RNS Number : 4923T

Mobeus Income & Growth 4 VCT PLC

20 March 2019

mobeus Income & Growth 4 VCT plc

Annual Financial Results of the Company for the Year ended 31 December 2018

Mobeus Income & Growth 4 VCT plc (the "Company") today announces the final results for the year ended 31 December 2018.  These results were approved by the Board of Directors on 20 March 2019.

You may, in due course, view the Annual Report & Financial Statements, comprising the statutory accounts of the Company by visiting www.mig4vct.co.uk.

Financial Highlights

As at 31 December 2018:

Net assets: £57.90 million

Net asset value ("NAV") per share: 84.79 pence

-	Net asset value ("NAV") total return per share of 2.6% for the year1.
-	Share Price Total Return per share of 4.6% for the year1.
-	Dividends paid and proposed in respect of the year total 8.00 pence per share.  The proposed final dividend of 4.00 pence per share, if approved, will bring cumulative dividends paid to date to 109.20 pence per share1.
-	£5.88 million was invested into five new and five existing growth capital investments during the year.
-	A total of £1.77 million cash proceeds was received primarily from four realisations and loan stock repayments.
1 Further details of these alternative performance measures ("APMs") are contained in the Strategic Report in the Annual Report.

Cumulative total shareholder return per share (NAV basis)

The longer-term trend of performance on this measure is shown in the table below:

Reporting date as at 31 December	Net assets	NAV per share	Cumulative dividends  paid per share	Cumulative total return per share to shareholders (NAV basis)1
	(£m)	(p)	(p)	(p)
2018	57.90	84.79	105.20	189.99
2017	58.41	86.57	101.20	187.77
2016	52.76	107.57	73.20	180.77
2015	57.01	117.89	62.20	180.09
2014	50.29	118.21	52.20	170.41

¹ Cumulative total shareholder return (NAV basis) is closing net asset value plus cumulative dividends paid since 1999 to 31 December 2018  

The chart above shows the recent past performance of the original funds raised in 1999.  The original subscription price was 200 pence per share before the benefit of income tax relief.  Subscription prices from subsequent fundraisings and historic performance data from 2008 are shown in the Investor Performance Appendix on the Company's website, www.mig4vct.co.uk, where they can be downloaded by clicking on table under "Reviewing the performance of your investment" on the home page.

On 31 July 2006, Mobeus became sole Investment Adviser to the Company.  The cumulative NAV total return at this date was 122.51 pence.

CHAIRMAN'S STATEMENT

I am pleased to present the annual results of Mobeus Income & Growth 4 VCT plc for the year ended 31 December 2018.

Overview

This has been a year of solid performance by the Company during the transition era brought about by the 2015 VCT rule changes, in which returns to shareholders have again been positive, principally due to a strong income return and a rise in the value of the unrealised portfolio. During the year, the Company made investments into five new companies, provided follow-on funding to five existing portfolio companies and realised its investment in four portfolio companies. Further details of this investment activity can be found under the 'Investment Portfolio' section of my Statement below and in the Investment Adviser's Review.

The Company and the Investment Adviser have responded well to the VCT Rules introduced by the Finance (No2) Act 2015. The Investment Adviser's team has been expanded and fourteen growth capital investments have been completed as a result of the change in the Company's investment policy in May 2016. During the year, additional changes to VCT legislation were enacted, further details of which can be found in the Annual Report and under the 'Industry and regulatory developments' section of my Statement below. 

The Investment Adviser continues to report an interesting pipeline of growth capital opportunities. The sector is buoyant with much activity, although the entry pricing is, in some cases, challenging.  Meanwhile, the existing MBO focused portfolio constructed under the previous VCT rules continues to provide a healthy yield.

As mentioned in my half-year statement, we are delighted with the strong support from investors for our last fundraising, which closed fully subscribed in March 2018. 

Performance

The Company's NAV total return per share for the year ended 31 December 2018 was 2.6% (2017: 6.5%) (being the closing NAV plus dividends paid in the year, divided by the opening NAV) while the share price total return was 4.6% (2017: 7.2%).

This rise in NAV total return for the year was primarily due to another year of positive income returns (themselves principally because of loan stock interest and higher dividend income) and a net increase in the value of the existing portfolio.

As a result of this performance, the NAV cumulative total return per share (being the closing NAV plus total dividends paid to date) increased during the year by 1.2% from 187.77 pence to 189.99 pence.  The NAV at 31 December 2018 was 84.79 pence.  For details of these calculations, please refer to the Strategic Report.

For more details on the longer-term performance of your investment in the Company, please consult the Investor Performance Appendix on the Company's website.

Investment portfolio

During the year, £5.88 million was invested in five new growth capital investments and five existing growth portfolio companies (analysed in the Investment Review and explained within Note 8 to the Financial Statements).

The new growth capital investments totalling £2.52 million were made into the following companies:

·              Proactive Investors, a provider of investor media services;

·              Super Carers, an online platform connecting people seeking home care;

·              Hemmels, a restorer of classic cars;

·              Rotageek, a provider of workforce management software; and

·              Grow Kudos, a digital platform for dissemination of research.

In addition, five follow-on investments totalling £3.36 million were made into:

·              MPB, an online marketplace for used camera and video equipment;

·              Tapas Revolution, a leading Spanish restaurant chain in the casual dining sector;

·              MyTutor, a digital marketplace connecting people seeking online tutoring;

·              Preservica, a seller of proprietary digital archiving software; and

·              Biosite, a provider of biometric access control and software-based workforce management solutions for the construction sector.

Shareholders should note that, at the year end, 46.8% of the value of the investment portfolio was held in MBO type investments and 53.2% was held in growth capital investments. £13.30 million has been invested in growth capital investments since the 2015 VCT rule changes.

Cash proceeds totalling £1.77 million for the year were received from portfolio companies. Of this total, £1.23 million was received as cash proceeds from the sale of Fullfield (trading as Motorclean), Hemmels, Lightworks and SparesFinder, with a further £0.40 million being received as loan and share capital repayments and finally, £0.14 million from receipts of deferred consideration.

For the year under review, the portfolio generated a net loss of £0.36 million on investments realised. Within this, the principal gains in the year were from the sale of Lightworks (which was realised at a profit over opening valuation of £0.16 million) and receipts from companies realised in a prior year. However, these were more than offset by losses incurred from the sale of Fullfield (trading as Motorclean) (£0.55 million, although this investment generated a positive return overall) and Hemmels (£0.28 million). The loss on the sale of Hemmels is explained further in the Investment Review. It serves to remind shareholders that an inherent risk of investing in relatively early stage smaller companies (as required by the terms of the new VCT regulations), is that not all ventures and companies will succeed.

Investment realisations produced £0.47 million in capital gains and capital losses of £0.87 million when compared to original investment cost, a net loss of £0.40 million.

The portfolio achieved a net unrealised increase of £1.29 million on investments still held, with positive increases from EOTH (Rab and Lowe Alpine), Plastic Surgeon and CGI Creative Graphics, partially offset by valuation falls at BookingTek, Wetsuit Outlet and Veritek.  At the year end, the portfolio was valued at £36.30 million (2017: £31.48 million) representing 98.4% of cost (2017: 94.9%).

Further details of the investment activity during the year and a summary of the performance highlights can be found in the Investment Review and in the Strategic Report within the Annual Report.

Dividends

Your Board is proposing a final dividend in respect of the year ended 31 December 2018 of 4.00 pence per share (2017: nil). The dividend, comprising 2.25 pence from capital and 1.75 pence from income, will be proposed to shareholders at the Annual General Meeting of the Company to be held on Friday, 10 May 2019, to shareholders on the register on 26 April 2019, for payment on 28 May 2019. If approved by shareholders, this forthcoming final dividend will bring dividends paid in respect of the year ended 31 December 2018 to 8.00 pence (2017: 21.00 pence) per share, and the Company will have paid cumulative dividends since inception of 109.20 pence per share.

The Company's target of paying a dividend of at least 4.00 pence per share in respect of each financial year has been reached or exceeded in each of the last eight years. While the Board has not yet changed the dividend target, ordinary dividend payments are more likely to be volatile, and, at least over the medium-term, may be lower than have been paid in the recent past.

A chart showing the dividends paid in respect of each of the last five years and cumulative dividends on the same basis is included in the Strategic Report within the Annual Report.

For the reasons set out in my half year statement (a copy of which can be found on the Company's website www.mig4vct.co.uk) the Company's Dividend Investment Scheme ("the Scheme") was suspended on 14 August 2018. Your Board will continue to keep the Scheme under review and will provide shareholders with advanced notice of any future decision to reintroduce, modify or cancel the scheme.

Succession planning

The Board is in the process of refreshing its composition.

As you will read later in the Directors' Report, Andrew Robson, who has served as a Director of the Company since August 2010, has decided not to stand for re-election at the forthcoming annual general meeting and will accordingly retire at the conclusion of that meeting. The Nomination and Remuneration Committee expects to recommend the appointment of a director to succeed Andrew upon his retirement and to assume the role of chairman of the Audit Committee and the Nomination and Remuneration Committee, which Andrew presently chairs. Andrew has done an excellent job for the Company and I would like to take this opportunity to thank Andrew formally for his substantial contribution.

