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28 Sep 2007 16:34
Matrix Income & Growth 4 VCT plc
Half-yearly report for the six months ended 31 July 2007
28 September 2007
Investment objective
The objective of Matrix Income & Growth 4 VCT plc ("the Company")is to provide shareholders with an attractive investment return, principallyby maximising the stream of dividend distributions from the income and capitalgains generated by a portfolio of investments in a wide variety of unquotedcompanies in the UK.
The portfolio comprises a number of diverse investments over a wide range of different business sectors, thus spreading risk by avoiding over-concentration in any one sector.
Key data 31 July 2007 31 July 2006 31 January Change 2007 (restated) since the (audited) year-end (%)
Net asset value per share (p) 118.69 113.61 116.34
2.02Share price (p)1 100.50 85.00 91.00 10.44Discount (%) 15.33 25.18 21.78 (29.61)
Cumulative dividends paid (p) 10.70 8.90 8.90
20.22
Total return since launch per 129.39 122.51 125.24
3.31share (p)2Net assets (‚£'000) 24,534 9,741 9,772 151.06
1 Source: London Stock Exchange
2 Net Asset Value (NAV) per share plus cumulative dividends to date
Information at 31 July 2006 has been restated to incorporate the restructuring of the share capital that occurred on 18 October 2006 under which all existing Shareholders received one Ordinary Share of 1 penny for every two Ordinary Shares of 5 pence held before the restructuring.
Chairman's Statement and Management Report
I am pleased to present the Half-Yearly Report for the six months ended 31 July 2007 - the first half-yearly report in its new form as a single manager VCT.
The early part of this period was, inevitably, dominated by theOffer for Subscription by the Company. The latter part was overshadowed by thedebt and stock market turmoil. I will comment in more detail about these twoevents below.Net asset value
At 31 July 2007, the Company's Net Asset Value (NAV) per share was 118.69 pence per Ordinary 1p Share (including current year income) (31 Jan 2007: 116.34 pence per Ordinary 1p Share). Net Assets rose by 151.06% from ‚£9.8 million to ‚£24.5 million since the year-end, most of which can be attributed to the Offer for Subscription.
Economic and stock market background
At the end of the six-month period ended 31 July 2007, stockmarkets around the world have been dominated by the difficulties in the USsub-prime mortgage market. Since the period-end, this has resulted inconsiderable stock market turmoil with sharp daily index swings mostly amidstheavy turnover. Whilst the worst of the turmoil may be over in the short term,there can be no certainty that further falls in these stock markets will notbe seen in the near future.In the UK during the period, the FTSE 100 Index rose 4.54% and theFTSE All-Share Index rose 4.27% with the AIM Index rising by 11.37%. However,at the time of writing this Report, following the stock market turmoil, theserises have been almost entirely eroded. At this time, the effect of the verysmall number of AIM stocks in the portfolio has been beneficial.On the investment side generally, there is still no shortage ofequity and debt providers looking for good prospects. Competition to financesuch situations continues to remain relatively strong, although hopefully moreof these providers will become more discerning or cautious. The InvestmentManager continues to be wary of some high valuations being placed onbusinesses in the current market, but still remains confident of sourcing goodquality investments.The portfolioWhen considered by stage of development, the portfolio is dominatedby investments in management buy-out situations ("MBOs"), which continues torise, at some 71.93% with 24.25% invested in development capital companies andthe remaining 3.82% of the portfolio being invested in AIM stocks and earlystage investments. Following the recent change in investment strategy, theportfolio continues to invest in a wider range of market sectors with thelargest of those being support services at 38.43%. Consumer services at 18.01%is the next largest investment sector. This spread of investments reflects thecurrent investment strategy of spreading risks whilst trying to maintain asteady, if not increasing, dividend yield.Some new investments have been made since my last report. A newinvestment of ‚£1 million was made in July 2007 into Digico Europe Limited, amanufacturer of digital sound mixing consoles for the live performance,theatre, post production and broadcast markets. After the period end a furtherinvestment of ‚£445,506 was made into Blaze Signs Holdings Limited, an existinginvestee company, to acquire a complementary business, Active Sign MaintenanceLimited.In April 2007, Maven Management Limited was sold to Munro GlobalLimited. The cash proceeds from this disposal were ‚£429k with the loan stockof ‚£171k to be re-paid in three tranches dependent on turnover over the nextthree years.
