TIDMMIG3
RNS Number : 8412G
Maven Income and Growth VCT 3 PLC
21 July 2023
Maven Income and Growth VCT 3 PLC
Interim Results for the Six Months Ended 31 May 2023
Highlights
-- NAV total return at 31 May 2023 of 150.69p per share
-- NAV at 31 May 2023 of 53.62p per share, after payment of the
2022 final dividend of 1.90p per share on 26 April 2023
-- Interim dividend of 0.50p per share declared for payment on 25 August 2023
-- Offer for Subscription closed, raising GBP6.75 million, with
a further fund raising to be launched in Autumn 2023
-- Two new private companies added to the portfolio
Overview
During the first half of the financial year, the macroeconomic
environment remained challenging and growth prospects continue to
be suppressed by ongoing 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. Whilst NAV
total return has reduced modestly, compared to the position at the
previous year end, most companies in the unlisted portfolio have
continued to deliver revenue growth and achieve their commercial
milestones. Notably, some of the most resilient performances have
been from companies in the early stage portfolio, which helps to
demonstrate the strength of the investment strategy that your
Company has been following for a number of years. The Board and the
Manager recognise the importance to Shareholders of regular tax
free distributions and the Directors were pleased to declare an
interim dividend of 0.50p per share for payment in August 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 remain
challenging for many businesses and consumers. Notwithstanding the
market conditions, your Company has delivered a robust performance
and it is worthwhile noting that across the portfolio the level of
external debt and direct exposure to consumer facing sectors is
low. 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.
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 markets such as cyber security, data
analytics, healthcare and Software-as-a-Service (SaaS), 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 annual recurring revenue (ARR) and achieving
further scale. In certain cases, where there has been a sustained
positive performance, valuations have been uplifted. However, the
valuation impact of improved revenues has been curtailed by the
well-publicised reduction in valuation multiples across public and
private markets, particularly within the technology sector.
In May 2023, your Company closed its most recent Offer for
Subscription, raising a total of GBP6.75 million across the 2022/23
and 2023/24 tax years. This new capital provides additional
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 have the
potential for further strong revenue growth. This is often measured
in terms of contracted 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 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.
Within the AIM quoted portfolio, performance has continued to be
soft and, despite the generally encouraging underlying performance
by most investee companies, certain share prices have declined
further. Although some listed markets have experienced a recovery,
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 reduced. For the
majority of holdings, the share price weakness reflects the general
market volatility that has persisted throughout the period and the
reduced investor appetite for smaller, earlier stage growth
businesses. The Board and the Manager nevertheless believe that
selective exposure to AIM offers scope to broaden the portfolio, as
well as providing the ability to generate early liquidity if
companies perform well. The Manager will, however, remain cautious
towards any new AIM investments until there is clear evidence of a
recovery, and an improvement in the quality and quantity of
companies seeking VCT funding.
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 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.
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 0.50p per share will be paid on 25 August 2023 to
Shareholders who are on the register at 28 July 2023. Since the
Company's launch, and after receipt of this interim dividend, a
total of 97.57p per share will have been paid in tax free
Shareholder distributions. It should be noted that 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 share at the immediately
preceding year end.
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
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.
In order for the DIS to apply to the interim dividend that is
due to be paid on 25 August 2023, a mandate form must be received
by the Registrar (The City Partnership) before 11 August 2023, this
being the relevant dividend election date, and that election will
apply to all future dividends until the Registrar is instructed to
the contrary. The mandate form, terms & conditions and full
details of the scheme (including tax considerations) are available
from the Company's webpage at: mavencp.com/migvct3. Election to
participate in the DIS can also be made through the Registrar's
online investor hub at: 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.
Offers for Subscription
On 7 October 2022, your Company, alongside Maven Income and
Growth VCT PLC, Maven Income and Growth VCT 4 PLC and Maven Income
and Growth VCT 5 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 GBP6.75 million across
the 2022/23 and 2023/24 tax years.
With respect to the 2022/23 tax year, an allotment of 6,389,151
new Ordinary Shares completed on 8 February 2023, with a further
allotment of 982,796 new Ordinary Shares on 3 March 2023 and a
final allotment of 2,870,790 new Ordinary Shares on 5 April 2023.
An allotment of 1,441,593 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.
