TIDMMIG5
RNS Number : 9734G
Maven Income and Growth VCT 5 PLC
24 July 2023
Maven Income and Growth VCT 5 PLC
Interim Results for the Six Months Ended 31 May 2023
(Unaudited)
The Directors announce the Chairman's Statement, Investment
Manager's Interim Review and the unaudited Financial Statements for
the six months ended 31 May 2023.
Highlights
-- NAV total return at 31 May 2023 of 84.33p per share
-- NAV at 31 May 2023 of 34.18p per share, after payment of the
2022 final dividend of 0.50p per share on 5 May 2023
-- Interim dividend of 0.75p per share paid on 21 July 2023
-- Offer for Subscription closed, raising GBP7.02 million, with
a further fund raising to be launched in Autumn 2023
Overview
On behalf of your Board, I am pleased to present the results for
the six months to 31 May 2023 where, against a backdrop of high
inflation and rising interest rates, your Company has delivered
resilient performance. The slight reduction in NAV total return,
compared to the position at the previous year end, largely reflects
the subdued conditions in AIM where, despite encouraging newsflow
and positive market updates from most AIM quoted investee
companies, share prices have continued to be weak, which has
impacted the value of your Company's AIM quoted portfolio.
Conversely, the performance of the unlisted portfolio has generally
been encouraging, particularly across the early stage investments,
where many companies have continued to deliver revenue growth and
achieve commercial milestones. Your Board remains committed to
making regular Shareholder distributions and was pleased to declare
an interim dividend of 0.75p per share, which was paid on 21 July
2023.
Whilst the outlook for the UK economy has slightly improved,
inflation remains stubbornly high and interest rates continue to
rise, meaning that the prevailing economic conditions continue to
present challenges for many businesses and consumers. Despite these
adverse economic factors, the Directors are pleased to report that
your Company has delivered robust performance. This reflects the
strength of the underlying portfolio that has been carefully
constructed over recent years and provides exposure to a wide range
of high quality, growth companies, many of which operate in
defensive or counter cyclical sectors, which have continued to grow
despite the macroeconomic challenges. It is worthwhile noting that,
across the portfolio, the level of external debt remains low and
there is limited direct exposure to consumer facing sectors, which
has provided a degree of insulation against the inflationary
pressures. The Board and the Manager believe that the underlying
growth prospects for the majority of companies within the portfolio
remain positive and that your Company is well positioned to make
further progress in line with its long term investment
objective.
During the reporting period, the private company portfolio has
generally performed well, with most companies continuing to make
commercial progress and achieve their business plans. Your Board is
encouraged by the progress of the early stage portfolio, where a
number of companies are achieving scale and demonstrating their
ability to create significant value. In certain cases, this has
warranted uplifts to valuations to reflect the sustained progress
that has been achieved.
Over recent years, your Company has been steadily reducing its
exposure to AIM, as part of the strategic objective to rebalance
the portfolio towards private company investments. Following the
realisation of a large holding in the prior year, the exposure to
AIM has now materially reduced and accounts for 7.2% of net assets.
During the reporting period, the performance of AIM continued to be
muted. Although some listed markets have experienced a recovery
during the current year, investor sentiment towards AIM continues
to be subdued and there has been very limited IPO and new share
issuance activity to help stimulate demand. As a result of these
market conditions, the value of your Company's AIM quoted portfolio
has declined. For the majority of holdings, the share price
reductions reflect the reduced appetite for investment in smaller,
earlier stage growth businesses, with genuine progress and positive
news effectively being disregarded. The Board and the Manager
continue to believe that selective exposure to AIM offers scope to
broaden the investee company portfolio, as well as providing the
ability to generate early liquidity if share prices perform well.
The Manager will, however, remain cautious on any new AIM
investments until there is clear evidence of a recovery in this
market and an improvement in the quality and quantity of companies
seeking VCT funding.
In May 2023, your Company closed its most recent Offer for
Subscription, raising a total of GBP7.02 million across the 2022/23
and 2023/24 tax years. This additional capital will enable your
Company to progress the investment strategy that has been in place
for a number of years and which has the core objective of building
a large and sectorally diversified portfolio of high growth private
and AIM quoted companies that are capable of achieving scale and
generating a capital gain on exit. During the first half of the
year, two new private companies were added to the portfolio. Your
Board is aware of the healthy pipeline of opportunities that the
Manager is currently reviewing, and it is anticipated that there
will be a good level of new investment in the second half of the
year.
Shareholders will find full details of the key portfolio
developments, including the new investments that have been
completed, in the Investment Manager's Review in the Interim
Report.
Liquidity Management
As Shareholders will be aware from recent Annual and Interim
Reports, your Company maintains a proactive approach to liquidity
management, with the objective of generating income from cash
resources held prior to investment in VCT qualifying companies.
This strategy also helps to satisfy the criteria of the Nature of
Income condition, which is a mandatory requirement of the VCT
legislation where not less than 70% of a VCT's income must be
derived from shares or securities. To meet this requirement, the
Board had previously approved the construction of a focused
portfolio of permitted, non-qualifying holdings in carefully
selected investment trusts with strong fundamentals and attractive
income characteristics. The recent upward trend in interest rates
has, however, required the Board and the Manager to revise the
approach to funds held prior to investment. Following a whole of
market review, the Manager has selected a number of leading money
market funds and a portfolio of investment trusts that will allow
your Company to maximise the income receivable on residual cash
held prior to investment, whilst also ensuring compliance with the
Nature of Income condition. During the reporting period, several
new investments were completed in support of the revised liquidity
management strategy, and details can be found in the Investments
table in the Interim Report.
Interim Dividend
In respect of the year ending 30 November 2023, an interim
dividend of 0.75p per Ordinary Share was paid on 21 July 2023 to
Shareholders on the register at 23 June 2023. Since the Company's
launch, and after receipt of this latest dividend, 50.90p per share
has been distributed in tax free dividends. It should be noted that
the payment of a dividend reduces the NAV of the Company by the
total cost of the distribution.
Dividend Policy
Decisions on distributions take into consideration a number of
factors, including the realisation of capital gains, the adequacy
of distributable reserves, the availability of surplus revenue and
the VCT qualifying level, all of which are kept under close and
regular review.
The Board and the Manager recognise the importance of tax free
distributions to Shareholders and, subject to the considerations
outlined above, will seek, as a guide, to pay an annual dividend
that represents 5% of the NAV per Ordinary Share at the immediately
preceding year end.
The Directors would like to remind Shareholders that, as the
portfolio continues to expand and a greater proportion of holdings
are in younger companies with growth potential, the timing of
distributions will be more closely linked to realisation activity,
whilst also reflecting the Company's requirement to maintain its
VCT qualifying level. If larger distributions are required as a
consequence of significant exits, this will result in a
corresponding reduction in NAV per share. However, the Board and
the Manager consider this to be a tax efficient means of returning
value to Shareholders, whilst ensuring ongoing compliance with the
VCT legislation.
Dividend Investment Scheme (DIS)
Your Company operates a DIS, through which Shareholders can, at
any time, elect to have their future dividend payments utilised to
subscribe for new Ordinary Shares issued by the Company under the
standing authority requested from Shareholders at Annual General
Meetings. Shares issued under the DIS should qualify for VCT tax
relief applicable for the tax year in which they are allotted,
subject to an individual Shareholder's particular
circumstances.
Shareholders can elect to participate in the DIS in respect of
future dividends by completing a DIS mandate form and returning it
to the Registrar (City Partnership). The mandate form, terms &
conditions and full details of the scheme (including tax
considerations) are available from the Company's webpage at:
mavencp.com/migvct5. Election to participate in the DIS can also be
made through the online investor hub:
maven-cp.cityhub.uk.com/login.
If a Shareholder is in any doubt about the merits of
participating in the DIS, or their own tax status, they should seek
advice from a suitably qualified adviser.
Offer for Subscription
On 7 October 2022, your Company, alongside Maven Income and
Growth VCT PLC, Maven Income and Growth VCT 3 PLC and Maven Income
and Growth VCT 4 PLC, launched Offers for Subscription for up to
GBP30 million in aggregate, with over-allotment facilities for up
to GBP10 million in aggregate. On 26 May 2023, the Offers closed
with your Company having raised a total of GBP7.02 million across
the 2022/23 and 2023/24 tax years.
With respect to the 2022/23 tax year, an allotment of 9,705,619
new Ordinary Shares completed on 8 February 2023, with a further
allotment of 1,005,373 new Ordinary Shares on 3 March 2023, and a
final allotment of 6,427,303 new Ordinary Shares on 5 April 2023.
An allotment of 2,429,067 new Ordinary Shares for the 2023/24 tax
year took place on 2 June 2023.
The Directors are confident that Maven's regional office network
will continue to source and complete attractive investments in VCT
qualifying companies across a range of sectors, and the additional
liquidity provided by the fundraising will facilitate further
expansion and development of the portfolio in line with the
investment strategy. Furthermore, the funds raised will allow your
Company to maintain its share buy-back policy, whilst also
spreading costs over a wider asset base in line with the objective
of maintaining a competitive total expense ratio for the benefit of
all Shareholders.
