TIDMMIG6
RNS Number : 9206T
Maven Income and Growth VCT 6 PLC
06 July 2018
Maven Income and Growth VCT 6 PLC
The Directors announce the final results for the year ended 31
March 2018.
Highlights for the year
-- NAV total return at the year end of 60.01p per share (2017: 61.36p)
-- NAV at year end of 55.16p per share (2017: 58.51p), after
payment of dividends totalling 2.00p per share during the year
-- Annual dividends 1.75p per share (2017: 0.25p)
-- 13 new VCT qualifying investments completed
-- GBP5.78 million of new capital deployed through investments
-- Profitable exits achieved from Crawford Scientific, Endura, John McGavigan and SPS (EU)
Chairman's Statement
On behalf of your Board, I am pleased to announce the results
for the year to 31 March 2018. During the period under review,
significant progress has been achieved in the long term
construction of the portfolio, with the deployment of GBP5.78
million of capital in 13 new VCT qualifying investments, operating
across a range of high growth industries and sectors. This active
period of investment is consistent with the strategy introduced in
2014 to expand the number of holdings in the portfolio following
the completion of several fundraisings, which saw your Company
increase significantly in size. As all new investments will
initially be held at cost, to reflect their level of maturity and
stage of development, it will take some time for this expansion to
bear fruit and for exits to occur. In the meantime, performance
will be supported by the strength of the more established portfolio
of investee companies, which continue to provide both growth and
income, and where a number of profitable realisations have recently
been achieved. The overall performance for the year was, however,
impacted by the write-down in value of one of the more mature
private company holdings where an exit from the principal trading
subsidiary has now been achieved.
Annual dividends totalled 1.75p per share, representing a yield
of 3.43% based on the share price at the year end. This enhanced
payment takes into account the recent successful exits. Your Board
recognises the importance of paying regular tax-free dividends, and
remains committed to making distributions when realisations are
achieved.
During the financial year, further progress has been achieved
towards your Company's long term growth objective against a
backdrop of economic uncertainty, relating to the UK's intended
withdrawal from the European Union (EU), and an evolving regulatory
environment. Since enactment of the Finance (No. 2) Act 2015, the
framework under which VCTs operate has become increasingly complex,
with further legislation introduced in the Finance Act 2018.
However, your Board is encouraged by the Manager's proactive
response to these market challenges, and believes that Maven has
the requisite levels of skill and experience to ensure that your
Company continues to respond appropriately and remains well
positioned to deliver future growth in line with its investment
objective.
Throughout the year, the majority of the businesses in the
investee portfolio have continued to trade in line with
expectations and the progress achieved by a number of established
private companies has enabled their valuations to be increased. The
Board is encouraged to note that after three years of exceptionally
challenging market conditions, the portfolio companies with
exposure to the oil & gas services sector are seeing an
improvement in trading, with financial performance showing an
increase over the comparative period in the prior year. The
valuations of a number of these assets had previously been reduced
in response to market conditions, and those conservative valuations
will be maintained until there is evidence of a sustained market
recovery. There are also a small number of businesses that are
operating behind plan, or where a market adjustment has impacted on
performance, and the valuations of these assets have been reduced
to reflect this. A detailed analysis of portfolio developments can
be found in the Investment Manager's Review in the Annual
Report.
Following the success of the recent fundraisings, it is pleasing
to report an enhanced rate of new investment during the period,
with the addition of 13 growth oriented private and AIM quoted
companies to the portfolio. The pipeline of new opportunities
remains strong, with the Manager's expanded nationwide office
network delivering a regular supply of prospective investments. The
Board is, however, aware of the challenges that VCT Managers are
facing with regard to securing Advance Assurance from HM Revenue
& Customs (HMRC) for new investments, and notes that this has
resulted in a number of Maven's potential VCT transactions being
lost during the year. The Directors welcomed the announcement in
the 2017 Autumn Budget Statement that the Advanced Assurance
process will be revised, as this should markedly improve the
timescales for transaction completion.
Given the maturing profile of a number of assets in the
portfolio, there has been significant sale and realisation activity
during the year. In October 2017, an exit was achieved from
Crawford Scientific, a leading supplier of chromatography products
and services, through a sale to an institutional buyer which
achieved a return of 4.5 times cost over the three-year investment
period. In December 2017, exits were achieved from SPS (EU), the
UK's largest provider of promotional merchandise, and John
McGavigan, a manufacturer and supplier of plastic components for
the global automotive industry delivering total returns of 2.5
times and 4.2 times cost respectively. In February 2018, the exit
from Endura, a designer and manufacturer of high performance cycle
clothing and accessories, completed for a total return of 1.56
times cost over the holding period. The Board is aware that
discussions are in process regarding further potential exits from a
number of the more mature portfolio assets, although there can be
no certainty that these will lead to profitable realisations.
