TIDMMIG4
RNS Number : 0986T
Mobeus Income & Growth 4 VCT PLC
23 March 2016
Mobeus Income & Growth 4 VCT plc ("MIG4" or the "Company" or
the "VCT")
Annual Results Announcement for the year ended 31 December
2015
INVESTMENT OBJECTIVE
Mobeus Income & Growth 4 VCT plc, ("MIG4", the "Company" or
the "Fund") is a Venture Capital Trust ("VCT") advised by Mobeus
Equity Partners LLP ("Mobeus"), investing primarily in established,
unquoted companies.
The Objective of the Company is to provide investors with a
regular income stream by way of tax-free dividends and to generate
capital growth through portfolio realisations which can be
distributed by way of additional tax-free dividends, while
continuing at all times to qualify as a VCT.
DIVIDEND POLICY
The Company seeks to pay dividends at least annually out of
income and capital as appropriate, and subject to fulfilling
certain regulatory requirements.
FINANCIAL HIGHLIGHTS
Annual results for the year ended 31 December 2015
-- Net Asset Value ("NAV") Total Return per share
of 8.2% for the year.
-- Share Price Total Return per share of 11.7%
for the year.
-- Shareholders received an interim dividend of
2.00 pence per share in September 2015 and a
final dividend of 9.00 pence per share is proposed
to be paid on 25 May 2016. This will bring dividends
paid per share in respect of the year to 11.00
pence and cumulative dividends paid per share
to 71.20 pence.
-- GBP8.48 million was invested during the year
into four new investments totalling GBP7.21
million with a further GBP1.27 million invested
into three follow-on investments.
-- A total of GBP7.49 million was received as net
cash proceeds from four realisations and loan
repayments compared with a total cost of GBP3.42
million.
Cumulative total shareholder return per share (NAV basis)
The longer term trend of performance on this measure is shown in
the chart below:-
As at Net Net asset Cumulative Cumulative
assets value (NAV) dividends total shareholder
per share paid per share return per
share (NAV
basis)*
------------- -------- ------------- ----------------- -------------------
(GBP (p) (p) (p)
m)
------------- -------- ------------- ----------------- -------------------
31 December
2015 57.01 117.89 62.20 180.09
------------- -------- ------------- ----------------- -------------------
31 December
2014 50.29 118.21 52.20 170.41
------------- -------- ------------- ----------------- -------------------
31 December
2013 42.12 119.92 34.20 154.12
------------- -------- ------------- ----------------- -------------------
31 December
2012 33.54 117.31 26.70 144.01
------------- -------- ------------- ----------------- -------------------
31 January
2012 29.42 116.73 21.70 138.43
------------- -------- ------------- ----------------- -------------------
*Cumulative NAV total shareholder return is net asset value plus
cumulative dividends paid since 1999 to date.
The net asset value (NAV) per share as at 31 December 2015 was
117.89 pence.
The chart above shows the recent past performance of the
original funds raised in 1999. The original subscription price was
200p per share before the benefit of income tax relief.
Subscription prices from subsequent fundraisings and historic
performance data from 2008 are shown in the Investor Performance
Appendix on the Company's website.
On 31 July 2006, Mobeus became sole Investment Adviser to the
Company. The cumulative NAV total return at this date was 122.51
pence.
CHAIRMAN'S STATEMENT
I am pleased to present the annual results of Mobeus Income
& Growth 4 VCT plc for the year ended 31 December 2015.
Overview
It has been another good year for the Company, due to profitable
realisations, positive portfolio performance and a high level of
new investment. During the year the Company successfully completed
two major realisations at substantial gains over cost. In addition,
a number of existing investee companies have returned solid
performances in the portfolio, contributing to increases in their
valuations.
Shareholders will have noted that the Finance Act 2015, which
became legislation last November, requires some changes in the type
of investments that the VCT is now permitted to make. These changes
will require the Company's current Investment Policy to be amended.
For further information please see Industry developments (below)
and Changes to the Investment Policy.
Performance
The NAV total return per share was 8.2 per cent. for the year
ended 31 December 2015 (2014: 13.6 per cent.). The share price
total return was 11.7 per cent. (2014: 15.0 per cent.). For details
of these calculations, please refer to the Strategic Report in the
Annual Report. There were two principal factors causing this
result. Firstly, the value of the portfolio has risen due to strong
performance from some of the portfolio companies, notably Virgin
Wines, Jablite and Tharstern and, secondly, returns benefitted from
realised gains from the sales of Tessella and Westway, which
achieved 2.8 times and 6.7 times respectively over the original
cost of these investments.
For more details on the performance of your investment in the
Company, please consult the Investor Performance Appendix on the
Company's website.
Dividends
Your Directors are pleased to propose a final dividend in
respect of 2015 of 9.00 pence (2014: second interim 8.00 pence) per
share. This dividend, if approved, will be paid on 25 May 2016 to
shareholders on the Register on 8 April 2016. This will bring
dividends paid in respect of the year ended 31 December 2015 to
11.00 pence (2014: 22.00 pence) per share and cumulative dividends
paid since inception to 71.20 pence (2014: 60.20 pence) per
share.
A chart showing the dividends paid in respect of each of the
last five years and cumulative dividends on the same basis is
included in the Strategic Report.
Investment Portfolio
The VCT has maintained a steady rate of new investment,
investing a total of GBP8.48 million during the year under review
in seven companies.
During the year the value of the opening portfolio increased by
GBP3.30 million in realised gains (net of transaction costs) and
GBP1.09 million in unrealised gains. These represent a total
increase of 17.6 per cent. in the valuation of the portfolio over
the year on a like for like basis Realised gains over the original
cost of the investment were GBP4.07 million. The portfolio under
management at the year-end was valued at GBP38.72 million
representing 101.1 per cent. of cost.
Full details of all of these transactions and of a new
investment following the year end are included in the Investment
Review.
Net proceeds totalling GBP7.49 million were received during the
year under review. Of this total, GBP4.81 million was received from
two substantial disposals, Tessella and Westway Services. In
addition the Company received realisation proceeds from several
other companies, principally Higher Nature, Newquay Helicopters,
and BG Training totalling GBP0.62 million. The balance of GBP2.06
million comprised loan repayments from companies held within the
portfolio.
Industry developments
The UK Finance Act 2015 became law on 18 November 2015. This has
introduced rules designed to ensure that VCTs comply with European
Union ("EU") State Aid rules, while remaining able to provide
finance to small and growing businesses.
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.
The new VCT rules have introduced new criteria regarding:
-- the maximum age of companies that are eligible for
investments (generally seven years under the UK Finance Act);
-- besides an annual limit of GBP5 million, already in place,
there is now also a lifetime cap on the total amount of state aided
risk finance investment a company can receive (generally GBP12
million under the UK Finance Act); and
-- a requirement that VCT investment is 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, will reduce. 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. Previous legislation had prevented
such transactions if they used the VCT's funds raised after 5 April
2012. The 2015 Act has extended this restriction firstly, to apply
to previously exempted monies raised prior to 5 April 2012 and
secondly, to prevent such investment, even if it would be a
non-qualifying holding. The new rules are therefore likely to
restrict significantly all VCTs' future participation in management
buyout ("MBO") transactions. However, such investments that have
already been made remain qualifying investments as part of our
investment portfolio.
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
The UK Finance Act now requires the VCT to re-adjust its focus
for new investments to provide growth capital to younger companies,
which is likely to alter the balance of the portfolio of the
Company over a number of years. The UK Government has also
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 enlarge
the pool of possible investment opportunities for VCTs compared to
the more restricted regime that now applies under the new Act.
In theory, the change in focus to smaller investments in
companies requiring growth (and possibly replacement) capital
carries a higher risk, but also the prospect of higher, but more
variable, returns. Generating the level of consistently high
returns achieved over the last six years in particular is likely to
be more challenging.
Your Board has questioned the Investment Adviser on its ability
to comply with the new rules. The board is pleased to note that
recruitment of a senior hire with extensive experience of growth
capital has already taken place and further recruitment is planned.
The Board has confidence in the Investment Adviser, justified by
the past strong returns to shareholders, being able to adapt its
investment approach to the new rules so as to generate attractive
returns in the future.
Changes to the Investment Policy
The new VCT legislation above requires revisions to this VCT's
current Investment Policy (the "Policy") which, in turn, will
require the approval by shareholders of an ordinary resolution that
will be proposed at the AGM. Although the changes are significant
the investment methodology will continue. However, the Investment
Policy makes particular reference to investing in management buyout
(MBO) transactions and includes some of the key specific VCT
legislative requirements. The principal change proposed to the
Policy is to remove the reference to MBO transactions. In addition,
references to the key specific VCT rules have been removed. The
latter has been replaced by an intent that every investment will
meet the requirements of prevailing VCT legislation. This should
reduce the requirement to amend the Policy, which can be a costly
and time-consuming process, each time VCT legislation changes. The
proposed Policy also retains flexibility to enable the Board and
the Investment Adviser to consider a wide range of opportunities
amongst established businesses to provide growth capital under the
new VCT legislative environment. The potential impact of the
changes on the VCT's portfolio and investment risk is set out in
Industry developments above.