Portfolio Developments
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 to
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 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 named the 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 that will be phased in over time 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, Horizon has established a portfolio of
three crematoria, all of which are trading ahead of plan and the
business continues 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 achieved 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 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 by 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. Martel Instruments, a
manufacturer and supplier of custom-built compact printers and data
loggers, traded very well during the pandemic, buoyed by high
demand from customers within the medical devices market. More
recently, however, trading has been affected by the well-publicised
global shortage of micro processing chips, which are used in
printers. The disruption to the supply chain has had an impact on
performance during the reporting period and, consequently, the
valuation has been reduced. 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.
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 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 the platform functionality.
The following investments were 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 598
------------------------------------------ ------------ ----------------------------- -----------
Learning & development/
iAM Compliant Limited May 2023 recruitment technology 149
------------------------------------------ ------------ ----------------------------- -----------
Total new unlisted 747
--------------------------------------------------------------------------------------- -----------
Follow-on unlisted
------------------------------------------ ------------ ----------------------------- -----------
Draper & Dash Limited Pharmaceuticals,
(trading as RwHealth) April 2023 biotechnology & healthcare 75
------------------------------------------ ------------ ----------------------------- -----------
Enpal Limited (trading as
Guru Systems) April 2023 Software & technology 82
------------------------------------------ ------------ ----------------------------- -----------
February
Liftango Group Limited 2023 Software & technology 200
------------------------------------------ ------------ ----------------------------- -----------
February
MirrorWeb Limited 2023 Software & technology 90
------------------------------------------ ------------ ----------------------------- -----------
Turnkey Group (UK) Holdings
Limited March 2023 Software & technology 299
------------------------------------------ ------------ ----------------------------- -----------
Zinc Digital Business Solutions
Limited April 2023 Software & technology 19
------------------------------------------ ------------ ----------------------------- -----------
Total follow-on unlisted 765
--------------------------------------------------------------------------------------- -----------
Total unlisted 1,512
--------------------------------------------------------------------------------------- -----------
Open-ended investment companies(1)
------------------------------------------ ------------ ----------------------------- -----------
Royal London Short Term Fixed February
Income Fund (Class Y Income) 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) April 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 1,010
------------------------------------------ ------------ ----------------------------- -----------
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 6,013
--------------------------------------------------------------------------------------- -----------
Investment
Cost
Investments 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 264
--------------------------------------- ------------ ------------------ -----------
Alliance Trust PLC May 2023 Investment trust 149
--------------------------------------- ------------ ------------------ -----------
Apax Global Alpha Limited May 2023 Investment trust 60
--------------------------------------- ------------ ------------------ -----------
HgCapital Trust PLC March 2023 Investment trust 250
--------------------------------------- ------------ ------------------ -----------
ICG Enterprise Trust PLC May 2023 Investment trust 73
--------------------------------------- ------------ ------------------ -----------
JPMorgan Global Growth & Income
PLC May 2023 Investment trust 150
--------------------------------------- ------------ ------------------ -----------
NB Private Equity Partners Limited March 2023 Investment trust 371
--------------------------------------- ------------ ------------------ -----------
Total private equity investment
trusts 1,317
------------------------------------------------------------------------- -----------
Real estate investment trust(1)
--------------------------------------- ------------ ------------------ -----------
Impact Healthcare REIT PLC May 2023 Investment trust 167
--------------------------------------- ------------ ------------------ -----------
Total real estate investment
trust 167
------------------------------------------------------------------------- -----------
Infrastructure investment trusts(1)
--------------------------------------- ------------ ------------------ -----------
3i Infrastructure PLC May 2023 Investment trust 270
--------------------------------------- ------------ ------------------ -----------
BBGI Global Infrastructure SA May 2023 Investment trust 260
--------------------------------------- ------------ ------------------ -----------
International Public Partnerships
Limited May 2023 Investment trust 235
--------------------------------------- ------------ ------------------ -----------
JLEN Environmental Assets Group
Limited May 2023 Investment trust 270
--------------------------------------- ------------ ------------------ -----------
Pantheon Infrastructure PLC March 2023 Investment trust 251
--------------------------------------- ------------ ------------------ -----------
Total infrastructure investment
trusts 1,286
------------------------------------------------------------------------- -----------
Total investments 13,295
------------------------------------------------------------------------- -----------
(1) Investments completed as part of the liquidity management
strategy, details of which can be found in the investments table on
pages 12 and 13 of this Interim Report
At the period end, the portfolio stood at 114 unlisted and
quoted investments, at a total cost of GBP48.06 million.
