TIDMMAV4 TIDMTTM
RNS Number : 4128K
Maven Income & Growth VCT 4 PLC
21 April 2020
Maven Income and Growth VCT 4 PLC
Final results for the year ended 31 December 2019
Highlights for the year
-- NAV total return at the year end of 146.51p per share (2018: 145.37p)
-- NAV at the year end of 70.91p per share (2018: 71.77p), after
payment of the interim dividend of 2.00p per share
-- Final dividend of 2.00p per share proposed
-- Merger with Maven Income and Growth VCT 6 PLC (Maven VCT 6) completed on 18 December 2019
-- Net assets increased to GBP73.1 million at year end
-- Deployment of over GBP6.0 million, including 17 new private and AIM quoted investments
-- Three profitable realisations achieved during the year, with
a further exit completed after the year end
-- Offer for Subscription closed, fully subscribed, raising a further GBP7.5 million
-- Post the period end, NAV of 64.51p per share as at 20 March 2020 announced
Chairman's Statement
On behalf of your Board, I am pleased to present the Annual
Report for the first time as Chairman. During the period under
review, your Company achieved further growth with NAV total return
increasing to 146.51p per share. However, since the end of the
financial year, the global economy and financial markets have been
impacted by the coronavirus (COVID-19) pandemic. As a result, on 26
March 2020 the Directors took the necessary step of announcing a
reduced NAV of 64.51p per share as at 20 March 2020, as well as
confirming the suspension of the Dividend Investment Scheme (DIS)
and the deferral of the final allotment under the Offer for
Subscription, in respect of the 2020/21 tax year. Further details
on these developments are provided below and throughout the Annual
Report.
On 18 December 2019, following Shareholder approval, the
Directors announced the completion of the merger with Maven VCT 6,
which substantially increased the size and scale of your Company.
This was further enhanced by the announcement on 6 February 2020
that the recent Offer for Subscription had closed early, fully
subscribed. This additional capital will enable your Company to
continue to expand its portfolio of investee companies, building on
the good level of investment activity that was achieved during the
reporting period, with the deployment of over GBP6.0 million across
a wide range of new private company and AIM quoted investments.
During the period, three exits were completed, including the first
realisation from the early stage portfolio. In light of this
positive performance, and in recognition of the commitment to
maintain regular income payments whenever possible, the Directors
are pleased to propose a final dividend of 2.00p per share, making
the total dividend for the year 4.00p per share.
This has been another year of important strategic growth and
development for your Company, with the completion of the merger
with Maven VCT 6. Given the commonality of holdings across the two
portfolios, the merger process has been straightforward, with the
combined portfolio providing a strong foundation for future growth.
Further to this expansion, Shareholders are well positioned to
benefit from the enlarged scale of the Company, including a
reduction in the total expense ratio.
Following the success of the GBP20 million fundraising, which
closed in April 2018, a key priority for the financial year was to
achieve the required rate of investment, to ensure effective
utilisation of the new capital in line with the regulatory
timeframe for deployment. It is therefore encouraging to report
that, during the period, your Company invested over GBP6.0 million
in a range of attractive, growth focused private and AIM quoted
companies that have the potential to improve Shareholder returns as
they grow in value and mature. The Board is supportive of Maven's
selective approach to investment, which ensures that only the most
compelling propositions are progressed.
In order to support your Company's continued growth, a top-up
Offer for Subscription was launched on 13 November 2019 with the
objective of raising up to GBP7.5 million of new capital. The
Directors were pleased to announce on 6 February 2020 that the
Offer had closed early, fully subscribed, with the allotment of
9,719,959 Ordinary Shares in respect of the 2019/20 tax year taking
place on 11 February 2020. A further allotment, in respect of the
2020/21 tax year is expected to take place after 30 April 2020.
This additional liquidity will enable your Company to further
expand its portfolio through the acquisition of new investments
across a wide range of sectors, whilst also supporting existing
companies that are growing and require additional capital to
progress their business plan. As the portfolio evolves, and the
proportion of early stage companies increases, the ability to
provide follow-on funding will become an important element of the
investment strategy, as many of these new companies will require
several rounds of funding before they reach maturity and their
value is optimised. The Manager has, therefore, taken the cautious
approach of making smaller initial investments, where possible,
often as part of a syndicate with another VCT house or
co-investment partner, as a means of managing risk. The Board
recognises that, whilst earlier stage companies can offer the
opportunity to generate significant capital gains, this has to be
balanced against their inherently different risk profile. Investing
through a phased approach provides the opportunity to monitor
commercial progress closely and continually assess the merits of
investment before committing further financial support.
Whilst political and economic uncertainty continued to dominate
the UK's macro-economic outlook throughout the financial year, it
is reassuring to report that the portfolio has not been discernibly
impacted to date by the departure of the UK from the EU on 31
January 2020. The majority of the underlying investee companies
have limited direct exposure to the EU, and those that do have been
implementing contingency plans to mitigate any potential impact.
The Investment Manager's Review in the Annual Report contains a
detailed analysis of portfolio developments and a summary of the
investments completed during the year.
Notwithstanding the impact of the COVID-19 pandemic, covered in
more detail below, the continuing positive performance achieved by
a number of the more established private companies during the year
has enabled the valuations of certain assets to be increased. Those
companies that are at an earlier stage of development have
generally performed in line with expectations, with most achieving
growth in revenue over the previous year, which has, in a small
number of cases, warranted uplifts to valuations. Aside from the
specific provisions that were taken by your Board in response to
the outbreak of COVID-19, as reflected in the NAV announcement of
26 March 2020, there were also a small number of investee companies
that had been operating behind plan or had experienced a market
adjustment that had influenced performance and, as a result, the
valuations of these assets were reduced. In addition, full
provisions were taken against the holdings in two early stage
portfolio companies that were unable to scale in line with the
business plan, with one subsequently being placed into
administration.
Three notable exits completed during the period. In June 2019,
the holdings in Just Trays, the UK's leading designer and
manufacturer of shower trays and accessories, and wind turbine
blade maintenance specialist GEV were realised for total returns of
2.0 times and 2.7 times cost over their respective holding periods.
In December 2019, your Company completed its first exit from the
portfolio of earlier stage assets with the realisation of fibre
network provider ITS Technology for a total return of 1.0 times
cost over the investment period. Whilst the Board is aware that
discussions are underway regarding potential exits from other
portfolio companies, in light of the COVID-19 outbreak, it is
likely that a number of these sale processes will be put on hold
until there is a higher degree of economic stability.
