Mobeus I&g 2 Regulatory News (MIG)

Mobeus Income & Growth 2 VCT plc Half-Yearly Report for the six months ended 31 October 2013 INVESTMENT OBJECTIVE Mobeus Income & Growth 2 VCT plc ("MIG2", the "Company" or the "VCT") is aVenture Capital Trust ("VCT") managed by Mobeus Equity Partners LLP ("Mobeus")investing primarily in established, profitable, unquoted companies. The Company's objective is to provide investors with a regular income stream,arising both from the income generated by the companies selected for theportfolio and from realising any growth in capital. Venture Capital Trust Status Mobeus Income & Growth 2 VCT plc has satisfied the requirements as a VentureCapital Trust under section 274 of the Income Tax Act 2007 ("ITA") and theDirectors intend to conduct the business of the Company so as to continue tocomply with that section. FINANCIAL HIGHLIGHTS Half-yearly results for the six months ended 31 October 2013 * Increase of 6.8% in total shareholder return (NAV basis) over the half-year. * The net asset value (NAV) cumulative total shareholder return per share since launch* was 132.0 pence per share at 31 October 2013, up 7.2p in six months. * Total dividend of 5.0 pence per share to be paid on 21 March 2014. * New investment activity of £1 million in period, plus a further £1.33 invested after the period-end. * Loan stock repayments from investee companies totalled £2.5 million for the half-year. *16 December 2005, being the date shares were first allotted in the Ordinaryshare (formerly C share) fund at 100 pence per share. PERFORMANCE SUMMARY The net asset value (NAV) per share as at 31 October 2013 was 114.0 pence The table below shows the recent past performance of the original `O' fundsraised in 2000/2001 and the Ordinary share (formerly `C' share) funds raised in2005/06. Performance data for all fundraising rounds are shown in a table at the end ofthis announcement. Ordinary shares of 1 penny (formerly C shares until 10 September 2010) Net Net asset Cumulative Share Cumulative total return assets value per dividends price per share to share paid per shareholders since (NAV) share launch2&3 (£ million) (p) (p) (p)1 (NAV (Share basis)4 price basis)5 (p) (p) Ordinary share fund (formerly C share fund until 10 September 2010)2 As at 31 27.3 114.0 18.0 93.5 132.0 111.5October 2013 As at 30 April 25.7 106.8 18.0 70.3 124.8 88.32013 As at 31 24.6 99.2 14.0 67.4 113.2 81.4October 2012 At close of 8.7 94.5 - - - -Offer forsubscription in2005 Former Ordinary share fund (raised in 2000/2001)3 As at 31 - 94.3 36.7 - 131.0 -October 2013 As at 30 April - 88.3 36.7 - 125.0 -2013 As at 31 - 82.1 33.4 - 115.5 -October 2012 At close of 12.4 94.0 - - - -Offer forsubscription in2001 1 Source: London Stock Exchange. 2 Launch date 16 December 2005, as explained above. 3 Launch date 10 May 2000. 4 NAV as at 31 October 2013 plus cumulative dividends paid since fund launch. 5 Mid share price as at 31 October 2013 plus cumulative dividends paid sincefund launch. CHAIRMAN'S STATEMENT I am pleased to present the Half-Yearly Report of Mobeus Income & Growth 2 VCTplc (the "Company") for the period from 1 May 2013 to 31 October 2013. Performance for the six months ended 31 October 2013 Net asset value (NAV) per share has increased by 6.8% during the period from106.75 pence per share at 30 April 2013 to 114.00 pence per share at 31 October2013. The cumulative NAV total return per share (being the closing net asset valueplus total dividends paid to date) since launch rose by 5.8% during the sixmonth period from 124.75 pence to 132.00 pence. This increase is predominantlydue to increases in investment valuations and some significant loan interestreceipts, boosting revenue returns. Shareholders should note that the performance data in my statement relates tothe one Ordinary share class now in existence. Fundraising for this class(which was formerly called the C share class) was launched on 20 September2005. This single share class was created after a share class merger of theformer Ordinary and C share classes on 10 September 2010. To assistshareholders to monitor the performance of their original Ordinary or C Shareinvestment in a particular fundraising on a consistent basis, we have includedseparate performance data in the Performance Summary table above and at the endof this announcement. The Investment Portfolio Portfolio valuations continued to increase, new deal activity remained at busylevels and there was a healthy level of loan stock repayments. Overall, the portfolio recorded realised and unrealised gains of £1.04 millionover the six month period. The portfolio under management was valued at £20.37million at the period-end representing 103.8% of cost and an increase of 4.8%in valuation over the period. During the six month period to 31 October 2013, the Company invested £967,780in Veritek Global Limited via the acquisition vehicle Madacombe Trading,resulting in a £32,220 refund of the VCT's existing investment of £1 million inMadacombe. A further £39,685 was also invested in Gro-Group Limited loan stock,to finance the move to direct sales in Australia. Following the period-end in November 2013, the Company completed a furtherinvestment of £330,202 into the acquisition vehicle Culbone Trading to supportthe MBO of Virgin Wine Online, one of the UK's leading online retailers ofwine. The Company's investment in Culbone Trading is now £1,330,202. There have been a number of realisations, all from loan stock repayments duringthe period, totalling £2.48 million. Most significantly, in May 2013, Newquay Helicopters (2013) (formerly BritishInternational) repaid in full its 2006 and 2009 loan stock, plus premium andall outstanding interest arrears and penalties to date. This amounted tocapital proceeds totalling £1,248,800 and loan interest of £423,026. Full details of the investment activity during the six months to 31 October2013 and a summary of the performance highlights can be found in the InvestmentManager's Review below. Revenue Account The results for this period are set out in the Unaudited Income Statement belowand show an improved revenue gain (after tax) of 3.47 pence per share (31October 2012: gain of 0.77 pence). The revenue return for the period of £834,749 is an increase of £643,461(336.4%) from last year's comparable period. This is due to an exceptional risein income of £687,751, from last year's £453,084 to £1,140,835 now. Income benefited from an increase in loan stock interest of £683,669 (being anincrease of 175.8%, compared to the comparable period last year). The maincontributor is the large arrears receipt from Newquay Helicopters (2013)Limited of £423,026 following the repayment of its two original loans asreferred to above. New loan stock investments in Gro-Group, Fullfield(Motorclean) and ATG Media have also contributed to the increase and, as aresult, annualised loan stock income now stands at £953,688 (31 October 2012: £764,486). Expenses charged to the Revenue Account have risen by £6,958. Fund managementfees rose by £5,262, as the amount charged to the Income Statement in totalincreased by 6.93%, in line with the higher net assets than the equivalentperiod last year. Other expenses have risen slightly by £1,696 in the period to£151,793 (2012: £150,097). This