Realisations
The table below gives details of all realisations completed
during the reporting period:
Cost Value Gain/(loss)
of shares at Realised over 30
Year Complete/ disposed 30 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 - - 129 129 129
--------------------------- ----------- ----------- ----------- ------------- ---------- --------- ------------
Ensco 969 Limited (trading
as DPP)(2) 2013 Partial 63 82 63 - (19)
--------------------------- ----------- ----------- ----------- ------------- ---------- --------- ------------
Maven Co-invest Endeavour
Limited Partnership(3) 2013 Complete 2 499 513 511 14
--------------------------- ----------- ----------- ----------- ------------- ---------- --------- ------------
Optoscribe Limited(4) 2018 Complete - - 40 40 40
--------------------------- ----------- ----------- ----------- ------------- ---------- --------- ------------
R&M Engineering Group
Limited 2013 Complete 761 172 120 (641) (52)
--------------------------- ----------- ----------- ----------- ------------- ---------- --------- ------------
Others - - 1 1 1
----------------------------------------------------- ----------- ------------- ---------- --------- ------------
Total unlisted 826 753 866 40 113
----------------------------------------------------- ----------- ------------- ---------- --------- ------------
Money Market Funds
--------------------------- ----------- ----------- ----------- ------------- ---------- --------- ------------
Fidelity Institutional
Liquidity Sterling Fund
(Class F) 2023 Partial 10 - 10 - 10
--------------------------- ----------- ----------- ----------- ------------- ---------- --------- ------------
Total money market funds 10 - 10 - 10
----------------------------------------------------- ----------- ------------- ---------- --------- ------------
Total realisations 836 753 876 40 123
----------------------------------------------------- ----------- ------------- ---------- --------- ------------
(1) Deferred consideration following the sale in March 2021.
(2) Proceeds from loan note repayment, which excludes yield
received and 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.
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 Audit & 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.
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 shares in the 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 should seek to maintain a share
price at a discount that is approximately 5% below the latest
published NAV per share, subject to market conditions, availability
liquidity and the maintenance of the Company's VCT qualifying
status.
Shareholders should be aware 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 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, 1,317,000 shares were bought
back at a total cost of GBP708,000.
VCT 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 the 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 will remain
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 when assessing all private company investments.
Environmental, Social and Governance (ESG)
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, recognising the benefits and
importance of incorporating these core principles into 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 record and monitor ESG information 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 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 to
complete its first UNPRI report to demonstrate its ESG capabilities
and commitment to the Principles. Your Company has multiple
investments in companies with strong ESG credentials that are
achieving growth in expanding markets and the Manager is committed
to maintaining a responsible approach to new and existing
investments. 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.
Constitution of the Board
As announced in December 2022, and in the Annual Report,
Chairman Atul Devani will stand down from the Board and will not
seek re-election at the 2024 AGM. Through its Nomination Committee,
the Board will consider its constitution and Shareholders will be
notified of the appointment of a new non-executive Director in due
course, as well as the Board member that will succeed Atul as
Chairman.
Outlook
With good levels of liquidity, your Company's strategy remains
focused on further growing and developing 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 that a steady
flow of profitable exits occur in support of the objective of
providing Shareholders with regular tax free dividends.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
21 July 2023
Summary of Investment Changes
For the Six Months Ended 31 May 2023
Valuation Net investment/ Appreciation/ Valuation
30 November (disinvestment) (depreciation) 31 May 2023
2022 GBP'000 GBP'000
------------------------- ----------------- ----------------
GBP'000 % GBP'000 %
------------------------- --------- -------- ----------------- ---------------- --------- --------
Unlisted Investments
Equities 29,253 48.8 527 (778) 29,002 47.5
Loan stock 7,861 13.1 173 (426) 7,608 12.5
------------------------- --------- -------- ----------------- ---------------- --------- --------
37,114 61.9 700 (1,204) 36,610 60.0
AIM/AQSE investments(1)
Equities 2,065 3.4 - (371) 1,694 2.8
Listed investments(2)
OEICs - - 3,000 (15) 2,985 4.9
Money market funds - - 6,003 - 6,003 9.8
Investment trusts 1,981 3.3 2,770 30 4,781 7.8
------------------------- --------- -------- ----------------- ---------------- --------- --------
Total investments 41,160 68.6 12,473 (1,560) 52,073 85.3
Other net assets 18,783 31.4 - (9,774) 9,009 14.7
------------------------- --------- -------- ----------------- ---------------- --------- --------
Net assets 59,943 100.0 12,473 (11,334) 61,082 100.0
------------------------- --------- -------- ----------------- ---------------- --------- --------
(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 open-ended investment
companies (OEICs), investment trusts and money market funds.