The Directors believe it is important that Shareholders are
aware of the longer term implications arising from the VCT
legislation, including the Finance (No. 2) Act 2015 and the further
amendments of the Finance Act 2018. The changes to the VCT rules
that were enacted in November 2015 specifically prohibit
participation in management buy-outs or acquisition based
transactions. They also restrict the ability of VCTs to provide
follow-on funding to older companies, including existing portfolio
holdings, unless certain conditions are met. As a result, VCT
managers are required to focus on the provision of development
capital to younger or earlier stage companies which, given their
inherent lack of maturity, have a different risk profile. In
addition, transaction structures are now required to contain a
greater proportion of equity, where previously a higher level of
interest bearing debt was permitted. Over time as the portfolio
evolves, and a greater proportion of holdings are invested in
earlier stage companies, there is likely to be an impact on income
levels. This could result in dividend payments being subject to
variation in terms of quantum and timing, and more closely linked
to realisation activity and the requirement to comply with the VCT
qualification rules. The Board and the Manager will ensure that
this transition is managed carefully in line with your Company's
investment objective.
Regulatory Developments
During the summer of 2017, the Patient Capital Review was
formally extended to consider the effectiveness and value for money
provided by the VCT and Enterprise Investment Scheme sector. The
Manager contributed to this consultation on behalf of its VCT
clients and it was widely anticipated that, as a result of this
review, the 2017 Autumn Budget Statement would include a number of
amendments.
The Directors were encouraged that the measures announced in the
2017 Autumn Budget Statement were intended to preserve the
attractive fundamentals of the VCT scheme, which continues to
provide a valuable bridge between private capital and the UK SME
sector. The availability of long-term patient capital, in line with
Government objectives at what is an increasingly important time for
the UK economy, ensures that entrepreneurial small businesses can
continue to access equity finance, and that investors can benefit
from their success.
Whilst there were no changes to tax reliefs, or the minimum
holding period for these reliefs, and VCT dividends maintain their
tax-free status, a number of less favourable changes were
announced, some of which had been anticipated. As expected, the
focus is to continue to move towards supporting higher risk
investments, which includes the introduction of a 'risk to capital'
based test, certain sector exclusions and measures designed to
assist the financing of knowledge-intensive companies. The
percentage of assets that a VCT must hold in qualifying investments
will increase from 70% to 80% from 6 April 2019. In order to assist
with these requirements, the add-back period on realisations will
be increased from six to twelve months. The Finance Act 2018
received Royal Assent in March 2018 and the Board and the Manager
will continue to consider its implications and take these
developments into account when planning future strategy.
Two major new pieces of legislation were introduced in January
2018; the Packaged Retail and Insurance-based Investment Products
(PRIIPs) Regulation and the Second Markets in Financial Instruments
Directive (MiFID II). PRIIPs requires a Key Information Document
(KID) to be published for each VCT, which must be provided to all
potential investors to enable them to compare the performance of
different VCTs. The form and content of the KID is strictly
prescribed and includes specific information on investment risks,
performance and costs. With regard to MiFID II, the main practical
change for investment companies is the requirement for the Manager
to report all transactions in quoted shares, including share buy-
backs, to the FCA to assist in its continued efforts to combat
market abuse.
The General Data Protection Regulation came into force on 25 May
2018, replacing the Data Protection Act 1998. This regulation
enforces the principle of 'privacy by design and by default' and
enshrines new rights for individuals, including the right to be
forgotten and to data portability. The Manager has worked with the
third parties that process Shareholders' personal data to ensure
that their rights under the new regulation are respected.
Dividends
As previously highlighted, following a number of profitable
realisations, the Directors considered it necessary to distribute
an enhanced interim dividend.
The interim dividend in respect of the year ended 31 March 2018,
of 1.75p per Ordinary Share comprising capital only, was paid on 29
March 2018 to Shareholders on the register at close of business on
2 March 2018. No final dividend is proposed and total distributions
for the financial year were 1.75p per Ordinary Share, representing
a yield of 3.43% based on the year-end closing mid-market price of
51.00p. The effect of paying dividends is to reduce the NAV of the
Company by the total cost of the distribution.
Since 2013, Shareholders have received 4.85p per share in
tax-free dividends. Decisions on future distributions will take
into consideration the availability of surplus revenue, the
adequacy of reserves, the proceeds from any further realisations
and the VCT qualifying levels of the portfolio, all of which are
kept under close and regular review by the Board and the
Manager.
Share Buy-backs
Shareholders should be aware that the Board's primary objective
is for the Company to retain sufficient liquid assets for making
new and follow-on 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 delegated authority to the Manager to buy back
shares in the market for cancellation or to be held in treasury,
where such transactions are in the best interests of
Shareholders.