COVID-19
At the time of publication of the Annual Report, the coronavirus
(COVID-19) pandemic has resulted in unprecedented disruption to
personal and business life for almost everyone, and there remains
considerable uncertainty over when the social distancing measures
will be relaxed. Maven has provided advice to its staff on how to
minimise the risk of exposure to the virus and has a business
continuity plan in place.
Contingency planning is also a matter for each portfolio company
to consider and Maven appointed executives are playing an active
role in the evaluation and implementation of any measures required
to protect the health of employees, and to minimise business
disruption. That support includes guidance around accessing
Government initiatives such as the Coronavirus Job Retention Scheme
or the Coronavirus Business Interruption Loan Scheme (CBILS).
However, it is important to note that 52% of your portfolio is
invested in young, dynamic growth companies with flexible cost
bases, many of which are operating in the software and technology
sectors, which may be less affected by the current economic
conditions.
The Board and the Manager remain in regular contact regarding
this evolving situation and will continue to provide updates to
Shareholders as appropriate. Further information is provided in the
Investment Manager's Review and Note 17 to the Financial Statements
in the Annual Report.
Dividends and Distributable Reserves
As Shareholders will be aware from recent Interim and Annual
Reports, decisions on distributions take into consideration the
availability of surplus revenue, the realisation of capital gains,
the adequacy of distributable reserves and the VCT qualifying
level, all of which are kept under close and regular review by the
Board and the Manager. During 2017 and 2018, your Company made a
number of enhanced dividend payments, which occurred outwith the
normal dividend payment cycle and were the result of a build-up of
distributable reserves and the requirement to maintain ongoing
compliance with the VCT regulations.
Whilst your Company does not have a specific dividend target,
the Board and the Manager recognise the importance of tax-free
distributions to Shareholders and, following recent exit activity,
are pleased to propose a final dividend of 2.00p per Ordinary
Share, in respect of the year ended 31 December 2019. The final
dividend will be paid on 22 May 2020 to Shareholders on the
register at 24 April 2020. This will bring total distributions for
the year to 4.00p per Ordinary Share, representing a yield of 6.06%
based on the year end closing mid-market share price of 66.00p.
Since the Company's launch, and after receipt of the proposed final
dividend, Shareholders will have received 77.60p per share in
tax-free distributions. It should be noted that the effect of
paying dividends is to reduce the NAV of the Company by the total
cost of the distribution.
At the Company's 2019 AGM, Shareholders approved a Special
Resolution to cancel the share premium account and the capital
redemption reserve, pursuant to the Companies Act 2006, to create a
further pool of distributable reserves that could be used for
future dividends or any other applicable purpose. On 21 August
2019, the Company announced that the High Court of Justice and
Court of Session in Scotland had confirmed the cancellation of the
share premium account and the capital redemption reserve.
Whilst the level of distributable reserves has increased, the
Directors would like to remind Shareholders that as the portfolio
evolves and a greater proportion of holdings are in young companies
with growth capital requirements, there will continue to be
fluctuations in the quantum and timing of dividend payments.
Distributions will be more closely linked to realisation activity
and will also reflect the Company's requirement to maintain its VCT
qualifying level. If larger distributions are required, as a
consequence of exits, this could result in a reduction in NAV per
share. However, the Board considers this to be a tax efficient
means of returning value to Shareholders whilst ensuring ongoing
compliance with the requirements of the VCT legislation.
Suspension of the Dividend Investment Scheme (DIS)
On 26 March 2020, the Board announced that, in light of the
volatility in financial markets caused by the COVID-19 pandemic, it
had deemed it appropriate to suspend the DIS with immediate effect.
As a result, the proposed final dividend of 2.00p per share for the
financial year to 31 December 2019, and all subsequent dividends
until further notice, will be paid to Shareholders either by cheque
or bank transfer using existing mandate instructions. Written
confirmation of the suspension in the operation of the DIS will be
issued to those Shareholders who had elected to participate. If a
Shareholder has a specific query with respect to the DIS
suspension, they should contact The Company Secretary, Maven Income
and Growth VCT PLC, c/o Maven Capital Partners UK LLP, First Floor,
Kintyre House, 205 West George Street, Glasgow G2 2LW or email:
CoSec@mavencp.com.
Fund Raising
On 13 November 2019, the Directors of your Company, together
with the board of Maven Income and Growth VCT 3 PLC, launched joint
Offers for Subscription of new Ordinary Shares for up to GBP15
million in aggregate (GBP7.5 million for each company).
On 6 February 2020, the Directors confirmed that the Offer for
Subscription had closed early, fully subscribed, raising GBP7.5
million. An allotment of 9,719,959 new Ordinary Shares, in respect
of the 2019/20 tax year, was made on 11 February 2020. On 26 March
2020, the Board announced that, having considered the possible
impact of the COVID-19 pandemic on the trading performance of some
of the underlying portfolio companies, it intended to delay the
allotment date for the 2020/21 tax year to no earlier than 30 April
2020. This will allow the Board and the Manager time to review the
portfolio to ensure that the issue price reflects the valuation of
the underlying portfolio.
This additional liquidity will enable your Company to continue
to expand the portfolio by investing in ambitious, growth focused
private and AIM quoted companies that operate across a range of
market sectors and are capable of generating capital gains. It will
also ensure that existing portfolio companies can continue to be
supported through follow-on funding where there is an ongoing
business case and commercial traction that merits support.
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 further reducing the total
expense ratio for the benefit of all Shareholders.
Further details regarding the new Ordinary Shares issued under
the Offer for Subscription can be found in Note 12 to the Financial
Statements.
Merger
On 18 December 2019, following the passing of resolutions at a
series of general meetings of both companies, the Directors were
pleased to announce the completion of the merger of the Company
with Maven VCT 6. On completion, the assets and liabilities of
Maven VCT 6 were transferred to your Company in consideration for
the issue of 27,578,970 new Ordinary Shares in your Company to the
former shareholders of Maven VCT 6, based on a ratio of 0.687632
new shares for each Maven VCT 6 share held and at a deemed issue
price of 70.60p per new share. Following the merger, the net assets
of your Company increased to GBP73.1 million and the new shares
were admitted to the Official List on 19 December 2019. Maven VCT 6
was placed in members' voluntary liquidation, with the listing of
its ordinary shares cancelled with effect from 19 December
2019.
