TIDMMIG2
RNS Number : 1406S
Maven Income and Growth VCT 2 PLC
29 September 2017
Maven Income and Growth VCT 2 PLC
Interim Management Report for the six months ended 31 July 2017
(unaudited)
The Directors announce the unaudited Interim Management Report
for the six months ended 31 July 2017.
Highlights
-- NAV total return of 98.09p per share at 31 July 2017, compared to 99.24p at 31 January 2017
-- NAV at 31 July 2017 of 47.12p per share after payment of the
final dividend of 2.25p per share
-- Enhanced interim dividend of 3.41p per share paid on 15 September 2017
-- Four new VCT qualifying private company holdings added to the
portfolio, with a further one completed post the period end
-- Large pipeline of VCT qualifying investments, with a number in advanced process
Overview
During the reporting period, your Company completed four new VCT
qualifying investments in private companies operating across a
range of diverse sectors, and a further new investment completed
after the period end. The majority of the businesses in the
investee portfolio have continued to trade well. The NAV total
return was 98.09p per share at the period end.
The Directors and the Manager recognise the importance of
tax-free distributions to Shareholders and the Board was pleased to
declare an enhanced interim dividend of 3.41p per share.
In 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, Maven has provided
development capital to eleven qualifying private companies,
demonstrating its 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 primarily to the requirement to secure Advance
Assurance tax clearance from HM Revenue & Customs (HMRC) for
each new investment.
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 VCT tax
clearance process, only completing investments once Advance
Assurance has been secured. The investment team continues to
progress all other aspects of live transactions in order to
facilitate a swift completion once approval is granted. There are a
number of active transactions that are well-progressed and it is
anticipated that there will be a good rate of new investment
activity through the second half of the financial year.
Dividends
As highlighted by the Board in the 2017 Annual Report,
Shareholders should be aware that the move 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.
Due to a number of recent profitable realisations, and in order to
ensure your Company's ongoing compliance with the VCT regulations,
the Board considered it appropriate to declare the early payment of
an enhanced interim dividend.
The Board has, therefore, declared an interim capital dividend
in respect of the year ending 31 January 2018, of 3.41p per
Ordinary Share, which was paid on 15 September 2017 to Shareholders
on the register at close of business on 25 August 2017. Since the
Company's launch, and after receipt of the interim dividend,
Shareholders will have received 54.38p per share in tax-free
dividends. The effect of paying the dividend will be to reduce the
NAV of the Company by the total cost of the distribution.
Whilst 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, it is the Board's intention to
maintain distributions for the full year at a similar level to that
of the year ended 31 January 2017, although this will be kept under
close review.
Portfolio Developments
The portfolio of private company holdings has generally
performed well, resulting in the valuations of a number of investee
companies being increased. It is reassuring to note that, 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 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 by the acquisition, in
April 2016, of NSI, a Belgian based 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
enhanced by the benefits of a number of productivity improvement
projects implemented earlier in the year. This strong momentum has
continued in 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, supporting
the incumbent executive team through a management buy-out. Since
investment, Attraction World 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. The balance sheet remains healthy and the
business continues to reduce its core term debt.
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 recent
circumstances at one of its trading subsidiaries and CHS
Engineering Services was placed into administration. In addition,
in light of current trading, selective valuation provisions were
taken across a small number of other 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 seeing
early signs of improving market conditions which, after three years
of steady decline, appear to have stabilised. Following extensive
cost cutting, the Maven portfolio companies are operating with lean
structures and have limited or no external debt. As such, they 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 have been set conservatively, there is
evidence of growing confidence with order books and workshops
recording higher activity levels. The Board will continue to
monitor the performance of investee companies in this sector,
maintaining a conservative approach to valuations until there is
evidence of a sustained recovery.
The recent new investments in private equity investment trusts
and real estate investment trusts have performed well over the
period, generating valuable capital growth and income through
dividend payments to your Company. The Board and the Manager are
encouraged by this contribution and believe that these investments
will 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
and will continue to consider a range of other permitted income
generating investment options.
New Investments
During the period, your Company provided development capital to
four private companies:
-- ebb3 is a technology company that develops mobile workspace
solutions, addressing the need for seamless and 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.