Further to the announcement of 6 July 2023, the Directors have
elected to launch a new Offer in Autumn 2023, which will run
alongside Offers by the other Maven managed VCTs. Full details of
the Offers will be included in the Prospectus, which is expected to
be published in Autumn 2023.
Share Buy-backs
Shareholders will be aware that a primary objective for the
Board is to ensure that the Company retains sufficient liquidity
for making investments in line with its stated policy, and for the
continued payment of dividends. However, the Directors also
acknowledge the need to maintain an orderly market in the Company's
shares and have, therefore, delegated authority to the Manager for
the Company to buy back its own shares in the secondary market, for
cancellation or to be held in treasury, subject always to such
transactions being in the best interests of Shareholders.
It is intended that the Company will seek to buy back shares
with a view to maintaining a share price that is at a discount of
approximately 5% to the latest published NAV per share. Any
purchase of the Company's own shares will be subject to market
conditions, available liquidity and the maintenance of the
Company's VCT qualifying status and, when appropriate, will also
take into account any period when the shares are trading
ex-dividend.
Shareholders should note that neither the Company nor the
Manager can execute a direct transaction in the Company's shares.
Any instruction to buy or sell shares on the secondary market must
be directed through a stockbroker, in which case a Shareholder or
their broker can contact the Company's Broker, Shore Capital
Stockbrokers on 020 7647 8132, to discuss a transaction. It should,
however, be noted that such transactions cannot take place whilst
the Company is in a closed period, which is the time from the end
of a reporting period until the announcement of the relevant
results or the release of an unaudited NAV. A closed period may
also be introduced if the Directors and Manager are in possession
of price sensitive information.
During the period under review, 720,000 shares were bought back
at a total cost of GBP240,265.
Principal and Emerging Risks and Uncertainties
The principal and emerging risks and uncertainties facing the
Company were set out in full in the Strategic Report contained
within the 2022 Annual Report, and are the risks associated with
investment in small and medium sized unlisted and AIM/AQSE quoted
companies which, by their nature, carry a higher level of risk and
are subject to lower liquidity than investments in larger quoted
companies. The valuation of investee companies may be affected by
economic conditions, the credit environment and other risks
including legislation, regulation, adherence to VCT qualifying
rules and the effectiveness of the internal controls operated by
the Company and the Manager. These risks and procedures are
reviewed regularly by the Risk Committee and reported to your
Board. The Board has confirmed that all tests, including the
criteria for VCT qualifying status, continue to be monitored and
met.
The invasion of Ukraine by Russia was added to the Risk Register
as an emerging risk during a previous period, as the Directors were
not only aware of the heightened cyber security risk but were
mindful of the impact that any change in the underlying economic
conditions could have on the valuation of investment companies.
These included fluctuating interest rates, increased fuel and
energy costs, and the availability of bank finance, all of which
could be impacted during times of geopolitical uncertainty and
volatile markets. The Board and the Manager continue to monitor the
impact of the conflict, and wider market conditions, on portfolio
companies.
Regulatory Update
During the period under review, there were no further amendments
to the rules governing VCTs. However, Shareholders may be aware
that, as approved by the European Commission in 2015, the VCT
scheme included a "sunset" clause, which provided that, unless the
legislation was renewed by an HM Treasury order, income tax relief
would no longer be available on subscriptions for new shares in
VCTs made on or after 6 April 2025. There has been a considerable
level of activity by industry representatives such as the Venture
Capital Trust Association (VCTA), of which the Manager is an active
member, and The Association of Investment Companies (AIC), of which
the Company is a member, to demonstrate the important role of VCT
investment in supporting SMEs across the country and stimulating
economic growth and regional employment. The Board and the Manager
welcomed the announcement by the UK Government in its Autumn 2022
budget statement of an intention to extend the income tax relief
available on new VCT shares beyond 2025. This commitment was
reaffirmed in the Spring 2023 budget, and the Manager remains
involved in discussions regarding the process for implementing this
extension.
Consistent with industry best practice, the Board and the
Manager continue to apply the International Private Equity and
Venture Capital Valuation (IPEV) Guidelines (Valuation Guidelines)
as the central methodology for all private company valuations. The
Valuation Guidelines are the prevailing framework for fair value
information in the private equity and venture capital industry and
the Directors and the Manager continue to adhere to the Valuation
Guidelines in assessing all private company holdings.
Environmental, Social and Governance (ESG) Considerations
The Board and the Manager recognise the importance of ESG
considerations. Whilst your Company's investment policy does not
incorporate specific ESG objectives, and investee companies are not
required to meet any particular targets, Maven continues to develop
its ESG framework and oversight capabilities as part of its
investment approach. Early stage ESG due diligence is now a
standard part of the pre-investment decision making process and is
a core component within the selection criteria, thereby ensuring
that all ESG risks and opportunities are fully discussed prior to
an investment completing. During the period under review, the
Manager has invested additional resource into its ESG capabilities
in recognition of the growing importance of this area and the
requirement to have detailed monitoring across the portfolio. A
number of investee companies are already highly focused on the
environment or making improvements to society and local communities
and have set themselves specific ESG related goals. Where this is
not the case, the Manager is able to support and advise on the
value of improving these metrics and can help portfolio companies
by sharing best practice.
The ESG regulatory landscape is evolving, and the Manager
provides the Board with regular updates on the latest developments.
A relevant regulation is the Task Force on Climate-related
Financial Disclosures (TCFD) on which neither the Company nor the
Manager are required to report. However, the Board and the Manager
acknowledge the aims and importance of the TCFD and, therefore,
reporting in line with the TCFD is an objective of the Manager as
part of its approach to ESG.
The Manager continues to be an active signatory to the UN
Principles for Responsible Investment (UNPRI) and is preparing its
first UNPRI report to demonstrate its ESG capabilities and
commitment to those principles. Additionally, the Manager is a
signatory to the Investing in Women Code, which aims to reduce
barriers to tools, resources and finance for UK based female
entrepreneurs.
Your Company has a number of investments in companies with
strong ESG credentials that are achieving growth in expanding
markets. The Manager is committed to maintaining a responsible
approach to new and existing investments.
Board Constitution
The Directors regularly discuss Board composition and recognise
the importance of succession planning. Further to recent
discussions, it has been agreed that one of the Directors will not
stand for re-election at the 2024 AGM and a process for identifying
and appointing a new Non-executive Director is well progressed.
Shareholders will be advised of the agreed changes to the
composition of the Board in the coming months.
Outlook
Despite the current well publicised economic challenges, the UK
remains at the forefront of global technological innovation, with a
large number of emerging younger companies seeking capital to
achieve their growth ambitions. In recent years, the Manager has
demonstrated an ability to construct a large and sectorally diverse
portfolio of predominantly private company investments and, based
on the current pipeline, it is anticipated that this will continue
to expand during the second half of 2023. Although exit activity
has slowed in the last 12 months, this tends to be a cyclical
market dynamic and, at the time of writing, there are signs of
improving M&A activity from both trade and private equity
buyers.
Your Board, therefore, remains confident that your Company is
well placed to deliver on its investment objective, including the
payment of regular distributions to Shareholders in support of the
target annual dividend yield of 5%.
Graham Miller
Chairman
24 July 2023
Summary Of Investment Changes
For The Six Month Period Ended 31 May 2023
Valuation Valuation
30 November 2022 31 May 2023
---------------- ---------------
Net investment/ Appreciation/
(disinvestment) (depreciation)
GBP'000 % GBP'000 GBP'000 GBP'000 %
------------------------ ---------- ------- ---------------- --------------- -------- -----
Unlisted investments
Equities 32,363 51.8 2,309 344 35,016 53.0
Loan stocks 4,912 7.9 1,845 (221) 6,536 9.9
======================== ========== ======= ================ =============== ======== =====
37,275 59.7 4,154 123 41,552 62.9
AIM/AQSE investments(1)
Equities 5,815 9.4 - (1,080) 4,735 7.2
Listed investments(2)
OEICs - - 3,000 (15) 2,985 4.5
Money market funds - - 6,003 - 6,003 9.1
Investment trusts - - 3,678 14 3,692 5.6
======================== ========== ======= ================ =============== ======== =====
Total Portfolio 43,090 69.1 16,835 (958) 58,967 89.3
Cash 19,303 30.9 (12,646) - 6,657 10.1
Other assets 58 - 329 - 387 0.6
======================== ========== ======= ================ =============== ======== =====
Net assets 62,451 100.0 4,518 (958) 66,011 100.0
======================== ========== ======= ================ =============== ======== =====
Ordinary Shares in
issue 176,391,734 193,101,989
Net asset value (NAV)
per Ordinary Share 35.40p 34.18p
Mid-market share
price 33.00p 33.00p
Discount to NAV 6.78% 3.47%
(1) Shares traded on the Alternative Investment Market (AIM) and the Aquis Stock Exchange (AQSE).
(2) These holdings represent the liquidity management portfolio,
which has been constructed from a range of carefully selected,
permitted non-qualifying holdings in investment trusts, open-ended
investment companies (OEICs) and money market funds.
Investment Manager's Interim Review
-- Two new VCT qualifying private company holdings added to the portfolio
-- Follow on funding provided to 10 unlisted portfolio companies
Overview
During the first half of the financial year, the macroeconomic
environment remained challenging and growth prospects continue to
be suppressed by inflationary pressures and rising interest rates.