As regards my role as Chairman of the Board, I have served as a Director of the Board since 2002, and the Board will shortly begin the process of finding a suitable successor.

Industry and regulatory developments

As mentioned in my Overview above, a number of additional changes to the VCT rules were introduced with the enactment of the Finance Act 2018 on 15 March 2018. These changes were designed to exclude tax-motivated investments where capital is not at risk (that is, principally seeking to preserve investors' capital) and to encourage VCTs to put their money to work more quickly. They also place further restrictions on the way investments are able to be structured. A summary of current VCT regulation can be found in the Annual Report.

Share buybacks

During the year ended 31 December 2018, the Company bought back 1.7% (2017: 1.1%) of the issued share capital of the Company at the start of the year, which was subsequently cancelled.  Further details of the purchases are included in the Directors' Report in the Annual Report.

Shareholder communications

The annual shareholder event was held on Tuesday, 5 February 2019 at the Royal Institute of British Architects in Central London. This annual event included presentations on the Mobeus advised VCTs' investment activity and performance and from investee companies. There were separate day-time and evening sessions, and feedback from those who attended, which numbered around 350, found it to be informative and worthwhile.  The next shareholder event will be held in the first quarter of 2020.

Annual General Meeting

The Annual General Meeting of the Company will be held at 11:30 a.m. on Friday, 10 May 2019 at The Clubhouse, 8 St James's Square, London SW1Y 4JU. Both the Board and the Investment Adviser look forward to welcoming shareholders to the meeting which will include a presentation from the Investment Adviser on the investment portfolio and provide an opportunity to ask questions of the Board and the Investment Adviser. The notice of the meeting and an explanation of the resolutions to be proposed can be found in the Annual Report.

Outlook

Your Board considers that your Company is well positioned to prosper in the growth capital investment sector.  Your Board again cautions that investing in such earlier stage companies does involve increased risk and those that succeed often take longer to achieve scale.  Returns, therefore, will take longer to emerge and will be more volatile.  It is generally true that the least successful investments are likely to emerge or fail before the most successful contribute.  This is likely to cause a slower rate of financial progress in the earlier years, although it should be offset by more significant gains in the longer-term. 

Meanwhile, the portfolio retains a solid foundation of investments made under the previous MBO strategy, the majority of which are mature and profitable companies providing attractive income returns.

Uncertainty is always detrimental to markets and economies.  The Brexit process has certainly provided much uncertainty over an unreasonably long period.  The inconsistent negotiating stance of the UK government, combined with multiple fissures in Parliament and in the country, has done much damage.  To be slightly contrary, it is remarkable that so far the UK economy has held up as well as it has, but this could, of course, change rapidly.  There are also some non-UK issues which could affect our economy, but as I said last year, investing in the unquoted sector is not a short-term exercise.

The most recent fundraising provides the Company with sufficient funds to meet its commitments and to continue the current investment rate in the short to medium-term, if suitable opportunities are identified and can be invested in at acceptable prices. Your Board is also pleased to note that the Investment Adviser continues to expand and strengthen its investment team to source and manage investments that complement the portfolio.

Finally, I would like to take this opportunity once again to thank all shareholders for their continued support.

Christopher Moore

Chairman

INVESTMENT POLICY

The Company invests primarily in a diverse portfolio of UK unquoted companies. Investments are made selectively across a number of sectors, principally in in established companies.  Investments are usually structured as part loan stock and part equity in order to produce a regular income stream and to generate capital gains from realisations.

There are a number of conditions within the VCT legislation which need to be met by the Company and which may change from time to time.  The Company will seek to make investments in accordance with the prevailing VCT legislation.

Asset allocation and risk diversification policies, including the size and type of investments the Company makes, are determined in part by the requirements of prevailing VCT legislation.  No single investment may represent more than 15% (by VCT tax value) of the Company's total investments at the date of investment.

The Company's cash and liquid funds are held in a portfolio of readily realisable interest bearing investments, deposit and current accounts, of varying maturities, subject to the overriding criterion that the risk of loss of capital be minimised.

The Company's articles of association permit borrowings of amounts up to 10% of the adjusted capital and reserves (as defined therein).  However, the Company has never borrowed and the Board would only consider doing so in exceptional circumstances.

Investment ADVISER'S Review

Demand for growth capital investment remains strong and there is an interesting pipeline of investment opportunities. It is expected that the current pace and quantum of new and follow-on investments will continue in the short to medium-term.

Portfolio review

The portfolio's activity in the year is summarised as follows:

	2018 £m		2017 £m
Opening portfolio value	31.48		38.93
New and further investments	5.88		2.18
Disposal proceeds	(1.77)		(12.98)
Net realised (losses)/gains	(0.36)		4.14
Valuation movements	1.07	1	(0.79)
Portfolio value at 31 December	36.30		31.48

¹ This figure is less than Unrealised gains/ (losses) on investments per the Income Statement due to an amount of deferred consideration of £0.22 million now recognised, from an investment realised in a prior year which no longer forms part of the portfolio - see Note 8 of the Notes to the Financial Statements for further details.

This has been a year of further solid progress building the growth capital portfolio with five investments into new growth businesses totalling £2.52 million, five existing growth portfolio companies receiving follow-on funding totalling £3.36 million, and net cash proceeds received of £1.77 million, primarily from four realisations. This brings the total invested in growth capital investments to £13.30 million since the introduction of the VCT regulations in 2015.  The past year's investment and divestment activity has increased the proportion of the portfolio regarded as growth capital investments by value to 53.2% (including AIM and legacy) at the year end.

Detail of these movements for each investee company is provided in the Investment Portfolio Summary.

The portfolio's contribution to the overall results of the VCT is summarised as follows:

Investment Portfolio Capital Movement	2018 £m		2017 £m
Increase in the value of unrealised investments	4.45		2.54
Decrease in the value of unrealised investments	(3.38)		(3.33)
Net increase/(decrease) in the value of unrealised investments	1.07	1	(0.79)
Realised gains	0.47		4.14
Realised losses	(0.83)		-
Net realised (loss)/gain in the year	(0.36)		4.14
Net investment portfolio movement in the year	0.71		3.35

¹ This figure is less than Unrealised gains/(losses) on investments per the Income Statement due to an amount of deferred consideration of £0.22 million now recognised, from an investment realised in a prior year which no longer forms part of the portfolio - see Note 8 of the Notes to the Financial Statements for further details.

Valuation changes of portfolio investments still held

Within the unrealised valuation increases of £4.45 million, the principal contributors were EOTH (Rab and Lowe Alpine) (£571k), Plastic Surgeon (£525k) and CGI Creative Graphics (£352k). EOTH achieved a record year of profitability, underpinned by continued growth in its Rab brand. Plastic Surgeon continues to trade strongly having now achieved three years of sustained profit growth. CGI Creative Graphics has seen an improvement in trading, principally arising from the growth in the UK and European caravan market.

A small number of new growth investments have shown initial uplifts from cost, due in large part to the structure of the Company's investment, but also, in some cases, due to the underlying investee company performance.

Within total valuation decreases of £3.38 million, the main reductions were BookingTek (£704k), Wetsuit Outlet (£682k) and Veritek Global (£538k). BookingTek has experienced delays to the roll out of its software which has impacted its planned turnover growth. Wetsuit Outlet has had a disappointing year post investment, with growth in profitability not being achieved as envisaged. Management has since implemented several measures to restore margins. Finally, Veritek has experienced a challenging trading environment in its sector but is restructuring its operations accordingly.

Realised gains and losses from sales of investments

The largest gain was £0.17 million from the sale of Lightworks to Siemens PLM Software, a business of Siemens AG. SparesFinder, a legacy investment previously managed by a former investment adviser, was realised at a gain of £0.16 million, having been previously valued at zero.

The Company also realised a gain in the year from deferred consideration receipts of £0.14 million arising from past realisations during the year.

The largest loss was £0.55 million from the sale of Fullfield (trading as Motorclean) back to management (although the investment yielded a positive return over its life), whilst a loss of £0.28 million resulted from the sale of Hemmels to its largest customer. Although the Hemmels loss was modest, it was unexpected, arising shortly after the initial investment, and illustrates the inherent higher risk of investing in early stage growth companies.

Investment portfolio yield and capital repayments

During the year under review, the Company received the following amounts in loan interest and dividend income:

Investment Portfolio Yield	2018 £m		2017 £m
Loan interest received in the year	1.82		2.15
Dividends received in the year	0.29		0.18
Total portfolio income in the year1	2.11		2.33
Portfolio value at 31 December	36.30		31.48
Portfolio Income Yield (Income as a % of Portfolio value at 31 December)	5.8%		7.4%

¹ Total portfolio income in the period is generated solely from investee companies within the portfolio. See Note 3 of the Financial Statements for all income receivable by the Company.

In addition to deferred consideration receipts of £0.14 million and sales proceeds from disposals of investments of £1.23 million, the Company also received loan stock repayments of £0.29 million and preference share repurchases of £0.11 million, both at cost.

