RNS Number : 8428K
Maven Income & Growth VCT 4 PLC
30 August 2023
 

Maven Income and Growth VCT 4 PLC

 

Interim Results for the Six Months Ended 30 June 2023 (Unaudited)

 

The Directors announce the unaudited interim results for the six months ended 30 June 2023.

 

Highlights

 

•         NAV total return at 30 June 2023 of 154.27p per share

 

•         NAV at 30 June 2023 of 64.92p per share, after payment of the 2022 final dividend of 1.75p per share in May 2023

 

•         Interim dividend of 1.75p per share declared for payment on 13 October 2023

 

•         Offer for Subscription closed, raising £6.83 million, with a further fund raising to be launched in Autumn 2023

 

•         Two new private companies added to the portfolio

 

Overview

 

During the first half of the financial year, the macroeconomic environment remained challenging, with growth prospects suppressed by ongoing inflationary pressures and rising interest rates. Against this backdrop, it is encouraging to report on the further progress that has been achieved by your Company. Whilst NAV total return has reduced modestly compared to the position at the previous year end, most companies in the unlisted portfolio have continued to deliver revenue growth and achieve their commercial milestones. Notably, the performance across the early stage portfolio has been generally resilient, which helps to validate the investment strategy that your Company has been following for a number of years. The Board and the Manager recognise the importance of regular tax free Shareholder distributions and an interim dividend of 1.75p per share has been declared for payment in October 2023.

 

Whilst the outlook for the UK economy has improved slightly, during the reporting period inflation remained stubbornly high and interest rates continued to rise, which created challenges for many businesses and consumers. Notwithstanding these market conditions, your Company has delivered a robust performance. This reflects the strength of the underlying portfolio that has been carefully constructed over recent years and provides exposure to a wide range of high quality, growth companies, many of which operate in defensive or emerging sectors where demand has continued to grow. It is worthwhile noting that, across the portfolio, the level of external debt remains low, which helps to insulate against further upward movements in interest rates and, furthermore, there is limited direct exposure to consumer facing sectors. The Board and the Manager believe that the underlying growth prospects for the majority of companies within the portfolio remain positive, and that your Company is well positioned to make further progress in line with its long term investment objective.

 

Your Company continues to follow a strategy focused on constructing a large and sectorally diversified portfolio of dynamic and entrepreneurial private and AIM quoted companies that operate in attractive markets such as Software-as-a-Service (SaaS), cyber security, data analytics and healthcare, where growth is less dependent on the conditions in the wider economy. Most companies within the unlisted portfolio have continued to make positive progress, with some of the more mature holdings now trading ahead of pre-pandemic levels. In the earlier stage portfolio, most companies are meeting their commercial milestones, increasing annual recurring revenue (ARR) and achieving further scale. Where there has been sustained positive performance, valuations have been uplifted, although the impact has been moderated by the well-publicised reduction in valuation multiples across public and private markets, particularly within the technology sector.

 

In May 2023, your Company closed its most recent Offer for Subscription, raising a total of £6.83 million across the 2022/23 and 2023/24 tax years. This new capital provides additional liquidity to support the further expansion and development of the portfolio through the completion of new investments and the provision of follow-on funding to support those companies that are achieving their commercial targets and require additional capital to fully scale before progressing to an exit. During the period, two new private companies were added to the portfolio, both of which provide disruptive software solutions and operate in growing markets. Maven remains focused on identifying companies that can demonstrate meaningful commercial traction and the potential for further strong revenue growth. This is often measured in terms of contracted ARR, which provides a degree of visibility on a company's growth trajectory. Maven's regional network of investment executives continues to review a healthy pipeline of opportunities and, at the time of writing, there are a number of potential investments, across a wide range of sectors, which are at various stages of due diligence and legal contract. Based on this pipeline, it is anticipated that there will be further new investment during the second half of this financial year.

 

Within the AIM portfolio, performance has continued to be muted. Although some listed markets have experienced a recovery, investor sentiment towards AIM continues to be subdued and there has been limited IPO and new share issuance activity to help stimulate demand. As a result of these market conditions, the value of your Company's AIM portfolio has declined. For the majority of holdings, the share price reductions reflect the general market volatility that has persisted throughout the period and the reduced appetite for investment in smaller, earlier stage growth businesses. The Board and the Manager nevertheless believe that, over the long term, selective exposure to AIM offers the potential to broaden the portfolio, as well as providing the ability to generate early liquidity if companies perform well. The Manager will, however, remain cautious towards new AIM investments until there is clear evidence of a recovery in this market, and an improvement in the quality and quantity of companies seeking VCT funding.

 

The Manager maintains an active approach to portfolio management, with a view to supporting investee companies throughout the period of ownership. The Maven appointed board representative works closely with each unlisted portfolio company that is considering, or is engaged in, a sale process, helping to identify the most suitable corporate finance adviser and potential acquirers that may be willing to pay a premium or strategic price for the business. Whilst there have been no material realisations during the period, there remains a good level of external interest in a number of portfolio companies and, based on historical trends, the Manager is optimistic that M&A activity will resume when economic conditions stabilise.

 

Liquidity Management

 

As Shareholders will be aware from recent Annual and Interim Reports, your Company has a proactive approach to liquidity management, with the objective of generating income from cash resources held prior to investment in VCT qualifying companies. This strategy also helps to satisfy the criteria of the Nature of Income condition, which is a mandatory requirement of the VCT legislation where not less than 70% of a VCT's income must be derived from shares or securities. To meet this requirement, the Board had previously approved the construction of a focused portfolio of permitted, non-qualifying holdings in carefully selected investment trusts with strong fundamentals and attractive income characteristics. The recent upward trend in interest rates has, however, required the Board and the Manager to revise this approach. Following a whole of market review, the Manager has selected a number of leading money market funds and a portfolio of investment trusts that will allow your Company to maximise the income receivable on residual cash, whilst also ensuring compliance with the Nature of Income condition. During the reporting period, several new investments were completed in support of the revised liquidity management strategy, details of which can be found in the Investments table in the Interim Report.

 

Interim Dividend

 

In respect of the year ending 31 December 2023, an interim dividend of 1.75p per share will be paid on 13 October 2023 to Shareholders who are on the register at 15 September 2023. Since the Company's launch, and after receipt of this interim dividend, a total of 91.10p per share will have been paid in tax free Shareholder distributions. It should be noted that payment of a dividend reduces the NAV of the Company by the total cost of the distribution.

