Half-year Report
Maven Income and Growth VCT 6 PLC
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Interim Announcement for the six months ended 30 September 2018 (unaudited) Â Â Â Â
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The Directors announce the unaudited Interim Management Report for the six months ended 30 September 2018.
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Highlights
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•     NAV total return at 30 September 2018 of 59.34p per share, compared to 60.01p per share at the year end
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•     NAV at 30 September 2018 of 54.49p per share, compared to 55.16p per share at the year end
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•     £5.49 million invested in 15 VCT qualifying new and follow-on investments
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•     Four new VCT qualifying private company holdings added to the portfolio, with a further two completed after the period end
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•     Five new VCT qualifying AIM quoted investments completed, with a further one completed after the period end
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•     Follow-on funding provided to six portfolio companies
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•     Encouraging pipeline of new VCT qualifying investments, with a number in advanced process
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•     Post the period end, the sale of Cursor Controls completed for a total return of 2.7 times cost
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Overview
During the period under review, your Company has made further significant progress in the construction of a broadly based portfolio of private equity and AIM investments, with the deployment of £5.49 million in 15 new and follow-on VCT qualifying investments, which the Manager considers offer the prospect of capital gains as these investments mature and are realised. A further £1.56 million was invested post the period end and the investment pipeline for the second half of the year remains strong, with a number of additional new investments in progress.
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This deployment of capital represents a continuation of the strategy introduced in 2014, with the objective of significantly expanding the number of holdings in the portfolio following the completion of several fundraisings, which substantially increased the size of your Company and the resources available to it. All new private company investments will initially be held at cost, and any uplifts in valuation will only be considered when there is evidence of sustained commercial progress against the key milestones set at the time of original investment. Although this may cause a slight lag or delay in NAV total return progression, the medium to long-term prospects for your Company remain encouraging, given the much larger and diverse investee company portfolio currently being developed.
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It is pleasing to report that trading performance across the portfolio as a whole remains generally positive, with no discernible impact from the current political uncertainty and a number of portfolio companies making good progress against the commercial milestones set at the time of original investment. The pipeline of investment opportunities remains strong and it is anticipated that there will be a good level of additional completions and deployment during the second half of the year.
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The strategy remains to invest in carefully selected UK smaller unlisted and AIM quoted companies, operating across a diverse range of industries that offer either compelling proprietary technology or a disruptive business model capable of scalable growth. The addition of several new holdings in AIM quoted companies reflects the quality of opportunities currently available in this market. Maven also has a preference for supporting proven management teams with successful track records in previous businesses. The expansion of Maven's investment team to include a number of executives with specific sector expertise, particularly focused towards younger, high growth businesses, is further benefiting the initial asset screening and selection process.
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Portfolio Developments
During the period, the majority of companies in the investee portfolio performed in line with expectations, despite the continued uncertainty within the UK economy surrounding the UK's intended exit from the European Union. It is encouraging to report that, following four years of exceptionally challenging market conditions, trading within the majority of the oil & gas portfolio has continued to improve. Maven executives remain in close and regular dialogue with the management teams of the companies with exposure to this sector, and are monitoring performance carefully.
Elsewhere in the portfolio, a number of the established private company holdings have had their valuations increased to reflect improved performance.
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Cursor Controls, a global leader in the design and manufacture of trackballs, trackpads and keyboards for use in specialist industrial applications, including health, defence and marine, has continued to deliver good levels of organic growth. Performance was enhanced by the acquisition of Belgium based distributor NSI in April 2016, which delivered further commercial and operational synergies to support growth and increase profitability. During the period under review, the business received an offer from a UK listed acquirer and a sale completed post the period end at a premium to carrying value, generating a total return of 2.7 times cost over the three-year investment period.
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Diversified renewable energy services group GEV has experienced strong growth over the past year, particularly in the US through its largest division GEV Wind Power, which specialises in wind turbine blade maintenance. The US market opportunity is sizeable and the business is well positioned to capitalise on this over the coming year, having secured contracts with leading providers including MHI Vestas, Eon, Siemens and Invenergy. The management team is also forecasting strong performance in the UK and Europe in the year ahead.
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Specialist electronics manufacturer CB Technology has made considerable progress over the past year, gaining a number of notable new clients, adding to the existing strong customer base. The company, which assembles and tests high-end printed circuit boards for use in industrial and semiconductor markets, has experienced a marked improvement in activity levels during the full year to 31 March 2018. Headcount has been increased to accommodate the record order book and the management team is optimistic on the outlook for the year ahead.
