Mobeus I&g 4 Regulatory News (MIG4)

Mobeus Income & Growth 4 VCT plc ("MIG4" or the "Company" or the "VCT")

Annual Results Announcement for the eleven months ended 31 December 2012

INVESTMENT OBJECTIVE

Mobeus Income & Growth 4 VCT plc, formerly Matrix Income & Growth 4VCT plc ("MIG4", the "Company" or the "Fund") is a Venture Capital Trust("VCT") managed by Mobeus Equity Partners LLP, previously Matrix PrivateEquity Partners LLP ("Mobeus"), investing primarily in established,profitable, unquoted companies.

The objective of the Company is to provide investors with a regularincome stream by way of tax free dividends and to generate capital growththrough portfolio realisations which can be distributed by way of additionaltax free dividends.

DIVIDEND POLICY

The Company seeks to pay dividends at least annually out of incomeand capital as appropriate, and subject to fulfilling certain regulatoryrequirements.

FINANCIAL HIGHLIGHTS

Results for the eleven months ended 31 December 2012

§ - Net Asset Value ("NAV") Total Return per share was 4.8% for the

period.

§ - Interim dividend of 5.5 pence per share for the eleven months

ended 31 December 2012 has been declared by the Directors and

will be payable on 10 May 2013. This will bring cumulative

dividends paid to date to 32.2 pence per share.§§ - Strong liquidity has been further enhanced by two successful

fundraisings (one in period, one current), in which the Company

has raised and allotted a further £7.0 million to date, plus £3.0

million of further subscriptions received.§§ - The Company realised its investment in Iglu.com Holidays in May

2012 for an overall return of 2.53 times the original investment

cost in two and a half years.

§ - The cumulative NAV Total Return per share at 31 December 2012 was

144.0 pence.

PERFORMANCE SUMMARY

The net asset value (NAV) per share as at 31 December 2012 was117.31 pence

Performance data for all fundraising rounds areshown in a table on pages 56 and 57 of the Annual Report and Accounts (the"Annual Report" or "Report").

The table below shows the recent past performanceof the original funds raised in 1999. As at Net assets Net asset Share price Cumulative Cumulative Cumulative value (mid-market dividends total return total return (NAV) per price) paid per per Share to per Share to share share Shareholders Shareholders (p)1 since launch2 since (NAV basis) launch2 (Share price (p) (p) basis) (p)2 (p)2 (£ m)31 December 33.5 117.3 102.5 26.7 129.2 144.0201231 January 2012 29.4 116.7 100.0 21.7 121.7 138.431 January 2011 25.3 112.9 103.5 18.7 122.2 131.6

1 Source: London Stock Exchange 2 Total returns to Shareholders includedividends paid

In the graph below, the NAV and share price total returns toshareholders comprise the NAV and share price respectively, assuming thedividends paid were re-invested on the date on which the shares were quotedex-dividend in respect of each dividend. The total return figures have beenrebased to 100 pence at 31 January 2008.

Total shareholder return for the last five years compared to theFTSE SmallCap and AiM All-Share Indices

graph can be found on page 2 of the Annual Report.

CHAIRMAN'S STATEMENT

I am pleased to present to Shareholders the Annual Report of theCompany for the eleven months ended 31December 2012. The Company has moved itsyear-end forward to 31 December from 31 January, which is why this Reportcovers eleven months. The reason for this is to simplify linked offerfundraising timetables. It also changed its name from Matrix Income & Growth 4VCT plc to Mobeus Income & Growth 4 VCT plc on 29 June 2012.

Overview

The period under review was again dominated by continuing concernsabout the severity and length of the UK recession. Further concerns revolvearound the continuing large UK public debt position, and the possible returnof inflation.

Despite this rather gloomy macro- economic background, there isgood progress in the portfolio overall. Many companies in our portfoliocontinue to deliver growth.

Although the rate of investment has been low for the period underreview compared to some previous periods, the Investment Manager is currentlyconsidering a number of potentially good opportunities. The Board and theInvestment Manager continue to adopt a patient and cautious approach ofwaiting to identify the right opportunities in this challenging market.

The quoted UK equity market as represented by the FTSE All-ShareIndex was volatile but ended the 11 months` period up 9.34% on a total returnbasis. Many of the portfolio companies are primarily valued by reference tothe valuations of companies trading in similar sectors within the relevantFTSE All-Share Index. The Company's Net Asset Value per share ("NAV") totalreturn rose by 4.78% for the period. This is encouraging, given the Company'sstrong liquidity position which should be of benefit in the medium term, ascurrent returns on liquid assets are low.

Performance

As at 31 December 2012 the Company's NAV per share was 117.31 pence(31 January 2012: 116.73 pence). To measure the NAV per share total returnover the period on a like for like basis, the interim dividend of 5 pence pershare paid to Shareholders on 6 June 2012, in respect of the year ended 31January 2012, should be added to the closing NAV per share, producing aclosing return of 122.31 pence. Comparing this to an opening NAV of 116.73pence, the Company's underlying NAV per share rose by 5.58 pence or 4.78%.

This compares with an increase of 20.1% in the FTSE SmallCap TotalReturn Index and a decrease of 6.3% in the FTSE AIM Total Return Index.

The share price total return for the period, being the share priceat 31 December 2012 after adding the dividend of 5 pence paid in the period,rose by 7.5% during the eleven month period from 100 pence to 107.5 pence pershare.

The increase in returns reflects principally an encouraging upliftin the value of the portfolio companies.

Please note that we have added performance data for each allotmentin each fundraising since the inception of the Company, in the PerformanceData Appendix on pages 56 - 57 of the Annual Report.

Portfolio review and new investment

The portfolio continues to be dominated by investments inmanagement buy-outs ("MBOs"), which stand at 64.9% of the portfolio, followedby 27.5% in acquisition companies, 5.3% in development capital, 1.2% investedin one AIM investment and the remaining 1.1% of the portfolio being investedin what were originally development capital and early stage investments ofprevious managers. The portfolio is now invested in a range of market sectorswith the largest of those being Support Services at 57.4%.

The Company made one new investment totalling £1,268,647 during theperiod to support the MBO of Tessella, an international provider ofscience-powered technology and consulting services. The Company used itsexisting investment of £1 million in the acquisition vehicle Sawrey to financethe transaction, along with a further £268,647 from the Company's cashreserves. This investment has made a promising start.

After the period end, in February 2013, the Company made a furtherinvestment into Fullfield (trading as Motorclean) totalling £683,135(utilising the acquisition vehicle, Almsworthy) to support Motorclean'sacquisition of Forward Valeting Services Limited, a company with a similarbusiness model in the UK car valeting market. This resulted in a repayment offunds to the Company from Almsworthy of £316,865.

On 14 March 2013, the Company invested £1,484,302 (including£1,000,000 from Fosse Management Limited, one of the Company's acquisitioncompanies) to support the MBO of Gro-group, a market leader for baby sleeptime products in the UK and Australia.

There have been seven realisations during the period under review,totalling £2.05 million, being both outright disposals and loan repaymentsfrom continuing investments. The VCT sold its investment in Iglu.com Holidaysin May 2012 for an overall return of 2.53 times the original investment cost.This was a pleasing result in just two and half years since the MBO inDecember 2009. During the period of our investment, Iglu grew its cruiseholiday business to become one of the leading distributors of these holidaysin the UK in addition to being the largest independent retailer of skiholidays.

The Letraset stake was also sold, returning a modest 1.51 times thecost of our original investment.

Five loan stocks held by the Company totalling £0.573 million invalue were fully or partly repaid (including any premiums due) during theperiod. Blaze Signs, in particular, repaid a total of £424,794 in threeseparate payments in the period.

Several investee companies continued to trade well, notably ATGMedia, Blaze Signs, DiGiCo and Motorclean. The two investments which completedtowards the end of 2011 in EOTH (Equip) and EMaC, have both made good startsand have moved above cost for the first time.

EMaC in particular has recorded a significant uplift.

Further falls in demand led British International to close itsscheduled passenger service from Penzance to the Isles of Scilly at the end ofOctober, and performance also suffered from a lack of short-term contractwork. In October the company completed the sale of the Penzance heliport toSainsbury's for redevelopment.

Having added a net £3 million in the period, the portfolio includedsix acquisition companies actively searching for further investments under theOperating Partner Programme. Two of the acquisition companies were used afterthe period end as explained above. A number of opportunities are under activeconsideration.

Further details of transactions in the period and the performanceof investee companies are contained in the Investment Manager's Review onpages 8 - 13 of the Annual Report.

Review of results

The Company returned a profit for the period of £1,487,093 (yearended 31January 2012: £1,643,274), comprising a capital return of £1,127,353(year ended 31 January 2012: £1,212,967) and a revenue return of £359,740(year ended 31 January 2012: £430,307).

The Company's earnings per Ordinary Share were 5.26 pence per share(year ended 31 January 2012: 6.62 pence per share) comprising 1.27 pence ofIncome and 3.99 pence of Capital.

The positive capital return is due to the uplift in portfoliovaluations. The revenue return for the Company has fallen during the period,from £430,307 to £359,740. This is due principally to only 11 months of incomebeing included, higher expenses and a higher tax charge. Although only 11months of income is reflected, there has still been an overall increase inincome to £973,259, compared to £955,864 for the year to 31 January 2012, forthree reasons. Firstly, loan interest from investee companies has increased by£105,456 (15.56%) to £783,053. The rise in loan stock interest reflects thenew loan stock investments made over the last year, namely EMaC Limited,DiGiCo Global Limited and most recently Tessella Holdings Limited.

