Maven Income 1 Regulatory News (MIG1)

Maven Income and Growth VCT PLC

Interim results for the six months ended 31 August 2014 (unaudited)

The Directors are pleased to announce the unaudited Interim Management Report for the six months ended 31 August 2014.

Highlights

• NAV Total return of 124.9p per share at 31 August 2014, up from 123.4p at 28 February 2014;

• NAV at period end of 66.1p per share after payment of the final dividend of 3.5p;

• Four new investments added to the portfolio during the period;

• Increased interim dividend declared of 2.4p per share (2013: 2.2p).

Overview

The continuing objective for your Company is to achieve long term capital appreciation and generate maintainable levels of income for Shareholders, by investing in a diversified portfolio of later-stage private businesses and AIM/ISDX quoted companies with established revenue streams and strong growth potential. During the six month period to 31 August 2014, a combination of valuation uplifts, investment returns and realisation proceeds has contributed to a further increase in NAV total return to 124.9p per share.

During the reporting period the Maven team has continued to source suitable investment opportunities in profitable businesses across the UK, and the asset base now includes 47 private companies, the majority of which are trading in line with or ahead of plan, and paying a regular yield. This revenue is an important component in your Company's ability to sustain an attractive level of tax-free distributions to Shareholders and, consequently, your Board is pleased to declare an increased interim dividend of 2.4p per share at the half-year.

Several significant new private company holdings were added to the portfolio during the six month period. In March 2014, an investment was completed in ISN Solutions Group, an IT support and services business. Maven supported the buy-in/management buy-out of RMEC Group in April 2014 and, in the following month, led a secondary buy-out of Just Trays from Gresham Private Equity. Most recently, an investment was completed in Crawford Scientific Holdings, a long established specialist in chromatography processes.

Dividends

The Board has declared an increased interim dividend of 2.4p per Ordinary Share, comprising 1.0p of revenue and 1.4p of capital, to be paid on 5 December 2014 to Shareholders on the Register at 14 November 2014. After receipt of the interim dividend, Shareholders who invested in the Company at the outset will have received 61.2p per share in tax-free dividends. The effect of paying the dividend will be to reduce the NAV of the Company by the total cost of the distribution.

Portfolio Developments

The private equity portfolio has generally performed well and a number of companies, including several of the most recent investments, are performing ahead of plan and already becoming valuable assets for your Company. Following an initial investment in December 2013, additional funding has been provided to D Mack to develop its range of passenger car tyres. The company's profile has been boosted by exceptional performances at the 2014 World Rally Championship events.

Torridon (Gibraltar), trading through its subsidiary Elite Insurance, offers specialist insurance solutions and exceptional service across a full range of general insurance classes. Its experienced in-house underwriting teams, delivering bespoke proposals supported by a full risk assessment and effective decision-making, have also established Elite as a market leading provider of legal expenses insurance. The team has continued to expand the product range, and currently offers over eighty lines across Europe, covering before-the-event, after-the-event and clinical negligence.

HCS Control Systems Group, which specialises in the design, manufacture and testing of equipment for the global subsea industry, has a strategy to grow through expansion into key markets and has achieved a number of milestones since the investment in June 2013. Trading results have exceeded expectations and the business has won several new contracts, including a multi-million pound project to provide services for the BP Quad 204 development off the coast of Shetland.

Nenplas Holdings has continued to perform ahead of plan due to operational efficiencies achieved following the integration of Polyplas, increased sales volumes and favourable market conditions. This has led to an uplift in the valuation and a second acquisition is expected to be announced in the near future.

Conversely, some companies have seen trading below plan and, in light of current performance, your Board has

taken the prudent step of reducing the valuation of the holdings in CHS Engineering Services and DPP.

New Investments

During the period your Company participated in four new private equity transactions, alongside follow-on investments supporting the development of existing portfolio companies.

· ISN Solutions Group, a business headquartered in London providing consultancy, project management and outsourced IT services to a niche client base in the upstream exploration and production oil & gas sector;

· RMEC Group, a Forfar based specialist provider of engineering solutions and pressure control equipment to multinational oil service companies;

· Just Trays, the UK's leading manufacturer of shower trays and related accessories, with all product design, development and production undertaken at its main facility in Leeds; and

· Crawford Scientific Holdings, a leading supplier of chromatography products and services to blue-chip clients and laboratories across the UK, Europe and the US. The business will look to expand through organic growth and by making strategic bolt-on acquisitions.

The following investments have been completed during the period:

At the period end, the portfolio stood at 59 unlisted and quoted investments at a total cost of £25.7 million.

