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5 May 2011 11:45
Matrix Income & Growth VCT plc (the Company) INTERIM MANAGEMENT STATEMENT For the quarter ended 31 March 2011
In accordance with Rule 4.3 of the Disclosure and Transparency Rules of the UK Listing Authority, Matrix Income & Growth VCT plc presents an Interim Management Statement for the quarter ended 31 March 2011. The statement also includes relevant financial information between the end of the period and the date of this statement.
NET ASSET VALUE AND TOTAL RETURN PER SHARE
At 31 March 2011 At 31 December 2010 Net assets attributable to £40,200,289 £38,450,907shareholders Shares in issue 42,292,627 39,779,546 Net asset value per Ordinary 95.05 p 96.66 pShare Cumulative dividends paid 21.30 p 21.30 p Total return (net asset value 116.35 p 117.96 pbasis) per share since inception % return on opening net asset 23.12% 24.83%value per share of 94.5 pence
The net asset value per share has fallen by 1.61 pence over the quarter. This is primarily due to a reduction in the valuation of one of the investments in the portfolio which is exposed to volatility in revenues, and is progressing much more slowly than previously anticipated. Other companies in the portfolio have continued to trade satisfactorily.
CUMULATIVE DIVIDENDS
A final dividend of 5.0 pence per share comprising 0.5 pence from income and 4.5 pence from capital in respect of the year ended 31 December 2010 was approved by shareholders at the Annual General Meeting of the Company held today, 4 May 2011. The dividend will be payable on 27 May 2011 to Shareholders who are on the Register on 13 May 2011. This dividend, once paid, will increase cumulative dividends paid since inception to 26.3 pence per share.
This dividend will have no impact on the total return (net asset value basis) per share shown above.
NEW INVESTMENTS
In March 2011, the VCT invested a further £622,466 into ASL Technology Holdings Limited to help fund the acquisition of Transcribe Copier Systems Limited (of which £562,685 will be held in escrow until June 2011 pending finalisation of the second tranche of this additional investment).
DEMERGER of INVESTEE COMPANY
Just before the end of the period in March 2011, VSI Limited ("VSI") completed the demerger of its two operating subsidiary companies, creating two separate investee companies for the VCT, called MachineWorks Software Limited ("MachineWorks") and LightWorks Software Limited. The original VSI loan, which was transferred to MachineWorks on the demerger, was repaid by this company shortly after the period-end. Following this repayment, the VCT now has two separate equity investments in each of these companies with an investment cost of £44,489 each.
DIVESTMENTS
In January 2011, the VCT realised its entire investment in Campden Media Limited for a cash consideration of £836,294, representing 85.8% of the total investment cost of £975,000. Together with interest paid over the life of the investment the total cash return was £1,016,150, representing 104.2% of cost.
In February, Iglu.com Holidays Limited repaid its loan stock in full, realising £1,205,180 together with a premium of £213,262 for the Company and in March Vectair Holdings Limited repaid its loan in full realising £421,728 together with a premium of £84,346 for the Company.
Just after the period-end in April 2011, MachineWorks (formerly part of VSI) made a payment of £556,108 in full settlement of its loan.
SHARE BUY-BACKS
The Company bought back 952,478 of its own Ordinary Shares at an average price of 85.01 pence during the quarter ended 31 March 2011 and has bought-back 452,608 of its own shares at a price of 86.78 pence since the end of the quarter.
MATRIX VCTs' JOINT OFFER FOR SUBSCRIPTION
During the quarter ended 31 March 2011, the Company issued and allotted a total of 3,465,559 ordinary shares at prices of 98.0 and 102.3 pence per share, raising net proceeds of £3,275,591.
Since the quarter end the Company has allotted a further 1,512,600 ordinary shares at a price of 102.3 pence per share, raising further net proceeds of £ 1,463,708.
The Offer remains open until 30 June 2011.
For further information, please contact:
Sarah Penfold, for Matrix Private Equity Partners LLP, Company Secretary: 020 3206 7000.
MATRIX INCOME & GROWTH VCT PLC