Mobeus I&g Regulatory News (MIX)

Mobeus Income & Growth VCT plc ("the Company") Half-Yearly results for the six months ended 30 June 2013 INVESTMENT OBJECTIVE Mobeus Income & Growth VCT plc ("the Company" or "MIG VCT"), is aVenture Capital Trust ("VCT") listed on the London Stock Exchange. Itsinvestment portfolio, which invests primarily in established and profitableunquoted companies, is managed by Mobeus Equity Partners LLP ("Mobeus" or "theManager"). The Company's objective 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. FINANCIAL HIGHLIGHTS - Net asset value (NAV) total return per share for the period was 9.00%. - A total of £5.12 million was invested in the period, including the MBO of Gro-Group and two acquisitions by two existing portfolio companies, ATG Media and Fullfield (Motorclean). - An interim dividend of 4.00 pence per share has been declared. This payment will bring total cumulative dividends paid to Shareholders since launch to 44.05 pence per share. - Strong liquidity has been enhanced by a successful fundraising in 2013 from which new funds of £8.28 million were raised by the Company. PERFORMANCE SUMMARY The net asset value per share of the Company at 30 June 2013 was 100.70 pence The table below shows the recent past performance of the original funds raisedin 2004/05. Performance data for all fundraising rounds and for former MatrixIncome & Growth 3 VCT Shareholders is shown in the Performance Data table at theend of this announcement. Net NAV Share Cumulative Cumulative total return assets per price dividends per share (mid- paid per share to Shareholders market share since launch 2 price)1 (NAV basis) (Share price basis) (£m) (p) (p) (p) (p) (p)As at 30 June 2013 54.00 100.70 86.00 40.05 140.75 126.05As at 31 December 43.29 94.22 80.50 38.05 132.27 118.552012As at 30 June 2012 42.08 91.08 80.50 33.05 124.13 113.55 1 Source: London Stock Exchange.2 Total return per share comprises either the NAV per share (NAV basis) or the mid-market price per share (share price basis), plus cumulative dividends paid per share. Interim dividend An interim dividend of 4.00 pence per share, comprising 2.00 pencefrom income and 2.00 pence from capital, has been declared by the Directorsand will be paid on 18 September 2013 to Shareholders on the Register on 23August 2013. This payment will bring cumulative dividends paid to date to44.05 pence per share. Investment portfolio The VCT's investment portfolio was valued at£37.33 million at 30 June 2013 having achieved a gain of £3.5 million since 31December 2012. This portfolio value includes £3 million invested inacquisition vehicles at the period-end. Liquidity The Company holds approximately £16.56 million in cash, cash deposits and readilyrealisable assets that are available for further investments, dividends and sharebuybacks. CHAIRMAN'S STATEMENT This Half-Yearly Report covers the six month period ended 30 June2013. Net asset value (NAV) and total return to Shareholders The net asset value per share as at 30 June 2013 was 100.70 pencecompared with the previously reported NAV per share of 94.22 pence as at 31December 2012. The Company's total return for the half-year (NAV basis) was 9.00%(2012: 1.82%), after allowing for the final dividend of 2.00 pence per sharein respect of the year ended 31 December 2012 which was paid in this period.The cumulative NAV total return per share (being the closing net asset valueplus total dividends paid to date since launch) rose during the six monthperiod from 132.27 pence to 140.75 pence. This encouraging rise in NAV returnover the period was largely due to unrealised gains across the portfolionotably increases in the valuations of Tessella, Westway, Fullfield (tradingas Motorclean) and ATG Media. In addition, the sale of Newquay Helicopters'(formerly British International) principal subsidiary to Patriot Aerospace inMay resulted in a realised gain of £461k on repayment of loan stocks andpreviously unaccrued interest payments of £748k. To assist Shareholders who originally invested in any of theindividual fundraisings (including Matrix Income & Growth 3 VCT plc "MIG 3VCT") to monitor the performance of their investment (including dividendpayments) on a consistent basis, a table showing the returns to Shareholdersfrom each allotment has been included at the end of this announcement. Investment portfolio Overall the investment portfolio recorded a gain of £3.50 million(10.03% of the opening value) during the first half of the year and was valuedat £37.33 million at the period-end. A total of £5.12 million (including funds from the acquisitionvehicles Almsworthy, Fosse and Peddars) was invested during the period.Firstly, in February 2013, the VCT invested a further £1.34 million (using theacquisition vehicle Almsworthy) to finance Motorclean's acquisition of ForwardValeting Services in a deal that created the UK's largest provider of carvaleting services. Secondly, a new investment totalling £1.86 million(including £1 million from the Company's existing investment in theacquisition vehicle Fosse Management) was made in March 2013 to support theMBO of Gro-Group. Based in Devon, Gro-Group is the market leader for babysleep time products in the UK and Australia. Finally, in April 2013, the VCTinvested £1.64 million (via the acquisition vehicle Peddars Management) toenable ATG to acquire Bidspotter, a US company providing live bidding andauction software to industrial and commercial auctioneers. Shortly after the period-end, in July 2013, the VCT completed afurther new investment of £2.05 million (including the VCT's existinginvestment of £1 million in the acquisition vehicle, Madacombe Trading) tosupport the MBO of Veritek Global Limited, a Europe-wide provider ofinstallation, maintenance and support services for blue-chip owners ofprinting equipment. Net cash proceeds received during the period from portfoliorealisations amounted to £3.14 million. This figure included the partial saleof Faversham House, and loan stock repayments received from NewquayHelicopters, Fullfield (Motorclean), DiGiCo, Tessella and Westway. Details of all these transactions and a summary of the performancehighlights in the portfolio can be found in the Manager's Review below. Revenue account and dividends The net revenue return for the period rose sharply from £499k at atthis stage last year to £1,216k for this half-year. This was mainly becauseincome increased by £949k, primarily due to an exceptional level of loaninterest of £752k from Newquay Helicopters which repaid its two principal loanstocks, together with premiums, interest and arrears. It was the maincontributor to a total rise in loan stock interest of £861k for the half year,which also reflected the impact of interest from new loan investmentsoutweighing that foregone from loan repayments. Dividend income rose by £46kto £156k, principally due to dividends received from Machineworks and FocusPharmaceuticals. Income from cash balances rose by a net amount of £42k, asmore cash was retained in bank deposits which paid higher rates of interestthan those available from money market funds. Running