Further details of the proposed changes to the Policy itself are
contained in the Directors' Report, explaining the ordinary
resolution to approve a revised Policy. The Board strongly
recommends that shareholders approve the resolution. If the
resolution is not approved, the Company is unlikely to continue to
operate under current VCT regulations, and the Board will need to
explore alternative strategies which may have a substantial impact
on the Company and its shareholders.
Your Directors continue to work closely with Mobeus and our
other professional advisers to understand the full implications of
the new rules, so as to apply the revised Policy at a practical
level. There remain many detailed points to be clarified in
interpreting the new legislation.
Liquidity
The Board continues to investigate alternative investment
options to secure greater returns on the Company's liquid assets,
although the continuing security of capital remains a paramount
consideration. Although the liquid assets are held in a range of
credit worthy financial institutions it is recognised that the
return on such assets is currently lower than wished due to the
current government's low interest rate policies. Total liquidity is
now GBP27.93 million (2014: GBP27.14 million), of which GBP9.92
million is held in companies preparing to trade and GBP18.01
million is held in deposit accounts at well-known banks and a
selection of money market funds with AAA credit ratings.
VCT Fundraising
The Company participated with the three other Mobeus advised
VCTs in a successful 2014/15 fundraising Offer which closed early,
on 18 February 2015. The full amount of GBP6 million sought was
raised which gave the Company GBP5.87 million net of costs.
The Company is not fundraising in 2015/16 and does not
anticipate that there will be further fundraising until the Board
has had the opportunity to consider in full the implications of the
VCT tax legislation published in the Finance Act 2015 and until its
review of projected liquidity indicates a need to raise further
funds.
Dividend Investment Scheme
The Company's Dividend Investment Scheme ("the Scheme") is a
convenient, easy and cost effective way for shareholders to build
up their shareholding in the Company. Instead of receiving cash
dividends they can elect to receive new shares in the Company.
Shareholders who already participate, or are considering whether
to participate, in the Scheme should consider the preceding
sections on Industry developments and Changes to the Investment
Policy. There is an associated five year holding period required to
secure income tax relief when new shares are allotted under the
Scheme.
Shareholders may, therefore, wish to review their participation
until the implications of these changes, outlined in the sections
above, are clearer. If you are in any doubt whether to participate
in the scheme or not, you should consult your financial
adviser.
Following a commitment given to a shareholder who raised with me
the question of whether shares issued under the Scheme should be
issued at a discount of approximately 10 per cent. to the latest
NAV, or at NAV, consultation took place with shareholders at the
two investor meetings recently held. This process indicated that at
present there are no strong views on the subject. There was a very
limited response, and it was not unanimous. In view of this your
Board decided to leave the position as is. The Board will, however,
keep this issue under review.
Further information on the Scheme, including details of where to
obtain an application form, can be found in Shareholder Information
in the Annual Report.
Share buybacks
During the year ended 31 December 2015, the Company bought back
0.4 per cent. of the issued share capital of the Company which were
subsequently cancelled. Further details of the purchases are
included in the Directors' Report of the Annual Report.
Annual General Meeting
The Annual General Meeting of the Company will be held at 12
noon on Friday, 13 May 2016 at 33 St James's Square, London SW1Y
4JS. Both the Board and the Investment Adviser look forward to
welcoming shareholders to the meeting which will include a
presentation from the Investment Adviser on the investment
portfolio and provide an opportunity to ask questions of the Board
and the Investment Adviser. The Notice of the meeting is included
in the Annual Report and an explanation of the resolutions to be
proposed can be found in the Directors' Report of the Annual
Report.
Shareholder Communications
The annual shareholder event was held on Tuesday 26 January 2016
at the Royal Institute of British Architects in central London.
This annual event included presentations on the Mobeus advised
VCTs' investment activity and performance including presentations
by the Chief Executives of Jablite and Plastic Surgeon. There were
separate day-time and evening sessions, and feedback from those who
attended found it informative and worthwhile.
Industry awards for the Adviser
Your Board is pleased to see the Investment Adviser, once again,
winning significant industry awards. The Investment Adviser was
named VCT House of the Year for the fourth consecutive year at the
unquote" British Private Equity Awards 2015 and also received the
award for Exit of the year for Focus Pharmaceuticals. In addition,
Mobeus was named VCT Manager of the Year by Investor Allstars.
These three awards recognised again the continuing high level of
performance achieved by the Investment Adviser in all areas of its
activity including deals, exits, portfolio management and
fundraising.
Future prospects
Most stock markets have been undergoing a corrective phase.
There are a number of uncertainties including conflict in the
Middle East, a slowdown in China, the migrant crisis in Europe, and
an EU Referendum in June 2016. The recent correction in the UK
market is not surprising after rises driven in part by cheap debt,
which continues to drive up both public and private debt levels in
the UK. On the other hand official figures still indicate UK
growth, and private equity investment is a medium to longer term
process. Remunerative investments can still be found and the
Investment Adviser remains busy analysing new proposals. Profitable
exits can still be achieved.
As mentioned earlier, we are proposing changes to the Company's
current Investment Policy at the AGM to ensure full compliance with
the provisions of the Finance Act 2015. There may be a pause in new
investment while the Investment Adviser identifies opportunities
that comply with the requirements of the new legislation.
The Company and its Investment Adviser are confident that they
will be able to adjust to the changes in VCT regulation introduced
by the Finance Act 2015, and still produce attractive returns in
the future. The existing portfolio continues to perform well and to
provide a good foundation for future performance.
Finally, I would like to express my thanks to all shareholders
for their continuing support of the Company.
Christopher Moore
Chairman
23 March 2016
Proposed Changes to the Investment Policy
As referred to in the Chairman's Statement above, the Investment
Policy requires changes and a resolution approving a revised
Investment Policy is included in the Annual Report. Full details
are contained within the Annual Report.
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
Investment Review
This has been another strong year for the investment portfolio.
The market continued to provide a strong pipeline of good
investment opportunities and conditions have been favourable for
both new investment and realisations. The portfolio is performing
well as a whole as is demonstrated by the fact that the valuation
of the portfolio as a whole has increased by 17.6 per cent. during
the year on a like-for-like basis. Many of the companies in the
portfolio are strongly cash generative and have made partial
repayments of their loan stock during the year.
Investments remain spread across a number of sectors, primarily
in support services, general retailers, media and fixed line
telecommunications.
The changes to VCT Rules, introduced by the Finance Act 2015,
have required all VCTs to reconsider the type of investments that
VCTs can make in future to ensure a VCT complies with the new
Finance Act. This process is not yet complete, and we anticipate a
phase of familiarisation with the practical application of the
rules to prospective opportunities. The application of the new
regulations in practice is still being defined. We have been able
to make our first investment under the new rules earlier this
month.
As another part of our response to the changes, we intend to
recruit additional investment professionals, who will focus
primarily upon growth capital transactions. We are pleased to have
already recruited a senior experienced individual to head up this
team, who has a good track record of profitable investments in the
VCT growth capital sector.
Two excellent realisations were delivered at the end of the
year. The sale of Tessella realised cash proceeds of GBP2.94
million, and a gain over current cost of GBP1.95 million, being
4.03 pence per share. Total proceeds over the life of the
investment were GBP3.57 million, representing a return of 2.8 times
the original cost of the investment of GBP1.27 million, over the
three and a half years that this investment was held.
The realisation of Westway Services generated cash proceeds of
GBP1.87 million, and a gain over current cost of GBP1.83 million,
being 3.78 pence per share. Total proceeds to date over the life of
the investment were GBP2.50 million, representing a return of 6.7
times the original cost of the investment of GBP0.37 million. In
addition the Company received realisation proceeds from a number of
other companies, such as, Higher Nature, Newquay Helicopters, and
BG Training totalling GBP0.62 million. Finally, GBP2.06 million,
comprising loan repayments from companies held within the
portfolio, make up the balance of total net realisation proceeds of
GBP7.49 million.
New investment
A total of GBP8.48 million was invested in new deals during the
year under review. This included GBP7.21 million in new investments
into Media Business Insight ("MBI"), Jablite, Tushingham and Access
IS and GBP1.27 million in three follow-on investments in Entanet,
CGI Creative Graphics International and Racoon International.
Principal new investments in the year
Company Business Date Amount
of Investment of new
investment
(GBPm)
------------------ --------------------------- ----------------- ------------
Media Business January
Insight Events and publishing 2015 2.72*
------------------ --------------------------- ----------------- ------------
Media Business Insight is a publishing and events
business focused on the creative production industries,
specifically advertising, TV production and film.
Based in Shoreditch, East London, the company comprises
four distinct brands. The investment represented
an attractive opportunity to invest in a sector-leading
company underpinned by strong recurring revenues
from subscriptions and events. The company's latest
audited accounts for the year ended 31 December
2014 show annual sales of GBP8.38 million and profit
before interest, tax and amortisation of goodwill
of GBP1.14 million.
*A further GBP1.14 million was invested into South
West Services Investment Limited ("SWSI") adding
to its earlier investment of GBP0.91 million. This
enabled SWSI to acquire Media Business Insight Limited
("MBI"). The Company has also advanced a non-qualifying
loan of GBP0.67 million to MBI. SWSI subsequently
changed its name to Media Business Insight Holdings
Limited.