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Vodat Communications supplies data networks, IP telephony, wi-fi solutions and fixed line connectivity to retail customers, with a solid blue chip customer base including Ted Baker, Beaverbrooks and Welcome Break. Maven clients supported the management buy-out in 2012 and, since investment, the business has achieved positive growth and added a number of new customer contracts. In November 2017, Vodat completed the complementary acquisition of Axonex, a provider of specialist IT solutions, services and support specialising in unified communications, data centre, security and network infrastructure. The acquisition, which was funded through cash and bank debt, has created a number of cross selling opportunities to help deliver further growth for the enlarged group.
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In addition, follow-on funding was provided to ebb3, Growth Capital Ventures, ITS Technology, Pelatro, The GP Service and Whiterock. Given their stage of development, the requirement to provide further capital to earlier stage qualifying companies was anticipated at the time of initial investment and was reflected in the reduced total commitment size by the Maven VCTs, and by the strategy of co-investing alongside other VCT houses. In terms of valuation, all new development capital investments will continue to be held at cost, or cost less provision, until there is clear evidence of measurable progress or a quantifiable event against which a new valuation level can be validated.
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The investment trust portfolio has continued to trade well and generate healthy levels of income. This is particularly important in light of the restriction introduced by the Finance Act 2016, which prevents non-qualifying investments in traditional instruments such as treasury bills or other government securities for liquidity management purposes. The Board and the Manager remain highly cognisant of the importance of maintaining an effective liquidity management policy and will continue to consider a range of other permitted income generating investment options.
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As well as reflecting the positive trading performance highlighted above, your Board has also taken a provision against the holding in Fathom Systems, which operates in the subsea sector of the oil & gas market where recovery is lagging the general market improvement. In addition, full provisions were taken against the value of the holdings in Lambert Contracts and Chic Lifestyle prior to them being placed into administration.
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New Investments
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During the period, your Company provided development capital to four VCT qualifying private companies operating in growth markets:
•     BioAscent Discovery is a drug discovery services business that was founded by former pharmaceutical executives with over 30 years' experience of delivering clinical drug candidates. The business operates from the former Merck Sharpe and Dohme R&D site in Newhouse, Scotland, which is a state-of-the-art facility, housing client compound libraries which can range in size up to several hundred thousand compounds. The funding will be used to add complementary chemistry and biology services to the existing compound management service, to create a highly differentiated and integrated drug discovery offering.
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•     Bright Network is a developer and provider of a media technology platform that enables medium and large sized companies to identify, reach and recruit good quality university graduates and young professionals. The platform currently supports a network of over 150,000 high calibre candidates and has a customer base of over 250 leading employers, including Bloomberg, Marks & Spencer and Vodafone. The Maven client investment will support the development of the technology, as well as providing funding to further business development and marketing activities.
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•     Lending Works has developed a peer-to-peer (P2P) platform that matches private and institutional lenders to individual borrowers, and has grown to become the third largest P2P consumer lender in the UK. The company is well regarded by customers and partners as a responsible and ethical market leader, being the first major P2P platform to be fully authorised by the FCA, and the first to be authorised to provide an ISA offering. The investment by the Maven VCTs will enable the company to accelerate future growth.
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•     Optoscribe has developed an integrated platform of optical and photonic technologies that use high-power lasers to direct-write optical waveguides, which minimise energy dissipation and have applications in a wide range of markets including telecom, datacom, and mobile networks. Optoscribe's innovative techniques can form these guides in precise 3D orientations, and thereby simplify manufacturing processes by delivering highly efficient and scalable products. The barriers to entry into this market are significant and as such, the company's existing intellectual property (including patents) and technical know-how gives it a defensible market position. The investment will enable the management team to scale manufacturing capacity and support further business development activity.
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In addition, five qualifying AIM quoted companies were added to the portfolio:
•     Avacta is the developer of proprietary Affimer technology, which is a novel engineered alternative to antibodies. Affimer proteins can be developed as therapeutic molecules for use in a wide range of other life science applications in research and diagnostics. Your Company participated in the July 2018 fundraising, which raised a total of £11.6 million (gross) and the proceeds provide Avacta with the financial runway to hit important near-term milestones over the next two years.
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•     Creo Medical is a medical device company focused on the development of minimally invasive surgical devices in the emerging field of surgical endoscopy. Your Company participated in the July 2018 share placing, which raised a total of £48.5 million (gross). The proceeds will enable Creo Medical to accelerate its commercialisation strategy, complete the development of its existing surgical suite and develop new products, as well as attract partners and facilitate the potential for strategic merger and acquisition activity.