costs rose slightly as fund management fees charged torevenue rose by £15k due to rising net assets. Other costs also rose by £10k,due to a rise in directors', professional and registrar's fees countered by areduction in trail commission costs. The rise in income has caused a consequent rise in the taxationcharge attributable to the revenue return, from £86k to £293k. Income fromloan stock is taxable and could mean the Company has a corporation taxliability at the year-end. The Directors have declared an interim dividend of 4.00 pence pershare (comprising 2.00 pence from income and 2.00 pence from capital) whichwill be paid on 18 September 2013 to Shareholders on the Register on 23 August2013. This payment will bring cumulative dividends paid per share to 44.05pence. Cancellation of the share premium account Further to a special resolution passed on 22 February 2013, theCompany applied to the High Court to cancel the amount standing to the creditof its share premium account on 25 January 2013 of £28.87 million. Thecancellation of the share premium account was confirmed by an Order of theCourt on 13 March 2013. Linked VCT fundraising The Company participated with Mobeus Income & Growth 4 VCT plc andThe Income & Growth VCT plc in a successful linked fundraising that closed on30 April 2013. A total of £24.85 million (in excess of the original target of£21 million) was subscribed for under the Offer across the three VCTs, ofwhich £8.28 million (£8.09 million after costs) was raised by the Company.Periodic fundraisings by the Company enable it to maintain a consistent levelof new cash to meet its running costs, fund dividend payments and support theCompany's share buy-back policy which helps to provide liquidity in theCompany's shares in what is normally an extremely illiquid market. The newfunds also mean that the Company's fixed running costs are spread over alarger asset base. Liquidity The Company has diversified its portfolio of cash investmentsduring the year as it is no longer adding to its investment in money marketfunds in response to a change in VCT regulations. It continues to hold £1.63million in a selection of money market funds with AAA credit ratings at 30June 2013. The balance of cash and current asset investments of £14.93 millionis held in current and deposit accounts. Given that risks still remain withinthe banking sector, these accounts are spread across a number of well-knownfinancial institutions and across a range of maturities. In addition, the £3million invested in the Operating Partner acquisition vehicles is also held inmoney market funds (reduced to £2 million following the use of Madacombe tosupport the MBO of Veritek Global after the period-end). The Company iscurrently well-positioned both to take advantage of favourable investmentopportunities as they arise and, if required, to make investments to supportthe existing portfolio. Investment in qualifying holdings The Company is required to meet the target set by HM Revenue &Customs ("HMRC") of investing 70% of the funds raised in qualifying unquotedand AIM quoted companies. The Company exceeded this limit (based on VCT costas defined in tax legislation which differs from the actual cost given in theInvestment Portfolio Summary below) throughout the period. The balance of theportfolio was invested in non-qualifying investments and cash. Enhanced buyback facility (EBF) The VCT offered an EBF to Shareholders in January 2013 and thistook place in April 2013. A total of 9.87 million shares were bought-back inrespect of the two tax years 2012/13 and 2013/14 (representing 21.49% of theshares in issue at the date of launch of the EBF) and 9.57 million new shareswere allotted by the VCT under the EBF. The costs of the EBF were solely borneby the Shareholders who participated in it. Share buy-backs During the six months ended 30 June 2013, the Company bought back afurther 0.71 million of its own shares, representing 1.54% of the issued sharecapital at the beginning of the period, at an average price, including costs,of 83.36 pence per share. All of the shares bought back in the period were subsequentlycancelled by the Company. Continuing Shareholders benefit from the difference between the NAVper share and the price per share at which the shares are bought back andcancelled. Selling your shares The Company's shares are listed on the London Stock Exchange and assuch they can be sold in the same way as any other quoted company through astockbroker. However, to ensure that you obtain the best price, if you wish tosell your shares you are strongly advised to contact the Company'sstockbroker, Panmure Gordon, by telephoning 7886 2716/7 before agreeing aprice with your stockbroker. Shareholders are also advised to discuss their individual taxposition with their financial advisor before deciding to sell their shares. Auditor With effect from 28 March 2013, the Company's auditor, PKF (UK) LLPmerged with BDO LLP to become part of BDO LLP ("BDO"). The Board hassubsequently appointed BDO as the Company's auditor to fill the vacancyarising as a result of the merger. The Company wrote to Shareholders on 20June 2013 informing them of this change. Industry developments The European Union's Alternative Investment Fund Managers Directive("AIFMD" ) came into force in the UK on 22 July 2013 with the effect thatinvestment companies will be subject to further regulatory oversight. Underthe Directive, the Company will be required to appoint an AIFM by 22 July2014. The Board is currently considering its options. The Board will updateShareholders on this matter in the Annual Report for the year ending 31December 2013. Communicating with Shareholders The Company maintains a programme of regular communication withShareholders through twice-yearly VCT newsletters produced by the Manager, itshalf-yearly and annual reports and the Manager's website: www.mobeusequity.co.uk The website is regularly updated with information on yourinvestments including case studies of portfolio companies and profiles of theinvestment team. The Company has its own dedicated section on the websitewhich includes performance tables, details of dividends paid and copies ofpast reports to Shareholders. The Company has adopted electronic communications which enablesShareholders to choose between electing to receive communications by email oras hard copies through the post. Many Shareholders who have not specificallychosen either of these options receive a letter notifying them where to accessthe reports on the website. We believe that this provides a more efficient wayof communicating with Shareholders as well as making savings to the Company onpostage and printing costs. If you have not already done so, you are encouraged to registerwith Computershare's Investor Centre: www-uk.computershare.com/Investor which provides the most efficient way of checking information onyour accounts and making changes to your instructions. Once you haveregistered you can use the Centre to check your shareholding and dividendpayments and amend your address or bank details. You can also use the site tomanage your options