Against this backdrop, it is encouraging to report on the further
progress that has been achieved by your Company. After a sustained
period of investment, the portfolio of investee companies has
increased in size and scale and now comprises of over 100 private
and AIM quoted companies that operate in high growth sectors such
as cyber security, data analytics, healthcare, and
Software-as-a-Service (SaaS), where growth has been maintained
despite the unsettled conditions in the wider market.
Following the success of the recent fundraising, your Company
has good levels of liquidity to support the further expansion and
development of the portfolio through the completion of new
investments and the provision of follow-on funding to support those
companies that are achieving commercial targets and require
additional capital to fully scale before progressing to an exit.
During the period, two new private companies were added to the
portfolio, both of which provide disruptive software solutions and
operate in attractive growth markets. Maven will generally only
invest in companies that can demonstrate meaningful commercial
traction and the potential for further strong revenue growth. This
is often measured in terms of contracted annual recurring revenue
(ARR), which provides a degree of visibility on the growth
trajectory for each company. Maven's regional network of investment
executives continues to review a healthy pipeline of opportunities
across a wide range of sectors and, at the time of writing, there
are a number of potential investments which are at various stages
of due diligence and legal contract. Based on this pipeline, it is
anticipated that there will be a good rate of new investment during
the second half of the financial year.
Your Company continues to follow a strategy focused on
constructing a large and sectorally diversified portfolio of
dynamic and entrepreneurial private and AIM quoted companies that
operate in defensive or counter cyclical markets where growth is
less dependent on the conditions in the wider economy. Most
companies within the unlisted portfolio have continued to make
positive progress, with some of the more mature holdings now
trading ahead of pre-pandemic levels. In the earlier stage
portfolio, the majority of companies are meeting their commercial
milestones, increasing ARR and achieving further scale. Where there
has been sustained positive performance, valuations have been
uplifted, however, the impact of improved revenues has been
curtailed by the well-publicised reduction in valuation multiples
across public and private markets, particularly in the technology
sector.
During the period under review, AIM has continued to be affected
by poor investor sentiment towards smaller companies, particularly
those that are growth focused. Fundraising activity by AIM
companies, and IPOs, has remained at unusually low levels and when
companies have been able to raise capital through a secondary
offer, many have done so at a discount to the prevailing share
price. These subdued market conditions have affected share prices
across your Company's AIM quoted portfolio where, in many cases,
negative sentiment has continued to outweigh positive newsflow and
robust business fundamentals. Whilst the Manager continues to
believe that exposure to AIM offers a balanced approach to long
term portfolio construction, and the ability to generate early
liquidity if companies perform well, the Manager will remain
cautious on any new investments until there is clear evidence of a
recovery in this market.
The Manager maintains an active approach to portfolio
management, with a view to supporting investee companies throughout
the period of ownership. The Maven appointed board representative
works closely with each unlisted portfolio company that is
considering, or is engaged in, a sale process, helping to identify
the most suitable corporate finance advisor and potential acquirers
that may be willing to pay a premium or strategic price for the
business. Whilst there have been no material realisations during
the reporting period, there remains a good level of external
interest in a number of portfolio companies and, based on historic
trends, the Manager is optimistic that M&A activity will resume
when economic conditions stabilise.
Portfolio Developments
Private Company Holdings
Integrated drug discovery services provider BioAscent Discovery
continues to make strong progress and has consistently achieved
double digit annual revenue growth in each of the four years since
your Company first invested. To maintain this momentum, BioAscent
is focused on expanding its range of services and the near term
objective is to move into complementary areas such as custom
protein production, immune-oncology and further translational
assays. As part of the long term growth strategy, and to ensure
that the business is able to meet the requirements of its global
customer base, BioAscent is in advanced discussions to achieve a
significant increase in laboratory and office space, whilst
remaining at a single location in Scotland. This additional space
will enable the company to increase its market presence by making
the drug discovery process more efficient, which should help it
attract more clients and achieve further scale.
Graduate recruitment specialist Bright Network continues to make
positive progress, with revenues now in excess of GBP11 million and
over 900,000 active members. Its digital solution enables leading
employers to identify, reach and recruit high quality graduates and
young professionals, and it has established a leading market
position. Working with over 300 partner firms such as Amazon,
Bloomberg, Google and Vodafone, it offers a comprehensive range of
services, including advice and support to assist its members in
securing their first job or internship, as well as providing access
to a range of in-person networking events. The business is
committed to serving a diverse range of applicants and it is
encouraging to note that 79% of the membership base are state
educated, 55% are female and 40% are from first generation
university households. During 2021, the business launched its
Technology Academy, which seeks to address the digital skills
shortage by providing high performing graduates with an intensive
software development training programme, and then deploying them in
client organisations. The Technology Academy has gained good
commercial traction and already has consultants deployed with
Lloyds Bank and Marks and Spencer. It was also recently named
Learning Solution of the Year at the 2022 Tiara Talent Tech Star
Awards, which recognise excellence in the recruitment and talent
acquisition industry.
Following a challenging period during the pandemic, when global
electronic component shortages and supply chain disruption impacted
order fulfilment capabilities, specialist manufacturer CB
Technology has experienced a good recovery, with sales now back to
pre-pandemic levels. Over recent years, the strategy to diversify
the customer base away from a reliance on the oil & gas sector
has been successful, with new clients secured in sectors such as
communication, instrumentation and medical technology, where demand
has remained resilient. To support future growth, the business
continues to make strategic investments to ensure that it has the
necessary infrastructure in place to best serve its clients. As
part of this initiative, it is currently implementing a new
enterprise resource planning (ERP) system, which will help to
improve operational efficiencies. With a strong orderbook, the
prospects for the year ahead are positive.
Over recent years, cybercrime has become an increasing threat to
everyday business activities, with most companies and organisations
recognising the need to implement robust defences. Against this
backdrop, cyber security specialist CYSIAM has made good progress.
The business, which provides a 24/7 managed detection and response
service, aims to reduce system security breaches and stop
ransomware attacks and is a preferred partner to public sector
organisations in the UK. The team at CYSIAM are experts in their
field, with a background in military intelligence, law enforcement
and national security, which has also enabled the business to
launch a consultancy arm that is gaining commercial traction. The
consultants work with clients to help them understand their
security position and build appropriate cyber resilience. CYSIAM
has achieved good growth in the year to date and, with a good
pipeline of opportunities, the outlook is encouraging.
Following changes to the senior leadership team and the
appointment of a new CEO, data transfer specialist DiffusionData
has delivered strong growth, with ARR nearly doubling since your
Company first invested in 2020. The business, which provides a
market leading platform to improve the speed, security and
efficiency of critical data transfer, is focused on the financial
services, gaming and internet of things (IoT) markets, where
accurate and timely data transfer is vital. DiffusionData has
established a blue chip client base that includes 188 Bet, Baker
Technology, Betfair, Caesars, Lloyds Bank and William Hill, with an
objective for the year ahead of growing its market position. To
support this strategy, a new engineering and testing hub is being
established in Newcastle, which will create a number of local jobs
and serve as a quality and assurance centre to ensure that
DiffusionData can maintain its high standard of service delivery as
it scales. In 2022, the business achieved notable industry
recognition for its innovative data platform, winning four awards
and being shortlisted for a further 12.
During the period under review, sustainable packaging
manufacturer iPac has continued to deliver a good rate of sales
growth, and has a strong pipeline of new opportunities. The
business, which manufactures and supplies thermoformed sustainable
packaging solutions to the food and pharmaceutical sectors,
recently opened its sixth production line to accommodate increased
demand. In February 2023, it opened a new production and
warehousing facility in County Durham, which has created a number
of local jobs and has capacity to house up to eight new production
lines, which will be phased in to meet client demand. iPac
continues to develop new products and its strategic objective is to
move into adjacent markets where there is demand for sustainable
packaging solutions. Given its strong and expanding product
portfolio, coupled with attractive ESG credentials, the business is
well placed to continue to deliver good growth in the year
ahead.
Crematorium developer and operator Horizon Ceremonies continues
to make good operational and strategic progress. Since your Company
first invested in 2017, it has established a portfolio of three
crematoria, all of which are trading ahead of plan, and is
continuing to build a strong market position. Whilst the planning
process for a new crematorium can be lengthy, there is a good
pipeline of opportunities at varying stages of the approval
process. The medium-term strategic objective remains to build a
portfolio of modern, technologically advanced crematoria that offer
a professional and compassionate service, whilst also meeting the
highest environmental standards, including the objective of
achieving net zero status by 2025, and to sell the business to a
trade, private equity or infrastructure acquirer when all sites are
fully developed.
Since your Company first invested in December 2021, Liftango, a
provider of environmentally friendly transport planning solutions,
has gained significant commercial traction. The business, which
enables clients such as corporates, universities and public
transport providers, to plan, launch and scale sustainable
transport solutions, including climate-positive carpooling,
fixed-route shuttles and on-demand buses, recently signed a five
year contract with National Express to digitalise its existing
dial-a-ride service, adding another client to an impressive blue
chip list that includes Amazon, IKEA, Tesla, Qantas and Volvo.