It is intended that, subject to market conditions, available
liquidity and the maintenance of the Company's VCT status, shares
may be bought back at prices representing a discount of between 10%
and 20% of the prevailing NAV per share.
The Future
The Directors are encouraged by growth in the number of
investments during the financial year with the acquisition of a
wide range of interesting new assets, which have the potential to
generate significant returns as they mature and reach exit. The
strategy remains focussed on building a broadly based portfolio of
attractive VCT qualifying private and AIM quoted company holdings
that are capable of generating consistent and positive returns as
they reach maturity and are ultimately realised. It is encouraging
to note that the number of investee company holdings has increased
from 49 in 2014 to 71 at the date of this announcement, including
those new investments completed after the period end.
The pipeline of new investments across Maven's regional network
remains strong, and based on current projections it is anticipated
that the new financial year will continue to see a good level of
investment activity. The Directors are, however, mindful that there
may be a lag in performance during this active investment phase as
it will take time for these new assets to deliver growth in value.
In the long term, the Directors believe the strategy of building a
large, diverse and multi-sector portfolio of investments is the
optimal approach in the pursuit of sustainable investor returns,
although the profile of future dividends may be less predictable,
with a greater dependency on realisations.
Brian May
Chairman
6 July 2018
Business Report
This Business Report is intended to provide an overview of the
strategy and business model of the Company as well as the key
measures used by the Directors in overseeing its management. The
Company is a venture capital trust, which invests in accordance
with the investment objective set out below.
Investment Objective
The Company aims to achieve long-term capital appreciation and
generate income for Shareholders.
Business Model and Investment Policy
Under an investment policy approved by the Directors, the
Company intends to achieve its objective by:
-- investing the majority of its funds in a diversified
portfolio of shares and securities in smaller, unquoted UK
companies and AIM/NEX quoted companies which meet the criteria for
VCT qualifying investments and have strong growth potential;
-- investing no more than GBP1 million in any company in one
year and no more than 15% of the Company's assets by cost in one
business at any time; and
-- borrowing up to 15% of net asset value, if required and only
on a selective basis, in pursuit of its investment strategy.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company are as
follows:
Investment Risk
Many of the Company's investments are in small and medium sized
unlisted and AIM/NEX quoted companies, some of which may be in the
early stages of their development and, by their nature, have a
higher level of risk and lower liquidity than investments in large
quoted companies. The Board aims to limit the risk attaching to the
investment portfolio as a whole by ensuring that a structured
selection, monitoring and realisation process is applied by the
Manager. The Board reviews the investment portfolio with the
Manager on a regular basis.
The Company manages and minimises investment risk by:
-- diversifying across a large number of companies;
-- diversifying across a range of economic sectors;
-- actively and closely monitoring the progress of investee companies;
-- co-investing with other clients of the Manager;
-- ensuring valuations of underlying investments are made
accurately and fairly (see Notes to the Financial Statements 1(e)
and 1(f) for further detail);
-- taking steps to ensure that share price discount is managed appropriately; and
-- choosing and appointing an FCA authorised investment manager
with the appropriate skills, experience and resources required to
achieve the investment objectives above, with ongoing monitoring to
ensure the Manager is performing in line with expectations.
An explanation of certain risks and how they are managed is
contained in Note 16 to the Financial Statements.
Financial and Liquidity Risk
As most of the investments require a medium to long term
commitment and are relatively illiquid, the Company retains a
portion of the portfolio in cash or cash equivalents in order to
finance any new and follow-on investment opportunities. The Company
has only limited direct exposure to currency risk and does not
enter into any derivative transactions.
Economic Risk
The valuation of investment companies may be affected by
underlying economic conditions such as fluctuating interest rates
and the availability of bank finance.
The economic and market environment is kept under constant
review and the investment strategy of the Company adapted so far as
is possible to mitigate emerging risks.
Credit Risk
The Company may hold financial instruments and cash deposits and
is dependent on counterparties discharging their agreed
responsibilities. The Directors consider the creditworthiness of
the counterparties to such instruments and seek to ensure that
there is no undue concentration of exposure to any one party.
Internal Control Risk
The Board reviews regularly the system of internal controls,
both financial and non-financial, operated by the Company, the
Manager and other key third party outsourcers such as the
Custodian, Company Secretary and Registrar. These include controls
designed to ensure that the Company's assets are safeguarded, that
all records are complete and accurate and that the third parties
have adequate controls in relation to the prevention of data
protection and cyber security failings.