Secondly, in contrast, the Company's dividend income fell by£113,692, principally because the prior year included a dividend from DiGiCoof £135,283, although maiden dividends from Focus and MachineWorks and anincreased dividend from ATG Media mitigated this reduction.

Thirdly, interest on bank deposits and money-market funds continuedto be modest, rising slightly to £89,667 (year ended 31 January 2012: £71,301)due to higher liquidity following monies raised from the joint offer forsubscription and amounts placed on longer-term deposit at a higher rate ofinterest.

Fund management fees charged to the Income Statement in total haveincreased by 5.40% to £703,300, in line with the higher net assets than theequivalent period last year. Other expenses have also risen by £60,194 in theperiod to £362,512 (year ended 31 January 2012: £302,318). This increase wasdue to higher registrars' fees, printing costs and trail commission costs.

Thirdly, the tax charged against the revenue return rose by£18,752, reflecting higher taxable loan interest, and lower non-taxabledividend income.

Cash available for investment

Cash and liquidity fund balances as at 31 December 2012 amounted to£11.67 million which is advantageous to have at a time of increasinginvestment opportunities. In the meantime these funds continue to be investedin a number of leading liquidity funds, although two deposits of £1.25 millioneach have been made in two UK banks, being the Co-operative Bank and CloseBrothers. These are fixed for one year at a higher interest rate. A larger sumis also being retained at NatWest to earn a better rate. Despite thefrustration of low returns on cash, your Board has taken the view that itwould not be prudent to increase counter party or timing exposures unduly fora relatively small overall increase in the return rates. However, the Boardcontinues to keep this policy under active review.

Dividends

Your Board declared an interim dividend of 5 pence per share, madeup of a capital dividend of 3.5 pence and an income dividend of 1.5 pence forthe year ended 31 January 2012. The dividend was paid on 6 June 2012 toShareholders on the register on 11 May 2012, bringing cumulative dividendspaid per share to 26.70 pence.

The Board is pleased to declare a dividend of 5.5 pence per sharewhich will be paid as an interim dividend, comprising 1 penny from income and4.5 pence from capital in respect of the period under review. This dividendwill be paid on 10 May 2013 to Shareholders on the Register on 12 April 2013.

This payment will bring total cumulative dividends paid anddeclared since launch to 32.20 pence (31 January 2012: 26.70 pence) per share.

Dividend Investment Scheme

The Scheme is a convenient, easy and cost effective way to build upyour shareholding in the Company. Instead of receiving cash dividends, you canelect to receive new shares in the Company. By opting to receive your dividendin this manner, there are three benefits to Shareholders:

- The dividend remains tax free to you;

- Shareholders are allotted new ordinary shares which will, subjectto your particular circumstances, attract VCT tax reliefs applicable for thetax year in which the shares are allotted. The tax relief currently availableto investors in new VCT shares is 30% for the 2012/13 tax year for investmentsup to £200,000 in any one tax year; and

- The Scheme also has one other, particular advantage. Under itsterms, a member is able to re-invest at an advantageous price, being theaverage market price of the shares for the five business days prior to thedividend being paid. This price is likely to be at a discount of 10% to theunderlying net asset value (provided that this is greater than 70% of thelatest published net asset value per share).

Shareholders who wish to participate in the Scheme should contactCapita Registrars, whose contact details can be found on page 61 of the AnnualReport. Please note that Shareholders must be registered no later than 15 daysprior to the dividend payment date to be eligible for the Scheme.

Change of year-end

As stated above, to facilitate the process of allotting sharesarising from any future fund-raisings, the Board decided to amend theCompany's accounting reference date to 31 December. Thus these accounts arefor the 11 months ended 31 December 2012, but future reports will be for yearsending on 31 December.

Investment in qualifying holdings

In order to comply with VCT tax legislation, the Company isrequired to meet the target set by HM Revenue & Customs ("HMRC") of investing70% of the funds raised in qualifying unquoted and AIM quoted companies.Throughout the period, the Company exceeded this target (based on VCT cost asdefined in tax legislation, which differs from the actual cost given in theInvestment Portfolio Summary on pages 14 - 17 of the Annual Report).

Changes to VCT legislation

The enactment of the Finance Act 2012 has ended a period ofuncertainty in finalising the changes to the tax legislation that will applyto VCTs in the future. The principal change that affects the Company is thatfunds raised after 6 April 2012 can no longer be used by the InvestmentManager to carry out certain types of management buy-out transactions("MBOs"). However, the Company has a significant amount of cash raised priorto this date that it will continue to use to pursue its successful strategy ofinvesting in MBOs of profitable and cash generative companies.

A number of the tests for VCT investment have also been revised bythe Finance Act, enabling VCTs to invest in larger companies with up to 250staff and gross assets of up to £15 million immediately before investment and£16 million immediately after investment. Also, investee companies can nowreceive up to £5 million in any rolling 12 month period from state-aidedsources, which include VCTs.

Share buy-backs

During the period ended 31 December 2012 the Company continued toimplement its buy-back policy and bought back 1,095,385 (year ended 31 January2012: 275,403) Ordinary Shares, representing 4.35% (31 January 2012: 1.23%) ofthe shares in issue at 1 February 2012 at a total cost of £1,117,828 (yearended 31 January 2012: £280,089). These shares were subsequently cancelled bythe Company. The shares above were bought back for an average price of 102.05pence per share. The share price discount to NAV has narrowed from 11.8% atthe start of the period to around 9.9% at the period end, in line with theBoard's current policy which is to seek to maintain the discount at which theCompany's shares trade at around 10% to the latest announced NAV per share.Remaining Shareholders, of course, will continue to benefit from thedifference between the Net Asset Value and the price at which the Shares arebought back and cancelled. Fundraising/Linked offer

The Company raised £5.322 million gross of issue costs in theMobeus (formerly Matrix) Linked VCT Offer launched on 20 January 2012, whichclosed on 30 June 2012.

The Company launched a linked fundraising with The Income & GrowthVCT plc and Mobeus Income & Growth VCT plc on 29 November 2012 to raise up to£21 million across the three VCTs. The funds raised for the Company of up to£7 million will further improve the Company's liquidity, and spread its fixedrunning costs over a larger asset base. Further, they will provide a fund ofnew money which may be used to finance ongoing expenses, dividends and sharebuy-backs, thus preserving money raised prior to 6 April 2012 to support theCompany's successful investment strategy of investing in new MBO deals.Details of the Offer have been posted to Shareholders in December. This Offerhas seen a good response and a total of £4.9 million of applications have beenreceived to date for the Company, of which £1.9 million has been allotted.

The Offer will remain open until 30 April 2013 (5 April 2013 inrespect of the current tax year) although the Directors of the three VCTsreserve the right to extend the closing date at their discretion.

Selling your shares

The Company's shares are listed on the London Stock Exchange andthey can be sold in the same way as any other quoted company through astockbroker. Shareholders wishing to sell their shares are advised to contactthe Company's stockbroker, Panmure Gordon (UK) Limited, by telephoning 0207886 2716 or 2717 before agreeing a price with your stockbroker. Shareholdersare also advised to discuss their individual tax position with their financialadvisor before deciding to sell their shares.

Enhanced share buyback facility (EBF)

The Company offered an Enhanced Buyback Facility (EBF) toshareholders in January 2013 by way of a tender offer to purchase fromshareholders up to 50% of the issued capital of their VCT. An EBF is a loyaltyscheme, whereby the Company buys back some or all of a shareholder's existingshares at the prevailing NAV per share. The resultant proceeds are applied toinvest in new shares in the same VCT, at a slightly higher price to cover thecosts of the Scheme. Shareholders receive new VCT shares which qualify forupfront income tax reliefs of up to 30% on the amount reinvested. The EBF maynot be appropriate for all shareholders particularly if they have not heldtheir shares for a sufficient period to qualify for the upfront tax reliefs.

Shareholders approved this scheme and the associated cancellationof the share premium account at a General Meeting on 22 February 2013. TheCourt approved the cancellation of the share premium account on 13 March 2013.

Shareholder communication

The Company maintains a programme of regular communication withShareholders through newsletters and a dedicated website in addition to theCompany's Half-Yearly and Annual Reports.

The Board also welcomes the opportunity to meet Shareholders at theCompany's General Meetings during which representatives of the InvestmentManager are present to discuss the progress of the portfolio. The next AGM ofthe Company will be held on 10 May 2013.

Shareholder workshop

We received positive feedback from the third shareholder workshop,held on 29 January 2013, which was attended by nearly 140 Mobeus VCTshareholders. The workshops included presentations from the Manager on theportfolio as a whole and from a successful entrepreneur from one of the VCT'sinvestee companies. It is intended that this will be an annual event, to whichall shareholders will be invited.