The impact of the merger can be seen in the Financial Statements
and related Notes, and is reflected in the Financial Highlights in
the Annual Report.
Share Buy-backs
Shareholders will be aware that a primary objective for the
Board is to ensure that the Company retains sufficient liquidity to
make 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 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. The Board remains of the view that,
despite the market volatility in relation to COVID-19, it is
appropriate to continue to operate the buy-back policy as this is
an important mechanism for ensuring an orderly market in the
Company's shares.
It is intended that, subject to market conditions, available
liquidity and the maintenance of the Company's VCT status, shares
will be bought back at prices representing a discount of up to 15%
of the prevailing NAV per share.
Regulatory Developments
Whilst the 2019 Budget did not introduce further amendments to
the rules governing VCTs, a key focus for the financial year has
been satisfying the requirements of the Finance Act 2018, which
increased the threshold level of qualifying investments that a VCT
must hold from 70% to 80%. The Directors are pleased to confirm
that this was achieved ahead of 1 January 2020, being the date of
compliance for your Company. The qualifying position will continue
to be closely monitored by the Manager and reviewed by the Board on
a regular basis.
In February 2019, the Association of Investment Companies (AIC)
issued an updated version of the AIC Code of Corporate Governance
(the AIC Code), reflecting the revised UK Corporate Governance Code
(the UK Code), which was published in July 2018. Having considered
the implications and reporting obligations under the revised Codes,
and consistent with maintaining high standards of corporate
governance, the Board has elected to adopt the AIC Code.
Shareholders will note the inclusion of a number of additional
disclosures in the Annual Report, reflecting application of the AIC
Code, and the notable changes to the revised AIC Code are
highlighted in the Statement of Corporate Governance in the Annual
Report.
During the year, the Manager has been working towards the
implementation of the Senior Managers and Certification Regime
(SMCR) which, for solo regulated firms such as Maven, came into
effect on 9 December 2019. SMCR replaces the FCA's approved persons
regime and seeks to increase transparency and accountability of
processes and structures within FCA regulated entities, including
Maven. The Board is pleased to note that all necessary requirements
of the SMCR were achieved by Maven ahead of the implementation
date.
Board of Directors
On behalf of the Board, I am pleased to welcome Fraser Gray as a
Non-executive Director with effect from 18 December 2019. Fraser
was a non-executive director of Maven VCT 6 prior to the merger and
is a Chartered Accountant with extensive experience of working with
both private and AIM quoted companies; further details can be found
in the Your Board section of the Annual Report and in the
Directors' Report. As required under the Company's Articles, Fraser
will stand for election by Shareholders at the AGM to be held on 14
May 2020, being the first general meeting following his
appointment.
AGM
In previous years, the Company has normally held its AGM at the
London office of Maven but, in the current circumstances and based
on the latest available advice on social distancing, the Board has
resolved that the venue of this year's AGM should be moved to
Glasgow. Therefore, the 2020 AGM will be held in the Glasgow office
of Maven Capital Partners UK LLP on Thursday 21 May 2020 commencing
at 12.00 noon. The Notice of Annual General Meeting can be found in
the Annual Report.
In respect of the ongoing COVID-19 situation, which the Board is
monitoring closely, the Directors of the Company consider the
well-being of its Shareholders and other AGM attendees as a high
priority. The Directors are aware that the AGM is a good
opportunity for Shareholders to meet the Board and the Manager.
However, in light of the Government advice against all
non-essential travel and maintaining social distancing,
Shareholders will not be allowed to attend the AGM in person and
instead should vote using the Proxy Form, which can be submitted to
the Company. Proxy Forms should be completed and returned in
accordance with the instructions thereon and the latest time for
the receipt of Proxy Forms is 12.00 noon on Tuesday 19 May 2020.
Proxy votes can be also be submitted by CREST or online using the
Registrar's Share Portal Service at www.signalshares.com. The Board
would also encourage Shareholders to submit any questions for the
Board and Manager by email or by letter in advance of the AGM. A
summary of responses will be published after the AGM on the
Company's website at: www.mavencp.com/migvct. Shareholders wishing
to submit a question should write to: The Company Secretary, Maven
Income and Growth VCT PLC, c/o Maven Capital Partners UK LLP, First
Floor, Kintyre House, 205 West George Street, Glasgow G2 2LW or
email to: CoSec@mavencp.com.
The Future
Over the past two years, your Company has experienced meaningful
growth through two significant fundraisings and two mergers, which
have increased absolute net asset value from GBP32 million in
December 2017 to GBP73.1 million at the year end. There will now be
a period of consolidation where the primary objective will be to
expand the portfolio further, through selective additions of new
private and AIM quoted companies. Your Company has good levels of
liquidity to support this strategy and the medium-term objective
remains committed to building a diversified portfolio to help
mitigate the risks associated with early stage investment. While
there are obvious challenges to be faced as a result of the
COVID-19 pandemic, the Board believes that Maven remains well
placed to deliver this objective for Shareholders and anticipates a
good rate of investment through the first half of the new financial
year.
Peter Linthwaite
Chairman
21 April 2020
Business Report
This Business Report is intended to provide an overview of the
strategy and business model of the Company, as well as the key
measures used by the Directors in overseeing its management. The
Company is a venture capital trust and invests in accordance with
the investment objective set out below.
Investment Objective
Under an investment policy approved by the Directors, the
Company aims to achieve long-term capital appreciation and generate
income for Shareholders.
Business Model and Investment Policy
The Company intends to achieve its objective by:
-- investing the majority of its funds in a diversified
portfolio of shares and securities in smaller, unquoted UK
companies and AIM/NEX quoted companies that meet the criteria for
VCT qualifying investments and have strong growth potential;
-- investing no more than GBP1.25 million in any company in one
year and no more than 15% of the Company's assets by cost in one
business at any time; and
-- borrowing up to 15% of net asset value, if required and only
on a selective basis, in pursuit of its investment strategy.
Principal Risks and Uncertainties
The Board and the Risk Committee have an ongoing process for
identifying, evaluating and monitoring the principal and emerging
risks and uncertainties facing the Company. The risk register and
dashboard form key parts of the Company's risk management framework
used to carry out a robust assessment of the risks, including a
significant focus on the controls in place to mitigate them. The
principal and emerging risks and uncertainties facing the Company
are as follows:
Investment Risk
The majority of the Company's investments are in small and
medium sized unquoted UK companies and AIM/NEX quoted companies
which, by their nature, carry a higher level of risk and lower
liquidity than investments in large quoted companies. The Board
aims to limit the risk attached to the investment portfolio as a
whole by ensuring that a robust and structured selection,
monitoring and realisation process is applied by Maven. The Board
reviews the investment portfolio with the Manager on a regular
basis.