New investment in the year

A total of £2.52 million was invested into five new investments during the year as detailed below:

Company	Business	Date of investment	Amount of new investment (£m)
Proactive Investors	Investor media services	January, June and October 2018	0.75
Proactive Investors specialises in timely multi-media news provision, events organisation, digital services and investor research. Proactive provides breaking news, commentary and analysis on hundreds of small-cap listed companies and pre-IPO businesses across the globe. The investment will enable Proactive to expand its services into the US market, which is the largest global market for investor media services. The company's accounts for the year ended 30 June 2017 show turnover of £3.99 million and a profit before interest, tax and amortisation of goodwill of £0.53 million.
Super Carers	Online care platform	March 2018	0.49
Super Carers provides an online platform connecting people seeking home care, typically for their elderly relatives, with experienced independent carers. Carers and care-seekers manage care directly, thus reducing the administrative burden and the need for care managers, enabling care to be delivered with greater flexibility and more cost effectively. The company's accounts for the year ended 31 March 2018 show revenues of £0.38 million and a loss before interest, tax and amortisation of goodwill of £1.28 million.
Hemmels	Classic car restoration	March 2018	0.51
Hemmels commenced trading in September 2016 and specialised in the sourcing, restoration, selling and servicing of high value classic cars. Hemmels focused on classic Mercedes-Benz and planned to expand into the Porsche marque under a separate brand. The investment was made to enable Hemmels to proceed with its expansion plans and secure sufficient development stock. After a short period following the completion of the investment, it became clear that the company's financial situation and prospects were significantly at variance to expectations and the investment has since been realised, as reported within 'Realisations during the year', below.
Rotageek	Workforce management software	August 2018	0.44
Rotageek is a provider of cloud-based enterprise software to help larger retail and leisure organisations predict and meet demand to schedule staff effectively. This investment will be used for further technology development and to grow sales from enterprise clients. The company's unaudited accounts for the year ended 31 December 2017 show revenues of £0.90 million and a loss before interest, tax and amortisation of goodwill of £1.57 million.
Grow Kudos	Platform for the dissemination of academic research	November 2018	0.33
Grow Kudos is an online platform which provides and promotes academic research dissemination. The Kudos product was developed to allow researchers to increase the impact and readership of their work and to track and analyse distribution both within academia and across broader audiences. The investment will be used principally to increase its head count to support sales growth. The company's unaudited accounts for the year ended 31 December 2017 show revenues of £0.53 million and a loss before interest, tax and amortisation of goodwill of £0.59 million.

Further investments in existing portfolio companies in the year

The Company made further investments totalling £3.36 million into five existing portfolio companies during the year under review, as detailed below:

Company	Business	Date of investment	Amount of new investment (£m)
MPB Group	Online marketplace for used camera and video equipment	February, October and December 2018	0.45
MPB is Europe's leading online marketplace for used camera and video equipment. Based in Brighton, its custom-designed pricing technology enables MPB to offer both buy and sell services through the same platform and offers a one-stop shop for all its customers. Having expanded into the US (opening a New York office) and German markets as part of the initial VCT investment round, this follow-on investment, alongside funds provided by the ProVen VCTs, is to support its continued growth plan. Having doubled its sales over the last year, this investment will give the company sufficient capital to achieve its next phase of expansion. The company's latest audited accounts for the year ended 31 March 2018 show turnover of £21.71 million and a loss before interest, tax and amortisation of goodwill of £2.00 million.
Tapas Revolution	Restaurant chain	March 2018	0.46
Based in London, Tapas Revolution is a leading Spanish restaurant chain in the casual dining sector focusing on shopping centre sites with high footfall. Having opened its first restaurant in Shepherd's Bush Westfield, the business now operates seven established restaurants, with the support of the initial VCT investment in 2017. This follow on investment is to finance the opening of several new locations around England. The company's latest unaudited accounts for the year ended 31 October 2017 show turnover of £5.84 million and a £0.68 million loss before interest, tax and amortisation of goodwill.
MyTutor	Online tutoring	May 2018	0.84
My Tutor is a digital marketplace that connects school pupils who are seeking private one-to-one tutoring with university students. The business is satisfying a growing demand from both schools and parents to improve pupils' exam results to enhance their academic and career prospects. This investment supports an opportunity to consolidate the sizeable £2bn UK tutoring market, grow My Tutor's market presence and drive technological development within the company. The company's latest unaudited accounts for the year ended 31 December 2017 show turnover of £0.56 million and a loss before interest, tax and amortisation of goodwill of £1.40 million.
Preservica	Seller of proprietary digital archiving software	September 2018	0.91
Preservica has developed market leading software for the long-term preservation of digital records ensuring that digital content can remain accessible, irrespective of future changes in technology. Previously a division of the Company's former portfolio company Tessella, Preservica was demerged prior to the sale of Tessella in December 2015. The investment provided additional growth capital to finance the development of the business. The Company's latest audited accounts for the year ended 31 March 2018 show turnover of £2.85 million and a loss before interest, tax and amortisation of goodwill of £1.93 million.
Biosite	Workforce management and security services	October 2018	0.70
Based in the Midlands, Biosite is a provider of biometric access control and software-based workforce management solutions for the construction sector. The business is growing significantly and this investment will support the further development of software and hardware products. The company's latest unaudited accounts for the year-ended 31 July 2017 show turnover of £6.38 million and a loss before interest, tax and amortisation of goodwill of £0.45 million.

Realisations during the year

The Company realised its investments in Fullfield (trading as Motorclean), Hemmels, Lightworks and SparesFinder during the year, generating an aggregate net realised loss of £0.50 million. Net cash proceeds received from the sale of these investments totalled £1.23 million, as detailed below:

Company	Business	Period of investment	Total cash proceeds over the life of the investment/ Multiple over cost
Fullfield (Motorclean)	Vehicle cleaning and valet services	July 2011 to August 2018	£2.35 million 1.2 x cost
The Company sold its investment in Fullfield (trading as Motorclean) back to management in August 2018, receiving cash proceeds of £0.64 million (realised loss in the year: £0.55 million). This realisation contributed to a return of 1.2 times the original investment cost and an IRR of 5.0% in the seven years that this investment was held.
Hemmels	Classic car restorer	March 2018 to September 2018	£0.25 million 0.5 x cost
The Company sold its investment in Hemmels to the business's largest customer for £0.23 million in September 2018, resulting in a realised loss of £0.28 million on the original investment cost over the six months the investment was held.  The investment was realised six months after the original investment, for reasons already explained under new investments.
Lightworks	Provider of software for CAD and CAM vendors	March 2011 to September 2018	£0.20 million 21.7 x cost
The Company sold its investment in Lightworks to Siemens PLM Software for £0.20 million (realised gain in the year: £0.17 million) in September 2018, generating a realised gain over the life of the investment of £0.19 million. This equates to a multiple of 21.7 times the investment cost of £0.01 million and an IRR of 56%.
SparesFinder	Supplier of industrial spare parts online	August 1999 to August 2018	£0.16 million 0.6 x cost
The Company sold its investment in SparesFinder to Sphera Solutions Inc for £0.16 million (realised gain in the year: £0.16 million) in August 2018. This investment was held as part of a legacy portfolio having previously been managed by a former investment adviser, Elderstreet Investments.  This realisation equates to a multiple of 0.6 times the original investment cost of £0.25 million.

During the year, the Company also received loan repayments totalling £0.29 million (notably Plastic Surgeon: £0.17 million), deferred consideration from investments realised in a previous year of £0.14 million and preference share repurchases by Plastic Surgeon of £0.11 million.

Net realised losses upon the four disposals above of £0.50 million, together with gains on deferred consideration of £0.14 million equal the total loss for the year of £0.36 million, as shown at the start of this review.

Funds available for investment

Cash and other liquid investments available for investment amounted to £21.37 million.  Of this amount, £2.54 million is held as cash in bank accounts, and the balance is placed in AAA rated money market funds.  The returns on these funds are relatively low, but the Board retains its policy of seeking above all to preserve capital for its uninvested funds.