Electronic communication

As we informed Shareholders in the Half-Yearly Report, the Companyhas adopted electronic communications which enables Shareholders to choosebetween electing to receive communications by email or as hard copies throughthe post. This is because we believe that this is the most efficient way ofcommunicating with Shareholders as well as enabling the Company to makesavings on postage and printing costs. Accordingly, we have previouslyinformed Shareholders that the principal method of communicating with themwould be by email, but offered them the opportunity to elect to continue toreceive printed copies of communications through the post. Shareholders whohave replied will, depending on the option chosen, receive either an emailnotifying them that documents have been placed on the Company's website orprinted copies of these documents through the post. If they have not replied,they will receive a letter notifying them that documents have been placed onthe Company's website but will be given another opportunity to select one ofthese two communication options in October 2013.

Mobeus website

The Investment Manager has established a new Mobeus website, whichcan be accessed by going to www.mobeusequity.co.uk. This is regularly updatedwith information on your investments including case studies of portfoliocompanies. The Company continues to have its own dedicated section of thewebsite which Shareholders may prefer to access directly by going towww.mig4vct.co.uk. This includes performance tables and details of dividendspaid as well as copies of past reports to Shareholders. Presentations and Q &As from the recent investor workshop can also be viewed here.

Industry awards for the Investment Manager

It is pleasing to report that Mobeus won the award for VCT of theYear 2012 at the Investor AllStars Award 2012. It was also named VCT House ofthe Year 2012 at the Unquote" British Private Equity Awards2012. The citationsfor these awards recognised Mobeus' outstanding performance in achievingrecord realisations during the year. The Board is delighted that the work ofthe Investment Manager has been acknowledged in this way.

Outlook

World stock markets have started the year on the assumption thatthe global economy is recovering, although key issues such as how the USgovernment resolves its deficit and how Europe moves forward, have yet to beresolved.

The outlook for the UK economy continues to remain uncertain, withthe Coalition Government still finding it difficult to formulate a cohesiveeconomic plan for recovery and debt reduction. Minimal economic growth isforecast. Only well-managed and soundly financed companies with robustbusiness models will succeed. The Company has a strong cash position withwhich to support portfolio companies through a testing period where merited.This is particularly important at a time when UK banks, despite governmentexhortations, continue to limit, or even withdraw, funds from the smallercompany sector.

The Investment Manager continues to investigate a number ofinvestment opportunities at realistic price levels. The Board believes thatthe VCT's strategy of investing primarily in MBOs and structuring investmentsto include loan stock will continue to mitigate downside risk. The strategyshould contribute to enhancing the Company's performance and help to achievethe objective of attractive dividend payout levels.

Finally, I would like to thank all of our Shareholders for theircontinuing support.

Christopher Moore Chairman 21 March 2013 INVESTMENT POLICY

The Company's policy is to invest primarily in a diverse portfolioof UK unquoted companies. Investments are structured as part loan and partequity in order to receive regular income and to generate capital gains fromtrade sales and flotations of investee companies.

Investments are made selectively across a number of sectors,primarily in management buyout transactions (MBOs) i.e. to support incumbentmanagement teams in acquiring the business they manage but do not yet own.Investments are primarily made in companies that are established andprofitable.

The Company has a small legacy portfolio of investments incompanies from its period prior to 1 August 2006, when it was a multi-managerVCT. This includes investments in early stage and technology companies.

Uninvested funds are held in cash and lower risk money marketfunds.

VCT regulation

The investment policy is designed to ensure that the Companycontinues to qualify and is approved as a VCT by HM Revenue & Customs("HMRC").

Amongst other conditions, the Company may not invest more than 15%of its investments in a single company or group of companies and must have atleast 70% by value of its investments throughout the year in shares orsecurities comprised in VCT qualifying holdings, of which a minimum overall of30% by value (70% for funds raised from 6 April 2011) must be in ordinaryshares which carry no preferential rights. In addition, although the Companycan invest less than 30% (70% for funds raised from 6 April 2011) of aninvestment in a specific company in ordinary shares it must have at least 10%by value of its total investments in each VCT qualifying company in ordinaryshares which carry no preferential rights (save as may be permitted under VCTrules). UK companies

The companies in which investments are made must have no more than£15 million of gross assets at the time of investment and £16 millionimmediately following the investment to be classed as a VCT qualifyingholding.

Asset mix

The Company initially holds its funds in a portfolio of readilyrealisable interest bearing investments and deposits. The investment portfolioof qualifying investments is built up over a three year period with the aim ofinvesting and maintaining at least 80% of net funds raised in qualifyinginvestments.

Risk diversification and maximum exposures

Risk is spread by investing in a number of different businessesacross different industry sectors. To reduce the risk of high exposure toequities, each qualifying investment is structured to maximise the amountwhich may be investing in loan stock.

Co-investment

The Company aims to invest in larger, more mature unquotedcompanies through investing alongside three other VCTs advised by Mobeus witha similar investment policy. This enables the Company to participate incombined investments advised on by Mobeus of up to £5 million.

Borrowing

The Company's articles permit borrowings of amounts of up to 10% ofthe adjusted capital and reserves (as defined herein), however, the Companyhas never borrowed and the Board has no current plans to undertake anyborrowing.

Management

The Board has overall responsibility for the Company's affairsincluding the determination of its investment policy. Investment anddivestment proposals are originated, negotiated and recommended by theInvestment Manager and are then subject to formal approval by the Board ofDirectors. Mobeus Equity Partners LLP also provides Company Secretarial andAccountancy services to the VCT.

INVESTMENT MANAGER'S REVIEW

Overview

During the period under review the Company made one new majorinvestment and one major disposal. The environment for new investment has madeit harder to complete new deals, for two principal reasons. Firstly, 2012 sawa second dip into recession which revived uncertainty surrounding the extentand depth of the economic recovery. Secondly, a lack of clarity regardingchanges to VCT regulations further depressed a weak corporate finance market.Nonetheless, dealflow has improved in recent months, particularly in terms ofthe number of deals coming forward, although concluding transactions hascontinued to be difficult. We are working on a number of promising newinvestments and are therefore hopeful that the pace of new investment willpick up in 2013 from the earlier quieter period for acquisitions in 2012.Indeed, two deals have completed recently. Uncertainty over the futurepersists nevertheless, particularly amongst potential sellers of businesses,but our investment approach, combining debt and equity, continues to becompelling to companies seeking investment in a market where availability ofbank finance remains patchy at best. This means that management buy out teamsare increasingly turning to us as a reliable source of funding for theirplans.

The Company's liquidity position at present has strengthenedfurther, so it is well placed to invest. In response, we are broadening thescope of the deals which we target by identifying opportunities to invest morecapital to support the expansion of successful businesses in the existingportfolio, including, where appropriate, the deployment of loan funding tosupport portfolio companies' growth plans.

We continue to believe that the Company's strategy of investing inwell-structured MBO deals; supporting highly motivated management teams;focusing on acquiring established, profitable, positive cashflow businesses;and investing partly in income yielding loan stocks substantially increasesthe degree of downside protection to Shareholders' capital. We have noted therecent change in VCT legislation preventing certain types of MBOs, but alsonote that this restriction does not apply to the substantial level of fundsheld by the Company from earlier fundraisings. We have continued to work actively with the management teams ofinvestee companies, encouraging them to take cost cutting measures anddiscussing their budgets, forecasts and cost structure with them to ensurethat their businesses remain as resilient as possible. A number of portfoliocompanies have made good progress and this is reflected in the valuations ofthese companies, helping to raise the VCT's NAV per share. The strategy above is executed by retaining and developing aportfolio of successful companies until each has reached the optimal point fora profitable realisation. In the meantime, the portfolio routinely benefitsfrom returns of loan stock interest, dividends and loan repayments, during thelife of an investment. New investment One new investment was completed during the period under reviewtotalling £1,268,647. In July 2012, the Company made the investment to supportthe MBO of Tessella, an international provider of science-powered technologyand consulting services. The Company used its existing investment of £1million in the acquisition vehicle Sawrey to finance the transaction, alongwith a further £268,647 from the Company's cash reserves. Founded in 1980, thecompany delivers innovative and cost-effective solutions to complex real-worldcommercial and technical challenges such as developing smarter drug trials,and minimising risk in oil and gas exploration. This company has made anencouraging start since investment. We are confident that our Operating Partner programme will continueto generate successful investments for the Company and accordingly £6 millionwas held in six acquisition vehicles. These companies continue to pursue anactive search for investment opportunities. Each of the acquisition vehiclesis headed by an experienced Chairman, well known to us, who is working closelywith us in seeking to identify and complete investments in specific sectorsrelevant to their industry knowledge and experience. We have established thesecompanies to provide time for us to identify and invest in suitable targetcompanies at sufficiently attractive valuations.

On 14 March 2013, the Company invested £1,484,302 (including£1,000,000 from Fosse Management Limited, one of the Company's acquisitioncompanies) to support the MBO of Gro-group Limited, a market leader for babysleep time products in the UK and Australia.

Follow-on investment

Two investee companies received further funds in the 11 monthsunder review. In February 2012, the Company made a follow on investment of£5,275 in Sift. PXP also required a small follow-on investment, of £33,376,which was completed in June 2012 as part of a major re structuring of thiscompany to enable PXP to continue to trade following a period of poor tradingin a challenging market. Trading in recent months has started to showimprovement. On 18 February 2013, £683,135 held by Almsworthy Trading Limited,one of the Company's acquisition companies, was used to invest further fundsinto Fullfield Limited (trading as Motorclean) to enable it to acquire rivalCompany, Forward Valeting Services Limited. This resulted in a repayment offunds to the Company from Almsworthy of £316,865.