--------------------------------------------------------------------------------
Expanded polystyrene April
Jablite products 2015 1.12 *
------------------ --------------------------- ----------------- ------------
Jablite is the UK's largest domestic manufacturer
of Expanded Polystyrene products operating under
two divisions manufacturing packaging (Styropak)
and construction (Jablite) products. The business
was acquired from its Dutch parent and operates
from five production sites in the UK. For the year
ended 31 December 2014, Jablite Limited and Styropack
(UK) Limited, generated annual sales of GBP32.83
million and GBP15.17 million respectively and profit
before interest, tax and amortisation of goodwill
of GBP2.01 million and GBP0.34 million respectively.
* GBP1.12 million was invested into Duncary 16,
a company preparing to trade on 2 April 2015. This
enabled Duncary 16 to acquire Jablite on 23 April
2015. Duncary 16 has subsequently changed its name
to Jablite Holdings Limited.
----------------------------------------------------------------------------------
Supplier of watersports July
Tushingham Sails equipment 2015 0.90*
------------------ --------------------------- ----------------- ------------
Tushingham Sails is a supplier of sails to the UK
windsurfing market. It has recently moved into the
young and rapidly expanding watersport of stand-up
paddleboarding, as the manufacturer of its own fast
growing brand called Red Paddle. The Company's design
ethos and historical market knowledge has enabled
Tushingham to penetrate this world market and we
are optimistic that its strong growth will continue.
The Company had a turnover of GBP7.54 million and
generated an adjusted profit before interest, tax
and amortisation of goodwill of GBP1.08 million
during the year ended 28 February 2015.
*GBP1.13 million held in Vian Marketing, a company
preparing to trade, was used to acquire Tushingham
Sails Limited. This resulted in a net repayment
to the company of GBP0.23 million.
----------------------------------------------------------------------------------
Data capture and scanning October
Access IS hardware 2015 2.47*
------------------ ---------------------------- ---------------- --------------
Access IS is a leading provider of data capture
and scanning hardware. The company has a significant
share of the worldwide market for this technology
in airports and strong positions in the fast growing
markets of both ID & Security and Transport & Ticketing.
This was an opportunity to acquire a longstanding
and profitable business that is well positioned
in its niche market. The company's latest audited
accounts for the year ended 31 December 2014 show
annual sales of GBP9.95 million and profit before
interest, tax and amortisation of goodwill of GBP1.25
million.
* Amounts held in existing companies preparing to
trade, Knighton Management Limited (GBP1.10 million)
and Tovey Management Limited (GBP1.13 million),
along with a further GBP0.24 million from the Company,
were used for this investment.
----------------------------------------------------------------------------------
New investment post year-end
Company Business Date Amount
of investment of new
investment
(GBPm)
----------------- ------------------------ ---------------- ------------
Redline Assured Provision of security February
Security products and services 2016 0.84
----------------- ------------------------ ---------------- ------------
Redline Assured Security Limited ("Redline") is
a market leader in the provision of security products
and training services to airlines and corporate
entities. Redline currently operates predominantly
in the aviation security market and is at the forefront
of counter terrorism training and services. The
investment will be applied to enable the Company
to grow in its core aviation market and in other
sectors. The company's latest accounts for the year
ended 31 March 2015 show turnover of GBP4.81 million
and profit before interest, tax and amortisation
of goodwill of GBP0.82 million.
* GBP1.13 million held in Pound FM Consultants Limited,
a company preparing to trade, was used for this
investment. This resulted in a net repayment of
GBP0.29 million.
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Further investment into an existing portfolio companies in the
year
Company Business Date of Amount
investment of new
investment
(GBPm)
---------------------- --------------------------- -------------- ------------
Hair extension, hair January
care products and and October
Racoon International training 2015 0.08
---------------------- --------------------------- -------------- ------------
Racoon International is a premier supplier of ethically
sourced hair for hair extensions. A small further
investment of GBP0.06 was made in January 2015 with
the expectation that this, together with the appointment
of a successful sales-orientated Mobeus operating
partner to the management team of the business,
will add value to a previously unsuccessful investment.
A further GBP0.02 million was advanced in October
2015 to provide working capital. Racoon has a GBP1.57
million turnover and has generated profit before
interest, tax and amortisation of goodwill in the
year ended 31 March 2015 of GBP0.01 million.
---------------------------------------------------------------------------------
Wholesale provider
of internet connectivity February
Entanet solutions 2015 0.80
---------------------- --------------------------- -------------- ------------
Entanet is one of the UK's leading independent wholesale
voice and data communications providers based in
Telford. The VCT made a further loan stock investment
in February 2015 as negotiated at the time of the
original investment in February 2014. The operating
subsidiary of Entanet had a turnover of GBP29.82
million and generated a profit before interest,
tax and amortisation of goodwill of GBP2.31 million
during the year to 31 December 2014.
---------------------------------------------------------------------------------
Producer of adhesive
decorative graphics
CGI International for vehicles June 2015 0.39
---------------------- --------------------------- -------------- ------------
CGI Creative Graphics International is a leading
specialist provider of adhesive decorative graphics
to the automotive, recreational vehicle and airline
markets. It operates from two centres, in Bedford,
England and Cape Town, South Africa. The VCT made
a further loan stock investment in June 2015 which
had been negotiated at the time of the original
investment in June 2014. The Company's latest audited
accounts for the year ended 28 February 2015 show
annual sales of GBP9.19 million and profits before
interest, tax and amortisation of goodwill of GBP1.30
million.
---------------------------------------------------------------------------------
The VCT also invested a further GBP7.90 million into new
companies preparing to trade in March and April 2015 and a further
investment of GBP1.10 million into an existing company preparing to
trade in July 2015.
Realisations
Four investments were sold in the year for GBP5.19 million. Of
these, two were sizeable, profitable realisations which both
generated attractive returns for the Company. These were the sales
of Tessella Holdings Limited and Westway Services Holdings (2014)
Limited, which realised proceeds totalling GBP4.81 million. The two
other realisations, Higher Nature and BG Training, generated
proceeds of GBP0.38 million. Other capital receipts were GBP0.24
million including GBP0.04 million from Newquay Helicopters (2013)
Limited, as an interim distribution resulting from the members'
voluntary liquidation of the company and a further consideration of
GBP0.20 million from investments realised in earlier periods, most
notably Monsal Holdings and Focus Pharma. With the loan repayments
of GBP2.06 million, total net cash proceeds for the year amounted
to GBP7.49 million.
Company Business Period Total cash
of investment proceeds over
the life of
the investment/Multiple
over cost
-------------- ---------------------- --------------- -------------------------
Higher Nature Distributor of November GBP1.26 million
vitamins and natural 1999 - 1.1 times
medicines June 2015 cost
-------------- ---------------------- --------------- -------------------------
Higher Nature is a mail order distributor of vitamins
and natural medicines and was one of the VCT's oldest
investments. The sale was to the existing management
and its realisation delivered GBP0.30 million for
shareholders. Cash proceeds from the investment
totalled GBP1.26 million, compared to a total investment
cost of GBP1.13 million providing a return of 1.1
times cost.
----------------------------------------------------------------------------------
Tessella Science powered July 2012 GBP3.57 million
technology and - December 2.8 times
consulting services 2015 cost
-------------- ---------------------- --------------- -------------------------
The VCT sold its investment in Tessella to the French
engineering consultancy, Altran Group plc for GBP2.94
million. Founded in 1980, Tesella is now a global
business. In 2011 the company received the prestigious
Queen's Award for Enterprise in innovation for its
work on preserving the integrity of digital information
over long periods of time, irrespective of numerous
changes in technology. As part of the sale transaction,
the Company has retained a small investment in this
data archiving business, Preservica, which was previously
held within Tessella. The sale returned an IRR of
42% and during the three and a half years of this
investment, revenue has increased by 43% from GBP18.5
million in 2012 to GBP26.5 million forecast for
the current financial year.
----------------------------------------------------------------------------------
Westway Air conditioning June 2009 GBP2.50 million
systems - December 6.7 times
2015 cost
-------------- ---------------------- --------------- -------------------------
The VCT sold its investment in Westway to ABM Industries
Inc, one of the largest facility management services
providers in the US for GBP1.87 million, the sale
returning an IRR of 48%. During the period of the
investment Westway, which is headquartered in Middlesex,
and founded in 2001, has expanded its range of services
from heating, ventilation and air conditioning and
now offers other technical services including mechanical
and electrical maintenance, energy services, communications,
security systems and the servicing of electronic
garment picking systems.
----------------------------------------------------------------------------------
BG Training Specialist technical September GBP0.17 million
training 2002 - 0.9 times
August cost
2015
-------------- ---------------------- --------------- -------------------------
The Company realised part of its loan stock and
its entire equity investment in BG Training through
a sale to the management team. BG is a City based
provider of specialist technical training to investment
banks. The Company holds a remaining loan stock
investment in BG Training at a cost of GBP0.01 million.
