TIDMMIG4
RNS Number : 7715G
Mobeus Income & Growth 4 VCT PLC
24 November 2015
Mobeus Income & Growth 4 VCT plc ("the Company")
INTERIM MANAGEMENT STATEMENT
For the quarter ended 30 September 2015
Mobeus Income & Growth 4 VCT plc reports an Interim
Management Statement for the quarter ended 30 September 2015. The
statement also includes relevant financial information between the
end of the period and the date of this statement.
NET ASSET VALUE AND TOTAL RETURN PER SHARE
At 30 September 2015 At 30 June
2015
Net assets attributable GBP54,991,732 GBP54,608,824
to shareholders
Shares in issue 48,356,210 48,186,955
Net asset value (NAV)
per share 113.72p 113.33p
Cumulative dividends
paid 62.20p 60.20p
Total return (net asset
value basis) per share
since inception 175.92p 173.53p
The net asset value per share has risen by 0.39 pence over the
quarter, after deducting a dividend of 2 pence per share, as
referred to below.
CUMULATIVE DIVIDENDS
The Company paid an interim dividend of 2.00 pence per share
(comprising 1.00 pence from capital and 1.00 pence from income) on
25 September 2015, bringing cumulative dividends paid per share to
date to 62.20 pence.
NEW INVESTMENTS
There was one new investment of GBP0.90 million in the period.
GBP1.13 million held in Vian Marketing Limited, a company preparing
to trade, was used to invest in Tushingham Sails Limited, a leading
supplier of stand-up paddleboards. This resulted in a net repayment
from Vian of GBP0.23 million back to the Company.
After the period-end, in October 2015, amounts held in existing
companies Tovey Management Limited (GBP1.50 million) and Knighton
Management Limited (GBP1.50 million), both of which were companies
preparing to trade, along with a further GBP0.24 million from the
Company, were used to invest in Access IS Limited, a leading
provider of data capture and scanning hardware.
DIVESTMENTS
There was one realisation in the period. The Company realised
part of its loan stock and its entire equity investment in BG
Training for net proceeds of GBP0.08 million, realising a capital
gain of GBP0.01 million for the quarter. The Company has retained a
loan stock holding of GBP0.01 million at cost. Total proceeds
received to date have achieved a return of 0.86 times cost.
Also during the period, GBP0.35 million was received from
Newquay Helicopters as an interim distribution resulting from the
members' voluntary liquidation of the company. Further
consideration of GBP0.004 million was received from Machineworks,
an investment realised in an earlier period.
LOAN STOCK REPAYMENTS
A total of GBP0.60 million was received in loan stock repayments
and premiums during the quarter to 30 September 2015, from Jablite,
Leap NewCo (trading as Ward Thomas, Bishopsgate and Aussie Man
& Van), Fullfield (Motorclean), and Tessella.
After the period-end, further loan repayments totalling GBP0.16
million (including premium) were received from Fullfield
(Motorclean) and Jablite.
REGULATORY DEVELOPMENTS
The UK Finance Act 2015 became law on 18 November 2015. This has
introduced rules that will ensure VCTs comply with new European
Union ("EU") State Aid rules, while remaining able to provide
finance to small and growing businesses.
Shareholders are reminded that the UK's VCT scheme must comply
with the EU State Aid rules, as the tax relief given to investors
is deemed to be State Aid to the companies in which the VCTs
invest. EU State Aid rules prohibit governments from providing
financial assistance to companies which are deemed capable of
raising finance from investors, banks and other financial
institutions without such assistance.
EU State Aid rules have recently changed under the EU's 2014
Risk Finance Guidelines, which became effective from the start of
2015. These new rules have introduced new criteria regarding:
-- the age of companies that will be eligible for investments
(generally 7 years under UK Finance Act);
-- a lifetime cap on the total amount of state aided investment
a company can receive (generally GBP12 million under UK Finance
Act); and
-- rules that require VCT investment to be used for growth and development purposes only.
The practical consequences of the application of these EU State
Aid rules by the UK Finance Act 2015 are that the range and size of
potential investments open to generalist VCTs such as Mobeus Income
& Growth 4 VCT plc will reduce. This is because VCTs are now
required to focus more sharply upon the provision of growth capital
to younger companies. In particular, the Government has decided
that VCT investments made to finance the purchase of existing
business owners' shareholdings and the acquisition of businesses
will no longer be permitted. This will restrict significantly all
VCTs' future participation in management buyout ("MBO")
transactions.
Mobeus has a long record of making, and exiting, successful VCT
investments, focusing in recent years on MBO transactions. The
investments in MBOs that have already been made are not affected by
these new rules. The UK Finance Act requires Mobeus to change its
focus for new investments for each of its four advised VCTs,
including your Company. The UK government has announced an
intention to permit VCTs to provide some replacement capital
finance within investments, subject to agreement with the EU State
Aid authorities. If this comes to pass, it would widen the pool of
possible investment opportunities for VCTs, compared to the more
restricted regime that now applies following Royal Assent of the
Finance Bill.
Your directors are working closely with Mobeus and our other
professional advisers to understand the full implications of the
new rules for our future investment strategy. We will report back
to shareholders in due course. In the meantime, your Board
anticipates making investments in growth and development capital
opportunities that comply with the new rules.
FUNDRAISING
The Board continues to monitor the Company's level of liquidity.
It is not the Board's present intention to fundraise this tax
year.
SHARE BUYBACKS
The Company did not purchase any shares for cancellation during
the quarter ended 30 September 2015.
DIVIDEND INVESTMENT SCHEME
During the period, the Company issued 169,255 new ordinary
shares on 25 September 2015 under the terms of the Dividend
Investment Scheme at a price of 100.62 pence per share, following
which a total of 48,356,210 shares were in issue.
For further information, please contact:
Jonathan McGuire, for Mobeus Equity Partners LLP, Company
Secretary: 020 7024 7615.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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