Within the former Elderstreet portfolio, a purchase of 4,864 shares of Mobile & Wireless Group Limited was made in February 2007. This company then changed its name to Expansys plc on 13 March 2007 prior to a listing on AIM on 11 April 2007.
During the period small additional purchases were made into Higher Nature plc, BBI Holdings plc, Sectorguard plc and VSI Limited.
It is worth commenting again that the Company now holds only a small number ofrelatively early stage AIM quoted stocks as the Investment Manager's focus ison investments that finance the management buyouts of privately ownedcompanies.
Revenue Account
At 31 July 2007, distributable revenue reserves were ‚£240,367, representing 1.37 pence per share. The total return per share in the period ended 31 July 2007 was 4.06 pence (7.15 pence in the period ended 31 July 2006).
Dividend
The Board proposes to declare an interim dividend of 0.75 pence per share for the period ended 31 July 2007, payable on 8 November 2007 to shareholders on the register on 12 October 2007, and hopes to be able to propose a further dividend for the year ended 31 January 2008.
Offer for Subscription by the Company
The Offer for Subscription under the Securities Note to raise up to‚£20m for MIG 4 was launched in November 2006. The reaction from independentcommentators and the leading IFAs was positive, and I am pleased to reportthat the Offer for Subscription closed on 5 April 2007 having issued13,006,193 New Ordinary Shares at an average price of approximately 120.86pence per share and having raised ‚£15.7 million before costs. This outcome isparticularly pleasing as the Company has more than doubled its size and by sodoing has increased its potential for capital gains going forward.
Share buy-backs
During the period ended 31 July 2007 the Company continued toimplement its buy-back policy and bought back 734,589 of the Company'sOrdinary Shares (representing 3.55% of the shares in issue at the period end)at a total cost of ‚£661,410 (net of expenses). These shares were subsequentlycancelled by the Company.
This has been a busy period for the Board and the Company. Most importantly, your Board continues to be pleased with the progress that the portfolio is making, particularly given the current financial background. It is encouraging that the Company has managed to increase its net assets per share whilst in the background stock markets around the globe have been falling sharply. We look forward with confidence to the opportunities potentially being offered from investing the larger pool of funds.
Colin HookChairman12 September 2007Responsibility Statement
The Directors confirm that to the best of their knowledge:
(a) the condensed set of financial statements, which has beenprepared in accordance with the applicable set of accounting standards, givesa true and fair view of the assets, liabilities, financial position and profitor loss of the Company, as required by Disclosure & Transparency Rule 4.2.4;and (b) the interim management report includes a fair review of theinformation required by Disclosure & Transparency Rule 4.2.7- 8 in accordancewith Disclosure & Transparency Rule 4.2.10.