 

Dividend Policy

 

Decisions on distributions take into consideration a number of factors, including the realisation of capital gains, the adequacy of distributable reserves, the availability of surplus revenue and the VCT qualifying level, all of which are kept under close and regular review. The Board and the Manager recognise the importance of tax free distributions to Shareholders and, subject to the considerations outlined above, will seek, as a guide, to pay an annual dividend that represents 5% of the NAV per share at the immediately preceding year end.

 

As the portfolio continues to expand and a greater proportion of holdings are in younger companies with growth potential, the timing of distributions will be more closely linked to realisation activity, whilst also reflecting the Company's requirement to maintain its VCT qualifying level. If larger distributions are required as a consequence of significant exits, this will result in a corresponding reduction in NAV per share. However, the Board and the Manager consider this to be a tax efficient means of returning value to Shareholders, whilst ensuring ongoing compliance with the VCT legislation.

 

Dividend Investment Scheme (DIS)

 

Your Company operates a DIS, through which Shareholders can, at any time, elect to have their dividend payments utilised to subscribe for new Ordinary Shares issued by the Company under the standing authority requested from Shareholders at Annual General Meetings. Shares issued under the DIS should qualify for VCT tax relief in respect of the tax year in which they are allotted, subject to an individual Shareholder's particular circumstances.

 

In order for the DIS to apply in respect of the interim dividend that is due to be paid on 13 October 2023, a mandate form must be received by the Registrar (The City Partnership) before 29 September 2023, this being the relevant dividend election date, and that election will apply in respect of all future dividends until the Registrar is instructed to the contrary. The mandate form, terms & conditions and full details of the scheme (including a summary of tax considerations) are available from the Company's webpage at: mavencp.com/migvct4. Election to participate in the DIS can also be made through the Registrar's online investor hub at: maven-cp.cityhub.uk.com/login.

 

If a Shareholder is in any doubt about the merits of participating in the DIS, or their own tax status, they should seek advice from a suitably qualified adviser.

 

Offer for Subscription

 

On 7 October 2022, your Company, alongside Maven Income and Growth VCT PLC, Maven Income and Growth VCT 3 PLC and Maven Income and Growth VCT 5 PLC, launched Offers for Subscription for up to £30 million in aggregate, with over-allotment facilities for up to a further £10 million in aggregate. On 26 May 2023, the Offers closed to new applications, with your Company raising a total of £6.83 million across the 2022/23 and 2023/24 tax years.

 

With respect to the 2022/23 tax year, an allotment of 5,035,459 new Ordinary Shares completed on 8 February 2023, with a further allotment of 495,482 new Ordinary Shares on 3 March 2023 and a final allotment of 2,639,275 new Ordinary Shares on 5 April 2023. An allotment of 1,607,513 new Ordinary Shares for the 2023/24 tax year took place on 2 June 2023.

 

The Directors are confident that Maven's regional office network will continue to source and complete attractive investments in VCT qualifying companies across a range of sectors. The additional liquidity provided by the fundraising will facilitate further expansion and development of the portfolio in line with the investment strategy. Furthermore, the funds raised will allow your Company to maintain its share buy-back policy, whilst also spreading costs over a wider asset base in line with the objective of maintaining a competitive total expense ratio for the benefit of all Shareholders.

 

Further to the announcement of 6 July 2023, the Directors have elected to launch a new Offer in Autumn 2023, in tandem with Offers by the three other Maven managed VCTs. Full details of the Offers will be included in a Prospectus, which is expected to be published in Autumn 2023.

 

Portfolio Developments

 

Integrated drug discovery services provider BioAscent Discovery continues to make strong progress and has consistently achieved double digit annual revenue growth in each of the four years since your Company first invested. To maintain this momentum, BioAscent is focused on expanding its range of services, and the near term objective is to move into complementary areas such as custom protein production, immune-oncology and further translational assays. As part of the longer term growth strategy, and to ensure that the business is able to meet the requirements of its global customer base, BioAscent is in advanced discussions to achieve a significant increase in laboratory and office space, whilst remaining at a single location in Scotland. This additional capacity will enable the company to increase its market presence by making the drug discovery process more efficient, which should help it to attract more clients, thereby achieving further scale.

 

Graduate recruitment specialist Bright Network continues to make positive progress, with revenues now in excess of £11 million and over 900,000 active members. Its digital solution, which enables leading employers to identify, reach and recruit high quality graduates and young professionals, has established a leading market position. Working with over 300 partner firms such as Amazon, Bloomberg, Google and Vodafone, it offers a comprehensive range of services, including advice and support to assist its members in securing their first job or internship, as well as providing access to a range of in-person networking events. The business is committed to serving a diverse range of applicants and it is encouraging to note that 79% of its members are state educated, 55% are female and 40% are from first generation university households. During 2021, the business launched its Technology Academy, which seeks to address the digital skills shortage by providing high performing graduates with an intensive software development training programme, and then deploying them in client organisations.

 

Over the past year, the Technology Academy has gained good commercial traction and already has consultants deployed with Lloyds Bank and Marks & Spencer. It was also recently named the Learning Solution of the Year at the 2022 Tiara Talent Tech Star Awards, which recognise excellence in the recruitment and talent acquisition industry. Shortly after the period end, follow-on funding was provided to Bright Network to support its targeted international expansion strategy.

 

Following a challenging period during the pandemic, when global electronic component shortages and supply chain disruption impacted order fulfilment capabilities, specialist manufacturer CB Technology has experienced a good recovery, with sales now back to pre-pandemic levels. Over recent years, the strategy to diversify the customer base away from a reliance on the oil & gas sector has been successful, with new clients secured in sectors such as communication, instrumentation and medical technology, where demand has remained resilient. To support future growth, the business continues to make strategic investments to ensure that it has the necessary infrastructure in place to best serve its clients. As part of this initiative, it is implementing a new enterprise resource planning (ERP) system, which will help to improve operational efficiency. With a strong orderbook, the outlook for the year ahead is positive.

 

Over recent years, cybercrime has become an increasing threat to everyday business activities, with most companies and organisations recognising the need to implement robust defences. Against this backdrop, cyber security specialist CYSIAM has made good progress. The business provides a 24/7 managed detection and response service that aims to reduce system security breaches and stop ransomware attacks. It is also a preferred partner to public sector organisations in the UK. The CYSIAM team are experts in their field, with backgrounds in military intelligence, law enforcement and national security, which has enabled the business to launch a consultancy arm that is making encouraging progress. Its consultants work with clients to help them understand their security position and to build appropriate cyber resilience. CYSIAM has achieved good growth during the year to date, and the outlook is encouraging.