VCT Qualifying Status Risk
The Company operates in a complex regulatory environment and
faces a number of related risks, including:
-- becoming subject to capital gains tax on the sale of its
investments as a result of a breach of Section 274 of the Income
Tax Act 2007;
-- loss of VCT status and consequent loss of tax reliefs
available to Shareholders as a result of a breach of the VCT
Regulations;
-- loss of VCT status and reputational damage as a result of a
serious breach of other regulations such as the FCA Listing Rules
and the Companies Act 2006; and
-- increased investment restrictions resulting from EU State Aid
Rules, incorporated by the Finance (No. 2) Act 2015 and the Finance
Act 2018.
The Board works closely with the Manager to ensure compliance
with all applicable and upcoming legislation, such that VCT
qualifying status is maintained. Further information on the
management of this risk is detailed under other headings in this
Business Report.
Legislative and Regulatory Risk
In order to maintain its approval as a VCT, the Company is
required to comply with current VCT legislation in the UK as well
as the EU State Aid Rules. Changes in the future to either
legislation could have an adverse impact on Shareholder investment
returns whilst maintaining the Company's VCT status. The Board and
the Manager continue to make representations where appropriate,
either directly or through relevant industry bodies such as the
British Private Equity & Venture Capital Association
(BVCA).
The Company has retained Philip Hare & Associates LLP as VCT
advisers.
Breaches of other regulations including, but not limited to, the
Companies Act 2006, the FCA Listing Rules, the FCA Disclosure,
Guidance and Transparency Rules or the Alternative Investment Fund
Managers Directive (AIFMD), could lead to a number of detrimental
outcomes and reputational damage. Breaches of controls by service
providers to the Company could also lead to reputational damage or
loss.
The AIFMD, which regulates the management of alternative
investment funds, including VCTs, introduced an authorisation and
supervisory regime for all investment companies in the EU. The
Company is approved by the FCA as a self-managed small registered
UK AIFM under the AIFMD.
The Company is also required to comply with tax legislation
under the Foreign Account Tax Compliance Act and the Common
Reporting Standard. The Company has appointed Link Asset Services
to act on its behalf to report annually to HMRC and ensure
compliance with this legislation.
Political Risk
In a referendum held on 23 June 2016, the UK voted to leave the
EU (a process informally known as Brexit). The formal process of
implementing this decision exists in Article 50 of the Lisbon
Treaty, which was invoked on 29 March 2017. The political, economic
and legal consequences of the referendum vote are not yet known. It
is possible that investments in the UK may be more difficult to
value and assess for suitability of risk, harder to buy or sell and
may be subject to greater or more frequent rises and falls in
value. In the longer term, there is likely to be a period of
uncertainty as the UK seeks to negotiate its exit from the EU. The
UK's laws and regulations concerning funds may, in future, diverge
from those of the EU. This may lead to changes in the operation of
the Company or the rights of investors in the territories in which
the shares of the Company may be promoted and sold.
On a regular basis, the Board reviews the political situation
together with any associated changes to the economic, regulatory
and legislative environment in order to ensure that any risks
arising are mitigated as effectively as possible.
An explanation of certain economic and financial risks and how
they are managed is also contained in Note 16 to the Financial
Statements contained within the Annual Report.
Statement of Compliance with Investment Policy
The Company is adhering to its stated investment policy and
managing the risks arising from it. This can be seen in various
tables and charts throughout the Annual Report, and from
information provided in the Chairman's Statement and the Investment
Manager's Review. A review of the Company's business, its position
as at 31 March 2018 and its performance during the year then ended
is included in the Chairman's Statement, which also includes an
overview of the Company's business model and strategy.
The management of the investment portfolio has been delegated to
Maven, which also provides company secretarial, administrative and
financial management services to the Company. The Board is
satisfied with the depth and breadth of the Manager's resources and
its network of offices, which supply new deals and enable it to
monitor the geographically widespread portfolio of companies
effectively.
The Investment Portfolio Summary within the Annual Report
discloses the investments in the portfolio and the degree of
co-investment with other clients of the Manager. The tabular
analysis of the unlisted and quoted portfolio contained within the
Annual Report shows that the portfolio is diversified across a
variety of sectors and deal types. The level of VCT qualifying
investment is monitored by the Manager on a daily basis and
reported to the Risk Committee quarterly.
Key Performance Indicators
At each Board Meeting the Directors consider a number of
Alternative Performance Measures (APMs) to assess the Company's
success in achieving its objectives, and these also enable
Shareholders and investors to gain an understanding of its
business. The key performance indicators are as follows:
-- NAV total return;
-- cumulative dividends paid;
-- share price discount to NAV;
-- investment income; and
-- operational expenses.
The NAV total return is a measure of Shareholder value that
includes the current NAV per share and the sum of dividends paid to
date. Cumulative dividends paid is the total amount of both capital
and income distributions paid since the launch of the Company. The
Directors seek to pay dividends to comply with the VCT rules,
taking account of the level of distributable reserves, profitable
realisations in each accounting period and the Company's future
cash flow projections. The share price discount to NAV is the
percentage by which the mid-market price of an investment is lower
than its net asset value per share.