----------------------------------------------------------------------------------
Loan stock repayments
Loan stock repayments totalled GBP3.53 million for the year,
including GBP1.47 million as part of the proceeds from the
companies realised above. Positive cashflow at five other companies
contributed to the balance of GBP2.06 million. These proceeds are
summarised below:-
Company Business Month Amount
(GBP000's)
---------------- --------------------------- ------------------ ------------
Expanded polystyrene
Jablite products May-November 975
---------------- --------------------------- ------------------ ------------
Vehicle cleaning and
Motorclean valeting services February-October 342
---------------- --------------------------- ------------------ ------------
Leap New
Co (Ward Logistics, storage and
Thomas) removals business May-December 337
---------------- --------------------------- ------------------ ------------
Company preparing to
Vian Marketing trade July 235
---------------- --------------------------- ------------------ ------------
Tessella Consultancy services March-September 89
---------------- --------------------------- ------------------ ------------
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
Tharstern Software based management
Group information systems March 83
---------------- --------------------------- ------------------ ------------
Total 2,061
--------------------------------------------------------------- ------------
Investment Portfolio Summary
at 31 December 2015
Total Total Total % of % of
Valuation Valuation
Cost at at at equity portfolio
31 Dec 31 Dec 31 Dec
2015 2014 2015 held by value
GBP GBP GBP
Mobeus Equity
Partners LLP
Entanet Holdings
Limited 2,167,662 2,335,499 3,338,043 9.6 8.6
Wholesale communications
provider
Virgin Wines
Holding Company
Limited 1,930,813 2,031,795 2,784,729 9.7 7.2
Online wine retailer
Tovey Management
Limited (trading
as Access IS)(1) 2,469,013 - 2,469,013 10.1 6.4
Providers of
data capture
and scanning
hardware
Media Business
Insight Holdings
Limited (formerly
South West Services
Investment Limited)(2) 2,722,760 908,000 2,282,607 15.7 5.9
A publishing
and events business
focused on the
creative production
industries
ASL Technology
Holdings Limited 1,933,591 2,192,099 2,234,937 9.5 5.8
Printer and photocopier
services
Manufacturing
Services Investment
Limited 2,016,900 912,800 2,016,900 11.4 5.2
Company seeking
to carry on business
in the manufacturing
sector
Veritek Global
Holdings Limited 1,620,086 1,628,647 1,659,063 10.3 4.3
Maintenance of
imaging equipment
Tharstern Group
Limited 1,091,886 1,149,811 1,518,767 12.2 3.9
MIS & Commercial
print software
solutions
Leap New Co Limited
(trading as Ward
Thomas Removals,
Bishopsgate and
Aussie Man &
Van)(3) 1,348,680 1,692,000 1,485,897 4.5 3.8
A specialist
logistics, storage
and removals
business
Fullfield Limited
(trading as Motorclean
Limited) 1,195,488 1,630,299 1,379,974 9.8 3.6
Vehicle cleaning
and valet services
CGI Creative
Graphics International
Limited 1,449,746 1,060,269 1,179,872 6.3 3.0
Vinyl graphics
to global automotive,
recreation vehicle
and aerospace
markets
Gro-Group Holdings
Limited 1,577,977 1,428,543 1,138,860 8.4 2.9
Baby sleep products
Backhouse Management
Limited 1,134,000 - 1,134,000 11.3 2.9
Company seeking
to carry on business
in the motor
sector
Barham Consulting
Limited 1,134,000 - 1,134,000 11.3 2.9
Company seeking
to carry on business
in the catering
sector
Chatfield Services
Limited 1,134,000 - 1,134,000 11.3 2.9
Company seeking
to carry on business
in the retail
sector
Creasy Marketing
Limited 1,134,000 - 1,134,000 11.3 2.9
Company seeking
to carry on business
in the textile
sector
McGrigor Management
Limited 1,134,000 - 1,134,000 11.3 2.9
Company seeking
to carry on business
in the pharmaceutical
sector
Pound FM Consultants
Limited 1,134,000 - 1,134,000 11.3 2.9
Company seeking
to carry on business
in the construction
sector
Jablite Holdings
Limited (formerly
Duncary 16 Limited)(4) 417,103 - 1,097,406 9.1 2.8
Manufacturer
of expanded polystyrene
products
Hollydale Management
Limited 1,095,500 - 1,095,500 11.0 2.8
Company seeking
to carry on a
business in the
food sector
EOTH Limited
(trading as Equip
Outdoor Technologies) 951,471 1,034,433 1,008,235 1.7 2.6
Distributor of
branded outdoor
equipment and
clothing
Vian Marketing
Limited (trading
as Tushingham
Sails)(5) 899,074 - 899,074 7.1 2.3
Design, manufacture
and sale of stand-up
paddleboards
and windsurfing
sails
Bourn Bioscience
Limited 1,132,521 856,920 895,428 7.7 2.3
Bourn Hall In-vitro
fertilisation
clinics
The Plastic Surgeon
Holdings Limited 458,935 570,655 840,837 8.6 2.2
Snagging and
finishing of
domestic and
commercial properties
Turner Topco
Limited (trading
as ATG Media) 1,529,075 1,539,830 828,610 3.8 2.1
Publisher and
online auction
platform operator
RDL Corporation
Limited 1,000,000 536,525 622,056 9.1 1.7
Recruitment consultants
for the pharmaceutical,
business intelligence
and IT industries
Blaze Signs Holdings
Limited 190,631 268,844 356,486 5.7 0.9
Manufacturer
and installer
of signs
Omega Diagnostics
plc(6) 200,028 300,015 258,347 1.5 0.8
In-vitro diagnostics
for food intolerance,
auto-immune diseases
and infectious
diseases
Vectair Holdings
Limited 24,732 75,717 123,079 2.1 0.3
Designer and
distributor of
washroom products
Racoon International
Holdings Limited 484,347 1,000 77,542 10.5 0.2
Supplier of hair
extensions, hair
care products
and training
Lightworks Software
Limited 9,329 13,530 24,858 4.2 0.1
Provider of software
for CAD and CAM
vendors
Newquay Helicopters
(2013) Limited
(in liquidation) 21,250 56,500 21,250 2.5 0.1
Helicopter service
operator
BG Training Limited 14,167 87,671 14,167 0.0 0.0
City-based provider
of specialist
technical training
Preservica Limited(7) - - - 4.6 0.0
Seller of proprietary
digital archiving
software
PXP Holdings
Limited (no longer
trading) 712,925 - - 4.4 0.0
Formerly a designer,
manufacturer
and supplier
of timber frames
for buildings
CB Imports Group
Limited (trading
as Country Baskets) 175,000 - - 5.8 0.0
Importer and
distributor of
artificial flowers,
floral sundries
and home décor
products
Watchgate Limited 1,000 - - 33.3 0.0
Holding company
-------------------------- ----------- ----------- ----------- ------- ----------
Disposals in
year
Tessella Holdings
Limited - 1,432,880 - 0.0 0.0
Consultancy
Westway Services
Holdings (2014)
Limited - 836,941 - 0.0 0.0
Installation,
service and maintenance
of air conditioning
systems
Higher Nature
Limited - 124,799 - 0.0 0.0
Mail order distributor
of vitamins and
natural medicines
-------------------------- ----------- ----------- ----------- ------- ----------
Sub-total- Mobeus
Equity Partners 37,645,690 24,706,022 38,455,537 99.2
Former Elderstreet
Private Equity
Limited Portfolio
Cashfac Limited 260,101 145,933 187,108 2.9 0.5
Provider of virtual
banking application
software
Sparesfinder
Limited 250,854 120,821 46,977 2.0 0.2
Supplier of industrial
spare parts on-line
Sift Limited 135,391 26,514 27,048 1.3 0.1
Developer of
business-to-business
internet communities
-------------------------- ----------- ----------- ----------- ------- ----------
Sub-total - Elderstreet
Private Equity 646,346 293,268 261,133 0.8
-------------------------- ----------- ----------- ----------- ------- ----------
Investment Adviser's
totals 38,292,036 24,999,290 38,716,670 100.0
(1) GBP1,095,500 and GBP1,134,000 was invested into Knighton
Management Limited on 31 March 2015 and Tovey Management Limited on
1 April 2015 respectively, both companies preparing to trade. Tovey
Management Limited acquired Knighton Management Limited and Access
IS on 2 October 2015. The Company also invested a further
GBP239,513 in Access IS Limited which took the form of a
non-qualifying loan and is included in the cost figure of
GBP2,469,013 above.
(2) A further GBP1,140,005 was invested into South West Services
Investment ("SWSI"), adding to its earlier investment of
GBP908,000. This enabled SWSI to acquire Media Business Insight
("MBI"). The Company has also advanced a non-qualifying loan of
GBP674,755 to MBI, which is included in the cost figure of
GBP2,722,760 above.
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
(3) On 31 July 2015, Leap New co Limited (trading as Ward Thomas
and Bishopsgate) acquired Aussie Man & Van Limited via a share
for share exchange plus a small amount of cash. The figure
represented the combined holding which was the position at 31
December 2015.
(4) GBP1,122,661 was invested into Duncary 16 Limited on 2 April
2015, a company preparing to trade. This enabled Duncary 16 to
acquire Jablite on 23 April 2015. Duncary 16 has subsequently
changed its name to Jablite Holdings Limited.
(5) GBP899,074 held in Vian Marketing, a company preparing to
trade, was used to acquire Tushingham Sails Limited. This resulted
in a net repayment to the Company of GBP234,926 from the original
investment made in Vian Marketing.