Mobeus Equity Partners LLP

Investment Adviser

	Total Cost at 31 Dec 2018 £	Total Valuation at 31 Dec 2017 £	Total Valuation at 31 Dec 2018	% of equity held	% of Portfolio  by value
Mobeus Equity Partners Portfolio
Tovey Management Limited (trading as Access IS) Provider of data capture and scanning hardware	2,469,013	2,758,626	3,013,724	9.7%	8.3%
Virgin Wines Holding Company Limited Online wine retailer	1,930,813	2,173,407	2,372,306	9.7%	6.5%
ASL Technology Holdings Limited Printer and photocopier services	1,933,591	2,049,558	2,327,966	9.5%	6.4%
Preservica Limited Seller of proprietary digital archiving software	1,585.773	929,117	2,082,403	11.0%	5.7%
Pattern Analytics Limited (trading as Biosite) Workforce management and security services for the construction industry	1,338,539	960,257	1,978,710	5.6%	5.5%
EOTH Limited (trading as Equip Outdoor Technologies) Distributor of branded outdoor equipment and clothing (Rab and Lowe Alpine)	951,471	1,405,478	1,976,902	1.7%	5.4%
Media Business Insight Holdings Limited A publishing and events business focused on the creative production industries	2,722,760	1,663,142	1,871,714	15.7%	5.2%
Manufacturing Services Investment Limited (trading as Wetsuit Outlet) Online retailer in the water sports market	2,333,102	2,333,102	1,651,280	6.4%	4.5%
CGI Creative Graphics International Limited Vinyl graphics to global automotive, recreation vehicle and aerospace markets	1,449,746	1,087,900	1,439,959	6.6%	4.0%
Master Removers Group Limited (trading as Anthony Ward Thomas, Bishopsgate and Aussie Man & Van) A specialist logistics, storage and removals business	511,855	1,173,348	1,426,419	4.7%	3.9%
MPB Group Limited Online marketplace for used photographic equipment	1,032,187	777,331	1,402,016	5.6%	3.9%
Vian Marketing Limited (trading as Red Paddle Co) Design, manufacture and sale of stand-up paddleboards and windsurfing sails	899,074	1,416,746	1,378,902	7.1%	3.8%
My Tutorweb Limited Digital marketplace connecting school pupils seeking one-to-one online tutoring	1,307,644	466,639	1,307,644	7.2%	3.6%
Turner Topco Limited (trading as Auction Technology Group (formerly ATG Media)) SaaS based online auction marketplace platform	1,529,075	1,292,718	1,255,082	3.8%	3.5%
Ibericos Etc. Limited (trading as Tapas Revolution) Spanish restaurant chain	1,044,869	580,469	1,135,102	5.8%	3.2%
Tharstern Group Limited MIS & Commercial print software solutions	1,091,886	1,401,362	1,070,871	12.2%	3.0%
Proactive Group Holdings Inc Provider of media services and investor conferences for companies primarily listed on secondary public markets	755,340	-	1,060,873	2.6%	2.9%
The Plastic Surgeon Holdings Limited (formerly TPSFF Holdings Limited) Snagging and finishing of domestic and commercial properties	46,160	809,939	1,046,666	8.7%	2.9%
Buster and Punch Holdings Limited Industrial inspired lighting and interiors retailer	530,392	530,392	687,347	4.5%	1.9%
Bourn Bioscience Limited Management of In-vitro fertilisation clinics	1,132,521	818,429	687,046	7.7%	1.9%
Rota Geek Limited Workforce management software	437,000	-	685,092	3.7%	1.9%
Redline Worldwide Limited Provider of security services to the aviation industry and other sectors	838,377	897,989	521,616	6.7%	1.4%
RDL Corporation Limited Recruitment consultants for the pharmaceutical, business intelligence and IT industries	1,000,000	632,005	478,719	9.1%	1.3%
Hollydale Management Limited Company seeking to carry on a business in the food sector	701,120	438,200	438,200	11.0%	1.2%
Super Carers Limited Online platform that connects people seeking home care from experienced independent carers	485,730	-	364,298	4.3%	1.1%
Vectair Holdings Limited Designer and distributor of washroom products	24,732	303,233	360,155	2.1%	1.0%
Kudos Innovations Limited Online platform that provides and promotes academic research dissemination	328,950	-	328,950	3.2%	0.9%
Blaze Signs Holdings Limited Manufacturer and installer of signs	190,631	193,997	286,967	5.7%	0.8%
Backhouse Management Limited Company seeking to carry on a business in the motor sector	589,680	226,800	226,800	11.3%	0.6%
Creasy Marketing Services Limited Company seeking to carry on a business in the textile sector	589,680	226,800	226,800	11.3%	0.6%
McGrigor Management Limited Company seeking to carry on a business in the pharmaceutical sector	589,680	226,800	226,800	11.3%	0.6%
Barham Consulting Limited Company seeking to carry on a business in the catering sector	589,680	226,800	226,800	11.3%	0.6%
Omega Diagnostics Group plc In-vitro diagnostics for food intolerance, auto-immune diseases and infectious diseases	200,028	274,849	208,344	1.3%	0.6%
BookingTek Limited Software for hotel groups	652,137	867,257	163,034	3.5%	0.4%
Jablite Holdings Limited Manufacturer of expanded polystyrene products	376,083	229,783	122,422	9.1%	0.3%
Veritek Global Holdings Limited Maintenance of imaging equipment	1,620,086	547,806	9,953	11.9%	0.0%
BG Training Limited City-based provider of specialist technical training	10,625	5,313	5,313	0.0%	0.0%
Racoon International Group Limited Supplier of hair extensions, hair care products and training	484,347	-	-	8.0%	0.0%
CB Imports Group Limited (trading as Country Baskets) Importer and distributor of artificial flowers, floral sundries and home décor products	175,000	-	-	5.8%	0.0%
Hemmels Limited Company specialising in sourcing, selling and servicing of high price classic cars	23,250	-	-		0.0%
Newquay Helicopters (2013) Limited (in creditors' voluntary liquidation) Helicopter service operator	4,623	-	-	2.5%	0.0%
Disposals in year
Fullfield Limited (trading as Motorclean) Vehicle cleaning and valet services	-	1,185,517	-
Lightworks Software Limited Provider of software for CAD and CAM vendors	-	33,847	-
Total	36,507,250	31,144,956	36,053,195		99.3%
Former Elderstreet Private Equity Portfolio
Cashfac Limited Provider of virtual banking application software solutions to corporate customers	260,101	339,097	245,465	2.9%	0.7%
Sift Group Limited Developer of business-to-business internet communities	135,391	-	-	1.3%	0.0%
Total	395,492	339,097	245,465		0.7%
Investment Adviser's Total	36,902,742	31,484,053	36,298,660		100.0%

For further information on the Investment Portfolio, please see the Annual Report and Financial Statements

Principal risks, management and regulatory environment

The Directors acknowledge the Board's responsibilities for the Company's internal control systems and have instigated systems and procedures for identifying, evaluating and managing the significant risks faced by the Company.  This includes a key risk management review which takes place at each quarterly Board meeting.  Further details are contained in the corporate governance section of the Directors' Report in the Annual Report.  The principal risks identified by the Board are set out below:

Risk	Possible consequence	How the Board manages risk
Loss of approval as a Venture Capital Trust	The Company must comply with section 274 of the Income Tax Act 2007 ("ITA") which allows it to be exempted from capital gains tax on investment gains. Any breach of these rules may lead to the Company losing its approval as a Venture Capital Trust (VCT), qualifying shareholders who have not held their shares for the designated holding period having to repay the income tax relief they obtained and future dividends paid by the Company becoming subject to tax. The Company would also lose its exemption from corporation tax on capital gains.	· The Company's VCT qualifying status is continually reviewed by the Investment Adviser. · The Board receives regular reports from its VCT Status Adviser who has been retained by the Board to monitor the VCT's compliance with the VCT Rules.
Economic and Political	Events such as an economic recession, Brexit negotiations and movement in interest rates could affect trading conditions for smaller companies and consequently the value of the Company's qualifying investments.	· The Board monitors the portfolio as a whole to (1) ensure that the Company invests in a diversified portfolio of companies and (2) ensure that developments in the macro-economic environment such as movements in interest rates are monitored. · The Board and Investment Adviser have carried out an analysis of the possible impact of Brexit on the investment portfolio which will be kept under review.
Investment	Investment in VCT qualifying earlier stage unquoted small companies involves a higher degree of risk than investment in fully listed companies.  Smaller companies often have limited product lines, markets or financial resources, may not be profitable at the point of investment and may be dependent for their management on a smaller number of key individuals.  This may lead to variable investment returns and the use of more subjective valuation methodologies. Following the introduction of the VCT Rules in 2015 the Company is no longer permitted to invest in MBOs.  The focus of investment has therefore moved to providing growth capital investment to younger companies.	· The Board regularly reviews the Company's investment strategy. · Careful selection and review of the investment portfolio on a regular basis. · The Investment Adviser has provided a growing pipeline of compliant investment opportunities following a continuing strengthening of its investment team. · The valuation of the investment portfolio and valuation methodologies are reviewed by the Board each quarter.
Regulatory	The Company is required to comply with the Companies Act, the Listing Rules of the UK Listing Authority and United Kingdom Accounting Standards. Changes to and breach of any of these might lead to suspension of the Company's Stock Exchange listing, financial penalties or a qualified audit report. Furthermore, changes to the UK VCT legislation or the State-aid rules could have an adverse effect on the Company's ability to achieve satisfactory investment returns.	·   Regulatory and legislative developments are kept under review by the Company's solicitors and the Board.  Please see the Chairman's Statement in the Annual Report for the latest details of the impact of recent VCT legislation.
Financial and operating	Failure of the systems at any of the third party service providers that the Company has contracted with, could lead to inaccurate reporting or monitoring. Inadequate controls could lead to the misappropriation or insecurity of assets.	· The Board carries out an annual review of the internal controls in place and reviews the risks facing the Company at each quarterly Board meeting and receives reports by exception. · It reviews the performance of the service providers annually.
Market	Movements in the valuations of the VCT's investments will, inter alia, be connected to movements in UK Stock Market indices.	· The Board receives quarterly valuation reports from the Investment Adviser. · The Investment Adviser alerts the Board about any adverse movements.
Asset liquidity	The Company's investments may be difficult to realise.	· The Board receives reports from the Investment Adviser and reviews the portfolio at each quarterly Board meeting.  It carefully monitors investments where a particular risk has been identified.
Market liquidity	Shareholders may find it difficult to sell their shares at a price which is close to the net asset value given the limited secondary market in VCT shares, which may adversely affect investor sentiment towards the Company.	· The Board has a share buyback policy which seeks to mitigate market liquidity risk.  This policy is reviewed at each quarterly Board meeting.
Counterparty	A counterparty may fail to discharge an obligation or commitment that it has entered into with the Company.  This may lead to financial loss for the Company.	· The Board regularly reviews and agrees policies for managing these risks.  Further details can be found under 'credit risk' in Note 15 to the Financial Statements.

