Maven Grwth 3 Regulatory News (MIG3)

Maven Income and Growth VCT 3 PLC

Announcement of Half-yearly Report

Interim Management Report

Overview

The continuing focus for your Company is to achieve long-term capital appreciation and to generate maintainable levels of tax free income for Shareholders through the ongoing expansion of the private equity asset base.

During the six month period to 31 May 2013 net assets increased by a further 4.7% to £27.0 million, including the proceeds of the successful Offer for Subscription which closed on 11 February 2013. The portfolio now includes 41 later-stage private company investments, the majority of which are trading positively and paying a yield, and continues to generate strong levels of revenue, which is an important component in your Company's ability to sustain an attractive level of distributions to Shareholders. Consequently, your Board is pleased to declare an interim dividend of 2.0p per share.

The Maven team has continued to seek out profitable UK companies with established revenue streams. During the period several significant new assets were added to the portfolio and three profitable realisations were achieved, which produced capital gains of £1,584,000.

We are pleased to note a number of awards in recognition of the quality of the Company's unlisted portfolio and Maven's investment management strategy. In April 2013 Torridon was announced as the Midlands regional winner of the Mid-Market Private Equity-Backed Management Team of the Year award at the BVCA Management Team Awards. In the following month Maven was announced as winner of Scottish Investor of the Year at the Acquisition International M&A Awards, which recognise consistent achievement in the private equity/transactional marketplace.

Highlights

• NAV total return of 117.05p per share at 31 May 2013, up 2.90p (2.5%) from 30 November 2012;

• NAV at period end of 82.60p per share after payment of the final dividend of 3.00p;

• Realisation of Atlantic Foods Group for a total return of 1.8x cost;

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

• Partial exit from Homelux Nenplas alongside a secondary buy-out of the Nenplas business; and

• Successful IPO of esure.

The most important measure of performance for a VCT is the NAV total return, which is the long term record of dividend payments out of income and capital gains combined with the current NAV.

Dividends

The Board has declared an interim dividend of 2.0p per share, comprising 1.0p of revenue and 1.0p of capital, to be paid on 30 August 2013 to Shareholders on the register on 9 August 2013. Since the Company's launch, and after receipt of the proposed interim dividend, Shareholders who invested at the outset will have received 36.45p per share in tax-free dividends.

The Board regards the growing level of dividends as an indication of the success of the Company's investment strategy and is committed to improving Shareholder distributions in future years as the portfolio continues to expand and mature.

Investment Activity

During the period the Maven team completed five substantial new private equity investments on behalf of your Company, alongside six follow-on investments in existing portfolio companies. At the period end, the portfolio consisted unlisted and AIM investments with a total cost of £22.03 million.

The following investments have been completed during the period:

Your Company has co-invested in some or all of the above transactions with Maven Income and Growth VCT, Maven Income and Growth VCT 2, Maven Income and Growth VCT 4, Maven Income and Growth VCT 5 and Talisman First Venture Capital Trust. The Company is expected to continue to co-invest with all other Maven VCT clients, which offers the advantage that together they are able to underwrite a wider range and larger size of transactions than would be the case on a stand-alone basis.

New investment activity

Five private company investments were added to the portfolio during the period under review:

·; Airth Capital, a new company set up to invest in a food services business, a sector where Maven has made a number of successful investments and sees the potential for further opportunities;

·; Burray Capital, a new company established to invest in the oil & gas sector, which subsequently acquired a manufacturing business that specialises in instrumentation control packages for the onshore and offshore industries;

·; Grangeford, a company which owns and manages a large portfolio of ground rents throughout the UK, which are asset backed yielding investments that provide long term, low risk returns. This transaction is projected to generate capital gain over a 42 month term alongside a 9% yield;

·; Kelvinlea, a new company established to acquire a small portfolio of residential properties at a discount to market and carry out a refurbishment and sales programme over an 18 to 24 month period. The transaction provides an 8.5% paid yield and is also forecast to generate a significant capital gain when the project is completed and all assets are sold; and

·; Ensco 969, a new company formed to acquire DPP, an established business that provides planned and reactive mechanical and electrical maintenance services to operators of pubs, restaurants and retail chains, predominantly in the South of England. DPP has strong levels of contractual and recurring revenues and a sound track record of attracting new clients and increasing both the breadth of service and geography within which it is delivered.

In March 2013 Maven led the successful partial exit from Homelux Nenplas via the sale of the Homelux Division to US firm QEP Company Inc. The disposal of Homelux was completed alongside a secondary buyout of Nenplas by Maven and the existing management team. The remaining business, Nenplas Holdings, will focus on continuing to deliver innovative extruded plastic products and solutions and is expected to grow significantly over the next few years through organic opportunities and by making new acquisitions. Additional funding was provided in May 2013 to support the purchase of a plastic extrusion business based in Worcestershire.

A commitment has also been made to provide a fully secured mezzanine loan to Maven Capital (Llandudno) to fund the refurbishment of a hotel in North Wales with a long lease in place. The transaction will provide an 8.65% running yield following completion of the development.