increase was due to higher trail commissioncosts arising from higher net assets and higher professional fees offset bylower printing costs. Strategy and Fundraising Earlier this month, shareholders will have received a Securities Notecontaining an Offer for shares in the Company, as part of a Linked Offer forsubscription launched on 28 November 2013, to raise an aggregate of up to £24million in conjunction with Mobeus Income & Growth VCT plc, Mobeus Income &Growth 4 VCT plc and The Income & Growth VCT plc. I wish to take this opportunity to explain the background to this development.In my Chairman's Statement in the 2013 Annual Report, I reported that theBoard, aware of the level of new investment opportunities, was consideringwhether the Company should raise further funds. Subsequently, the Board decidedthey did wish to raise additional funds, and agreed to become one of theCompanies participating in the current Mobeus VCTs' Linked Offer. At the Company's AGM held on Friday 20 September 2013, shareholders approvedthe changes to Company's strategy as outlined below: 1. Extension of the life of the Company until the fifth anniversary of the latest allotment of shares, in order to maintain the tax reliefs on new shares to be issued. 2. Adoption of a buyback policy with the objective of maintaining the discount to the latest published NAV at 10% or less. At the AGM, shareholders approved the above changes, and your Board has sinceparticipated in the recent launch of the Linked Offer. This fundraisinganticipates a higher rate of new investment in the years ahead and theincreased assets will spread the Company's fixed running costs over a largerasset base. Change of financial year-end In order to facilitate the process of allotting shares arising from the LinkedOffer and any future fundraisings, the Board has decided to change theCompany's financial year-end from 30 April to 31 March. Therefore the next setof accounts will be for the 11 month period from 1 May 2013 to 31 March 2014and future reports will be for years ending 31 March. Dividends The Board has declared an interim dividend of 4.9 pence per share for theeleven months ending 31 March 2014. Following the change to the Company'syear-end, the dividend will be paid on 21 March 2014 to shareholders on theRegister on 28 February 2014. This is in addition to the interim dividend of0.1 pence per share for the year ended 30 April 2013, as reported in the 2013Annual Report, which the Company is required to pay in order to comply with VCTrules. Therefore the total dividend to be paid on 21 March 2014 will be 5.0pence per share. The Board's objective is, subject to the availability of sufficient reservesand liquidity, to distribute regular and consistent dividends of at least 4pence per share per annum. Share buybacks During the period, the Company repurchased 150,000 shares for cancellation at aprice of 91.0 pence share, representing 0.62% (30 April 2013: 3.1%) of theissued share capital. This buyback represented a discount to NAV ofapproximately 20%. The current discount of the share price to NAV isapproximately 10%. Possible VCT Legislation Shareholders may wish to be aware of the following two developments. Firstly,the Chancellor's Autumn Statement contained measures restricting tax relief onsubscriptions for shares in VCTs after 5 April 2014 where, within six monthsbefore or after subscription, the investor disposes of shares in that VCT. Ifintroduced, as seems likely, such proposals may lead to a restriction on incometax relief available to an investor for the issue of shares if, within sixmonths before or after subscription, the investor disposes of shares in theCompany. Secondly, HMRC is also considering proposals relating to theavailability of tax relief on dividends which are regarded by HMRC as returnsof capital. HMRC intends to hold a series of technical consultations on thissubject shortly. Liquidity The Board continue to consider and monitor credit risk in respect of its cashbalances extremely carefully. In response to a change in VCT regulations, the Company can no longer add toits investment in money market funds. It continues to hold £3.7 million in aselection of money market funds with AAA credit ratings, and now also holds £3.2 million at Barclays Bank, both as at 31 October 2013. In addition, the £2million invested in acquisition vehicles is also held in money market funds(reduced to £1 million following the use of Culbone to support the MBO ofVirgin Wine after the period end). The Company remains well positioned in theshort-term to make new investments and support suitable investmentopportunities within the portfolio if required, but has decided to raisefurther funds so as to participate in a higher level of new investmentopportunities anticipated over the medium term. Investment in qualifying holdings The Company is required to meet the target set by HMRC of investing 70% of thefunds raised in qualifying unquoted and AIM quoted companies. The Companyexceeded this limit (based on VCT cost as defined in tax legislation, whichdiffers from the actual cost given in the Investment Portfolio Summary below)throughout the period. Industry awards for the Investment Manager It is pleasing to report that the Investment Manager was named VCT Manager ofthe Year 2013 for the second consecutive year at the unquote" British PrivateEquity Awards 2013. The award recognised the high level of consistency achievedby the Investment Manager during the year under consideration in maintaininghigh standards in all areas of its activity including deals, exits, portfoliomanagement and fundraising. The Board is pleased that the work of theInvestment Manager has been acknowledged in this way. Outlook The outlook for the UK economy appears to have improved over the past fewmonths. Many forecasters now anticipate that economic growth will occur overthe next few years. The Investment Manager is seeing an improved flow of opportunities to investmore capital in smaller private companies with proven business models, goodmanagement and sound financing. This rise in activity partly reflects theimprovement in the UK economic outlook and the continued perception that the UKbanking industry is reluctant to lend to smaller businesses. The Board is mindful that the Company should have adequate liquidity to takeadvantage of the increased number and quality of businesses currently beingevaluated by the Investment Manager. In view of the uncertain environmentdescribed above, it is imperative that only the highest quality businesses areselected with the terms of the deal structured so as to minimise the downsiderisk to shareholders. The cautious approach of selecting well-run profitablecompanies operating in niche markets is the primary reason for the quality ofthe investment portfolio currently held within the Company. If growth in the UK economy is sustained, prospects should improve further forour existing and future portfolio companies. The Company's existing portfoliocontains a number of investments in companies which are progressing well, andare capable of producing further growth in profits. Realisation of suchpotential should provide exit opportunities and returns over the medium termfor shareholders. I would like to take this