The risk profile of the Company has changed as a result of changes to VCT legislation.  As the Company is required to focus its new investment activity on growth capital investments in younger companies it is anticipated that investment returns will be more volatile and have a higher risk profile.  The Board remain confident that the Investment Adviser has adapted to these changing investment requirements, although the early stage investment process remains largely unproven.  The combination of high liquidity levels in the Company and the challenge of new VCT rules may also result in continuing high liquidity which may be a drag on performance.  The Board continues to manage excess liquidity through dividend distributions where appropriate.  These issues will be monitored by the Board during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare Financial Statements for each financial year and the Directors have elected to prepare the Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss for the Company for that period.

In preparing these financial statements, the Directors are required to:

●	select suitable accounting policies and then apply them consistently;
●	make judgements and accounting estimates that are reasonable and prudent;
●	state whether the Financial Statements have been prepared in accordance with the United Kingdom accounting standards, subject to any material departures disclosed and explained in the Financial Statements;
●	prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;
●	prepare a Strategic Report, a Directors' Report and Directors' Remuneration Report which comply with the requirements of the Companies Act 2006.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Website publication

The Directors are responsible for ensuring the Annual Report and the Financial Statements are made available on a website.  Financial Statements are published on the Company's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of Financial Statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors.  The Directors' responsibility also extends to the ongoing integrity of the Financial Statements contained therein.

Directors' responsibilities pursuant to Disclosure and Transparency Rule 4 of the UK Listing Authority

The Directors confirm to the best of their knowledge that:

(a) The Financial Statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, give a true and fair view of the assets, liabilities, financial position and the profit of the Company.

(b) The Annual Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

Having taken advice from the Audit Committee, the Board considers the Annual Report and Financial Statements, taken as a whole, as fair, balanced and understandable and that it provides the information necessary for shareholders to assess the Company's performance, business model and strategy.

Neither the Company nor the Directors accept any liability to any person in relation to the Annual Report except to the extent that such liability could arise under English law.  Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A and schedule 10A of the Financial Services and Markets Act 2000.

The names and functions of the Directors are stated in the Annual Report.

For and on behalf of the Board:

Christopher Moore

Chairman

FINANCIAL STATEMENTS

Income Statement for the year ended 31 December 2018
		Year ended 31 December 2018			Year ended 31 December 2017
	Notes	Revenue	Capital	Total	Revenue	Capital	Total
		£	£	£	£	£	£
Unrealised gains/(losses) on investments	8	-	1,294,148	1,294,148	-	(792,838)	(792,838)
Realised (losses)/gains on investments	8	-	(363,572)	(363,572)	-	4,142,375	4,142,375
Income	3	2,263,918	-	2,263,918	2,381,649	-	2,381,649
Investment Adviser's fees	4a	(311,111)	(933,333)	(1,244,444)	(293,312)	(879,937)	(1,173,249)
Other expenses	4d	(378,431)	-	(378,431)	(422,206)	-	(422,206)
Profit/(loss) on ordinary activities before taxation		1,574,376	(2,757)	1,571,619	1,666,131	2,469,600	4,135,731
Taxation on profit/(loss) on ordinary activities	5	(243,837)	177,334	(66,503)	(286,870)	169,388	(117,482)
Profit for the year and total comprehensive income		1,330,539	174,577	1,505,116	1,379,261	2,638,988	4,018,249
Basic and diluted earnings per ordinary share	6	1.95p	0.25p	2.20p	2.60p	4.99p	7.59p
The revenue column of the Income Statement includes all income and expenses. The capital column accounts for the unrealised gains/(losses) and realised (losses)/gains on investments and the proportion of the Investment Adviser's fee charged to capital. The total column is the Statement of Total Comprehensive Income of the Company prepared in accordance with Financial Reporting Standards ("FRS"). In order to better reflect the activities of a VCT and in accordance with the Statement of Recommended Practice ("SORP") issued in November 2014 by the Association of Investment Companies ("AIC"), 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.
All the items in the above statement derive from continuing operations of the Company. No operations were acquired or discontinued in the year.

Balance Sheet as at 31 December 2018
			31 December 2018	31 December 2017
	Notes	£	£
Fixed assets
Investments at fair value	8	36,298,660	31,484,053
Current assets
Debtors and prepayments		529,190	3,166,996
Current investments	9	18,830,389	21,494,921
Cash at bank	9	2,541,058	2,847,849
		21,900,637	27,509,766
Creditors: amounts falling due within one year		(303,513)	(582,179)
Net current assets		21,597,124	26,927,587
Net assets		57,895,784	58,411,640
Capital and reserves
Called up share capital		682,830	674,751
Share premium reserve		31,474,977	29,895,865
Capital redemption reserve		26,257	14,589
Revaluation reserve		1,848,472	517,952
Special distributable reserve		14,784,518	20,029,787
Realised capital reserve		6,815,730	6,346,235
Revenue reserve		2,263,000	932,461
Equity shareholders' funds		57,895,784	58,411,640
Basic and diluted net asset value per ordinary share		84.79p	86.57p

Statement of Changes in Equity for the year ended 31 December 2018
			Non-distributable reserves					Distributable reserves
	Notes		Called up share capital	Share Premium reserve		Capital redemption reserve	Revaluation reserve	Special distributable reserve	Realised capital reserve	Revenue reserve	Total
																		(note a)	(note b)	(note b)
											£	£		£	£	£	£	£	£
At 1 January 2018 Comprehensive income for the year			674,751	29,895,865		14,589	517,952	20,029,787	6,346,235	932,461	58,411,640
Profit/(loss) for the year			-	-		-	1,294,148	-	(1,119,571)	1,330,539	1,505,116
Total comprehensive income for the year			-	-		-	1,294,148	-	(1,119,571)	1,330,539	1,505,116
Contributions by and distributions to owners
Shares issued via Offer for Subscription (note c)			11,862	1,003,505		-	-	(10,787)	-	-	1,004,580
Dividends re-invested into new shares			7,885	575,607		-	-	-	-	-	583,492
Shares bought back (note d)			(11,668)	-		11,668	-	(874,700)	-	-	(874,700)
Dividends paid	7		-	-		-	-	(2,734,344)	-	-	(2,734,344)
Total contributions by and distributions to owners			8,079	1,579,112		11,668	-	(3,619,831)	-	-	(2,020,972)
Other movements
Realised losses transferred to special reserve (note a)			-	-		-	-	(1,625,438)	1,625,438	-	-
Realisation of previously unrealised depreciation			-	-		-	36,372	-	(36,372)	-	-
Total other movements			-	-		-	36,372	(1,625,438)	1,589,066	-	-
At 31 December 2018			682,830	31,474,977		26,257	1,848,472	14,784,518	6,815,730	2,263,000	57,895,784

Note a: The Special distributable reserve also provides the Company with a reserve to absorb any existing and future realised losses and, when considered by the Board to be in the interests of shareholders, to fund share buybacks and for other corporate purposes.  All of this reserve originates from funds raised prior to 6 April 2014.  The transfer of £1,625,438 to the special reserve from the realised capital reserve above is the total of realised losses incurred by the Company in the year.

Note b: The realised capital reserve and the revenue reserve together comprise the Profit and Loss Account of the Company.

Note c: Under the 2017/18 Offer for Subscription, 1,186,253 shares were allotted between January and March 2018, raising net funds of £1,004,580 for the Company.  The figure is net of issue costs of £27,133.

Note d: During the year, the Company purchased 1,166,848 of its own shares at the prevailing market price for a total cost of

£874,700, which were subsequently cancelled. This differs to the figure shown in the Statement of Cash Flows of £1,066,736 by £192,036, due to £63,503 included in creditors at the year end, offset by £255,539 which was a creditor from the previous year.

Statement of Changes in Equity for the year ended 31 December 2017
		Non-distributable reserves					Distributable reserves
		Called up share capital	Share premium reserve	Capital redemption reserve	Revaluation reserve		Special distributable reserve		Realised capital reserve		Revenue reserve	Total
												£	£	£	£		£		£		£	£
At 1 January 2017												490,430	13,540,891	9,342	1,152,007		31,646,338		4,702,557		1,213,591	52,755,156
Comprehensive income for the year
(Loss)/profit for the year		-	-	-	(792,838)		-		3,431,826		1,379,261	4,018,249
Total comprehensive income for the year		-	-	-	(792,838)		-		3,431,826		1,379,261	4,018,249
Contributions by and distributions to owners
Shares issued via Offer for Subscription		154,721	13,570,259	-	-		(94,364)		-		-	13,630,616
Dividends re-invested into new shares		34,847	2,784,715	-	-		-		-		-	2,819,562
Shares bought back		(5,247)	-	5,247	-		(408,125)		-		-	(408,125)
Dividends paid		-	-	-	-		(10,403,513)		(2,339,914)		(1,660,391)	(14,403,818)
Total contributions by and distributions to owners		184,321	16,354,974	5,247	-		(10,906,002)		(2,339,914)		(1,660,391)	1,638,235
Other movements
Realised losses transferred to special reserve		-	-	-	-		(710,549)		710,549		-	-
Realisation of previously unrealised depreciation		-	-	-	158,783		-		(158,783)		-	-
Total other movements		-	-	-	158,783		(710,549)		551,766		-	-
At 31 December 2017		674,751	29,895,865	14,589	517,952		20,029,787		6,346,235		932,461	58,411,640

The composition of each of these reserves is explained below:

Called up share capital

The nominal value of shares originally issued increased for subsequent share issues either via an Offer for Subscription or Dividend Investment Scheme or reduced due to shares bought back by the Company.