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•     Diurnal is a speciality pharmaceutical company that is developing high quality products for the global market for the life-long treatment of rare and chronic endocrine conditions including Congenital Adrenal Hyperplasia and Adrenal Insufficiency. Your Company participated in the £10.5 million (gross) fundraising, which completed in April 2018, and the proceeds are being used to support the development and commercialisation of its adrenal products.
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•     KRM22 is a technology and software investment company with a specific focus on risk management in capital markets. Your Company participated in the Initial Public Offering in April 2018, when it was admitted to trading on AIM having raised a total of £10.3 million. The proceeds will be used to make investments in line with KRM22's Investing Policy and to provide working capital for the future growth and development of the business.
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•     Scancell is the developer of novel immunotherapies for the treatment of cancer based on its patented ImmunoBody® and Moditope® technology platforms. Your Company participated in the £8.7 million total fundraising, which completed in May 2018, and the proceeds are being used to progress the development of its cancer treatments.
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The following investments have been completed during the reporting period:
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  Date |   Sector | Investment cost £'000 |   Website | |
Unlisted | ||||
BioAscent Discovery Limited | June 2018 | Pharmaceuticals & biotechnology | 697 | www.bioascent.com |
Bright Network (UK) Limited | July 2018 | Software & computer services | 696 | www.brightnetwork.co.uk |
ebb3 Limited | September 2018 | Software & computer services | 200 | www.ebb3.com |
Growth Capital Ventures Limited | June 2018 | Investment companies | 61 | www.growthcapitalventures.co.uk |
ITS Technology Group Limited | June 2018 | Telecommunication services | 193 | www.itstechnologygroup.com |
Lending Works Limited | April 2018 | Software & computer services | 498 | www.lendingworks.co.uk |
Optoscribe Limited | September 2018 | Telecommunication services | 627 | www.optoscribe.com |
The GP Service (UK) Limited | June 2018 | Health | 80 | www.thegpservice.co.uk |
Whiterock Group Limited | July 2018 | Technology | 201 | www.whiterockgroup.net |
Total unlisted | 3,253 | |||
Quoted Quoted | ||||
Avacta Group PLC | August 2018 | Pharmaceuticals & biotechnology | 493 | www.avacta.com |
Creo Medical Group PLC | August 2018 | Pharmaceuticals & biotechnology | 393 | www.creomedical.com |
Diurnal Group PLC | April 2018 | Pharmaceuticals & biotechnology | 246 | www.diurnal.co.uk |
KRM22 PLC | April 2018 | Software & computer services | 463 | www.krm22.com |
Pelatro PLC | August 2018 | Software & computer services | 148 | www.pelatro.com |
Scancell Holdings PLC | April 2018 | Pharmaceuticals & biotechnology | 492 | www.scancell.co.uk |
Total quoted | 2,235 | |||
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Total investments | 5,488 | Â |
At the period end, the portfolio stood at 75 unlisted and quoted investments, at a total cost of £14.88 million.
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Realisations
The table below gives details of all realisations achieved during the reporting period:
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 | Year first invested | Complete/ partial exit | Cost of shares disposed of £'000 | Value at 31 March 2018 £'000 | Sales proceeds £'000 | Realised gain/(loss) £'000 | Gain/(loss) over 31 March 2018 value £'000 |
Quoted | Â | Â | Â | Â | Â | Â | Â |
Creo Medical Group PLC | 2018 | Partial | 44 | 44 | 68 | 24 | 24 |
KRM22 PLC | 2018 | Partial | 23 | 23 | 35 | 12 | 12 |
Pelatro PLC | 2017 | Partial | 24 | 28 | 30 | 6 | 2 |
Total quoted | 91 | 95 | 133 | 42 | 38 | ||
Real estate investment trusts | |||||||
Custodian REIT PLC | 2016 | Partial | 35 | 38 | 38 | 3 | - |
Total real estate investment trusts | 35 | 38 | 38 | 3 | - | ||
Total disposals | 126 | 133 | 171 | 45 | 38 |
Subsequent to the reporting period, the Manager has been in dialogue with several investee companies and prospective acquirers at various stages of the negotiation process, although there can be no certainty that these discussions will result in profitable exits.
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Material Developments Since the Period End
Since 30 September 2018, three new private and AIM quoted company holdings have been added to the portfolio.
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•     Boiler Plan has developed an innovative online platform for the purchase, installation and financing of domestic boilers. The platform supports the entire boiler sales process, handling everything from the choice of appliance, the initial home survey, finance payment options, installation by a qualified engineer and the ongoing maintenance and aftercare service. The investment will be used to roll out operations into new UK territories and also to support the marketing programme.