Investment Portfolio Summary
as at 31 July 2007 Total Additional cost at Total Investments Total Percentage Percentage valuation in the valuation of 31 July at 31 Jan at 31 of equity portfolio 07 07 period July 07 held by value ‚£ ‚£ ‚£ ‚£ % % Matrix PrivateEquity Partners LLP Youngman GroupLimited 500,026 1,372,182 - 1,563,627 4.29% 19.01%Manufacturers ofladders and accesstowersHigher Nature plc 500,127 1,574,137 127 1,431,139 10.69% 17.40%Supplier ofmineral, vitaminand food resourcesDiGiCo EuropeLimited 1,000,000 - 1,000,000 1,000,000 6.52% 12.16%Design andmanufacture ofaudio mixing desksPXP Holdingslimited (PinewoodStructures) 584,088 584,088 - 584,088 4.98% 7.10%Designer,manufacturer andsupplier of timberframes forbuildingsStortext FM Limited 631,719 375,968 69,899 445,867 4.60% 5.42%Software basedsolutions fordocument managementMinistry of CakeLimited 328,720 325,635 - 418,096 5.60% 5.08%Manufacturer offrozen cakes anddessertsRacoonInternationalLimited 406,805 406,805 - 406,805 5.70% 4.95%Supplier of hairextensions, haircare products andtrainingTottel PublishingLimited 235,200 375,664 - 383,087 6.27% 4.66%Publisher ofspecialist legaland taxation titlesVSI Limited 177,217 177,213 4 326,370 4.56% 3.97%Provider ofsoftware for CADand CAM vendorsBritishInternationalHoldings Limited 250,000 250,000 - 276,504 2.50% 3.36%Operator ofhelicopter servicesPastaking HoldingsLimited 133,055 133,055 - 243,096 2.10% 2.96%Manufacturer andsupplier of freshpasta mealsBlaze SignsHoldings Limited 164,510 164,510 - 239,654 4.63% 2.91%Manufacturer andinstaller of signsCampden Media 152,620 154,040 - 153,650 1.69% 1.87%LimitedMagazine publisherand conferenceorganiserSectorGuard plc1 150,102 160,714 102 117,926 1.38% 1.43%Manned guarding,patrolling andalarm responseservicesMunro GlobalLimited 171,381 - 171,381 114,254 - 1.39%Marketing servicesgroupVectair HoldingsLimited 100,000 100,818 - 105,342 2.14% 1.28%Designer anddistributor ofwashroom productsBBI Holdings plc1 57,675 81,034 147 103,470 0.14% 1.26%Gold conjugate forthe medicaldiagnosticsindustryBG Consulting GroupLimited/Duncary 4 See note 3Limited 230,796 52,383 - 51,371 below 0.62%Provider offinancial trainingservicesInca InteriorsLimited 350,000 50,000 - 50,000 14.75% 0.61%Designer, supplierand installer ofcontract kitchensMaven ManagementLimited - 482,206 - - - 0.00%Market researchagencyOther investmentsin portfolio2 333,805 - - - - 0.00% ------ ------ ------ ------ ------ ------
Total 6,457,846 6,820,452 1,241,660 8,014,346 97.44%Former ElderstreetPrivate EquityLimited Portfolio Expansys plc1 31,001 65,773 4,872 150,154 0.58% 1.83%(Formerly Mobile &Wireless GroupLimited)Online retailer ofdigital servicesCashfac Limited 260,101 33,163 - 34,666 3.42% 0.42%Provider of virtualbanking applicationsoftwareSparesfinderLimited 250,000 25,683 - 25,683 2.19% 0.31%Supplier ofindustrial spareparts on-linesoftware vendorOther investmentsin the portfolio2 898,062 - - - 0.00% ------ ------ ------ ------ ------ ------Total 1,439,164 124,619 4,872 210,503 - 2.56% ------- ------ ------ ------ ------ -------InvestmentManagers' totals 7,897,010 6,945,071 1,246,532 8,224,849 100.00% ===== ===== ===== ===== ===== =====1 Quoted on AIM
2 Other investments in the portfolio comprises those investments that have been valued at nil and from which the Directors only expect to receive small recoveries ie FH Ingredients Limited (of which the principal operating subsidiary, FHL Realisations Limited is in administration) and Letraset Limited in the MPEP portfolio and ComponentSource Holding Corporation, Sapphire International Limited (in liquidation), Sift Group Limited and Shopcreator plc in the former Elderstreet portfolio.