Share premium reserve

This reserve contains the excess of gross proceeds less issue costs over the nominal value of shares allotted under recent Offers for Subscription and the Company's Dividend Investment Scheme.

Capital redemption reserve

The nominal value of shares bought back and cancelled is held in this reserve, so that the Company's capital is maintained.

Revaluation reserve

Increases and decreases in the valuation of investments held at the year end are accounted for in this reserve, except to the extent that the diminution is deemed permanent.

In accordance with stating all investments at fair value through profit and loss (as recorded in note 8), all such movements through both revaluation and realised capital reserves are shown within the Income Statement for the year.

Special distributable reserve

The cost of share buybacks is charged to this reserve. In addition, any realised losses on the sale or impairment of investments (excluding transaction costs), and 75% of the Investment Adviser fee expense, and the related tax effect, are transferred from the realised capital reserve to this reserve. The cost of any IFA facilitation fee payable as part of the Offer for Subscription is also charged to this reserve.

Realised capital reserve

The following are accounted for in this reserve:

• Gains and losses on realisation of investments;

• Permanent diminution in value of investments;

• Transaction costs incurred in the acquisition and disposal of investments;

• 75% of the Investment Adviser fee expense and 100% of any performance incentive fee payable, together with the related tax effect to this reserve in accordance with the policies; and                                                                              

• Capital dividends paid.

Revenue reserve

Income and expenses that are revenue in nature are accounted for in this reserve together with the related tax effect, as well as income dividends paid that are classified as revenue in nature.

Statement of Cash Flows for the year ended 31 December 2018

	Notes	Year ended 31 December 2018				Year ended 31 December 2017
							£			£
Cash flows from operating activities
Profit after tax for the financial year			1,505,116			4,018,249
Adjustments for:
Net unrealised (gains)/losses on investments		(1,294,148)			792,838
Net losses/(gains) on realisations of investments		363,572			(4,142,375)
Tax charge for current year		66,503			117,482
Decrease/(increase) in debtors		104,935			(128,689)
(Decrease)/increase in creditors		(35,677)			289,612
Net cash inflow from operations		710,301			947,117
Corporation tax paid		(117,456)			(30,088)
Net cash inflow from operating activities		592,845			917,029
Cash flows from investing activities
Sale of investments	8	4,531,646			10,217,251
Purchase of investments	8	(5,882,806)			(1,603,629)
Net cash (outflow)/inflow from investing activities		(1,351,160)			8,613,622
Cash flows from financing activities
Shares issued as part of Offer for Subscription (net of issue costs)		1,004,580			13,630,616
Equity dividends paid	7	(2,150,852)			(11,584,256)
Purchase of own shares		(1,066,736)			(408,125)
Net cash (outflow)/inflow from financing activities		(2,213,008)			1,638,235
Net (decrease)/increase in cash and cash equivalents		(2,971,323)			11,168,886
Cash and cash equivalents at start of year		22,342,770			11,173,884
Cash and cash equivalents at end of year		19,371,447			22,342,770
Cash and cash equivalents comprise:
Cash at bank and in hand	9	2,541,058			2,847,849
Cash equivalents	9	16,830,389			19,494,921

Notes to the Financial Statements for the year ended 31 December 2018

1              Company Information

Mobeus Income and Growth 4 VCT plc is a public limited company incorporated in England, registration number 03707697. The registered office is 30 Haymarket, London, SW1Y 4EX.

2              Basis of preparation of the Financial Statements

A summary of the principal accounting policies, all of which have been applied consistently throughout the year are set out next to the related disclosure throughout the Notes to the Financial Statements. All accounting policies are included within an outlined box at the top of each relevant note.

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 ("FRS102"), with the Companies Act 2006 and the 2014 Statement of Recommended practice, 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' ('the SORP') (updated in January 2017) issued by the Association of Investment Companies. The Company has a number of financial instruments which are disclosed under FRS102 s11/12 as shown in note 15.

3              Income

Dividends receivable on quoted equity shares are brought into account on the ex-dividend date.  Dividends receivable on unquoted equity shares are brought into account when the Company's right to receive payment is established and there is no reasonable doubt that payment will be received.

Interest income on loan stock is accrued on a daily basis. Provision is made against this income where recovery is doubtful or where it will not be received in the foreseeable future. Where the loan stocks only require interest or a redemption premium to be paid on redemption, the interest and redemption premium is recognised as income or capital as appropriate once redemption is reasonably certain.

When a redemption premium is designed to protect the value of the instrument holder's investment rather than reflect a commercial rate of revenue return the redemption premium is recognised as capital. The treatment of redemption premiums is analysed to consider if they are revenue or capital in nature on a company by company basis. Accordingly, the redemption premium recognised in the year ended 31 December 2018 has been classified as capital and has been included within gains on investments.

	2018	2017
	£	£
Income from bank deposits	34,179	28,578
Income from investments
-      from equities	290,937	176,448
-      from OEIC funds	101,193	25,097
-      from loan stock	1,824,903	2,145,824
-      from interest on preference share dividend arrears	11,061	92
	2,228,094	2,347,461
Other income	1,645	5,610
Total income	2,263,918	2,381,649
Total income comprises
Dividends	392,130	201,545
Interest	1,870,143	2,174,494
Other income	1,645	5,610
	2,263,918	2,381,649

Total loan stock interest due but not recognised in the year was £638,642 (2017: £257,512). The increase over the year is due to the provision of interest of one investee company and another investee company utilising an agreed payment holiday for part of the year.

4              Investment Adviser's fees and other expenses

All expenses are accounted for on an accruals basis.

a)            Investment Adviser's fees and performance fees

25% of the Investment Adviser's fees are charged to the revenue column of the Income Statement, while 75% is charged against the capital column of the Income Statement. This is in line with the Board's expected long-term split of returns from the investment portfolio of the Company.

100% of any performance incentive fee payable for the year is charged against the capital column of the Income Statement, as it is based upon the achievement of capital growth.

	Revenue	Capital	Total	Revenue	Capital	Total
	2018	2018	2018	2017	2017	2017
	£	£	£	£	£	£
Mobeus Equity Partners LLP
Investment Adviser's fees	311,111	933,333	1,244,444	293,312	879,937	1,173,249

Under the terms of a revised investment management agreement dated 12 November 2010, Mobeus Equity Partners LLP ("Mobeus") provides investment advisory, administrative and company secretarial services to the Company, for a fee of 2% per annum of closing net assets, calculated on a quarterly basis by reference to the net assets at the end of the preceding quarter, plus a fixed fee of £115,440 per annum, the latter being subject to indexation, if applicable. In 2013, Mobeus agreed to waive such further increases due to indexation, until otherwise agreed with the Board.

The Investment Adviser's fee includes provision for a cap on expenses excluding irrecoverable VAT and exceptional items set at 3.4% of closing net assets at the year end. In accordance with the investment management agreement, any excess expenses are borne by the Investment Adviser. The excess expenses during the year amounted to £nil (2017: £nil). With effect from 1 April 2018, the Investment Advisors fee upon the net funds raised from use of the over-allotment facility of £5 million under the 2017/18 offer has been reduced from 2% to 1% per annum for one year.

The Company is responsible for external costs such as legal and accounting fees, incurred on transactions that do not proceed to completion ("abort expenses") subject to the cap on total annual expenses referred to above.  No such costs have been incurred in the current or previous year.

In line with common practice, Mobeus retains the right to charge arrangement and syndication fees and directors' or monitoring fees to companies in which the Company invests. The Investment Adviser received fees totalling £351,713 (2017: £285,904) during the year ended 31 December 2018, being £146,450 (2017: £99,523) for arrangement fees and £205,263 (2017: £186,381) for acting as non-executive directors on a number of investee company boards. These fees attributable to MIG 4 VCT are based upon the investment allocation applicable to MIG 4 VCT which applied at the time of each investment. These figures are not part of these financial statements.

b)            Incentive fee agreement

Under the terms of a separate agreement dated 1 November 2006, from the end of the accounting period ending on 31 January 2009 and in each subsequent accounting period throughout the life of the company, the Investment Adviser will be entitled to receive a performance related incentive fee of 20% of the dividends paid in excess of a "Target Rate" comprising firstly, an annual dividend target of 6% of the net asset value per share at 5 April 2007 (indexed each year for RPI) and secondly a requirement that any cumulative shortfalls below the 6 per cent hurdle must be made up in later years, while any excess is not carried forward, whether a fee is payable for that year or not. Payment of a fee is also conditional upon the

average Net Asset Value ("NAV") per share for each such year equalling or exceeding the average Base NAV per share for the same year. The performance fee will be payable annually. No incentive fee is payable to date.

c)            Offer for Subscription fees

	2018	2017
	£m	£m
Funds raised by MIG 4 VCT	1.04	13.96
Offer costs payable to Mobeus at 3.25% of funds raised by MIG4 VCT	0.03	0.45

Under the terms of an Offer for Subscription, with the other Mobeus advised VCTs, launched on 6 September 2017, Mobeus was entitled to fees of 3.25% of the investment amount received from investors. This amount totalled £0.64 million for the final two allotments during the year across all four VCTs, out of which all the costs associated with the allotment were met, excluding any payments to advisers facilitated under the terms of the Offer.

d)         Other expenses

Expenses are charged wholly to revenue, with the exception of expenses incidental to the acquisition or disposal of an investment, which are written off to the capital column of the Income Statement or deducted from the disposal proceeds as appropriate.