During the period, Liftango received additional funding from the
Maven VCTs as part of a larger funding round supported by existing
investors. This further investment will help the business to
increase ARR by accelerating its international growth plan and
capitalising on emerging opportunities in Europe and North America,
whilst also broadening its product offering to existing regions and
clients.
Digital archiving specialist MirrorWeb continues to deliver
impressive revenue growth and has increased ARR over 80% compared
to the prior year. During the period, the business received
additional funding from the Maven VCTs to support its expansion
into the US, which is regarded as a pivotal market for future
growth. The international expansion is being led by the CEO, who
relocated to Austin, Texas in early 2023. The strategy for growth
in the US will focus on increasing sales by targeting large
financial institutions and compliance consultancies, where the need
to archive digital communications is either a regulatory or best
practice requirement, and where MirrorWeb's comprehensive and
secure product offering provides a compelling solution. The
business will also continue to build its presence in the UK, where
its blue chip customer base includes Aegon, Baillie Gifford, the
BBC, HM Treasury, Tesco Bank and The National Archives.
During the period under review, Rockar, a developer of a
disruptive digital platform for buying new and used cars, has made
positive progress and further enhanced its position in the evolving
automotive ecommerce market. The business, which provides a white
label cloud-based solution to help manufacturers and retailers
develop digital alternatives to replace or complement existing
showroom models, has achieved good commercial traction and recently
added Volvo to its existing client base, which includes BMW, Jaguar
Land Rover, Porsche and Toyota. The strategy for the year ahead
remains focused on building relationships with global automotive
manufacturers to enable the business to scale further.
Whilst the majority of companies in the unlisted portfolio have
continued to make positive progress, there are a small number that
have not achieved their commercial targets, largely as a result of
conditions within the wider economy. Specialist IT integrator Flow
has experienced challenging trading conditions resulting from
hardware and component shortages, and a provision against cost has
been taken to reflect the lower than expected trading
performance.
Quoted Holdings
Global biopharmaceutical company Arecor Therapeutics reported
results for the full year to 31 December 2022, which were in line
with market expectations. Revenue more than doubled to GBP2.4
million, comprising GBP1.4 million from formulation development and
GBP1.0 million from product sales, enhanced by the five month
contribution from Tetris Pharma following its acquisition in August
2022. The cash position at the year end was comfortable at GBP12.8
million. Operational developments during the year included positive
results from the US Phase I clinical trial of its ultra rapid
insulin product, AT247, and the commencement of a second Phase I
trial of AT278, an ultra-rapid acting ultra concentrate product for
people with Type 2 diabetes, with results anticipated in the fourth
quarter of 2023. In the year ahead, the company anticipates
royalties from novel formulation AT220 to begin to filter through,
following its expected launch by a global pharma partner into a
multi billion dollar market. Arecor also noted that the commercial
roll-out of Tetris Pharma's key diabetes product, Ogluo, a glucagon
pre-filled autoinjector pen, would accelerate across key European
territories during 2023.
In the year to 31 December 2022, ultrasound artificial
intelligence (AI) software and simulation company Intelligent
Ultrasound recorded good growth, with revenue up 33% to a record
level of GBP10.1 million and gross profit increasing 36% to GBP6.3
million. Operating losses reduced by 15% and cash at the year end
was GBP7.17 million, following an oversubscribed fundraising in
November 2022. Divisionally, simulation revenue grew by 28% to
GBP9.4 million, driven by strong sales on three key simulator
platforms ScanTrainer (for obstetrics and gynaecology training),
HeartWorks (for echocardiography training) and BodyWorks (a point
of care simulator for emergency medicine and critical care
scenarios). Clinical AI revenues are beginning to gain commercial
traction, with revenues increasing by over 200% to nearly
GBP700,000. The division now has three AI driven software products,
which will help it to progress its Classroom to Clinic ultrasound
expansion strategy. The company highlighted a positive start to
2023, with growth achieved of both AI and simulation related
products and, post the fundraise, its anticipated that the
performance in the full year to the end of December 2023 will show
further progress towards its objective of achieving profitability
by the end of 2024.
K3 Business Technology , a provider of business critical
software focused on fashion and apparel brands, reported results
for the year to 30 November 2022, which highlighted revenue growth
of 5% to GBP47.5million, with recurring and predictable revenue up
11% to GBP37.6 million and now accounting for 79% of total revenue.
EBITDA (earnings before interest, taxes, depreciation and
amortisation) increased by 16% to GBP5.1 million, with net cash at
the period end of GBP7.1 million. With respect to operational
progress, the company noted that its Third-party Solutions continue
to generate a significant proportion of recurring and predictable
revenue, with Products, which has a strong track record in the
delivery of ERP and Point of Sale solutions, delivering an
encouraging underlying performance. The former is an increasingly
important area with legislation driving the adoption of
sustainability solutions and, in particular, supply chain
traceability. K3 noted that the new financial year had started
well, continuing the momentum of the prior year.
Customer engagement software specialist Netcall announced
interim results for the six months to 31 December 2022, which
reported a 19% increase in revenues to GBP17.5 million driven by
growth in both Intelligent Automation and Customer Engagement
solutions. Adjusted EBITDA rose 29% to GBP4.4 million and profit
before tax by 109%. The order backlog increased by 52% to GBP54.5
million, with GBP30 million of this due to be delivered within the
next 12 months, and cash at the period end was GBP20.4 million. The
main growth driver continues to be Netcall's cloud offering, which
is exploring how new technologies such as ChatGPT and other
generative AI models can help transform the automation capabilities
of its Liberty Platform. The positive trading momentum has
continued into the second half of the year, and the healthy
pipeline provides good visibility for the remainder of the
year.
In the year to 31 December 2022, Water Intelligence, a leading
provider of minimally invasive water leak detection and repair
solutions, delivered a strong performance. Despite the
macroeconomic volatility, revenue increased by 31% to $71.3
million, with adjusted EBITDA up 20% to $12.4 million, whilst
network sales, which are a proxy for market share, increased by 11%
to $165 million. The net cash position at the year end was $6.2
million. Notwithstanding the ongoing economic uncertainty, the
company reiterated the positive message of the first quarter
trading update, stating that it had made a good start to 2023, with
revenue up 18% year on year to $19.4 million and adjusted EBITDA up
11% to $3.5 million, and the outlook for the remainder of the year
was noted to be encouraging. Despite consistently reporting a solid
financial and operational performance, the share price of Water
Intelligence has been disappointing, demonstrating the impact of
the sector wide de-rating. The Manager remains optimistic in the
long term growth strategy that is being pursued by the company and
will continue to monitor performance closely.
Liquidity Management
In line with the updated liquidity management strategy outlined
in the Chairman's Statement, during the reporting period a number
of new investments were completed in permitted non-qualifying
investment trusts and money market funds, the details of which can
be found in the Investments table in the Interim Report. The
objective remains to build a focused portfolio of income generating
holdings to support the objective of maximising income from monies
held prior to investment, whilst ensuring that your Company remains
compliant with all aspects of the VCT legislation.
New Investments
During the reporting period, two new private companies were
added to the portfolio:
-- iAM Compliant is a software company that has established a
strong position in the eLearning market and which operates through
two core divisions. The first, iAM Compliant, is a cloud-based
estates and compliance management platform, covering areas such as
estates management, health and safety, status reporting and
premises checks. The division has achieved a good rate of recurring
revenue and maintains a high client retention rate. The second
division, iAM Learning, has developed a digital learning library
that contains over 275 continuing professional development (CPD)
and Institute of Occupational Safety and Health (IOSH) approved
courses covering a wide range of topics such as cyber security,
leadership, mental health and safeguarding. The courses are
designed to be accessible and engaging, and existing clients
include Countrywide, DPD, Dunelm, Lotus Cars and Moonpig. The
funding from the Maven VCTs will enable the business to enhance
product development, support sales and marketing initiatives, and
provide general working capital headroom.
-- Manufacture 2030 (M2030) has developed a software solution to
assist large corporates with complex manufacturing supply chains to
work with their suppliers to measure and actively reduce carbon
emissions. The platform enables companies to collate environmental
impact data and formulate reduction strategies, whilst tracking
progress and reporting this to their customers. The business has
developed a strong client base, including multi-nationals such as
Asda, Bayer, Ford, General Motors, Morrisons and SC Johnson. The
funding from the Maven VCTs is being used to expand M2030's market
position in key sectors such as automotive, chemical,
pharmaceuticals and retail, and to support further product
development to enhance platform functionality.