 

Following changes to the senior leadership team and the appointment of a new CEO, data transfer specialist DiffusionData has delivered strong growth, with ARR nearly doubling since your Company first invested in 2020. The business, which provides a market leading platform to improve the speed, security and efficiency of critical data transfer, is focused on the financial services, gaming and internet of things (IoT) markets, where accurate and timely data transfer is vital. DiffusionData has established a blue chip client base that includes 188 Bet, Baker Technology, Betfair, Caesars, Lloyds Bank and William Hill, with an objective for the year ahead of growing its market position. To support this strategy, a new engineering and testing hub is being established in Newcastle, which will create a number of skilled local jobs and serve as a quality and assurance centre to ensure that DiffusionData can maintain its high standard of service delivery as it scales. In 2022, the business achieved notable industry recognition for its innovative data platform, winning four awards and being shortlisted for a further 12.

 

During the period under review, sustainable packaging manufacturer iPac has continued to deliver a good rate of sales growth and has a strong pipeline of new opportunities. The business manufactures and supplies thermoformed sustainable packaging solutions to the food and pharmaceutical sectors, and recently opened its sixth production line to accommodate increased demand. In February 2023, it opened a new production and warehousing facility in County Durham, which has created a number of local jobs and has capacity to house up to eight new production lines that will be phased in to meet client demand. iPac continues to develop new products and its strategic objective is to move into adjacent markets where there is demand for sustainable packaging solutions. Given its strong and expanding product portfolio, coupled with attractive ESG credentials, the business is well placed to continue to deliver further growth in the year ahead.

 

Crematorium developer and operator Horizon Ceremonies continues to make good operational and strategic progress. Since your Company first invested in 2017, it has established a portfolio of three crematoria, all of which are trading ahead of plan, and the business is continuing to build a strong market position. Whilst the planning process for a new crematorium can be lengthy, there is a good pipeline of opportunities at varying stages of the approval process. The medium term strategic objective remains to build a portfolio of modern, technologically advanced crematoria that offer a professional and compassionate service whilst also meeting the highest environmental standards, and to sell the business to a trade, private equity or infrastructure acquirer when all sites are fully developed.

 

Liftango, a provider of an environmentally friendly transport planning solution, has achieved significant sales growth since your Company first invested in December 2021. The business enables corporates, universities and public transport providers, to plan, launch and scale sustainable transport solutions, including climate-positive carpooling, fixed-route shuttles and on-demand buses, and recently signed a five year contract with National Express to digitalise its existing dial-a-ride service, adding another client to an impressive blue chip list that includes Amazon, IKEA, Qantas, Tesla and Volvo. During the period, Liftango received additional funding from the Maven VCTs as part of a larger funding round supported by existing investors. This further investment will help the business to increase ARR by accelerating its international growth plan and capitalising on emerging opportunities in Europe and North America, whilst also broadening its product offering to existing customers and regions.

 

Digital archiving specialist MirrorWeb continues to deliver impressive revenue growth and has increased ARR by over 80% compared to the prior year. During the period, the business received additional funding from the Maven VCTs to support its expansion into the US, which is regarded as a pivotal market for future growth. The US growth strategy is being led by the CEO, who relocated to Texas in early 2023, and will focus on increasing sales by targeting large financial institutions and compliance consultancies, where the need to archive digital communications is either a regulatory or best practice requirement, and where MirrorWeb's comprehensive product offering provides a compelling solution. The business will also continue to build its presence in the UK, where its blue chip customer base includes Aegon, Baillie Gifford, the BBC, HM Treasury, Tesco Bank and The National Archives.

 

During the period under review, Rockar, a developer of a disruptive digital platform for buying new and used cars, has made positive progress and further enhanced its position in the evolving automotive eCommerce market. The business, which provides a white label cloud-based solution to help manufacturers and retailers develop digital alternatives to replace or complement existing showroom models, has recently added Volvo to a client base that includes BMW, Jaguar Land Rover, Porsche and Toyota. The strategy for the year ahead remains focused on building relationships with global automotive manufacturers to enable the business to scale further.

 

Whilst the majority of companies in the unlisted portfolio have continued to make positive progress, there are a small number that have not achieved their commercial targets, largely as a result of conditions within the wider economy. Martel Instruments, a manufacturer and supplier of custom-built compact printers and data loggers, traded very well during the pandemic, buoyed by high demand from customers within the medical devices market. More recently, however, trading has been affected by the well-publicised global shortage of micro processing chips, which are used in printers. The disruption to the supply chain has had an impact on performance during the reporting period and, consequently, the valuation has been reduced. Specialist IT integrator Flow has experienced challenging trading conditions resulting from hardware and component shortages, and a provision against cost has been taken to reflect the lower than expected trading performance.

 

New Investments

 

During the reporting period, two new private companies were added to the portfolio:

 

•      iAM Compliant is a software company that has established a strong position in the eLearning market and operates through two core divisions. The first, iAM Compliant, is a cloud-based estates and compliance management platform, covering areas such as estates management, health and safety, status reporting and premises checks. The division has achieved a good rate of recurring revenue and maintains a high client retention rate. The second division, iAM Learning, has developed a digital learning library that contains over 275 continuing professional development (CPD) and Institute of Occupational Safety and Health (IOSH) approved courses covering a wide range of topics such as cyber security, leadership, mental health and safeguarding. The courses are designed to be accessible and engaging, and existing clients include Countrywide, DPD, Dunelm, Lotus Cars and Moonpig. The funding from the Maven VCTs will enable the business to enhance product development, support sales and marketing initiatives and provide general working capital headroom.

 

•      Manufacture 2030 (M2030) has developed a software solution to assist large corporates with complex manufacturing supply chains to work with their suppliers to measure and reduce carbon emissions. The platform enables companies to collate environmental impact data and formulate reduction strategies, before tracking progress and reporting this to their customers. The business has developed a strong client base, including multinationals such as Asda, Bayer, Ford, General Motors, Morrisons and SC Johnson. The funding from the Maven VCT's is being used to expand M2030's market position in key sectors such as automotive, chemical, pharmaceuticals and retail, and to support further product development to enhance the platform's functionality.