Realisations

The mezzanine loan provided to Tuscola (FC100) was repaid in full during May 2014, and your existing portfolio company Kelvinlea acquired Moriond in June 2014 in a transaction that will create synergies in the marketing process as the remaining residential properties held by both companies are sold. In the same month, House of Dorchester was sold at carrying value to a UK trade buyer.

The Manager is currently engaged with several investee companies and prospective acquirers at various stages of a potential exit process. This realisation activity reflects the increasing maturity of a number of holdings, but it should be noted that there can be no certainty that these discussions will lead to profitable sales.

The table below gives details of all realisations during the reporting period:

1 Holding includes loan stock of £300,000 acquired after the year-end; proceeds include £394,000 payable in equal instalments over the next five years.

2 Holding acquired and realised during the period.

3 Proceeds exclude yield and redemption premiums received, which are disclosed as revenue for financial reporting purposes.

The table includes the redemption of loan notes by a number of investee companies.

Material Developments Since the Period End

Since 31 August 2014, two follow-on investments have been completed in existing portfolio companies and one new private company asset has been added to the portfolio. In October 2014, a new investment was completed in Endura, a fast growing designer and manufacturer of branded apparel for the key cycling categories of mountain, road, performance and leisure. Endura products are sold in over 30 countries and the brand is currently the largest in the UK market. This transaction was led by Penta Capital, an established private equity firm with which Maven previously co-invested in esure, Six Degrees Group and Global Risk Partners.

A profitable realisation was achieved in September 2014 when specialist environmental services business Adler and Allan Holdings was acquired by UK private equity house, LDC, for a 2.6 times return on cost. Maven clients first invested in 2007, alongside Spirit Capital Partners, to support the company's growth and, since then, have backed a series of acquisitions to help the group gain scale and grow shareholder value.

Principal Risks and Uncertainties

The principal risks and uncertainties facing the Company were set out in full in the Strategic Report contained within the 2014 Annual Report, and are the risks associated with investment in small and medium sized unlisted and AIM/ISDX quoted companies, which by their nature, entail a higher risk and lower liquidity than investments in large quoted companies.

The valuation of investee companies may be affected by economic conditions and the credit environment, and other risks include 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 your Board and monitored continually by the Manager, and the Board has confirmed that all tests, including the criteria for VCT qualifying status, continue to be met.

Fund Raising

In September 2013, the Company announced that it planned to raise up to £4 million in a joint Offer for subscription alongside the other Maven VCTs. The first allotment under the Offer took place on 3 February 2014 when 3,561,029 new Ordinary Shares were issued. The Offer was fully subscribed by 4 April 2014, and closed on 5 April 2014 in relation to the tax year 2013/14. A further allotment of 1,892,753 new Ordinary Shares took place on 5 April 2014. In consideration of certain provisions contained within The Finance Bill 2014, which could have had adverse tax consequences for the Company and its Shareholders, the Board decided to postpone the issue of new shares under the Offer in respect of the 2014/15 tax year until there was certainty that the allotments could take place without contravening the new rules. HM Treasury has since clarified the operation of the proposed changes to regulations, and the Offer was subsequently closed on 30 May 2014, with a final allotment of 822,068 new Ordinary Shares taking place on 1 July 2014, using the over-allotment facility set out in the Prospectus.

On 1 October 2014, the Company announced that it is planning to raise up to £4 million in an Offer for Subscription alongside Maven Income and Growth VCT 2, Maven Income and Growth VCT 3 and Maven Income and Growth VCT 5, each also aiming to raise up to £4 million; and Maven Income and Growth VCT 4 aiming to raise up to £2 million. It is anticipated that the Offers will remain open until 1 April 2015 in respect of the 2014/15 tax year and until 28 April 2015 in respect of the 2015/16 tax year, unless fully subscribed at an earlier date and subject to the Directors' right to close or extend the Offers at any time. The full terms and conditions of the Offers are set out in a detailed Prospectus that was issued on 20 October 2014, together with a Circular relating to proposals in connection with the Offers.

The Company may use the money raised under the Offers to pay dividends (subject to meeting the requirements of the new return of capital legislation) and general running costs, thereby preserving for investment purposes an equivalent sum of more valuable 'old money' which operates under more advantageous VCT regulations. The proceeds of the Offers will also provide additional liquidity for the Company to make further investments, and enable it to spread its costs over a larger asset base to the benefit of all Shareholders.