The Company manages and minimises investment risk by:
-- diversifying across a large number of companies;
-- diversifying across a range of economic sectors;
-- actively and closely monitoring the progress of investee companies;
-- co-investing with other clients of Maven and also other VCT managers;
-- ensuring valuations of underlying investments are made fairly
and reasonably (see Notes to the Financial Statements 1(e), 1(f)
and 16 for further details);
-- taking steps to ensure that the share price discount is managed appropriately; and
-- choosing and appointing an FCA authorised investment manager
with the skills, experience and resources required to achieve the
investment objective, with ongoing monitoring to ensure the Manager
is performing in line with expectations.
Internal Control Risk
The Board reviews regularly the system of internal controls,
both financial and non-financial, operated by the Company, Maven
and other key third party outsourcers such as the Custodian and
Registrar. These include controls designed to ensure that the
Company's assets are safeguarded, that all records are complete and
accurate and that the third parties have adequate controls in place
to prevent data protection and cyber security failings.
VCT Qualifying Status Risk
The Company operates in a complex regulatory environment and
faces a number of related risks, including:
-- becoming subject to capital gains tax on the sale of its
investments as a result of a breach of Section 274 of the Income
Tax Act 2007;
-- loss of VCT status and consequent loss of tax reliefs
available to Shareholders as a result of a breach of the VCT
Regulations;
-- loss of VCT status and reputational damage as a result of a
serious breach of other regulations such as the FCA Listing Rules
and the Companies Act 2006; and
-- increased investment restrictions resulting from EU State Aid
Rules, incorporated by the Finance (No. 2) Act 2015 and the Finance
Act 2018.
The Board works closely with the Manager to ensure compliance
with all applicable and upcoming legislation, such that VCT
qualifying status is maintained. Further information on the
management of this risk is detailed under other headings in this
Business Report.
Legislative and Regulatory Risk
The Directors strive to maintain a good understanding of the
changing regulatory agenda and consider emerging issues so that
appropriate changes can be implemented and developed in good time.
In order to maintain its approval as a VCT, the Company is required
to comply with current VCT legislation in the UK as well as the EU
State Aid Rules. Changes to either legislation could have an
adverse impact on Shareholder investment returns, whilst
maintaining the Company's VCT status. The Board and the Manager
continue to make representations where appropriate, either directly
or through relevant industry bodies such as the AIC and the British
Venture Capital Association (BVCA).
The Company has retained Philip Hare & Associates LLP as its
principal VCT adviser and also uses the services of a number of
other VCT advisers on a transactional basis.
Breaches of other regulations including, but not limited to, the
Companies Act, the FCA Listing Rules, the FCA Disclosure Guidance
and Transparency Rules, the GDPR, or the Alternative Investment
Fund Managers Directive (the AIFMD), could lead to a number of
detrimental outcomes and reputational damage. Breaches of controls
by service providers to the Company could also lead to reputational
loss or damage.
The AIFMD, which regulates the management of alternative
investment funds, including VCTs, introduced an authorisation and
supervisory regime for all investment companies in the EU. The
Company is a small registered, internally managed alternative
investment fund under the AIFMD. The Company is also required to
comply with tax legislation under the Foreign Account Tax
Compliance Act and the Common Reporting Standard. The Company has
appointed Link Market Services to act on its behalf to report
annually to HMRC and ensure compliance with this legislation.
Political Risk
The full political, economic and legal consequences of the UK
leaving the EU are not yet known. It is possible that investments
in the UK may be more difficult to value and assess for suitability
of risk, harder to buy or sell, and may be subject to greater or
more frequent rises and falls in value. In the longer term, there
is likely to be a period of uncertainty as the UK seeks to
negotiate its ongoing relationship with the EU and other global
trade partners.
In the future, UK laws and regulations, including those relating
to investment companies and AIFMs, may diverge from those of the
EU. This may lead to changes in the operation of the Company, the
rights of investors, or the list of territories in which the shares
of the Company can be promoted or sold.
The Board reviews the political situation regularly, together
with any associated changes to the economic, regulatory and
legislative environment, in order to ensure that any risks are
mitigated as effectively as possible.
Climate Change and Social Responsibility Risk
The Board recognises that climate change is an important
emerging risk that all companies should take into consideration
within their strategic planning. As referred to elsewhere in this
Strategic Report and in the Statement of Corporate Governance, the
Company has little direct impact on environmental issues. However,
the Company has introduced measures to reduce the cost and
environmental impact of the production and circulation of
Shareholder documentation such as the annual and interim reports.
This has resulted in a significant reduction in the number of
copies being printed and posted, with fewer than 15% of
Shareholders now receiving paper reports.
The Board is also aware that the Manager continues to take into
account environmental, social and governance matters when
considering investment proposals. VCTs in general are regarded as
supporting small and medium sized enterprises, investment in which
helps to create local employment across a range of UK geographical
regions.
Other Key Risks
Governance Risk
The Directors are aware that an ineffective Board could have a
negative impact on the Company and its Shareholders. The Board
recognises the importance of effective leadership and board
composition and this is ensured by completing an annual evaluation
process, with action taken if required.
Management Risk
The Directors are aware of the risk that investment
opportunities could fail to complete, or the management of the VCT
could breach the Management and Administration Deed or regulatory
parameters, due to lack of knowledge and/or experience of the
investment professionals acting on behalf of the Company. To manage
this risk, the Board has appointed Maven as investment manager, as
it employs skilled professionals with the required VCT knowledge
and experience. In addition, the Board takes comfort that the
Manager's controls have been updated to ensure compliance with the
SMCR.
The Directors are also mindful of the impact that the loss of
the Manager's key employees could have on both investment
opportunities that may be lost or existing investments that may
fail. The Board is reassured by the Manager's approach to
incentivising staff and ensuring that adequate notice periods are
included in all contracts of employment.
Financial and Liquidity Risk
As most of the investments require a medium to long-term
commitment and are relatively illiquid, the Company retains a
portion of the portfolio in cash and listed investment trusts in
order to finance any new or follow-on investment opportunities. The
Company has only limited direct exposure to currency risk and does
not enter into any derivative transactions.