 

The following investments have been completed during the reporting period:

 

Investments

 

 

Date

 

 

Sector

Investment

cost

£'000

New unlisted

 

 

 

2 degrees Limited

(trading as Manufacture 2030)

March 2023

Software & technology

698

iAM Compliant Limited

May 2023

Learning & development / recruitment technology

298

Total new unlisted

 

 

996

 

Follow-on unlisted

 

 

 

Draper & Dash Limited

(trading as RwHealth)

April 2023

Pharmaceuticals, biotechnology & healthcare

100

Enpal Limited

(trading as Guru Systems)

April 2023

Software & technology

82

Liftango Group Limited

February 2023

Software & technology

250

MirrorWeb Limited

February 2023

Software & technology

90

Relative Insight Limited

May 2023

Marketing & advertising technology

135

Turnkey Group (UK) Holdings Limited

March 2023

Software & technology

348

Zinc Digital Business Solutions Limited1

April & June 2023

Software & technology

209

Total follow-on unlisted

 

 

1,214

Total unlisted

 

 

2,210

 

Open-ended investment companies2

 

 

 

Royal London Short Term Fixed Income

Fund (Class Y Income)

February 2023

Money market fund

1,009

Royal London Short Term Money Market

Fund (Class Y Income)

March 2023

Money market fund

2,035

Total open-ended investment companies

 

 

3,044

 

Money market funds2

 

 

 

Aberdeen Standard Liquidity Fund (Lux) -

Sterling Fund (Class K3)

April 2023

Money market fund

1,004

Aviva Investors Sterling Liquidity Fund

(Class 3)

April 2023

Money market fund

1,003

BlackRock Institutional Sterling Liquidity

Fund (Core)

May 2023

Money market fund

1,003

Total money market funds

 

 

3,010

 

Private equity investment trusts2

 

 

 

abrdn Private Equity Opportunities Trust PLC (formerly Standard Life Private Equity

Trust PLC)

March 2023

Investment trust

226

Alliance Trust PLC

May 2023

Investment trust

149

Apax Global Alpha Limited

May 2023

Investment trust

50

HgCapital Trust PLC

March 2023

Investment trust

250

ICG Enterprise Trust PLC

May 2023

Investment trust

159

JPMorgan Global Growth & Income PLC

May 2023

Investment trust

125

NB Private Equity Partners Limited

March 2023

Investment trust

371

Total private equity investment trusts

 

 

1,330

 

Real estate investment trust2

 

 

 

Impact Healthcare REIT PLC

May 2023

Investment trust

236

Total real estate investment trust

 

 

236

 

Infrastructure investment trusts2

 

 

 

3i Infrastructure PLC

May 2023

Investment trust

260

BBGI Global Infrastructure SA

May 2023

Investment trust

280

International Public Partnerships Limited

May 2023

Investment trust

270

JLEN Environmental Assets Group Limited

May 2023

Investment trust

260

Pantheon Infrastructure PLC

March2023

Investment trust

250

Total infrastructure investment trusts

 

 

1,320

Total investments

 

 

11,150

1 Follow-on investments completed in two tranches.

2 Investments completed as part of the liquidity management strategy.

 

At the period end, the portfolio compromised of 129 unlisted and quoted investments, at a total cost of £67.68 million.

 



 

Realisations

 

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

 

Realisations

 

 

 

Year first

invested

 

 

 

Complete/

partial exit

Cost of shares disposed of

£'000

 

Value at 31 December

2022

£'000

 

 

Sales proceeds

£'000

 

 

Realised gain/(loss)

£'000

Gain/(loss)

over 31 December 2022 value

£'000

Unlisted

 

 

 

 

 

 

 

ADC Biotechnology Limited1

2017

Complete

-

-

249

249

249

Ensco 969 Limited

(trading as DPP)2

2013

Partial

104

124

95

(9)

(29)

Maven Co-invest Endeavour

Limited Partnership3

2013

Complete

4

773

795

791

22

Optoscribe Limited4

2018

Complete

-

-

135

135

135

R&M Engineering Group Limited

2013

Complete

1,087

268

187

(900)

(81)

Others

 

 

-

-

12

12

12

Total unlisted

 

 

1,195

1,165

1,473

278

308

Total realisations

 

 

1,195

1,165

1,473

278

308

1 Deferred consideration following the sale in March 2021.

2 Proceeds from loan note repayment exclude yield received, which is disclosed as revenue for financial reporting purposes.

3 Release of monies following the sale of the underlying company in June 2022.

4 Deferred consideration following the sale in January 2022.

 

Principal and Emerging Risks and Uncertainties

 

The principal and emerging risks and uncertainties facing the Company were set out in full in the Strategic Report contained within the 2022 Annual Report, and are the risks associated with investment in small and medium sized unlisted and AIM/AQSE quoted companies which, by their nature, carry a higher level of risk and are subject to lower liquidity than investments in larger quoted companies. The valuation of investee companies may be affected by economic conditions, the credit environment and other risks such as 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 Risk Committee 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.

 

The invasion of Ukraine by Russia was added to the Risk Register as an emerging risk during a previous period, as the Directors were not only aware of the heightened cyber security risk but were mindful of the impact that any change in the underlying economic conditions could have on the valuation of investment companies. These included fluctuating interest rates, increased fuel and energy costs, and the availability of bank finance, all of which could be impacted during times of geopolitical uncertainty and volatile markets. The Board and the Manager continue to monitor the impact of the conflict, and wider market conditions, on portfolio companies.

 

Share Buy-backs

 

Shareholders will be aware that a primary objective for the Board is to ensure that the Company retains sufficient liquidity for making investments in line with its stated policy, and for the continued payment of dividends. However, the Directors also acknowledge the need to maintain an orderly market in the Company's shares and have, therefore, delegated authority to the Manager for the Company to buy back shares in the market, for cancellation or to be held in treasury, subject always to such transactions being in the best interests of Shareholders.

 

It is intended that the Company should seek to maintain a share price that is at a discount of approximately 5% to the latest published NAV per share, subject to market conditions, availability liquidity and the maintenance of the Company's VCT qualifying status.

 

Shareholders should be aware that neither the Company nor the Manager can execute a direct transaction in the Company's shares. Any instruction to buy or sell shares on the secondary market must be directed through a stockbroker. A Shareholder, or their broker, can contact the Company's broker, Shore Capital Stockbrokers on 020 7647 8132, to discuss a transaction. It should, however, be noted that such transactions cannot take place whilst the Company is in a closed period, which is the time from the end of a reporting period until the announcement of the relevant results or an unaudited NAV. A closed period may also be introduced if the Directors and Manager are in possession of price sensitive information.

 

During the period under review, 1,775,000 shares were bought back at a total cost of £1,145,000.