for receiving communications from the Company includingsubmitting proxy votes for general meetings. The Board welcomes the opportunity to meet Shareholders at theCompany's General Meetings during which representatives of the Manager arepresent to discuss the progress of the portfolio. The next AGM of the Companywill be held in May 2014. Shareholder workshop - 21 January 2014 The Manager holds an annual VCT workshop forShareholders in Central London. Each workshop includes a presentation on theMobeus VCTs' investment activity and performance. The Board and the Managerwelcomes feedback from Shareholders and we have been pleased to receivepositive comments from those attending in previous years. The Manager hastaken many of the comments received on board as part of a process ofcontinuous improvement. The next workshop will be held on Tuesday, 21 January2014 at the Royal College of Surgeons in central London and Shareholders willreceive an invitation to this event nearer to the date. Industry awards for the Manager I reported in the Annual Report that the Manager had been awardedVCT house of the year in 2012 at both the Investor Allstars and unquote"British Private Equity Awards. As a further accolade, the Board was pleased tonote that Mobeus was recently voted Private Equity House of the Year at theInsider South West Dealmakers Awards 2013 by the corporate finance community. Outlook Recent data on the UK economy appears to indicate that a recoveryfrom the financial crisis is underway, and business surveys reveal a cautiousoptimism in the corporate sector. The Manager continues to report that it is being presented with andis evaluating a high level of good quality investment opportunities. TheManager will continue to adopt a cautious approach to selecting well-runprofitable companies operating in niche markets and specifically structuringthe terms of deals so as to minimise the downside risk to Shareholders. Webelieve that this strategy underpins the quality of the investment portfoliocurrently held within the VCT. Finally, I would like to thank all of our Shareholders for theircontinuing support. Keith Niven Chairman Responsibility Statement of the Directors in respect of theHalf-Yearly financial report In accordance with Disclosure and Transparency Rule (DTR) 4.2.10,Keith Niven (Chairman), Bridget Guérin (Chairman of the Nominations &Remuneration Committee) and Tom Sooke (Chairman of the Audit Committee), theDirectors of the Company, confirm that to the best of their knowledge: (a) the condensed set of financial statements, which has been prepared in accordance with the statement, "Half-Yearly Reports", issued by the Accounting Standards Board, gives a true and fair view of the assets, liabilities, financial position and profit of the Company, as required by DTR 4.2.4; (b) the Half-Yearly Management Report, included within the Chairman's Statement, Investment Policy, Manager's Review and Investment Portfolio Summary includes a fair review of the information required by DTR 4.2.7 being an indication of the important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; (c) a description of the principal risks and uncertainties facing the Company for the remaining six months is set out below, in accordance with DTR 4.2.7; and (d) there are no related party transactions that are required to be disclosed in accordance with DTR 4.2.8. On behalf of the Board Keith Niven Chairman Principal risks and uncertainties In accordance with DTR 4.2.7, the Board confirms that the principalrisks and uncertainties facing the Company have not changed materially sincethe publication of the Annual Report and Accounts for the year ended 31December 2012. The Board acknowledges that there is regulatory risk andcontinues to manage the Company's affairs in such a manner as to comply withsection 274 of the Income Tax Act 2007. The principal risks faced by theCompany are: - economic risk;- loss of approval as a Venture Capital Trust;- investment and strategic risk;- regulatory risk;- financial and operating risk;- market risk;- asset liquidity risk;- market liquidity risk; A more detailed explanation of these risks can be found in theDirectors' Report on pages 16 - 17 and in Note 19 on pages 45 - 52 of theAnnual Report and Accounts for the year ended 31 December 2012, copies ofwhich are available on the Manager's website, www.mobeusequity.co.uk or bygoing direct to : www.migvct.co.uk. Going Concern The Board has assessed the Company's operation as a going concern.The Company's business activities, together with the factors likely to affectits future development, performance and position are set out in the HalfYearly Management Report which is included within the Chairman's Statement,Investment Policy, Manager's Review and Investment Portfolio Summary. TheDirectors have satisfied themselves that the Company continues to maintain asignificant cash position, the majority of companies in the portfolio continueto trade profitably and the portfolio taken as a whole remains resilient andwell-diversified. The major cash outflows of the Company (namely investments,buy-backs and dividends) are within the Company's control. The Board'sassessment of liquidity risk and details of the Company's policies formanaging its capital and financial risks are shown in Note 19 on pages 45 - 52of the Annual Report and Accounts for the year ended 31 December 2012.Accordingly, the Directors continue to adopt the going concern basis ofaccounting in preparing the half-yearly report and annual financialstatements. Cautionary Statement This report may contain forward looking statements with regards tothe financial condition and results of the Company, which are made in thelight of current economic and business circumstances. Nothing in this reportshould be construed as a profit forecast. INVESTMENT POLICY The VCT's policy is to invest primarily in a diverse portfolio ofUK unquoted companies. Investments are usually structured as part loan andpart equity in order to receive regular income and to generate capital gainsfrom realisations. 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 own.Investments are primarily made in companies that are established andprofitable. Uninvested funds are held in cash and lower risk money marketfunds. VCT regulation The investment policy is designed to ensure that the VCT continuesto qualify and is approved as a VCT by HM Revenue & Customs (HMRC). Amongstother conditions, the VCT may not invest more than 15% of its investments in asingle company or group of companies and must have at least 70% by value ofits investments throughout the period in shares or securities comprised of VCTqualifying holdings, of which a minimum overall of 30% by value (70% for fundsraised on or after 6 April 2011) must be in ordinary shares which carry nopreferential rights (save as may be permitted under VCT rules). The VCT caninvest less than 30% by value (70% for funds raised on or after 6 April 2011)of an investment in a specific company in ordinary shares. It must, however,have at least 10% by value of its total investments in each VCT qualifyingcompany in ordinary shares which carry no preferential rights (save as may bepermitted under VCT rules). 