-- 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.
-- 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.
The following investments have been completed during the
reporting period:
Investment
cost
Date Sector GBP'000 Website
------------------------ ---------- ------------------ ---------- --------------------------
Unlisted
Contego Fraud Solutions July 2017 Software 199 www.contego.com
Limited &
computer
services
ebb3 Limited May 2017 Software 133 www.ebb3.com
&
computer
services
Horizon Cremation May 2017 Support services 292 www.horizoncremation.co.uk
Limited
ITS Technology June 2017 Telecommunication 298 www.itstechnologygroup.com
Group Limited
services
------------------------ ---------- ------------------ ---------- --------------------------
Total unlisted 922
-------------------------------------------------------- ---------- --------------------------
Total investments 922
-------------------------------------------------------- ---------- --------------------------
At the period end, the portfolio stood at 65 unlisted and quoted
investments, at a total cost of GBP16.26 million.
Realisations
During the period, further recovery proceeds were released for
Cyclotech and Space Student Living.
The table below gives details of all realisations achieved, and
deferred considerations received, during the reporting period:
Gain/(loss)
Cost Value over
of shares at Realised 31 January
Year Complete/ disposed 31 January Sales gain/ 2017
first partial of 2017 proceeds (loss) value
invested exit GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ----------- ------------ ----------- ------------ ---------- ---------- -----------
Unlisted
Constant Progress
Limited 2015 Complete 400 400 400 - -
Cyclotech Limited 2007 Complete - - 35 35 35
Equator Capital
Limited 2015 Complete 400 400 400 - -
Llanllyr Water
Company Limited 2002 Complete 123 105 94 (29) (11)
Space Student
Living Limited 2011 Partial - 44 44 44 -
Toward Technology
Limited 2015 Complete 400 400 400 - -
------------------ ----------- ------------ ----------- ------------ ---------- ---------- -----------
Total unlisted 1,323 1,349 1,373 50 24
--------------------------------------------- ----------- ------------ ---------- ---------- -----------
Total disposals 1,323 1,349 1,373 50 24
--------------------------------------------- ----------- ------------ ---------- ---------- -----------
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
Since 31 July 2017, one new private company asset has been added
to the portfolio.
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.
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.
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 into 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.
In addition, in response to the increased volume of VCT
applications submitted and the resultant delays experienced in
obtaining clearance for proposed investments, a consultation was
launched into the options to streamline the Advance Assurance
service provided by HMRC. The summary responses of this
consultation were released in late March 2017 and a further
detailed report and analysis is expected in due course.
Outlook
The Manager is encouraged by the performance achieved during the
reporting period. Notwithstanding the pressures of the uncertain
economic and political backdrop referred to above, the portfolio of
investee companies has generally continued to trade well, with no
discernible impact on performance as a consequence of the
uncertainty. This demonstrates the strength and breadth of the
underlying portfolio and its ability to continue to generate
positive returns for Shareholders.
Whilst it is early days for a number of the new investee
companies, initial indications suggest that they are performing to
plan and should, over time, represent valuable additions to the
portfolio. During the period, Maven extended its nationwide
presence through the opening of four new offices, 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 be at a higher level compared
to previous periods, subject to securing Advance Assurance from
HMRC on a case by case basis.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
29 September 2017
Summary of Investment Changes