 

VCT Regulatory Update

 

During the period under review, there were no further amendments to the rules governing VCTs. However, Shareholders may be aware that, as approved by the European Commission in 2015, the VCT scheme included a "sunset" clause, which provided that, unless the legislation was renewed by an HM Treasury order, income tax relief would no longer be available on subscriptions for new shares in VCTs made on or after 6 April 2025. There has been a considerable level of activity by industry representatives such as the Venture Capital Trust Association (VCTA), of which the Manager is an active member, and The Association of Investment Companies (AIC), of which the Company is a member, to demonstrate the important role of VCT investment in supporting SMEs across the country and stimulating economic growth and regional employment. The Board and the Manager welcomed the announcement by the UK Government in its Autumn 2022 budget statement of an intention to extend the income tax relief available on new VCT shares beyond 2025. This commitment was reaffirmed in the Spring 2023 budget, and the Manager will remain involved in discussions regarding the process for implementing this extension.

 

Consistent with industry best practice, the Board and the Manager continue to apply the International Private Equity and Venture Capital Valuation (IPEV) Guidelines (Valuation Guidelines) as the central methodology for all private company valuations. The Valuation Guidelines are the prevailing framework for fair value information in the private equity and venture capital industry, and the Directors and the Manager continue to adhere to the Valuation Guidelines when assessing all private company investments.

 

Environmental, Social and Governance (ESG) Considerations

 

Whilst your Company's investment policy does not incorporate specific ESG objectives, and investee companies are not required to meet any particular targets, Maven continues to develop its ESG framework and oversight capabilities, recognising the benefits and importance of incorporating these core principles into its investment approach. Early stage ESG due diligence is now a standard part of the pre-investment decision making process and is a core component within the selection criteria, thereby ensuring that all ESG risks and opportunities are discussed fully prior to the completion of any investment. During the period under review, in recognition of the growth within this area, the Manager has invested additional resource into its ESG capabilities, and the requirement to record and monitor detailed ESG information across the portfolio.

 

A number of investee companies are already highly focused on the environment or delivering improvements to society and local communities, and have set themselves specific ESG related goals. Where this is not the case, the Manager is able to support and advise on the value of improving these metrics and can help portfolio companies by sharing best practice.

 

The ESG regulatory landscape is evolving, and the Manager provides the Board with regular updates on the latest developments. A relevant regulation is the Task Force on Climate-related Financial Disclosures (TCFD) on which neither the Company nor the Manager are required to report. However, the Board and the Manager acknowledge the aims and importance of the TCFD, and, therefore, reporting in line with TCFD is an objective of the Manager as part of its approach to ESG.

 

Your Company has multiple investments in companies with strong ESG credentials that are achieving growth in expanding markets, and the Manager is committed to maintaining a responsible approach to new and existing investments. The Manager continues to be an active signatory to the UN Principles for Responsible Investment (UNPRI) and, at the time of writing, is in the process of preparing its first UNPRI report to demonstrate its ESG capabilities and commitment to the Principles. Additionally, the Manager is a signatory to the Investing in Women Code, which aims to reduce barriers to tools, resources and finance for UK based female entrepreneurs.

 

Outlook

 

With sufficient levels of liquidity, your Company's strategy remains focused on further growing and developing the investee company portfolio. The pipeline of potential new investments across Maven's regional network of offices remains strong and it is anticipated that there will be a good rate of new investment through the second half of the year. The Manager will also continue to work closely with existing portfolio companies, particularly those that are growing rapidly and demonstrating the potential to create significant Shareholder value, to ensure that their value is maximised at the point of exit. This dual focus on portfolio expansion and value maximisation is aimed at ensuring that a steady flow of profitable exits occur, in support of the objective of providing Shareholders with regular tax free dividend payments.

 

 

On behalf of the Board

Maven Capital Partners UK LLP

Secretary

 

30 August 2023

Summary of Investment Changes

 

For the Six Months Ended 30 June 2023

 

 

Valuation

31 December 2022

Net investment/ (disinvestment)1

Appreciation/ (depreciation)

Valuation

30 June 2023

 

£'000

%

£'000

£'000

£'000

%

Unlisted investments

 

 

 

 

 

 

Equities

45,900

51.8

198

(738)

45,360

50.6

Loan stock

14,470

16.3

148

(681)

13,937

15.5

 

60,370

68.1

346

(1,419)

59,297

66.1

AIM/AQSE investments2

 

 

 

 

 

 

Equities

3,988

4.4

464

(242)

4,210

4.7

 

Listed investments3

 

 

 

 

 

 

OEICs

-

-

3,044

(4)

3,040

3.4

Money market funds

-

-

3,010

-

3,010

3.4

Investment trusts

2,500

2.8

2,886

(24)

5,362

6.0

Total investments

66,858

75.3

9,750

(1,689)

74,919

 

Other net assets

21,786

24.7

(7,011)

-

14,775

16.4

Net assets

88,644

100.0

2,739

(1,689)

89,694

100.0

1  These movements include the transfer of the unlisted holding in Kanabo GP Limited into shares in AIM quoted Kanabo Group PLC, alongside the delisting from AIM of DeepMatter PLC, both of which took place during the reporting period.

2  Shares traded on the Alternative Investment Market (AIM) and the Aquis Stock Exchange (AQSE).

3  These holdings represent the liquidity management portfolio, which has been constructed from a range of carefully selected, permitted  non-qualifying holdings in open-ended investment companies (OEICs), money market funds and investment trusts.

 



 

Investment Portfolio Summary

 

As at 30 June 2023

 

 

Investment

Valuation

£'000

Cost

£'000

% of

total

assets

% of

equity

held

% of equity

held by other clients1

Unlisted

 

 

 

 

 

BioAscent Discovery Limited

6,335

1,532

7.1

26.1

13.9

Horizon Ceremonies Limited

(trading as Horizon Cremation)

4,769

2,463

5.3

12.9

39.7

Bright Network (UK) Limited

2,989

1,383

3.3

11.7

28.2

Rockar 2016 Limited (trading as Rockar)

2,615

1,766

2.9

6.2

13.2

WaterBear Education Limited

2,075

987

2.3

20.1

19.1

Ensco 969 Limited (trading as DPP)

1,994

1,657

2.2

7.4

27.1

MirrorWeb Limited

1,743

890

1.9

8.5

41.4

QikServe Limited

1,674

1,674

1.9

7.6

8.2

Relative Insight Limited

1,611

1,135

1.8

5.7

26.0

CB Technology Group Limited

1,584

1,097

1.8

18.6

56.4

Whiterock Group Limited

1,482

1,014

1.7

13.0

17.0

Vodat Communications Group (VCG) Holding Limited

1,427

1,240

1.6

8.4

23.5

NorthRow Limited (formerly Contego Solutions Limited)

