Inc&gwth Vct Regulatory News (IGV)

10 Feb 2012 14:57

The Income & Growth VCT plc ("the Company") INTERIM MANAGEMENT STATEMENT For the quarter ended 31 December 2011

In accordance with Rule 4.3 of the Disclosure and Transparency Rules of the UK Listing Authority, The Income & Growth VCT plc presents an Interim Management Statement for the quarter ended 31 December 2011. 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 31 December At 30 September 2011 2011 Net assets attributable to shareholders £50,682,122 £49,152,799 Shares in issue 40,692,048 40,692,048 Net asset value (NAV) per share 1 124.5 p 120.9 p Cumulative dividends paid to date per share 2 4.5 p 4.5 p Total return per share since inception (NAV basis) 129.5 p 125.3 p --------------------------------------------------------------- 1 NAV per share includes current year income of 0.18p 2.21p

2 After the end of this period, an interim capital dividend of 20 pence per share was paid on 27 January 2012 and shareholders have also approved a final dividend in respect of the year ended 30 September 2011 of 4 pence per share to be paid on 15 February 2012

For shareholders in the former `O' Share Fund, the equivalent data is:

At 31 December 2011 At 30 September 2011 Net asset value (NAV) per share 3 94.4 p 91.5 p Cumulative dividends paid to date per 25.5 p 25.5 pshare 3,4 Total return per share since inception 119.9 p 117.0 p(NAV basis) 3

3 The data for the former `O' Shares, which merged with the current class of Ordinary Shares (formerly `S' Shares) on 29 March 2010, shows the return on an initial subscription price of 100p at the date of inception of that fund. For every one `O' Share formerly held at the date of the Merger, 0.7578 Ordinary Shares were received.

4 After the dividends in note 2 above have been paid, the amount of 25.5p will change to 43.7p, and the NAV will become 76.2p

NEW INVESTMENTS

Two new investments were made during the period. The first of these was an investment of £1,383,313 to provide mezzanine finance as part of a £7.8m transaction to support the acquisition of the international intellectual property and assets of Lowe Alpine Srl from administration in Italy by Equip Outdoor Technologies Limited, a company specialising in owning and distributing brands focused on the outdoor sector.

Secondly, the VCT made a new investment of £1,878,124 to support the MBO of EMaC Limited, the UK's leading provider of outsourced Service Plans to franchised dealers in the automotive sector.

DIVESTMENTS

The Company fully realised its investment in App-DNA Group Limited in November 2011 for an initial consideration of £14.6 million (plus a further approximately £1.8 million of deferred consideration which could be receivable over the next four years) through a sale to Citrix Systems Inc. These amounts contributed to total proceeds of £16.7 million over the life of the investment which equated to a return of approximately 32 times the original investment making it the most successful realisation in the history of the Company. The Board anticipates that a performance incentive fee of up to an estimated £2.8 million could be payable for the current financial year ending 30 September 2012 in respect of this realisation and have included this in arriving at the NAV per share above.

In December 2011 the VCT made a partial realisation of its investment in DiGiCo Europe Limited ("DiGiCo") through a sale to ISIS Equity Partners. This realisation increased the total cash proceeds received by the Company over the life of the investment by £1.4 million to £2.0 million, representing a 3.0 times cash return on the Company's original investment of £0.7 million. In addition, the VCT retains a 1.6% equity stake, and new loan stock in DiGiCo valued at £0.9 million at the date of completion of the transaction. The total return to date thus equates to approximately £2.9 million, a 4.4 times return on the VCT's original cost.

DIVIDENDS

Two dividends have been paid or approved for payment following the period-end.

An Interim capital dividend of 20 pence per share was paid on 27 January in respect of the year ending 30 September 2012.

A final dividend in respect of the year ended 30 September 2011 of 4 pence per share comprising 2 pence from income and 2 pence from capital was approved by shareholders at the Annual General Meeting of the Company held on 9 February 2012.

These dividends will bring cumulative dividends paid to date to 28.5 pence per ordinary share (formerly called `S' Shares) and will reduce the NAV per share announced above to 100.6 pence per share. .

SHARE BUY-BACKS

The Company did not buy back any of its own shares during the quarter ended 31 December 2011 but has made one buy-back since the period-end of 134,818 shares at 86.7 pence per share on 31 January 2012.

ISSUE OF EQUITY

The Company allotted 1,247,556 shares at a price of 87.5 pence per share on 30 January 2012 under the Company's Dividend Investment Scheme in relation to the interim capital dividend in respect of the year-ended 30 September 2012 paid on 27 January 2012.

MATRIX VCTs' JOINT OFFER FOR SUBSCRIPTION

The Company launched a linked fundraising with Matrix Income & Growth VCT plc and Matrix Income & Growth 4 VCT plc on 20 January 2012 to raise up to £21 million across the three VCTs of which up to £7 million will be allocated to the VCT.

The Offer will remain open until 30 April 2012 (5 April 2012 in respect of the current tax year) although the Directors of the three VCTs reserve the right to extend the closing date at their discretion.

CHANGE OF OWNERSHIP AT MATRIX PRIVATE EQUITY PARTNERS("MPEP")

Since April 2004, the Company's Manager MPEP has been owned jointly by its executive partners and Matrix Group Limited ("Matrix"). On 12 January 2012, the executive partners reached agreement to acquire Matrix's interest in the business. The acquisition is subject to approval from the FSA of the change of control in MPEP and is expected to be completed on or around 30 June 2012.

For further information, please contact:

Sarah Penfold, for Matrix Private Equity Partners LLP, Company Secretary: 020 3206 7000