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 VCT holds its liquid funds in a portfolio of readily realisableinterest-bearing investments and deposits. The investment portfolio ofqualifying investments has been built up over time with the aim of investingand maintaining around 80% of net funds raised in qualifying investments. 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 invested in loan stock. Co-investment The VCT aims to invest in larger, more mature, unquoted companiesthrough investing alongside three other VCTs advised by Mobeus with similarinvestment policies. This enables the VCT to participate in combinedinvestments by the Manager of up to £5 million. Borrowing The VCT's articles permit borrowings of amounts up to 10% of theadjusted capital and reserves (as defined therein). The VCT has never borrowedand the Board has no current plans to undertake any borrowing. 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 the Managerand are then subject to formal approval by the Directors. MANAGER'S REVIEW Overview The six months to 30 June 2013 have been a period of strongperformance for many of the companies in the portfolio. We believe that thisis a result of focussing on selecting well-run, profitable companies operatingin niche markets and structuring deals to minimise downside risk toShareholders. Portfolio review At 30 June 2013 the portfolio comprised 29 investments with a costof £32.39 million valued at £37.33 million. Overall, the portfolio hasperformed well, achieving a gain of £3.50 million over the last six months. ATG, Fullfield, Tessella and Westway have contributed strongly tothis increase in the overall value of the portfolio over the six month period.All these companies are trading well; in the cases of ATG and Fullfield, thevaluations have benefitted from attractively-priced acquisitions made duringthe period and we are confident that these acquisitions will help in drivingvalues still further. Westway has recovered well from a dip in trading in theprior year. Tessella, having made an encouraging start since the MBO in July2012, has now been valued on an earnings basis for the first time which hasresulted in a significant uplift from cost. Blaze Signs has continued its impressive recovery having benefittedfrom some high profile contract gains, including work on the Olympics site in2012. DiGiCo Global has continued to grow revenues, and has recently launcheda new range of products. Focus has begun to benefit from the high level of newproduct development expenditure over the past year. The valuation of EMaC hasincreased further above cost, reflecting this company's pleasing performancesince investment. Against these positive performances, CB Imports, whiletrading satisfactorily, is performing slightly below expectations. Thebuilding and construction sector remains weak, causing Youngman and PXP tofind it difficult to establish a solid path to recovery, although thevaluation of Plastic Surgeon is beginning to reflect signs of a recovery.RDL's performance remains disappointing. Taken as a whole, the portfolio is performing well and we areencouraged by the strong and resilient performances of those companies thatare outperforming expectations. Investment activity In March 2013, the Company completed a new investment of £1.86million, to support the MBO of Gro-Group Holdings Limited. The amount investedincluded £1 million from the Company's existing investment in the acquisitionvehicle Fosse Management. Devon based Gro-Group created the original, and nowinternationally renowned, Gro-bag which has become the number one baby sleepbag brand in the UK and Australia. Market penetration of the product hasincreased from zero to around 90% since the company was founded in 2000 andturnover has grown to £12 million. Shortly after the period-end in July 2013, the VCT completed afurther new investment of £2.05 million (including the VCT's existinginvestment of £1 million in the seed company, Madacombe Trading) to supportthe MBO of Veritek Global Limited, a Europe-wide provider of installation,maintenance and support services for blue-chip owners of printing equipment. As mentioned earlier, the VCT has funded strategic acquisitions byFullfield and ATG Media in the period. Both transactions have improved thetrading position of these companies and offer good potential for furthergrowth. In February 2013, the VCT provided an additional £1.34 million, viathe acquisition vehicle Almsworthy Trading, to finance Fullfield's (trading asMotorclean) acquisition of Forward Valeting Services. The transaction createdthe UK's largest provider of car valeting services and brought the VCT's totalinvestment in this company to £2.58 million. In April 2013, a further £1.64million was invested into ATG Media, using the VCT's existing investment of £1million in the acquisition vehicle Peddars Management, to enable it to acquireBidspotter Inc., a US business engaged in providing live bidding and auctionsoftware to industrial and commercial liquidation auctioneers, bringing theVCT's total investment in this company to £3.12 million. These transactions were specifically structured to enhance thevalue of existing successful investments. We are conscious that a materiallylower investment risk is likely to be involved when we back what we know aresuccessful management teams within the portfolio, compared to a firstinvestment into a new portfolio company. A further loan of £293k was advanced to support the working capitalrequirements of Newquay Helicopters (formerly British International). This wasused to provide working capital pending the disposal of the company's majortrading subsidiary, which has now occurred. The company has now repaid theprincipal and premium of the first two loan stocks, together with all interestarrears, for total cash proceeds of £3.01 million. The capital proceeds of£2.26 million compare with an investment cost of £1.8 million. This is apleasing outcome and there is the prospect of further returns of capital asthe company realises its remaining assets and activities. In March 2013, the VCT sold part of its loan stock and its entireequity investment in Faversham House for net proceeds of £207k. Faversham'sprogress has fallen short of expectations and we took the opportunity to agreewith management a phased realisation of our holding. The Company continues tohold a loan stock investment in this company, valued at 30 June 2013 at £157k.The total of these figures, £364k, shows a loss when compared with the totaloriginal cost of £527k. However, this partial disposal was in excess of thevaluation of Faversham House at the beginning of the period and hascontributed to the increase in the portfolio's value at the period-end. The Company has continued to benefit from the profitability andstrong cash position of a number of investee companies and has receivedpartial loan stock repayments totalling £674k in the six months covered bythis report, from DiGiCo Global, Tessella, Fullfield and Westway in additionto the partial