For the Six Months Ended 31 July 2017
Valuation
31 January Net investment/ Appreciation/ Valuation
2017 (disinvestment) (depreciation) 31 July 2017
GBP'000 % GBP'000 GBP'000 GBP'000 %
--------------------- --------------- ---------------- --------------- ---------------
Unlisted investments
Equities 6,893 33.6 89 (76) 6,906 36.1
Loan stock 9,032 44.1 (540) (422) 8,070 42.2
--------------------- ------- ------ ---------------- --------------- ------- ------
15,925 77.7 (451) (498) 14,976 78.3
AIM/NEX investments
Equities 113 0.6 - 15 128 0.7
Listed investments
Equities 10 - - 5 15 0.1
Investment
trusts 1,063 5.2 - 88 1,151 6.0
--------------------- ------- ------ ---------------- --------------- ------- ------
Total investments 17,111 83.5 (451) (390) 16,270 85.1
Other net assets 3,391 16.5 (537) - 2,854 14.9
--------------------- ------- ------ ---------------- --------------- ------- ------
Net assets 20,502 100.0 (988) (390) 19,124 100.0
--------------------- ------- ------ ---------------- --------------- ------- ------
Investment Portfolio Summary
As at 31 July 2017
% of equity
held by
Valuation Cost % of net % of equity other
GBP'000 GBP'000 assets held clients(1)
---------------------------------------------- ----------- --------- ---------- ------------- -----------
Unlisted
Lemac No. 1 Limited (trading as John
McGavigan) 1,179 376 6.1 4.9 31.9
Torridon (Gibraltar) Limited 1,101 198 5.7 2.2 37.8
SPS (EU) Limited 788 364 4.1 3.0 39.5
Majenta Logistics Limited 750 750 3.8 9.9 39.9
Vectis Technology Limited 750 750 3.8 9.9 39.9
Martel Instruments Holdings Limited 685 748 3.6 9.1 35.2
Ensco 969 Limited (trading as DPP) 653 584 3.4 2.5 32.0
CatTech International Limited 507 323 2.7 3.1 26.9
Onyx Logistics Limited 500 500 2.6 9.9 39.9
Rockar 2016 Limited (trading as Rockar) 483 483 2.5 2.7 11.1
Glacier Energy Services Holdings Limited 434 434 2.3 1.7 26.0
Vodat Communications Group Limited 413 298 2.2 3.5 38.3
The GP Service (UK) Limited 398 398 2.1 4.9 27.6
JT Holdings (UK) Limited (trading as
Just Trays) 392 298 2.1 3.3 26.7
Flow UK Holdings Limited 374 374 2.0 4.5 30.5
Castlegate 737 Limited (trading as Cursor
Controls) 370 224 1.9 2.3 45.2
Fathom Systems Group Limited 355 355 1.9 4.0 56.0
CB Technology Group Limited 347 347 1.8 7.1 71.9
GEV Holdings Limited 336 336 1.8 2.1 33.9
HCS Control Systems Group Limited 305 423 1.6 3.4 33.1
ITS Technology Group Limited 298 298 1.6 2.9 19.2
QikServe Limited 298 298 1.6 3.0 17.0
Horizon Cremation Limited 292 292 1.5 9.8 74.0
R&M Engineering Group Limited 268 357 1.4 4.0 66.6
Maven Co-invest Endeavour Limited Partnership 261 227 1.4 5.0 95.0
(invested in Global Risk Partners)
RMEC Group Limited 249 249 1.3 1.6 48.5
Metropol Communications Limited 225 225 1.2 9.9 39.9
Chic Lifestyle Limited (trading as Chic
Retreats) 224 224 1.2 6.7 40.1
Attraction World Holdings Limited 220 12 1.2 3.4 35.0
Whiterock Group Limited 209 209 1.1 4.5 20.5
Contego Fraud Solutions Limited 199 199 1.0
Flexlife Group Limited 182 249 1.0 1.0 13.6
TC Communications Holdings Limited 180 309 0.9 2.6 27.4
Lambert Contracts Holdings Limited 145 408 0.8 6.1 58.6
ebb3 Limited 133 133 0.7
ISN Solutions Group Limited 115 181 0.6 2.6 52.4
Endura Limited 114 114 0.6 0.3 5.5
Investment Portfolio Summary (Continued)
As at 31 July 2017
% of equity
held by
Valuation Cost % of net % of equity other
GBP'000 GBP'000 assets held clients(1)
------------------------------ ----------- --------- ---------- ------------- -----------
Unlisted (continued)
Growth Capital Ventures
Limited 100 100 0.5 2.8 19.9
Lawrence Recycling &
Waste Management Limited 52 367 0.3 4.0 58.0
Claven Holdings Limited 46 139 0.2 9.5 40.5
Other unlisted investments 46 1,219 0.2
------------------------------ ----------- --------- ---------- ------------- -----------
Total unlisted investments 14,976 14,372 78.3
------------------------------ ----------- --------- ---------- ------------- -----------
Quoted
Cello Group PLC 65 53 0.4 0.1 0.4
Plastics Capital PLC 29 25 0.2 0.1 1.3
Vianet Group PLC (formerly
Brulines Group PLC) 25 31 0.1 0.1 1.4
esure Group PLC 15 - 0.1 - -
Gordon Dadds Group PLC
(formerly Work Group
PLC) 9 251 - 1.1 2.0
Other quoted investments - 488 -