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•     Motokiki has developed the UK's first independent price comparison website for vehicle tyres, providing consumers with market-wide, free and impartial information on tyre prices, availability and fitting costs. Motokiki is led by a highly experienced management team, including CEO and co-founder Debra Williams, who previously achieved notable success as managing director of Confused.com and CEO of Tesco Compare. The Maven VCT investment will be used to support sales and marketing initiatives, raise brand awareness, grow the customer base and develop new strategic partnerships.
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•     C4X Discovery is a drug discovery company, that aims to exploit innovative technologies to design and create best-in-class small-molecule candidates targeting a range of high value therapeutic areas. Your Company participated in the £10.1 million (gross) AIM fundraising, which completed in October 2018 with the proceeds being used to strengthen the balance sheet, provide working capital, and increase commercial capabilities.
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In October 2018, the holding in Cursor Controls was sold at a premium to carrying value. The sale to discoverIE Group plc, a UK listed international designer, manufacturer and supplier of innovative components for electronic applications, achieved a total return multiple of 2.7 times cost over the three year investment period.
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Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company were set out in full in the Strategic Report contained within the 2018 Annual Report, and are the risks associated with investment in small and medium sized unlisted and AIM/NEX quoted companies which, by their nature, carry a higher level of risk and are subject to lower liquidity than investments in large quoted companies. The valuation of investee companies may be affected by economic conditions, the credit environment and other risks including legislation, regulation, adherence to VCT qualifying rules and the effectiveness of the internal controls operated by the Company and the Manager. These risks and procedures are reviewed regularly by the Audit and Risk Committees and reported to your Board. The Board has confirmed that all tests, including the criteria for VCT qualifying status, continue to be monitored and met.
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Share Buy-backs
Shareholders have given the Board authority to buy back shares for cancellation or to be held in treasury, subject always to such transactions being in the best interests of Shareholders. It is intended that, subject to market conditions, available liquidity and the maintenance of the Company's VCT status, shares may be bought back at prices representing a discount of between 10% and 20% of the prevailing NAV per share.
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Regulatory Developments
The General Data Protection Regulation came into force on 25 May 2018, replacing the Data Protection Act 1998. This regulation enforces the principle of 'privacy by design and by default' and enshrines new rights for individuals, including the right to be forgotten and to data portability. The Manager has worked with the third parties that process Shareholders' personal data to ensure that their rights under the new regulation are respected.
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In July 2018, the Financial Reporting Council published an update of the UK Corporate Governance Code, which focuses on the application and reporting of the updated Principles. The Code applies to all companies with a Premium Listing and is applicable for all accounting periods beginning on or after 1 January 2019.
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Following the wide reaching legislative changes introduced by the Finance Act 2015, with further amendments included in the Finance Act 2018, the Chancellor's October 2018 Budget Statement did not propose any new amendments to the legislation governing VCTs.
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Outlook