1,364

1,581

1.5

12.1

20.2

Delio Limited

1,339

994

1.5

4.0

9.6

ebb3 Limited

1,285

1,307

1.4

31.4

47.5

Glacier Energy Services Holdings Limited

1,219

1,540

1.4

6.0

21.7

HCS Control Systems Group Limited

1,201

1,201

1.3

10.7

25.8

Nano Interactive Group Limited

1,126

625

1.3

3.7

11.2

Martel Instruments Holdings Limited

1,038

701

1.2

14.7

29.6

Filtered Technologies Limited

1,034

950

1.2

9.7

15.8

Hublsoft Group Limited

1,017

800

1.1

7.3

16.4

RevLifter Limited

1,000

1,000

1.1

10.2

16.4

Cat Tech International Limited

875

1,115

1.0

8.4

21.6

Boomerang Commerce Inc

(trading as CommerceIQ)2

873

1,164

1.0

0.2

0.3

DiffusionData Limited

(formerly Push Technology Limited)

855

625

1.0

2.9

13.7

Precursive Limited

750

750

0.8

5.4

28.8

Liftango Group Limited

748

748

0.8

3.1

10.9

Horizon Technologies Consultants Limited

746

448

0.8

3.1

14.1

Flow UK Holdings Limited

735

1,047

0.8

12.7

22.3

TC Communications Holdings Limited

734

958

0.8

10.7

19.3

2 degrees Limited (trading as Manufacture 2030)

698

698

0.8

2.5

8.6

Growth Capital Ventures Limited

650

639

0.7

11.5

36.0

Maven Capital (Marlow) Limited

650

650

0.7

0.0

100.0

Bud Systems Limited

647

647

0.7

3.7

13.3

Draper & Dash Limited (trading as RwHealth)

498

498

0.6

2.0

11.6

Turnkey Group (UK) Holdings Limited

497

497

0.6

7.7

31.0

Summize Limited

448

448

0.5

2.9

30.2

mypura.com Group Limited (trading as Pura)

431

216

0.5

1.1

21.3

The Algorithm People Limited

420

420

0.5

6.1

10.2

Project Falcon Topco Limited

(trading as Quorum Cyber)3

419

419

0.5

1.1

1.9

Zinc Digital Business Solutions Limited

408

408

0.5

7.5

27.1

CODILINK UK Limited (trading as Coniq)

400

400

0.4

1.1

3.8

GradTouch Limited

400

200

0.4

2.0

32.7

FodaBox Limited

398

398

0.4

1.3

3.7

Enpal Limited (trading as Guru Systems)

381

381

0.4

3.2

18.4

Shortbite Limited (trading as Fixtuur)

367

610

0.4

8.0

49.3

Novatus Global Limited

(formerly Novatus Advisory Limited)

348

348

0.4

2.3

11.0

Biorelate Limited

348

348

0.4

2.0

23.7

Plyable Limited

348

348

0.4

3.3

14.1

HiveHR Limited

346

346

0.4

4.4

40.2

CYSIAM Limited

336

199

0.4

3.5

16.5

ORCHA Health Limited

332

332

0.4

1.4

4.2

Snappy Shopper Limited

298

298

0.3

0.4

1.3

iAM Compliant Limited

298

298

0.3

3.9

35.0

ISN Solutions Group Limited

216

467

0.2

7.8

47.2

Rico Developments Limited (trading as Adimo)

200

200

0.2

1.5

8.2

XR Games Limited

149

149

0.2

0.8

19.4

Reed Thermoformed Packaging Limited

(trading as iPac Packaging Innovations)

106

100

0.1

0.5

11.8

Other unlisted investments

23

2,315

-



Total unlisted

59,297

47,669

66.1

 

 







AIM/AQSE quoted






Kanabo Group PLC4

466

2,986

0.5

25.1

42.1

GENinCode PLC

435

600

0.5

4.0

7.1

MaxCyte Inc

421

207

0.5

0.1

0.1

Intelligent Ultrasound Group PLC

343

400

0.4

1.2

0.8

Oxford Metrics PLC

271

80

0.3

0.2

-

Verici Dx PLC

241

438

0.3

1.3

0.3

Avacta Group PLC

214

33

0.2

0.1

0.1

KRM22 PLC

189

220

0.2

1.2

-

Diaceutics PLC

178

161

0.2

0.3

0.3

C4X Discovery Holdings PLC

177

137

0.2

0.4

0.5

SkinBioTherapeutics PLC

156

208

0.2

0.7

-

Eden Research PLC

128

83

0.1

0.4

1.0

Destiny Pharma PLC

123

300

0.1

0.6

0.8

One Media IP Group PLC

120

186

0.1

1.2

-

Creo Medical Group PLC

98

497

0.1

0.2

-

Pelatro PLC

72

496

0.1

1.8

0.6

Spectral MD Holdings PLC

67

99

0.1

0.1

0.1

Faron Pharmaceuticals PLC

66

70

0.1

-

0.1

Feedback PLC

61

121

0.1

0.4

1.2

TPXimpact Holdings PLC

(formerly The Panoply Holdings PLC)

54

107

0.1

0.2

-

Polarean Imaging PLC

51

129

0.1

0.1

0.5

Access Intelligence PLC

48

35

0.1

0.1

0.4

AFC Energy PLC

45

57

0.1

-

-

ReNeuron Group PLC

35

277

-

0.7

1.4

Vianet Group PLC

32

49

-

0.1

1.3

Crossword Cybersecurity PLC

30

122

-

0.4

1.7

RUA Life Sciences PLC

27

100

-

0.4

1.3

Hardide PLC

24

122

-

0.3

0.2

Angle PLC

17

82

-

0.1

-

Oncimmune Holdings PLC

8

100

-

0.1

0.4

Osirium Technologies PLC

5

100

-

0.2

1.8

Seeen PLC

5

75

-

0.2

0.8

Other quoted investments

3

395

-



Total AIM/AQSE quoted

4,210

9,072

4.7

 

 

 

Private equity investment trusts5






HgCapital Trust PLC

777

531

0.9

0.1

0.1

abrdn Private Equity Opportunities Trust PLC

(formerly Standard Life Private Equity Trust PLC)

435

367

0.5

0.1

0.1

Apax Global Alpha Limited

433

344

0.5

-

0.1

ICG Enterprise Trust PLC

418

358

0.5

0.1

0.1

CT Private Equity Trust PLC

(formerly BMO Private Equity Trust PLC)