Realisations

Against an uncertain economic background, we are pleased to reportrealisations during the period under review. During the period these havegenerated net cash of £2.02 million.

In May 2012, the Company realised its entire investment in Iglu.comHolidays, the specialist online ski and cruise holiday travel agent, for netcash proceeds of £1,278,073 through a sale to Growth Capital Partners. Thisrealisation contributed to total cash proceeds of £2,222,323 to the Companyover the two and a half year life of the investment, representing a 2.53 timesreturn on the Company's original investment of £878k. We have supported thisestablished online ski agent through a period of rapid growth in its cruiseholiday business since the MBO in December 2009. Iglu is now one of theleading distributors of cruise holidays, in the UK, and the largestindependent retailer of ski holidays. This company's annual revenues nowexceed £90 million. In June 2012, the Company sold its entire investment in Letrasetfor a cash consideration of £169,343 compared to a valuation of £80,070 at 31January 2012. Total proceeds to MIG4 VCT over the life of the investmentamounted to £0.76 million representing a 1.51 times return on the Company'soriginal investment cost of £0.5 million. The sale of Letraset represented anuplift in the period of 111% over the opening value.

A total of £572,719 (including any premiums paid) has also beenreceived in loan stock repayments from portfolio companies during the 11months' period to 31 December 2012.

Blaze Signs repaid a total of £424,794 in four separate paymentsreceived between May and November 2012, plus interest arrears of £46,741.Fullfield Limited (£85,392) and Tessella Holdings Limited (£18,214) madescheduled payments totalling £103,606 and Duncary 8 Limited repaid a total of£25,000. Finally, Box-it repaid a total of £19,319.

Portfolio review

The Mobeus-invested portfolio at 31 December 2012 comprised 33investments (31 January 2012: 32) with a cost of £21.6 million (31 January2012: £18.1 million) and valued at £21.6 million (31 January 2012: £17.8million), representing 100% of cost (31 January 2012: 98.3%).

The portfolio's performance as a whole has continued to be strongand we are pleased to report that valuations have increased over the year. ATGMedia and DiGiCo have again traded well despite the challenges of the economicenvironment. Blaze has made a steady recovery from the difficulties itexperienced during the economic downturn and has benefitted this year fromwork for the Olympics, enabling it to repay a large part of its loans as notedabove. CB Imports continues to trade well despite the general weakness ofretail and has grown profitability compared to last year. Focus achievedrecord results and is performing well on product development and has a healthypipeline of new products. Fullfield has maintained its solid start and cashgeneration at this company has been strong, as evidenced by its early partialrepayments of its loan stock during the period.

ASL's trading is improving, but the group's overall performance isbehind its investment plan. Of the newer investments, EMaC has performedstrongly since the MBO in November 2011, despite growing competition in itssector. This Company's valuation has recorded an uplift of 27%. EOTH iscontinuing to grow despite the difficult market conditions. The Lowe Alpinebrand is developing its new clothing range which is due to launch in late2013. Both companies have moved above cost for the first time due to theirpromising starts.

British International has had a difficult year. Further falls indemand led British International to close its scheduled passenger service fromPenzance to the Isles of Scilly at the end of October, and performance alsosuffered from a lack of short-term contract work. In October the companycompleted the sale of the Penzance heliport to Sainsbury for redevelopment.

The continuing downturn in the construction and house buildingsectors continues to affect the performance of PXP and Plastic Surgeon,although management has worked well to reposition both of these businesses andmake the necessary cuts in costs. The market environment for Youngman remainsuncertain, although it has traded profitably and is well positioned to benefitfrom any upturn in its markets. Westway suffered from lower revenues last yearbut is now growing profits again and has strong customer relationships. RDLhas continued to perform below expectations with activity in its ITrecruitment business in particular at lower than planned levels. It is howevertaking measures to improve performance. Faversham has been streamlining itsoperations although progress is slower than anticipated. Overall, we are encouraged by the strong and resilient performance by most ofour investee companies. Our strategy remains to retain investments until theyhave reached the optimum point for an exit in order to maximise value fromeach investment.

Outlook

The outlook for the UK economy remains uncertain, but the Company has ampleliquidity to pursue its MBO strategy and we are hopeful that we are entering ahealthy period of new investment over the coming year. As part of our plans toincrease the rate of investment, we are currently pursuing severalopportunities to provide further capital for expansion of successful existinginvestments. The uncertain outlook necessitates that we ensure investeecompanies take appropriate actions to respond to the challenging environmentahead. We are also maintaining a prudent approach to making new investmentsand ensuring that the portfolio remains well capitalised. We are confidentthat good returns can continue to be earned for investors over the medium tolong term, if such disciplines are observed. Details of the Company's ten largest investments by value at 31December 2012 (excluding the six acquisition vehicles in the portfolio (two ofwhich have been utilised since the period-end), which have yet to complete aninvestment and have a current cost and valuation of £1 million each) are setout below. These represent 43.34% by cost, and 57.25% by value of theportfolio.

TEN LARGEST INVESTMENTS IN THE PORTFOLIO *

ATG Media Holdings Limited DiGiCo Global Limited Ingleby (1879) Limited (non-qualifying)www.antiquestradegazette.com www.digico.org www.emac.co.uk Cost £888,993 Cost £1,334,293 Cost £1,263,817 Valuation £2,321,815 Valuation £1,698,883 Valuation £1,608,925 Basis of valuation Basis of valuation Basis of valuationEarnings multiple Earnings Earnings multiple multiple Equity % held Equity % held Equity % held8.5% 2.39% 6.32% (fully diluted) Income receivable in year Income receivable in year Income receivable in year£95,382 £48,897 £97,142 Business Business BusinessPublisher and on-line auction Designer and manufacturer Provider of service plans for theplatform operator of digital audio mixing motor trade desks Location Location LocationLondon Chessington, Crewe Surrey History History HistoryManagement buyout Secondary buyout Management buyout Audited financial information Audited financial

Audited financial information

information Year ended 30 September Year ended 31 December 2011 Year ended 31 December 2011 2012 1Turnover £10,990,000 Turnover £21,314,000 Turnover £4,990,000Operating profit £2,704,000 Operating £6,466,000

Operating profit £867,000

profitNet assets £4,612,000 Net assets £7,932,000 Net assets £1,535,000 Year ended 30 September Year ended 31 December 2010 Year ended 31 December 2010 2011 1Turnover £8,927,000 Turnover £18,757,000 Turnover £4,042,000Operating profit £1,831,000 Operating £5,501,000

Operating profit £1,596,000

profitNet assets £3,179,000 Net assets £8,909,000 Net assets £2,712,000 1 The financial information quoted above relates to the operating subsidiary, EMaC Limited Tessella Holdings Limited Fullfield Limited CB Imports Group

Limited

www.tessella.com www.motorclean.net

www.countrybaskets.co.uk

Cost £1,250,433 Cost £1,110,096 Cost £1,000,000 Valuation £1,250,433 Valuation £1,246,959 Valuation £1,215,002 Basis of valuation Basis of valuation Basis of valuationCost Earnings multiple Earnings multiple Equity % held Equity % held Equity % held5.44% 8.75% 5.79%

Income receivable in year Income receivable in year Income receivable in year£41,746

£93,900 £70,237 Business Business BusinessProvider of science powered Provider of vehicle Importer and distributor oftechnology and consulting cleaning and valet artificial flowers, floralservices services sundries and home décor products. Location Location LocationAbingdon, Oxfordshire Laindon, East Ardsley, West Essex Yorkshire History History HistoryManagement buyout Management buyout Management buyout Audited financial Audited financial Audited financial informationinformation information Year ended 31 March Year ended 31 March Year ended 31 December 2011 20121 20121Turnover £18,533,000 Turnover £23,818,000 Turnover £23,130,000Operating £278,000 Operating £1,752,000 Operating £969,000profit profit profitNet assets £2,404 ,000 Net assets £9,044 ,000 Net assets £4,421,000 Year ended 31 March Year ended 31 March Year ended 31 December 2010 20111 20111Turnover £16,941,000 Turnover £22,400,000 Turnover £21,197,000Operating £346,000 Operating £1,631,000 Operating £2,139,000profit profit profitNet assets £2,403,000 Net assets £2,344,000 Net assets £4,259,000 1 The financial information 1 The financialquoted above relates to the information quoted aboveoperating subsidiary, relates to the operatingTessella Limited subsidiary, Motorclean(previously Tessella plc) Limited EOTH Limited Focus Pharma Holdings Limited

RDL Corporation Limited

www.equipuk.com www.focuspharmaceuticals.co.uk www.rdlcorp.com Cost £951,471 Cost £605,837 Cost £1,000,000 Valuation £974,934 Valuation £942,787 Valuation £723,122 Basis of valuation Basis of valuation Basis of valuationEarnings multiple Earnings multiple Earnings multiple Equity % held Equity % held Equity % held1.71% (fully diluted) 3.10% 9.05% Income receivable in year Income receivable in year Income receivable in year£83,598 £39,210 £85,252 Business Business BusinessSupplier of branded outdoor Licensor and distributor of generic Recruitment consultants forequipment and clothing including pharmaceuticals the pharmaceutical,the Rab and Lowe Alpine brands

business intelligence and

IT industries Location Location LocationAlfreton, Derbyshire Burton-upon-Trent Woking, Surrey Stafforrdshire History History HistoryManagement buyout Management buyout Management buyout Audited financial information Audited financial information