opportunity to thank shareholders for their continuedsupport. The Securities Note recently sent to shareholders also contained aninvitation to a Shareholder Workshop on 21 January 2014, and the Board looksforward to meeting any shareholders able to attend. Nigel MelvilleChairman18 December 2013 RESPONSIBILITY STATEMENT In accordance with Disclosure and Transparency Rule (DTR) 4.2.10, NigelMelville (Chairman), Adam Kingdon (Chairman of the Audit Committee), SallyDuckworth (Chairman of the Investment Committee) and Kenneth Vere Nicoll(Chairman of the Nomination and Remuneration Committee), being the Directors ofthe Company, confirm that to the best of their knowledge: a. the condensed set of financial statements, which has been prepared in accordance with the statement "Half-Yearly Reports" issued by the Accounting Standards Board, gives a true and fair view of the assets, liabilities, financial position and profit of the Company as required by DTR 4.2.4; b. the interim management report included within the Chairman's Statement, Investment Policy, Investment Manager's Review and Investment Portfolio Summary includes a fair review of the information required by DTR 4.2.7, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; c. a description of the principal risks and uncertainties facing the Company for the remaining six months is set out below, in accordance with DTR 4.2.7; and d. there were no related party transactions in the first six months of the current financial year that are required to be disclosed, in accordance with DTR 4.2.8. PRINCIPAL RISKS AND UNCERTAINTIES In accordance with DTR 4.2.7, the Board confirms that the principal risks anduncertainties facing the Company have not materially changed from thoseidentified in the Annual Report and Accounts for the year ended 30 April 2013.The Board acknowledges that there is regulatory risk and continues to managethe Company's affairs in such a manner as to comply with section 274 Income TaxAct 2007. The principal risks faced by the Company are: * economic risk; * loss of approval as a Venture Capital Trust; * investment and strategic risk; * regulatory risk; * financial and operating risk; * market risk; * asset liquidity risk; * market liquidity risk; * credit/counterparty risk; and * fraud and dishonesty risk. A detailed explanation of the principal risks facing the Company can be foundon pages 18 and 19 and in Note 19 on pages 44 to 51 of the Annual Report andAccounts for the year ended 30 April 2013. Copies are available from theCompany's website: www.mig2vct.co.uk. RELATED PARTY TRANSACTIONS There were no related party transactions in the first six months of the currentfinancial year that are required to be reported. GOING CONCERN The Board has assessed the Company's operation as a going concern. TheCompany's business activities, together with the factors likely to affect itsfuture development, performance and position are set out in the interimmanagement report which is included within the Chairman's Statement, InvestmentPolicy, Investment Manager's Review and Investment Portfolio Summary. TheDirectors have satisfied themselves that the Company continues to maintain asignificant cash position, the majority of companies in the portfolio continueto trade profitably and the portfolio taken as a whole remains resilient andwell-diversified. The major cash outflows of the Company (namely investments,buy-backs and dividends) are within the Company's control. The Board's assessment of liquidity risk and details of the Company's policiesfor managing its capital and financial risks are shown in Note 19 on pages 44to 51 of the Annual Report and Accounts for the year ended 30 April 2013.Accordingly, the Directors continue to adopt the going concern basis ofaccounting in preparing the Half-Yearly Report and annual financial statements. CAUTIONARY STATEMENT This report may contain forward looking statements with regards to thefinancial condition and results of the Company, which are made in the light ofcurrent economic and business circumstances. Nothing in this report should beconstrued as a profit forecast. For and on behalf of the Board: Nigel MelvilleChairman18 December 2013 INVESTMENT POLICY The Company's policy is to invest primarily in a diverse portfolio of UKunquoted companies. Investments are structured as part loan and part equity inorder to receive regular income and to generate capital gains from trade salesand flotations of investee companies. Investments are made selectively across a number of sectors, primarily inmanagement buyout transactions (MBOs) i.e. to support incumbent managementteams in acquiring the business they manage but do not own. Investments areprimarily made in companies that are established and profitable. The Company's cash and liquid resources may be invested to maximise incomereturns in a range of instruments of varying maturities, subject to theoverriding criterion that the risk of loss of capital be minimised. UK companies The companies in which investments are made must have no more than £15 millionof gross assets at the time of investment and £16 million immediately followingthe investment to be classed as a Venture Capital Trust ("VCT") qualifyingholding. VCT regulation The investment policy is designed to ensure that the Company continues toqualify and is approved as a VCT by HM Revenue & Customs ("HMRC"). Amongst other conditions, the Company may not invest more than 15% of itsinvestments in a single company and must achieve at least 70 % by value of itsinvestments throughout the period in shares or securities in VCT qualifyingholdings, of which a minimum overall of 30% by value must be ordinary shareswhich carry no preferential rights. In addition, although the Company caninvest less than 30% of an investment in a specific company in ordinary shares,it must have at least 10% by value of its total investments in each VCTqualifying company in ordinary shares which carry no preferential rights (saveas may be permitted under VCT rules). The VCT regulations in respect of funds raised after 6 April 2011 have changed,such that 70% of qualifying holdings invested with such funds must be held inequity. Asset mix The Investment Manager aims to hold approximately 80% of net assets by value inthe Company's qualifying investments. The balance is held in readily realisableinterest bearing investments and deposits and in some non-qualifying holdingsin the same investee companies in which qualifying investments have been made. Risk diversification and maximum exposures Risk is spread by investing in a number of different businesses acrossdifferent industry sectors. To reduce the risk of high exposure to equities,each qualifying investment is structured using a significant proportion of loanstock (up to 70% of the total investment in each VCT qualifying company).Initial investments in VCT qualifying companies are generally made in amountsranging from £200,000 to £2 million at cost, or such amounts as VCT legislationpermits. Normally, no holding in any one company will be greater than 10% (butin any event will not be greater than 15%) of the value of the Company'sinvestments, based on cost, at the time of investment. Ongoing monitoring ofeach investment is carried out by the Investment Manager, generally