Investment Portfolio Summary
As at 31 May 2023
% of % of equity
Valuation Cost total % of equity held by
Investment GBP'000 GBP'000 assets held other clients(1)
---------------------------------- ---------- --------- -------- ------------ ------------------
Unlisted
Horizon Ceremonies Limited
(trading as Horizon Cremation) 2,798 1,288 4.7 8.7 44.0
---------------------------------- ---------- --------- -------- ------------ ------------------
Bright Network (UK) Limited 2,359 1,015 4.0 8.9 31.0
---------------------------------- ---------- --------- -------- ------------ ------------------
Rockar 2016 Limited (trading
as Rockar) 1,427 971 2.4 4.3 15.1
---------------------------------- ---------- --------- -------- ------------ ------------------
Ensco 969 Limited (trading
as DPP) 1,302 1,032 2.2 4.8 29.7
================================== ========== ========= ======== ============ ==================
BioAscent Discovery Limited 1,207 199 2.1 5.0 35.0
---------------------------------- ---------- --------- -------- ------------ ------------------
Nano Interactive Group Limited 1,126 625 1.8 3.7 11.2
================================== ========== ========= ======== ============ ==================
NorthRow Limited
(formerly Contego Solutions
Limited) 997 997 1.6 8.7 23.5
---------------------------------- ---------- --------- -------- ------------ ------------------
Relative Insight Limited 953 700 1.6 3.0 28.7
---------------------------------- ---------- --------- -------- ------------ ------------------
CB Technology Group Limited 914 558 1.5 10.6 64.4
================================== ========== ========= ======== ============ ==================
Martel Instruments Holdings
Limited 879 671 1.4 12.4 31.8
================================== ========== ========= ======== ============ ==================
MirrorWeb Limited 865 490 1.4 3.8 46.1
================================== ========== ========= ======== ============ ==================
DiffusionData Limited
(formerly Push Technology
Limited) 855 625 1.4 2.9 13.7
================================== ========== ========= ======== ============ ==================
Vodat Communications Group
(VCG) Holding Limited 852 567 1.4 5.0 26.9
================================== ========== ========= ======== ============ ==================
Delio Limited 821 533 1.3 2.5 11.2
================================== ========== ========= ======== ============ ==================
Filtered Technologies Limited 816 750 1.3 7.6 17.8
================================== ========== ========= ======== ============ ==================
GradTouch Limited 800 400 1.3 4.0 30.7
================================== ========== ========= ======== ============ ==================
WaterBear Education Limited 785 370 1.3 7.8 31.4
================================== ========== ========= ======== ============ ==================
Hublsoft Group Limited 763 600 1.2 5.5 18.2
================================== ========== ========= ======== ============ ==================
Precursive Limited 750 750 1.2 5.4 28.8
================================== ========== ========= ======== ============ ==================
HCS Control Systems Group
Limited 746 746 1.2 6.1 30.4
================================== ========== ========= ======== ============ ==================
Horizon Technologies Consultants
Limited 746 448 1.2 3.1 14.1
================================== ========== ========= ======== ============ ==================
QikServe Limited 658 658 1.1 3.0 12.8
================================== ========== ========= ======== ============ ==================
Bud Systems Limited 647 647 1.1 3.7 13.3
---------------------------------- ---------- --------- -------- ------------ ------------------
TC Communications Holdings
Limited 645 980 1.1 8.3 21.7
================================== ========== ========= ======== ============ ==================
Cat Tech International Limited 627 627 1.0 6.0 24.0
================================== ========== ========= ======== ============ ==================
2 degrees Limited
(trading as Manufacture 2030) 598 598 1.0 2.1 9.0
================================== ========== ========= ======== ============ ==================
Boomerang Commerce Inc
(trading as CommerceIQ)(2) 580 773 0.9 0.1 0.3
================================== ========== ========= ======== ============ ==================
Whiterock Group Limited 557 320 0.9 5.1 24.9
================================== ========== ========= ======== ============ ==================
Glacier Energy Services Holdings
Limited 544 686 0.9 2.6 25.0
---------------------------------- ---------- --------- -------- ------------ ------------------
As at 31 May 2023
% of % of equity
Valuation Cost total % of equity held by other
Investment GBP'000 GBP'000 assets held clients(1)
----------------------------------- ---------- --------- -------- ------------ ---------------
Unlisted
Liftango Group Limited 498 498 0.8 1.8 12.1
=================================== ========== ========= ======== ============ ===============
CODILINK UK Limited (trading
as Coniq) 450 450 0.7 1.3 3.6
=================================== ========== ========= ======== ============ ===============
Turnkey Group (UK) Holdings