Audited financial

information

Year ended 31 January 2012 Year ended 31 December 2011

Year ended 31 December

2011Turnover £15,504,000 Turnover £22,375,000 Turnover £18,266,000Operating £1,830,000 Operating profit £1,075,000 Operating £1,214,000profit

profit

Net assets £6,173,000 Net assets £3,485,000

Net assets £1,501,000

Year ended 28 February 2011 1 Year ended 31 December 2010

Year ended 31 December

2010Turnover £13,457,000 Turnover £24,429,000 Turnover £3,700,000Operating £2,354,000 Operating profit £1,507,000 Operating £279,000profit

profit

Net assets £4,706,000 Net assets £3,342,000

Net assets £1,846,0001 The financial informationquoted above relates to theoperating subsidiary, EquipOutdoor Technologies Limited Westway Services Holdings(2010) Limitedwww.westwayservices.comCost £236,096 Valuation £519,434 Basis of valuationEarnings multiple Equity % held3.15% Income receivable in year£19,378 BusinessInstallation, service andmaintenance of airconditioning systems LocationGreenford, Middlesex HistoryManagement buyout Audited financialinformation Year ended 28 February 2012Turnover £23,114,000Operating £775,000profitNet assets £3,444,000 Year ended 28 February 2011Turnover £27,521,000Operating £3,942,000profitNet assets £3,769,000

The remaining 26 investments in the portfolio (including the sixacquisition vehicles in the portfolio at 31 December 2012) had a current costof £12.603 million and were valued at 31 December 2012 at £9.336 million.

Note: The percentage of equity held disclosed in the ten largest investmentsabove equals the percentage of voting rights held in each of the investeecompanies.

Further details of the investments in the portfolio may be found on the Mobeuswebsite: www.mobeusequity.co.uk.

----------------

* Excluding the six acquisition vehicles in the portfolio at 31December 2012

Operating profit is stated before charging amortisation of goodwillwhere appropriate for all investee companies.

----------------

INVESTMENT PORTFOLIO SUMMARY

as at 31 December 2012 Market sector Date of Total Book Valuation % of % of investment cost at

31 at 30 equity portfolio

December December held by value 2012 2012 £ £ £Mobeus Equity PartnersPortfolioATG Media HoldingsLimited Media Oct-08 888,993 2,321,815 8.50% 10.64%Publisher and onlineauction platformoperatorDiGiCo Global Limited(formerly Newincco 1124 Technology hardware &Limited) equipment Dec-11 1,334,293 1,698,883 2.39% 7.78%Manufacturer of audiomixing desksIngleby (1879) Limited Support services(trading as EMaCLimited) Nov-11 1,263,817 1,608,925 6.32% 7.37%Provider of serviceplans for the motortradeTessella HoldingsLimited Support services Jul-12 1,250,433 1,250,433 5.44% 5.73%ConsultancyFullfield Limited Support services(Motorclean Limited) Jul-11 1,110,096 1,246,959 8.75% 5.71%Vehicle cleaning andvalet servicesCB Imports GroupLimited General retailers Dec-09 1,000,000 1,215,002 5.79% 5.56%Importer anddistributor ofartificial flowers,floral sundries andhome décor productsAckling Management Food production andLimited distribution Jan-12 1,000,000 1,000,000 12.50% 4.58%Food manufacturing,distribution and brandmanagementFosse ManagementLimited Support services Jan-12 1,000,000 1,000,000 12.50% 4.58%Brand management,consumer products andretailPeddars ManagementLimited Support services Jan-12 1,000,000 1,000,000 12.50% 4.58%Database management,mapping, data mappingand management servicesto legal and buildingindustriesAlmsworthy TradingLimited Support services Mar-12 1,000,000 1,000,000 12.50% 4.58%Specialistconstruction, buildingsupport services,building products andrelated servicesCulbone Trading Limited Support services Mar-12 1,000,000 1,000,000 12.50% 4.58%Outsourced servicesMadacombe TradingLimited Support services Mar-12 1,000,000 1,000,000 12.50% 4.58%Engineering servicesEOTH Limited (tradingas Equip OutdoorTechnologies) General retailers Oct-11 951,471 974,934 1.71% 4.46%Distributor of brandedoutdoor equipment andclothingFocus Pharma HoldingsLimited Pharmaceuticals Oct-07 605,837 942,787 3.10% 4.32%Licensor anddistributor of genericpharmaceuticalsRDL Corporation Limited Support services Jan-10 1,000,000 723,122 9.05% 3.31%Recruitment consultantsfor the pharmaceutical,business intelligenceand IT industriesWestway ServicesHoldings (2010) Limited Support services Jun-09 236,096 519,434 3.20% 2.38%Installation, serviceand maintenance of airconditioning systemsASL Technology Holdings Support services Dec-10 1,257,133 495,469 6.78% 2.27%LimitedPrinter and photocopierservicesBlaze Signs HoldingsLimited Support services Apr-06 283,252 432,861 5.72% 1.98%Manufacturer andinstaller of signsYoungman Group Limited Support services Oct-05 500,026 349,983 4.24% 1.60%Manufacturer of laddersand access towersThe Plastic SurgeonHoldings Limited Support services Apr-08 458,837 331,325 6.88% 1.52%Snagging and finishingof domestic andcommercial propertiesBritish InternationalHoldings Limited Support services Jun-06 295,455 295,455 2.50% 1.35%Helicopter serviceoperatorOmega Diagnostics Groupplc 1 Pharmaceuticals Dec-10 199,998 266,664 1.96% 1.22%In-vitro diagnosticsfor food intolerance,autoimmune diseases andinfectious diseasesMachineworks SoftwareLimited Software and computer services Apr-06 9,329 239,052 4.20% 1.09%Provider of softwarefor CAD and CAM vendorsHigher Nature Limited Pharmaceuticals Nov-99 500,127 174,101 10.34% 0.80%Mail order distributorof vitamins and naturalmedicinesDuncary 8 Limited(trading as BGConsulting Limited) Support services Sep-02 101,995 130,307 5.10% 0.60%City-based provider ofspecialist technicaltrainingRacoon InternationalHoldings Limited Personal goods Dec-06 406,805 94,890 5.70% 0.43%Supplier of hairextensions, hair careproducts and trainingVectair HoldingsLimited Business services Jan-06 24,732 81,966 2.14% 0.38%Designer anddistributor of washroomproductsFaversham HouseHoldings Limited media Dec-10 346,488 79,560 6.26% 0.36%Publlisher, exhibitionorganiser and operatorof websites for theenvironmental, visualcommunications andbuilding servicessectorsMonsal Holdings Limited Support services Dec-07 699,444 63,431 6.14% 0.29%Supplier of engineeringservices to the waterand waste sectorsLightworks SoftwareLimited Software and computer services Apr-06 9,329 36,530 4.20% 0.17%Provider of softwarefor CAD and CAM vendorsPXP Holdings Limited Construction Dec-06 712,925 15,687 4.39% 0.07%Designer, manufacturerand supplier of timberframes for buildingsLegion Group plc (inadministration) Business services Aug-05 150,102 - N/A 0.00%Provider of mannedguarding, patrollingand alarm responseservicesWatchgate Limited Nov-11 1,000 - 33.33% 0.00%Holding companyIglu.com HolidaysLimited General retailers Dec-09 - - N/A 0.00%Online ski and cruisetravel agentLetraset Limited Support services Jun-01 - - N/A 0.00%Manufacturer anddistributor of graphicart productsBox-it Data Management Limited Support services Feb-10 - - N/A 0.00%Document management andstorage Total 21,598,013 21,589,575 98.87% Former ElderstreetPrivate EquityPortfolioCashfac Limited Software and computer services Jul-99 260,101 184,074 2.88% 0.84%Provider of virtualbanking applicationsoftware solutions tocorporate customersSparesfinder Limited Software and computer services Aug-99 250,854 60,054 1.70% 0.27%Supplier of industrialspare parts onlineSift Group Limited Media Oct-00 135,391 4,464 1.28% 0.02%Developer ofbusiness-to-businessinternet communitiesTotal 646,346 248,592 1.13% Investment Manager'sTotal 22,244,359 21,838,167 100.00% 1 Quoted on AiM

PRINCIPAL RISKS, MANAGEMENT AND REGULATORY ENVIRONMENT

The Board believes that the principal risks faced by the Companyare:

- Economic risk - events such as an economic recession and movementin interest rates could affect trading conditions for smaller companies andconsequently the value of the Company's qualifying investments.

- Loss of approval as a Venture Capital Trust - the Company mustcomply with section 274 of the Income Tax Act 2007 ("ITA") which allows it tobe exempted from capital gains tax on investment gains. Any breach of theserules may lead to the Company losing its approval as a Venture Capital Trust(VCT), qualifying shareholders who have not held their shares for thedesignated holding period having to repay the income tax relief they obtainedand future dividends paid by the Company becoming subject to tax. The Companywould also lose its exemption from corporation tax on capital gains. Fundsraised after 5 April 2012 and used by an investee company for the acquisitionof shares in another company are restricted from being qualifying for VCTpurposes. This may reduce the number of investment opportunities for suchfunds.