throughtaking a seat on the board of each VCT qualifying company. Co-investment The Company aims to invest alongside the three other VCTs advised by theInvestment Manager with a similar investment policy. This enables the Companyto participate in larger combined investments advised on by the InvestmentManager. Borrowing The Company's articles of association permit borrowings of amounts up to 10% ofthe adjusted capital and reserves (as defined therein), although the Companyhas never borrowed and the Board has no current plans to undertake anyborrowing. MANAGEMENT The Board has overall responsibility for the Company's affairs including thedetermination of its investment policy. Investment and divestment proposals areoriginated, negotiated and recommended by the Investment Manager, Mobeus EquityPartners LLP, and are then subject to formal approval by the Directors. MobeusEquity Partners LLP provides Company Secretarial and Accountancy services tothe Company. INVESTMENT MANAGER'S REVIEW Overview The portfolio has made a satisfactory start to the year with encouragingtrading and cash generation from a number of companies in the portfolio,causing a like for like rise in the portfolio's value of 4.8%. The rising trendin terms of new deal activity towards the 2013 year end has continued with onenew investment completed in the period and one more completing after the periodend. Realisations have also continued at a healthy level with a number ofinvestee companies using their improved cash position to make partial or fullrepayments of their loan stock. New investment In July 2013, the VCT completed a new investment of £967,780 using the VCT'sexisting investment of £1 million in the seed company, Madacombe Trading,resulting in a net repayment to the Company of £32,220. This investmentsupported the MBO of Veritek Global Limited, a Europe-wide provider ofinstallation, maintenance and support services for blue-chip owners of a widerange of complex imaging and printing equipment. The company has revenues inexcess of £25 million and around 300 staff across ten countries. Following the period end in November 2013, the Company completed a furtherinvestment of £330,202 into the acquisition vehicle Culbone Trading to supportthe MBO of Virgin Wine Online Limited, one of the UK's leading online retailersof wine. The Company's investment in this company now totals £1,330,202. Follow-on investments A small follow-on loan of £39,685 was advanced to Gro-Group Holdings Limited,to finance the move to direct sales distribution in Australia, rather than usea sales agent. Realisations The first six months of the year has seen further realisations that reflect theway our portfolio investments are initially structured and that many of themare generating positive cash flow. During the period, cash of £2,475,380(excluding Madacombe's partial refund of £32,220) has been generated from partor full loan stock repayments. In May 2013, following the disposal of the company's major trading subsidiary,Newquay Helicopters (2013) Limited (formerly British International HoldingsLimited) repaid the principal and premium of the first two loan stocks,together with all interest arrears for total cash proceeds of £1,671,825. Thecapital proceeds of £1,248,800 compare with an investment cost of £934,000, andcontributed to an overall return including interest of two times investmentcost, to date. This is a pleasing outcome and there is the prospect of furtherreturns of capital as the company realises its remaining assets. In September 2013, Focus Pharma Holdings Limited repaid a further £1,000,000across all Mobeus VCTs, of which £206,325 (including £63,914 premium) relatedto the Company. After the period-end, Focus made a full repayment of theremaining loan stock realising £207,616 (including £64,314 premium). Theserepayments arise from a substantial improvement in Focus's profitability. Strong cash flow at DiGiCo Global Limited enabled it to repay further loantranches totalling £420,437 in July and October. In October 2013, Blaze Signs Holdings Limited fully repaid its remaining loanstock realising £270,268 (including premium of £62,368). Also in October 2013, Faversham House made a partial repayment of loanrealising £49,604 (including £6,283 premium), the cash for which was receivedjust after the period end. After the period end, Faversham has now fully repaidthe remaining loan, realising £77,552 (including £9,862 premium), whichrepresents our exit from what has been a disappointing investment. On a totalreturn basis (including interest received) we have recovered £350,297 of ouroriginal investment cost of £374,870, or 93% of that original investment. A number of other capital loan repayments have been made during the period,totalling £279,946, being from EMaC (£228,276), Monsal Holdings Limited (£25,632), and Tessella Holdings Limited (£26,038). Portfolio review The portfolio at 31 October 2013 comprised twenty-eight investments (2012:thirty) with a cost of £19.6 million (2012: £22.8 million) and valued at £20.4million (2012: £20.5 million). On a like for like basis, the portfolio hasincreased by 4.81% compared with the valuations prevailing at 30 April 2013.Over the same period the FTSE All-Share and FTSE SmallCap indices have risen by5.76% and 13.88% respectively. The portfolio's performance as a whole continues to be robust. The three mainuplifts in valuation have occurred at ASL, Blaze and Tessella. ASL is showingsigns of improvement with profits ahead of the prior year. Blaze Signs ishaving an exceptional year, building on their involvement with Olympicprojects, and now benefiting from a large contract with a bank. This hasenabled it to repay all of its remaining VCT loans as noted above. Tessella hasmade an encouraging start, and its valuation has now moved above its valuationat the point of investment. DiGiCo continues to remain highly profitable and is developing more newproducts for its markets. Fullfield has traded well, and the extra resourceacquired as part of their acquisition have integrated well in to the existingbusiness. ATG also continues to trade well, and is investing in new auction software thatshould benefit the UK business and its recent US acquisition. EMaC isperforming ahead of budget with plans to offer more flexible service planswhich will meet market demands. PXP and Plastic Surgeon continue to benefit from improvements in theconstruction and house building sectors. PXP has a healthier order book.Plastic Surgeon has maintained profits over the previous year, and plans torecruit in order to meet increasing demand for its services. Uncertaintyremains in Youngman's markets, with orders from key customers down on theprevious year. Outlook The outlook for the UK economy is still uncertain although recent forecastshave become more optimistic. Improved business confidence and the perceptionthat the UK banking industry is still reluctant to lend to smaller businessesare resulting in a sustained and positive deal flow of opportunities. We arehopeful that we will continue with a busy period of new investment during thelatter part of the year. The number and quality of deals being considered inrecent months has increased and we are confident that this will result in anumber of transactions being completed in the near future. However, we aremaintaining a prudent approach to making new investments. We continue to be conscious of the need to ensure that investee companies takeappropriate actions to respond to the challenging environment ahead. We areensuring that the existing portfolio remains well capitalised, and that thestronger companies build on their strengths. Based upon the potential in thecurrent portfolio, and the prospects for new investment, we are confident thatgood returns can continue to be earned for investors. Mobeus Equity Partners LLP18 December 2013 INVESTMENT PORTFOLIO SUMMARY as at 31 October 2013 Date of Total first book cost at Valuation Valuation at % of net investment/ 31 October at 30 April 31 October assets by Sector 2013 2013 2103 value £ £ £ Qualifyinginvestments Unquotedinvestments ATG Media October 2008 1,631,830 3,334,643 3,279,082 12.0%HoldingsLimited Publisher and Mediaonline auctionplatformoperator Fullfield July 2011 1,624,769 1,920,275 1,900,470 7.0%Limited,trading asMotorcleanLimited Vehicle Supportcleaning and servicesvalet services Ingleby (1879) October 2008 867,447 1,424,024 1,465,197 5.4%Limited tradingas EMaC Service plans Supportfor the motor servicestrade Blaze Signs April 2006 437,030 1,143,484 1,310,994 4.8%HoldingsLimited Manufacturing Supportand servicesinstallation ofsigns Tessella July 2012 854,687 880,725 1,159,177 4.3%HoldingsLimited Provision of Supportspecialist servicesscientific andcomputerprogrammingconsultancy Gro-Group March 2013 1,096,102 1,056,417 1,096,102 4.0%HoldingsLimited Baby sleep Retailproducts ASL Technology December 2010 1,360,130 611,725 1,056,692 3.9%HoldingsLimited Printer and Supportphotocopier servicesservices Ackling January 2012 1,000,000 1,000,000 1,000,000 3.7%ManagementLimited Food Food productionmanufacturing, & distributiondistributionand brandmanagement Culbone Trading April 2012 1,000,000 1,000,000 1,000,000 3.7%Limited Outsourced Supportservices services Madacombe April 2012 967,780 - 967,780 3.5%Trading Limitedtrading asVeritek GlobalLimited2 Engineering Supportservices services EOTH Limited October 2011 817,185 842,294 847,937 3.1%trading asEquip OutdoorTechnologiesLimited Branded outdoor Generalequipment and retailersclothing Focus Pharma October 2007 375,416 914,513 745,088 2.7%HoldingsLimited Licensor and Supportdistributer of servicesgenericpharmaceuticals Youngman Group October 2005 1,000,052 699,966 699,966 2.6%Limited Manufacturer of Supportladders and servicesaccess towers Machineworks April 2006 25,727 674,691 511,726 1.9%SoftwareLimited Software for Software andCAM and machine Computertool vendors Services RDL Corporation October 2010 1,000,000 663,859 442,734 1.6%Limited Recruitment Supportconsultants for servicesthepharmaceutical, businessintelligenceand ITindustries The Plastic April 2008 392,264 353,544 369,395 1.4%SurgeonHoldingsLimited Snagging and Supportfinishing of servicesdomestic andcommercialproperties Vectair January 2006 60,293 222,027 271,848 1.0%HoldingsLimited Design and sale Supportof washroom servicesproducts Newquay June 2006 226,000 997,500 226,000 0.8%Helicopters(2013) Limited(previouslyBritishInternationalHoldingsLimited) Helicopter Supportservice servicesoperators Lightworks April 2006 25,727 146,059 109,871 0.4%SoftwareLimited Software for Software andCAD vendors Computer Services Faversham House December 2010 68,014 111,335 68,014 0.2% Publisher, Mediaexhibitionorganiser andoperator ofwebsites fortheenvironmental,visualcommunicationsand buildingservicessectors PXP Holdings December 2006 1,220,579 57,143 57,143 0.2%Limited(PinewoodStructures) Design, Constructionmanufacture andsupply oftimber framesfor buildings Monsal Holdings December 2007 821,982 76,897 51,265 0.2%Limited Supplier of Engineeringengineeringservices to thewater and wastesectors Racoon December 2006 878,527 250,551 27,269 0.1%InternationalHoldingsLimited Supplier of Personal goodshairextensions,hair careproducts andtraining Legion Group August 2005 150,000 - - 0.0%plc Provision of Supportmanned Servicesguarding,mobilepatrolling, andalarm responseservices Madacombe April 2012 - 1,000,000 - 0.0%Trading Limited2 Engineering Supportservices services Total unquoted 17,901,541 19,381,672 18,663,750 68.5%investments AiM quotedinvestments Omega December 2010 214,998 331,455 241,873 0.9%DiagnosticsGroup plc In vitro Pharmaceuticalsdiagnostics forfoodintolerance,auto-immunediseases andinfectiousdiseases Vphase plc March 2001 254,586 507 - 0.0%(formerlyFlightstoreGroup plc) Development of Electronic andenergy saving electricaldevices for equipmentdomestic use Total AiM 469,584 331,962 241,873 0.9%quotedinvestments Total 18,371,125 19,713,634 18,905,623 69.4%1qualifyinginvestments Non-qualifyinginvestments DiGiCo Global July 2007 829,767 1,587,065 1,294,691 4.7%Limited(formerlyNewincco 1124Limited) Design and Technology,manufacture of hardware andaudio mixing equipmentdesks Newquay 167,647 487,647 167,647 0.6%Helicopters(2013) Limited(previouslyBritishInternationalHoldingsLimited) ATG Media 104 647 627 0.0%HoldingsLimited Fuse 8 plc 250,000 - - 0.0% Legion Group 106 - - 0.0%plc Total 1,247,624 2,075,359 1,462,965 5.3%non-qualifyinginvestments Total portfolio 19,618,749 21,788,993 20,368,588 74.7%investments Money market 3,727,300 13.7%funds 3 Debtors 275,459 1.0% Cash 3,212,949 11.8% Creditors (314,421) (1.2%) Net assets 27,269,875 100.0% 1 As at 31 October 2013 the Company held more than 70% of its total investmentsin qualifying holdings, and therefore complied with the VCT investment test.For the purposes of the VCT investment tests, the Company is permitted todisregard disposals of investments for six months from the date of disposal. 2 The Company's existing investment in Madacombe Trading Limited of £1m wasused to make an investment in Veritek Global Limited of £967,780 resulting in anet repayment of £32,220 to the Company. This £967,780 explains the differencebetween investment additions above of £1,007,465 and additions per Note 9 of £39,685. 3 Disclosed within Current assets as Investments at fair value in the BalanceSheet. UNAUDITED INCOME STATEMENT for the six months ended 31 October 2013 Six months ended Year ended Six months ended 31 October 2013 30 April 2013 31 October 2012 (unaudited) (audited) (unaudited) Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total £ £ £ £ £ £ £ £ £ Unrealised 9 - 1,041,227 1,041,227 - 2,556,199 2,556,199 - 99,858 99,858gains oninvestmentsheld atfair value Realised 9 - 6,283 6,283 - 34,319 34,319 - - -gains/(losses) oninvestmentsheld atfair value Income 3 1,140,835 - 1,140,835 1,025,133 - 1,025,133 453,084 - 453,084 Investment 4 (81,217) (243,650) (324,867) (151,992) (455,974) (607,966) (75,955) (227,865)(303,820)managementexpense Other (151,793) - (151,793) (322,286) - (322,286) (150,097) - (150,097)expenses Profit/ 907,825 803,860 1,711,685 550,855 2,134,544 2,685,399 227,032 (128,007) 99,025(loss) onordinaryactivitiesbeforetaxation Tax on 5 (73,076) 73,076 - (88,954) 88,954 - (35,744) 35,744 -profit/(loss) onordinaryactivities Profit/ 834,749 76,936 1,711,685 461,901 2,223,498 2,685,399 191,288 (92,263) 99,025(loss) onordinaryactivitiesaftertaxation Basic anddilutedearningsper share Ordinary 6 3.47p 3.64p 7.11p 1.87p 9.00p 10.87p 0.77p (0.37)p 0.40pshares The total column of this statement is the profit and loss account of theCompany. All revenue and capital items in the above statement derive from continuingoperations. There were no other recognised gains or losses in the period. Other than revaluation movements arising on investments held at fair valuethrough profit and loss there were no differences between the profit/(loss) asstated above and at historical cost. The notes to the unaudited financial statements below form part of theseHalf-Yearly financial statements. UNAUDITED BALANCE SHEET as at 31 October 2013 31 October 2013 30 April 2013 31 October 2012 (unaudited) (audited) (unaudited) Notes £ £ £ Fixed assets Investments at fair 9 20,368,588 21,788,993 20,472,274value Current Assets Debtors 275,459 157,722 170,381 Current Investments 10 3,727,300 3,727,300 3,800,720 Cash at bank 3,212,949 211,420 316,362 7,215,708 4,096,442 4,287,463 Creditors: amounts (314,421) (190,059) (181,548)falling due withinone year Net current assets 6,901,287 3,906,383 4,105,915 Net assets 27,269,875 25,695,376 24,578,189 Capital and reserves 11 Called up share 239,207 240,707 247,673capital Capital redemption 67,440 65,940 58,974reserve Revaluation reserve 3,526,815 2,827,063 193,533 Special distributable 12,349,142 13,176,946 14,202,309reserve Profit and loss 11,087,271 9,384,720 9,875,700account 27,269,875 25,695,376 24,578,189 Net asset value pershare Ordinary shares 7 114.00p 106.75p 99.24p UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS for the six months ended 31 October 2013 Six months Year Six months ended ended ended 31 October 2013 30 April 2013 31 October 2012 (unaudited) (audited) (unaudited) Notes £ £ £ Opening shareholders' 25,695,376 24,526,693 24,526,639funds Net share capital (137,186) (541,894) (55,116)bought back 11 Profit for the period 1,711,685 2,685,399 99,025 Dividends refunded/ 8 - (974,768) 7,641(paid) in period Closing shareholders' 27,269,875 25,695,376 24,578,189funds UNAUDITED CASH FLOW STATEMENT for the six months ended 31 October 2013 Six months Year Six months ended ended ended 31 October 2013 30 April 2013 31 October 2012 (unaudited) (audited) (unaudited) Notes £ £ £ Operating activities Investment income 1,085,470 884,548 494,262received Dividend income 537 157,147 6,209 Other income - 6,678 - Investment management (324,867) (607,966) (303,820)fees paid Other cash payments (129,078) (287,611) (111,895)for other expenses Net cash inflow from 632,062 152,796 84,756operating activities Investing activities Acquisition of 9 (39,685) (281,207) (57,143)investments Disposal of 9 2,457,996 3,380,036 1,982,031investments Net cash inflow from 2,418,311 3,098,829 1,924,888investing activities Dividends Equity dividends paid - (974,768) 7,641 Net cash inflow before 3,050,373 2,276,857 2,017,285liquid resourcemanagement andfinancing Financing Purchase of own shares 11 (48,844) (517,829) (79,895) Net cash outflow from (48,844) (517,829) (79,895)financing Management of liquidresources Decrease in monies - (1,627,394) (1,700,814)held in currentinvestments Increase in cash for 3,001,529 131,634 236,576the period Reconciliation of profit on ordinary activities before taxation to net cashinflow from operating activities for the six months ended 31 October 2013 Six months Year Six months ended ended ended 31 October 2013 30 April 2013 31 October 2012 (unaudited) (audited) (unaudited) £ £ £ Profit on ordinary 1,711,685 2,685,399 99,025activities before taxation Net unrealised gains on (1,041,227) (34,319) (99,858)investments Net gains on realisations (6,283) (2,556,199) -on investments (Increase)/decrease in (68,133) (55,888) 43,229debtors Increase in creditors and 36,020 2,027 42,360accruals Net cash inflow from 632,062 152,796 84,756operating activities The Notes to the unaudited financial statements below form part of theseHalf-Yearly financial statements. Notes to the Unaudited Financial Statements 1. Principal accounting policies The following accounting policies have been applied consistently throughout theperiod. Full details of principal accounting policies will be disclosed in theAnnual Report. a) Basis of accounting The unaudited results cover the six months to 31 October 2013 and have beenprepared under UK Generally Accepted Accounting Practice (UK GAAP), consistentwith the accounting policies set out in the statutory accounts for the yearended 30 April 2013 and the 2009 Statement of Recommended Practice, `FinancialStatements of Investment Trust Companies and Venture Capital Trusts' ("theSORP") issued by the Association of Investment Companies. The financialstatements are prepared under the historical cost convention except for therevaluation of certain investments. The Half-yearly Report has not been audited, nor has it been reviewed by theauditors pursuant to the Auditing Practices Board (APB)'s guidance on Review ofInterim Financial Information. b) Presentation of the Income Statement In order to better reflect the activities of a VCT and in accordance with theSORP, supplementary information which analyses the Income Statement betweenitems of a revenue and capital nature has been presented alongside the IncomeStatement. The revenue column of profit attributable to equity shareholders isthe measure the Directors believe appropriate in assessing the Company'scompliance with certain requirements set out in Section 274 Income Tax Act2007. c) Investments Investments are accounted for on a trade date basis. All investments held by the Company are classified as "fair value throughprofit and loss" as the Company's business is to invest in financial assetswith a view to profiting from their total return in the form of capital growthand income. For investments actively traded in organised financial markets,recognition and fair value is determined by reference to Stock Exchange markettrading rules and quoted bid prices at the close of business on the balancesheet date. Unquoted investments are valued by the Directors at `fair value through profitand loss'. Accordingly, in the absence of a market price, the Directors havevalued unquoted investments in accordance with International Private EquityVenture Capital Valuation (IPEVCV) guidelines as updated in September 2009. All investments are held at the price of a recent investment for an appropriateperiod where there is considered to have been no change in fair value. Wheresuch a basis is no longer considered appropriate, the following factors will beconsidered: (i) Where a value is indicated by a material arms-length transaction by anindependent third party in the shares of a company, this value will be used. (ii) In the absence of i), and depending upon both the subsequent tradingperformance and investment structure of an investee company, the valuationbasis will usually move to either:- a) an earnings multiple basis. The shares may be valued by applying a suitableprice-earnings ratio to that company's historic, current or forecast post-taxearnings before interest and amortisation (the ratio used being based on acomparable sector but the resulting value being adjusted to reflect points ofdifference identified by the Investment Manager compared to the sectorincluding, inter alia, a lack of marketability). or:- b) where a