3 The % of equity held in BG Consulting Group Limited is 2.6% and in Duncary 4 Limited is 6.64%.
Investment Managers' ReviewSince appointment as sole investment manager, MPEP has continuedits approach of investing in established, profitable companies, principally byway of Management Buy Outs ("MBOs"). The rate at which we have made newinvestments has slowed considerably, particularly compared to the rate seen inthe comparable period in 2006. Competition for transactions has increasedmarkedly. This has in part been driven by the amount of debt and equityfunding available to companies, which has led to inflation in purchase prices.We have also been offered a greater number of lower quality transactions. Wehave therefore been adopting a highly selective and cautious approach towardsnew investment in the current environment.
In early July an investment of ‚£1 million was completed as part of the MBO of Digico Europe Limited, the global market leading manufacturer of digital sound mixing consoles for the live performance theatre, post-production and broadcast markets. Two further investment opportunities have also been agreed and are proceeding through diligence and contract negotiations.
In April, Maven Management was sold to Munro Global, an acquisitive marketing services business; for its 33% shareholding MIG 4 received cash proceeds of ‚£429k and may receive further payments of up to ‚£171k on achievement of specified revenue levels in future years. This compared with the most recent valuation of ‚£482k at 31 January 2007.
At 31 July 2007, the MPEP-invested portfolio comprised investments in 21 companies at an aggregate cost of ‚£6.5 million and is valued at that date, in accordance with International Private Equity & Venture Capital Valuation ("IPEVCV") guidelines, at ‚£8.0 million, an uplift of 24%. Four companies have moved from cost to a discounted earnings valuation since the beginning of the period, and all have shown an increase, generally reflecting performance in line with our expectations at the time we made our investment.
Amongst these newer investments, of particular note has been thestrong trading experienced by both Blaze Signs and PastaKing, the formerseeing growth from its major retail customers and the latter benefiting fromthe increasing trend towards healthy eating in schools and colleges.Additionally, British International has recently been successful in gainingoffshore work for its helicopter fleet and is in the midst of its busy summerperiod, and Vectair is showing impressive revenue and profit growth in Europefor its range of air fresheners and toiletry products, and is also expandinginto the USA. Other, longer-standing investments including Youngman Group, BBIHoldings and Higher Nature, have again reported impressive results. However,Inca, Stortext FM and Letraset continue to suffer from disappointingly lowrevenues.MPEP also manages seven investments made by a previous manager,which were valued at ‚£125k as at 31 January 2007. One of these investments,Expansys Plc (formerly Mobile & Wireless Group), floated on AiM in April 2007,and its valuation during the period has increased from ‚£66k to ‚£150k. Of theother investments, Cashfac is showing encouraging progress.Whilst unquoted companies are not immune from the wider economicenvironment and the recent increases in interest rates, we remain encouragedby the overall performance of the portfolio and have recently seen potentialfor some early realisations of newer investments.
Unaudited Income Statement
(incorporating the Revenue Account of the Company for the six months ended 31 July 2007)
Six months ended 31
July 2007 Six months ended 31 July 2006
(unaudited) (unaudited) Revenue Capital Total Revenue Capital Total ‚£ ‚£ ‚£ ‚£ ‚£ ‚£ NotesUnrealised gains on investments held at fair value - 686,833 686,833 - 449,680 449,680Realised (losses)/gains on investments held at fair value - (53,625) (53,625) - 162,708 162,708Income 5 477,065 - 477,065 170,767 - 170,767Investment management fees 3 (59,109) (177,327) (236,436) (13,641) (40,924) (54,565)Other expenses (161,902) - (161,902) (109,426) - (109,426)
---------------------------------------------------------------- Return on ordinary activities before taxation 256,054 455,881 711,935 47,700 571,464 619,164
Taxation on ordinary activities 6 (15,687) 15,687 -
(3,101) 3,101 -
---------------------------------------------------------------- Return attributable to equity shareholders 240,367 471,568 711,935 44,599 574,565 619,164
====== ====== ====== ====== ====== ======Return per share (basic and diluted) 7 1.37p 2.69p 4.06p 0.52p 6.63p 7.15p Year ended 31 January 2007 (audited) Revenue Capital Total Notes ‚£ ‚£ ‚£
Unrealised gains on investments held at fair value - 601,177 601,177Realised (losses)/gains on investments held at fair value - 270,668 270,668Income 5 354,141 - 354,141Investment management fees 3 (32,072) (96,215) (128,287)Other expenses (288,581) - (288,581) ------------ ------------ ------------Return on ordinary activities before taxation
33,488 775,630 809,118
Taxation on ordinary activities 6 (3,119) 3,119 - ------------ ------------ ------------Return attributable to equity shareholders
30,369 778,749 809,118
====== ====== ======Return per share (basic and diluted) 7
0.35p 9.06p 9.41p
The total column of the Income Statement is the profit and loss account of the Company. There were no other gains and losses in the six months ended 31 July 2007, or the comparative periods.