- Investment and strategic risk - inappropriate strategy orconsistently weak VCT qualifying investment recommendations might lead tounderperformance and poor returns to shareholders.

- Regulatory risk - the Company is required to comply with theCompanies Act, the listing rules of the UK Listing Authority and UnitedKingdom Accounting Standards. Breach of any of these might lead to suspensionof the Company's Stock Exchange listing, financial penalties or a qualifiedaudit report. In addition, rules and regulations, or their interpretation, maychange from time to time, which may limit the types of investments the Companycan make and/or reduce the level of returns which would otherwise beachievable.

- Financial and operating risk - inadequate controls might lead tomisappropriation of assets. Inappropriate accounting policies might lead tomisreporting or breaches of regulations. Failure of the Investment Manager'sand Administrator's accounting systems or disruption to its business mightlead to an inability to provide accurate reporting and monitoring.

- Market risk - Investment in unquoted companies, by its nature,involves a higher degree of risk than investment in companies traded on theLondon Stock Exchange main market. In particular, smaller companies often havelimited product lines, markets or financial resources and may be dependent fortheir management on a smaller number of key individuals. They may also be moresusceptible to changes to political, exchange rate, taxation, economic andother regulatory changes and conditions.

- Asset liquidity risk - The Company's investments may be difficultto realise, especially in the current economic climate.

- Market liquidity risk - Shareholders may find it difficult tosell their shares at a price which is close to the net asset value.

â- Counterparty risk - A counterparty may fail to discharge anobligation or commitment that it has entered into with the Company. This maylead to the loss of liquid funds.

â- Fraud and dishonesty risk - Fraud may occur involving companyassets perpetrated by a third party, the Investment Manager or other serviceprovider.

The Board seeks to mitigate the internal risks by setting policiesand by undertaking a key risk management review at each quarterly Boardmeeting. Performance is regularly reviewed and assurances in respect ofadequate internal controls and key risks are sought and received from theInvestment Manager on a six monthly basis. In mitigation and in management ofthese risks, the Board applies rigorously the principles detailed in the AICCode of Corporate Governance. The Board also has a Share Buy Back policy whichseeks to mitigate the Market Liquidity risk. This policy is reviewed at eachquarterly Board Meeting.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Directors' Report,the Directors' Remuneration Report and the financial statements in accordancewith applicable law and regulations. They are also responsible for ensuringthat the Annual Report includes information required by the Listing Rules ofthe Financial Services Authority. Company law requires the Directors to prepare financial statementsfor each financial year. Under that law the Directors have elected to preparethe financial statements in accordance with United Kingdom Generally AcceptedAccounting Practice (United Kingdom Accounting Standards and applicable law).Under company law the Directors must not approve the financial statementsunless they are satisfied that they give a true and fair view of the state ofaffairs of the Company and of the profit or loss of the Company for that year.In preparing these financial statements the Directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless

it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accountingrecords that are sufficient to show and explain the Company's transactions, todisclose with reasonable accuracy at any time the financial position of theCompany and to enable them to ensure that the financial statements comply withthe Companies Act 2006. They are also responsible for safeguarding the assetsof the Company and hence for taking reasonable steps for the prevention anddetection of fraud and other irregularities. The Directors are responsible for the maintenance and integrity ofthe corporate and financial information included on the Company's website.Legislation in the United Kingdom governing the preparation and disseminationof the financial statements and other information included in annual reportsmay differ from legislation in other jurisdictions.

The Directors confirm to the best of their knowledge that:

(a) the financial statements, which have been prepared in accordance with UKGenerally Accepted Accounting Practice and the 2009 Statement of RecommendedPractice, `Financial Statements of Investment Trust Companies and VentureCapital Trusts' (SORP), give a true and fair view of the assets, liabilities,financial position and the profit of the Company; and (b) the management report, comprising the Chairman's Statement, , InvestmentManager's Review, Investment Portfolio Summary and Directors' Report includesa fair review of the development and performance of the business and theposition of the Company, together with a description of the principal risksand uncertainties that it faces.

The names and functions of the Directors are stated on page 18 of the AnnualReport.

For and on behalf of the Board of Directors

Christopher Moore Chairman 21 March 2013 PRIMARY FINANCIAL STATEMENTS Income Statement

for the period ended 31 December 2012

Period ended Year ended 31 December 2012 31 January 2012 Notes Revenue Capital Total Revenue Capital Total £ £ £ £ £ £Unrealised gains on investments 7 - 1,300,844 1,300,844 - 1,409,405 1,409,405Gains on investments realised 7 - 278,802 278,802 - 247,559 247,559Income 2 973,259 - 973,259 955,864 - 955,864Investment management fees 3 (175,825) (527,475) (703,300) (166,809) (500,427) (667,236)Other expenses (362,512) - (362,512) (302,318) - (302,318)Profit on ordinary activities before taxation 434,922 1,052,171

1,487,093 486,737 1,156,537 1,643,274

Taxation on ordinary activities 4 (75,182) 75,182

- (56,430) 56,430 -

Profit for the period/year 359,740 1,127,353

1,487,093 430,307 1,212,967 1,643,274

Basic and diluted earnings per ordinary share 6 1.27p 3.99p

5.26p 1.73p 4.89p 6.62p

All the items in the above statement derive from continuingoperations of the Company. No operations were acquired or discontinued in theperiod/year. The total column is the Profit and Loss Account of the Company.There were no other recognised gains and losses in the period/year

Other than revaluation movements arising on investments held atfair value through the profit and loss account, there were no differencesbetween the return as stated above and at historical cost.

The notes below form part of these financial statements.

Balance Sheet

for the period ended 31 December 2012

As at 31 December 2012 As at 31 January 2012 Notes £ £ £ £Fixed assetsInvestments at fair value 7 21,838,167 17,971,357 Current assetsDebtors and prepayments 214,166 200,080Current investments 9,020,144 8,883,265Cash at bank 2,645,938 2,511,010 11,880,248 11,594,355 Creditors: amounts falling due within one year (181,144) (147,047)Net current assets 11,699,104 11,447,308 Net assets 33,537,271 29,418,665 Capital and reservesCalled up share capital 8 285,895 252,019Share premium account 8 12,004,600 6,847,570 Capital redemption reserve 8 905,059 894,105Revaluation reserve 8 1,529,402 1,204,972Special distributable reserve 8 12,501,764 14,078,325Profit and loss account 8 6,310,551 6,141,674Equity shareholders' funds 8 33,537,271 29,418,665 Basic and diluted net asset value per Ordinary Share 9 117.31p 116.73p

The notes below form part of these financial statements.

Reconciliation of Movements in Shareholders' Funds

for the period ended 31 December 2012

Period ended 31 December 2012 Year ended 31 January 2012 Notes £ £Opening shareholders' funds 29,418,665 25,345,179Share capital subscribed 8 5,201,860 3,464,121Purchase of own shares 8 (1,117,828) (280,089)Profit for the period/year 1,487,093 1,643,274 Dividends paid in period/year 5 (1,452,519)

(753,820)

Closing shareholders' funds 8 33,537,271

29,418,665

The notes below form part of these financial statements.

Cash Flow Statement

for the period ended 31 December 2012

Period ended Year ended 31 December 2012 31 January 2012 Notes £ £Interest income received 865,212 609,497Dividend income 136,504 264,438 VAT paid and interest thereon - (15,287)Other income 7,264 -Investment management fees paid (768,379) (667,235)Cash payments for other expenses (321,248) (299,720)Net cash outflow from operating activities (80,647) (108,307) Investing activitiesSale of investments 7 2,028,239 7,549,563Purchase of investments 7 (4,307,298) (4,971,171) Net cash (outflow)/inflow from investing activities (2,279,059) 2,578,392 Dividends 7Equity dividends paid (1,452,519) (753,820) Cash (outflow)/inflow before liquid resource management and financing (3,812,225) 1,716,265 Management of liquid resourcesIncrease in monies held in current investments (136,879) (5,238,524) FinancingIssue of own shares 5,201,860 5,297,186Purchase of own shares (1,117,828) (325,081) Increase in cash for the year 134,928 1,449,846

The notes below form part of these financial statements.

NOTES TO THE ACCOUNTS

1 Accounting policies

A summary of the principal accounting policies, all of which havebeen applied consistently throughout the period, is set out below.

a) Basis of accounting

The accounts have been prepared under UK Generally AcceptedAccounting Practice (UK GAAP) and the Statement of Recommended Practice,`Financial Statements of Investment Trust Companies and Venture CapitalTrusts' ("the SORP") issued by the Association of Investment Trust Companiesin January 2009. The financial statements are prepared under the historicalcost convention except for the measurement of certain financial instruments atfair value.

b) Presentation of the Income Statement

In order to better reflect the activities of a VCT and inaccordance with the SORP, supplementary information which analyses the IncomeStatement between items of a revenue and capital nature has been presentedalongside the Income Statement. The revenue column of profit attributable toequity shareholders is the measure the Directors believe appropriate inassessing the Company's compliance with certain requirements set out inSection 274 Income Tax Act 2007.

c) Change of financial year-end

The Company has changed its financial year end to 31 December and,therefore these financial statements and notes to the accounts relate to theeleven month period to 31 December 2012. The comparatives are for the year to31 January 2012, and have not been re-stated.

d) Investments

All investments held by the Company are classified as "fair valuethrough profit and loss", and measured in accordance with the InternationalPrivate Equity and Venture Capital Valuation ("IPEVCV") guidelines, as updatedin September 2009. This classification is followed as the Company's businessis to invest in financial assets with a view to profiting from their totalreturn in the form of capital growth and income.