Definitions of these APMs can be found in the Glossary in the
Annual Report. A historical record of some of these measures is
shown in the Financial Highlights section of the Annual Report. The
change in the profile of the portfolio is reflected in the Summary
of Investment Changes on page 12 of the Annual Report, and the
Board reviews the Company's investment income and operational
expenses on a quarterly basis as the Directors consider that both
of these elements are important components in the generation of
Shareholder returns. Further information can be found in Notes 2
and 4 to the Financial Statements within the Annual Report.
There is no meaningful VCT index against which to compare the
financial performance of the Company. However, for reporting to the
Board and Shareholders, the Manager uses comparisons with
appropriate indices. The Directors also consider non-financial
performance measures, such as the flow of investment proposals, and
ranking of the VCT sector by independent analysts.
In addition, the Directors will consider economic, regulatory
and political trends and factors that may impact on the Company's
future development and performance.
Valuation Process
Investments held by Maven Income and Growth VCT 6 PLC in
unquoted companies are valued in accordance with the International
Private Equity and Venture Capital Valuation Guidelines.
Investments quoted or traded on a recognised stock exchange are
valued at their bid prices.
Share Buy-backs
At the forthcoming AGM, the Board will seek the necessary
Shareholder authority to conduct a share buy-back programme under
appropriate circumstances.
Employee, Environmental and Human Rights Policy
The Company has no direct employee or environmental
responsibilities, nor is it responsible for the emission of
greenhouse gases. However, the Directors will consider economic,
regulatory and political trends and features that may impact on the
Company's future development and performance. The Board's principal
responsibility to Shareholders is to ensure that the investment
portfolio is managed and invested properly. The management of the
portfolio is undertaken by the Manager through members of its
portfolio management team. The Manager engages with the Company's
underlying investee companies in relation to their corporate
governance practices and in developing their policies on social,
community and environmental matters and further information may be
found in the Statement of Corporate Governance within the Annual
Report. In light of the nature of the Company's business, there are
no relevant human rights issues and, therefore, the Company does
not have a human rights policy.
Independent Auditor
The Company's Independent Auditor is required to report if there
are any material inconsistencies between the content of the
Strategic Report and the Financial Statements. The Independent
Auditor's Report can be found on within the Annual Report.
Future Strategy
The Board and Manager intend to maintain the policies set out
above for the year ending 31 March 2019 as it is believed that
these are in the best interests of Shareholders.
Approval
The Business Report, and the Strategic Report as a whole, was
approved by the Board of Directors and signed on its behalf by:
Brian May
Director
6 July 2018
INCOME STATEMENT
For the Year Ended 31 March 2018
Year ended 31 March Year ended 31 March
2018 2017
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ -------- -------- -------- -------- -------- --------
(Losses)/gains on investments - (98) (98) - 241 241
Income from investments 276 - 276 142 - 142
Other income 25 - 25 7 - 7
Investment management fees (118) (473) (591) (75) (300) (375)
Other expenses (194) - (194) (181) - (181)
------------------------------ -------- -------- -------- -------- -------- --------
Net return on ordinary (11) (571) (582) (107) (59) (166)
activities before taxation
Tax on ordinary activities - - - - - -
------------------------------ -------- -------- -------- -------- -------- --------
Return attributable to Equity
Shareholders (11) (571) (582) (107) (59) (166)
------------------------------ -------- -------- -------- -------- -------- --------
Earnings per share (pence) (0.03) (1.39) (1.42) (0.37) (0.21) (0.58)
------------------------------ -------- -------- -------- -------- -------- --------
All gains and losses are recognised in the Income Statement.
All items in the above statement are derived from continuing
operations. The Company has only one class of business and one
reportable segment, the results of which are set out in the Income
Statement and Balance Sheet. The company derives its income from
investments made in shares, securities and bank deposits.
There are no potentially dilutive capital instruments in issue
and therefore no diluted earnings per share figures are relevant.
The basic and diluted earnings per share are therefore
identical.
The accompanying Notes are an integral part of the Financial
Statements.