Based on the current level of new transaction activity, it is expected that a meaningful number of new investments will be completed during the second half of the financial year, consistent with the Company's strategy of further expanding and diversifying the portfolio. Your Board and the Manager remain committed to building a large and broadly based portfolio of valuable private and AIM quoted companies that are capable of delivering positive Shareholder returns in the years ahead.
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On behalf of the Board
Maven Capital Partners UK LLP
Secretary
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7 December 2018
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Summary of Investment Changes
For the Six Months Ended 30 September 2018
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    | Valuation 31 March 2018  | Net investment/ (disinvestment)  | Appreciation/ (depreciation)  | Valuation 30 September 2018 | |||
£'000 | % | £'000 | £'000 | £'000 | % | ||
Unlisted investments | |||||||
Equities | 3,931 | 17.4 | 3,151 | 35 | 7,117 | 31.9 | |
Loan stock | 2,623 | 11.6 | 102 | (52) | 2,673 | 12.0 | |
6,554 | 29.0 | 3,253 | (17) | 9,790 | 43.9 | ||
AIM/NEX investments | |||||||
Equities | 1,030 | 4.6 | 2,102 | (21) | 3,111 | 13.9 | |
 Listed investments | |||||||
Equities | 5 | - | - | 2 | 7 | - | |
Investment trusts | 1,693 | 7.5 | (38) | 51 | 1,706 | 7.6 | |
Total investments | 9,282 | 41.1 | 5,317 | 15 | 14,614 | 65.4 | |
 Other net assets | 13,296 | 58.9 | (5,608) | - | 7,688 | 34.6 | |
Net assets | 22,578 | 100.0 | (291) | 15 | 22,302 | 100.0 | |
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Investment Portfolio Summary
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As at 30 September 2018
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  Investment |  Valuation £'000 |  Cost £'000 |  % of total assets | % of equity held | % of equity held by other clients1 |
Unlisted | |||||
Horizon Cremation Limited | 1,000 | 1,000 | 4.5 | 4.9 | 17.3 |
BioAscent Discovery Limited  | 697 | 697 | 3.1 | 17.4 | 22.6 |
Bright Network (UK) Limited | 696 | 696 | 3.1 | 9.7 | 20.3 |
Optoscribe Limited | 627 | 627 | 2.9 | 6.1 | 3.9 |
ITS Technology Group Limited  | 542 | 542 | 2.5 | 4.3 | 31.4 |
Lending Works Limited | 498 | 498 | 2.3 | 4.7 | 14.9 |
WaterBear Education Limited | 498 | 498 | 2.3 | 18.9 | 24.8 |
eSafe Systems Limited | 498 | 498 | 2.2 | 9.5 | 22.5 |
Curo Compensation Limited | 497 | 497 | 2.2 | 6.4 | 9.0 |
QikServe Limited | 473 | 473 | 2.1 | 3.6 | 17.6 |
ebb3 Limited | 400 | 400 | 1.8 | 16.1 | 32.9 |
Rockar 2016 Limited (trading as Rockar) | 357 | 227 | 1.6 | 1.2 | 14.4 |
Whiterock Group Limited | 314 | 301 | 1.4 | 3.7 | 26.3 |
ADC Biotechnology Limited | 298 | 298 | 1.3 | 2.2 | 12.7 |
The GP Service (UK) Limited | 292 | 279 | 1.3 | 3.9 | 45.7 |
Contego Fraud Solutions Limited | 274 | 274 | 1.2 | 2.4 | 13.3 |
(trading as NorthRow) | |||||
Cognitive Geology Limited | 199 | 199 | 0.9 | 2.5 | 10.0 |
Growth Capital Ventures Limited | 168 | 161 | 0.8 | 3.8 | 34.7 |
Glacier Energy Services Holdings Limited | 150 | 150 | 0.7 | 0.6 | 27.1 |
Castlegate 737 Limited (trading as Cursor Controls) | 115 | 50 | 0.5 | 0.5 | 47.0 |
Vodat Communications Group Limited | 108 | 60 | 0.5 | 0.4 | 26.4 |
GEV Holdings Limited | 105 | 56 | 0.5 | 0.4 | 35.6 |
Ensco 969 Limited (trading as DPP) | 103 | 91 | 0.5 | 0.4 | 34.1 |
Martel Instruments Holdings Limited | 103 | 116 | 0.5 | 1.4 | 42.8 |
CatTech International Holdings Limited | 94 | 60 | 0.4 | 0.6 | 29.4 |
Fathom Systems Group Limited | 89 | 89 | 0.4 | 1.0 | 59.0 |
JT Holdings (UK) Limited (trading as Just Trays) | 76 | 50 | 0.3 | 0.5 | 29.5 |
Maven Co-invest Endeavour Limited Partnership | 76 | 38 | 0.3 | 0.7 | 99.3 |
(invested in Global Risk Partners) | |||||
CB Technology Group Limited | 76 | 58 | 0.3 | 1.2 | 77.8 |
Flow UK Holdings Limited | 75 | 75 | 0.3 | 0.9 | 34.1 |
Attraction World Holdings Limited | 60 | 3 | 0.3 | 0.9 | 37.5 |
RMEC Group Limited | 50 | 50 | 0.2 | 0.3 | 49.8 |
R&M Engineering Group Limited | 45 | 60 | 0.2 | 0.7 | 69.9 |
HCS Control Systems Group Limited | 43 | 60 | 0.2 | 0.5 | 36.0 |
Torridon (Gibraltar) Limited | 40 | - | 0.2 | 0.8 | 39.2 |
ISN Solutions Group Limited | 26 | 40 | 0.1 | 0.6 | 54.4 |
Space Student Living Limited | 11 | - | - | 1.7 | 78.4 |
FLXG Scotland Limited | 10 | 46 | - | 0.3 | 14.0 |