(6) Quoted on AIM.
(7) The Company realised its investment in Tessella Holdings
Limited in December 2015. In addition to the cash consideration
received, the Company also received a small shareholding in
Preservica Limited, a subsidiary of Tessella Holdings that was
demerged as part of the transaction. The Fair value of the holding
received was deemed to be zero at the date of the transaction and
therefore, the investment cost is zero.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report
and the Financial Statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
have elected to prepare the financial statements in accordance with
United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable law). Under company law
the Directors must not approve the Financial Statements unless they
are satisfied that they give a true and fair view of the state of
affairs of the Company and of the profit or loss for the Company
for that period.
In preparing these financial statements, the Directors are
required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether the financial statements have been prepared in
accordance with the United Kingdom
accounting standards, subject to any material departures
disclosed and explained in the financial statements;
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that
the Company will continue in business;
-- prepare a Strategic Report, Director's Report, Director's
Remuneration Report which comply with the
requirements of the Companies Act 2006.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Website publication
The Directors are responsible for ensuring the Annual Report and
the financial statements are made available on a website. Financial
statements are published on the Company's website in accordance
with legislation in the United Kingdom governing the preparation
and dissemination of financial statements, which may vary from
legislation in other jurisdictions. The maintenance and integrity
of the Company's website is the responsibility of the Directors.
The Directors' responsibility also extends to the ongoing integrity
of the financial statements contained therein.
Directors' responsibilities pursuant to Disclosure and
Transparency Rule 4 of the UK Listing Authority
The Directors confirm to the best of their knowledge that:
(a) the financial statements, which have been prepared in
accordance with UK Generally Accepted Accounting Practice give a
true and fair view of the assets, liabilities, financial position
and the profit of the Company.
(b) the Annual Report includes a fair review of the development
and performance of the business and the position of the Company,
together with a description of the principal risks and
uncertainties that it faces.
Having taken advice from the Audit Committee, the Board
considers the Annual Report and Accounts, taken as a whole, is
fair, balanced and understandable and that it provides the
information necessary for shareholders to assess the Company's
performance, business model and strategy.
Neither the Company nor the Directors accept any liability to
any person in relation to the Annual Report except to the extent
that such liability could arise under English law. Accordingly, any
liability to a person who has demonstrated reliance on any untrue
or misleading statement or omission shall be determined in
accordance with section 90A and schedule 10A of the Financial
Services and Markets Act 2000.
The names and functions of the Directors are stated in the
Annual Report.
For and on behalf of the Board:
Christopher Moore
Chairman
23 March 2016
NON STATUTORY ACCOUNTS
PRIMARY FINANCIAL STATEMENTS
Income Statement
for the year ended 31 December 2015
Year ended Year ended
31 December 2015 31 December 2014
Note
Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP
---------------------- ----- ---------- ---------- ------------ ---------- ---------- ------------
Unrealised
gains on
investments 8 - 1,094,287 1,094,287 - 1,123,572 1,123,572
Realised
gains on
investments 8 - 3,302,320 3,302,320 - 4,911,818 4,911,818
Income 3 2,202,056 - 2,202,056 2,415,923 - 2,415,923
Investment
Adviser's
fees 4a (303,725) (911,176) (1,214,901) (275,054) (825,163) (1,100,217)
Other expenses 4d (402,156) - (402,156) (380,120) - (380,120)
---------------------- ----- ---------- ---------- ------------ ---------- ---------- ------------
Profit
on ordinary
activities
before
taxation 1,496,175 3,485,431 4,981,606 1,760,749 5,210,227 6,970,976
Taxation
on ordinary
activities 5 (184,209) 184,209 - (169,152) 169,152 -
---------------------- ----- ---------- ---------- ------------ ---------- ---------- ------------
Profit
for the
year and
total comprehensive
income 1,311,966 3,669,640 4,981,606 1,591,597 5,379,379 6,970,976
---------------------- ----- ---------- ---------- ------------ ---------- ---------- ------------
Basic and
diluted
earnings
per ordinary
share 7 2.74p 7.67p 10.41p 3.91p 13.21p 17.12p
---------------------- ----- ---------- ---------- ------------ ---------- ---------- ------------
The revenue column of the Income Statement includes all income
and expenses. The Capital column accounts for the unrealised gains
and realised gains on investments and the proportion of the
Investment Adviser's fee charged to capital.
The total column is the Statement of Total Comprehensive Income
of the Company prepared in accordance with Financial Reporting
Standards ("FRS"). In order to better reflect the activities of a
VCT and in accordance with the Statement of Recommended Practice
("SORP") issued in November 2014 by the Association of Investment
Companies ("AIC"), supplementary information which analyses the
Income Statement between items of a revenue and capital nature has
been presented alongside the Income Statement. The revenue column
of profit attributable to equity shareholders is the measure the
Directors believe appropriate in assessing the Company's compliance
with certain requirements set out in Section 274 Income Tax Act
2007.
All the items in the above statement derive from continuing
operations of the Company. No operations were acquired or
discontinued in the year.
Balance Sheet
As at 31 December 2015
Note 31 December 31 December
2015 2014
GBP GBP
------------------------- ----- ------------ ------------
Fixed assets
Investments at
fair value 8 38,716,670 24,999,290
Monies held pending
investment 2,085,130 2,538,251
------------------------- ----- ------------ ------------
40,801,800 27,537,541
Current assets
Debtors and prepayments 561,950 244,103
Current investments 15,347,121 13,331,283
Cash at bank 573,591 9,445,843
------------------------- ----- ------------ ------------
16,482,662 23,021,229
Creditors: amounts
falling due within
one year (276,680) (267,733)
------------------------- ----- ------------ ------------
Net current assets 16,205,982 22,753,496
------------------------- ----- ------------ ------------
Net assets 57,007,782 50,291,037
------------------------- ----- ------------ ------------
Capital and reserves
Called up share
capital 483,562 425,434
Share premium
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
reserve 12,629,944 5,985,042
Capital redemption
reserve 6,827 5,143
Revaluation reserve 1,545,364 1,214,933
Special distributable
reserve 32,622,021 33,748,039
Realised capital
reserve 8,422,420 7,968,451
Revenue reserve 1,297,644 943,995
------------------------- ----- ------------ ------------
Equity shareholders'
funds 57,007,782 50,291,037
------------------------- ----- ------------ ------------
Basic and diluted
net asset value
per ordinary share 117.89p 118.21p
------------------------- ----- ------------ ------------
Statement of Changes in Equity
For the year ended 31 December 2015
Non-distributable Distributable
reserves reserves
Called
up Share Capital Special Realised Revenue
share premium redemption Revaluation distributable capital reserve
Notes capital reserve reserve reserve reserve reserve Total
(note (note (note
a) b) b)
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
At 1 January
2015 425,434 5,985,042 5,143 1,214,933 33,748,039 7,968,451 943,995 50,291,037
Comprehensive
income
for the
year
Profit
for the
year - - - 1,094,287 - 2,575,353 1,311,966 4,981,606
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Total
comprehensive
income
for the
year - - - 1,094,287 - 2,575,353 1,311,966 4,981,606
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Contributions
by and
distributions
to owners
Shares
issued
via Offer
for
Subscription 51,679 5,841,843 - - (26,070) - - 5,867,452
Dividends
re-invested
into new
shares 8,133 803,059 - - - - - 811,192
Shares
bought (note
back c) (1,684) - 1,684 - (168,734) - - (168,734)
Dividends
paid 6 - - - - - (3,816,454) (958,317) (4,774,771)
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Total
contributions
by and
distributions
to owners 58,128 6,644,902 1,684 - (194,804) (3,816,454) (958,317) 1,735,139
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Other
movements
Realised losses
transferred
to special
reserve (note
a below) - - - - (931,214) 931,214 - -
Realisation
of previously
unrealised
appreciation - - - (763,856) - 763,856 - -
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Total
other
movements - - - (763,856) (931,214) 1,695,070 - -
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
At 31
December
2015 483,562 12,629,944 6,827 1,545,364 32,622,021 8,422,420 1,297,644 57,007,782
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Note a: The Special distributable reserve provides
the Company with a reserve to absorb any existing
and future realised losses and, when considered by
the Board to be in the interests of shareholders,
to fund share buybacks and for other corporate purposes.
All of this reserve originates from funds raised
prior to 6 April 2014. The transfer of GBP931,214
to the special reserve from the realised capital
reserve above is the total of realised losses incurred
by the Company in the year.
Note b: The realised capital reserve and the revenue
reserve together comprise the Profit and Loss Account
of the Company.
Note c: During the year, the Company purchased 168,443
of its own shares at the prevailing market price
for a total cost of GBP168,734, which were subsequently
cancelled.