The following investments have been completed during the
reporting period:
Investment
cost
Investments Date Sector GBP'000
---------------------------------- -------------- ------------------------------------------------ ----------
New unlisted
================================== ============== ================================================ ==========
2 degrees Limited
(trading as Manufacture 2030) March 2023 Software & technology 997
================================== ============== ================================================ ==========
Learning & development/
iAM Compliant Limited May 2023 recruitment technology 489
================================== ============== ================================================ ==========
Total new unlisted 1,486
==================================================================================================== ==========
Follow-on unlisted
================================== ============== ================================================ ==========
Delio Limited March 2023 Software & technology 300
================================== ============== ================================================ ==========
Draper & Dash Limited (trading Pharmaceuticals, biotechnology
as RwHealth) April 2023 & healthcare 250
================================== ============== ================================================ ==========
Enpal Limited (trading as Guru
Systems) April 2023 Software & technology 194
================================== ============== ================================================ ==========
Horizon Technologies Consultants
Limited February 2023 Industrial & engineering 500
================================== ============== ================================================ ==========
Liftango Group Limited February 2023 Software & technology 600
================================== ============== ================================================ ==========
MirrorWeb Limited February 2023 Software & technology 300
================================== ============== ================================================ ==========
NorthRow Limited
(formerly Contego Solutions
Limited) December 2022 Software & technology 136
================================== ============== ================================================ ==========
Investment
cost
Investments (continued) Date Sector GBP'000
------------------------------------------ -------------- --------------------------------------------- ----------
New unlisted (continued)
========================================== ============== ============================================= ==========
Marketing & advertising
Relative Insight Limited May 2023 technology 200
========================================== ============== ============================================= ==========
Turnkey Group (UK) Holdings
Limited March 2023 Software & technology 748
========================================== ============== ============================================= ==========
Zinc Digital Business Solutions
Limited April 2023 Software & technology 51
========================================== ============== ============================================= ==========
Total follow-on unlisted 3,279
========================================================================================================= ==========
Total unlisted 4,765
========================================================================================================= ==========
Open-ended investment companies
(1)
========================================== ============== ============================================= ==========
Royal London Short Term Fixed
Income Fund (Class Y Income) February 2023 Money market fund 1,000
========================================== ============== ============================================= ==========
Royal London Short Term Money
Market Fund (Class Y Income) March 2023 Money market fund 2,000
========================================== ============== ============================================= ==========
Total open-ended investment
companies 3,000
========================================================================================================= ==========
Money market funds (1)
========================================== ============== ============================================= ==========
Aberdeen Standard Liquidity
Fund (Lux) - Sterling Fund (Class
K3) May 2023 Money market fund 1,000
========================================== ============== ============================================= ==========
Aviva Investors Sterling Liquidity
Fund (Class 3) April 2023 Money market fund 1,003
========================================== ============== ============================================= ==========
BlackRock Institutional Sterling
Liquidity Fund (Core) May 2023 Money market fund 1,000
========================================== ============== ============================================= ==========
Fidelity Institutional Liquidity
Sterling Fund (Class F) March 2023 Money market fund 1,000
========================================== ============== ============================================= ==========
Goldman Sachs Sterling Government
Liquid Reserves Ireland (Institutional) May 2023 Money market fund 1,000
========================================== ============== ============================================= ==========
HSBC Sterling Liquidity Fund
(Class A) May 2023 Money market fund 1,000
========================================== ============== ============================================= ==========
Total money market funds 6,003
========================================================================================================= ==========
Investment
cost
Investments (continued) Date Sector GBP'000
------------------------------------ ----------- ----------------- ----------
Private equity investment trusts
(1)
==================================== =========== ================= ==========
abrdn Private Equity Opportunities
Trust PLC (formerly Standard
Life Private Equity Trust PLC) March 2023 Investment trust 377
==================================== =========== ================= ==========
Alliance Trust PLC May 2023 Investment trust 149
==================================== =========== ================= ==========
Apax Global Alpha Limited May 2023 Investment trust 225
==================================== =========== ================= ==========
HgCapital Trust PLC March 2023 Investment trust 499
==================================== =========== ================= ==========
ICG Enterprise Trust PLC May 2023 Investment trust 121
==================================== =========== ================= ==========
JPMorgan Global Growth & Income
PLC May 2023 Investment trust 150
==================================== =========== ================= ==========
NB Private Equity Partners Limited March 2023 Investment trust 412
==================================== =========== ================= ==========
Total private equity investment
trusts 1,933
==================================================================== ==========
Real estate investment trust
(1)
==================================== =========== ================= ==========
Impact Healthcare REIT PLC May 2023 Investment trust 185
==================================== =========== ================= ==========
Total real estate investment
trust 185
==================================================================== ==========
Infrastructure investment trusts
(1)
==================================== =========== ================= ==========
3i Infrastructure PLC May 2023 Investment trust 320
==================================== =========== ================= ==========
BBGI Global Infrastructure S.A. May 2023 Investment trust 320
==================================== =========== ================= ==========
International Public Partnerships
Limited May 2023 Investment trust 300
==================================== =========== ================= ==========
JLEN Environmental Assets Group
Limited May 2023 Investment trust 320
==================================== =========== ================= ==========
Pantheon Infrastructure PLC March 2023 Investment trust 300
==================================== =========== ================= ==========
Total infrastructure investment
trusts 1,560
==================================================================== ==========
Total investments 17,446
==================================================================== ==========
(1) Investments completed as part of the liquidity management
strategy, details of which can be found in the Interim Report.
At the period end, the portfolio contained 139 unlisted and
quoted investments, at a total cost of GBP61.29 million.
Realisations
The table below gives details of all realisations completed
during the reporting period:
Cost Value Gain/(loss)
of shares at 30 Realised over 30
Year Complete/ disposed November Sales gain/ November
first partial of 2022 proceeds (loss) 2022 value
Realisations invested exit GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ---------- ---------- ---------- --------- --------- -------- -----------
Unlisted
=========================== ========== ========== ========== ========= ========= ======== ===========
ADC Biotechnology Limited
(1) 2017 Complete - - 113 113 113
=========================== ========== ========== ========== ========= ========= ======== ===========
Ensco 969 Limited
(trading as DPP) (2) 2013 Partial 29 37 29 - (8)
=========================== ========== ========== ========== ========= ========= ======== ===========
Maven Co-invest Endeavour
Limited Partnership
(3) 2013 Complete 1 375 385 384 10
=========================== ========== ========== ========== ========= ========= ======== ===========
Optoscribe Limited (4) 2018 Complete - - 61 61 61
=========================== ========== ========== ========== ========= ========= ======== ===========
R&M Engineering Group
Limited 2013 Complete 358 80 56 (302) (24)
=========================== ========== ========== ========== ========= ========= ======== ===========
Total unlisted 388 492 644 256 152
=================================================== ========== ========= ========= ======== ===========
Total realisations 388 492 644 256 152
=================================================== ========== ========= ========= ======== ===========
(1) Deferred consideration following the sale in March 2021.
(2) Proceeds from loan note repayment, excludes yield received,
which is disclosed as revenue for financial reporting purposes.
(3) Release of monies following the sale of the underlying company in June 2022.
(4) Deferred consideration following the sale in January 2022.
Outlook
With good levels of liquidity, your Company's strategy remains
focused on growing and developing further the investee company
portfolio. The pipeline of potential new investments across Maven's
regional network of offices remains strong and it is anticipated
that there will be a good rate of new investment through the second
half of the year. The Manager will also continue to work closely
with existing portfolio companies, particularly those that are
growing rapidly and demonstrating the potential to create
significant Shareholder value, to ensure that their value is
maximised at the point of exit. This dual focus on portfolio
expansion and value maximisation is aimed at ensuring a steady flow
of profitable exits occur in support of the objective of providing
Shareholders with regular tax free dividend payments.