No operations were acquired or discontinued in the period.
The operations of the Company are wholly in the United Kingdom.
Dividends paid
Six months to 31 July 2007 Six months to 31 July 2006 (unaudited) (unaudited) Revenue Capital Total Revenue Capital Total ‚£ ‚£ ‚£ ‚£ ‚£ ‚£Final dividendpaid for theyear ended 31January 2006 of0.5(restated)pence perOrdinary Sharepaid 7 June 2006 - - - 43,222 - 43,222Interim dividendfor the yearended 31 January2007 of 1.8(restated) penceper OrdinaryShare paid 26October 2006 153,988 - 153,988 - - - ==== ==== ===== ==== ==== ===== 153,988 - 153,988 43,222 - 43,222 Year to 31 January 2007 (audited) Revenue Capital Total ‚£ ‚£ ‚£Final dividend paid forthe year ended 31January 2006 of0.5(restated) pence perOrdinary Share paid 7June 2006 43,572 - 43,572Interim dividend for theyear ended 31 January2007 of 1.8 (restated)pence per Ordinary Sharepaid 26 October 2006 - - - ==== ==== ===== 43,572 - 43,572Unaudited Balance Sheetas at 31 July 2007 31 July 2007
31 July 2006 31 January 2007
(unaudited)
(unaudited) (audited)
Notes ‚£ ‚£ ‚£Non-current assetsInvestments at fair value 9 8,224,849 6,654,123 6,945,071Current assetsDebtors and prepayments 115,754 76,202 223,072Investments at fair value 10 16,349,280
1,949,526 694,526Cash at bank - 1,170,317 2,040,442 ------------ ------------ ------------ 16,465,034 3,196,045 2,958,040
Creditors: amounts falling due within one year (156,273)
(109,094) (130,963)
------------ ------------ ------------Net current assets 16,308,761
3,086,951 2,827,077 ------------ ------------ ------------Net assets 24,533,610 9,741,074 9,772,148 ------------ ------------ ------------Capital and reserves 11Called up share capital 206,710 857,434 83,994Share premium reserve 14,739,562 - -Capital Redemption Reserve 878,111 97,325 870,765Capital reserve - unrealised 530,010 (717,371) 150,383Special reserve 15,582,836 16,415,149 16,248,945Capital reserve - realised (7,643,986) (7,072,357) (7,735,927)Revenue reserves 240,367
160,894 153,988
------------ ------------ ------------Equity shareholders' funds 24,533,610
9,741,074 9,772,148
====== ====== ======Net asset value per share 8 118.69p
113.61p 116.34p
These Interim accounts were approved and authorised for issue by the Board of Directors on 12 September 2007.