Limited 448 448 0.7 6.9 31.9
=================================== ========== ========= ======== ============ ===============
Summize Limited 448 448 0.7 2.9 30.2
=================================== ========== ========= ======== ============ ===============
mypura.com Group Limited (trading
as Pura) 431 216 0.7 1.1 21.3
=================================== ========== ========= ======== ============ ===============
The Algorithm People Limited 420 420 0.7 6.1 10.2
=================================== ========== ========= ======== ============ ===============
Flow UK Holdings Limited 420 597 0.7 7.0 28.0
=================================== ========== ========= ======== ============ ===============
Enpal Limited (trading as
Guru Systems) 381 381 0.6 3.2 18.4
=================================== ========== ========= ======== ============ ===============
Novatus Global Limited
(formerly Novatus Advisory
Limited) 348 348 0.6 2.3 11.0
=================================== ========== ========= ======== ============ ===============
Biorelate Limited 348 348 0.6 2.0 23.7
=================================== ========== ========= ======== ============ ===============
Plyable Limited 348 348 0.6 3.3 14.1
=================================== ========== ========= ======== ============ ===============
HiveHR Limited 346 346 0.6 4.4 40.2
=================================== ========== ========= ======== ============ ===============
CYSIAM Limited 336 199 0.6 3.5 16.5
=================================== ========== ========= ======== ============ ===============
Project Falcon Topco Limited
(trading as Quorum Cyber)(3) 335 335 0.5 0.8 2.1
=================================== ========== ========= ======== ============ ===============
ORCHA Health Limited 332 332 0.5 1.4 4.2
=================================== ========== ========= ======== ============ ===============
Kanabo GP Limited(4) 331 1,611 0.5 13.5 53.6
=================================== ========== ========= ======== ============ ===============
Growth Capital Ventures Limited 331 319 0.5 5.8 41.6
=================================== ========== ========= ======== ============ ===============
Snappy Shopper Limited 298 298 0.5 0.4 1.3
=================================== ========== ========= ======== ============ ===============
Draper & Dash Limited (trading
as RwHealth) 274 274 0.4 1.0 12.6
=================================== ========== ========= ======== ============ ===============
ebb3 Limited 265 326 0.4 9.3 69.6
=================================== ========== ========= ======== ============ ===============
Shortbite Limited (trading
as Fixtuur) 254 423 0.4 5.6 51.7
=================================== ========== ========= ======== ============ ===============
XR Games Limited 242 149 0.4 0.8 19.4
=================================== ========== ========= ======== ============ ===============
Zinc Digital Business Solutions
Limited 218 218 0.4 3.3 20.6
=================================== ========== ========= ======== ============ ===============
Rico Developments Limited
(trading as Adimo) 200 200 0.3 1.5 8.2
=================================== ========== ========= ======== ============ ===============
FodaBox Limited 199 199 0.3 0.7 4.4
=================================== ========== ========= ======== ============ ===============
iAM Compliant Limited 149 149 0.2 1.9 36.9
=================================== ========== ========= ======== ============ ===============
ISN Solutions Group Limited 127 321 0.2 4.5 50.5
=================================== ========== ========= ======== ============ ===============
Reed Thermoformed Packaging
Limited (trading as iPac) 106 100 0.2 0.5 11.8
=================================== ========== ========= ======== ============ ===============
RevLifter Limited 100 100 0.2 1.0 25.6
=================================== ========== ========= ======== ============ ===============
Other unlisted investments 10 1,206 -
=================================== ========== ========= ======== ============ ===============
Total unlisted 36,610 31,231 60.0
----------------------------------- ---------- --------- -------- ------------ ---------------
As at 31 May 2023
% of % of equity
Valuation Cost total % of equity held by other
Investment GBP'000 GBP'000 assets held clients(1)
------------------------------------ ---------- --------- -------- ------------ ---------------
AIM/AQSE quoted
==================================== ========== ========= ======== ============ ===============
GENinCode PLC 440 598 0.7 3.5 7.5
==================================== ========== ========= ======== ============ ===============
MaxCyte Inc 262 137 0.5 0.1 0.1
==================================== ========== ========= ======== ============ ===============
Faron Pharmaceuticals Oy 194 250 0.3 0.1 -
==================================== ========== ========= ======== ============ ===============
Diaceutics PLC 169 161 0.3 0.3 0.3
==================================== ========== ========= ======== ============ ===============
C4X Discovery Holdings PLC 125 119 0.2 0.3 0.6
==================================== ========== ========= ======== ============ ===============
Destiny Pharma PLC 68 150 0.1 0.3 1.2