(formerly Flexlife Group Limited) | |||||
Lawrence Recycling & Waste Management Limited | 3 | 73 | - | 0.8 | 61.2 |
Other unlisted investments | 4 | 432 | - | ||
Total unlisted | 9,790 | 9,822 | 43.9 |
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Investment Portfolio Summary (Continued)
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As at 30 September 2018
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  Investment (continued) |  Valuation £'000 |  Cost £'000 |  % of total assets | % of equity held | % of equity held by other clients1 |
 Quoted | |||||
Pelatro PLC | 724 | 616 | 3.2 | 2.9 | - |
Creo Medical Group PLC | 619 | 349 | 2.9 | 0.2 | - |
KRM22 PLC | 475 | 440 | 2.2 | 3.6 | - |
Avacta Group PLC | 472 | 493 | 2.1 | 1.7 | - |
Scancell Holdings PLC | 431 | 492 | 1.9 | 1.1 | - |
Diurnal Group PLC | 143 | 246 | 0.6 | 0.2 | - |
Byotrol PLC | 141 | 177 | 0.6 | 1.1 | 2.5 |
Angle PLC | 46 | 69 | 0.2 | 0.1 | 0.2 |
Faron Pharmaceuticals Oy | 28 | 222 | 0.1 | 0.1 | - |
Vianet Group PLC (formerly Brulines Group PLC) | 14 | 16 | 0.1 | - | 1.5 |
Plastics Capital PLC | 11 | 10 | - | - | 1.4 |
Gordon Dadds Group PLC | 7 | 101 | - | - | 0.1 |
(formerly Work Group PLC) | |||||
esure Group PLC | 7 | - | - | - | - |
Other quoted investments | - | 229 | - | ||
Total quoted | 3,118 | 3,460 | 13.9 | ||
 Private equity investment trusts | |||||
HgCapital Trust PLC | 138 | 100 | 0.6 | - | 0.1 |
Princess Private Equity Holding Limited | 126 | 98 | 0.6 | - | 0.1 |
F&C Private Equity Trust PLC | 119 | 102 | 0.5 | 0.1 | 0.3 |
Apax Global Alpha Limited | 106 | 99 | 0.4 | - | 0.1 |
Standard Life Private Equity Trust | 55 | 43 | 0.2 | - | - |
Total private equity investment trusts | 544 | 442 | 2.3 | ||
 | |||||
Real estate investment trusts | |||||
Schroder REIT Limited | 113 | 99 | 0.6 | - | 0.2 |
Target Healthcare REIT Limited | 100 | 98 | 0.4 | - | 0.2 |
Regional REIT Limited | 89 | 99 | 0.4 | - | 0.2 |
Custodian REIT PLC | 72 | 64 | 0.3 | - | 0.2 |
Total real estate investment trusts | 374 | 360 | 1.7 | Â | Â |
 |  |  |  |  | |
Fixed income investment trusts | Â | Â | Â | Â | Â |
TwentyFour Income Fund Limited | 201 | 201 | 0.9 | 0.1 | - |
Alcentra European Floating Rate Income Fund Limited | 195 | 200 | 0.9 | 0.1 | - |
Total fixed income investment trusts | 396 | 401 | 1.8 | Â | Â |
 |  |  |  |  |  |
Infrastructure investment trusts | Â | Â | Â | Â | Â |
The Renewables Infrastructure Group Limited | 101 | 100 | 0.5 | - | - |
3i Infrastructure PLC | 100 | 100 | 0.5 | - | - |
HICL Infrastructure Company Limited | 96 | 99 | 0.4 | - | - |
International Public Partnerships Limited | 95 | 99 | 0.4 | - | - |
Total infrastructure investment trusts | 392 | 398 | 1.8 | Â | Â |
 |  |  |  |  | |
Total investments | 14,614 | 14,883 | 65.4 | Â | Â |
1Other clients of Maven Capital Partners UK LLP.
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Income Statement
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For the Six Months Ended 30 September 2018
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Six months ended 30 September 2018 (unaudited) | Six months ended 30 September 2017 (unaudited) Â | Year ended 31 March 2018 (audited) Â | |||||||||
Revenue £'000 | Capital £'000 | Total £'000 | Revenue £'000 | Capital £'000 | Total £'000 | Revenue £'000 | Capital £'000 | Total £'000 | |||
Gains/(losses) on investments | - | 15 | 15 | - | (46) | (46) | - | (98) | (98) | ||
Income from investments | 72 | - | 72 | 105 | - | 105 | 276 | - | 276 | ||
Other income | 12 | - | 12 | 11 | - | 11 | 25 | - | 25 | ||
Investment management fees | (57) | (227) | (284) | (60) | (239) | (299) | (118) | (473) | (591) | ||
Other expenses | (86) | - | (86) | (84) | - | (84) | (194) | - | (194) | ||
Net return on ordinary | (59) | (212) | (271) | (28) | (285) | (313) | (11) | (571) | (582) | ||
activities before taxation | |||||||||||
Tax on ordinary activities | - | - | - | - | - | - | - | - | - | ||
Return attributable to Equity Shareholders | (59) | (212) | (271) | (28) | (285) | (313) | (11) | (571) | (582) | ||
  Earnings per share (pence) | (0.14) | (0.52) | (0.66) |   (0.07) |   (0.69) |   (0.76) | (0.03) | (1.39) | (1.42) | ||
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All gains and losses are recognised in the Income Statement.