Share Buy-backs

Shareholders have given the Board authority to buy back Shares for cancellation or to be held in treasury, subject always to such transactions being in the best interests of Shareholders. It is intended that, subject to market conditions, available liquidity and the maintenance of the Company's VCT status, Shares will be bought back at prices representing a discount in the range of 5% to 10% to the prevailing NAV per share. During the period under review, 225,000 Shares were bought back at a total cost of £143,000.

VCT Regulatory Developments

The AIFM Directive came into force on 21 July 2011 and was implemented within the UK on 22 July 2013. The Board and the Manager engaged legal advisers to ensure that the impact of the legislation had been considered fully, and the Board has taken the decision to register Maven Income and Growth VCT PLC as a self-managed small registered AIFM. This has enabled the Company to take advantage of the reduced reporting requirements and avoid the direct and indirect costs of appointing a depositary. The Company was registered on 22 July 2014; governance and procedures are in place to ensure compliance with the Directive.

The Association of Investment Companies (AIC) has participated in a consultation process aimed at ensuring the Government's continued long-term support for the VCT sector by addressing concerns from HM Treasury that enhanced share buy-back (EBB) schemes conflict with the public policy objectives of VCTs. Whilst the buy-back and cancellation of shares will continue to be permitted, EBBs are now prohibited.

HM Treasury had published draft legislation to address its concerns about the use of share premium accounts to return capital to investors, which will prevent VCTs returning capital within three years of the accounting period in which the shares were issued. These changes were effective from 6 April 2014 but, as the provisions may have affected the ability to pay dividends out of reserves created from the reduction of share premium or capital where the VCT had issued shares of the same class before and after 5 April 2014, the AIC sought clarification on this matter. HM Treasury has confirmed that the new rule will apply only in respect of returns of capital from shares issued on or after 6 April 2014, and the draft legislation was amended prior to receiving Royal Assent in July 2014.

Distribution of Annual and Interim Reports

A number of Shareholders have expressed an interest in receiving notification, by post or e-mail, that documents, including annual and interim reports, are available on the Company's website as an alternative to receiving them by post. The ability to do so is provided for under the Articles of Association, and a letter of request is included with this Interim Report for Shareholders to complete and return to confirm whether or not they wish to take advantage of this facility. It should be noted that the option to receive documents by post will still be available. However, should no letter of request be received advising to the contrary, Shareholders will be deemed as having given their consent to receiving only postal notifications that documents are available on the website.

Dividend Reinvestment Scheme

The Directors intend to implement a Dividend Reinvestment Scheme through which Shareholders may elect to have their entitlement to dividend payments used to apply for additional Ordinary Shares issued by the Company under the standing authority requested from Shareholders at Annual General Meetings. Details of the scheme and an application form will be issued in advance of the payment of the final dividend for the year ending 28 February 2015.

Outlook

Your Company will continue to focus on investing at attractive entry values in established UK businesses that are capable of generating income and have significant potential for capital appreciation. The Board and the Manager believe this strategy continues to be the optimal approach for supporting a progressive dividend programme and delivering consistent growth in Shareholder value.

On behalf of the Board

Maven Capital Partners UK LLP

Secretary

28 October 2014

A Statement of Total Recognised Gains and Losses has not been prepared, as all gains and losses are recognised in the Income Statement.

All items in the above statement are derived from continuing operations. The Company has only one class of business and derives its income from investments made in shares, securities and bank deposits.

The total column of this Statement is the Profit and Loss Account of the Company.

Maven Income and Growth VCT PLC

Notes to the Financial Statements

1. Accounting policies

The financial information for the six months ended 31 August 2014 and the six months ended 31 August 2013 comprises non-statutory accounts within the meaning 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 28 February 2014, which have been filed at Companies House and which contained an Auditor's Report which was not qualified and did not contain a statement under S498(2) or S498(3) of the Companies Act 2006.

2. Movement in reserves

3. Returns per Ordinary Share

The returns per Ordinary Share are based on the following figures:

Directors' responsibility statement

The Directors confirm that, to the best of their knowledge:

· the Financial Statements for the six months ended 31 August 2014 have been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' issued in January 2009;

· 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 risks and uncertainties facing the Company during the second six months, of the year ending 28 February 2015; 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 August 2014 of 48,313,575.

A summary of investment changes for the six months under review and an investment portfolio summary as at 31 August 2014 are included above.

A full copy of the Interim Report and Financial Statements will be printed and issued to Shareholders. 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 and at the registered office of the Company, 5th Floor, 1-2 Royal Exchange Buildings, London EC3V 3LF.

On behalf of the Board

Maven Capital Partners UK LLP

Secretary

28 October 2014