Economic Risk
The valuation of investment companies may be affected by
underlying economic conditions such as fluctuating interest rates
and the availability of bank finance, which can be impacted during
times of geopolitical uncertainty and fluctuating markets. The
economic and market environment is kept under constant review and
the investment strategy of the Company adapted, so far as is
possible, to mitigate emerging risks.
Credit Risk
The Company may hold financial instruments and cash deposits and
is dependent on counterparties discharging their agreed
responsibilities. The Directors consider the creditworthiness of
the counterparties to such instruments and seek to ensure that
there is no undue concentration of exposure to any one party.
An explanation of certain economic and financial risks and how
they are managed is contained in Note 16 to the Financial
Statements.
Other Emerging Risks
The Directors are cognisant of the potential impact of the
coronavirus (COVID-19) outbreak and its implications for the
activities of the Manager and on the performance of investee
companies. This is covered in more detail in the Chairman's
Statement Investment Manager's Review and Note 17 to the Financial
Statements in the Annual Report.
Statement of Compliance with Investment Policy
The Company is adhering to its stated investment policy and
managing the risks arising from it. This can be seen in various
tables and charts throughout the Annual Report, and from
information provided in the Chairman's Statement and in the
Investment Manager's Review. A review of the Company's business,
its financial position as at 31 December 2019 and its performance
during the year then ended is included in the Chairman's Statement,
which also includes an overview of the Company's business model and
strategy.
The management of the investment portfolio has been delegated to
Maven, which also provides company secretarial, administrative and
financial management services to the Company. The Board is
satisfied with the depth and breadth of the Manager's resources and
its nationwide network of offices, which supply new deals and
enable it to monitor the geographically widespread portfolio of
companies effectively.
The Investment Portfolio Summary in the Annual Report discloses
the investments in the portfolio and the degree of co-investment
with other clients of the Manager. The tabular analysis of the
unlisted and quoted portfolio shows that the portfolio is
diversified across a variety of industry sectors and transaction
types. The level of VCT qualifying investments is monitored
continually by the Manager and reported to the Risk Committee
quarterly, or as otherwise required.
Key Performance Indicators (KPIs)
During the year, the net return on ordinary activities before
taxation was GBP1,175,000 (2018: GBP361,000); gains on investments
were GBP1,497,000 (2018: GBP1,082,000) and earnings per share were
1.53p (2018: 0.66p).The Directors also use a number of APMs in
order to assess the Company's success in achieving its objectives
and also enable Shareholders and prospective investors to gain an
understanding of its business. These APMs are shown in the
Financial Highlights in the Annual Report.
In addition, the Board considers the following to be KPIs:
-- NAV total return;
-- annual yield;
-- share price discount to NAV;
-- investment income; and
-- operational expenses.
The NAV total return is considered to be a more appropriate
long-term measure of Shareholder value as it includes the current
NAV per share and the sum of dividends paid to date. The annual
yield is the total of dividends paid per share for the financial
year, expressed as a percentage of the share price at the year-end
date. The Directors seek to pay dividends to provide a yield and
comply with the VCT rules, taking account of the level of
distributable reserves, profitable realisations in each accounting
period and the Company's future cash flow projections. The share
price discount to NAV is the percentage by which the mid-market
price of a share is lower than its NAV per share.
Definitions of these APMs can be found in the Glossary in the
Annual Report. A historical record of some of these measures is
shown in the Financial Highlights in the Annual Report and the
change in the profile of the portfolio is reflected in the Summary
of Investment Changes in the Annual Report. The Board reviews the
Company's investment income and operational expenses on a quarterly
basis, as the Directors consider that both of these elements are
important components in the generation of Shareholder returns.
Further information can be found in Notes 2 and 4 to the Financial
Statements in the Annual Report.
There is no VCT index against which to compare the financial
performance of the Company. However, for reporting to the Board and
Shareholders, the Manager uses comparisons with the most
appropriate index, being the FTSE AIM All-Share Index. The
Directors also consider non-financial performance measures, such as
the flow of investment proposals, and ranking of the VCT sector by
independent analysts. In addition, the Directors will consider
economic, regulatory and political trends and factors that may
impact on the Company's future development and performance.
Valuation Process
Investments held by the Company in unquoted companies are valued
in accordance with the International Private Equity and Venture
Capital Valuation Guidelines. Investments quoted or traded on a
recognised stock exchange, including AIM, are valued at their bid
prices.
Share Buy-backs
At the forthcoming AGM, the Board will seek the necessary
Shareholder authority to continue to conduct a share buy-back
programme under appropriate circumstances.
The Board's Duty and Stakeholder Engagement
The Directors recognise the importance of an effective Board and
its ability to discuss, review and make decisions to promote the
long-term success of the Company and protect the interests of its
key stakeholders. As required by provision 5 of the AIC Code (and
in line with the UK Code), the Board has discussed the Directors'
duty under Section 172 of the Companies Act and how the interests
of key stakeholders have been considered in the Board discussions
and decision making during the year. This has been summarised in
the table below:
Shareholders Form of Engagement Influence on Board / Committee decision
making
Annual General Meeting Dividend Declarations - the Board recognises
- Shareholders are normally the importance of tax-free dividends
encouraged to attend to Shareholders and takes this into
the AGM and are provided consideration when making decisions
with the opportunity to pay interim and propose final dividends
to ask questions and for each year. Further details regarding
engage with the Directors dividends for the year under review
and the Manager. Shareholders can be found in the Chairman's Statement
are also encouraged to in the Annual Report.
exercise their right Share Buy-back Policy - the Directors
to vote on the resolutions recognise the importance to Shareholders
proposed at the AGM. of the Company maintaining an active
However, please refer buy-back programme and considered this
to the guidance in the when establishing the current policy.
Chairman's Statement Further details can be found in the
in the Annual Report. Chairman's Statement and the Directors'
Shareholder Documents Report in the Annual Report.