------------------------------ ----------- --------- ---------- ------------- -----------
Total quoted investments 143 848 0.8
------------------------------ ----------- --------- ---------- ------------- -----------
Private equity investment
trusts
Princess Private Equity
Holding Limited 124 98 0.6 - 0.1
F&C Private Equity Investment
Trust PLC 121 103 0.6 0.1 0.3
HgCapital Trust PLC 120 100 0.6 - 0.1
Apax Global Alpha Limited 116 99 0.6 - 0.1
Standard Life Private
Equity Trust PLC 52 43 0.4 - -
------------------------------ ----------- --------- ---------- ------------- -----------
Total private equity
investment trusts 533 443 2.8
------------------------------ ----------- --------- ---------- ------------- -----------
Real estate investment
trusts
Schroder REIT Limited 107 99 0.6 - 0.2
Custodian REIT PLC 106 99 0.6 - 0.2
Target Healthcare REIT
Limited 105 98 0.5 - 0.2
Standard Life Investment
Property 104 99 0.5 - 0.2
Income Trust Limited
British Land Company
PLC 101 99 0.5 - -
Regional REIT Limited 95 99 0.5 - 0.2
------------------------------ ----------- --------- ---------- ------------- -----------
Total real estate investment
trusts 618 593 3.2
------------------------------ ----------- --------- ---------- ------------- -----------
Total investments 16,270 16,256 85.1
------------------------------ ----------- --------- ---------- ------------- -----------
(1) Other clients of Maven Capital Partners UK LLP.
Income Statement
For the Six Months Ended 31 July 2017
Six months ended Six months ended Year ended
31 July 2017 31 July 2016 31 January 2017
(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 - (390) (390) - 224 224 - 1,070 1,070
Income from
investments 284 - 284 278 - 278 627 - 627
Other income 4 - 4 1 - 1 4 - 4
Investment (26) (229) (255) (29) (264) (293) (70) (632) (702)
management fees
Other expenses (108) - (108) (121) - (121) (302) - (302)
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
Net return on
ordinary 154 (619) (465) 129 (40) 89 259 438 697
activities before
taxation
Tax on ordinary
activities (11) 11 - (12) 12 - (51) 51 -
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
Return attributable
to Equity Shareholders 143 (608) (465) 117 (28) 89 208 489 697
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
Earnings per
share (pence) 0.35 (1.50) (1.15) 0.29 (0.07) 0.22 0.51 1.19 1.70
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
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 31 July 2017
Six months ended Share Capital Capital Special Capital
31 July 2017 Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 January
2017 4,058 9,473 (11,894) 454 17,618 346 447 20,502
Net return - - (168) (440) - - 143 (465)
Dividends paid - - (832) - - - (81) (913)
Repurchase and - - - - - - - -
cancellation
of shares
------------------ --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 July 2017 4,058 9,473 (12,894) 14 17,618 346 509 19,124
------------------ --------- -------- --------- ----------- -------------- ----------- --------- ---------
Six months ended Share Capital Capital Special Capital
31 July 2016 Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 January
2016 4,109 9,473 (11,296) 821 17,842 295 526 21,770
Net return - - (179) 151 - - 117 89
Dividends paid - - (719) - - - (205) (924)
Repurchase and
cancellation
of shares (22) - - - (101) 22 - (101)
------------------ --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 July 2016 4,087 9,473 (12,194) 972 17,741 317 438 20,834
------------------ --------- -------- --------- ----------- -------------- ----------- --------- ---------
Year ended Share Capital Capital Special Capital
31 January 2017 Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 January
2016 4,109 9,473 (11,296) 821 17,842 295 526 21,770
Net return - - 856 (367) - - 208 697
Dividends paid - - (1,454) - - - (287) (1,741)
Repurchase and
cancellation
of shares (51) - - - (224) 51 - (224)
------------------ --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 January
2017 4,058 9,473 (11,894) 454 17,618 346 447 20,502
------------------ --------- -------- --------- ----------- -------------- ----------- --------- ---------
The accompanying Notes are an integral part of the Financial
Statements.