Realisations

In March 2013 esure achieved a successful IPO, and a realisation at the carrying value was crystallised in May, with the majority of exit proceeds being received in cash alongside a small element of stock that will be subject to the normal price fluctuations associated with fully listed holdings.

There was one full exit from a private company investment during the period with the sale of Atlantic Foods Group to the US-based Flagship Food Group, which was completed in May 2013 for a 1.8 times return on cost.

The Manager is currently engaged with investee companies and prospective acquirers at various stages of a potential exit process. This 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.

One private company was struck off the Register during the period resulting in a realised loss of £103,000 (Cost £103,000). This had no effect on the NAV as a full provision had been made in earlier years.

In respect of AIM holdings the Manager has continued its policy of disposing of quoted holdings for best possible value in cases where the investments were underperforming.

Material developments since period end

Since 31 May 2013 twofollow-on investments have been completed in existing portfolio companies: to enable Glacier Energy Services to complete the acquisition of a complementary energy service business which provides inspection and non-destructive testing services to the oil & gas and renewables industries; and for additional investment by John McGavigan in a low cost manufacturing operation in China. Three new companies were established to invest in the retail, manufacturing and e-commerce sectors.

In early June 2013, Burray Capital completed the acquisition of HCS Controls, a long-established business that designs, manufactures, assembles and tests instrumentation control packages for the onshore and worldwide offshore oil & gas industry. HCS enjoys a large degree of repeat business from a loyal customer base and will focus on growth through internationalisation into key overseas markets.

In the same month, Maven completed an investment in Lambert Contracts, a leading specialist contractor in insurance reinstatement, property maintenance and fire protection that benefits from long-term relationships with major insurance companies, loss adjustors and property managers.

Following a serious fire at the Lawrence Recycling and Waste Management waste recycling plant in June 2013, which has adversely impacted upon the company's trading prospects, the investment has been written down pending further developments. The reduced value is reflected in the statement of NAV at 31 May 2013.

Principal risks and uncertainties

The principal risks and uncertainties facing the Company are set out in full in the 2012 Annual Report. These are the risks associated with investment in small and unquoted companies. In order to reduce exposure to investment risk the Company has invested in a broadly-based portfolio of maturing companies in the United Kingdom.

The VCT qualifying status of the Company is reviewed regularly by your Board and monitored on a continuous basis by the Manager in order to ensure that all of the criteria for VCT qualifying status are met. The Board has confirmed that all tests continue to be met.

VCT Regulation

The AIC worked closely with the FSA on Consultation Paper 12-19 (restrictions on the retail distribution of unregulated collective investment schemes and close substitutes) and its applicability to venture capital trusts. The Company has supported the AIC in calling on the FSA to exclude VCTs from the proposals in the same way that investment trusts have been and was pleased to note the announcement by the FCA (which replaced the FSA) that VCTs have been excluded from the marketing restrictions.

The Manager monitors all potential regulatory changes that are under consideration and keeps the Board informed of any implications for the Company.

VCT Offers and fund raising

A top-up Offer was opened on 23 January 2013 in parallel with similar Offers by Maven Income and Growth VCT, Maven Income and Growth VCT 2 and Maven Income and Growth VCT 5. The Offer was oversubscribed and closed early on 11 February 2013 resulting in the issue of 1,781,572 new Ordinary Shares and raising an additional £1.5 million of share capital.

The Company may use the money raised under the Offer to pay dividends 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 Offer will also provide additional liquidity for the Company to make further later-stage investments, and enable it to spread its costs over a larger asset base to the benefit of all Shareholders.

Share Buy-back Policy

Shareholders have given the Board authority to buy back Shares for cancellation when it is in the interests of the Shareholders. 284,000 Shares were bought back during the period at a cost of £220,543. Details of the parameters within which the Company may carry out share buy-backs are given in the Directors' Report in the Annual Report.

Outlook

Your Company will continue to focus on investing at prudent entry multiples in later-stage private companies with strong management teams which are capable of paying regular income and offer significant potential for capital growth.

We believe this strategy is the optimal approach to deliver growth in Shareholder value and to support a progressive dividend programme.

Directors' Responsibility Statement

We confirm that to the best of our knowledge:

·; the Financial Statements have been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued in January 2009;

·; the Interim Management Report includes a fair review of the information required by DTR 4.2.7 R 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 ended 30 November 2013; and

·; the Interim Management Report includes adequate disclosure of the information required by DTR 4.2.8 R in relation to related party transactions and any changes to them.

On behalf of the Board

Maven Capital Partners UK LLP

Secretary

15 July 2013

Other information

Copies of this announcement will be available to the public at the registered office of the Company at 1 - 2 Royal Exchange Buildings, London, EC3V 3LF, on the Company's website at www.mavencp.com/migvct3 and at the National Storage Mechanism.

Issued on behalf of the Board

Maven Capital Partners UK LLP

Secretary

15 July 2013

ENDS

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.