Unaudited Reconciliation of Movements in Shareholders' Funds
for the six months ended 31 July 2007
Six months ended Six months ended Year ended 31 July 2007 31 July 2006 31 January 2007 (unaudited) (unaudited) (audited) ‚£ ‚£ ‚£ Opening Shareholders' Funds 9,772,148 9,286,678 9,286,678Net share capitalsubscribed/(bought back) 14,203,515 (121,546) (280,076)Return for the periodbefore dividends 711,935 619,164 809,118Dividends paid (153,988) (43,222) (43,572) ------------ ------------ ------------Closing Shareholders' Funds 24,533,610 9,741,074 9,772,148 ====== ====== ======
Unaudited Statement of Cash Flow for the six months ended 31 July 2007
Six months ended Six months ended Year ended 31 July 2007 31 July 2006 31 January 2007 (unaudited) (unaudited) (audited) Notes ‚£ ‚£ ‚£Operating activitiesTotal return on activities before taxation 711,935 619,164 809,118Unrealised (gains) on investments held at fair value (686,833) (449,680) (601,177)Realised (gains) on investments held at fair value 53,625 (162,708) (270,668)(Increase)/decrease in debtors (46,670) (7,881) (1,615)Increase/(decrease) in creditors 43,520 (22,284) (188,020)Transaction costs charged to capital (74) (2,394) (3,084)Other non cash movements (69,899) - - ------------ ------------ ------------Net cash inflow/(outflow) from operating activities 5,604
(25,783) (255,446)
Investing activitiesSale of investments 9 428,655 755,886 1,716,004Purchase of investments 9 (1,005,252)
(808,435) (1,799,354)
------------ ------------ ------------Acquisitions and disposals (576,597)
(52,549) (83,350)
Cash outflow before financing and liquid resourcemanagement (570,993)
(78,332) (338,796)
Financing
Equity dividends paid - (43,222) (43,572)Share capital subscribed 14,869,624 - -Purchase of own shares (694,948) (247,247) (217,320)Payment to Ordinary Shareholders -
- (153,988) ------------ ------------ ------------ 14,174,676 (290,469) (414,880)Management of liquid resources(Increase)/decrease in monies held in money market funds (15,654,754)
89,389 1,344,389
------------ ------------ ------------(Decrease)/increase in cash (2,051,071)
(279,412) 590,713
====== ====== ======
Reconciliation of net cash flow to movement in net funds (Decrease)/increase in cash for the period
(2,051,071) (279,412) 590,713Net funds at the start of the period 2,040,442
1,449,729 1,449,729
------------ ------------ ------------Net funds at the end of the period (10,629)
1,170,317 2,040,442
====== ====== ======
Notes to the Unaudited Financial Statements
1. Principal accounting policies
The following accounting policies have been applied consistently throughout the period. Full details of principal accounting policies will be disclosed in the Annual Report.
a) Basis of accounting
The unaudited interim results cover the six months to 31 July 2007and have been drawn up in accordance with applicable accounting standards andadopting the accounting policies set out in the statutory accounts for theyear ended 31 January 2007, and the Accounting Standard Board's statement onhalf-yearly Financial Reports (2007).
b) Investments
Investments are recognised on a trade date basis. All investmentsheld by the Company are classified as "fair value through profit and loss", inaccordance with the International Private Equity Venture Capital Valuation(IPEVCV) guidelines published in 2005. For investments actively traded inorganised financial markets, fair value is generally determined by referenceto Stock Exchange market quoted bid prices at the close of business on thebalance sheet date.
Unquoted investments are stated at fair value by the Directors in accordance with the following rules, which are consistent with the IPEVCV guidelines:
(i) Recent investments which have been made in the last 12 months are at fair value which, unless another methodology gives a better indication of fair value, will be at cost.
(ii) Investments in companies at an early stage of their development are valued at fair value which, unless another methodology gives a better indication of fair value, will be at cost.
(iii) Where investments have been held for more than twelve monthsor gone beyond the stage in their development in (i) or (ii) above, the sharesmay be valued at, by applying a suitable price-earnings ratio to thatcompany's historic, current or forecast earnings (the ratio used being basedon a comparable listed company or sector but the resulting value beingdiscounted to reflect lack of marketability). Where overriding factors apply,alternative methods of valuation will be used. These will include theapplication of a material arms length transaction by an independent thirdparty, cost, cost less provision for impairment, discounted cash flow, or anet asset basis;
(iv) Where a value is indicated by a material arms-length transaction by a third party in the shares of a company, this value will be used.