realisations of Newquay Helicopters and Faversham Housementioned above. Outlook The outlook for the UK economy appears to have improved recently,with a greater sense of optimism starting to assert itself. The overallenvironment still holds uncertainties, but we are experiencing many more goodquality opportunities for new investment. We are much more confident ofdeploying higher levels of capital into new investments in 2013 than inprevious years. The majority of our existing portfolio companies shouldcontinue to make good progress. We are encouraged by the portfolio's performance over the sixmonths. Combined with a higher level of investment in new opportunities, weare optimistic that performance should be able to be sustained and that theportfolio will yield good returns over the medium term. Mobeus Equity Partners LLP INVESTMENT PORTFOLIO SUMMARYas at 30 June 2013 Market sector Date of Total Valuation % investment book value of cost* net assetsQualifying investments £'000 £'000 AiM quoted investmentsOmega Diagnostics Group plc Health care, Dec-10 305 419 0.8% equipment and servicesIn-vitro diagnostics for foodintolerance, autoimmunediseases and infectiousdiseases -------- -------- --------Total AiM quoted qualifying investments 305 419 0.8% -------- -------- -------- Unquoted investments ATG Media Holdings Limited Media Oct-08 3,122 6,076 11.3%Publisher and on-line auctionplatform operator Fullfield Limited (Motorclean) Support Jul-11 2,577 3,229 6.0%Provider of vehicle cleaning servicesand valet services Ingleby (1879) Limited (EMaC) Support Nov-11 1,762 2,452 4.5%Service plans for the motor trade services CB Imports Group Limited (Country Baskets) General Dec-09 2,000 2,319 4.3%Importer and distributor of retailersartificial flowers and floralsundries Tessella Holdings Limited Support Jul-12 1,607 2,148 4.0%Technology consultancy services Gro-Group Holdings Limited General Mar-13 1,858 1,858 3.4%Baby sleep products retailers Blaze Signs Holdings Limited Support Apr-06 727 1,774 3.3%Manufacturer and installer of servicessigns Focus Pharma Holdings Pharmaceuticals Oct-07 1,043 1,706 3.2%LimitedLicensor and distributor ofgeneric pharmaceuticals Machineworks Software Software and Apr-06 223 1,304 2.4%Limited computerSoftware for CAM and servicesmachine tool vendors Westway Services Holdings Support Jun-09 513 1,201 2.2%(2010) Limited servicesInstallation, maintenance andservicing of air-conditioningsystems EOTH Limited (Rab and Lowe General Oct-11 1,000 1,080 2.0%Alpine) retailersBranded outdoor equipment and outdoor clothing Ackling Management Limited Acquisition Apr-12 1,000 1,000 1.9%Company preparing to trade in vehiclethe food manufacturing,distribution and brandmanagement sectors Culbone Trading Limited Acquisition Mar-12 1,000 1,000 1.9%Company preparing to trade in vehiclethe outsourced sector Madacombe Trading Limited Acquisition Mar-12 1,000 1,000 1.9%Acquisition vehicle used to vehiclecomplete the MBO of VeritekGlobal following the period-end RDL Corporation Limited Support Oct-10 1,558 967 1.8% servicesRecruitment consultants forthe pharmaceutical, businessintelligence and IT industries ASL Technology Holdings Support Dec-10 1,913 814 1.5%Limited servicesSupplier of printer andphotocopier services Plastic Surgeon Holdings Support Apr-08 478 709 1.3%Limited, The servicesSupplier of snagging andfinishing services to thedomestic and commercialproperty markets Youngman Group Limited Support Oct-05 1,000 701 1.3% servicesManufacturer of ladders andaccess towers Vectair Holdings Limited Support Jan-06 139 481 0.9% servicesDesigner and distributor ofwashroom products Newquay Helicopters (2013) Support Jun-06 226 396 0.7%Limited services(formerly British InternationalHoldings Limited)Supplier of helicopter services Racoon International Holdings Personal Dec-06 1,213 384 0.7%Limited goodsSupplier of hair extensions,hair care products and training Lightworks Software Limited Software and Apr-06 223 255 0.5%Software for CAD vendors computer services Faversham House Holdings Dec-10 157 157 0.3%Limited MediaPublisher, exhibition organiserand operator of websites Support Dec-07 1,299 117 0.2%Monsal Holdings Limited servicesSupplier of engineeringservices to the water and waste sectors PXP Holdings Limited Construction Dec-06 1,278 114 0.2%(Pinewood Structures) and buildingDesigner, manufacturer, materialssupplier and installer of timber-frames for buildings Legion Group plc Support Aug-05 150 - 0.0%- in administration servicesProvider of manned guarding,mobile patrolling, and alarmresponse services Watchgate Limited Holding Nov-11 1 1 - 0.0% companyHolding company -------- -------- --------Total unquoted qualifyinginvestments 29,067 33,242 61.7% -------- -------- --------Total qualifying investments 29,372 33,661 62.5% -------- -------- -------- Non-qualifying investments DiGiCo Global Limited Technology, Dec-11 2,429 3,082 5.7%Designer and manufacturer of hardware andaudio mixing desks equipment General Oct-11 298 298 0.6%EOTH Limited retailers Support Mar-13 293 293 0.5%Newquay Helicopters (2013) Limited services -------- -------- --------Total portfolio investments 32,392 37,334 69.3% -------- -------- -------- Cash at Natwest Bank plc 6,928 6,928 12.8% Lloyds TSB Bank plc 2,000 2,000 3.7%Nationwide Building Society 2,000 2,000 3.7%HSBC Bank plc 2,000 2,000 3.7%The Co-operative Bank 2,000 2,000 3.7%GS Funds plc (Goldman Sachs) 429 429 0.7%Global Treasury Funds plc (Royal Bank of Scotland) 387 387 0.7%Insight Liquidity Funds plc (HBOS) 271 271 0.5%Institutional Cash Series plc (BlackRock) 256 256 0.5%SWIP Global Liquidity Fund plc (Scottish Widows) 176 176 0.3%Fidelity Institutional Cash Fund plc 114 114 0.2% Other assets 500 500 0.9 %Current liabilities (390) (390) (0.7)% -------- -------- --------Net assets 49,063 54,005 100.0% -------- -------- -------- * Book cost includes the fair value of the qualifying investments acquired from Matrix Income & Growth 3 VCT plc on 20 May 2010, still held at 30 June 2012, of £3,999,453. UNAUDITED INCOME STATEMENTfor the six months ended 30 June 2013 Six months ended 30 June 2013 Six months ended 30 June 2012 (unaudited) (unaudited) Notes Revenue Capital Total Revenue Capital Total £ £ £ £ £ £Unrealised gainson investments 9 - 2,890,482 2,890,482 - 130,229 130,229 Net realisedgains on investments 9 - 605,461 605,461 - 294,571 294,571 Income 3 1,816,882 - 1,816,882 867,906 - 867,906 Investmentmanagement fees 4 (136,480) (409,440) (545,920) (121,744) (365,233) (486,977) Other expenses (170,922) - - (170,922) (160,731) - (160,731) ------ ------ ------ ------ ------ ------Profit on ordinaryactivities beforetaxation 1,509,480 3,086,503 4,595,983 585,431 59,567 644,998 Tax onprofit/(loss) onordinary activities 5 (293,043) 131,406 (161,637) (86,084) 86,084 - ------ ------ ------ ------ ------ ------ Profit attributableto equity shareholders 1,216,437 3,217,909 4,434,346 499,347 145,651 644,998 ------ ------ ------ ------ ------ ------ Basic and dilutedearnings per share 6 2.40p 6.35p 8.75p 1.12p 0.33p 1.45p Year ended 31 December 2012 (audited) Notes Revenue Capital Total £ £ £Unrealised gainson investments 9 - 3,488,447 3,488,447 Net realisedgains on investments 9 - 286,530 286,530 Income 3 1,797,530 - 1,797,530 Investmentmanagementfees 4 (243,545) (730,634) (974,179) Other expenses (263,893) - (263,893) ------ ------ ------Profit on ordinaryactivities beforetaxation 1,290,092 3,044,343 4,334,435 Tax onprofit/(loss) onordinary activities 5 (192,913) 192,913 - ------ ------ ------ Profit attributableto equityshareholders 1,097,179 3,237,256 4,334,435 ------ ------ ------ Basic and dilutedearnings pershare 6 2.42p 7.13p 9.55p The total column of this statement is the Profit and Loss accountof the Company. All revenue and capital items in the above statement derive fromcontinuing operations. There were no other recognised gains or losses in the period. Other than revaluation movements arising on investments held atfair value through profit and loss, there were no differencesbetween the profit/(loss) as stated above and at historical cost. UNAUDITED BALANCE SHEETas at 30 June 2013 30 June 2013 30 June 2012 31 December 2012 (unaudited) (unaudited) (audited) Notes £ £ £ Non-current assetsInvestments at fair value 1c, 9 37,334,097 32,073,317 34,857,675 Current assetsDebtors and prepayments 500,094 227,075 215,525Current investments 10 9,632,916 5,134,243 3,632,668Cash at bank 6,927,943 4,913,694 4,713,008 ------ ------ ------ 17,060,953 10,275,012 8,561,201 Creditors: amountsfalling due within one year (389,830) (271,087) (130,353) ------ ------ ------Net current assets 16,671,123 10,003,925 8,430,848 ------ ------ ------Net assets 54,005,220 42,077,242 43,288,523 ------ ------ ------ Capital and reserves 11Called up share capital 536,273 461,992 459,465Capital redemption reserve 181,372 69,067 75,583Share Premium account 15,361,612 26,661,822 27,018,629Revaluation reserve 7,903,451 1,876,753 4,886,524Special distributable reserve 27,383,210 9,761,751 8,989,989Profit and loss account 2,639,302 3,245,857 1,858,333 ------ ------ ------ 54,005,220 42,077,242 43,288,523 ------ ------ ------ Net asset value per ordinary share 8 100.70p 91.08p 94.22p UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDSfor the six months ended 30 June 2013 Six months ended Six months ended Year ended 30 June 2013 30 June 2012 31 December 2012 (unaudited) (unaudited) (audited) Notes £ £ £ Opening Shareholders' funds 43,288,523 40,726,175 40,726,175Purchase of own shares (10,032,939) (1,075,757) (1,588,947)Shares issued 17,393,269 4,676,532 5,037,328Profit for the period 4,434,346 644,998 4,334,435Dividends paid in period 7 (1,077,979) (2,894,706) (5,220,468) ------ ------ ------Closing Shareholders' funds 54,005,220 42,077,242 43,288,523 ------ ------ ------ UNAUDITED SUMMARISED CASH FLOW STATEMENTfor the six months ended 30 June 2012 Six months ended Six months ended Year ended 30 June 2013 30 June 2012 31 December 2012 (unaudited) (unaudited) (audited) £ £ £ Operating activitiesInvestment income received 1,700,362 969,894 1,880,902Other income - - 11,759Investment management fees paid (545,920) (486,977) (974,179)Other cash payments (131,504) (127,265) (336,669) ------ ------ ------Net cash inflow from operatingactivities 1,022,938 355,652 581,813 Investing activitiesAcquisitions of investments (2,123,350) (7,114,286) (7,793,526)Disposals of investments 3,142,871 2,884,559 4,129,618 ------ ------ ------Net cash inflow/(outflow) frominvesting activities 1,019,521 (4,229,727) (3,663,908) DividendsEquity dividends paid (1,077,979) (2,894,706) (5,220,468) ------ ------ ------Cash inflow/(outflow) before financingand liquid resource management 964,480 (6,768,781) (8,302,563) Management of liquid resources(Increase)/decrease in currentinvestments (6,000,248) 5,989,438 7,491,013 FinancingShares issued as part of JointFundraising offer for subscription 7,922,677 4,676,532 5,037,328 Shares issued as part of the EnhancedBuyback Facility 9,300,734 - - Shares bought back as part ofEnhanced Buyback Facility (includingexpenses) (9,412,459) - - Share capital bought back (560,249) (1,068,577) (1,597,852) ------ ------ ------Net inflow from financing activities 7,250,703 3,607,955 3,439,476 ------ ------ ------Increase in cash for the period 2,214,935 2,828,612 2,627,926 ------ ------ ------ Reconciliation of profit/(loss) on ordinary activities before taxation to net cash inflow from operating activitiesfor the six months ended 30 June 2013 Six months ended Six months ended Year ended 30 June 2013 30 June 2012 31 December 2012 (unaudited) (unaudited) (audited) £ £ £Profit/(loss) on ordinary activities before taxation 4,595,983 644,998 4,334,435Net unrealised gains on investments (2,890,482) (130,229) (286,530)Net gains on realisations of investments (605,461) (294,571) (3,488,447)Decrease/(increase) in debtors (114,710) 102,584 114,134Increase/(Decrease) in creditors 37,608 32,870 (91,779) ------ ------ ------Net cash inflow from operating activities 1,022,938 355,652 581,813 ------ ------ ------ The notes below form part of these half-yearly financial statements. 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 results cover the six months to 30 June 2013 and have been prepared under UK Generally Accepted Accounting Practice (UK GAAP), consistent with the accounting policies set out in the statutory accounts for the year ended 31 December 2012 and the 2009 Statement of Recommended Practice, `Financial Statements of Investment Trust Companies and Venture Capital Trusts' ('the SORP') issued by the Association of Investment Companies. The financial statements are prepared under the historical cost convention except for the measurement of certain investments at fair value. The Half-Yearly Report has not been audited, nor has it been reviewed by the auditor pursuant to the Auditing Practices Board (APB)'s guidance on Review of Interim Financial Information. b) Presentation of the Income Statement In order to better reflect the activities of a VCT and in accordance with the SORP, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement. The revenue column of profit attributable to equity shareholders is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Section 274 Income Tax Act 2007. c) Investments Investments are accounted for on a trade date basis. All investments held by the Company are classified as "fair value through profit and loss", in accordance with the International Private Equity and Venture Capital Valuation ("IPEVCV") guidelines, as updated in September 2009. This classification is followed as the Company's business is to invest in financial assets with a view to profiting from their total return 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 market quoted bid prices at the close of business on the balance sheet date. Purchases and sales of quoted investments are recognised on the trade date where a contract of sale exists whose terms require delivery within a time frame determined by the relevant market. Purchases and sales of unlisted investments are recognised when the contract for acquisition or sale becomes unconditional. Unquoted investments are stated at fair value by the Directors in accordance with