On behalf of the Board
Maven Capital Partners UK LLP
Manager
24 July 2023
Investment Portfolio Summary
As at 31 May 2023
% of
equity
% of % of held by
Valuation Cost total equity other
Investment GBP'000 GBP'000 assets held clients(1)
===================================== ========= ======== ======= ======= ===========
Unlisted
===================================== ========= ======== ======= ======= ===========
Bright Network (UK) Limited 2,179 940 3.3 8.2 31.7
===================================== ========= ======== ======= ======= ===========
MirrorWeb Limited 2,157 1,300 3.3 8.7 41.1
===================================== ========= ======== ======= ======= ===========
Horizon Technologies Consultants
Limited 1,826 1,296 2.8 5.5 11.7
===================================== ========= ======== ======= ======= ===========
Rockar 2016 Limited (trading
as Rockar) 1,479 1,023 2.2 4.7 14.8
===================================== ========= ======== ======= ======= ===========
Delio Limited 1,327 948 2.0 4.0 9.6
===================================== ========= ======== ======= ======= ===========
Horizon Ceremonies Limited
(trading as Horizon Cremation) 1,298 660 2.0 3.6 49.1
===================================== ========= ======== ======= ======= ===========
DiffusionData Limited
(formerly Push Technology Limited) 1,186 725 1.8 3.2 13.3
===================================== ========= ======== ======= ======= ===========
Relative Insight Limited 1,185 800 1.8 4.6 27.1
===================================== ========= ======== ======= ======= ===========
Liftango Limited 1,147 1,147 1.7 3.4 10.5
===================================== ========= ======== ======= ======= ===========
GradTouch Limited 1,133 567 1.7 5.3 29.3
===================================== ========= ======== ======= ======= ===========
Nano Interactive Group Limited 1,126 625 1.7 3.7 11.2
===================================== ========= ======== ======= ======= ===========
BioAscent Discovery Limited 1,056 174 1.6 4.4 35.6
===================================== ========= ======== ======= ======= ===========
Precursive Limited 1,000 1,000 1.5 6.7 27.5
===================================== ========= ======== ======= ======= ===========
2 degrees Limited
(trading as Manufacture 2030) 997 997 1.5 3.5 7.6
===================================== ========= ======== ======= ======= ===========
Turnkey Group (UK) Holdings
Limited 996 996 1.5 15.6 23.1
===================================== ========= ======== ======= ======= ===========
NorthRow Limited
(formerly Contego Solutions
Limited) 979 979 1.5 4.9 27.3
===================================== ========= ======== ======= ======= ===========
mypura.com Group Limited (trading
as Pura) 896 448 1.4 2.3 20.1
===================================== ========= ======== ======= ======= ===========
Enpal Limited (trading as Guru
Systems) 891 891 1.3 7.5 14.1
===================================== ========= ======== ======= ======= ===========
CB Technology Group Limited 856 521 1.3 10.1 64.9
===================================== ========= ======== ======= ======= ===========
Draper & Dash Limited (trading
as RwHealth) 847 847 1.3 2.9 10.6
===================================== ========= ======== ======= ======= ===========
Bud Systems Limited 846 846 1.3 4.8 12.2
===================================== ========= ======== ======= ======= ===========
Rico Developments Limited (trading
as Adimo) 760 760 1.2 3.3 6.4
===================================== ========= ======== ======= ======= ===========
Hublsoft Group Limited 756 675 1.1 5.5 18.3
===================================== ========= ======== ======= ======= ===========
Plyable Limited 647 647 1.0 6.1 11.3
===================================== ========= ======== ======= ======= ===========
Summize Limited 647 647 1.0 4.2 28.9
===================================== ========= ======== ======= ======= ===========
CYSIAM Limited 630 373 1.0 6.5 13.5
===================================== ========= ======== ======= ======= ===========
Biorelate Limited 597 597 0.9 3.4 22.3
===================================== ========= ======== ======= ======= ===========
FodaBox Limited 597 597 0.9 2.0 3.0
===================================== ========= ======== ======= ======= ===========
Ensco 969 Limited (trading as
DPP) 592 469 0.9 2.2 32.3
===================================== ========= ======== ======= ======= ===========
Whiterock Group Limited 561 321 0.8 5.2 24.8
===================================== ========= ======== ======= ======= ===========
As at 31 May 2023
% of
equity
% of % of held by
Valuation Cost total equity other
Investment (continued) GBP'000 GBP'000 assets held clients(1)
====================================== ========= ======== ======= ======= ===========
Unlisted (continued)
====================================== ========= ======== ======= ======= ===========
Novatus Global Limited
(formerly Novatus Advisory Limited) 547 547 0.8 3.6 9.7
====================================== ========= ======== ======= ======= ===========
WaterBear Education Limited 517 245 0.8 5.1 34.1
====================================== ========= ======== ======= ======= ===========
Glacier Energy Services Holdings
Limited 509 643 0.8 2.5 25.2
====================================== ========= ======== ======= ======= ===========
ORCHA Health Limited 497 497 0.8 1.3 4.2
====================================== ========= ======== ======= ======= ===========
QikServe Limited 494 494 0.7 2.2 13.6
====================================== ========= ======== ======= ======= ===========
iAM Compliant Limited 489 489 0.7 6.3 32.5
====================================== ========= ======== ======= ======= ===========
Boomerang Commerce IQ
(trading as CommerceIQ) (2) 485 646 0.7 0.1 0.3
====================================== ========= ======== ======= ======= ===========
XR Games Limited 483 299 0.7 1.7 18.5
====================================== ========= ======== ======= ======= ===========
Reed Thermoformed Packaging Limited
(trading as iPac) 477 448 0.7 2.5 9.9
====================================== ========= ======== ======= ======= ===========
CODILINK UK Limited (trading
as Coniq) 450 450 0.7 1.3 3.6
====================================== ========= ======== ======= ======= ===========
Filtered Technologies Limited 435 400 0.7 4.1 21.3
====================================== ========= ======== ======= ======= ===========
HiveHR Limited 413 413 0.6 6.0 38.6
====================================== ========= ======== ======= ======= ===========
Zinc Digital Business Solutions
Limited 400 400 0.6 6.3 17.6
====================================== ========= ======== ======= ======= ===========
Vodat Communications Group
(VCG) Holding Limited 396 264 0.6 2.3 29.6
====================================== ========= ======== ======= ======= ===========
HCS Control Systems Group Limited 373 373 0.6 3.0 33.5
====================================== ========= ======== ======= ======= ===========
Flow UK Holdings Limited 350 498 0.5 6.0 29.0
====================================== ========= ======== ======= ======= ===========
ebb3 Limited 346 206 0.5 6.6 72.3
====================================== ========= ======== ======= ======= ===========
Kanabo GP Limited (3) 337 1,639 0.5 13.8 53.4
====================================== ========= ======== ======= ======= ===========
Servoca PLC (4) 322 138 0.5 0.7 -
====================================== ========= ======== ======= ======= ===========
RevLifter Limited 300 300 0.5 3.1 23.5
====================================== ========= ======== ======= ======= ===========
Cat Tech International Limited 299 299 0.5 2.9 27.2
====================================== ========= ======== ======= ======= ===========
Snappy Shopper Limited 298 298 0.5 0.4 1.3
====================================== ========= ======== ======= ======= ===========
Shortbite Limited (trading as
Fixtuur) 290 484 0.4 6.5 50.8
====================================== ========= ======== ======= ======= ===========
Growth Capital Ventures Limited 275 264 0.4 4.8 42.6
====================================== ========= ======== ======= ======= ===========
Automated Analytics Limited
(formerly eSales Hub Limited) 150 150 0.2 1.9 18.7
====================================== ========= ======== ======= ======= ===========
The Algorithm People Limited 140 140 0.2 2.0 14.2
====================================== ========= ======== ======= ======= ===========
Project Falcon Topco Limited
(trading as Quorum Cyber) (5) 126 126 0.2 0.3 2.6
====================================== ========= ======== ======= ======= ===========
ISN Solutions Group Limited 98 250 0.1 3.6 51.4
====================================== ========= ======== ======= ======= ===========
LightwaveRF PLC (4) 40 74 0.1 0.9 0.9
====================================== ========= ======== ======= ======= ===========
Other unlisted investments 22 2,826 -
====================================== ========= ======== ======= ======= ===========
Total unlisted 41,552 37,116 62.9
====================================== ========= ======== ======= ======= ===========
As at 31 May 2023
% of
equity
% of % of held by
Valuation Cost total equity other
Investment (continued) GBP'000 GBP'000 assets held clients(1)
================================ ========= ======== ======= ======= ===========
AIM/AQSE quoted
================================ ========= ======== ======= ======= ===========
Water Intelligence PLC 1,001 163 1.6 1.2 -
-------------------------------- --------- -------- ------- ------- -----------
Netcall PLC 390 26 0.6 0.2 -
-------------------------------- --------- -------- ------- ------- -----------
Avingtrans PLC 368 54 0.6 0.3 -
-------------------------------- --------- -------- ------- ------- -----------
Access Intelligence PLC 347 224 0.6 0.4 0.1
-------------------------------- --------- -------- ------- ------- -----------
Concurrent Technologies PLC 317 161 0.6 0.7 -
-------------------------------- --------- -------- ------- ------- -----------
K3 Business Technology Group
PLC 251 238 0.4 0.5 -
-------------------------------- --------- -------- ------- ------- -----------
Vianet Group PLC 240 405 0.4 1.1 0.3
-------------------------------- --------- -------- ------- ------- -----------
GENinCode PLC 222 397 0.3 1.8 9.3
-------------------------------- --------- -------- ------- ------- -----------
Arecor Therapeutics PLC 185 167 0.3 0.2 0.2
-------------------------------- --------- -------- ------- ------- -----------
Synectics PLC 144 308 0.2 0.8 -
-------------------------------- --------- -------- ------- ------- -----------
Intelligent Ultrasound Group
PLC 132 118 0.2 0.4 1.5
-------------------------------- --------- -------- ------- ------- -----------
Avacta Group PLC 94 13 0.1 - 0.1
-------------------------------- --------- -------- ------- ------- -----------
Polarean Imaging PLC 94 246 0.1 0.2 0.4
-------------------------------- --------- -------- ------- ------- -----------