	2018	2017
	£	£
Directors' remuneration (including NIC of £9,099 (2017: £8,313)) - note i)	105,349	98,813
IFA trail commission	61,863	86,124
Broker's fees	12,000	12,000
Auditor's fees - Audit of Company (excluding VAT)	24,088	23,832
-  Audit related assurance services - note ii) (excluding VAT)	4,613	4,562
-    tax compliance services - note ii) (excluding VAT)	1,922	1,358
Registrar's fees	39,252	65,302
Printing	48,085	42,480
Legal & professional fees	10,590	7,174
VCT monitoring fees	9,600	9,600
Directors' insurance	7,631	8,152
Listing and regulatory fees	38,874	53,507
Sundry	14,564	9,302
Other expenses	378,431	422,206

Note i): See the Directors' Remuneration Report in the Annual Report, which excludes the NIC above. The key management personnel are the three non-executive Directors. The Company has no employees.

Note ii): The audit related assurance services are in relation to the review of the Financial Statements within the Company's Half Year Report. The Audit Committee reviews the nature and extent of these services to ensure that auditor independence is maintained. In this regard, while iXBRL services are carried out by the auditor, the majority of tax compliance services are carried out by another firm, so are included within legal and professional fees.

5      Taxation on profit on ordinary activities

The tax expense for the year comprises current tax and is recognised in profit or loss. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

Any tax relief obtained in respect of adviser fees allocated to capital is reflected in the capital reserve - realised and a corresponding amount is charged against revenue. The tax relief is the amount by which corporation tax payable is reduced as a result of these capital expenses.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the Company's taxable profits and its results as stated in the Financial Statements that arise from the inclusion of gains and losses in the tax assessments in periods different from those in which they are recognised in the Financial Statements.

Deferred tax is measured at the average tax rates that are expected to apply in the years in which the timing differences are expected to reverse based on tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred tax is measured on a non-discounted basis.

A deferred tax asset would be recognised only to the extent that it is more likely than not that future taxable profits will be available against which the asset can be utilised.

	2018	2018	2018	2017	2017	2017
	Revenue	Capital	Total	Revenue	Capital	Total
	£	£	£	£	£	£
a)  Analysis of tax charge:
UK Corporation tax on profits/(losses) for the year	243,837	(177,334)	66,503	286,870	(169,388)	117,482
Total current tax charge/(credit)	243,837	(177,334)	66,503	286,870	(169,388)	117,482
Corporation tax is based on a rate of 19% (2017: 19.25%)
b) Profit/(loss) on ordinary activities before tax	1,574,376	(2,757)	1,571,619	1,666,131	2,469,600	4,135,731
Profit/(loss) on ordinary activities multiplied by main company rate of corporation tax in the UK of 19% (2017: 19.25%)	299,131	(523)	298,608	320,730	475,398	796,128
Effect of:
UK dividends not taxable	(55,278)	-	(55,278)	(33,966)	-	(33,966)
Unrealised (gains)/losses not taxable	-	(245,889)	(245,889)	-	152,621	152,621
Realised losses/(gains) not taxable	-	69,078	69,078		(797,407)	(797,407)
Overprovision in prior period	(26)	-	(26)	-	-	-
Unrelieved expenditure	10	-	10	106	-	106
Actual tax charge/(credit)	243,837	(177,334)	66,503	286,870	(169,388)	117,482

Tax relief relating to investment adviser fees is allocated between revenue and capital where such relief can be utilised.

No asset of liability has been recognised for deferred tax in relation to capital gains or losses on revaluing investments as the Company is exempt from corporation tax in relation to capital gains or losses as a result of qualifying as a Venture Capital Trust.

There is no potential liability to deferred tax (2017: £nil).  There is no unrecognised deferred tax asset in 2018 (2017: £nil).

6   Basic and diluted earnings per share

	2018	2017
	£	£
Total earnings after taxation:	1,505,116	4,018,249
Basic and diluted earnings per share (note a)	2.20p	7.59p
Net revenue from ordinary activities after taxation	1,330,539	1,379,261
Basic and diluted revenue return per share (note b)	1.95p	2.60p
Net unrealised capital gains/(losses) on investments	1,294,148	(792,838)
Net realised capital (losses)/gains on investments	(363,572)	4,142,375
Capital expenses (net of taxation)	(755,999)	(710,549)
Total capital return	174,577	2,638,988
Basic and diluted capital return per share (note c)	0.25p	4.99p
Weighted average number of shares in issue in the year	68,499,583	52,973,939

Notes:                                                                  

a) Basic earnings per share is total earnings after taxation divided by the weighted average number of shares in issue.

b)  Revenue earnings per share is the revenue earnings after taxation divided by the weighted average number of shares in issue.

c)  Capital earnings per share is the total capital earnings after taxation divided by the weighted average number of shares in issue.

There are no instruments that will increase the number of shares in issue in future. Accordingly, the above figures currently represent both basic and diluted earnings per share.

7  Dividends paid and payable

Dividends payable are recognised as distributions in the Financial Statements when the Company's liability to pay them has been established. This liability is established for interim dividends when they are paid, and for final dividends when they are approved by the shareholders, usually at the Company's Annual General Meeting.

A key judgement in applying the above accounting policy is in determining the amount of minimum dividend to be paid in respect of a year. The Company's status as a VCT means it has to comply with Section 259 of the Income Tax Act 2007, which requires that no more than 15% of the income from shares and securities in a year can be retained from the revenue available for distribution for the year.

Amounts recognised as distributions to equity shareholders in the year:
Dividend	Type	For year ended 31 December	Pence per share	Date Paid	2018                        £	2017                               £
Second interim	Income	2016	1.00p	17/03/2017	-	490,434
Second interim	Capital*	2016	6.00p	17/03/2017	-	2,942,602
Interim	Income	2017	1.00p	11/09/2017	-	497,394
Interim	Capital	2017	2.00p	11/09/2017		994,788
Interim	Capital*	2017	15.00p	11/09/2017	-	7,460,911
Second interim	Income	2017	1.00p	21/12/2017	-	672,563
Second interim	Capital	2017	2.00p	21/12/2017	-	1,345,126
Interim	Capital*	2018	4.00p	19/06/2018	2,734,344	-
					2,734,344**	14,403,818

* - 6.00p of the dividend paid on 17 March 2017, 15.00p of the dividend paid on 11 September 2017, and the 4.00p dividend paid on 19 June 2018 were paid out of the Company's special distributable reserve.

** - £2,734,344 (2017: £14,403,818) disclosed above differs to that shown in the Statement of Cash Flows of £2,150,852 (2017: £11,584,256) due to £583,492 (2017: £2,819,562) of new shares issued as part of the DIS Scheme.

Proposed distributions to equity holders after the year end
Dividend	Type	For the year ended 31 December	Pence per share	Date Payable	2018 £	2017 £
Final	Income	2018	1.75p	28/05/2019	1,194,952	-
Final	Capital*	2018	2.25p	28/05/2019	1,536,368	-
					2,731,320	-

* This dividend will be paid out of the Company's special distributable reserve.

Any proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.

Set out below are the total income dividends payable in respect of the financial year, which is the basis on which the requirements of Section 274 of the Income Tax Act 2007 are considered.

Recognised income distributions in the financial statements for the year
Dividend	Type	For year ended 31 December	Pence per share	Date paid/payable	2018                        £	2017                               £
Revenue available for distribution by way of dividends for the year					1,330,539	1,379,261
Interim	Income	2017	1.00p	11/09/2017	-	497,394
Second interim	Income	2017	1.00p	21/12/2017	-	672,563
Final	Income	2018	1.75p	28/05/2019	1,194,952	-
Total income dividends for the year					1,194,952	1,169,957

8   Investments at fair value

The most critical estimates, assumptions and judgements relate to the determination of the carrying value of investments at "fair value through profit and loss" (FVTPL). All investments held by the Company are classified as FVTPL and measured in accordance with the International Private Equity and Venture Capital Valuation ("IPEV") guidelines, as updated in December 2018. 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.

Purchases and sales of unlisted investments are recognised when the contract for acquisition or sale becomes unconditional. For investments actively traded on 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 where the terms of the disposal state that consideration may be received at some future date and, subject to the conditionality and materiality of the amount of deferred consideration, an estimate of the fair value, discounted for the true value of money, may be recognised through the Income Statement. In other cases, the proceeds will only be recognised once the right to receive payment is established and there is no reasonable doubt that payment will be received.