Statement of Changes in Equity
For the Year ended 31 March 2018
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ---------------- ----------------- ----------------- ------------------ ------------------- -------------------- --------------- -------------
At 31 March
2017 4,003 5,864 (1,246) 307 15,488 40 (1,035) 23,421
Net return - - (25) (546) - - (11) (582)
Dividends
paid - - (819) - - - - (819)
Repurchase
and
cancellation
of shares (50) - - - (261) 50 - (261)
Net proceeds
of share
issue 137 668 - - - - - 805
Net proceeds
of DIS issue 3 11 - - - - - 14
-------------- ---------------- ----------------- ----------------- ------------------ ------------------- -------------------- --------------- -------------
At 31 March
2018 4,093 6,543 (2,090) (239) 15,227 90 (1,046) 22,578
-------------- ---------------- ----------------- ----------------- ------------------ ------------------- -------------------- --------------- -------------
For the year ended 31 March 2017
Share Capital Capital Special Capital
Share premium reserve reserve distributable redemption Revenue
capital account realised unrealised reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ----------------- ----------------- ----------------- ------------------ ------------------- -------------------- --------------- ---------------
At 31 March
2016 2,078 6,784 (1,189) 309 2,257 2,919 (857) 12,301
Net return - - (57) (2) - - (107) (166)
Dividends
paid - - - - - - (71) (71)
Repurchase
and
cancellation
of shares (40) - - - (211) 40 - (211)
Net proceeds
of share
issue 1,965 9,618 - - - - - 11,583
Cancellation
of share
premium
account - (10,538) - - 10,538 - - -
Cancellation
of capital
redemption
reserve - - - - 2,919 (2,919) - -
Costs
relating
to
cancellation
of share
premium
account and
capital
redemption
reserve - - - - (15) - - (15)
-------------- ----------------- ----------------- ----------------- ------------------ ------------------- -------------------- --------------- ---------------
At 31 March
2017 4,003 5,864 (1,246) 307 15,488 40 (1,035) 23,421
-------------- ----------------- ----------------- ----------------- ------------------ ------------------- -------------------- --------------- ---------------
The accompanying Notes are an integral part of the Financial
Statements.
Balance Sheet
As at 31 March 2018
31 March 2018 31 March 2017
GBP'000 GBP'000
-------------------------------------- ------------- -------------
Fixed assets 9,282 5,478
Investments at fair value through
profit or loss 241 60
Current assets 13,093 18,129
Debtors
Cash
-------------------------------------- ------------- -------------
Creditors 13,334 18,189
Amounts falling due within one year (38) (246)
-------------------------------------- ------------- -------------
Net current assets 13,296 17,943
-------------------------------------- ------------- -------------
Net assets 22,578 23,421
-------------------------------------- ------------- -------------
Capital and reserves
Called up share capital 4,093 4,003
Share premium account 6,543 5,864
Capital reserve - realised (2,090) (1,246)
Capital reserve - unrealised (239) 307
Special distributable reserve 15,227 15,488
Capital redemption reserve 90 40
Revenue reserve (1,046) (1,035)
-------------------------------------- ------------- -------------
Net assets attributable to Ordinary
Shareholders 22,578 23,421
-------------------------------------- ------------- -------------
Net Asset Value per Ordinary Share
(pence) 55.16 58.51
The Financial Statements of Maven Income and Growth VCT 6 PLC,
registered number 3870187, were approved by the Board and were
signed on its behalf by:
Brian May
Director
6 July 2018
The accompanying Notes are an integral part of the Financial
Statements.
Cash Flow Statement
For the Year ended 31 March 2018
Year ended 31 March Year ended 31 March
2018 2017
GBP'000 GBP'000
-------------------------------------- ------------------- -------------------
Net cash flow from operating
activities (779) (574)
Cash flows from investing activities
Investment income received 243 125
Deposit interest received 25 7
Purchase of investments (6,000) (2,069)
Sale of investments 1,736 8,847
-------------------------------------- ------------------- -------------------
Net cash flows from investing
activities (3,996) 6,910
-------------------------------------- ------------------- -------------------
Cash flows from financing activities
Equity dividends paid (819) (71)
Issue of Ordinary Shares 819 11,583
Repurchase of Ordinary Shares (261) (211)
Costs relating to cancellation
of share premium account - (15)
====================================== =================== ===================
Net cash flows from financing
activities (261) 11,286
====================================== =================== ===================
(Decrease)/increase in cash (5,036) 17,622
-------------------------------------- ------------------- -------------------
Cash at beginning of year 18,129 507
Cash at end of year 13,093 18,129
The accompanying Notes are an integral part of the Financial
Statements.
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2018
1. Accounting Policies
(a) Basis of preparation
The Financial Statements have been prepared under the historical
cost convention, as modified by the revaluation of investments and
in accordance with FRS 102, The Financial Reporting Standard
applicable in the UK and Republic of Ireland, and in accordance
with the Statement of Recommended Practice for Investment Trust
Companies and Venture Capital Trusts (the SORP) issued by the
Association of Investment Companies (AIC) in November 2014.
(b) Income
Dividends receivable on equity shares and unit trusts are
treated as revenue for the period on an ex-dividend basis. Where no
ex-dividend date is available dividends receivable on or before the
year end are treated as revenue for the period. Provision is made
for any dividends not expected to be received. The fixed returns on
debt securities and non-equity shares are recognised on a time
apportionment basis so as to reflect the effective interest rate on
the debt securities and shares. Provision is made for any fixed
income not expected to be received. Interest receivable from cash
and short term deposits and interest payable are accrued to the end
of the year.