Anpario PLC 86 57 0.1 0.2 -
-------------------------------- --------- -------- ------- ------- -----------
Croma Security Solutions Group
PLC 69 433 0.1 1.0 -
-------------------------------- --------- -------- ------- ------- -----------
Feedback PLC 58 74 0.1 0.4 1.3
-------------------------------- --------- -------- ------- ------- -----------
Directa Plus PLC 56 120 0.1 0.1 0.1
================================ ========= ======== ======= ======= ===========
Crossword Cybersecurity PLC 52 150 0.1 0.6 1.5
-------------------------------- --------- -------- ------- ------- -----------
Vertu Motors PLC 51 50 0.1 - -
-------------------------------- --------- -------- ------- ------- -----------
Eden Research PLC 48 83 0.1 0.4 1.0
-------------------------------- --------- -------- ------- ------- -----------
Destiny Pharma PLC 46 100 0.1 0.2 1.3
-------------------------------- --------- -------- ------- ------- -----------
Saietta Group PLC 45 111 0.1 0.1 0.1
-------------------------------- --------- -------- ------- ------- -----------
Velocys PLC 43 148 0.1 0.1 0.1
-------------------------------- --------- -------- ------- ------- -----------
C4X Discovery Holdings PLC 42 40 0.1 0.1 0.8
-------------------------------- --------- -------- ------- ------- -----------
SulNOx PLC 39 130 0.1 0.4 0.4
-------------------------------- --------- -------- ------- ------- -----------
Gelion PLC 29 121 - 0.1 0.1
-------------------------------- --------- -------- ------- ------- -----------
RUA Life Sciences PLC 28 229 - 0.3 1.3
-------------------------------- --------- -------- ------- ------- -----------
Transense Technologies PLC 28 1,188 - 0.3 -
-------------------------------- --------- -------- ------- ------- -----------
Egdon Resources PLC 26 48 - 0.1 -
-------------------------------- --------- -------- ------- ------- -----------
Incanthera PLC 26 49 - 0.6 0.6
-------------------------------- --------- -------- ------- ------- -----------
LungLife AI 26 114 - 0.3 0.2
================================ ========= ======== ======= ======= ===========
As at 31 May 2023
% of
equity
% of % of held by
Valuation Cost total equity other
Investment (continued) GBP'000 GBP'000 assets held clients(1)
==================================== ========= ======== ======= ======= ===========
AIM/AQSE quoted (continued)
==================================== ========= ======== ======= ======= ===========
Verici Dx PLC 26 83 - 0.2 1.4
------------------------------------ --------- -------- ------- ------- -----------
Oncimmune Holdings PLC 25 250 - 0.2 0.3
------------------------------------ --------- -------- ------- ------- -----------
Merit Group PLC 22 450 - 0.2 -
------------------------------------ --------- -------- ------- ------- -----------
Renalytix PLC 22 - - - -
------------------------------------ --------- -------- ------- ------- -----------
XP Factory PLC (formerly Escape
Hunt PLC) 16 26 - 0.1 0.1
------------------------------------ --------- -------- ------- ------- -----------
ReNeuron Group PLC 12 150 - 0.4 1.7
------------------------------------ --------- -------- ------- ------- -----------
Osirium Technologies PLC 10 199 - 0.6 1.0
------------------------------------ --------- -------- ------- ------- -----------
Other quoted investments 19 4,574 -
------------------------------------ --------- -------- ------- ------- -----------
Total AIM/AQSE quoted 4,735 11,497 7.2
==================================== ========= ======== ======= ======= ===========
Private equity investment trusts
(6)
==================================== ========= ======== ======= ======= ===========
HgCapital Trust PLC 587 499 0.9 - 0.1
==================================== ========= ======== ======= ======= ===========
NB Private Equity Partners Limited 385 412 0.6 - -
==================================== ========= ======== ======= ======= ===========
abrdn Private Equity Opportunities
Trust PLC (formerly Standard
Life Private Equity Trust PLC) 368 377 0.6 - 0.1
==================================== ========= ======== ======= ======= ===========
Apax Global Alpha Limited 212 225 0.3 - 0.1
==================================== ========= ======== ======= ======= ===========
JPMorgan Global Growth & Income
PLC 149 150 0.2 - -
==================================== ========= ======== ======= ======= ===========
Alliance Trust PLC 148 149 0.2 - -
==================================== ========= ======== ======= ======= ===========
ICG Enterprise Trust PLC 127 121 0.2 0.1 0.1
==================================== ========= ======== ======= ======= ===========
Total private equity investment
trusts 1,976 1,933 3.0
==================================== ========= ======== ======= ======= ===========
Real estate investment trust
(6)
==================================== ========= ======== ======= ======= ===========
Impact Healthcare REIT PLC 191 185 0.3 - 0.1
==================================== ========= ======== ======= ======= ===========
Total real estate investment
trust 191 185 0.3
==================================== ========= ======== ======= ======= ===========
Infrastructure investment trusts
(6)
==================================== ========= ======== ======= ======= ===========
BBGI Global Infrastructure S.A. 311 320 0.5 - 0.1
==================================== ========= ======== ======= ======= ===========
JLEN Environmental Assets Group
Limited 311 320 0.5 - 0.1
==================================== ========= ======== ======= ======= ===========
3i Infrastructure PLC 310 320 0.5 - -
==================================== ========= ======== ======= ======= ===========
Pantheon Infrastructure PLC 304 300 0.4 0.1 0.2
==================================== ========= ======== ======= ======= ===========
International Public Partnerships
Limited 289 300 0.4 - -
==================================== ========= ======== ======= ======= ===========
Total infrastructure investment
trusts 1,525 1,560 2.3
==================================== ========= ======== ======= ======= ===========
As at 31 May 2023
% of
equity
% of % of held by
Valuation Cost total equity other
Investment (continued) GBP'000 GBP'000 assets held clients(1)
========================================== ========= ======== ======= ======= ===========
Open-ended investment companies
(6)
========================================== ========= ======== ======= ======= ===========
Royal London Short Term Money
Market Fund (Class Y Income) 1,984 2,000 3.0 - -
========================================== ========= ======== ======= ======= ===========
Royal London Short Term Fixed
Income Fund (Class Y Income) 1,001 1,000 1.5 - 0.1
========================================== ========= ======== ======= ======= ===========
Total open-ended investment
companies 2,985 3,000 4.5
========================================== ========= ======== ======= ======= ===========
Money market funds (6)
========================================== ========= ======== ======= ======= ===========
Aviva Investors Sterling Liquidity
Fund (Class 3) 1,003 1,003 1.6 - -
========================================== ========= ======== ======= ======= ===========
Aberdeen Standard Liquidity Fund
(Lux) - Sterling Fund (Class
K3) 1,000 1,000 1.5 - -
========================================== ========= ======== ======= ======= ===========
BlackRock Institutional Sterling
Liquidity Fund (Core) 1,000 1,000 1.5 - 0.1
========================================== ========= ======== ======= ======= ===========
Fidelity Institutional Liquidity
Sterling Fund
(Class F) 1,000 1,000 1.5 0.1 0.1
========================================== ========= ======== ======= ======= ===========
Goldman Sachs Sterling Government
Liquid Reserves Ireland (Institutional) 1,000 1,000 1.5 0.3 0.3
========================================== ========= ======== ======= ======= ===========
HSBC Sterling Liquidity Fund
(Class A) 1,000 1,000 1.5 - -
========================================== ========= ======== ======= ======= ===========
Total money market funds 6,003 6,003 9.1
========================================== ========= ======== ======= ======= ===========
Total investments 58,967 61,294 89.3
========================================== ========= ======== ======= ======= ===========
(1) Other clients of Maven Capital Partners UK LLP.
(2) This holding reflects the retained minority interest
following the sale of e.fundamentals (Group) Limited to CommerceIQ
in July 2022.
(3) The holding in this investment resulted from the sale of The
GP Service (UK) Limited to Kanabo GP Limited in a share for share
exchange, which completed in February 2022.
(4) This company delisted from AIM in a previous period.
(5) Retained minority interest following the sale of Quorum
Cyber Security Limited in December 2022.
(6) Liquidity management portfolio.
Shaded line indicates that the investment was completed pre
November 2015.
Income Statement
For the six months ended 31 May 2023
Six months ended Six months ended Year ended
31 May 2023 31 May 2022 30 November 2022
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
(Losses)/gains on
investments - (958) (958) - 773 773 - 2,082 2,082
Income from investments 234 - 234 263 - 263 514 - 514
Other income 132 - 132 4 - 4 60 - 60
Investment management
fees (141) (424) (565) (221) (663) (884) (369) (1,109) (1,478)
Other expenses (246) - (246) (192) - (192) (485) - (485)
============================ ======== ======== ======== ======== ======== ======== ======== ======== ========
Net return on ordinary
activities before taxation (21) (1,382) (1,403) (146) 110 (36) (280) 973 693
Tax on ordinary activities - - - - - - - - -
============================ ======== ======== ======== ======== ======== ======== ======== ======== ========
Return attributable
to Equity Shareholders (21) (1,382) (1,403) (146) 110 (36) (280) 973 693
============================ ======== ======== ======== ======== ======== ======== ======== ======== ========
Earnings per share
(pence) (0.01) (0.75) (0.76) (0.08) 0.06 (0.02) (0.16) 0.55 0.39
============================ ======== ======== ======== ======== ======== ======== ======== ======== ========
All gains and losses are recognised in the Income Statement.
The total column of this statement is the Profit & Loss
Account of the Company. The revenue and capital columns are
supplementary to this and are prepared under guidance published by
the AIC. All items in the above statement are derived from
continuing operations. The Company has only one class of business
and one reportable segment, the results of which are set out in the
Income Statement and Balance Sheet. The Company derives its income
from investments made in shares, securities and bank deposits.
There are no potentially dilutive capital instruments in issue
and, therefore, no diluted earnings per share figures are relevant.
The basic and diluted earnings per share are, therefore,
identical.
The accompanying Notes are an integral part of the Financial
Statements.
