Interim Management Statement - 3rd Quarter
Updated : 15:19
The Income & Growth VCT plc
(the "Company")
INTERIM MANAGEMENT STATEMENT
For the quarter ended 30 June 2019
The Income & Growth VCT plc presents an Interim Management Statement for the quarter ended 30 June 2019. 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 30 June 2019 | At 31 March 2019
|
Net assets attributable to shareholders | £84,211,371 | £81,438,038 |
Shares in issue | 103,827,380 | 104,363,865 |
Net asset value (NAV) per share | 81.11p* | 78.03p |
Cumulative dividends paid to date per share | 111.50p* | 111.50p |
Total return per share since inception (NAV basis) | 192.61p | 189.53p |
*Figures are quoted prior to the 1.50 pence dividend referred to below. | ||
INTERIM DIVIDEND
The Board declared an interim dividend of 1.50 pence per share for the year ending 30 September 2019, comprising 1.00 penny and 0.50 pence from capital. This dividend was paid to shareholders on 12 July 2019 to shareholders on the Register on 14 June 2019 and brings cumulative dividends paid per share to 113.00 pence per share, and also reduces the Company's Net Asset Value by a corresponding amount.
SHARE BUYBACKS
On 5 June 2019, the Company purchased 300,000 of the Company's own ordinary shares at a price of 67.50 pence per share for cancellation.
On 7 June 2019, the Company purchased 236,485 of the Company's own ordinary shares at a price of 70.25 pence for cancellation.
After the period end, with effect from 1 August 2019, the Board changed its share buyback policy objective of maintaining the discount to Net Asset Value at which the Company's shares may trade in the market from approximately 10% or less, to approximately 5% or less. In pursuing this policy, the Board's priority will remain to ensure that it is acting prudently and in the interests of the remaining shareholders of the Company. Share buybacks will continue to be entirely at the Board's discretion and will be subject to the Company having sufficient funds available for such a purpose. They will also continue to be subject to prevailing market conditions, the Listing Rules and any applicable law and regulatory restrictions at the relevant time. Shares bought back in the market will ordinarily be cancelled.
INVESTMENT ACTIVITY
Investments during the period
On 13 May 2019, the Company invested £1.53 million into a new investee company, Arkk Consulting, which provides services and software to enable organisations to remain compliant with regulatory reporting requirements.
On 22 May 2019, the Company invested £0.93 million into a new investee company, Parsley Box, which is a UK direct to consumer supplier of home delivered ambient ready meals for the elderly.
Realisations during the period
On 10 May 2019, the Company sold its remaining investment in Plastic Surgeon to Polygon Group for £1.22 million. Over the eleven years this investment was held, it generated proceeds of £2.27 million compared to an original investment cost £0.41 million, which is a multiple on cost of 5.6 x and an IRR of 20.5%.
On 28 June 2019, the Company sold its investment in ASL Technology for £4.79 million. Over the eight and a half years this investment was held, it generated proceeds of £5.94 million compared to an original investment cost of £2.72 million, which is a multiple on cost of 2.2x and an IRR of 12.6%.
Transactions after the period end
After the period end, the Company made a follow-on investment of £0.62 million into MPB Group, a leading online marketplace for camera and video equipment.
On 2 August 2019, £0.17 million of contingent consideration was received as part of the sale of Entanet Holdings in August 2017.
On 6 June 2019, the Company realised part of its investment in Master Removers Group generating proceeds receivable of £0.51 million, as part of a transaction which also increased the Company's equity interest from 6.3% to 9.6%.
PLANNED FUNDRAISING
As announced recently, the Board intends to launch offers for subscription for new ordinary shares in the autumn, full details of which will be contained in the prospectus that will be sent to all registered shareholders.
Please note that all of the information above is unaudited.
Other than as described above, there were no material events during the period and to the date of this announcement.
For further information, please contact:
Rob Brittain, for Mobeus Equity Partners LLP, Company Secretary: 020 7024 7600
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.