company's underperformance against plan indicates a diminution inthe value of the investment, provision against cost is made, as appropriate.Where the value of an investment has fallen permanently below cost, the loss istreated as a permanent impairment and as a realised loss, even though theinvestment is still held. The Board assesses the portfolio for such investmentsand, after agreement with the Investment Manager, will agree the values thatrepresent the extent to which an investment loss has become realised. This isbased upon an assessment of objective evidence of that investment's futureprospects, to determine whether there is potential for the investment torecover in value. (iii) Premiums on loan stock investments are accrued at fair value when theCompany receives the right to the premium and when considered recoverable. (iv) Where an earnings multiple or cost less impairment basis is notappropriate and overriding factors apply, discounted cash flow or net assetvaluation bases may be applied. d) Capital gains and losses Capital gains and losses on investments, whether realised or unrealised, aredealt with in the profit and loss and revaluation reserves and movements in theperiod are shown in the Income Statement. 2. The Company revoked its status as an investment company on 7 September 2005,so that it can regard realised capital profits as part of the profits availablefor distribution. 3. Income Six months ended Year ended Six months ended 31 October 2013 30 April 2013 31 October 2012 (unaudited) (audited) (unaudited) Income from £ £ £investments Dividends 59,416 135,481 48,314 Money-market funds 7,319 16,684 8,994 Loan stock interest 1,072,501 865,768 388,832 Bank deposit and other 1,599 991 735interest Other income - 6,209 6,209 Total Income 1,140,835 1,025,133 453,084 4. Investment management expense Under the terms of a revised investment management agreement dated 10 September2010, Mobeus provides investment advisory, administrative and companysecretarial services to the Company, for a fee of 2.0% per annum calculated ona quarterly basis by reference to the net assets at the end of the precedingquarter, plus a fee of £104,432 per annum, the latter being subject to changesin the retail prices index each year. In the current period, the Board and theInvestment Manager have agreed that further RPI increases will not occur untilboth parties agree. This agreement replaced the previous agreements with Mobeusdated 10 May 2000 and 20 September 2005, both novated to Mobeus on 20 October2006, and the accounting services agreement and the secretarial servicesagreement with Matrix-Securities Limited both dated 20 September 2005, all ofwhich were terminated on 10 September 2010. In accordance with the policystatement published under "Management and Administration" in the Company'sprospectus dated 10 May 2000, the Directors have charged 75% of the investmentmanagement expenses to the capital account. This is in line with the Board'sexpectation of the long-term split of returns from the investment portfolio ofthe Company. 5. Taxation There is no tax charge in the period as the Company has utilised tax lossesbrought forward from previous years. 6. Basic and diluted earnings per share Six months Year Six months ended ended ended 31 31 October 2013 30 April 2013 October 2012 (unaudited) (audited) (unaudited) Ordinary Ordinary Ordinary shares shares shares £ £ £ Total earnings after 1,711,685 2,685,399 99,025taxation: Basic and diluted earnings 7.11p 10.87p 0.40pper share (note a) Net revenue from ordinary 834,749 461,901 191,288activities after taxation Basic and diluted revenue 3.47p 1.87p 0.77pearnings per share (noteb) Net realised capital gains 1,041,227 2,556,199 99,858 Net unrealised capital 6,283 34,319 -gains Capital expenses (net of (170,574) (367,020) (192,121)taxation) Total capital return 876,936 2,223,498 (92,263) Basic and diluted capital 3.64p 9.00p (0.37)pearnings per share (notec) Weighted average number of 24,069,103 24,697,137 24,824,253shares in issue in theperiod Notes: a. Basic and diluted earnings per share is total earnings after taxation divided by the weighted average number of shares in issue. b. Basic and diluted revenue earnings per share is revenue earnings after taxation divided by the weighted average number of shares in issue. c. Basic and diluted capital earnings per share is total capital earnings divided by the weighted average number of shares in issue. 7. Net asset value per share As at 31 October As at 30 As at 31 2013 April 2013 October 2012 (unaudited) (audited) (unaudited) £ £ £ Net assets 27,269,875 25,695,376 24,578,189 Number of shares in issue 23,920,716 24,070,716 24,767,305 Net asset value per share 114.00 p 106.75 p 99.24 p(pence) 8. Dividends paid Six months Year Six months to 31 October to 30 April to 31 October 2013 2013 2012 (unaudited) (audited) (unaudited) £ £ £ Ordinary shares Interim capital dividend - 303,182 -paid for the year ended 30April 2013 of 1.25p pershare Interim income dividend - 671,586 -paid for the year ended 30April 2013 of 2.75p pershare Dividends refunded* - - (7,641) Total - 974,768 (7,641) * - This amount represents dividends that were paid on shares that weresubsequently bought back by the Company. As a result, the dividends have beenrefunded to the Company. An interim dividend of 0.1 pence per share for the year ended 30 April 2013 wasdeclared in the previous year. An interim dividend of 4.9 pence per share hasbeen declared in the current period. The aggregate of 5.0 pence per share willbe paid on 21 March 2014 to shareholders on the Register on 28 February 2014. 9. Summary of fixed asset investments at fair value during the period Traded Unquoted Preference Qualifying Total on AiM Ordinary shares loans or OFEX shares £ £ £ £ £ Cost at 1 May 2013 469,584 6,365,282 39,734 14,764,699 21,639,299 Unrealised gains/ 116,964 934,828 (16,736) 544,194 1,579,250(losses) at 30 April2013 Permanent impairment at (254,586) (400,106) - (774,864) (1,429,556)30 April 2013 Value at 30 April 2013 331,962 6,900,004 22,998 14,534,029 21,788,993 Purchases at cost - - - 39,685 39,685 Sale proceeds - - - (2,507,600) (2,507,600) (Decrease)/increase in (90,089) 991,200 - 140,116 1,041,227unrealised gains Reclassification at cost - (373,999) 699 373,300 -/valuation Realised gains - - - 6,283 6,283 Valuation at 31 October 241,873 7,517,205 23,697 12,585,813 20,368,5882013 Book cost at 31 October 469,584 5,991,283 40,433 13,117,449 19,618,7492013 Unrealised gains/ 26,875 2,409,798 (15,997) 278,762 2,699,438(losses) at 31 October2013 Permanent impairment at (254,586) (883,876) (739) (810,398) (1,949,599)31 October 2013 Valuation at 31 October 241,873 7,517,205 23,697 12,585,813 20,368,5882013 Unrealised (losses)/ (137,622) 534,722 (16,736) (230,670) 149,694gains at 1 May 2013 Net movement in (90,089) 991,200 - 140,116 1,041,227unrealised(depreciation)/appreciation in theperiod Permanent impairments in - (483,770) (739) (35,535) (520,044)the period Realisation of - 483,770 739 (405,547) 78,962previously unrealisedgains/(losses) (Losses)/gains on (227,711) 1,525,922 (16,736) (531,636) 749,839investments at 31October 2013 Investment sale proceeds shown in the Cash Flow Statement of £2,457,996 differto that shown above by £49,604. This is due to a loan repayment from FavershamHouse Holdings Limited which settled after the period end. 10. Current asset investments at fair value Current asset investments comprise investments in four OEIC money market funds(three Dublin based and one London based), managed by Blackrock InvestmentManagement (UK) Ltd, Royal Bank of Scotland, Federated Prime Rate CapitalManagement and Scottish Widows Investment Partnership. All of this sum, £3,727,300 (30 April 2013: £3,727,300; 31 October 2012: £3,800,720), is subjectto same day access. 