- the Company reports Offer for Subscription - in making
formally to Shareholders a decision to launch any Offer for
by publishing Annual Subscription, the Directors have to
and Interim Reports, consider that it would be in the interest
normally in April and of Shareholders to continue to grow
September each year. the portfolio and make investments
In the instance of a across a diverse range of sectors.
corporate action taking By growing the Company, costs are spread
place, the Board will over a wider asset base, which helps
communicate with Shareholders to promote a competitive total expense
through the issue of ratio, which is in the interests of
a Circular and, if required, Shareholders. In addition, the increased
a Prospectus. liquidity helps support the buy- back
In addition, significant policy referred to above. Further details
matters or reporting regarding the latest Offer for Subscription
obligations are disseminated can be found in the Chairman's Statement
to Shareholders by way in the Annual Report.
of announcements to the Liquidity Management - as a result
London Stock Exchange. of the success of the recent Offers
The Company Secretary for Subscription, the Company has a
acts as a key point of strong liquidity position and the Board
contact for the Board is conscious that it will take time
and communications received for the Manager to deploy the funds
from Shareholders are raised. In order to generate income
circulated to the whole and add value for Shareholders, the
Board. Board has an active liquidity management
policy, which has the objective of
generating income from the cash held
prior to investment. Further details
regarding the liquidity management
policy can be found in the Investment
Manager's Report in the Annual Report.
------------------------------- ------------------------------------------------
Portfolio Companies Quarterly Board Meetings Quarterly Board Meetings - the Manager
- the Manager reports reports to the Board on the portfolio
to the Board on the portfolio companies and the Directors challenge
companies and the Directors the Manager where they feel it is appropriate.
challenge the Manager The Manager then communicates directly
where they feel it is with each portfolio company, normally
appropriate. The Manager through the Maven representative who
then communicates directly sits on the board of the portfolio
with each portfolio company, company.
normally through the The Board is also mindful that, as
Maven representative the portfolio expands and the proportion
who sits on the board of early stage investments increases,
of the portfolio company. follow-on funding will represent an
important part of the Company's investment
strategy and this forms a key part
of the Directors' discussions on valuations
and also risk management.
------------------------------- ------------------------------------------------
Manager Quarterly Board Meetings The Manager is responsible for implementing
- the Manager attends the investment objective and the strategy
every Board Meeting and agreed by the Board. In making a decision
presents a detailed portfolio to launch any Offer for Subscription,
analysis and reports the Board needs to consider that the
on key issues such as Company requires sufficient liquidity
VCT compliance, investment in order to continue to expand and
pipeline and utilisation broaden the investment portfolio in
of any new monies raised. line with the strategy, including the
provision of follow-on funding.
------------------------------- ------------------------------------------------
Registrar Annual review meetings The Directors review the performance
and control reports. of all third party service providers
on an annual basis, including ensuring
compliance with GDPR.
------------------------------- ------------------------------------------------
Custodian Regular statements and The Directors review the performance
control reports received, of all third party providers on an
with all holdings and annual basis, including oversight of
balances reconciled. securing the Company's assets.
------------------------------- ------------------------------------------------
Employee, Environmental and Human Rights Policy
As a VCT, the Company has no direct employee or environmental
responsibilities, nor is it responsible directly for the emission
of greenhouse gases. The Board's principal responsibility to
Shareholders is to ensure that the investment portfolio is managed
and invested properly. As the Company has no employees, it has no
requirement to report separately on employment matters. The
management of the portfolio is undertaken by the Manager through
members of its portfolio management team. The Manager engages with
the Company's underlying investee companies in relation to their
corporate governance practices and in developing their policies on
social, community and environmental matters. Further information
may be found in the Statement of Corporate Governance. In light of
the nature of the Company's business, there are no relevant human
rights issues and, therefore, the Company does not have a human
rights policy.
Independent Auditor
The Company's Independent Auditor is required to report if there
are any material inconsistencies between the content of the
Strategic Report and the Financial Statements. The Independent
Auditor's Report can be found in the Annual Report.
Future Strategy
The Board and the Manager intend to maintain the policies set
out above for the year ending 31 December 2020, as it is believed
that these are in the best interests of Shareholders.
Approval
The Business Report, and the Strategic Report as a whole, was
approved by the Board of Directors and signed on its behalf by:
Peter Linthwaite
Director
21 April 2020
Income Statement
For the Year Ended 31 December 2019
Year ended 31 December Year ended 31 December
2019 2018
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- -------- -------- -------- -------- -------- --------
Gains on investments - 1,497 1,497 - 1,082 1,082
Income from investments 1,509 - 1,509 697 - 697
Other income 81 - 81 29 - 29
Investment management fees (315) (1,260) (1,575) (205) (819) (1,024)
Other expenses (337) - (337) (423) - (423)
---------------------------------- -------- -------- -------- -------- -------- --------
Net return on ordinary activities 938 237 1,175 98 263 361
before taxation
Tax on ordinary activities (162) 162 - (12) 12 -
---------------------------------- -------- -------- -------- -------- -------- --------
Return attributable to Equity
Shareholders 776 399 1,175 86 275 361
---------------------------------- -------- -------- -------- -------- -------- --------
Earnings per share (pence) 1.01 0.52 1.53 0.16 0.50 0.66
---------------------------------- -------- -------- -------- -------- -------- --------
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 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 Year Ended 31 December 2019
Share Share Capital Capital Special Capital Revenue Total
capital premium reserve reserve distributable redemption reserve GBP'000
GBP'000 account realised unrealised reserve reserve GBP'000
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 December 2018 7,657 48,568 (9,020) (1,186) 7,675 472 788 54,954
Net return - - (1,281) 1,680 - - 776 1,175
Cancellation of share
premium account - (48,562) - - 48,562 - - -
Cancellation of
capital
redemption reserve - - - - 544 (544) - -
Share premium
cancellation - (9) - - - - - (9)
Dividends paid - - (1,517) - - - - (1,517)
Repurchase and
cancellation
of shares (123) - - - (786) 123 - (786)
Issue of shares on
merger 2,758 16,427 - - - - - 19,185
Net proceeds of DIS
issue 19 102 - - - - - 121
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 December 2019 10,311 16,526 (11,818) 494 55,995 51 1,564 73,123
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
Year Ended 31 December 2018
Share Capital Capital Special Capital
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 December 2017 3,708 22,745 (2,111) (1,825) 8,271 384 702 31,874
Net return - - (364) 639 - - 86 361
Dividends paid - - (6,545) - - - - (6,545)
Repurchase and
cancellation
of shares (88) - - - (596) 88 - (596)
Issue of shares on
merger 1,947 11,483 - - - - - 13,430
Net proceeds of share
issue 2,023 13,947 - - - - - 15,970
Net proceeds of DIS
issue 67 393 - - - - - 460
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
At 31 December 2018 7,657 48,568 (9,020) (1,186) 7,675 472 788 54,954
---------------------- --------- -------- --------- ----------- -------------- ----------- --------- ---------
The accompanying Notes are an integral part of the Financial
Statements.