(v) Where fair value cannot be reliably measured under notes 1 b) i-iv above, an investment is held at the most recent carrying value, reduced where there is evidence of impairment by the estimated extent of impairment.
Capital gains and losses on investments, whether realised or unrealised, are dealt with in the capital reserve - realised and unrealised respectively, and shown in the Income Statement.
Although the Company holds more than 20% of the equity of certain companies, it is considered that the investments are held as part of an investment portfolio. Accordingly, and as permitted by FRS 9 `Associate and Joint Ventures', their value to the Company lies in their marketable value as part of that portfolio. It is not considered that any of our holdings represents investments in associated companies.
2. All revenue and capital items in the above Income Statement derive from continuing operations.
3. In accordance with the policy statement published under"Management and Administration" in the Company's prospectus dated 8th February1999, the Directors have charged 75% of the investment management expenses tothe capital account. This is in line with the Board's expectation of thelong-term split of returns from the investment portfolio of the Company.
4. Earnings for the six months to 31 July 2007 should not be taken as a guide to the results for the full year.
5. Income Six months ended Six months ended Year ended 31 July 2007 31 July 2006 31 January 2007 (unaudited) (unaudited) (audited)Income from investments ‚£ ‚£ ‚£ Dividends 31,527 40,020 79,180Money-market funds 256,752 44,258 87,290Loan stock interest 177,862 85,917 184,335Bank deposit interest 10,924 572 3,336 ------------ ------------ ------------Total Income 477,065 170,767 354,141 ======== ======== ========
6. The tax charge for the period has been reduced by the utilisation of tax losses brought forward from previous periods.
7. Earnings and return per share
The basic earnings, revenue return and capital return per shareshown below for each period are respectively based on numerators i)-iii), eachdivided by the weighted average number of shares in issue in the period - seeiv) below: Six months ended Six months ended Year ended 31 July 2007 31
July 2006 31 January 2007
(unaudited) (unaudited and (audited) restated) ‚£ ‚£ ‚£
i) Total earnings after taxation 711,935 619,164 809,118Basic earnings per share (pence) 4.06p 7.15p 9.41p
ii) Net revenue from ordinary activities after taxation 240,367 44,599
30,369Revenue return per share (pence) 1.37p 0.52p 0.35p iii) Capital gain 471,568 574,565 778,749Capital gain/(loss) per share (pence) 2.69p 6.63p 9.06p ------------- ------------- -------------iv) Weighted average number of shares in issue in theperiod 17,548,791 8,661,549 8,594,860 ------------- ------------- -------------8. Net asset value per share As at As at As at 31 July 2007 31 July 2006 31 January 2007 (unaudited) (unaudited and (audited) restated) ‚£ ‚£ ‚£Net assets 24,533,610 9,741,074 9,772,148Number of shares in issue as at 31 July 2007 20,670,941
8,574,340 8,399,337
Net asset value per share (pence) 118.69p 113.61p 116.34p9. Summary of non-current asset investment at fair value during thecurrent period Unlisted or traded Preference Qualifying Traded on AIM on OFEX Shares loans Total ‚£ ‚£ ‚£ ‚£ ‚£
Cost/valuation at 31 January 2007 241,748 3,914,722 18,901 2,769,700 6,945,071Purchases at cost 250 391,524 435 854,323 1,246,532Sales - proceeds - (600,036) - - (600,036)- realised losses - (53,551) - - (53,551)Unrealised (losses)/gains (20,602) 714,858
(1,667) (5,756) 686,833
----------- ----------- ----------- ----------- -----------Cost/valuation at 31 July 2007 221,396 4,367,517
17,669 3,618,267 8,224,849
Book cost at 31 July 2007 207,778 3,443,178 120,198 4,125,856 7,897,010Unrealised gains/(losses) at 31 July 2007 13,618 924,340 (102,529) (476,800) 358,629Permanent impairment of investments - -
- (30,790) (30,790)
----------- -----------
----------- ----------- -----------
221,396 4,367,518 17,669 3,618,266 8,224,849 Gains on investments - 253,655 - - 253,655Less amounts recognised as unrealisedgains in previous years - (307,206) - - (307,206)Realised losses based on carrying valueat 31 January 2007 - (53,551) - - (53,551) Net movement in unrealised appreciationin the period (20,602) 714,858
(1,667) (5,756) 686,833
----------- ----------- ----------- ----------- -----------(Losses)/gains on investments for theperiod ended 31 July 2007 (20,602) 661,307
(1,667) (5,756) 633,282 ======= ======= ======= ======= =======
a) Purchases of investments above include deferred consideration of ‚£171,381 and capitalised loan interest arrears totalling ‚£241,280 settled other than by direct cash payment. Deducting this amount from purchases above leaves acquisitions of ‚£1,005,252 as shown in the cash flow statement.