Balance Sheet
As at 31 July 2017
31 July 2017 31 July 2016 31 January
(unaudited) (unaudited) 2017
GBP'000 GBP'000 (audited)
GBP'000
----------------------------- ------------ ------------ ----------
Fixed assets
Investments at fair
value through profit
or loss 16,270 20,080 17,111
Current assets
Debtors 248 220 273
Cash 2,623 577 3,334
----------------------------- ------------ ------------ ----------
2,871 797 3,607
Creditors
Amounts falling due
within one year (17) (43) (216)
----------------------------- ------------ ------------ ----------
Net current assets 2,854 754 3,391
----------------------------- ------------ ------------ ----------
Net assets 19,124 20,834 20,502
----------------------------- ------------ ------------ ----------
Capital and reserves
Called up share capital 4,058 4,087 4,058
Share premium account 9,473 9,473 9,473
Capital reserve - realised (12,894) (12,194) (11,894)
Capital reserve - unrealised 14 972 454
Special distributable
reserve 17,618 17,741 17,618
Capital redemption reserve 346 317 346
Revenue reserve 509 438 447
----------------------------- ------------ ------------ ----------
Net assets attributable
to Equity Shareholders 19,124 20,834 20,502
----------------------------- ------------ ------------ ----------
Net asset value per
Ordinary Share (pence) 47.12 50.97 50.52
----------------------------- ------------ ------------ ----------
The Financial Statements of Maven Income and Growth VCT 2 PLC,
registered number 4135802, were approved and authorised for issue
by the Board of Directors on 29 September 2017 and were signed on
its behalf by:
John Lawrence MBE
Director
The accompanying Notes are an integral part of the Financial
Statements.
Cash Flow Statement
For the Six Months Ended 31 July 2017
Six months Six months Year ended
ended ended
31 July 2017 31 July 2016 31 January
(unaudited) (unaudited) 2017
GBP'000 GBP'000 (audited)
GBP'000
---------------------------- ------------- ------------- -----------
Net cash flows from
operating activities (569) (1,098) (1,516)
Cash flows from investing
activities
Investment income
received 268 276 621
Deposit interest received 4 1 4
Purchase of investments (922) (3,625) (5,492)
Sale of investments 1,421 5,360 10,994
---------------------------- ------------- ------------- -----------
Net cash flows from
investing activities 771 2,012 6,127
---------------------------- ------------- ------------- -----------
Cash flows from financing
activities
Equity dividends paid (913) (924) (1,741)
Repurchase of Ordinary
Shares - (101) (224)
---------------------------- ------------- ------------- -----------
Net cash flows from
financing activities (913) (1,025) (1,965)
---------------------------- ------------- ------------- -----------
Net (decrease)/increase
in cash (711) (111) 2,646
---------------------------- ------------- ------------- -----------
Cash at beginning
of period 3,334 688 688
Cash at end of period 2,623 577 3,334
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 31 July 2017
and the six months ended 31 July 2016 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 January 2017, which
have been filed at Companies House 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. Returns per Ordinary Share Six months ended
31 July 2017
-------------------------------------- ------------------
The returns per share have been based
on the following figures:
Weighted average number of Ordinary
Shares 40,584,617
Revenue return GBP143,000
Capital return (GBP608,000)
-------------------------------------- ------------------
Total return (GBP465,000)
-------------------------------------- ------------------
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
-- the Financial Statements for the six months ended 31 July
2017 have been prepared in accordance with FRS 102, the Financial
Reporting Standard applicable in the UK and the 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 January 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
The NAV per Ordinary Share has been calculated using the number
of Ordinary Shares in issue at 31 July 2017 of 40,584,617.
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 the Manager, Maven Capital Partners UK LLP, 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/migvct2.
Neither the content of the Company's website nor the contents of
any website accessible from hyperlinks on the Company's website (or
any other website) is incorporated into, or forms part of, this
announcement.
By order of the Board
Maven Capital Partners UK LLP
Secretary
29 September 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZVLFLDKFBBBB
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