Unquoted investments are stated at fair value by the Directors at each measurement date in accordance with appropriate valuation techniques, which are consistent with the IPEV guidelines:

(i)  Each investment is considered as a whole on a 'unit of account' basis, alongside consideration of:

The price of new investments made, if deemed to be made as part of an orderly transaction, are considered to be at fair value at the date of the transaction. The inputs that derived the investment price are calibrated for any changes in light of more recent events or changes in the market performance of the investee company.  The valuation bases used are the following:

-      a multiple basis. The shares may be valued by applying a suitable price-earnings ratio, revenue or gross profit multiple to that company's historic, current or forecast post-tax earnings before interest and amortisation, or revenue, or gross profit (the ratio used being based on a comparable sector but the resulting value being adjusted to reflect points of difference identified by the Investment Adviser compared to the sector including, inter alia, scale and liquidity).

or:-

-      where a company's underperformance against plan indicates a diminution in the value of the investment, provision against the price of a new investment is made, as appropriate.

(ii)   Premiums, to the extent that they are considered capital in nature, and that they will be received upon repayment of loan stock investments, are accrued at fair value when the Company receives the right to the premium and when considered recoverable.

(iii)   Where a multiple or the price of recent investment less impairment basis is not appropriate and overriding factors apply, a discounted cash flow, net asset valuation or realisation proceeds basis may be applied.

Capital gains and losses on investments, whether realised or unrealised, are dealt with in the profit and loss and revaluation reserves and movements in the period are shown in the Income Statement.

All investments are initially recognised and subsequently measured at fair value. Changes in fair value are recognised in the Income Statement.

A key judgement made in applying the above accounting policy relates to investments that are permanently impaired. Where the value of an investment has fallen permanently below the price of recent investment, 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 Investment Adviser, 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.

The methods of fair value measurement are classified into hierarchy based on the reliability of the information used to determine the valuation.

- Level 1 - Fair value is measured based on quoted prices in an active market.

- Level 2 - Fair value is measured based on directly observable current market prices or indirectly being derived from market prices.

- Level 3 - Fair value is measured using valuation techniques using inputs that are not based on observable market data.

Movements in investments during the year are summarised as follows:

	Traded on AIM	Unquoted equity shares		Unquoted preference shares	Unquoted Loan stock	Total
	£	£		£	£	£
Cost at 31 December 2017	200,028	14,062,390		13,432	18,890,038	33,165,888
Unrealised gains/(losses) at 31 December 2017	74,821	(1,274,615)		440,657	1,277,089	517,952
Permanent impairment in value of investments as at 31 December 2017	-	(2,135,400)		-	(64,387)	(2,199,787)
Valuation at 31 December 2017	274,849	10,652,375		454,089	20,102,740	31,484,053
Purchases at cost	-	3,630,553		-	2,252,253	5,882,806
Sale proceeds (Notes a and b)	-	(499,486)		(114,706)	(1,158,689)	(1,772,881)
Net realised gains/(losses) in the year	-	344,371		-	(707,943)	(363,572)
Unrealised (losses)/gains in the year (Note c)	(66,505)		1,684,957	-	(550,198)	1,068,2541
Valuation at 31 December 2018	208,344	15,812,770		339,383	19,938,163	36,298,660
Cost at 31 December 2018	200,028	16,903,109		13,382	19,786,223	36,902,742
Unrealised gains at 31 December 2018	8,316	1,048,683		326,001	239,578	1,622,5781
Permanent impairment in value of investments at 31 December 2018 (Note d)	-	(2,139,022)		-	(87,638)	(2,226,660)
Valuation at 31 December 2018	208,344	15,812,770		339,383	19,938,163	36,298,660

Details of investment transactions such as disposal proceeds, valuation movements cost and carrying value at the end of the previous year are contained in the Investment Portfolio Summary.

Net unrealised gains above of £1,068,254 differ from that shown in the Income Statement of £1,294,148.  The difference of £225,894 is the estimated fair value of contingent consideration due in relation to the sale of Entanet Holdings in the prior year, recognised at the Balance Sheet date which has been included within Other debtors in note 10.  The £225,894 contingent consideration also explains the difference between unrealised gains at 31 December 2018 above of £1,622,578 and that shown within the Revaluation Reserve on the balance sheet of £1,848,472.  A further sum of £250,994 is potentially payable on 1 August 2019.  There are conditions attached to this deferred consideration such that the amount receivable is uncertain and so has not been recognised in the current year's financial statements.

Note a) Disposals of investment portfolio companies during the year were:

Company	Type	Investment cost	Disposal proceeds	Valuation at 31 December 2017	Realised (loss)/ gain in year
		£	£	£	£
Fullfield Limited (Motorclean)	Realisation	1,131,444	638,560	1,185,517	(546,957)
Lightworks Software Limited	Realisation	9,329	197,433	33,847	163,586
SparesFinder Limited	Realisation	250,854	159,297	-	159,297
Hemmels Limited1	Realisation and permanent impairment	493,830	234,826	493,830	(282,254)
The Plastic Surgeon Holdings Limited (formerly TPSFF Holdings Limited)	Loan repayments and repurchase of preference shares	144,307	287,815	287,815	-
MPB Group Limited	Loan repayment	112,194	112,194	112,194	-
Other		3,994	142,756	-	142,756
		2,145,952	1,772,881	2,113,203	(363,572)

¹ - New investment in year.

Note b) Investment proceeds shown above of £1,772,881 differs from the sale proceeds shown in the Statement of Cash flows of £4,531,646 by £2,758,765. These funds, received in 2018, related to the disposal of Gro Group at the end of 2017 and were held in debtors at the 2017 year end.

Note c) The major components of the increase in unrealised valuations of £1,068,254 in the year were increases of £571,424 in EOTH Limited, £524,542 in The Plastic Surgeon Holdings Limited (formerly TPSFF Holdings Limited), £352,059 in CGI Creative Graphics International Limited, £320,085 in Pattern Analytics Limited (trading as Biosite), £305,533 in Proactive Group Holdings Inc, £288,102 in MPB Group Limited, and £278,408 in ASL Technology Holdings Limited. This increase was partly offset by the falls of £704,223 in BookingTek Limited, £681,822 in Manufacturing Services Investment Limited (trading as Wetsuit Outlet), £537,853 in Veritek Global Limited, £376,373 in Redline Worldwide Limited, and £330,491 in Tharstern Group Limited.

The decrease in unrealised valuations of the loan stock investments above reflects the changes in the entitlement to loan premiums, and/or in the underlying enterprise value of the investee company. The decrease does not arise from assessments of credit risk or market risk upon these instruments.

Note d) During the year, permanent impairments of the cost of investments have increased from £2,199,787 to £2,226,660. The increase of £26,873 is due the impairments of two investee companies, offset slightly by the disposal of a company that had previously been impaired.

9      Cash at bank and Current Investments

Cash equivalents, for the purposes of the Statement of Cash flows, comprises bank deposits repayable on up to three months' notice and funds held in OEIC money-market funds. Current asset investments are the same but also include bank deposits that mature after three months. Current asset investments are disposable without curtailing or disrupting the business and are readily convertible into known amounts of cash at their carrying values at immediate or up to three months' notice. Cash, for the purposes of the Statement of Cash Flows is cash held with banks in accounts subject to immediate access. Cash at bank in the Balance Sheet is the same.
	2018	2017
	£	£
OEIC Money market funds	16,830,389	19,494,921
Cash equivalents per Statement of Cash Flows	16,830,389	19,494,921
Bank deposits that mature after three months	2,000,000	2,000,000
Current asset investments	18,830,389	21,494,921
Cash at bank	2,541,058	2,847,849

10  Post balance sheet events

On 31 January 2019, the Plastic Surgeon Holdings Limited (formerly TPSFF Holdings Limited) carried out a further repurchase of preference shares in which £0.06 million of proceeds were received by the Company.

On 15 February 2019, £0.25 million of contingent consideration was received as part of the sale of Entanet Holdings in August 2017.

11  Statutory information

The financial information set out in these statements does not constitute the Company's statutory accounts for the year ended 31 December 2017 but is derived from those accounts.  Statutory accounts will be delivered to the Registrar of Companies after the Annual General Meeting.  The auditors have reported on these accounts and their report was unqualified and did not contain a statement under section 498(2) of the Companies Act 2006.

12  Annual Report

The Annual Report will be published on the Company's website at www.migvct.co.uk shortly and shareholders who have not requested a hard copy of the report will shortly receive notification from the Company on how to download a pdf of the Report from the website.  Shareholders and members of the public who wish to receive a hard copy of the Annual Report, may request a copy by writing to the Company Secretary, Mobeus Equity Partners LLP, 30 Haymarket (4th floor), London SW1Y 4EX or by email: vcts@mobeus.co.uk.

13  Annual General Meeting

The Annual General Meeting of the Company will be held at 2.00 p.m. on Friday, 10 May 2019 at The Clubhouse, 8 St James's Square, London SW1Y 4JU.

Contact details for further enquiries:

Robert Brittain or Robert King of Mobeus Equity Partners LLP (the Company Secretary) on 020 7024 7600 or by email to info@mobeus.co.uk.

DISCLAIMER

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, of forms part of, this announcement.

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.

END

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