For the year ended 31 December 2014
Non-distributable Distributable
reserves reserves
Called
up Share Capital Special Realised Revenue
share premium redemption Revaluation distributable capital reserve
capital reserve reserve reserve reserve reserve Total
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2014 351,272 13,374,724 969,753 4,518,594 17,418,387 4,786,430 704,563 42,123,723
Comprehensive
income
for the
year
Profit
for the
year - - - 1,123,572 - 4,255,807 1,591,597 6,970,976
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Total
comprehensive
income
for the
year - - - 1,123,572 - 4,255,807 1,591,597 6,970,976
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Contributions
by and
distributions
to owners
Shares
issued
via Linked
Offer
for
Subscription 69,072 8,128,331 - - (3,488) - - 8,193,915
Dividends
re-invested
into new
shares 10,233 1,039,770 - - - - - 1,050,003
Shares
bought
back (5,143) - 5,143 - (538,384) - - (538,384)
Dividends
paid - - - - - (6,157,031) (1,352,165) (7,509,196)
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Total
contributions
by and
distributions
to owners 74,162 9,168,101 5,143 - (541,872) (6,157,031) (1,352,165) 1,196,338
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Other
movements
Cancellation
of the
share
premium
account - (16,557,783) (969,753) - 17,527,536 - - -
Realised
losses
transferred
to special
reserve - - - - (656,012) 656,012 - -
Realisation
of previously
unrealised
appreciation - - - (4,427,233) - 4,427,233 - -
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
Total
other
movements - (16,557,783) (969,753) (4,427,233) 16,871,524 5,083,245 - -
At 31
December
2014 425,434 5,985,042 5,143 1,214,933 33,748,039 7,968,451 943,995 50,291,037
--------------- ------ -------- ------------- ----------- ------------ -------------- ------------ ------------ ------------
The composition of each of these reserves is explained
below:
Called up share capital
The nominal value of shares originally issued increased
for subsequent share issues either via an Offer for
Subscription or Dividend Investment Scheme or reduced
due to shares bought back by the Company.
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
Share premium reserve
This reserve contains the excess of gross proceeds
less issue costs over the nominal value of shares
allotted under recent Offers for Subscription and
the Company's Dividend Investment Scheme.
Capital redemption reserve
The nominal value of shares bought back and cancelled
is held in this reserve, so that the company's capital
is maintained.
Revaluation reserve
Increases and decreases in the valuation of investments
held at the year-end are accounted for in this reserve,
except to the extent that the diminution is deemed
permanent.
In accordance with stating all investments at fair
value through profit and loss (as recorded in note
8 in the Annual Report), all such movements through
both revaluation and realised capital reserves are
shown within the Income Statement for the year.
Special distributable reserve
The cost of share buybacks is charged to this reserve.
In addition, any realised losses on the sale or impairment
of investments, and 75% of the Investment Adviser's
fee, and the related tax effect, are transferred
from the Profit and Loss Account reserve to this
reserve.
Realised capital reserve
The following are accounted for in this reserve:
-- Gains and losses on realisation of investments;
-- Permanent diminution in value of investments;
-- Transaction costs incurred in the acquisition
of investments; and
-- 75% of the Investment Adviser's fee and 100%
of any performance incentive fee payable, together
with the related tax effect to this reserve in accordance
with the policies.
-- Capital dividends paid.
Revenue reserve
Income and expenses that are revenue in nature are
accounted for in this reserve together with the related
tax effect, as well as dividend paid that are classified
as revenue in nature.
Statement of Cash Flows
for the year ended 31 December 2015
Year ended Year ended
31 December 31 December
2015 2014
Note GBP GBP
------------------------------- ----- ------------- ------------
Cash flows from operating
activities
Profit for the financial
year 4,981,606 6,970,976
Adjusted for:
Unrealised gains on
investments (1,094,287) (1,123,572)
Gains on realisations
of investments (3,302,320) (4,911,818)
(Increase)/decrease
in debtors (68,758) 117,165
Increase in creditors 8,948 73,063
Net cash inflow from
operating activities 525,189 1,125,814
------------------------------- ----- ------------- ------------
Cash flows from investing
activities
Sale of investments 7,239,803 14,017,378
Purchase of investments (16,809,665) (8,467,543)
Monies held pending
investment 453,120 (625,512)
------------------------------- ----- ------------- ------------
Net cash (outflow)/inflow
from investing activities (9,116,742) 4,924,323
Cash flows from financing
activities
Shares issued as part
of Offer for Subscription 5,867,452 8,193,915
Equity dividends paid 6 (3,963,579) (6,459,193)
Purchase of own shares (168,734) (538,384)
------------------------------- ----- ------------- ------------
Net cash inflow from
financing activities 1,735,139 1,196,338
Net (decrease)/increase
in cash and cash equivalents (6,856,414) 7,246,475
Cash and cash equivalents
at start of year 22,777,126 15,530,651
------------------------------- ----- ------------- ------------
Cash and cash equivalents
at end of year 15,920,712 22,777,126
Cash and cash equivalents
comprise:
Cash at bank and in
hand 573,591 9,445,843
Cash equivalents 15,347,121 13,331,283
NOTES TO THE ACCOUNTS
for the year ended 31 December 2015
1 Company Information
Mobeus Income and Growth 4 VCT plc is a public limited company
incorporated in England, registration number 3707697. The
registered office is 30 Haymarket, London, SW1Y 4EX.
2 Basis of preparation
A summary of the principal accounting policies, all of which
have been applied consistently throughout the year are set out next
to the related disclosure throughout the Notes to the Financial
Statements. All accounting policies are included within an outlined
box at the top of each relevant note.
These financial statements have been prepared in accordance with
applicable United Kingdom accounting standards, including Financial
Reporting Standard 102 ("FRS102"), with the Companies Act 2006 and
the 2014 Statement of Recommended practice, 'Financial Statements
of Investment Trust Companies and Venture Capital Trusts' ('the
SORP') issued by the Association of Investment Companies. The
Company has a number of financial instruments which are disclosed
under FRS102 s11/12 as shown in note 15 in the Annual Report.
This is the first year in which the financial statements have
been prepared under FRS102. There has been no material change in
the accounting policies and so there has been no restatement of
comparatives, other than in relation to monies held pending
investment and current investments.
3 Income
Dividends receivable on quoted equity shares
are brought into account on the ex-dividend
date. Dividends receivable on unquoted equity
shares are brought into account when the Company's
right to receive payment is established and
there is no reasonable doubt that payment will
be received.
Interest income on loan stock is accrued on
a daily basis. Provision is made against this
income where recovery is doubtful or where
it will not be received in the foreseeable
future. Where the loan stocks only require
interest or a redemption premium to be paid
on redemption, the interest and redemption
premium is recognised as income or capital
as appropriate once redemption is reasonably
certain.
When a redemption premium is designed to protect
the value of the instrument holder's investment
rather than reflect a commercial rate of revenue
return, the redemption premium is recognised
as capital. The treatment of redemption premiums
is analysed to consider if they are revenue
or capital in nature on a company by company
basis. Accordingly, the redemption premium
recognised in the year ended 31 December 2015
has been classified as capital and has been
included within gains on investments.
-----------------------------------------------------------
2015 2014
GBP GBP
Income from bank deposits 78,334 118,350
------------------------------------------------------ ---------- ----------
Income from investments
- from equities 61,752 456,510
- from overseas based OEICs 30,470 26,884
- from loan stock 2,031,331 1,797,666
- from interest on preference share dividend arrears 169 5,997
------------------------------------------------------ ---------- ----------
2,123,722 2,287,057
Other income - 10,516
------------------------------------------------------ ---------- ----------
Total income 2,202,056 2,415,923
------------------------------------------------------ ---------- ----------
Total income comprises
Dividends 92,222 483,394
Interest 2,109,834 1,922,013
Other income - 10,516
------------------------------------------------------ ---------- ----------
2,202,056 2,415,923
Income from investments comprises
Listed overseas securities 30,470 26,884
Unlisted UK securities 61,921 462,507
Loan stock interest 2,031,331 1,797,666
------------------------------------------------------ ---------- ----------
2,123,722 2,287,057
------------------------------------------------------ ---------- ----------
Total loan stock interest due but not recognised in the year was GBP184,887 (2014: GBP112,212).
4 Investment Adviser's fees and other expenses
All expenses are accounted for on an accruals
basis.
----------------------------------------------
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
a) Investment Adviser's fees
25% of the Investment Adviser's fees are charged
to the revenue column of the Income Statement,
while 75% is charged against the capital column
of the Income Statement. This is in line with
the Board's expected long-term split of returns
from the investment portfolio of the Company.
100% of any performance incentive fee payable
for the year is charged against the capital
column of the Income Statement, as it is based
upon the achievement of capital growth.
-------------------------------------------------
2015 2014
Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP
Mobeus Equity Partners LLP 303,725 911,176 1,214,901 275,054 825,163 1,100,217
======== ======== ========== ======== ======== ==========
Under the terms of a revised investment management agreement
dated 12 November 2010, Mobeus Equity Partners LLP ("Mobeus LLP")
(formerly Matrix Private Equity Partners LLP ("MPEP") provides
investment advisory, administrative and company secretarial
services to the Company, for a fee of 2% per annum of closing net
assets, calculated on a quarterly basis by reference to the net
assets at the end of the preceding quarter, plus a fixed fee of
GBP115,440 per annum, the latter being subject to indexation, if
applicable. In 2013, Mobeus agreed to waive such further increases
due to indexation, until otherwise agreed with the Board.
The Investment Adviser fee includes provision for a cap on
expenses excluding irrecoverable VAT and exceptional items set at
3.4% of closing net assets at the year-end. In accordance with the
investment management agreement, any excess expenses are borne by
the Investment Adviser. The excess expenses during the year
amounted to GBPnil (2014: GBPnil).
