Financial Statements of Maven Income and Growth VCT 6 PLC,
registered number 3870187 were approved and authorised for issue by
the Board of Directors on 8 December 2017 and were signed on its
behalf by:
Brian May
Director
The accompanying Notes are an integral part of the Financial
Statements.
Cash Flow Statement
For the Six Months Ended 30 September 2017
Six months Six months Year ended
ended 30 ended 30 31 March
September September 2017
2017 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------- ------------ ------------ ----------
Net cash flows from operating
activities (408) (290) (574)
Cash flows from investing
activities
Investment income received 92 57 125
Deposit interest received 11 - 7
Purchase of investments (3,040) (838) (2,069)
Sale of investments 157 8,438 8,847
------------------------------- ------------ ------------ ----------
Net cash flows from investing
activities (2,780) 7,657 6,910
------------------------------- ------------ ------------ ----------
Cash flows from financing
activities
Equity dividends paid (103) (71) (71)
Issue of Ordinary Shares 805 4,517 11,583
Repurchase of Ordinary
Shares (182) (82) (211)
Costs relating to cancellation
of share
premium account - (15) (15)
------------------------------- ------------ ------------ ----------
Net cash flows from financing
activities 520 4,349 11,286
------------------------------- ------------ ------------ ----------
Net (decrease)/increase
in cash (2,668) 11,716 17,622
------------------------------- ------------ ------------ ----------
Cash at beginning of
period 18,129 507 507
Cash at end of period 15,461 12,223 18,129
------------------------------- ------------ ------------ ----------
The accompanying Notes are an integral part of the Financial
Statements.
Notes to the Financial Statements
1. Accounting Policies
The financial information for the six months ended 30 September
2017 and the six months ended 30 September 2016 comprises
non-statutory accounts within the meaning 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 March
2017, which have been filed at Companies Houses and which contained
an Auditor's Report which was not qualified and did not contain a
statement under S498(2) or S498(3) of the Companies Act 2006.
2. Reserves
Share premium account
The share premium account represents the premium above nominal
value received by the Company on issuing shares net of issue
costs.
Capital reserves
Gains or losses on investments realised in the year that have
been recognised in the Income Statement are transferred to the
capital reserve realised account on disposal. Furthermore, any
prior unrealised gains or losses on such investments are
transferred from the capital reserve unrealised account to the
capital reserve realised account on disposal.
Increases and decreases in the fair value of investments are
recognised in the Income Statement and are then transferred to the
capital reserve unrealised account. The capital reserve realised
account also represents capital dividends, capital investment
management fees and the tax effect of capital items.
Special distributable reserve
The total cost to the Company of the repurchase and cancellation
of shares is represented in the special distributable reserve
account.
Capital redemption reserve
The nominal value of shares repurchased and cancelled is
represented in the capital redemption reserve.
Revenue reserve
The revenue reserve represents accumulated profits retained by
the Company that have not been distributed to Shareholders as a
dividend.
3. Return per Ordinary Share
Six months Six months Year ended
ended 30 ended 30 31 March 2017
September September GBP'000
2017 2016
GBP'000 GBP'000
------------------------------ ------------ ------------ --------------
The return per Ordinary
Share is based on
the following figures:
Revenue return (28) (65) (107)
Capital return (285) 91 (59)
------------------------------ ------------ ------------ --------------
Total return (313) 26 (166)
------------------------------ ------------ ------------ --------------
Weighted average number
of Ordinary Shares in issue 41,331,432 26,256,342 28,546,015
Revenue return per Ordinary
Share (0.07) (0.25) (0.37)
Capital return per Ordinary
Share (0.69) 0.35 (0.21)
------------------------------ ------------ ------------ --------------
Return per Ordinary Share (0.76) 0.10 (0.58)
------------------------------ ------------ ------------ --------------
The net asset value per Ordinary Share has been calculated using
the number of shares in issue at 30 September 2017 of
40,902,032.
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
-- the Financial Statements for the six months ended 30
September 2017 have been prepared in accordance with FRS 102, the
Financial Reporting Standard applicable in the UK and Republic of
Ireland;
-- 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 March 2018; and
-- the Interim Management Report includes adequate disclosure of
the information required by DTR 4.2.8R in relation to related party
transactions and any changes therein.
Other Information
A full copy of the Interim Report and Financial Statements will
be printed and issued to Shareholders. Copies of this announcement
will be available to the public at the office of Maven Capital
Partners UK LLP, Kintyre House, 205 West George Street, Glasgow G2
2LW; at the registered office of the Company, Fifth Floor, 1-2
Royal Exchange Buildings, London EC3V 3LF; and, in due course, on
the Company's website at www.mavencp.com/migvct6.
Neither the content of the Company's website nor the contents of
any website accessible from hyperlinks in this announcement, on the
Company's website or any other website is incorporated into, or
forms part of, this announcement.
By order of the Board
Maven Capital Partners UK LLP
Secretary
8 December 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FSSFEAFWSEEE
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