(c) Expenses
All expenses are accounted for on an accruals basis and charged
to the Income Statement. Expenses are charged through the revenue
account except as follows:
-- expenses which are incidental to the acquisition and disposal
of an investment are charged to capital; and
-- expenses are charged to realised capital reserves where a
connection with the maintenance or enhancement of the value of the
investments can be demonstrated. In this respect the investment
management fee has been allocated 20% to revenue and 80% to
realised capital reserves to reflect the Company's investment
policy and prospective income and capital growth.
(d) Taxation
Deferred taxation is recognised in respect of all timing
differences that have originated but not reversed at the balance
sheet date, where transactions or events that result in an
obligation to pay more tax in the future or right to pay less tax
in the future have occurred at the balance sheet date. This is
subject to deferred tax assets only being recognised if it is
considered more likely than not that there will be suitable profits
from which the future reversal of the underlying timing differences
can be deducted. Timing differences are differences arising between
the Company's taxable profits and its results as stated in the
Financial Statements which are capable of reversal in one or more
subsequent periods.
Deferred tax is measured on a non-discounted basis at the tax
rates that are expected to apply in the periods in which timing
differences are expected to reverse, based on tax rates and laws
enacted or substantively enacted at the balance sheet date.
The tax effect of different items of income/gain and
expenditure/loss is allocated between capital reserves and revenue
account on the same basis as the particular item to which it
relates using the Company's effective rate of tax for the
period.
UK Corporation tax is provided at amounts expected to be
paid/recovered using the tax rates and laws that have been enacted
or substantively enacted at the balance sheet date.
(e) Investments
In valuing unlisted investments the Directors follow the
criteria set out below. These procedures comply with the revised
International Private Equity and Venture Capital Valuation
Guidelines (IPEVCV) for the valuation of private equity and venture
capital investments. Investments are recognised at their trade date
and are designated by the Directors as fair value through profit
and loss. At subsequent reporting dates, investments are valued at
fair value, which represents the Directors' view of the amount for
which an asset could be exchanged between knowledgeable and willing
parties in an arm's length transaction. This does not assume that
the underlying business is saleable at the reporting date or that
its current shareholders have an intention to sell their holding in
the near future.
A financial asset or liability is generally derecognised when
the contract that gives rise to it is settled, sold, cancelled or
expires.
1. For early stage investments completed in the reporting
period, fair value is determined using the Price of Recent
Investment Method, except that adjustments are made when there has
been a material change in the trading circumstances of the investee
company.
2. Whenever practical, recent investments will be valued by
reference to a material arm's length transaction or a quoted
price.
3. Mature companies are valued by applying a multiple to their
prospective earnings to determine the enterprise value of the
company.
3.1 To obtain a valuation of the total ordinary share capital
held by management and the institutional investors, the value of
third party debt, institutional loan stock, debentures and
preference share capital is deducted from the enterprise value. The
effect of any performance related mechanisms is taken into account
when determining the value of the ordinary share capital.
3.2 Preference shares, debentures and loan stock are valued
using the Price of Recent Investment Method. When a redemption
premium has accrued, this will only be valued if there is a
reasonable prospect of it being paid. Preference shares which carry
a right to convert into ordinary share capital are valued at the
higher of the Price of Recent Investment Method basis and the
price/earnings basis.
4. In the absence of evidence of a deterioration, or strong
defensible evidence of an increase in value, the fair value is
determined to be that reported at the previous balance sheet
date.
5. All unlisted investments are valued individually by the
portfolio management team of Maven Capital Partners UK LLP. The
resultant valuations are subject to detailed scrutiny and approval
by the Directors of the Company.
6. In accordance with normal market practice, investments listed
on the Alternative Investment Market or a recognised stock exchange
are valued at their bid market price.
(f) Fair value measurement
Fair value is defined as the price that the Company would
receive upon selling an investment in a timely transaction to an
independent buyer in the principal or the most advantageous market
of the investment. A three-tier hierarchy has been established to
maximise the use of observable market data and minimise the use of
unobservable inputs and to establish classification of fair value
measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset
or liability, including assumptions about risk, for example, the
risk inherent in a particular valuation technique used to measure
fair value including such a pricing model and/or the risk inherent
in the inputs to the valuation technique. Inputs may be observable
or unobservable.
Observable inputs are inputs that reflect the assumptions market
participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the
reporting entity.
Unobservable inputs are inputs that reflect the reporting
entity's own assumptions about the assumptions market participants
would use in pricing the asset or liability developed based on best
information available in the circumstances
The three-tier hierarchy of inputs is summarised in the three
broad levels listed below.