b) Sale proceeds above include ‚£171,381 received in the form of aloan stock instrument, which has been included as an unrealised gain for theperiod within the unrealised capital reserve in note 11. Deducting this sumfrom sale proceeds above leaves disposal proceeds of ‚£428,655 as shown in thecash flow statement.
c) Realised losses in the period were ‚£53,625, as reported in the Income Statement. This figure is after adding transaction costs of ‚£74 incurred in the period to realised losses of ‚£53,551 as above.
10. Current asset investments at fair value
These comprise investments in 6 Dublin based OEIC money marketfunds managed by Royal Bank of Scotland, Blackrock (formerly Merrill Lynch),Goldman Sachs, Barclays Global Investors, Scottish Widows InvestmentManagement and Fidelity Investment Management. ‚£16,214,958 (31 July 2006:‚£1,528,223, 31 January 2007: ‚£563,685) of this sum is subject to same dayaccess, whilst ‚£134,322 (31 July 2006: ‚£421,303, 31 January 2007: ‚£130,841) issubject to 2 day access.11. Movement in reserves Called up Share Capital Unrealised share Premium Redemption capital Special capital Reserve Reserve reserve reserve ‚£ ‚£ ‚£ ‚£ ‚£ At 31 January 2007 83,994 - 870,765 150,383 16,248,945Shares issued 130,062 14,739,562 -Shares bought back (7,346) 7,346 (666,109)Profit for the period - - 686,833 -Realisation of previously unrealised appreciation - - (307,206) -Dividend - interim paid for year ended 31 January 2007 - - - - ------ ------ ------ ------ ------At 31 July 2007 206,710 14,739,562 878,111 530,010 15,582,836 Realised capital Revenue reserve reserve Total ‚£ ‚£ ‚£ At 31 January 2007 (7,735,927) 153,988 9,772,148Shares issued - - 14,869,624Shares bought back (666,109)Profit for the period (215,265) 240,367 711,935
Realisation of previously unrealised appreciation 307,206 - -Dividend - interim paid for year ended 31 January 2007 - (153,988) (153,988) ------ ------ ------At 31 July 2007 (7,643,986) 240,367 24,533,610 12. The financial information for the six months ended 31 July 2007and 31 July 2006 has not been audited. The information for the year ended 31January 2007 does not comprise full financial statements within the meaning ofSection 240 of the Companies Act 1985. The financial statements for the yearended 31 January 2007 have been filed with the Registrar of Companies. Theauditors have reported on these financial statements and that report wasunqualified and did not contain a statement under Section 237(2) of theCompanies Act 1985.
Copies of the Half-Yearly Report are being sent to all shareholders. Further copies are available from the Company's registered office.
Contact details for further enquiries:
Robert Brittain of Matrix-Securities Limited (the Company Secretary) on 020 7925 3300 or by e-mail on mig4@matrixgroup.co.uk.
Matrix Private Equity Partners LLP (the Investment Manager), on 020 7925 3300 or by e-mail on info@matrixpep.co.uk
Director's Initials ................................
MATRIX INCOME & GROWTH 4 VCT PLC