==================================== ========== ========= ======== ============ ===============
Spectral MD Holdings PLC 67 99 0.1 0.1 0.1
==================================== ========== ========= ======== ============ ===============
Feedback PLC 67 121 0.1 0.4 1.2
==================================== ========== ========= ======== ============ ===============
AFC Energy PLC 54 57 0.1 - -
==================================== ========== ========= ======== ============ ===============
Polarean Imaging PLC 50 129 0.1 0.1 0.5
==================================== ========== ========= ======== ============ ===============
Eden Research PLC 48 83 0.1 0.4 1.0
==================================== ========== ========= ======== ============ ===============
Crossword Cybersecurity PLC 37 122 0.1 0.4 1.7
==================================== ========== ========= ======== ============ ===============
RUA Life Sciences PLC 32 100 0.1 0.4 1.3
==================================== ========== ========= ======== ============ ===============
ReNeuron Group PLC 22 278 - 0.7 1.4
==================================== ========== ========= ======== ============ ===============
Pelatro PLC 19 146 - 0.6 1.8
==================================== ========== ========= ======== ============ ===============
Vianet Group PLC 18 31 - 0.1 1.4
==================================== ========== ========= ======== ============ ===============
Oncimmune Holdings PLC 10 100 - 0.1 0.4
==================================== ========== ========= ======== ============ ===============
Other quoted investments 12 885 -
==================================== ========== ========= ======== ============ ===============
Total AIM/AQSE quoted 1,694 3,566 2.8
==================================== ========== ========= ======== ============ ===============
Private equity investment
trusts(5)
==================================== ========== ========= ======== ============ ===============
HgCapital Trust PLC 648 420 1.1 - 0.1
==================================== ========== ========= ======== ============ ===============
abrdn Private Equity Opportunities
Trust PLC (formerly Standard
Life Private Equity Trust
PLC) 411 374 0.7 - 0.1
==================================== ========== ========= ======== ============ ===============
ICG Enterprise Trust PLC 382 300 0.6 0.1 0.1
==================================== ========== ========= ======== ============ ===============
NB Private Equity Partners
Limited 346 371 0.6 - -
==================================== ========== ========= ======== ============ ===============
CT Private Equity Trust PLC
(formerly BMO Private Equity
Trust PLC) 337 253 0.6 0.1 0.3
==================================== ========== ========= ======== ============ ===============
Princess Private Equity Holding
Limited 266 270 0.4 0.1 0.1
==================================== ========== ========= ======== ============ ===============
HarbourVest Global Private
Equity Limited 254 167 0.4 - 0.1
==================================== ========== ========= ======== ============ ===============
Apax Global Alpha Limited 240 219 0.4 - 0.1
==================================== ========== ========= ======== ============ ===============
Pantheon International PLC 179 138 0.3 - 0.1
==================================== ========== ========= ======== ============ ===============
JPMorgan Global Growth &
Income PLC 149 150 0.2 - -
==================================== ========== ========= ======== ============ ===============
Alliance Trust PLC 148 149 0.2 - -
==================================== ========== ========= ======== ============ ===============
Total private equity investment
trusts 3,360 2,811 5.5
------------------------------------ ---------- --------- -------- ------------ ---------------
As at 31 May 2023
% of % of equity
Valuation Cost total % of equity held by other
Investment GBP'000 GBP'000 assets held clients(1)
------------------------------------------ ---------- --------- -------- ------------ ---------------
Real estate investment trust(5)
========================================== ========== ========= ======== ============ ===============
Impact Healthcare REIT PLC 172 167 0.3 - 0.1
========================================== ========== ========= ======== ============ ===============
Total real estate investment
trust 172 167 0.3
========================================== ========== ========= ======== ============ ===============
Infrastructure investment
trusts(5)
========================================== ========== ========= ======== ============ ===============
JLEN Environmental Assets
Group Limited 262 270 0.4 - 0.1
========================================== ========== ========= ======== ============ ===============
3i Infrastructure PLC 261 270 0.4 - -
========================================== ========== ========= ======== ============ ===============
BBGI Global Infrastructure
SA 253 260 0.4 - 0.1
========================================== ========== ========= ======== ============ ===============
Pantheon Infrastructure PLC 246 251 0.4 0.1 0.2
========================================== ========== ========= ======== ============ ===============
International Public Partnerships
Limited 227 235 0.4 - -