Balance Sheet
As at 31 December 2019
31 December 2019 31 December 2018
GBP'000 GBP'000
------------------------------------ ---------------- ----------------
Fixed assets 54,188 33,912
Investments at fair value through
profit or loss 708 537
Current assets 18,402 20,553
Debtors
Cash
------------------------------------ ---------------- ----------------
19,110 21,090
Creditors
Amounts falling due within one
year (175) (48)
------------------------------------ ---------------- ----------------
Net current assets 18,935 21,042
------------------------------------ ---------------- ----------------
Net assets 73,123 54,954
------------------------------------ ---------------- ----------------
Capital and reserves
Called up share capital 10,311 7,657
Share premium account 16,526 48,568
Capital reserve - realised (11,818) (9,020)
Capital reserve - unrealised 494 (1,186)
Special distributable reserve 55,995 7,675
Capital redemption reserve 51 472
Revenue reserve 1,564 788
------------------------------------ ---------------- ----------------
Net assets attributable to Ordinary
Shareholders 73,123 54,954
------------------------------------ ---------------- ----------------
Net asset value per Ordinary Share
(pence) 70.91 71.77
------------------------------------ ---------------- ----------------
The Financial Statements of Maven Income and Growth VCT 4 PLC,
registered number SC272568, were approved by the Board of Directors
and were signed on its behalf by:
Peter Linthwaite
Director
21 April 2020
The accompanying Notes are an integral part of the Financial
Statements.
Cash Flow Statement
For the Year Ended 31 December 2019
Year ended 31 December Year ended 31 December
2019 2018
GBP'000 GBP'000
---------------------- ----------------------
Net cash flows from operating
activities (120) (1,004)
Cash flows from investing
activities (23,503) (15,547)
Purchase of investments 4,478 2,798
Sale of investments
------------------------------ ---------------------- ----------------------
Net cash flows from investing
activities (19,025) (12,749)
------------------------------ ---------------------- ----------------------
Cash flows from financing
activities
Equity dividends paid (1,517) (6,545)
Issue of Ordinary Shares 121 16,430
Issue of Ordinary Shares
- merger 19,185 13,430
Share premium cancellation
costs (9) -
Repurchase of Ordinary Shares (786) (596)
------------------------------ ---------------------- ----------------------
Net cash flows from financing
activities 16,994 22,719
------------------------------ ---------------------- ----------------------
Net (decrease)/increase in
cash (2,151) 8,966
------------------------------ ---------------------- ----------------------
Cash at beginning of year 20,553 11,587
Cash at end of year 18,402 20,553
------------------------------ ---------------------- ----------------------
The accompanying Notes are an integral part of the Financial
Statements.
Notes To The Financial Statements
For the Year Ended 31 December 2019
1. Accounting policies
The Company is a public limited company, incorporated in
Scotland, and its registered office is shown in the Corporate
Summary in the Annual Report.
(a) Basis of preparation
The Financial Statements have been prepared under the historical
cost convention, as modified by the revaluation of investments and
in accordance with FRS 102, the Financial Reporting Standard
applicable in the UK and Republic of Ireland, and in accordance
with the Statement of Recommended Practice for Investment Trust
Companies and Venture Capital Trusts (the SORP) issued by the AIC
in November 2014.
(b) Income
Dividends receivable on equity shares and unit trusts are
treated as revenue for the period on an ex-dividend basis. Where no
ex-dividend date is available dividends receivable on or before the
year end are treated as revenue for the period. Provision is made
for any dividends not expected to be received. The fixed returns on
debt securities and non-equity shares are recognised on a time
apportionment basis so as to reflect the effective interest rate on
the debt securities and shares. Provision is made for any income
not expected to be received. Interest receivable from cash and
short term deposits and interest payable are accrued to the end of
the year.
(c) Expenses
All expenses are accounted for on an accruals basis and charged
to the Income Statement. Expenses are charged through the revenue
account except as follows:
-- expenses which are incidental to the acquisition and disposal
of an investment are charged to capital;
-- expenses are charged to realised capital reserves where a
connection with the maintenance or enhancement of the value of the
investments can be demonstrated. In this respect the investment
management fee and performance fee has been allocated 20% to
revenue and 80% to realised capital reserves to reflect the
Company's investment policy and prospective income and capital
growth; and
-- share issue and merger costs are charged to the share premium account.
(d) Taxation
Deferred taxation is recognised in respect of all timing
differences that have originated but not reversed at the balance
sheet date, where transactions or events that result in an
obligation to pay more tax in the future or right to pay less tax
in the future have occurred at the balance sheet date. This is
subject to deferred tax assets only being recognised if it is
considered more likely than not that there will be suitable profits
from which the future reversal of the underlying timing differences
can be deducted. Timing differences are differences arising between
the Company's taxable profits and its results as stated in the
Financial Statements that are capable of reversal in one or more
subsequent periods.
Deferred tax is measured on a non-discounted basis at the tax
rates that are expected to apply in the periods in which timing
differences are expected to reverse, based on tax rates and laws
enacted or substantively enacted at the balance sheet date.
The tax effect of different items of income/gain and
expenditure/loss is allocated between capital reserves and revenue
account on the same basis as the particular item to which it
relates, using the Company's effective rate of tax for the
period.
UK corporation tax is provided at amounts expected to be
paid/recovered using the tax rates and laws that have been enacted
or substantively enacted at the balance sheet date.
(e) Investments
In valuing unlisted investments, the Directors follow the
criteria set out below. These procedures comply with the revised
International Private Equity and Venture Capital Valuation
Guidelines for the valuation of private equity and venture capital
investments. Investments are recognised at their trade date and are
designated by the Directors as fair value through profit or loss.
At subsequent reporting dates, investments are valued at fair
value, which represent the Directors' view of the amount for which
an asset could be exchanged between knowledgeable willing parties
in an arm's length transaction. This does not assume that the
underlying business is saleable at the reporting date or that its
current shareholders have an intention to sell their holding in the
near future.
A financial asset or liability is generally derecognised when
the contract that gives rise to it is settled, sold, cancelled or
expires.
1. For early stage investments completed in the reporting
period, fair value is determined using the Price of Recent
Investment Method, except that adjustments are made when there has
been a material change in the trading circumstances of the investee
company.
2. Whenever practical, recent investments will be valued by
reference to a material arm's length transaction or a quoted
price.