All items in the above statement are derived from continuing operations. The Company has only one class of business and one reportable segment, the results of which are set out in the Income Statement and Balance Sheet. The company derives its income from investments made in shares, securities and bank deposits.
There are no potentially dilutive capital instruments in issue and, therefore, no diluted earnings per share figures are relevant. The basic and diluted earnings per share are, therefore, identical.
The accompanying Notes are an integral part of the Financial Statements.
Statement of Changes in Equity
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For the Six Months Ended 30 September 2018
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   Six Months Ended 30 September 2018 (unaudited) |  Share capital £'000 | Share premium account £'000 | Capital reserve realised £'000 | Capital reserve unrealised £'000 | Special distributable reserve £'000 | Capital redemption reserve £'000 |  Revenue reserve £'000 |   Total £'000 |
At 31 March 2018 | 4,093 | 6,543 | (2,090) | (239) | 15,227 | 90 | (1,046) | 22,578 |
Net return | - | - | (182) | (30) | - | - | (59) | (271) |
Costs in relation to DIS | - | (5) | - | - | - | - | - | (5) |
At 30 September 2018 | 4,093 | 6,538 | (2,272) | (269) | 15,227 | 90 | (1,105) | 22,302 |
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  Six Months Ended 30 September 2017 (unaudited) |  Share capital £'000 | Share premium account £'000 | Capital reserve realised £'000 | Capital reserve unrealised £'000 | Special distributable reserve £'000 | Capital redemption reserve £'000 |  Revenue reserve £'000 |   Total £'000 |
At 31 March 2017 | 4,003 | 5,864 | (1,246) | 307 | 15,488 | 40 | (1,035) | 23,421 |
Net return | - | - | (232) | (53) | - | - | (28) | (313) |
Dividends paid | - | - | (103) | - | - | - | - | (103) |
Repurchase and cancellation of shares | (50) | - | - | - | (260) | 50 | - | (260) |
Share issue | 137 | 668 | - | - | - | - | - | 805 |
At 30 September 2017 | 4,090 | 6,532 | (1,581) | 254 | 15,228 | 90 | (1,063) | 23,550 |
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   Year Ended 31 March 2018 (audited) |  Share capital £'000 | Share premium account £'000 | Capital reserve realised £'000 | Capital reserve unrealised £'000 | Special distributable reserve £'000 | Capital redemption reserve £'000 |  Revenue reserve £'000 |   Total £'000 |
At 31 March 2017 | 4,003 | 5,864 | (1,246) | 307 | 15,488 | 40 | (1,035) | 23,421 |
Net return | - | - | (25) | (546) | - | - | (11) | (582) |
Dividends paid | - | - | (819) | - | - | - | - | (819) |
Repurchase and cancellation of shares | (50) | - | - | - | (261) | 50 | - | (261) |
Net proceeds of share issue | 137 | 668 | - | - | - | - | - | 805 |
Net proceeds of DIS issue | 3 | 11 | - | - | - | - | - | 14 |
At 31 March 2018 | 4,093 | 6,543 | (2,090) | (239) | 15,227 | 90 | (1,046) | 22,578 |
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The accompanying Notes are an integral part of the Financial Statements.
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Balance Sheet
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As at 30 September 2018
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30 September 2018 (unaudited) £'000 | 30 September 2017 (unaudited) £'000 | 31 March 2018 (audited) £'000 | |
Fixed assets | |||
Investments at fair value through profit or loss | 14,614 | 8,101 | 9,282 |
 Current assets | |||
Debtors | 85 | 82 | 241 |
Cash | 7,627 | 15,461 | 13,093 |
7,712 | 15,543 | 13,334 | |
Creditors | |||
Amounts falling due within one year | (24) | (94) | (38) |
Net current assets | 7,688 | 15,449 | 13,296 |
Net assets | 22,302 | 23,550 | 22,578 |
  Capital and reserves | |||
Called up share capital | 4,093 | 4,090 | 4,093 |
Share premium account | 6,538 | 6,532 | 6,543 |
Capital reserve - realised | (2,272) | (1,581) | (2,090) |
Capital reserve - unrealised | (269) | 254 | (239) |
Special distributable reserve | 15,227 | 15,228 | 15,227 |
Capital redemption reserve | 90 | 90 | 90 |
Revenue reserve | (1,105) | (1,063) | (1,046) |
Net assets attributable to Ordinary Shareholders | 22,302 | 23,550 | 22,578 |
 Net asset value per Ordinary Share (pence) |  54.49 |  57.58 | 55.16 |
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The Financial Statements were approved and authorised for issue by the Board of Directors on 7 December 2018 and were signed on its behalf by:
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Brian May
Chairman
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The accompanying Notes are an integral part of the Financial Statements.