For investments actively traded in organised financial markets,fair value is generally determined by reference to Stock Exchange marketquoted bid prices at the close of business on the balance sheet date.Purchases and sales of quoted investments are recognised on the trade datewhere a contract of sale exists whose terms require delivery within a timeframe determined by the relevant market. Purchases and sales of unlistedinvestments are recognised when the contract for acquisition or sale becomesunconditional.

Unquoted investments are stated at fair value by the Directors inaccordance with the following rules, which are consistent with the IPEVCVguidelines:

All investments are held at the price of a recent investment for anappropriate period where there is considered to have been no change in fairvalue. Where such a basis is no longer considered appropriate, the followingfactors will be considered:

(i) Where a value is indicated by a material arms-lengthtransaction by an independent third party in the shares of a company, thisvalue will be used.

(ii) In the absence of i), and depending upon both the subsequenttrading performance and investment structure of an investee company, thevaluation basis will usually move to either:-

a) an earnings multiple basis. The shares may be valued by applyinga suitable price-earnings ratio to that company's historic, current orforecast post-tax earnings before interest and amortisation (the ratio usedbeing based on a comparable sector but the resulting value being adjusted toreflect points of difference identified by the Investment Manager compared tothe sector including, 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 lossis treated as a permanent impairment and as a realised loss, even though theinvestment is still held. The Board assesses the portfolio for suchinvestments and, after agreement with the Investment Manager, will agree thevalues that represent the extent to which an investment loss has becomerealised. This is based upon an assessment of objective evidence of thatinvestment's future prospects, to determine whether there is potential for theinvestment to recover in value.

(iii) Premiums on loan stock investments are accrued at fair valuewhen the Company receives the right to the premium and when consideredrecoverable.

(iv) Where an earnings multiple or cost less impairment basis isnot appropriate and overriding factors apply, discounted cash flow or netasset valuation bases may be applied.

2 Income

Period ended

31 December 2012 Year ended 31 January 2012

£ £Income from bank deposits 52,568 25,664 Income from investments- from equities 93,274 206,966- from overseas based OEICs 37,099 45,637- from loan stock 783,053 677,597 913,426 930,200 Other income 7,265 - Total income 973,259 955,864 Total income comprisesDividends 130,373 252,603Interest 835,621 703,261Other income 7,265 - 973,259 955,864Income from investments comprisesListed overseas securities 37,099 45,637Unlisted UK securities 93,274 206,966Loan stock interest 783,053 677,597 913,426 930,200

Total loan stock interest due but not recognised in the year was £197,941 (31 January 2012: £155,190).

3 Investment Manager's fees

Period ended 31 December 2012

Year ended 31 January 2012

Revenue Capital Total Revenue Capital Total £ £ £ £ £ £Mobeus Equity Partners LLP 175,825 527,475 703,300

166,809 500,427 667,236

Under the terms of a revised investmentmanagement agreement dated 12 November 2010, Mobeus Equity Partners LLP("Mobeus LLP") (formerly Matrix Private Equity Partners LLP ("MPEP") providesinvestment advisory, administrative and company secretarial services to theCompany, for a fee of 2% per annum of closing net assets, calculated on aquarterly basis by reference to the net assets at the end of the precedingquarter, plus a fixed fee of £112,518 per annum, the latter being subject toindexation, if applicable.

The investment management fee includes provision for a cap onexpenses excluding irrecoverable VAT and exceptional items set at 3.4% ofclosing net assets at the year-end. In accordance with the investmentmanagement agreement, any excess expenses are borne by the Investment Manager.The excess expenses during the period amounted to £nil (year to 31 January2012: £nil).

Under the terms of a separate agreement dated 1November 2006, from the end of the accounting period ending on 31 January 2009and in each subsequent accounting period throughout the life of the company,the Investment Manager will be entitled to receive a performance relatedincentive fee of 20% of the excess above 6 per cent of the net asset value pershare of the annual dividends paid to Shareholders. The performance fee willbe payable annually, with any cumulative shortfalls below the 6 per centhurdle having to be made up in later years. The incentive payment will beshared between the Investment Manager 75% and the Promoter 25%. No incentivefee is payable to date.

The Company is responsible for external costssuch as legal and accounting fees, incurred on transactions that do notproceed to completion ("abort expenses") subject to the cap on total annualexpenses referred to above. In line with common practice, Mobeus LLP retainthe right to charge arrangement and syndication fees and Directors' ormonitoring fees ("deal fees") to companies in which the Company invests.

Under the terms of the Linked Offer forSubscription launched on 20 January 2012 jointly with Mobeus Income & GrowthVCT plc and The Income and Growth VCT plc, Mobeus LLP were entitled to 5.5% ofgross investment subscriptions, which amounted to £703,097 across all threeVCTs involved in the Offer. Under the terms of a similar Linked Offer forSubscription launched on 29 November 2012, Mobeus Equity Partners LLP areentitled to fees of 5.5% of gross investment subscriptions received up to 30December 2012 and 3.25% of gross investment subscriptions received after 30December 2012. As at the date of this document, these amounted to £587,752across all three VCTs involved in the Offer.

4 Taxation on profit on ordinary activities

Period ended 31 December 2012 Year ended 31 January 2012 Revenue Capital

Total Revenue Capital Total

£ £ £ £ £ £a) Analysis of tax charge:UK Corporation tax on profits for theperiod (75,182) 75,182 - (56,430) 56,430 -Total current tax charge (75,182) 75,182 - (56,430) 56,430 -Corporation tax is based on a rate of 20%(2012: 20.17%) b) Profit on ordinary activities before tax 434,922 1,052,171 1,487,093 486,737 1,156,537 1,643,274Profit on ordinary activities multiplied bysmall company rate of corporation tax inthe UK of 20% (2012: 20.17%) 86,984 210,434 297,418 98,175 233,274 331,449Effect of:UK dividends (18,655) - (18,655) (41,745) - (41,745)Unrealised gains not taxable - (260,169) (260,169) - (284,075) (284,075)Realised gains not taxable - (55,760) (55,760) - (50,134) (50,134)Marginal relief 6,853 (6,853) - - - -Unrelieved expenditure 37,166 37,166 - 44,505 44,505 Actual current tax charge 75,182 (75,182) - 56,430 (56,430) - Tax relief relating to investment management feesis allocated between revenue and capital where such relief can be utilised. No asset or liability has been recognised fordeferred tax in relation to capital gains or losses on revaluing investmentsas the Company is exempt from corporation tax in relation to capital gains orlosses as a result of qualifying as a Venture Capital Trust.

There is no potential liability to deferred tax (year to 31 January 2012: £nil). There is an unrecogniseddeferred tax asset of £325,046 (31 January 2012: £245,483).

5 Dividends paid and payable Period ended 31 Year ended 31 December 2012 January 2012 £ £

Amounts recognised as distributions to equity holders in the period:Interim income dividend for the year ended 31 January 2012 of 1.5 pence per

435,756 -

Ordinary Share paid 6 June 2012Interim capital dividend for the year ended 31 January 2012 of 3.5 pence per

1,016,763 -

Ordinary Share paid 6 June 2012Final income dividend for the year ended 31 January 2011 of 0.4 pence per Ordinary

- 100,509Share paid 24 June 2011Final capital dividend for the year ended 31 January 2011 of 2.6 pence per Ordinary - 653,311Share paid 24 June 2011 1,452,519* 753,820* * - Of this amount £164,418 (31 January 2012: £61,301) of new

shares were issued as part of the DRIS scheme.

Proposed distributions to equity holders at the period-end:Interim income dividend for the period ended 31 December 2012 of 1.0 pence (year to 302,329

435,756

31 January 2012: 1.5p) per Ordinary shareInterim capital dividend for the period ended 31 December 2012 of 4.5 pence (year

1,360,482 1,016,763

to 31 January 2012: 3.5p) per Ordinary share

1,662,811 1,452,519 The interim dividend declared after the periodend will be recognised when it is paid to Shareholders and therefore has notbeen included as a liability in these financial statements.

Set out below are the total income dividendspayable in respect of the financial period, which is the basis on which therequirements of section 274 of the Income Tax Act 2007 are considered.