-- Level 1 - the unadjusted quoted price in an active market for
identical assets or liabilities that the entity can access at the
measurement date.
-- Level 2 - inputs other than quoted prices included within
Level 1 that are observable (ie developed using market data) for
the asset or liability, either directly or indirectly.
-- Level 3 - inputs are unobservable (ie for which market data
is unavailable) for the asset or liability.
(g) Gains and losses on investments
When the Company sells or revalues its investments during the
year, any gains or losses arising are credited/charged to the
Income Statement.
(h) Critical accounting judgements and key sources of estimation uncertainty
Disclosure is required of judgements and estimates made by the
Board and the Manager in applying the accounting policies that have
a significant effect on the Financial Statements. The area
involving the highest degree of judgement and estimates is the
valuation of unlisted investments recognised in Note 8 and
explained in Note 1 (e) above.
In the opinion of the Board and the Manager, there are no
critical accounting judgements.
Reserves
Share premium account
The share premium account represents the premium above nominal
value received by the Company on issuing shares net of issue
costs.
Capital reserves
Gains or losses on investments realised in the year that have
been recognised in the Income Statement are transferred to the
capital reserve realised account on disposal. Furthermore, any
prior unrealised gains or losses on such investments are
transferred from the capital reserve unrealised account to the
capital reserve realised account on disposal.
Increases and decreases in the fair value of investments are
recognised in the Income Statement and are then transferred to the
capital reserve unrealised account. The capital reserve realised
account also represents capital dividends, capital investment
management fees and the tax effect of capital items.
Special distributable reserve
The total cost to the Company of the repurchase and cancellation
of shares is represented in the special distributable reserve
account.
Capital redemption reserve
The nominal value of shares repurchased and cancelled is
represented in the capital redemption reserve.
Revenue reserve
The revenue reserve represents accumulated profits retained by
the Company that have not been distributed to Shareholders as a
dividend.
Return per Ordinary Share
Year ended 31 March Year ended 31 March
2018 2017
------------------------------------ ------------------- -------------------
The returns per share have been 41,117,461 28,546,015
based on the following figures:
Weighted average number of Ordinary (GBP11,000) (GBP107,000)
Shares
Revenue return (GBP571,000) (GBP59,000)
Capital return
------------------------------------ ------------------- -------------------
Total return (GBP582,000) (GBP166,000)
------------------------------------ ------------------- -------------------
Net Asset Value per Ordinary Share
Net asset value per Ordinary Share as at 31 March 2018 has been
calculated using the number of Ordinary Shares in issue at that
date of 40,927,657 (2017: 40,032,061).
Directors' Responsibility Statement
The Directors believe that, to the best of their knowledge:
-- the Financial Statements have been prepared in accordance
with the applicable accounting standards and give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company as at 31 March 2018 and for the year to that
date;
-- the Directors' Report includes a fair review of the
development and performance of the Company, together with a
description of the principal risks and uncertainties that it faces;
and
-- the Annual Report and Financial Statements taken as a whole
is fair, balanced and understandable and provides the information
necessary for Shareholders to assess the Company's position and
performance, business model and strategy.
Other information
The Annual General Meeting of the Company will be held on 6
September 2018, commencing at 10.00 am at 5th Floor, 1-2 Royal
Exchange Buildings, London, EC3V 3LF.
Copies of this announcement and copies of the Annual Report and
Financial Statements for the year ended 31 March 2018 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, Fifth Floor, 1-2 Royal Exchange
Buildings, London EC3V 3LF; and on the Company's website at:
www.mavencp.com/migvct6.
The Annual Report and Financial Statements for the year ended 31
March 2018 will be issued to Shareholders and filed with the
Registrar of Companies in due course.
The financial information contained within this announcement
does not constitute the Company's statutory Financial Statements as
defined in the Companies Act 2006. The statutory Financial
Statements for the year ended 31 March 2017 have been delivered to
the Registrar of Companies and contained an audit report which was
unqualified and did not constitute statements under S498(2) or
S498(3) of the Companies Act 2006.
Neither the content of the Company's website nor the contents of
any website accessible from hyperlinks on the Company's website (or
any other website) is incorporated into, or forms part of, this
announcement.
The Annual Report will be submitted to the National Storage
Mechanism and, in due course, will be available for inspection at
www.morningstar.co.uk/uk/NSM.
By order of the Board
Maven Capital Partners UK LLP
Secretary
6 July 2018
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR RFMATMBTMBBP
(END) Dow Jones Newswires
July 06, 2018 11:25 ET (15:25 GMT)
Maven Income And Growth ... (LSE:MIG6)
Historical Stock Chart
From Jul 2024 to Aug 2024
Maven Income And Growth ... (LSE:MIG6)
Historical Stock Chart
From Aug 2023 to Aug 2024