Statement Of Changes In Equity
Six months ended 31 May 2023 (unaudited)
Non-distributable reserves Distributable reserves
----------------- --------
Share Capital Capital Capital Special
Share premium redemption reserve reserve distributable Revenue
capital account reserve unrealised realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- -------- ----------- ----------- --------- -------------- -------- --------
At 30 November
2022 17,638 15,063 691 404 9,941 20,448 (1,734) 62,451
Net return - - - (1,181) 223 (424) (21) (1,403)
Dividends paid - - - - - (934) - (934)
Repurchase and
cancellation of
shares (72) - 72 - - (240) - (240)
Net proceeds of
Share issue 1,714 4,321 - - - - - 6,035
Net proceeds of
DIS issue* 29 73 - - - - - 102
================= ======== ======== =========== =========== ========= ============== ======== ========
At 31 May 2023 19,309 19,457 763 (777) 10,164 18,850 (1,755) 66,011
================= ======== ======== =========== =========== ========= ============== ======== ========
Six months ended 31 May 2022 (unaudited)
Non-distributable reserves Distributable reserves
----------------- --------
Share Capital Capital Capital Special
Share premium redemption reserve reserve distributable Revenue
capital account reserve unrealised realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- -------- ----------- ----------- --------- -------------- -------- --------
At 30 November
2021 17,635 14,527 484 6,543 1,720 29,308 (1,454) 68,763
Net return - - - (6,757) 7,530 (663) (146) (36)
Dividends paid - - - - - (1,751) - (1,751)
Repurchase and
cancellation of
shares (116) - 116 - - (427) - (427)
Net proceeds of
DIS issue* 50 135 - - - - - 185
================= ======== ======== =========== =========== ========= ============== ======== ========
At 31 May 2022 17,569 14,662 600 (214) 9,250 26,467 (1,600) 66,734
================= ======== ======== =========== =========== ========= ============== ======== ========
Year ended 30 November 2022 (audited)
Non-distributable reserves Distributable reserves
----------------- --------
Share Capital Capital Capital Special
Share premium redemption reserve reserve distributable Revenue
capital account reserve unrealised realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- -------- ----------- ----------- --------- -------------- -------- --------
At 30 November
2021 17,635 14,527 484 6,543 1,720 29,308 (1,454) 68,763
Net return - - - (6,139) 8,221 (1,109) (280) 693
Dividends paid - - - - - (7,022) - (7,022)
Repurchase and
cancellation of
shares (207) - 207 - - (729) - (729)
Net proceeds of
DIS issue* 210 536 - - - - - 746
================= ======== ======== =========== =========== ========= ============== ======== ========
At 30 November
2022 17,638 15,063 691 404 9,941 20,448 (1,734) 62,451
================= ======== ======== =========== =========== ========= ============== ======== ========
The capital reserve unrealised is generally non-distributable
other than the part of the reserve relating to gains/(losses)
attributable to readily realisable quoted investments which are
distributable.
Where all, or an element of the proceeds of sales have not been
received in cash or cash equivalent, and are not readily
convertible to cash, they do not qualify as realised gains for the
purposes of distributable reserves calculations and, therefore, do
not form part of distributable reserves.
*DIS represents the Dividend Investment Scheme as detailed in
the Chairman's Statement in the Interim Report.
The accompanying Notes are an integral part of the Financial
Statements.
Balance Sheet
As at 31 May 2023
31 May 2023 31 May 2022 30 November
2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------- ------------- ------------------------- ------------------------
Fixed assets
Investments at fair value through
profit or loss 58,967 42,421 43,090
Current assets
Debtors 615 430 602
Cash 6,657 24,278 19,303
===================================== ============= ========================= ========================
7,272 24,708 19,905
Creditors
Amounts falling due within one year (228) (395) (544)
===================================== ============= ========================= ========================
Net current assets 7,044 24,313 19,361
===================================== ============= ========================= ========================
Net assets 66,011 66,734 62,451
===================================== ============= ========================= ========================
Capital and reserves
Called up share capital 19,309 17,569 17,638
Share premium account 19,457 14,662 15,063
Capital redemption reserve 763 600 691
Capital reserve - unrealised (777) (214) 404
Capital reserve - realised 10,164 9,250 9,941
Special distributable reserve 18,850 26,467 20,448
Revenue reserve (1,755) (1,600) (1,734)
===================================== ============= ========================= ========================
Net assets attributable to Ordinary
Shareholders 66,011 66,734 62,451
===================================== ============= ========================= ========================
Net asset value per Ordinary Share
(pence) 34.18 37.98 35.40
===================================== ============= ========================= ========================
The Financial Statements of Maven Income and Growth VCT 5 PLC,
registered number 04084875, were approved by the Board and were
signed on its behalf by:
Graham Miller
Director
24 July 2023
The accompanying Notes are an integral part of the Financial
Statements.
Cash Flow Statement
For the Six Months Ended 31 May 2023
Six months ended Six months ended Year ended
30 November
31 May 2023 31 May 2022 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------ ----------------- ----------------- -------------
Net cash flows from operating
activities (822) (855) (1,357)
Cash flows from investing
activities
Purchase of investments (17,446) (4,612) (10,715)
Sale of investments 659 9,304 15,946
------------------------------ ----------------- ----------------- -------------
Net cash flows from investing
activities (16,787) 4,692 5,231
------------------------------ ----------------- ----------------- -------------
Cash flows from financing
activities
Equity dividends paid (934) (1,751) (7,022)
Issue of Ordinary Shares 6,137 185 746
Repurchase of Ordinary Shares (240) (427) (729)
------------------------------ ----------------- ----------------- -------------
Net cash flows from financing
activities 4,963 (1,993) (7,005)
------------------------------ ----------------- ----------------- -------------
Net (decrease)/increase
in cash (12,646) 1,844 (3,131)
------------------------------ ----------------- ----------------- -------------
Cash at beginning of period 19,303 22,434 22,434
Cash at end of period 6,657 24,278 19,303
The accompanying Notes are an integral part of the Financial
Statements.
Notes To The Financial Statements
1. Accounting Policies
The financial information for the six months ended 31 May 2023
and the six months ended 31 May 2022 comprises non- statutory
accounts within the meaning of S435 of the Companies Act 2006. The
financial information contained in this report has been prepared on
the basis of the accounting policies set out in the Annual Report
and Financial Statements for the year ended 30 November 2022, which
have been filed at Companies House and contained an Auditors'
Report which was not qualified and did not contain a statement
under S498 (2) or S498 (3) of the Companies Act 2006.
2. Reserves
Share premium account
The share premium account represents the premium above nominal
value received by the Company on issuing shares net of issue costs.
This reserve is non-distributable.
Capital redemption reserve
The nominal value of shares repurchased and cancelled is
represented in the capital redemption reserve. This reserve is
non-distributable.
Capital reserve - unrealised
Increases and decreases in the fair value of investments are
recognised in the Income Statement and are then transferred to the
capital reserve unrealised account. This reserve is generally
non-distributable other than the part of the reserve relating to
gains/(losses) attributable to readily realisable quoted
investments which are distributable.
Capital reserve - realised
Gains or losses on investments realised in the year that have
been recognised in the Income Statement are transferred to the
capital reserve realised account on disposal. Furthermore, any
prior unrealised gains or losses on such investments are
transferred from the capital reserve unrealised account to the
capital reserve realised account on disposal. This reserve is
distributable.
Special distributable reserve
The total cost to the Company of the repurchase and cancellation
of shares is represented in the special distributable reserve
account. The special distributable reserve also represents capital
dividends, capital investment management fees and the tax effect of
capital items. This reserve is distributable.
Revenue reserve
The revenue reserve represents accumulated profits retained by
the Company that have not been distributed to shareholders as a
dividend. This reserve is distributable.
3. Return per Ordinary Share
Six months ended 31
May 2023
-------------------------------------------- -------------------
The returns per share have been based on the
following figures:
Weighted average number of Ordinary Shares 183,996,322
Revenue return (GBP21,000)
Capital return (GBP1,382,000)
-------------------------------------------- -------------------
Total return (GBP1,403,000)
-------------------------------------------- -------------------
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
-- the Financial Statements for the six months ended 31 May 2023
have been prepared in accordance with FRS 102, the Financial
Reporting Standard applicable in the UK and Republic of
Ireland;
-- the Interim Management Report, comprising the Chairman's
Statement and the Investment Manager's Interim Review, includes a
fair review of the information required by DTR 4.2.7R in relation
to the indication of important events during the first six months,
and of the principal and emerging risks and uncertainties facing
the Company during the second six months, of the year ending 30
November 2022; and
-- the Interim Management Report includes adequate disclosure of
the information required by DTR 4.2.8R in relation to related party
transactions and any changes therein.
Other information
The NAV per Ordinary Share has been calculated using the number
of Ordinary Shares in issue at 31 May 2023, which was 193,101,989.
A summary of investment changes for the six months under review and
an investment portfolio summary as at 31 May 2023 are included
above. A full copy of the Interim Report and Financial Statements
will be printed and issued to Shareholders in due course. Copies of
this announcement will be available to the public at the office of
Maven Capital Partners UK LLP, Kintyre House, 205 West George
Street, Glasgow, G2 2LW; at the registered office of the Company at
6th Floor, Saddlers House, 44 Gutter Lane, London EC2V 6BR; and on
the Company's website at: mavencp.com/migvct5.
Neither the content of the Company's website nor the contents of
any website accessible from hyperlinks on the Company's website (or
any other website) is incorporated into, or forms part of, this
announcement.
By order of the Board
Maven Capital Partners UK LLP
Secretary
24 July 2023
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END
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