400

293

0.4

0.1

0.2

Princess Private Equity Holding Limited

347

336

0.4

0.1

0.1

NB Private Equity Partners Limited

338

371

0.4

-

-

HarbourVest Global Private Equity Limited

236

153

0.3

-

-

Alliance Trust PLC

151

149

0.2

-

-

JPMorgan Global Growth & Income PLC

127

125

0.1

-

-

Pantheon International PLC

120

99

0.1

0.1

0.2

Total private equity investment trusts

3,782

3,126

4.3

 

 







Fixed income investment trusts5






TwentyFour Income Fund Limited

153

196

0.2

0.1

-

Alcentra European Floating Rate Income Fund Limited

9

11

-

-

-

Total fixed income investment trusts

162

207

0.2

 

 







Real estate investment trust5






Impact Healthcare REIT PLC

216

236

0.2

-

0.1

Total real estate investment trust

216

236

0.2

 

 

 






Infrastructure investment trusts5






BBGI Global Infrastructure SA

258

280

0.3

-

0.1

3i Infrastructure PLC

249

260

0.3

-

-

International Public Partnerships Limited

243

270

0.3

-

-

JLEN Environmental Assets Group Limited

227

260

0.2

-

0.1

Pantheon Infrastructure PLC

225

250

0.2

0.1

0.2

Total infrastructure investment trusts

1,202

1,320

1.3

 

 







Open-ended investment companies5

 

 

 

 

 

Royal London Short Term Money Market Fund

(Class Y Income)

2,027

2,035

2.3

-

0.1

Royal London Short Term Fixed Income Fund

(Class Y Income)

1,013

1,009

1.1

-

-

Total open-ended investment companies

3,040

3,044

3.4

 

 

 

 

 

 

 

 

Money market funds5

 

 

 

 

 

Aberdeen Standard Liquidity Fund (Lux) - Sterling Fund (Class K3)

1,004

1,004

1.2

-

-

Aviva Investors Sterling Liquidity Fund (Class 3)

1,003

1,003

1.1

-

-

BlackRock Institutional Sterling Liquidity Fund (Core)

1,003

1,003

1.1

-

0.1

Total money market funds

3,010

3,010

3.4

 

 

 

 

 

 

 

 

Total investments

74,919

67,684

83.6

 

 

1 Other clients of Maven Capital Partners UK LLP.

2 This holding reflects the retained minority interest following the sale of e.fundamentals (Group) Limited to CommerceIQ in July 2022.

3 Retained minority interest from the sale of Quorum Cyber Security Limited in December 2022.

4 The holding in this investment resulted from the sale of The GP Service (UK) Limited, which completed in February 2022. During the        reporting period, the unlisted shares in Kanabo GP Limited were, in accordance with the terms of the original transaction, exchanged for shares in AIM quoted Kanabo Group PLC.

5 Liquidity management portfolio.

 

Shaded line indicates that the investment was completed pre November 2015.

 



 

Income Statement

 

For the six month ended 30 June 2023

 


Six months ended

30 June 2023

Six months ended

30 June 2022

Year ended

31 December 2022

 

 

(unaudited)

(unaudited)

(audited)

 

 

Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

(Losses)/gains on investments

-         

(1,689)

(1,689)

      -

(3,719)  

(3,719)

-

(787)

(787)

Income from investments

561   

-      

561

  713

       -

 713

1,297

-

1,297

Other income

176      

-     

176      

        5

      -

       5

92

-

92

Investment management fees

(225)

(898) 

(1,123)

  (211)

 (842)

(1,053)

(435)

(1,738)

(2,173)

Other expenses

(286) 

-   

(286)

    (218)

      -

(218)

(497)

-

(497)

Net return on ordinary activities before taxation

226 

(2,587)

(2,361)

    289

 (4,561)

(4,272)

457

(2,525)

(2,068)

 










Tax on ordinary activities

-   

-  

-      

    (18)

   18

      -

-

-

-

Return attributable to Equity Shareholders

226   

(2,587)

(2,361)

    271

 (4,543)

(4,272)

457

(2,525)

(2,068)

 










Earnings per share (pence)

0.17    

(1.92) 

(1.75)

    0.22

 (3.73)

  (3.51)

    0.36

 (2.00)

  (1.64)

 

All gains and losses are recognised in the Income Statement.

 

The total column of this statement is the Profit & Loss Account of the Company. The revenue and capital columns are supplementary to this and are prepared under guidance published by the AIC. 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 earnings per share figures are relevant. The basic and diluted earnings per share are, therefore, identical.

 

The accompanying Notes are an integral part of the Financial Statements.

 

 



 

Statement of Changes in Equity

 

For the six month ended 30 June 2023

 

Six months ended 30 June 2023 (unaudited)

 

Non-distributable reserves

Distributable reserves

 Share

capital

 £'000

 Share

premium

 account

 £'000

 Capital

redemption

 reserve

 £'000

 Capital

 reserve

unrealised

 £'000

 Capital 

 reserve

realised

 £'000

 Special

distributable

 reserve

 £'000

Revenue

 reserve

 £'000

 Total

 £'000

At 31 December 2022

12,977

37,443

762

12,100

4,213

19,975

1,174

88,644

Net return

-

-

-

(1,893)

204

(898)

226

(2,361)

Dividends paid

-

-

-

-

-

(2,328)

(68)

(2,396)

Repurchase and cancellation of shares

(177)

-

177

-

-

(1,145)

-

(1,145)

Net proceeds of share issue

978

5,729

-

-

-

-

-

6,707

Net proceeds of DIS issue

37

208

-

-

-

-

-

245

At 30 June 2023

13,815

43,380

939

10,207

4,417

15,604

1,332

89,694

 

Six months ended 30 June 2022 (unaudited)

 

Non-distributable reserves

Distributable reserves

 Share

capital

 £'000

 Share

premium

 account

 £'000

 Capital

redemption

 reserve

 £'000

 Capital

 reserve

unrealised

 £'000

 Capital 

 reserve

realised

 £'000

 Special

distributable

 reserve

 £'000

Revenue

 reserve

 £'000

 Total

 £'000

At 31 December 2021

10,992

  23,244

     502

  14,583

   2,517

    29,367

   1,107

 82,312

Net return

     -

        -

        -

  (7,206)

  3,487

      (824)

    271

(4,272)

Dividends paid

      -

      -

   -

    -

 -

 (3,687)

   (35)

(3,722)

Repurchase and cancellation of shares

  (126)

      -

      126

         -

       -

     (865)

       -

  (865)

Net proceeds of share issue

  2,157

  13,692

        -

         -

        -

             -

        -

 15,849

Net proceeds of DIS issue

    49

   282

          -

        -

        -

            -

        -

   331

At 30 June 2022

13,072

  37,218

     628

   7,377

  6,004

    23,991

  1,343

 89,633

 