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Cash Flow Statement
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For the Six Months Ended 30 September 2018
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Six months ended 30 September 2018 (unaudited) £'000 | Six months ended 30 September 2017 (unaudited) £'000 | Year ended 31 March 2018 (audited) £'000 | |
Net cash flows from operating activities | (394) | (408) | (779) |
Cash flows from investing activities | |||
Investment income received | 90 | 92 | 243 |
Deposit interest received | 12 | 11 | 25 |
Purchase of investments | (5,488) | (3,040) | (6,000) |
Sale of investments | 319 | 157 | 1,736 |
Net cash flows from investing activities | (5,067) | (2,780) | (3,996) |
 Cash flows from financing activities | |||
Equity dividends paid | - | (103) | (819) |
Issue of Ordinary Shares | - | 805 | 819 |
Repurchase of Ordinary Shares | - | (182) | (261) |
Costs relating to DIS | (5) | - | - |
Net cash flows from financing activities | (5) | 520 | (261) |
Net decrease in cash | (5,466) | (2,668) | (5,036) |
 Cash at beginning of period | 13,093 |  18,129 | 18,129 |
Cash at end of period | 7,627 | 15,461 | 13,093 |
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The accompanying Notes are an integral part of the Financial Statements.
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Notes to the Financial Statements
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1.   Accounting Policies
The financial information for the six months ended 30 September 2018 and the six months ended 30 September 2017 comprises non-statutory accounts within the meaning of the Companies Act 2006. The financial information contained in this report has been prepared on the basis of the accounting policies set out in the Annual Report and Financial Statements for the year ended 31 March 2018, which have been filed at Companies Houses and which contained an Auditor's Report which was not qualified and did not contain a statement under S498 (2) or S498 (3) of the Companies Act 2006.
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2.   Reserves
Share premium account
The share premium account represents the premium above nominal value received by the Company on issuing shares, net of issue costs.
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Capital reserves
Gains or losses on investments realised in the year that have been recognised in the Income Statement are transferred to the capital reserve realised account on disposal. Furthermore, any prior unrealised gains or losses on such investments are transferred from the capital reserve unrealised account to the capital reserve realised account on disposal.
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Increases and decreases in the fair value of investments are recognised in the Income Statement and are then transferred to the capital reserve unrealised account. The capital reserve realised account also represents capital dividends, capital investment management fees and the tax effect of capital items.
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Special distributable reserve
The total cost to the Company of the repurchase and cancellation of shares is represented in the special distributable reserve.
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Capital redemption reserve
The nominal value of shares repurchased and cancelled is represented in the capital redemption reserve.
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Revenue reserve
The revenue reserve represents accumulated profits retained by the Company that have not been distributed to Shareholders as a dividend.
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3. Return per Ordinary Share
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Six months ended 30 September 2018 | |
The return per share have been based on the following figures: Weighted average number of Ordinary Shares  Revenue return Capital return |  40,927,657   (£59,000) (£212,000) |
Total return | (£271,000) |
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Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
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•     the Financial Statements for the six months ended 30 September 2018 have been prepared in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland;
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•     the Interim Management Report includes a fair review of the information required by DTR 4.2.7R in relation to the indication of important events during the first six months, and of the principal risks and uncertainties facing the Company during the second six months, of the year ending 31 March 2019; and
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•     the Interim Management Report includes adequate disclosure of the information required by DTR 4.2.8R in relation to related party transactions and any changes therein.
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Other Information
A full copy of the Interim Report and Financial Statements will be printed and issued to Shareholders. Copies of this announcement will be available to the public at the office of Maven Capital Partners UK LLP, Kintyre House, 205 West George Street, Glasgow G2 2LW; at the registered office of the Company, Fifth Floor, 1-2 Royal Exchange Buildings, London EC3V 3LF; and, in due course, on the Company's website at www.mavencp.com/migvct6.
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Neither the content of the Company's website nor the contents of any website accessible from hyperlinks in this announcement, on the Company's website or any other website is incorporated into, or forms part of, this announcement.
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By order of the Board
Maven Capital Partners UK LLP
Secretary
7Â December 2018
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