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16 Sep 2015 14:27
The Income & Growth VCT plc
(the "Company")
INTERIM MANAGEMENT STATEMENT
For the quarter ended 30 June 2015
The Income & Growth VCT plc presents an Interim Management Statement for the quarter ended 30 June 2015. The statement also includes relevant financial information between the end of the period and the date of this statement.
NET ASSET VALUE AND TOTAL RETURN PER SHARE
| At 30 June 2015 | At 31 March 2015 |
Net assets attributable to shareholders | £73,296,475 | £74,663,780 |
Shares in issue | 70,793,007
| 70,442,856
|
Net asset value (NAV) per share
| 103.54p | 105.99p |
Cumulative dividends paid to date per share | 68.50p
| 62.50p |
Cumulative total return per share (NAV basis) since launch | 172.04p | 168.49p |
CUMULATIVE DIVIDENDS
On 30 June 2015, the Company paid an interim dividend of 6.00 pence per share (comprising 5.00 pence from capital and 1.00 penny from income) in respect of the current year, bringing total cumulative dividends paid per share since the inception of the current share class to 68.50 pence.
SHARE BUY-BACKS
On 28 May 2015, the Company bought back 330,000 of its own ordinary shares at a price of 95.25 pence per share.
ISSUE OF EQUITY
On 30 June 2015, the Company allotted 680,151 ordinary shares at price of 90.50 pence per share. The shares were allotted further to the Company's Dividend Investment Scheme in respect of the dividend of 6.00 pence per share paid on 30 June 2015 referred to above.
INVESTMENT ACTIVITY
A new investment was made into Jablite Holdings Limited of £0.52 million and a follow-on investment was made into CGi Creative Graphics International Limited of £1.49 million.
In July, following the period end, the Company also invested £1.21 million into Tushingham Sails Limited, a leading supplier of stand up paddleboards.
There were no realisations during the period.
Following the period end, in August 2015, £0.07 million was received from Newquay Helicopters (2013) Limited as an interim distribution resulting from the members' voluntary liquidation of that company. Also in August 2015, the Company realised part of its loan stock and its entire equity investment in BG Training Limited for cash proceeds of £0.41 million. The Company holds a remaining loan stock investment in BG Training at a cost and value of £0.07 million. This realisation has contributed to total receipts to date of £0.86 million by the Company over the life of this investment compared to original cost of £1.00 million. The valuation of the Company's investment in BG Training at 30 June 2015 was £0.46 million.
Loan Stock Repayments
A total of £0.92 million was received in loan stock repayments and premiums during the quarter to 30 June 2015, from Jablite, Tessella, Fullfield (Motorclean), Aussie Man, and Leap NewCo (Ward Thomas).
After the period end, a further total of £0.67 million in loan stock repayments and premiums has also been received.
REGULATORY DEVELOPMENTS
The Budget in March 2015 announced further amendments to VCT legislation, specifically aimed at enabling the scheme to gain continued approval under the European Commission's State Aid guidelines.
The Summer Budget 2015 has proposed additional new rules preventing VCTs acquiring existing shares or the principal trade assets of businesses. It is expected that business acquisitions using VCT finance will no longer be possible. The other key aspects of the proposed new rules are as follows:
· Introducing an 'age of company' restriction of a maximum of seven years at the time of first State Aid investment;
· Introducing a State Aid lifetime investment limit of £12 million; and
The proposals remain subject to approval by the European Commission so the date when these proposals become legislation is uncertain, but currently the new rules are expected to apply to investments using VCT finance from October 2015. The precise details and implications for the VCT's future investment programme will only be fully clear once the legislation is enacted. However, in the longer term, the Investment Adviser anticipates a reduction in the range of companies that the VCT could consider as potential investments, together with changes in the Company's investment strategy. In the meantime, the Investment Adviser, along with others in the industry, is in discussions with HM Treasury about the restrictive nature of the proposed new rules.
Please note that all of the information above is unaudited.
Other than as described above, there were no material events during the period and to the date of this announcement.
For further information, please contact:
Sarah Penfold, for Mobeus Equity Partners LLP, Company Secretary: 020 7024 7600
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