Period ended 31 Year ended 31 January December 2012 2012 £ £ Revenue available for distribution by way of dividends for the period 359,740 430,307

Proposed [interim] income dividend declared for the period ended 31 December

302,329 431,233

2012 of 1 pence (year to 31 January 2012: 1.5 pence) per Ordinary Share

6 Basic and diluted earnings per share

Period ended 31 December Year ended 31 January 2012 2012 £ £ Total earnings after taxation: 1,487,093 1,643,274Basic and diluted earnings per share (note a) 5.26p 6.62pNet revenue from ordinary activities after taxation 359,740 430,307Basic and diluted revenue return per share (note b) 1.27p 1.73p Net unrealised capital gains 1,300,844 1,409,405Net realised capital gains 278,802 247,559 Capital expenses (net of taxation) (452,293) (443,997)Total capital return 1,127,353 1,212,967Basic and diluted capital return per share (note c) 3.99p 4.89p Weighted average number of shares in issue in the period 28,266,790 24,804,482

Notes:

a) Basic earnings per share is total earnings after taxation divided by theweighted average number of shares in issue.

b) Revenue earnings per share is the revenue return after taxation divided bythe weighted average number of shares in issue.

c) Capital earnings per share is the total capital profit after taxationdivided by the weighted average number of shares in issue.

d) There are no instruments that will increase the number of shares in issuein future. Accordingly, the above figures currently represent both basic anddiluted returns. 7 Investments at fair value Movements in investments during the period are summarised asfollows: Traded on AiM Unquoted Unquoted Loan stock Total equity Shares preference Shares £ £ £ £ £Cost at 31 January 2012 199,998 6,008,914 26,223 12,466,844 18,701,979 Unrealised losses at 31 January 2012 (25,000) (2,220) (7,951) (91,759) (126,930)Permanent impairment in value of investmentsas at 31 January 2012 - (319,319) (1,068) (283,305) (603,692)Valuation at 31 January 2012 174,998 5,687,375 17,204 12,091,780 17,971,357 Purchases at cost - 1,638,651 - 2,668,647 4,307,298Sale proceeds - (1,473,225) (2,042) (572,719) (2,047,986) Reclassification at value - (187,955) - 187,955 -Realised gains in the period - 287,335 - 19,319 306,654Unrealised gains/(losses) in the period 91,666 1,343,418 (1,000) (133,240) 1,300,844Closing valuation at 31 December 2012 266,664 7,295,599

14,162 14,261,742 21,838,167

Cost at 31 December 2012 199,998 7,689,195 23,113 14,332,053 22,244,359Unrealised gains/(losses) at 31 December 2012 66,666 (74,277) (7,883) 212,994 197,500Permanent impairment in value of investments - (319,319) (1,068) (283,305) (603,692)Valuation at 31 December 2012 266,664 7,295,599

14,162 14,261,742 21,838,167

The major components of the increase in unrealised valuations of£1,300,844 in the period were increases of £467,013 in ATG Media Limited,£364,590 in DiGiCo Global Limited, £345,108 in EMaC Limited and £256,044 inFocus Pharma Holdings Limited. These gains were partly offset by falls of£658,748 in ASL Technology Holdings Limited, £211,160 in Faversham HouseHoldings Limited Limited and £170,420 in RDL Corporation Limited.

Details of investment transactions such as disposal proceeds,valuation movements cost and carrying value at the end of previous period arecontained in the Investment Portfolio Summary on pages 14 - 17.

Reconciliation of investment transactions to cash and income statement movements

The difference between sales of investments above of £2,047,986,and the inflow of £2,028,239 shown by the Cash Flow Statement, is £19,747,being transaction costs of £27,852 and an amount receivable at the previousyear-end of £8,105. These transaction costs also account for the difference inrealised gains between £306,654 shown above and £278,802 disclosed in theIncome Statement.

Unrealised gains/(losses) at 31 December 2012 of £197,500 differ tothat shown on the Revaluation Reserve of £1,529,402. The difference of£1,331,902 is loan stock received as part of the disposal of DiGiCo EuropeLimited in December 2011 which was not recognised as a realised gain in thatyear.

8 Movement in share capital and reserve s

Called up Share Premium Capital

Revaluation Special Profit and Total

Share redemption reserve distributable loss account capital reserve reserve * * £ £ £ £ £ £ £ At 1 February 2012 252,019 6,847,570 894,105 1,204,972 14,078,325 6,141,674 29,418,665 Share buybacks (10,954) - 10,954 - (1,117,828) - (1,117,828)Shares issued via 1,629 162,789 - - - - 164,418Dividend re-investmentSchemeShares issued via Offer 43,201 4,994,241 - - - - 5,037,442for SubscriptionsTransfer of realised - - - - (458,733) 458,733 -losses to Specialdistributable reserve(note)Realisation of previously - - - (976,414) - 976,414 -unrealised gainsDividends paid - - - - - (1,452,519) (1,452,519)Profit for the period - - - 1,300,844 - 186,249 1,487,093 As at 31 December 2012 285,895 12,004,600 905,059 1,529,402 12,501,764 6,310,551 33,537,271 * - These reserves total £18,812,315 (31 January2012: £20,219,999) and are regarded as distributable reserves for the purposeof assessing the Company's ability to pay dividends to shareholders. The cancellation of the Company's Share Premium Account (as approved by a Special Resolution of the Company passed on 20June 2001 and confirmed by an Order of the Court dated 5 September 2001) and the cancellation of the share premium onthe further allotted shares (by an Order of the Court dated 19 December 2007) has provided the Company with a specialreserve. One of the purposes of the special reserve is to be treated as distributable profits for the purposes offunding purchases of the Company's own shares. The Company is also able to write off existing and future realised capital losses against this reserve, now that theCompany has revoked its investment company status and is obliged to take into account capital losses in determiningdistributable reserves. Accordingly, a transfer of £458,733 has been made from the Special Reserve to the Profit andLoss account, representing current period realised losses.

9 Basic and diluted net asset value per share

Net asset value per Ordinary Share is based on net assets at theend of the period, and on 28,589,452 (31 January 2012: 25,201,906) OrdinaryShares, being the number of Ordinary Shares in issue on that date.

There are no instruments that will increase the number of shares inissue in future. Accordingly, the above figures currently represent both basicand diluted net asset value per share.

10 Management of capital

The Company's objectives when managing capital are to safeguard theCompany's ability to continue as a going concern, so that it can continue toprovide returns for shareholders and to provide an adequate return toshareholders by allocating its capital to assets commensurate with the levelof risk. By its nature, the Company has an amount of capital, at least 70%(as measured under the tax legislation) of which is and must remain, investedin the relatively high risk asset class of small UK companies within threeyears of that capital being subscribed. The Company accordingly has limitedscope to manage its capital structure in the light of changes in economicconditions and the risk characteristics of the underlying assets. Subject tothis overall constraint upon changing the capital structure, the group mayadjust the amount of dividends paid to shareholders, return capital toshareholders, issue new shares, or sell assets if so required to maintain alevel of liquidity to remain a going concern.

Although, as the Investment Policy implies, the Board wouldconsider levels of gearing, there are no current plans to do so. It regardsthe net assets of the Company as the Company's capital, as the levels ofliabilities are small and the management of them is not directly related tomanaging the return to shareholders. There has been no change in this approachfrom the previous year.

11 Segmental analysis

The operations of the Company are wholly in the United Kingdom, from one class of business.

12 Post balance sheet events

Under the Linked Offer for Subscription launched on 29 November 2012,1,643,474 new ordinary shares were allotted at a price of 120.1 pence pershare raising net funds of £1,869,866, on 14 January 2013.

On 18 February 2013, £683,135 held by Almsworthy Trading Limited,one of the Company's acquisition companies, was used to invest further fundsinto Fullfield Limited (trading as Motorclean) to enable it to acquire rivalCompany, Forward Valeting Services Limited. This resulted in a repayment offunds to the Company from Almsworthy of £316,865.

On 13 March 2013, the Court granted authority to the Company tocancel the balance on its share premium account of £13,858,090.

On 14 March 2013, the Company invested £1,484,302 (including£1,000,000 from Fosse Management Limited, one of the Company's acquisitioncompanies) to support the MBO of Gro-group, a market leader for baby sleeptime products in the UK and Australia.

13 Dividends

The Directors have declared an interim dividend of 5.5 pence per share. Thedividend will be paid on 10 May 2013 to Shareholders on the Register 12 April2013. Shareholders who wish to have dividends paid directly into their bankaccount rather than sent by cheque to their registered address can complete amandate for this purpose. Mandates can be obtained by telephoning theCompany's Registrars, Capita Registrars on 0871 664 0300, (lines are open 8.30am - 5.30 pm Mon - Fri, calls cost 10p per minute plus network extras - ifcalling from overseas please ring +44 208 639 2157) or by writing to them atCapita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.Alternatively you may visit their website,www.capitaregistrars.com/shareholders.

14 Statutory information

The financial information set out in these statements does not constitute theCompany's statutory accounts for the year ended 31 December 2012 in terms ofsection 434 of the Companies Act 2006 but is derived from those accounts.Statutory accounts for the year ended 31 December 2012 will be delivered toCompanies House following the Company's Annual General Meeting. The auditorshave reported on those accounts: their report was unqualified and did notcontain a statement under Section 498 of the Companies Act 2006.

15 Annual Report

The Annual Report for the year ended 31 December2012 will shortly be made available on the Company's website:www.mig4vct.co.uk. and Shareholders will be notified of this by email or postor sent a hard copy in the post in accordance with their instructions. Copieswill be available thereafter to members of the public from the Company'sregistered office.

16 Annual General Meeting

The Annual General Meeting of the Company will be held at 12.00 noon onFriday, 10 May 2013 at the offices of Mobeus Equity Partners, 30 Haymarket(4th floor), London, SW1Y 4EX.

Contact details for further enquiries:

Robert Brittain of Mobeus Equity Partners LLP (the CompanySecretary) on 020 7024 7600 or by e-mail to mig4@mobeusequity.co.uk.

Mark Wignall or Mike Walker at Mobeus Equity Partners LLP (theInvestment Manager) on 020 7024 7600 or by e-mail to 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.