The Company is responsible for external costs such as legal and
accounting fees, incurred on transactions that do not proceed to
completion ("abort expenses") subject to the cap on total annual
expenses referred to above.
In line with common practice, Mobeus LLP retain the right to
charge arrangement and syndication fees and Directors' or
monitoring fees to companies in which the Company invests. The
Investment Adviser received fees totalling GBP361,416 (2014:
GBP341,973) during the year ended 31 December 2015, being
GBP210,253 (2014: GBP178,682) for arrangement fees, and GBP151,163
(2014: GBP163,291) for acting as non-executive directors on a
number of investee company boards. These fees attributable to MIG 4
VCT are based upon the investment allocation to MIG 4 VCT which
applied at the time of each investment. These figures are not part
of these financial statements.
b) Incentive fee agreement
Under the terms of a separate agreement dated 1 November 2006,
from the end of the accounting period ending on 31 January 2009 and
in each subsequent accounting period throughout the life of the
company, the Investment Adviser will be entitled to receive a
performance related incentive fee of 20% of the dividends paid in
excess of a "Target Rate" comprising firstly, an annual dividend
target of 6% of the net asset value per share at 5 April 2007
(indexed each year for RPI) and secondly a requirement that any
cumulative shortfalls below the 6 per cent hurdle must be made up
in later years. Payment of a fee is also conditional upon the
average Net Asset Value ("NAV") per share for each such year
equalling or exceeding Base NAV per share for the same year. The
performance fee will be payable annually. No incentive fee is
payable to date.
c) Offer for Subscription fees
2015 2014
GBPmillion GBPmillion
Funds raised across four Mobeus advised
VCTs 39.00 33.70
Of which funds raised by MIG 4 VCT 6.00 8.43
Offer costs at 3.25% of amounts subscribed GBP0.19* GBP0.27*
to MIG 4 VCT
*All costs associated with the Offer were met out of these fees,
excluding any payments to advisers facilitated under the terms of
the Offer.
d) Other expenses
Expenses are charged wholly to revenue, with
the exception of expenses incidental to the acquisition
or disposal of an investment, which are written
off to the capital column of the Income Statement
or deducted from the disposal proceeds as appropriate.
---------------------------------------------------------
2015 2014
GBP GBP
Directors' remuneration (including NIC of GBP9,327 (2014: GBP9,370)* 99,827 99,870
IFA trail commission 77,227 70,796
Broker's fees 12,000 12,000
Auditor's fees - Audit of Company 28,320 27,000
- audit related assurance services - note ii) 4,920 4,320
- tax compliance services - note ii) 6,345 3,000
Registrar's fees 45,154 43,743
Printing 34,196 37,247
Legal & professional fees 6,117 20,049
VCT monitoring fees 9,000 10,800
Directors' insurance 9,248 8,056
Listing and regulatory fees 39,132 40,832
Sundry 1,914 2,407
---------------------------------------------------------------------- ----------- ------------
Running costs 373,400 380,120
---------------------------------------------------------------------- ----------- ------------
Provision against loan interest receivable ( see note iii) 28,756 -
Other expenses 402,156 380,120
---------------------------------------------------------------------- ----------- ------------
Note i): See analysis in the Directors' Remuneration table in
the Report and Accounts, which excludes the NIC above. The key
management personnel are the three non-executive directors. The
Company has no employees.
Note ii): The Directors consider the Auditor was best placed to
provide the audit related services and tax compliance services
disclosed above. The Audit Committee reviews the nature and extent
of these services to ensure that audit independence is
maintained.
Note iii): Provision against loan interest receivable above of
GBP28,756 (2014:GBPnil), is a provision made against loan stock
interest recognised in previous years.
5 Taxation on profit on ordinary activities
The tax expense for the year comprises current
tax and is recognised in profit or loss. The
current income tax charge is calculated on the
basis of tax rates and laws that have been enacted
or substantively enacted by the reporting date.
Any tax relief obtained in respect of Investment
Adviser's fees allocated to capital is reflected
in the capital reserve - realised and a corresponding
amount is charged against revenue. The tax relief
is the amount by which corporation tax payable
is reduced as a result of these capital expenses.
Deferred tax 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 a right to pay less
tax in the future have occurred at the balance
sheet date. Timing differences are differences
between the Company's taxable profits and its
results as stated in the financial statements
that arise from the inclusion of gains and losses
in the tax assessments in periods different from
those in which they are recognised in the financial
statements.
Deferred tax is measured at the average tax rates
that are expected to apply in the years in which
the timing differences are expected to reverse
based on tax rates and laws that have been enacted
or substantively enacted at the balance sheet
date. Deferred tax is measured on a non-discounted
basis.
A deferred tax asset would be recognised only
to the extent that it is more likely than not
that future taxable profits will be available
against which the asset can be utilised.
--------------------------------------------------------------------
2015 2014
Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
a) Analysis of tax charge:
UK Corporation tax on profits for the year 184,209 (184,209) - 169,152 (169,152) -
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Total current tax charge 184,209 (184,209) - 169,152 (169,152) -
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Corporation tax is based on a rate of 20%
(2014: 20%)
b) Profit on ordinary activities before tax 1,496,175 3,485,431 4,981,606 1,760,749 5,210,227 6,970,976
Profit on ordinary activities multiplied by
company rate of corporation tax in the UK of
20%
(2014: 20%) 299,235 697,086 996,321 352,150 1,042,045 1,394,195
Effect of:
UK dividends not taxable (12,350) - (12,350) (91,302) - (91,302)
Unrealised gains not taxable - (218,857) (218,857) - (224,714) (224,714)
Realised gains not taxable - (660,464) (660,464) - (982,364) (982,364)
Marginal relief 1,974 (1,974) - 4,119 (4,119) -
Losses brought forward (104,650) - (104,650) (97,761) - (97,761)
Unrelieved expenditure - - - 1,946 - 1,946
Actual current tax charge 184,209 (184,209) - 169,152 (169,152) -
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Tax relief relating to Investment Adviser fees is allocated
between revenue and capital where such relief can be utilised.
No asset or liability has been recognised for deferred tax in
relation to capital gains or losses on revaluing investments as the
Company is exempt from corporation tax in relation to capital gains
or losses as a result of qualifying as a Venture Capital Trust.
There is no potential liability to deferred tax (2014: GBPnil).
There is an unrecognised deferred tax asset of GBP34,737 (2014:
GBP159,755).
6 Dividends paid and payable Dividends payable are recognised as distributions
in the financial statements when the Company's
liability to pay them has been established.
This liability is established for interim dividends
when they are paid, and for final dividends
when they are approved by the shareholders,
usually at the Company's annual general meeting.
A key judgement in applying the above accounting
policy is in determining the amount of minimum
income dividend to be paid in respect of a
year. The Company's status as a VCT means it
has to comply with Section 259 of the Income
Tax Act 2007, which requires that no more than
15% of the income from shares and securities
in a year can be retained from the revenue
available for distribution for the year.
-----------------------------------------------------
2015 2014
GBP GBP
Amounts recognised as distributions to equity holders in the
year:
Final income dividend for the year ended 31 December 2013 of
1.25 pence per ordinary share
paid 16 May 2014 - 514,726
Final capital dividend for the year ended 31 December 2013 of
2.75 pence per ordinary share
paid 16 May 2014 - 1,132,396
Interim income dividend for the year ended 31 December 2014
of 2.00 pence per ordinary share
paid 12 September 2014 - 837,439
Interim capital dividend for the year ended 31 December 2014
of 12.00 pence per ordinary share
paid 12 September 2014 - 5,024,635
Second interim income dividend for the year ended 31 December 476,355 -
2014 of 1.00 penny per ordinary
share paid 6 May 2015
Second interim capital dividend for the year ended 31 3,334,494 -
December 2014 of 7.00 pence per ordinary
share paid 6 May 2015
Interim income dividend for the year ended 31 December 2015 481,961 -
of 1.00 penny per ordinary share
paid 25 September 2015
Interim capital dividend for the year ended 31 December 2015 481,961 -
of 1.00 penny per ordinary share
paid 25 September 2015
-------------------------------------------------------------- ----------- -----------
4,774,771* 7,509,196*
-------------------------------------------------------------- ----------- -----------
* - GBP4,774,771 (2014: GBP7,509,196) disclosed above differs to that shown in the
Statement
of Cash Flows of GBP3,963,579 (2014: GBP6,459,193) due to GBP811,192 (2014:
GBP1,050,003)
of new shares issued as part of the DIS scheme.
Proposed distributions to equity holders after the year end:
Final income dividend for the year ended 31 December 2015 of
1.50 pence (2014: second interim
1.00 penny) per ordinary share 725,343 477,113
Final capital dividend for the year ended 31 December 2015 of
7.50 pence (2014: second interim
7.00 pence) per ordinary share 3,626,716 3,339,790
4,352,059 3,816,903
Any proposed final dividend is subject to approval by shareholders at the Annual General
Meeting and has not been included as a liability in these financial statements.
Set out below are the total income dividends payable in respect of the financial year, which
is the basis on which the requirements of section 274 of the Income Tax Act 2007 are considered.