the following rules, which are consistent with the IPEVCV guidelines: All investments are held at the price of a recent investment for an appropriate period where there is considered to have been no change in fair value. Where such a basis is no longer considered appropriate, the following factors will be considered: (i) Where a value is indicated by a material arms-length transaction by an independent third party in the shares of a company, this value will be used. (ii) In the absence of i), and depending upon both the subsequent trading performance and investment structure of an investee company, the valuation basis will usually move to either:- a) an earnings multiple basis. The shares may be valued by applying a suitable price-earnings ratio to that company's historic, current or forecast post-tax earnings before interest and amortisation (the ratio used being based on a comparable sector but the resulting value being adjusted to reflect points of difference identified by the Manager compared to the sector including, inter alia, a lack of marketability). or:- b) where a company's underperformance against plan indicates a diminution in the value of the investment, provision against cost is made, as appropriate. Where the value of an investment has fallen permanently below cost, the loss is treated as a permanent impairment and as a realised loss, even though the investment is still held. The Board assesses the portfolio for such investments and, after agreement with the Manager, will agree the values that represent the extent to which an investment loss has become realised. This is based upon an assessment of objective evidence of that investment's future prospects, to determine whether there is potential for the investment to recover in value. (iii) Premiums on loan stock investments are accrued at fair value when the Company receives the right to the premium and when considered recoverable. (iv) Where an earnings multiple or cost less impairment basis is not appropriate and overriding factors apply, discounted cash flow or net asset valuation bases may be applied. 2. Capital gains and losses on investments, whether nrealiz or nrealized, are dealt with in the profit and loss and revaluation reserves and movements in the period are shown in the Income Statement. 3. Income Six months ended Six months ended Year ended 30 June 2013 30 June 2012 31 December 2012 (unaudited) (unaudited) (audited) £ £ £ Dividends 156,094 110,061 206,304 Money-market funds 2,999 24,841 32,373 Loan stock interest 1,575,288 714,478 1,482,914 Bank deposits 82,501 18,526 64,180 Other Income - - 11,759 ------ ------ ------ Total Income 1,816,882 867,906 1,797,530 ------ ------ ------ Investment management expense4. In accordance with the policy statement published under "Management and Administration" in the Company's prospectus dated 9 July 2004, the Directors have charged 75% of the investment management expense to the capital reserve. 5. Taxation There is a tax charge for the period as the Company has taxable income in excess of deductible expenses, and has now utilised all available tax losses brought forward that had previously reduced taxable profit. Six months ended 30 June 2013 (unaudited) Revenue Capital Total £ £ £ a) Analysis of tax charge: UK Corporation tax on profits/(losses) for the period 293,043 (131,406) 161,637 ------ ------ ------ Total current tax charge/(credit) 293,043 (131,406) 161,637 ------ ------ ------ Corporation tax is based on a rate of 20% (2012: 20%) b) Profit on ordinary activities before tax 1,509,480 3,086,503 4,595,983 Profit on ordinary activities multiplied by small company rate of corporation tax in the UK of 20% (2012: 20%) 301,896 617,300 919,196 Effect of: UK dividends (31,219) - (31,219) Unrealised gains not allowable - (578,096) (578,096) Realised gains not taxable - (121,092) (121,092) Losses brought forward (27,152) - (27,152) Marginal rate 49,518 (49,518) - ------ ------ ------ Actual current tax charge 293,043 (131,406) 161,637 ------ ------ ------ Six months ended 30 June 2012 (unaudited) Revenue Capital Total £ £ £ a) Analysis of tax charge: UK Corporation tax on profits/(losses) for the period (86,084) 86,084 - ------ ------ ------ Total current tax charge/(credit) (86,084) 86,084 - ------ ------ ------ Corporation tax is based on a rate of 20% (2012: 20%) b) Profit on ordinary activities before tax 499,347 145,651 644,998 Profit on ordinary activities multiplied by small company rate of corporation tax in the UK of 20% (2012: 20%) 99,869 29,130 128,999 Effect of: UK dividends (22,012) - (22,012) Unrealised gains not allowable - (26,046) (26,046) Realised gains not taxable - (58,914) (58,914) Losses brought forward (22,027) - (22,027) Marginal rate 30,254 (30,254) - ------ ------ ------ Actual current tax charge 86,084 (86,084) - ------ ------ ------ Year ended 31 December 2012 (audited) Revenue Capital Total £ £ £ a) Analysis of tax charge: UK Corporation tax on profits/(losses) for the period (192,913) 192,913 - ------ ------ ------ Total current tax charge/(credit) (192,913) 192,913 - ------ ------ ------ Corporation tax is based on a rate of 20% (2012: 20%) b) Profit on ordinary activities before tax 1,290,092 3,044,343 4,334,435 Profit on ordinary activities multiplied by small company rate of corporation tax in the UK of 20% (2012: 20%) 258,018 608,869 866,887 Effect of: UK dividends (41,261) - (41,261) Unrealised gains not allowable - (697,689) (697,689) Realised gains not taxable - (57,306) (57,306) Losses brought forward (70,631) - (70,631) Marginal rate 46,787 (46,787) - ------ ------ ------ Actual current tax charge 192,913 (192,913) - ------ ------ ------ 6. Basic and diluted earnings and return per share The basic and diluted earnings, revenue return and capital return per share shown below for each period are respectively based on numerators i)-iii), each divided by the weighted average number of shares in issue in the period - see iv) below. Six months ended Six months ended Year ended 30 June 2013 30 June 2012 31 December 2012 (unaudited) (unaudited) (audited) £ £ £ i) Total earnings after taxation 4,434,346 644,998 4,334,435 Basic and diluted earnings per ordinary share 8.75p 1.45p 9.55p ii) Net revenue from ordinary activities after taxation 1,216,437 499,347 1,097,179 Basic and diluted earnings per ordinary share 2.40p 1.12p 2.42p iii) Net unrealised gains 2,890,482 130,229 3,488,447 Net realised capital gains 605,461 294,571 286,530 Capital expenses (net of taxation) (278,034) (279,149) (537,721) ------ ------ ------ 3,217,909 145,651 3,237,256 6.35p 0.33p 7.13p ------ ------ ------ iv) Weighted average number of shares in issue in the period 50,681,548 44,470,760 45,383,141 ------ ------ ------7. Dividends paid Six months ended Six months ended Year ended 30 June 2013 30 June 2012 31 December 2012 (unaudited) (unaudited) (audited) £ £ £ Final income dividend paid for year ended 31 December 2011 of 1.25p per share - 578,942 578,942 Final capital dividend paid for year ended 31 December 2011 of 5p per share - 2,315,764 2,315,765 Interim income dividend paid for year