11. Movement in share capital and reserves Called up Capital Special Profit share redemption Revaluation distributable and loss capital reserve reserve reserve account Total £ £ £ £ £ £ At 30 April 240,707 65,940 2,827,063 13,176,946 9,384,720 25,695,3762013 Shares bought (1,500) 1,500 - (137,186) - (137,186)back Transfer of - - - (690,618) 690,618 -realisedcapital lossesto Specialdistributablereserve (note) Realised gain - - - - 6,283 6,283on investments Realisation of - - (341,475) - 341,475 -previouslyunrealised gain Profit for the - - 1,041,227 - 664,175 1,705,402period At 31 October 239,207 67,440 3,526,815 12,349,142 11,087,271 27,269,8752013 The cost of shares bought back shown in the Cash Flow Statement of £48,844differs to that disclosed above by £88,342. This is due to an opening sharebuyback creditor of £48,844 settled during the period and a closing balance of£137,186. The Special distributable reserve provides the Company with a reserve out ofwhich it can fund buy-backs of the Company's shares as and when it isconsidered by the Board to be in the interests of the shareholders, and toabsorb any existing and future realised losses. Under Resolution 11 of theAnnual General Meeting held on 20 September 2013, shareholders authorised theCompany to purchase its own shares pursuant to section 693(4) of the CompaniesAct 2006. The authority is limited to a maximum of 14.99% of the issuedOrdinary share capital of the Company, and will unless, previously revoked orrenewed, expire on the conclusion of the Annual General Meeting of the Companyto be held in 2014. The maximum price that may be paid for Ordinary shares will be an amount equalto 105% of the average of the middle market quotation as taken from the LondonStock Exchange daily official list for the five business days immediatelypreceding the day on which that Ordinary share is purchased. The minimum pricethat may be paid for Ordinary shares is 1 penny per share. The authorityprovides that the Company may make a contract to purchase Ordinary shares underthe authority conferred by this resolution prior to the expiry of suchauthority which will or may be executed wholly or partly after the expirationof such authority and may make a purchase of Ordinary shares pursuant to suchcontract. 12. Statutory Information The financial information set out in this Half-Yearly Report does notconstitute statutory accounts as defined in section 434 of the Companies Act2006. The information for the year ended 30 April 2013 has been extracted fromthe latest published audited financial statements, which have been filed withthe Registrar of Companies. The auditors have reported on these financialstatements and that report was unqualified and did not contain a statementunder section 498 (2) or (3) of the Companies Act 2006. 13. Half-Yearly Report Copies of this statement are being sent to all shareholders. Further copies areavailable free of charge from the Company's registered office, 30 Haymarket,London, SW1Y 4EX, or can be downloaded via the Company's website atwww.mig2vct.co.uk. INVESTOR PERFORMANCE APPENDIX Performance data at 31 October 2013 The two former 'C' and Ordinary classes of shares were merged on 10 September2010, and the 'C' share class redesignated as Ordinary shares. The followingtables show, for all investors in the former share classes, how theirinvestments have performed since they were originally allotted shares in eachfundraising. Total return data, which includes cumulative dividends paid to date, is shownon both a share price and NAV basis as at 31 October 2013. The NAV basisenables shareholders to evaluate more clearly the performance of the InvestmentManager, as it reflects the underlying value of the portfolio at the reportingdate. This is the most widely used measure of performance in the VCT sector. Ordinary share fund Share price as at 31 October 2013 93.50p 1 NAV per share as at 31 October 2013 114.00p Cumulative total return per share to shareholders since allotment Allotment Allotment Net Cumulative (Share (NAV % increasedate(s) price allotment dividends price) basis) since 30 price 2 paid per basis) April 2013 share4 (NAV basis) (p) (p) (p) (p) (p) (%) Funds raised 2005/06 Between 16 100.00 60.00 18.00 111.50 132.00 5.81%December 2005and 5 April2006 Funds raised 2008/09 Between 3 92.39 64.67 14.00 107.50 128.00 6.00%April 2009and 18 June2009 Former Ordinary share fund Share price 77.32pas at 31October 2013 NAV per share 94.28pas at 31October 2013 Shareholders in the former Ordinary share fund received 0.827 shares in theCompany for each former Ordinary share that they held on 10 September 2010,when the two share classes merged. Both the share price and the NAV per shareshown above have been adjusted using this merger ratio. Cumulative total return per share to shareholders since allotment % increase since 30 April 2013 Allotment date Allotment Net Cumulative (Share (NAV (NAV(s) price allotment dividends paid price basis) basis) price 2 per share4 basis) (p) (p) (p) (p) (p) % Funds raised 2000/01 3 Between 30 May 100.00 80.00 36.72 114.04 131.00 4.80%2000 and 11December 2000 1 - Source: London StockExchange (mid-price basis). 2 - Net allotment price is the allotment price less applicable income taxrelief. The tax relief was 20% up to 5 April 2004, 40% from 6 April 2004 to 5April 2006, and 30% thereafter. 3 - Investors in this fundraising may also have enhanced returnsif they had also deferred capital gains tax liabilities. 4 - For derivation, see table below. Cumulative dividends paid Funds Funds Funds raised raised raised 2000/01 2005/06 2008/09 (p) (p) (p) 19 April 2013 3.31 1 4.00 4.00 20 April 2012 3.31 1 4.00 4.00 20 April 2011 3.31 1 4.00 4.00 10 September 2010 - Merger of Ordinary share fund and C share fund 13 August 2010 - 1.00 1.00 19 September 2009 - 1.00 1.00 23 July 2008 6.00 2.50 19 September 2007 6.00 1.50 8 February 2006 6.00 20 October 2005 6.00 24 September 2003 0.51 16 September 2002 1.35 10 September 2001 0.93 36.72 18.00 14.00 1 - The dividends paid after the merger of the shareclasses on 10 September 2010 to former Ordinary sharefund shareholders have been restated to reflect themerger conversion ratio of approximately 0.827. Contact details for further enquiries: Robert Brittain at Mobeus Equity Partners LLP (the Company Secretary) on 0207024 7600 or by e-mail on mig2@mobeusequity.co.uk Mark Wignall or Mike Walker at Mobeus Equity Partners LLP (the InvestmentManager), on 020 7024 7600 or by e-mail on info@mobeusequity.co.uk. DISCLAIMER Neither the contents of the Company's website nor the contents of any websiteaccessible from hyperlinks on the Company's website (or any other website) isincorporated into, or forms part of, this announcement.