2015 2014
Recognised income distributions in the financial statements for
the year
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
GBP GBP
Revenue available for distribution in the financial statements
for the year 1,311,966 1,591,597
---------------------------------------------------------------- ---------- ----------
Interim dividend for year ended 31 December 2015 of 1.00 penny
(2014: 2.00 pence) per ordinary
share 481,961 837,439
Final income dividend for the year ended 31 December 2015 of
1.50 pence (2014: second interim
1.00 penny) per ordinary share 725,343 477,113
---------------------------------------------------------------- ---------- ----------
Total income dividends 1,207,304 1,314,552
---------------------------------------------------------------- ---------- ----------
7 Basic and diluted earnings per share
2015 2014
GBP GBP
-------------------------------------------------------- ----------- -----------
Total earnings after taxation: 4,981,606 6,970,976
Basic and diluted earnings per share (note a) 10.41p 17.12p
-------------------------------------------------------- ----------- -----------
Net revenue from ordinary activities after taxation 1,311,966 1,591,597
Basic and diluted revenue return per share (note b) 2.74p 3.91p
-------------------------------------------------------- ----------- -----------
Net unrealised capital gains 1,094,287 1,123,572
Net realised capital gains 3,302,320 4,911,818
Capital expenses (net of taxation) (726,967) (656,011)
-------------------------------------------------------- ----------- -----------
Total capital return 3,669,640 5,379,379
Basic and diluted capital return per share (note c) 7.67p 13.21p
-------------------------------------------------------- ----------- -----------
Weighted average number of shares in issue in the year 47,857,465 40,720,836
Notes:
a) Basic earnings per share is total earnings after taxation divided by the weighted average
number of shares in issue.
b) Revenue earnings per share is the revenue return after taxation divided by the weighted
average number of shares in issue.
c) Capital earnings per share is the total capital profit after taxation divided by the weighted
average number of shares in issue.
d) There are no instruments that will increase the number of shares in issue in future. Accordingly,
the above figures currently represent both basic and diluted returns.
8. Investment at fair value
The most critical estimates, assumptions and judgments relate to the determination of the
carrying value of investments at "fair value through profit and loss" (FVTPL). All investments
held by the Company are classified as "fair value through profit and loss" ("FVTPL") and measured
in accordance with the International Private Equity and Venture Capital Valuation ("IPEVCV")
guidelines, as updated in December 2015. This classification is followed as the Company's
business is to invest in financial assets with a view to profiting from their total return
in the form of capital growth and income.
For investments actively traded in organised financial markets, fair value is generally determined
by reference to Stock Exchange market quoted bid prices at the close of business on the balance
sheet date. Purchases and sales of quoted investments are recognised on the trade date where
a contract of sale exists whose terms require delivery within a time frame determined by the
relevant market. Purchases and sales of unlisted investments are recognised when the contract
for acquisition or sale becomes unconditional.
Unquoted investments are stated at fair value by the Directors in accordance with the following
rules, which are consistent with the IPEVCV guidelines:
All investments are held at the price of a recent investment for an appropriate period where
there is considered to have been no change in fair value. Where such a basis is no longer
considered appropriate, each investment is considered as a whole on a 'unit of account' basis,
alongside consideration of:
(i) Where a value is indicated by a material arms-length transaction by an independent third
party in the shares of a company, this value will be used.
(ii) In the absence of i), and depending upon both the subsequent trading performance and
investment structure of an investee company, the valuation basis will usually move to either:-
a) an earnings multiple basis. The shares may be valued by applying a suitable price-earnings
ratio to that company's historic, current or forecast post-tax earnings before interest and
amortisation (the ratio used being based on a comparable sector but the resulting value being
adjusted to reflect points of difference identified by the Investment Adviser compared to
the sector including, inter alia, a lack of marketability).
or:-
b) where a company's underperformance against plan indicates a diminution in the value of
the investment, provision against cost is made, as appropriate.
(iii) Premiums that will be received upon repayment of loan stock investments are accrued
at fair value when the Company receives the right to the premium and when considered recoverable.
(iv) Where an earnings multiple or cost less impairment basis is not appropriate and overriding
factors apply, discounted cash flow or net asset valuation bases may be applied.
A key judgement made in applying the above accounting policy relates to investments that are
permanently impaired. Where the value of an investment has fallen permanently below cost,
the loss is treated as a permanent impairment and as a realised loss, even though the investment
is still held. The Board assesses the portfolio for such investments and, after agreement
with the Investment Adviser, will agree the values that represent the extent to which an investment
loss has become realised. This is based upon an assessment of objective evidence of that
investment's
future prospects, to determine whether there is potential for the investment to recover in
value. None were identified in the year.
----------------------------------------------------------------------------------------------------------------
Traded on Unquoted Unquoted Loan stock Total
AIM equity preference
shares shares
GBP GBP GBP GBP GBP
Cost at 31
December 2014 200,028 7,070,909 26,006 17,758,246 25,055,189
Unrealised
gains/(losses)
at 31 December
2014 99,987 (1,228,385) 186,940 2,156,391 1,214,933
Permanent
impairment of
cost of
investments as
at 31 December
2014 - (701,697) (1,649) (567,486) (1,270,832)
------------------ ------------ ------------ ------------ ------------ ------------
Valuation at 31
December 2014 300,015 5,140,827 211,297 19,347,151 24,999,290
Purchases at cost - 5,584,329 227 11,225,207 16,809,763
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 13:17 ET (17:17 GMT)
Sale proceeds - (3,831,770) (130,077) (3,527,143) (7,488,990)
Reclassification
at value - (181,141) 224 180,917 -
Net realised
gains/(losses)
in the year - 3,045,066 (37,335) 294,589 3,302,320
Unrealised
(losses)/gains
in the year
(note a) (41,668) 1,505,346 (31,285) (338,106) 1,094,287
------------------ ------------ ------------ ------------ ------------ ------------
Valuation at 31
December 2015 258,347 11,262,657 13,051 27,182,615 38,716,670
------------------ ------------ ------------ ------------ ------------ ------------
Cost at 31
December 2015 200,028 11,827,294 15,144 26,249,570 38,292,036
Unrealised
gains/(losses)
at 31 December
2015 58,319 (13,042) (444) 1,500,531 1,545,364
Permanent
impairment of
the cost of
investments as
at 31 December
2015 (note b) - (551,595) (1,649) (567,486) (1,120,730)
------------------ ------------ ------------ ------------ ------------ ------------
Valuation at 31
December 2015 258,347 11,262,657 13,051 27,182,615 38,716,670
------------------ ------------ ------------ ------------ ------------ ------------
Details of investment transactions such as disposal proceeds,
valuation movements cost and carrying value at the end of previous
year are contained in the Investment Portfolio Summary.
Note a) The major components of the increase in unrealised
valuations of GBP1,094,287 in the year were increases of GBP752,934
in Virgin Wines Holding Company Limited, GBP680,303 in Jablite
Holdings Limited, and GBP426,881 in Tharstern Group Limited. These
gains were partly offset by falls of GBP711,220 in Turner Topco
Limited (trading as ATG Media), GBP440,153 in Media Business
Insight Holdings Limited and GBP289,683 in Gro-Group Holdings
Limited.
The decrease in unrealised valuations of the loan stock
investments above reflects the changes in the entitlement to loan
premiums, and/or in the underlying enterprise value of the investee
company. The increase does not arise from assessments of credit
risk or market risk upon these instruments.
Note b) During the year, permanent impairments of the cost of
investments have reduced from GBP1,270,832 to GBP1,120,730. The
reduction of GBP150,102 is due to an investee company being
dissolved in the year, which removes the cost and related
impairment of this investment from these accounts.
Reconciliation of investment transactions to Statement of Cash
Flows
The cash flow from investment proceeds shown above of
GBP7,488,990 differs from the sale proceeds shown in the Statement
of Cash flows of GBP7,239,803, by GBP249,187. This is due to
GBP303,221 of deferred cash sale proceeds not received until after
the year-end, against which GBP56,034 of deferred cash sale
proceeds were received during the year relating to a prior
year.
Purchases above of GBP16,809,763 are greater than that shown in
the Statement of Cash Flows of GBP16,809,665 by GBP98. This relates
to the purchase of shares via the exercising of options in an
investee company, which completed in the year.
9 Annual Report
The Annual Report for the year ended 31 December 2015 will
shortly be made available on the Company's website:
www.mig4vct.co.uk and shareholders will be notified of this by
email or post or sent a hard copy in the post in accordance with
their instructions. Copies will be available thereafter to members
of the public from the Company's registered office.
10 Annual General Meeting
The Annual General Meeting of the Company will be held at 12
noon on Friday, 13 May 2016 at 33 St James's Square, London, SW1Y
4JS.
Contact details for further enquiries:
Robert Brittain of Mobeus Equity Partners LLP (the Company
Secretary) on 020 7024 7600 or by e-mail to
mig4@mobeusequity.co.uk.
Mark Wignall or Mike Walker at Mobeus Equity Partners LLP (the
Investment Adviser) on 020 7024 7600 or by e-mail to
info@mobeusequity.co.uk.
DISCLAIMER
Neither the contents 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACSJJMFTMBMTBAF
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