========================================== ========== ========= ======== ============ ===============
Total infrastructure investment
trusts 1,249 1,286 2.0
========================================== ========== ========= ======== ============ ===============
Open-ended investment companies(5)
========================================== ========== ========= ======== ============ ===============
Royal London Short Term Money
Market Fund (Class Y Income) 1,983 2,000 3.3 - -
========================================== ========== ========= ======== ============ ===============
Royal London Short Term Fixed
Income Fund (Class Y Income) 1,002 1,000 1.6 - 0.1
========================================== ========== ========= ======== ============ ===============
Total open-ended investment
companies 2,985 3,000 4.9
========================================== ========== ========= ======== ============ ===============
Money market funds(5)
------------------------------------------ ---------- --------- -------- ------------ ---------------
Aviva Investors Sterling
Liquidity Fund (Class 3) 1,003 1,002 1.8 - -
========================================== ========== ========= ======== ============ ===============
Aberdeen Standard Liquidity
Fund (Lux) - Sterling Fund
(Class K3) 1,000 1,000 1.6 - -
========================================== ========== ========= ======== ============ ===============
BlackRock Institutional Sterling
Liquidity Fund (Core) 1,000 1,000 1.6 - 0.1
========================================== ========== ========= ======== ============ ===============
Fidelity Institutional Liquidity
Sterling Fund (Class F) 1,000 1,000 1.6 0.1 0.1
========================================== ========== ========= ======== ============ ===============
Goldman Sachs Sterling Government
Liquid Reserves Ireland (Institutional) 1,000 1,000 1.6 0.3 0.3
========================================== ========== ========= ======== ============ ===============
HSBC Sterling Liquidity Fund
(Class A) 1,000 1,000 1.6 - -
========================================== ========== ========= ======== ============ ===============
Total money market funds 6,003 6,002 9.8
========================================== ========== ========= ======== ============ ===============
Total investments 52,073 48,063 85.3
------------------------------------------ ---------- --------- -------- ------------ ---------------
(1) Other clients of Maven Capital Partners UK LLP.
(2) The holding reflects the retained minority interest
following the sale of e.fundamentals (Group) Limited to CommerceIQ
in July 2022.
(3) Retained minority interest following the sale of Quorum
Cyber Security Limited in December 2021.
(4) 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.
(5) 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 - (1,560) (1,560) - (1,378) (1,378) - 626 626
Income from investments 323 - 323 435 - 435 730 - 730
Other income 147 - 147 3 - 3 55 - 55
Investment management
fees (154) (616) (770) (132) (528) (660) (277) (1,111) (1,388)
Other expenses (241) - (241) (179) - (179) (479) - (479)
========================== ======== ======== ======== ======== ======== ======== ======== ======== ========
Net return on ordinary
activities before
taxation 75 (2,176) (2,101) 127 (1,906) (1,779) 29 (485) (456)
Tax on ordinary
activities - - - (8) 8 - - - -
========================== ======== ======== ======== ======== ======== ======== ======== ======== ========
Return attributable
to Equity Shareholders 75 (2,176) (2,101) 119 (1,898) (1,779) 29 (485) (456)
========================== ======== ======== ======== ======== ======== ======== ======== ======== ========
Earnings per share
(pence) 0.07 (1.99) (1.92) 0.13 (2.10) (1.97) 0.03 (0.50) (0.47)
========================== ======== ======== ======== ======== ======== ======== ======== ======== ========
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
Six months ended 31 May 2023 (unaudited)
Non-distributable reserves Distributable reserves
-------------------- --------
Capital Capital Capital Special
Share 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 10,457 19,920 346 7,422 1,050 19,974 774 59,943
Net return - - - (1,545) (15) (616) 75 (2,101)
Dividends paid - - - - - (2,112) - (2,112)
Repurchase and
cancellation
of shares (132) - 132 - - (708) - (708)
Net proceeds of
share issue 1,024 4,801 - - - - - 5,825
Net proceeds of
DIS issue* 42 193 - - - - - 235
-------------------- -------- ------------- ----------- ----------- --------- -------------- -------- --------
At 31 May 2023 11,391 24,914 478 5,877 1,035 16,538 849 61,082
-------------------- -------- ------------- ----------- ----------- --------- -------------- -------- --------
Six months ended 31 May 2022 (unaudited)
Non-distributable reserves Distributable reserves
Capital Capital Capital Special
Share 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 7,866 6,436 287 9,669 (1,823) 26,020 745 49,200
Net return - - - (5,085) 3,707 (520) 119 (1,779)
Dividends paid - - - - - (3,299) - (3,299)
Repurchase and
cancellation
of shares (24) - 24 - - (138) - (138)
Net proceeds of
share issue 2,303 11,841 - - - - - 14,144
Net proceeds of
DIS issue* 28 118 - - - - - 146