3. Mature companies are valued by applying a multiple to their
prospective earnings to determine the enterprise value of the
company.
3.1 To obtain a valuation of the total ordinary share capital
held by management and the institutional investors, the value of
third party debt, institutional loan stock, debentures and
preference share capital is deducted from the enterprise value. The
effect of any performance related mechanisms is taken into account
when determining the value of the ordinary share capital.
3.2 Preference shares, debentures and loan stock are valued
using the Price of Recent Investment Method. When a redemption
premium has accrued, this will only be valued if there is a
reasonable prospect of it being paid. Preference shares which carry
a right to convert into ordinary share capital are valued at the
higher of the Price of Recent Investment Method basis and the
price/ earnings basis, both described above.
4. In the absence of evidence of a deterioration, or strong
defensible evidence of an increase in value, the fair value is
determined to be that reported at the previous balance sheet
date.
5. All unlisted investments are valued individually by the
portfolio management team of Maven Capital Partners UK LLP. The
resultant valuations are subject to detailed scrutiny and approval
by the Directors of the Company.
6. In accordance with normal market practice, investments listed
on the Alternative Investment Market or a recognised stock exchange
are valued at their bid market price.
(f) Fair value measurement
Fair value is defined as the price that the Company would
receive upon selling an investment in a timely transaction to an
independent buyer in the principal or the most advantageous market
of the investment. A three-tier hierarchy has been established to
maximise the use of observable market data and minimise the use of
unobservable inputs and to establish classification of fair value
measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset
or liability, including assumptions about risk, for example, the
risk inherent in a particular valuation technique used to measure
fair value including such a pricing model and/or the risk inherent
in the inputs to the valuation technique. Inputs may be observable
or unobservable.
Observable inputs are inputs that reflect the assumptions market
participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the
reporting entity.
Unobservable inputs are inputs that reflect the reporting
entity's own assumptions about the assumptions market participants
would use in pricing the asset or liability developed based on best
information available in the circumstances.
The three-tier hierarchy of inputs is summarised in the three
broad levels listed below.
-- Level 1 - the unadjusted quoted price in an active market for
identical assets or liabilities that the entity can access at the
measurement date.
-- Level 2 - inputs other than quoted prices included within
Level 1 that are observable (ie developed using market data) for
the asset or liability, either directly or indirectly.
-- Level 3 - inputs are unobservable (ie for which market data
is unavailable) for the asset or liability.
(g) Gains and losses on investments
When the Company sells or revalues its investments during the
year, any gains or losses arising are credited/charged to the
Income Statement.
(h) Critical accounting judgements and key sources of estimation uncertainty
Disclosure is required of judgements and estimates made by the
Board and the Manager in applying the accounting policies that have
a significant effect on the Financial Statements. The area
involving the highest degree of judgement and estimates is the
valuation of unlisted investments recognised in Note 8 and
explained in Note 1(e) above.
In the opinion of the Board and the Manager, there are no
critical accounting judgements.
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 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. 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. This reserve is distributable.
Capital redemption reserve
The nominal value of shares repurchased and cancelled is
represented in the capital redemption reserve. This reserve is
non-distributable.
Revenue reserve
The revenue reserve represents accumulated profits retained by
the Company that have not been distributed to Shareholders as a
dividend. This reserve is distributable.
Return per Ordinary Share
Year ended 31 December Year ended 31 December
2019 2018
---------------------- ----------------------
The returns per share have 76,885,003 55,321,759
been based on the following GBP776,000 GBP86,000
figures: GBP399,000 GBP275,000
Weighted average number of
Ordinary Shares
Revenue return
Capital return
---------------------------- ---------------------- ----------------------
Total return GBP1,175,000 GBP361,000
---------------------------- ---------------------- ----------------------
Net asset value per Ordinary Share
The net asset value per Ordinary Share as at 31 December 2019
has been calculated using the number of Ordinary Shares in issue at
that date of 103,113,920 (2018: 76,570,595).
Post balance sheet event
During the period from the date of the statement of financial
position to the date that the Financial Statements were approved,
the coronavirus (COVID-19) outbreak has caused extensive disruption
to businesses and economic activities globally. The uncertainties
over the emergence and spread of COVID-19 have caused market
volatility on a global scale. In accordance with the requirements
of FRS 102, the fair valuations at the date of the statement of
financial position reflect the economic conditions in existence at
that date. As highlighted above, the next date at which the
valuation of the investment portfolio was assessed was 20 March
2020, with the unaudited NAV per share of 64.51p at that date being
announced on 26 March 2020. As at 20 March 2020, the valuation of
the investment portfolio was GBP47,898,000.
Directors Responsibility Statement
The Directors confirm that, to the best of their knowledge:
-- the Financial Statements have been prepared in accordance
with the applicable accounting standards and give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company as at 31 December 2019 and for the year to that
date;
-- the Directors' Report includes a fair review of the
development and performance of the Company, together with a
description of the principal risks and uncertainties that it faces;
and
-- the Annual Report and Financial Statements taken as a whole
is fair, balanced and understandable and provides the information
necessary for Shareholders to assess the Company's position and
performance, business model and strategy.
Other information
The AGM will be held on Thursday 21 May 2020, commencing at
12.00 noon, at the offices of Maven Capital Partners UK LLP,
Kintyre House, 205 West George Street, Glasgow G2 2LW.
Copies of this announcement and the Annual Report and Financial
Statements for the year ended 31 December 2019, will be available
to the public: at the registered office of the Company, Kintyre
House, 205 West George Street, Glasgow G2 2LW; at the offices of
Maven Capital Partners UK LLP, Fifth Floor, 1-2 Royal Exchange
Buildings, London EC3V 3LF; and on the Company's website at
www.mavencp.com/migvct4.
The Annual Report and Financial Statements for the year ended 31
December 2019 will be issued to Shareholders and filed with the
Registrar of Companies in due course.
The financial information contained within this announcement
does not constitute the Company's statutory Financial Statements as
defined in the Companies Act 2006. The statutory Financial
Statements for the year ended 31 December 2018 have been delivered
to the Registrar of Companies and contained an audit report which
was unqualified and did not constitute statements under S498(2) or
S498(3) of the Companies Act 2006.
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.
The Annual Report will be submitted to the National Storage
Mechanism and will be available for inspection at:
https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism
.
By Order of the Board
Maven Capital Partners UK LLP
Secretary
21 April 2020
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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