Year ended 31 December 2022 (audited)

 

Non-distributable reserves

Distributable reserves

 

 Share

capital

 £'000

 Share

premium

 account

 £'000

 Capital

redemption

 reserve

 £'000

 Capital

 reserve

unrealised

 £'000

 Capital 

 reserve

realised

 £'000

 Special

distributable

 reserve

 £'000

Revenue

 reserve

 £'000

 Total

 £'000

At 31 December 2021

10,992

  23,244

     502

  14,583

   2,517

    29,367

   1,107

 82,312

Net return

     -

        -

        -

  (2,483)

  1,696

      (1,738)

    457

(2,068)

Dividends paid

      -

      -

   -

    -

 -

 (5,940)

   (390)

(6,330)

Repurchase and cancellation of shares

  (260)

      -

      260

         -

       -

     (1,714)

       -

 (1,714)

Net proceeds of share issue

  2,157

  13,692

        -

         -

        -

             -

        -

 15,849

Net proceeds of DIS issue*

    88

  507

          -

        -

        -

            -

        -

   595

At 31 December 2022

12,977

  37,443

     762

   12,100

  4,213

    19,975

  1,174

 88,644

 

The capital reserve unrealised is generally non-distributable, other than the part of the reserve relating to gains/(losses) attributable to readily realisable quoted investments that are distributable.

 

Where all, or an element, of the proceeds of sales have not been received in cash or cash equivalent, and are not readily convertible to cash, they do not qualify as realised gains for the purposes of distributable reserves calculations and, therefore, do not form part of distributable reserves.

 

The accompanying Notes are an integral part of the Financial Statements.

 

*DIS represents the Dividend Investment Scheme.

Balance Sheet

 

As at 30 June 2023

 


 30 June 2023

 (unaudited)

 £'000

 30 June 2022

 (unaudited)

 £'000

 31 December 2022

 (audited)

 £'000

Fixed assets




Investments at fair value through profit or loss

74,919

    63,480

66,858





Current assets




Debtors

1,542

       1,322

1,610

Cash 

13,419

    24,968

20,352


14,961

     26,290

21,962

Creditors




Amounts falling due within one year

(186)

       (137)

(176)

Net current assets 

14,775

    26,153

21,786

Net assets 

89,694

    89,633

88,644

 

Capital and reserves

 



Called up share capital

13,815

    13,072

12,977

Share premium account

43,380

    37,218

37,443

Capital redemption reserve

939

         628

762

Capital reserve - unrealised

10,207

       7,377

12,100

Capital reserve - realised

4,417

      6,004

4,213

Special distributable reserve

15,604

    23,991

19,975

Revenue reserve

1,332

     1,343

1,174

Net assets attributable to Ordinary Shareholders

89,694

    89,633

88,644





Net asset value per Ordinary Share (pence)

64.92

    68.56

68.30

 

The Financial Statements of Maven Income and Growth VCT 4 PLC, registered number SC272568, were approved by the Board and were signed on its behalf by:

 

 

Fraser Gray

Director

 

30 August 2023

 

The accompanying Notes are an integral part of the Financial Statements.

 



 

Cash Flow Statement

 

For the Six Months Ended 30 June 2023

 


Six months ended

30 June 2023

(unaudited)

 £'000

Six months ended

30 June 2022

(unaudited)

 £'000

Year ended

31 December 2022

(audited)

 £'000

Net cash flows from operating activities

(662)

      (1,424)

      (2,187)

 




Cash flows from investing activities




Purchase of investments

(11,150)

       (1,010)

   (5,471)

Sale of investments

1,468

     5,267

    9,068

Net cash flows from investing activities

(9,682)

      4,257

         3,597

 




Cash flows from financing activities




Equity dividends paid

(2,396)

     (3,722)

(6,330)

Net proceeds of DIS issue

245

      331

       595

Issue of Ordinary Shares

6,707

    15,849

      15,849

Repurchase of Ordinary Shares

(1,145)

   (865)

(1,714)

Net cash flows from financing activities

3,411

   11,593

    8,400

 




Net increase/(decrease) in cash

(6,933)

   14,426

9,810

 




Cash at beginning of period

20,352

10,542

 10,542

Cash at end of period

13,419

24,968

   20,352

 

The accompanying Notes are an integral part of the Financial Statements.

 



 

Notes to the Financial Statements

 

For the Six Months Ended 30 June 2023

 

1.    Accounting policies

 

The financial information for the six months ended 30 June 2023 and the six months ended 30 June 2022 comprises non-statutory accounts within the meaning of S435 of the Companies Act 2006. The financial information contained in this report has been prepared on the basis of the accounting policies set out in the Annual Report and Financial Statements for the year ended 31 December 2022, which have been filed at Companies House and contained an Auditor's Report that 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. This reserve is non-distributable.

 

Capital redemption reserve

 

The nominal value of shares repurchased and cancelled is represented in the capital redemption reserve. This reserve is non-distributable.

 

Capital reserve - unrealised

 

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. This reserve is generally non-distributable, other than the part of the reserve relating to gains/(losses) attributable to readily realisable quoted investments that are distributable.

 

Capital reserve - realised

 

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. This reserve is distributable.

 

Special distributable reserve

 

The total cost to the Company of the repurchase and cancellation of shares is represented in the special distributable reserve account. The special distributable reserve also represents capital dividends, capital investment management fees and the tax effect of capital items. This reserve is distributable.

 

Revenue reserve

 

The revenue reserve represents accumulated profits retained by the Company that have not been distributed to Shareholders. This reserve is distributable.

 

3.    Return per Ordinary Share

 

 

Six months ended 30 June 2023

The returns per share have been based on the following figures:

Weighted average number of Ordinary Shares

 

Revenue return

Capital return

 

134,913,434

 

£226,000

(£2,587,000)

Total return

(£2,361,000)

 

Directors' Responsibility Statement

 

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

 

•      the Financial Statements for the six months ended 30 June 2023 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 December 2023; 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 registered office of the Company at Kintyre House, 205 West George Street, Glasgow G2 2LW; at the office of the Manager, Maven Capital Partners UK LLP, Saddlers House, 44 Gutter Lane, London, EC2V 6BR; and, in due course, on the Company's webpage at mavencp.com/migvct4.

 

Neither the content of the Company's webpage nor the contents of any website accessible from hyperlinks on the Company's webpage (or any other webpage) is incorporated into, or forms part of, this announcement.

 

 

By order of the Board

Maven Capital Partners UK LLP

Secretary

 

30 August 2023

 

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