==================== ======== ============= =========== =========== ========= ============== ======== ========
At 31 May 2022 10,173 18,395 311 4,584 1,884 22,063 864 58,274
==================== ======== ============= =========== =========== ========= ============== ======== ========
Year ended 30 November 2022 (audited)
Non-distributable reserves Distributable reserves
--------
Capital Capital Capital Special
Share 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 7,866 6,436 287 9,669 (1,823) 26,020 745 49,200
Net return - - - (2,247) 2,873 (1,111) 29 (456)
Dividends paid - - - - - (4,607) - (4,607)
Repurchase and
cancellation
of shares (59) - 59 - - (328) - (328)
Net proceeds of
share issue 2,562 13,074 - - - - - 15,636
Net proceeds of
DIS issue* 88 410 - - - - - 498
==================== ======== ============= =========== =========== ========= ============== ======== ========
At 30 November
2022 10,457 19,920 346 7,422 1,050 19,974 774 59,943
==================== ======== ============= =========== =========== ========= ============== ======== ========
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 Investment Manager's Review 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 52,073 38,297 41,160
Current assets
Debtors 665 512 703
Cash 8,528 19,528 18,261
------------------------------------- -------------- -------------- -------------
9,193 20,040 18,964
Creditors
Amounts falling due within one
year (184) (63) (181)
------------------------------------- -------------- -------------- -------------
Net current assets 9,009 19,977 18,783
------------------------------------- -------------- -------------- -------------
Net assets 61,082 58,274 59,943
------------------------------------- -------------- -------------- -------------
Capital and reserves
Called up share capital 11,391 10,173 10,457
Share premium account 24,914 18,395 19,920
Capital redemption reserve 478 311 346
Capital reserve - unrealised 5,877 4,584 7,422
Capital reserve - realised 1,035 1,884 1,050
Special distributable reserve 16,538 22,063 19,974
Revenue reserve 849 864 774
------------------------------------- -------------- -------------- -------------
Net assets attributable to Ordinary
Shareholders 61,082 58,274 59,943
------------------------------------- -------------- -------------- -------------
Net asset value per Ordinary Share
(pence) 53.62 57.28 57.32
------------------------------------- -------------- -------------- -------------
The Financial Statements of Maven Income and Growth VCT 3 PLC,
registered number 04283350, were approved by the Board and were
signed on its behalf by:
Atul Devani
Director
21 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
Six months ended Year ended
ended 31 May 31 May 2022 30 November
2023 (unaudited) (unaudited) 2022 (audited)
GBP'000 GBP'000 GBP'000
---------------------------------- ------------------ ------------- ----------------
Net cash flows from operating
activities (556) (735) (1,329)
Cash flows from investing
activities
Purchase of investments (13,295) (1,527) (5,626)
Sale of investments 896 5,289 8,369
---------------------------------- ------------------ ------------- ----------------
Net cash flows from investing
activities (12,399) 3,762 2,743
---------------------------------- ================== ============= ================
Cash flows from financing
activities
Equity dividends paid (2,112) (3,299) (4,607)
Issue of Ordinary Shares 6,042 14,290 16,134
Repurchase of Ordinary Shares (708) (138) (328)
---------------------------------- ------------------ ------------- ----------------
Net cash flows from financing
activities 3,222 10,853 11,199
---------------------------------- ------------------ ------------- ----------------
Net (decrease)/increase in
cash (9,733) 13,880 12,613
---------------------------------- ------------------ ------------- ----------------
Cash as at beginning of period 18,261 5,648 5,648
Cash at end of period 8,528 19,528 18,261
---------------------------------- ------------------ ------------- ----------------
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 Auditor's
Report that 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 109,430,676
Revenue return GBP75,000
Capital return (GBP2,176,000)
---------------------------------------------- ------------------------
Total return (GBP2,101,000)
---------------------------------------------- ------------------------
Directors' Responsibility Statement
Each Director believes 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 the Republic of
Ireland;
-- the Interim Management Report 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 2023; and
-- the Interim Management Report includes adequate disclosure of
the information required by DTR 4.2.8R in relation to material
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 113,917,040.
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/migvct3 .
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.
On behalf of the Board
Maven Capital Partners UK LLP
Secretary
21 July 2023
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END
IR FFLFLXDLEBBB
(END) Dow Jones Newswires
July 21, 2023 07:52 ET (11:52 GMT)
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