ended 31 December 2012 of 0.5p per share - - 232,576 Interim capital dividend paid for year ended 31 December 2012 of 4.5p per share - - 2,093,185 Final income dividend paid for year ended 31 December 2012 of 1.5p per share 808,484 - - Final capital dividend paid for year ended 31 December 2012 of 0.5p per share 269,495 - - ------ ------ ------ 1,077,979 2,894,706 5,220,468 ------ ------ ------ 8. Basic and diluted net asset value per ordinary share As at As at As at 30 June 2013 30 June 2012 31 December 2012 (unaudited) (unaudited) (audited) £ £ £ Net assets 54,005,220 42,077,242 43,288,523 Number of shares in issue 53,627,282 46,199,153 45,946,513 Basic and diluted net asset value per share (pence) 100.70p 91.08p 94.22p 9. Summary of non-current investments at fair value during the period Traded Unquoted Unquoted Loan Total on AiM equity preference stock shares shares £ £ £ £ £ Valuation at 1 January 2013 406,664 12,038,383 32,755 22,379,873 34,857,675 Purchases at cost - 1,909 - 2,121,441 2,123,350 Sales - proceeds - (21,862) - (3,131,067) (3,152,929) - realised gains - 21,862 - 593,657 615,519 Reclassification at valuation - (932,522) 837 931,685 - Unrealised gains 12,708 2,397,616 750 479,408 2,890,482 ------ ------ ------ ------ ------ Valuation at 30 June 2013 419,372 13,505,386 34,342 23,374,997 37,334,097 ------ ------ ------ ------ ------ Book cost at 30 June 2013 305,000 8,715,891 46,140 23,324,644 32,391,675 Permanent impairment in value of investments - (438,104) (1,829) (96,464) (536,397) Unrealised gains/(losses) at 30 June 2013 114,372 5,227,599 (9,969) 146,817 5,478,819 ------ ------ ------ ------ ------ Valuation at 30 June 2013 419,372 13,505,386 34,342 23,374,997 37,334,097 ------ ------ ------ ------ ------ Gains on investments Net realised (losses)/gains based on historical cost - (178,174) - 667,248 489,074 Less amounts recognised as unrealised losses in previous years - (200,036) - 73,591 (126,445) ------ ------ ------ ------ ------ Net realised gains based on carrying value at 31 December 2012 - 21,862 - 593,657 615,519 Net movement in unrealised gains in the period 12,708 2,397,616 750 479,408 2,890,482 ------ ------ ------ ------ ------ Gains on investments for the six months ended 30 June 2013 12,708 2,419,478 750 1,073,065 3,506,001 ------ ------ ------ ------ ------ Reconciliation to Cash Flow Statement Sales proceeds above of £3,152,929 differs to that shown in the Cash Flow Statement of £3,142,871 by transaction costs of £10,058. These transaction costs also account for the difference between realised gains above of £615,519 and that shown in the Income Statement of £605,461. Unrealised gains/(losses) at 30 June 2013 of £5,478,819 differ to that shown in the Revaluation Reserve of £7,903,451. The difference of £2,424,632 is loan stock received (net of a £163,390 repayment made during the period) as part of the disposal of DiGiCo Europe Limited in December 2011 which was not recognised as a realised gain in that year. 10. Current Investments at fair value These comprise investments of £1,632,916 in six OEIC money market funds (five Dublin based and one London based) subject to immediate access, and £8,000,000 in four bank deposit accounts or overnight money market funds, repayable within one year. 11. Capital and reserves Called Capital Share Revaluation Special Profit Total up share redemption premium reserve distributable and loss capital reserve reserve reserve account £ £ £ £ £ £ £ At 1 January 2013 459,465 75,583 27,018,629 4,886,524 8,989,989 1,858,333 43,288,523 Shares issued under Linked Offer for Subscription 86,914 - 8,005,621 - - - 8,092,535 Shares bought back (7,056) 7,056 - - (588,141) - (588,141) Shares issued under Enhanced Buyback Facility (note a) 95,683 - 9,205,051 - - - 9,300,734 Shares bought back under Enhanced Buyback Facility (note a) (98,733) 98,733 - - (9,444,798) - (9,444,798) Cancellation of share premium account (note b) - - (28,867,689) - 28,867,689 - - Written off to special reserve - - - - (441,529) 441,529 - Realisation of previously unrealised depreciation - - - 126,445 - (126,445) - Dividend paid - - - - - (1,077,979) (1,077,979) Profit for the period - - - 2,890,482 - 1,543,864 4,434,346 ------ ------ ------ ------ ------ ------ ------ At 30 June 2013 536,273 181,372 15,361,612 7,903,451 27,383,210 2,639,302 54,005,220 ------ ------ ------ ------ ------ ------ ------ Note a: Within this figure are the expenses of the Enhanced Buyback Facility ("EBF") of £144,094. These costs are borne by those shareholders who participated in the EBF. No fees were charged by the Manager. The EBF transaction was completed in two tranches, on 4 April 2013 and 8 April 2013. Across both dates, a total of 9,873,393 Ordinary shares were bought back at a price of 94.2 pence per share, and immediately following this, 9,568,305 Ordinary shares were allotted at a price of 97.2 pence per share. Note b: The cancellation of £28,867,689 from the share premium account (as approved at the General Meeting held on 22 February 2013 and by order of the Court dated 13 March 2013) has increased the Company's special distributution reserve. The purpose of this reserve is to fund market purchases of the Company's own Shares, and to write off existing and future losses. As part of the 2013 Linked Offer for Subscription, a total of 8,691,440 Ordinary shares were allotted at prices ranging from 94.6 pence to 99.8 pence per share, raising net funds of £8,092,535. 12. Post balance sheet events On 26 July 2013, the Company made an investment of £2.05 million to support the Management buyout of Veritek Global Limited, using the Company's existing investment of £1 million in the acquisition vehicle Madacombe Trading Limited and an additional £1.05 million from its cash resources. 13. Statutory information The information for the period ended 30 June 2013 does not comprise full financial statements within the meaning of Section 435 of the Companies Act 2006. The financial statements for the year ended 31 December 2012 have been filed with the Registrar of Companies. The auditor has reported on these financial statements and that report was unqualified and did not contain a statement under section 498(2) of the Companies Act 2006. 14. Half-Yearly Report This Half-Yearly Report will shortly be made available on our website: www.migvct.co.uk and will be circulated by post to those shareholders who have requested copies of the Report. Further copies are available free of charge from the Company's registered office, 30 Haymarket, London, SW1Y 4EX or can be downloaded via the website. CONTACT DETAILS FOR ENQUIRIES Rob Brittain or Sarah Penfold at Mobeus Equity Partners LLP (theCompany Secretary) on 020 7024 7600 or by e-mail on mig@mobeusequity.co.uk Mark Wignall or Mike Walker at Mobeus Equity Partners LLP (theInvestment Manager), on 020 7024 7600 or by e-mail on info@mobeusequity.co.uk. DISCLAIMER Neither the contents of the Company's website nor the contents ofany website accessible from hyperlinks on the Company's website (or any otherwebsite) is incorporated into, or forms part of, this announcement.