Maven Income and Growth VCT 5 reports resilient first half as exits fund dividend

The headline numbers

Maven Income and Growth VCT 5 delivered what the board describes as a resilient performance in the six months to 31 May 2026, although the net asset value, or NAV, per share moved lower.

NAV represents the value of the trust's assets after liabilities. It ended the period at 29.53p per share, compared with 30.96p at 30 November 2025. NAV total return, which reflects both NAV and distributions made to shareholders, stood at 85.58p per share.

The portfolio recorded a £1.25 million net loss on investments, while the total return attributable to shareholders was a loss of £1.62 million. This translated into a total loss of 0.63p per share.

Key figure	31 May 2026	30 November 2025
NAV per share	29.53p	30.96p
Net assets	£78.23 million	£71.05 million
Cash and cash equivalents	£22.12 million	£12.72 million
Mid-market share price	28.80p	28.80p
Discount to NAV	2.47%	6.98%

The increase in net assets and cash largely reflects the successful Offer for Subscription. It closed early and fully subscribed after raising £12.5 million, including a £5 million over-allotment facility.

That fresh capital leaves Maven Income and Growth VCT 5 with significant liquidity for new investments, follow-on funding, dividends and share buy-backs. However, investors should distinguish between growth in the size of the trust and the decline in value on a per-share basis.

A 0.75p interim dividend

The board declared an interim dividend of 0.75p per ordinary share for the year ending 30 November 2026. It will be paid on 28 August 2026 to shareholders on the register at 31 July.

After this payment, total tax-free distributions since the VCT's launch will amount to 56.80p per share. The tax treatment depends on each shareholder's circumstances.

Management uses an annual dividend equal to 6% of the previous year-end NAV per share as a guide. This is a target rather than a commitment, with future payments dependent on factors including investment realisations, distributable reserves, revenue and compliance with VCT qualification rules.

Investors should also remember that a dividend payment reduces NAV by the amount distributed. It is a return of value to shareholders, not free additional value.

Profitable exits provided useful validation

The clearest positives came from two private company realisations.

The partial exit from AI-enabled legal software business Summize generated £1.3 million of cash and an initial return of 3.8 times cost. Crucially, the VCT retained a substantial equity stake, leaving it exposed to potential future growth. Maven also made a new qualifying investment in Summize as part of the wider £40 million funding round.

Cybersecurity specialist CYSIAM delivered a total return of 3.6 times cost and more than £1.3 million in cash proceeds following its full exit in April.

These transactions matter because private company valuations can be uncertain until buyers are prepared to pay real money. The proceeds also gave the board greater confidence to declare the interim dividend.

Not every disposal was successful. The exit from fintech business Delio resulted in a £296,000 realised loss against cost, while DiffusionData generated a realised loss of £875,000. The post-period exit from Secaro completed marginally above investment cost, with the potential for further contingent proceeds.

Overall, realisations during the period generated sales proceeds of £4.51 million and a realised gain of £514,000 against cost.

Portfolio progress was mixed

The VCT backed one new private company during the period, investing £209,000 in Esk Film Services. Esk produces technology-enabled live entertainment experiences using intellectual property licensed from rights holders. The business has delivered more than 550 shows since its launch in 2022.

A further £1.64 million was provided to 12 existing private portfolio companies. This included investments in Summize, Liftango, Automated Analytics, Sensoteq and iPac Packaging Innovations.

Several holdings were reported to be progressing well. Annual recurring revenue and client numbers at RiskSmart more than doubled over 12 months, while annual recurring revenue at iAM Compliant has more than doubled since Maven first invested in 2023. MirrorWeb and Automated Analytics also continued to report strong growth.

However, early-stage investing inevitably brings failures alongside successes. Maven did not provide, or was unable to provide, further support to DiffusionData, Flow, Fixtuur and XR Games. Their valuations were written down in full following operational challenges.

Those write-downs are a useful reminder that diversification is central to the VCT's approach. At the period end, the portfolio contained 133 unlisted and quoted investments with a total cost of £58.9 million, excluding cash equivalents.

Valuation pressure remains a concern

The board said geopolitical uncertainty and AI-related valuation recalibrations affected the wider market backdrop. Although most unlisted portfolio companies were not directly hit operationally, valuation multiples were reviewed to reflect broader market conditions.

Software companies have faced particular scrutiny as investors assess whether AI will strengthen or disrupt existing business models. Maven described the net effect of the valuation realignment as relatively modest, but the unlisted portfolio still recorded £1.44 million of depreciation during the period.

The AIM portfolio increased in value by 1.3%, compared with a 9.6% rise in the FTSE AIM All-Share Index. Maven noted that the index's performance was driven mainly by sectors outside the VCT qualifying remit. No new AIM investments were completed.

Strong liquidity creates options

Cash and cash equivalents rose to £22.12 million, representing 28.3% of net assets. The combined treasury management portfolio and uninvested cash was generating a blended annualised yield of 3.1%.

This liquidity gives Maven room to support existing holdings and pursue new opportunities. Two new private investments, Applied AGI and cybersecurity provider Xentra, completed after the period ended.

There is a balance to strike. Holding cash offers protection and flexibility, but long-term returns will depend on management deploying it into successful qualifying investments without rushing because of VCT investment requirements.

The VCT also repurchased 5.49 million shares for £1.59 million during the half year. Its stated aim is to maintain the share price at a discount of approximately 5% to the latest published NAV, subject to liquidity, market conditions and VCT qualification. At 31 May, the shares traded at a 2.47% discount, down from 6.98% at the previous year end.

What should investors take away?

This was a mixed but reasonably steady half year. NAV per share declined and several portfolio companies were written down completely. The results also show how exposed an early-stage portfolio can be to changing valuation multiples and company-specific execution problems.

On the positive side, the Summize and CYSIAM exits generated meaningful cash returns, the fundraising was fully subscribed, and the balance sheet has ample liquidity. Maven has also continued to invest in growing private businesses while retaining capacity for further deployment.

Investors should also note the regulatory change that reduced initial income tax relief on newly issued VCT shares from 30% to 20% from 6 April 2026. At the same time, higher investment and gross asset limits have increased the range and scale of companies that VCTs can support.

The second half will be shaped by how effectively Maven invests its cash, whether portfolio growth converts into higher valuations and whether further exits can support the targeted dividend policy. The financial position is strong, but the fall in NAV and full write-downs show that the underlying risks remain very real.