INCOME & GROWTH VCT (THE) PLC

Management Reports • Sep 16, 2020

National Storage Mechanism | Additional information

RNS Number : 2135Z

Income & Growth VCT (The) PLC

16 September 2020

The Income & Growth VCT plc

(the "Company")

INTERIM MANAGEMENT STATEMENT

For the quarter ended 30 June 2020

The Income & Growth VCT plc presents an Interim Management Statement for the quarter ended 30 June 2020.  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 2020	At 31 March 2020
Net assets attributable to shareholders	£87,883,180	£78,775,672
Shares in issue	114,844,575	115,068,452
Net asset value (NAV) per share	76.52 pence	68.46 pence
Cumulative dividends paid to date per share	117.50 pence	117.50 pence
Total return per share since inception (NAV basis)	194.02 pence	185.96 pence

The net increase in the NAV per share of 8.06 pence over the quarter represents a period of encouraging recovery. The Company's portfolio valuations at 30 June 2020 have increased from the values held at 31 March 2020. The valuations at 31 March 2020 had been adversely affected by the economic disruption and uncertainty resulting from the outbreak of the COVID-19 Global Pandemic. However, over this quarter to 30 June 2020, more clarity has emerged on the impact of the Company's portfolio such that, to date, this has been more modest than was initially expected with much of the portfolio demonstrating a strong degree of resilience. The net increase from portfolio movements for the quarter is 8.06 pence per share, being the principal cause of a positive 11.8% NAV return for the quarter.

INVESTMENT ACTIVITY

New investment during the period

On 29 June 2020, the Company invested £0.32 million into a new investee company, Andersen EV, a designer of electric vehicle (EV) charge points.

Further investments during the period

On 5 May 2020, the Company invested a further £0.63 million into Rotageek, a provider of cloud-based workforce management software to help larger retail and leisure organisations predict and meet demand to schedule staff effectively.

On 26 May 2020, the Company invested a further £0.98 million into MyTutorweb (trading as MyTutor), an existing portfolio company and digital marketplace that connects school pupils who are seeking private one-to-one tutoring with university students.

Further investments after the period end

On 1 September 2020, a further £1.54 million was invested into existing portfolio company, Buster and Punch Holdings Limited, a London-based interiors brand.

Realisations during the period

On 30 April 2020, the Company partially realised its holding in Omega Diagnostics Group plc, generating proceeds of £0.64 million.

Realisations after the period end

After the period end, on 14 August 2020, the Company sold its investment in Tovey Management Limited (trading as Access IS) to ASSA ABLOY AB for £7.15 million.  Over the five years this investment was held, it generated cash proceeds of £8.38 million compared to an original investment cost of £3.13 million, which is a multiple on cost of 2.5x and an IRR of 23.4%.

Also after the period end, on 2 September 2020, the Company sold its investment in Blaze Signs Holdings Limited via a secondary buyout backed by Elaghmore LLP and has received cash proceeds of £1.20 million.  Over the fourteen years this investment was held, it has generated cash proceeds of £3.39 million compared to an original investment cost of £1.34 million, which is a multiple on cost of 2.5x and an IRR of 13.1%.

Finally, on 10 September 2020, the Company partially realised its remaining holding in Omega Diagnostics Group plc, generating proceeds of £0.41 million.

The impact of these three realisations on the NAV per share of 76.52 pence at 30 June 2020 is estimated to be an increase of 1.65 pence per share. The Board emphasises that this increase in NAV per share from these three realisations is in isolation from other changes in the Company's balance sheet, including valuation and other transaction movements in the Company's investment portfolio, that may also have affected the NAV per share during the current quarter since 30 June 2020.

INTERIM DIVIDEND

After the period end, on 10 July 2020, the Company paid a 3.00 pence per share interim dividend in respect of the year ending 30 September 2020, to all Shareholders whose names were on the Register on 19 June 2020, including all shareholders who invested in the 2019/20 fundraising.  Following payment of this dividend, 874,986 ordinary shares in the Company were allotted to existing Shareholders registered for the Dividend Investment Scheme, at a price of 65.50 pence per share and a total consideration of £572,779.  Following this allotment, the number of Ordinary Shares in issue is 115,719,561.

On 25 August 2020, the Company declared a second interim dividend of 11.00 pence per share in respect of the year ending 30 September 2020. This dividend will be paid on 28 September 2020 to Shareholders on the Register on 4 September 2020.

The two interim dividends referred to above totalling 14.00 pence per share will reduce the Company's NAV per share at 30 June 2020 of 76.52 pence and increase cumulative dividends paid up to 30 June 2020 of 117.50 pence per share, by 3.00 pence and 11.00 pence per share on their respective payment dates.

SHARE BUYBACK

On 19 June 2020, the Company purchased 223,877 of the Company's own ordinary shares at a price of 62.00 pence per share for cancellation.

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:

Mobeus Equity Partners LLP, Company Secretary: 020 7024 7600

LEI:  213800FPC15FNM74YD92                                                                                                                                                   

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCUNASRRSUKAAR