## Mobeus Income
## & Growth 4 VCT plc
## A Venture Capital Trust
## Annual Report & Financial Statements
## for year ended 31 December 2022
### Mobeus Income & Growth 4 VCT plc (the “Company”) is a Venture Capital Trust (“VCT”)
### advised by Gresham House Asset Management Limited (“Gresham House” or “Investment
### Adviser”) investing primarily in established, unquoted companies.
### The Objective of the Company is to provide investors with a regular income stream by way of
### tax-free dividends and to generate capital growth through portfolio realisations which can be
### distributed by way of additional tax-free dividends, while continuing at all times to qualify as a
### VCT.
DIVIDEND POLICY
### The Company seeks to pay dividends at least annually out of income and capital as
### appropriate, and subject to fulfilling certain regulatory requirements.
## Contents
Financial Highlights 1
Chair’s Statement 2
Strategic Report 6
- Objective 6
- Summary of Investment Policy 6
- Summary of VCT Legislation 6
- The Company and its Business Model 7
- Performance and Key Performance Indicators 8
- Investment Adviser’s Review 12
- Principal Investments in the Portfolio at 31 December 2022 by valuation 18
- Investment Portfolio Summary 22
- Key Policies 28
- Investment Policy 28
- Stakeholder Engagement and Directors’ Duties 29
- Principal and emerging risks, management and regulatory environment 32
Reports of the Directors 35
- Board of Directors 35
- Directors’ Report 36
- Corporate Governance Statement 40
- Report of the Audit & Risk Committee 43
- Directors’ Remuneration Report 45
- Statement of Directors’ Responsibilities 49
Independent Auditor’s Report 50
Financial Statements 55
Information for Shareholders 77
- Shareholder Information 77
- Notice of the Annual General Meeting 79
- Glossary of terms 82
- Corporate Information 83
# Financial Highlights

Results for the year ended 31 December 2022

Net assets: **£83.54 million**
Net asset value ("NAV") per share: **80.05 pence**

- Net asset value ("NAV") total return¹ per share of (15.5)%.
- Share price total return¹ per share of (8.4)%.
- Dividends paid in respect of the year totalled 10.00 pence per share. Cumulative dividends paid¹ to date stand at 153.20 pence per share.
- £3.78 million was invested into four new growth capital investments and six existing portfolio companies during the year.
- Net unrealised losses of £(15.45) million in the year
- The Company realised investments totalling £8.70 million of cash proceeds and generated net realised gains in the year of £0.74 million.

## Cumulative total return¹ per share (NAV basis)

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

![img-0.jpeg](img-0.jpeg)

¹ - Definitions of key terms and alternative performance measures shown above and throughout this report are shown in the Glossary of terms on page 82.

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.ingfact.co.uk, where they can be downloaded by clicking on "table" under "Reviewing the performance of your investment" on the home page.

On 1 July 2006, Mobeus Equity Partners LLP became sole Investment Adviser to the Company. The Investment Adviser novated to Gresham House on 1 October 2021. The cumulative total return per share (NAV basis) at this date was 122.51 pence.

Annual Report & Financial Statements 2022 | Mobeus Income & Growth 4 VCT plc

1
## Chair’s Statement
### I present the Annual Report of continued to provide finance to new and pleasing that your Company has shown
existing investee companies with two resilience over the medium and longer
### Mobeus Income & Growth 4
notable exit events during the year under terms when measured against other
### VCT plc for the year ended review in the form of Media Business sector participants. For further details on
insight (MBI) and Equip Outdoor the performance of the Company, please
### 31 December 2022.
Technologies (EOTH). The recent equity refer to the Strategic Report on pages 6
disposal of EOTH in November to 34.
Overview
contributing to a 6.9x return to date was a
The high point for many technology and particular high point as we anticipate a
Dividends
Chair’s Statement
growth markets was seen towards the quieter exit environment in 2023 than in
The Board continues to be committed to
end of 2021 - after which they were previous years.
providing an attractive dividend stream to
impacted by global events such as the
The Board was pleased to hear of the UK Shareholders and was pleased to
Russian invasion of Ukraine, the highest
Government’s commitment to extend the announce an interim dividend of 4.00
rates of inflation for over a decade and
VCT ‘sunset clause’ beyond the end date pence per share which was paid on 8July
accompanying interest rate increases,
of 5 April 2025. Without an extension, 2022 to Shareholders on the register on
political turmoil in the UK and across
investor income tax relief on new VCT 6 June 2022. A second interim dividend
Europe and the increasing cost of living.
share subscriptions will expire after that of 6.00 pence per share, was paid on
The recent UK Budget sought to stimulate
date. Shareholders should note however 7 November 2022 to Shareholders on the
the economy, but we can expect
that, to date, the VCT industry has seen register on 23September 2022 and
continuing challenges for portfolio
no further detail on this subject and any together, this brings the total dividends
companies particularly with respect to
extension of the date will probably paid in respect of the financial year ended
increased costs and subdued consumer
require parliamentary approval. 31 December 2022 to 10.00 pence per
demand.
share. To date, cumulative dividends paid
The Mobeus VCTs’ joint fundraise which since inception total 153.20 pence per
Performance
was launched in January 2022 reached share. The Company has now met or
For the year ended 31 December 2022,
its application capacity in less than 24 exceeded the Board’s dividend target of
the Company experienced a negative
hours. Given the level of investor paying at least 4.00 pence per share in
NAV total return per share of (15.5)% (2021:
demand, and a continuing pipeline of respect of each financial year over the
+42.7%) and a negative share price total
investment opportunities, your Board last ten years.
return of (8.4)% (2021: +50.4%). The
agreed later in that year, that a further
difference between the share price and As Shareholders have been advised
fundraise would be appropriate. This was
NAV total returns arises principally due to previously, the reorientation of the
issued across all four Mobeus VCTs in
the timing of NAV announcements which portfolio under the VCT rules to younger
October 2022 and also reached its
are usually made on a date later than the growth capital investments as well as the
capacity in a short timeframe, securing
date to which they relate and is explained realisations of older, more mature
£16 million for the Company (including the
more fully under Performance in the companies that have formerly provided a
£5 million over-allotment facility) early in
Strategic Report on pages 8 to 11. The good income yield, are likely to make
November 2022. This outstanding level
negative NAV total return for the year was dividends harder to achieve from income
of support is a very encouraging
principally a result of the unrealised loss alone in any given year. The Board aims
demonstration of the confidence that
in the value of investments still held, to distribute realised profits (such as
investors have in the Company and your
partially offset by realised gains achieved income and gains from realisations)
Board is delighted to welcome an equal
above previous carrying values. achieved in a year as dividends but notes
mix of further investment from our valued
that a reduction in contracted loan
existing Shareholders and also from new The reduction in net asset value resulted
interest income was seen during the year
investors in the Company. These from falls in the valuation of the portfolio
by the Company. The Board, therefore,
additional cash resources will enable the over the financial year. This has primarily
continues to monitor the sustainability of
Company to take advantage of new and been driven by lower benchmark market
the annual dividend target. Shareholders
follow-on investment opportunities as comparables and, more recently, by
should also note that there may continue
previous experience has shown that softening investee company trading
to be circumstances where the Company
investing through the cycle can create performance. As is usually the case,
is required to pay dividends in order to
excellent returns over time. markets quickly factored in the expected
maintain its regulatory status as a VCT, for
impact of inflation and higher interest
It appears that higher inflation and the example, to stay above the minimum
rates on consumer spending and
Russian war in Ukraine have now become percentage of assets required to be held
business investment. The full extent of
daily news events. Post the year-end in qualifying investments. Such dividends
the impact of these on portfolio company
inflation remained stubbornly high paid in excess of net income and capital
trading will emerge over time.

| although, against almost all predictions, |  | gains achieved will cause the Company’s |
| --- | --- | --- |
| the UK economy has so far avoided going | At the end of the year under review the | NAV per share to reduce by a |
| into recession. | Company was ranked 4th over five years | corresponding amount. |

and 9th over ten years periods (out of 37
Challenges for portfolio companies are
and 31 Generalist VCTs respectively) in Dividend Investment Scheme
expected to continue during 2023, with a
the Association of Investment Companies’
combination of inflationary pressures and The Company’s Dividend Investment
analysis of NAV Cumulative Total Return.
lower customer demand. Your Company Scheme (“DIS”) provides Shareholders
Shareholders should note that the AIC’s
is well prepared for most scenarios with with the opportunity to reinvest their cash
rankings are based on the latest available
its strong liquidity available to support the dividends into new shares in the
published NAVs and therefore do not fully
portfolio and from the extensive planning Company at the latest published NAV per
reflect the NAV per share decrease
and preparation with each of the portfolio share. New VCT shares attract the same
reported by the Company up to 31
company’s management teams by tax reliefs as shares purchased through
December 2022. Nevertheless, it is
Gresham House. The Company has an Offer for Subscription. As part of the
2 2 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022 Report & Accounts 2015

| 4.00 pence per share dividend paid on 8 | mitigated by an uplift in Tharstern together | during the year. This was particularly |  |
| --- | --- | --- | --- |
| July 2022, 586,156 Ordinary shares were | with the exit proceeds received from EOTH | disappointing as the Company made a | Chair’s Statement |
| allotted to participants of the DIS at a | and MBI, which contributed to net realised | follow-on investment into the company in |  |
| price of 98.96 pence per share. For the | gains of £0.74 million. | May 2022 alongside the other Mobeus |  |
| further 6.00 pence per share dividend |  | VCTs. The company had secured some |  |

During the year, the Company invested a
paid on 7 November 2022, 1,129,699 impressive clients and funding was
total of £3.78 million into four new and six
Ordinary shares were allotted at a price of provided to drive product development in
existing portfolio companies (2021: £6.23
80.50 pence per share to DIS members. a premium brand which operated in the
million; four new, nine existing). New
emerging electric car charging market.
Shareholders wishing to take advantage of investments totalling £2.03 million were
Over the summer months however, a
the scheme for any future dividends can made into:
combination of global supply issues,
join the DIS by completing a mandate form
Proximity Insight: retail technology inflationary cost increases and the
available on the Company’s website,
software; removal of Government consumer
under the ‘Dividends’ heading, at:
support for the purchase of EV chargers
www.mig4vct.co.uk, or alternatively, Bidnamic: a marketing
swiftly impacted the company’s ability to
existing DIS members can opt-out by technology business;
continue trading and so necessitated the
contacting Link Group, using their details
FocalPoint: a GPS enhancement appointment of administrators.
provided under Corporate Information on
software supplier;
page 83. In a similarly disappointing development,
and
in December 2022, following repeated
Orri: an intensive day care and substantial falls in its share price,
Investment portfolio
provider for adults Parsley Box Group PLC delisted from the
The portfolio movements across the
with eating disorders AIM market and the shares were
year were as follows:
cancelled. It has subsequently re-
Additional portfolio funding totalling £1.75
registered as a private company.
million was provided to six existing
2022 2021 portfolio companies: More positively, the end of the year
£m £m brought an equity realisation of EOTH,
Caledonian a provider of UK
trading as both RAB and Lowe Alpine,
Opening portfolio value 65.58 41.68 Leisure: leisure and
with amounts received on completion of
experience breaks;
New and further investments 3.78 6.23 £5.05 million (including preference share
Northern Bloc: a dairy and allergen- dividends) generating a realised gain in
Disposal proceeds (8.70) (12.23)
free ice cream brand the year of £0.36 million. Total proceeds
Net realised gains 0.74 4.19 received over the life of this investment
RotaGeek: a workforce
Valuation movements (15.45) 25.71 are £6.56 million to date, a 6.9x multiple
management
of cost and an IRR of 23.2%. The
Net investment portfolio software system
(losses)/gains (14.71) 29.90 Company has retained its interest yielding
Andersen EV: a provider of premium
loan stock to continue to generate
Portfolio value at EV chargers
income in the future.
31 December 45.95 65.58
Vivacity: an AI and Urban
Also received in the year were deferred
Traffic Control
A number of investee companies have proceeds from Red Paddle and Vectair,
business

| experienced a decline in consumer |  |  | both investments realised in a previous |
| --- | --- | --- | --- |
| confidence with the resultant impact on | Bleach London: a hair colourants |  | year generating further realised gains |
| trading during the recent challenging |  | brand | totalling £0.40 million. |

environment. There was a fall of £14.71
The Company generated total proceeds During these challenging times, the
million in the overall value of the portfolio
of £8.70 million in the year to management of the portfolio is
across the year to 31 December 2022
31 December 2022 comprising £8.25 undeniably critical, and the Investment
(2021: increase of £29.90 million), or a fall
million from full or partial realisations as Adviser has been, and is, focused on
of 22.4% on a like-for-like basis compared
well as other capital receipts of £0.45 deploying its Talent Management team to
to the value of the portfolio at the start of
million. Further details are provided support the investments. Follow-on
the year.
below: investments are expected to remain a
Notably, a significant amount of the fall of significant feature of growth capital
In June 2022, the Company realised its
£14.71 million relates to Virgin Wines which investee companies as they seek to
investment in MBI generating proceeds of
declined by £6.89 million. Virgin Wines is achieve scale and move to profitability.
£3.98 million from the sale (including
an AIM-listed investment, which has Follow-on investment requests are
deferred proceeds and loan repayments
suffered from the negative sentiment of always subject to the same scrutiny as
made earlier in the year) resulting in a
its sector, despite positive news flows new deals and both rely on certain criteria
realised gain in the year of £0.42 million.
and the relative outperformance versus being met, including the HMRC Financial
This exit contributed to returns received
its peers by the company itself. It is worth Health Test.
over the life of the investment of £6.11
noting that in addition to the unrealised
million, which is a 2.2x multiple of cost In respect of the Financial Health Test,
equity holding, the Company has
and an IRR of 13.8%. Shareholders should be advised that a
received over 1.7x its original investment
tightening by HMRC of policy and
in realised returns to date. In October 2022, Andersen EV, the
practice in a technical aspect of the VCT
electric vehicle charger provider, entered
The negative NAV total return for the year financing rules is now resulting in the
into administration as a result of a
principally comprised unrealised falls in the restriction of potential follow-on
substantial deterioration in its trading
value of investments still held of £15.45 investments to support certain portfolio
conditions which resulted in a realised
million, (primarily Virgin Wines, Buster and companies, where more than half their
loss of £0.44 million being recognised
Punch and MyTutor) which were partially subscribed share capital has been lost. In
Annual Report & Financial Statements 2022 Report & Accounts 2015 Mobeus Income & Growth 4 VCT plc 3 3

| respect of some portfolio companies, this | the existing portfolio, and fund further | during which a light lunch will be |
| --- | --- | --- |
| may result in the Company not being able | expansion of the businesses in its | available. The MIG VCT AGM will take |
| to make follow-on investments even | investment portfolio where required. The | place earlier on 24 May 2023 |
| where a compelling business case exists, | funds will also assist the delivery of | commencing at 1.00 pm and will be |
| which in turn could impact the prospects | attractive returns for its Shareholders, | followed by the joint Investment Adviser |
| of these businesses. The Board continues | including the payment of dividends over | presentation at 1.30 pm. Shareholders are |
| to monitor developments in the | the medium term as well as to help | welcome to join us for the Investment |
| interpretation of this area of legislation | facilitate share buybacks for those | Adviser presentation if not already |
| carefully. | Shareholders who wished to sell shares. | attending the earlier MIG VCT AGM. |

Chair’s Statement

| Further details of the Company’s | Further details of the Company’s | A webcast will also be available from |
| --- | --- | --- |
| investment activity and the performance | investment activity and the performance | 1.30 pm for those Shareholders who |
| of the portfolio are contained in the | of the portfolio are contained in the | cannot attend in person. However, please |
| Investment Adviser’s Review and the | Investment Adviser’s Review and the | note that you will not be able to vote at |
| Investment Portfolio Summary on pages | Investment Portfolio Summary on pages | the AGM via this method and you are |
| 12 to 27. | 12 to 27. | encouraged to return your proxy form |

before the deadline of 22 May 2023.
Since the year-end, the Company has
Information setting out how to join the
Share buy-backs
invested a total of £0.75 million into two
meeting by virtual means will be shown
new investment companies, Connect During the year, the Company bought
on the Company’s website. For further
Earth and Cognassist in March 2023. Also back and cancelled 1,796,536 of its own
details, please see the Notice of the
following the year-end, again in March shares (2021: 1,303,349), representing
Meeting which can be found at the end of
2023, the sale of the Company’s 2.2% of the shares in issue at the
this Annual Report & Financial
investment in Tharstern Group Limited beginning of the year (2021: 1.6%), at a
Statements, on pages 79 to 81.
was completed achieving a 2.6x return total cost of £1.46 million, inclusive of
against cost over the life of the expenses (2021: £1.23 million). It is the
Votes Against Dis-application of
investment. Company’s policy to cancel all shares
bought back in this way. The Board Pre-emption Rights
reviews its buyback policy quarterly and At the General Meeting of the Company
Liquidity & Fundraising
currently seeks to maintain the discount held on 12 October 2022, over 20% of the
Cash and cash equivalents held by the
at which the Company’s shares trade at votes received were lodged against the
Company as at 31 December 2022
no more than 5% below the latest composite resolution to approve the
amounted to £37.71 million, or 45.1% of net
published NAV. allotment of shares and disapply
assets. The Board continues to prioritise
pre-emption rights to support the
the security and protection of the
Shareholder Communications & 2022/2023 fundraise. It appears that we
Company’s capital by monitoring credit
did not make it sufficiently clear that the
Annual General Meeting
risk in respect of its cash and near cash
proposed dis-application of the pre-
resources. May I remind you that the Company has
emption rights was in respect of the
its own website which is available at:
In January 2022, the Company completed fundraise only. The resulting feedback
www.mig4vct.co.uk.

| a fundraise of £7.5 million for the |  | received will be taken into consideration |
| --- | --- | --- |
| 2021/2022 tax year which was fully | Following the well-received virtual | for future fundraises and communications. |
| subscribed in less than 24 hours. This | Shareholder Event held on 25 February |  |

The General Meeting resolution was in
level of demand was very pleasing 2022, the Investment Adviser held
addition to the already approved
although the Board became aware that a another successful virtual Shareholder
dis-application of pre-emption rights
number of investors were not able to Event with a live Q&A session on
given at the AGM held on 17 May 2022
subscribe before the fundraise closed 23 March 2023. Numbers either viewing
because the funds being raised under the
and were therefore disappointed. Later in or participating online were close to totals
2022/23 offer exceeded the previous
the year, on considering the future cash attending such events in person before
authorities obtained and therefore
requirements of the Company and the the Covid pandemic, and a recording is
additional Shareholder authority was
potential demand for the Company’s available on the Company’s website for
required as well as providing authority to
shares, the Board approved a fundraise those who were not able to see the event
allot the greater number of shares.
for the 2022/23 tax year. Having provided live.
a period of time between the launch of As required under the AIC Code of
Your Board is pleased to be able to hold
the prospectus and acceptance of Corporate Governance Code, those
the next Annual General Meeting (“AGM”)
applications, the Board was pleased that Shareholders that voted against the
of the Company at 2.30pm on
the initial amount of £11 million (including resolution were contacted to ascertain
Wednesday, 24 May 2023 at the offices of
an over-allotment facility of a further £5 their reasons. I thank those Shareholders
Shoosmiths LLP, 1 Bow Churchyard,
million), launched on 5 October 2022, who responded to my request for their
London, EC4M 9DQ. The Board is aware
was fully subscribed by 8 November reasons for voting against the resolution.
that a number of Shareholders hold
2022. Shares were allotted on 16 It became clear that the key factor was
shares in the Company and another
November 2022 and on 6February 2023 Shareholders’ concern about new
Mobeus VCT, Mobeus Income & Growth
and your Company extends a warm shareholders being added to the Register
VCT plc (MIG VCT). To aid shareholder
welcome to both existing and new of Members thereby diluting their holding
attendance at the AGMs of both
Shareholders. and potential dividend income. By the
companies, given the common financial
issuance of shares to new investors, this:

| The fundraising that was launched in | year-ends, the Boards of the companies |  |  |
| --- | --- | --- | --- |
| October 2022 was to ensure that the | have decided to hold both AGMs on the | ●● maximises the pool of potential VCT |  |
| Company retained adequate levels of | same day with a presentation from the |  | investors thereby increasing the |
| liquidity to continue to take advantage of | companies’ Investment Adviser taking |  | probability that the full offer amount is |
| new investment opportunities, support | place in between the two meetings, |  | raised allowing the Company: |

4 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
●● to continue to take advantage of new another Non-Executive Director was not leadership and policies. The Investment
necessary. Adviser is currently undergoing a review Chair’s Statement
investment opportunities and to
support existing portfolio companies of its existing practices in order to ensure
In the Half-Year Report dated
as deemed appropriate; and these fulfil the Consumer Duty principles.
13September 2022, I stated my intention
The Company is not directly captured by
●● seeks the delivery of attractive to retire as a director and Chair of the
Consumer Duty, however we are working
returns for its Shareholders, including Company following the conclusion of the
together with the Investment Adviser to
the payment of dividends over the Company’s Annual General Meeting in
achieve the forthcoming obligations.
medium-term. May 2023. The Board intends to appoint
Graham Paterson as Chair of the
The Board is of the opinion that the Outlook
Company to succeed me. An in-depth
benefit to the Company’s Shareholders in
third party led recruitment process Significant uncertainties lie ahead due to
having sufficient liquidity to meet its
commenced at the latter end of the year multiple geopolitical and economic
investment objectives and the potential to
to secure a Non-Executive Director to factors, and this was exemplified by the
generate enhanced returns in the future,
succeed Graham as Chair of the Audit & recent rescue of Silicon Valley Bank
as well as the ability to make dividend
Risk and Nomination and Remuneration (SVB”) based in California which had a UK
payments, greatly outweighs any
Committees following the AGM. Having subsidiary. One of the VCT’s portfolio
potential short-term dilutive impact of
given careful consideration to the companies had funds deposited with SVB
individual shareholder returns.

|  | diversity of skills, experience, gender and | in the UK but these were unaffected |
| --- | --- | --- |
| The allotments in November 2022 and | background of the wider Board, we were | following SVB UK’s acquisition by HSBC. |
| February 2023 saw a roughly equal | delighted that Lindsay Dodsworth agreed | The quantum of the investee’s deposit |
| balance of existing and new investors and | to join as a director and she was | was not material to the overall value of |
| all existing Shareholders were able to | appointed on 1 January 2023. Lindsay will | the portfolio. Nevertheless, across the |
| subscribe for shares as the Offer | stand for election at the forthcoming | whole VCT sector and beyond, the event |
| remained open for applications from | AGM. | has underpinned the importance of |
| 17 October to 8 November 2022 when it |  | spreading liquidity risk. Notwithstanding |

The directors remain committed to
became fully subscribed. A small number the foregoing, challenging and uncertain
increasing diversity of representation and
of applicants who applied thereafter were times can give rise to opportunities for
will take this fully into account alongside
unable to be accommodated in the final efficient investment into businesses with
the skills required to serve Shareholders
allotment on 6 February 2023. significant potential for the future. Further
well in the specialist VCT sector for any
to the successful realisation of EOTH in
We will once again, at the Annual General future appointments.
November, and Tharstern in March of this
Meeting of the Company, propose a
year, the exit environment is likely to
resolution to dis-apply pre-emption rights Environmental, Social and
become more restrained. This is not seen
although this authority is not expected to
Governance (“ESG”) as a significant issue given that the
be utilised except in respect of the
Company is not time-limited. The
The Board and the Investment Adviser
Dividend Investment Scheme.
combined impact of high inflation, high
believe that the consideration of
interest rates and Government spending
environmental, social and corporate
Fraud Warning restrictions can be expected to impact
governance (“ESG”) factors throughout
Shareholders continue to be contacted in both consumer and business confidence.
the investment cycle will contribute
connection with sophisticated but We therefore anticipate that further
towards enhanced Shareholder value.
fraudulent financial scams which purport to stresses will become evident across
Gresham House has a team which is UK-based businesses over the
come from or to be authorised by the
focused on sustainability and the Board forthcoming year. Your Company is
Company. This is often by a phone call or
views this as an opportunity to enhance invested in a diverse portfolio of
an email usually originating from outside
the Company’s existing protocols and businesses managed by a resourceful
the UK, claiming or appearing to be from a
procedures through the adoption of the and professional investment team.
corporate finance firm offering to buy your
highest industry standards. Notwithstanding the challenges already
shares at an inflated price.
described, the Company is well
The future FCA reporting requirements
The Board strongly recommends
positioned to take advantage of
consistent with the Task Force on
Shareholders take time to read the
investment opportunities to deliver
Climate-related Financial Disclosures,
Company’s Fraud warning section,
attractive returns over the medium and
which commenced on 1 January 2021
including details of who to contact,
longer term.
currently do not apply to the Company
contained within the Information for
but will be kept under review, the Board I would like to once again thank all our
Shareholders section on pages 77 to 78.
being mindful of any recommended Shareholders for their continued support.
changes.
Board Composition
At the start of the year under review, the
Consumer Duty
Board comprised four directors prior to
The Directors are cognisant of the
Helen Sinclair’s retirement after the AGM
Investment Adviser’s obligations to
in February 2022. On 1 March 2022, Chris
comply with the FCA’s Consumer Duty
Burke was appointed as a member of
rules and principles introduced in 2022 Jonathan Cartwright
both the Audit & Risk Committee and the
and coming into force in 2023. Chair
Nomination & Remuneration Committees,

| he was also appointed as Chair of the | Companies that are subject to Consumer | 5 April 2023 |
| --- | --- | --- |
| Investment Committee. After considering | Duty must ensure they are acting to |  |
| and reviewing its composition at that time, | deliver good outcomes and that this is |  |
| the Board agreed that the recruitment of | reflected in their strategies, governance, |  |

Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 5
## Strategic Report
Summary of Investment Policy The Company’s cash and liquid
## Company Objective and
resources are held in a range of
The Company’s policy is to invest
## Business Model investments which can be of varying
primarily in a diverse portfolio of UK
maturities, subject to the overriding
unquoted companies. Investments are
criterion that the risk of loss of capital be
Objective generally structured as part loan and
minimised.
part equity in order to receive regular
The Objective of the Company is to
income, to generate capital gains upon
provide investors with a regular income The Company seeks to make
sale and to reduce the risk of high
stream by way of tax-free dividends and investments in accordance with the
exposure to equities. To spread the risk
to generate capital growth through requirements of VCT legislation. A
investments are made in a number of
portfolio realisations which can be summary of this is set out below.
businesses across different industry
distributed by way of additional tax-free
sectors.
dividends, while continuing at all times The full text of the Company’s
to qualify as a VCT. Investment Policy is available on page
28 of this Strategic Report.

|  | The Company and its Business | ●● the Company must pay sufficient |  | of £12 million (for knowledge |
| --- | --- | --- | --- | --- |
|  | Model |  | levels of income dividend from its | intensive companies the annual |
| Strategic Report |  |  | revenue available for distribution so | limit is £10 million and the lifetime |

The Company is a Venture Capital
as not to retain more than 15% of its limit is £20 million), from VCTs and
Trust. Its Objective and its Investment
income from shares and securities similar sources of State Aid funding;
Policy are designed to ensure that the
in a year; and
Company continues to qualify and is
approved as a VCT by HM Revenue & ●● the Company’s shares must be ●● that use the funds received from
Customs (“HMRC”) whilst maximising listed on the London Stock VCTs for growth and development
returns to Shareholders from both Exchange or a regulated European purposes.
income and capital. stock market;
In addition, VCTs may not:
●● non-qualifying investments cannot
be made, except for certain
Summary of VCT Legislation ●● offer secured loans to investee
exemptions in managing the
companies, and any returns on loan
To maintain its status as a VCT, the
Company’s short-term liquidity;
capital above 10% must represent
Company must meet a number of
●● VCTs are required to invest 30% of no more than a commercial return
conditions, the most important of which
funds raised in an accounting on the principal; and
are that:
period beginning on or after 6 April
●● make investments that do not meet
2018 in qualifying holdings within

| ●● the Company must hold at least |  |  |  | the ‘risk to capital’ condition (which |
| --- | --- | --- | --- | --- |
|  |  | 1 | 12months of the end of the |  |
|  | 80%, by VCT tax value | , of its total |  | requires a company, at the time of |

accounting period; and

|  | investments (shares, securities and |  |  | investment, to be an |
| --- | --- | --- | --- | --- |
|  | liquidity) in VCT qualifying holdings, | ●● the period for reinvestment of |  | entrepreneurial company with the |
|  | within approximately three years of |  | proceeds on disposal of qualifying | objective to grow and develop, and |
|  | a fundraising; |  | investments is 12 months. | where there is a genuine risk of loss |
| ●● all qualifying investments made by |  |  |  | of capital). |

To be a VCT qualifying holding, new
VCTs after 5 April 2018, together
investments must be in companies: 1
VCT tax value means as valued in
with qualifying investments made
accordance with prevailing VCT legislation.
by funds raised after 5 April 2011
●● which carry on a qualifying trade; The calculation of VCT tax value is arrived
are, in aggregate, required to
at using tax values, based on the cost of the
●● which have no more than £15 million
comprise at least 70% by VCT tax most recent purchase of an investment
of gross assets at the time of
value in “eligible shares”, which instrument in a particular company, which
investment and no more than £16
carry no preferential rights (save as may differ from the actual cost of each
million immediately following investment shown in the Investment
may be permitted under VCT rules);
investment from VCTs; Portfolio Summary on pages 22 to 27.
●● no investment in a single company
●● whose maximum age is generally
or group of companies may
up to seven years (ten years for
represent more than 15% (by VCT
knowledge intensive businesses);
tax value) of the Company’s total
investments at the date of ●● that receive no more than an annual
investment; limit of £5 million and a lifetime limit
6 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
The Company’s business model is set out in the diagram below.
## The Company and its
## business model
The Company is a Venture Capital Trust
and its Objective and Investment Policy
are designed to ensure that it continues
to qualify as a VCT, and continues to be
approved as such by HM Revenue &
Customs, whilst maximising returns to
Shareholders from both income and
capital. A summary of the most important
rules that determine VCT approval is Strategic Report
contained in the panel headed
“Summary of VCT Regulation” on page 6.
As a fully listed company on the London
Stock Exchange, the Company is
required to comply with the listing rules
governing such companies. The listing
also fulfils a requirement for VCT
approval and to maintain its VCT status.
The Company is an externally advised
VCT with a Board comprising Non-
Executive Directors only. The Board has
overall responsibility for the Company’s
affairs including the determination of its
Investment Policy (material changes to
which are subject to approval by
Shareholders). Investment advice and
operational support are outsourced to
external service providers (including the
Investment Adviser, Company Secretary
and Administrator and Registrar), with
the key strategic and operational
framework and key policies set and
monitored by the Board. Investment and
divestment proposals are originated,
negotiated and recommended by the
Investment Adviser and are then subject
to comment, approval or rejection by the

| Directors. Further details are contained | no capital gains tax upon the eventual |
| --- | --- |
| in the Stakeholder Engagement and | sale of the shares. These tax benefits are |
| Directors’ Duties section on pages 29 to | subject to the Company maintaining its |
| 31. | approved VCT status and the shares |

being held for a minimum of five years
The Company usually co-invests
from the date of subscription.
alongside the Baronsmead VCTs and the
other Mobeus VCTs managed and
advised by Gresham House in new
unquoted VCT qualifying investments in
proportion to the relative net assets of
each VCT (excluding direct AIM
investments).
The total percentage of equity held in
each investment by all funds advised by
the Investment Adviser is shown in Note
9 - Significant Interests on page 67.
Private individuals invest in the Company
to benefit from both income and capital
returns from the portfolio. By subscribing
for shares in a VCT they also receive
immediate income tax relief (currently
30% of the amount subscribed by an
investor). Investors receive tax-free
dividends from the Company and incur
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 7
## Performance and Key Performance Indicators
The Board has identified six key performance indicators that are used in its own assessment of the Company’s progress. Some of
these are classified as alternative performance measures (“APMs”) in line with Financial Reporting Council (“FRC”) guidance. See
Glossary of terms for details on page 82. APMs are measures of performance that are in addition to the data reported in the
Financial Statements. It is intended that these will provide Shareholders with sufficient information to assess how the Company
has performed against its Objective in the year to 31 December 2022, and over the longer-term, through the application of its
investment and other principal policies:
1. Annual and cumulative returns per share for the year
The Company’s Objective is to generate long-term growth in capital and income. To assess this, the Board monitors the
growth in total returns per share, both on a NAV basis and a share price basis, adjusted for dividends paid in the year. NAV basis
reflects the net assets of the Company and share price basis reflects the price at which a Shareholder could expect to sell their
shares. These are the most widely used measures of performance in the VCT sector.
Total returns per share for the year
The Net Asset Value and share price total returns per share for the year ended 31 December 2022 were (15.5)% (2021: 42.7%) and
(8.4)% (2021: 50.4%) respectively, as shown below:
Strategic Report
NAV basis Share price
(p) basis
(p)

| Closing NAV per share 80.05 | Closing share price 76.50 |
| --- | --- |
| Plus: dividend paid in year (Note 1) 14.00 | Plus: dividend paid in year (Note 1) 14.00 |
| NAV Total return for year 94.05 | Share price Total return for year 90.50 |

Total
Less: opening NAV per share (111.27) Less: opening share price (98.75)
return
(p)

| Decrease in NAV Total return for year | Decrease in Share price Total return for |
| --- | --- |
| per share (Note 2) (17.22) | year per share (8.25) |
| % NAV Total return for year* (15.5)% | % share price Total return for year* (8.4)% |

* The Share Price total return differs from the NAV Total return because the share price at the year end and previous year end is by
reference to the latest announced NAV per share at the time. For example, the share price at 31 December 2022 is by reference to the
latest announced NAV per share, being 80.50 pence as at 30 September 2022 adjusted for a 6.00 pence dividend paid on
7 November 2022.
Note 1: The dividends paid in the year were interim dividends in respect of the year ended 31 December 2021 of 4.00 pence per share
paid on 7 January 2022, and in respect of the year ended 31 December 2022, 4.00 pence paid on 8 July 2022 and 6.00 pence per
share paid on 7 November 2022.
Note 2: NAV Total return per share for the year is comprised of:
Year ended 31 December 2022 2021
(p) (p)
Gross portfolio capital returns (14.09) 35.86
Gross income returns 1.90 1.62
Costs (including tax charge) (2.35) (2.62)
Other movements (2.68) (0.09)
NAV Total return for the year as above (2022 only) (17.22) 34.77
The contributions from portfolio returns and income are shown before deducting attributable costs. They are explained below
under review of financial performance for the year. Costs are referred to in section 6 on page 11.
8 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Review of financial performance for the year
For the year ended 31 December 2022 2021
£m £m
Capital return (16.12) 28.64
Revenue return 0.94 0.44
Total return (15.18) 29.08
The capital loss for the year of £(16.12) million ((15.44) pence of NAV return for the year per share, plus costs charged to capital) is
primarily due to a net decrease in the unrealised valuation of portfolio companies. There were realised gains from the sale of Strategic Report
Media Business Insight Holdings Limited, and EOTH Limited as well as proceeds received from investments realised in a
previous year. The fall in capital returns from £28.64 million to a loss of £16.12 million is principally due to unrealised losses of
values of existing portfolio companies compared to 2021 (£41.16 million decrease) compounded by a lower level of realised gains
(£3.46 million decrease). The revenue profit for the year of £0.94 million (0.90 pence of NAV return for the year per share, net of
costs charged to revenue) is derived from income, primarily loan interest and preference share dividends, outweighing revenue
expenses. The reason for the increase over the year is mainly due to a large preference share dividend received from EOTH as
well as an increase in income received from liquidity fund balances. This higher income outweighed higher expenses charged to
revenue (mainly due to higher Investment Adviser fees arising from higher net assets over the year) as well as higher
subscriptions and registrar fees.
Cumulative total returns per share for the year
NAV basis Share price basis
(p) (p)
Closing NAV per share 80.05 Closing share price 76.50
Plus: cumulative dividends paid to date 153.20 Plus: cumulative dividends paid to date 153.20
Cumulative
total Closing cumulative total return 233.25 Closing cumulative total return 229.70
return (p)

| Less: opening cumulative total return (250.47) | Less: opening cumulative total return (237.95 |
| --- | --- |
| Decrease in cumulative | Decrease in cumulative |
| total return for year (17.22) | total return for year (8.25) |

Taking into account initial income tax relief, founder Shareholders who invested in 1999 have now seen, as at 31 December 2022,
an overall gain on net investment cost of 45.8% (2021: 56.5%) since the launch of the Company. This is calculated as closing
cumulative total return per share of 233.25 pence, as a percentage of net investment cost of 160.00 pence per share after initial
income tax relief of 40.00 pence per share (both figures restated for the 2 for 1 share consolidation in 2006). Original
Shareholders who also took advantage of the enhanced buyback offer made in 2013 have now seen an overall gain over net
investment cost on this basis of 88.6%.
The Company does not consider it appropriate to set a specific annual and cumulative return per share target for the year.
However, Shareholders should note that the Board assesses these returns against the Company’s ability to meet its current
annual dividend target of 4.00 pence per share.
Both NAV and share price returns for the year are considered to be disappointing, but are heavily influenced reflective of the
external economic factors outlined in the Chairman’s Statement. It is the Board’s opinion that the nature of VCT investing reflects
a medium to long-term horizon particularly by reference to the five year hold period for investors to be eligible for upfront income
tax relief.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 9
)
Internal rate of return (“IRR”)
Original
investment cost Cost net of Internal
(pence per share) Income tax relief income tax (p) Rate of Return
With benefit of Income Tax Relief
2006/7 Shareholders 120.9 30% 84.6 9.0%
1999 Shareholders 200.0 20% 160.0 1.9%
Without benefit of Income Tax Relief
2006/7 Shareholders 120.9 n/a n/a 5.4%
1999 Shareholders 200.0 n/a n/a 0.8%
The table above shows the Internal rate of return of Shareholders’ investment for those founder Shareholders who invested in 1999
beneath those Shareholders who invested in 2006/7, shortly after the date at which Mobeus (now Gresham House) took over as
sole Investment Adviser.
Strategic Report
2. The Company’s performance compared with its peer group (Benchmarking)
The Board places emphasis on the Company’s performance against a peer group of VCTs and has a target of being ranked in
the top half of Generalist VCTs. Using the benchmark of NAV total return (assuming dividends are reinvested) on an investment
of £100, the Company is ranked 5th out of 39 (2021: 3rd out of 40) over three years, and 2nd out of 37 (2021: 4th out of 38) over
five years amongst generalist VCTs by the AIC (based on statistics prepared by Morningstar) at 31 December 2022. The Board is
pleased with the relative performance of the Company.
3. Dividends paid compared with the dividend target
The Company has an annual target dividend of paying not less than 4.00 pence per share in respect of each financial year. It
has met or exceeded this target in respect of its last thirteen financial years. However, the Board continues to review the
sustainability of this target. The ability of the Company to pay dividends in the future cannot be guaranteed and will be
subject to performance and available cash and reserves. While the Board still believes in the attainment of the dividend target,
the gradual move of the portfolio to growth capital investments is likely to result in annual ordinary dividend payments being
more volatile and, at least over the medium-term, may be lower than have been paid in the recent past.
During the year, the Company paid an interim dividend of 4.00 pence per share on 8 July 2022 and an interim dividend of 6.00
pence per share on 7 November 2022 in respect of the year ended 31 December 2022.
On 7 January 2022, the Company paid a second interim dividend of 4.00 pence in respect of the year ended 31 December 2021.
For details on the capital and revenue breakdown of these dividends for the year, please see Note 7 on page 64.
160.00

|  |  |  |  | 153.20 | Dividends totalling 10.00 pence |
| --- | --- | --- | --- | --- | --- |
| 140.00 |  |  | 143.20 |  | per share were paid in respect of |
|  |  | 134.20 |  |  | the year ended 31 December |
|  | 128.20 |  |  |  | 2022. Cumulative dividends paid |

120.00
to date since launch are 153.20
109.20 pence.
100.00
80.00
ence
per 60.00
share
40.00
20.00
19.00
8.00 6.00 9.00 10.00
0.00
31/12/2018 31/12/2019 31/12/2020 31/12/2021 31/12/2022
P
Dividends paid/payable in Cumulative dividends paid/payable
10 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
respect of the financial year in respect of the financial year
#### 4. Compliance with VCT legislation

In making their investment in a VCT, Shareholders become eligible for several tax benefits under VCT tax legislation, as long as the Company also complies with VCT tax legislation. To achieve this, the Company must meet a number of tests set by the VCT tax legislation. The principal tests are summarised in the panel entitled 'Summary of VCT Legislation' on page 6. In respect of the year ended 31 December 2022, the Company continued to meet these tests.

#### 5. Management of share price discount to NAV

The Board recognises that Shareholders may wish to sell their shares from time to time and that the secondary market for VCT shares can be limited. The impact of this secondary market is that the Company's share price will typically trade at a level which is less than the Company's latest published NAV per share. Subject to the Company having sufficient available funds and distributable reserves, it is the Board's intention to pursue a buyback policy with the objective of managing the discount to the latest published NAV per share.

This buyback policy provides a mechanism for the Company to enhance the liquidity of its shares and seek to manage the level and volatility of the discount to NAV at which its shares may trade as market liquidity in VCTs is normally very restricted. Continuing Shareholders benefit from the difference between the NAV and the price at which the shares are bought back and cancelled.

Shareholders granted the Directors authority to buyback up to 12.6 million of the Company's shares, representing 14.99% of the shares in issue at the date of the notice of the meeting, at the AGM held on 17 May 2022. Shares bought back under this authority are cancelled and the Directors do not intend to exercise this authority unless they believe to do so would result in an increase in net assets per share which would be in the interests of Shareholders generally. A resolution to renew this authority will be proposed at the forthcoming AGM in May 2023. The resolution will grant authority for the Company to buyback up to 14.99% of the Company's own Ordinary shares in issue, and will normally expire at the AGM to be held in 2024.

During the year ended 31 December 2022, Shareholders holding 1,796,536 shares expressed their desire to sell their holdings. The Company instructed its brokers, Parmure Gordon, to purchase these shares at prices representing discounts of approximately 5% to the previously announced NAV per share. The Company subsequently purchased these shares at prices of between 76.48 and 97.56 pence per share and cancelled them.

The discount for the Company's shares at 31 December 2022 was 5.0% (2021: 4.7%) based on the share price shown in the table on page 8 and the NAV at 30 September 2022 of 80.50 pence adjusted for a 6.00 pence dividend paid on 7 November 2022.

In total, the Company bought back 2.2% of the issued share capital of the Company, at the beginning of the year, as calculated by reference to the issued share capital on 1 January 2022.

#### 6. Costs

Shareholders will be aware there are a number of costs involved in operating a VCT. Although Shareholders do not bear costs in excess of the expense cap of 3.4%, the Board monitors its costs carefully and seeks to maintain an Ongoing Charges Ratio well below 3.4%.

The Board monitors costs using the Ongoing Charges Ratio¹, which is as follows:

|   | 2022 | 2021  |
| --- | --- | --- |
|  Ongoing charges | 2.70% | 2.39%  |
|  Performance fee | 0.00% | 0.00%  |
|  Ongoing charges plus accrued performance fee | 2.70% | 2.39%  |

¹ The Ongoing Charges Ratio has been calculated, using the AIC recommended methodology.

The Ongoing Charges Ratio replaces the Total Expense Ratio reported previously. The Total Expense Ratio still forms the basis of any expense cap that may be borne by the Investment Adviser. For the purpose of calculating this ratio, actual running costs are capped at 3.4% of closing net assets but exclude any irrecoverable VAT and exceptional costs. There was no breach of the expense cap for the year ended 31 December 2022 (2021: End).

The Ongoing Charges Ratio for the year has increased from last year as a result of the combined impact of an increase in expenses (details below) and a decrease in average net assets over the year.

#### Investment Adviser fees and other expenses

Investment Adviser fees charged to both revenue and capital have increased by £0.17 million to £1.88 million. Other expenses (all charged to revenue) have increased by £0.14 million to £0.60 million. This increase was due to a rise in subscription, registrar fees and director recruitment fees as well as a provision against loan interest regarded as receivable in the previous year. These increases were partially offset by a fall in Directors fees compared to 2021 as one Director retired during the year. Further details of these expenses are contained in the Financial Statements on pages 55 to 76 of this Annual Report.

Ongoing Charges Ratio

Annual Report & Financial Statements 2022: McIntosh Income & Growth 4 VCT plc

11
## Investment Adviser’s Review
Portfolio Review returning to normality, that the labour combined with slower than anticipated
market is easing and that there are pockets growth over the year.
In the year to 31 December 2022 many
of positive market sentiment. In February
quoted market values have declined During the year, the Company made four
2023, the FTSE 100 index reached an
significantly and the current economic new growth capital investments totalling
all-time high, although this should be
conditions continue to create challenging £2.03 million and made follow-on
viewed with caution as many large
circumstances. UK business has seen both investments into six portfolio companies
companies included in that index generate
demand and operating margins come under totalling £1.75 million, a breakdown of these
substantial earnings overseas. The outlook
pressure in the face of widely reported is included later in this Review. The £2.03
is therefore mixed, and the emphasis is
increases in inflation, interest rates and the million of new investments represent the
therefore on robust funding structures and
associated threat of recession. The impact Company’s allocated investment share
on being prepared for all foreseeable
of this is now being seen on consumer across all six VCTs managed or advised by
eventualities. The Gresham House
confidence and business investment. Gresham House, including the two
non-executive directors who sit on each
Baronsmead VCTs.

|  | In the early half of 2022 portfolio value | portfolio company board have responded |  |
| --- | --- | --- | --- |
|  | change was therefore characterised by | by working with their boards to ensure that | Two strong exits were achieved during the |
|  | declining market multiples with relatively | appropriate scenario planning has been | year from MBI and EOTH. On MBI, the |
|  | stable company level trading performance | done to achieve the best results during | Company received a total of £3.98 million in |
|  | carried over in part by the momentum | these uncertain times. There is also now a | proceeds during the year generating a |
|  | gained during 2021. However, in the latter | greater focus on cash management and | realised gain of £0.42 million. For EOTH the |
|  | part of 2022 and into 2023, the situation has | capital efficiency. With ample liquidity | Company received a total of £4.27 million in |
| Strategic Report | reversed. Markets and multiples appear to |  | proceeds during the year producing a |

following the recent fundraise, the

| be stabilising while value change has been | Company is also well placed to support | realised gain of £0.36 million and the |
| --- | --- | --- |
| driven by the challenging economic | portfolio companies with follow-on funding | interest yielding loan stock was also |
| conditions which have started to feed | where it is appropriate and can be done on | retained. These were both extremely |
| through to portfolio company trading | attractive terms. | successful investments which, over their |
| performance. The Company’s investment |  | lifetime, produced returns of 2.2x and 6.9x |

There are some specific highs in the
values have been insulated partially from as a multiple of the original investment cost.
portfolio such as Preservica which
market movements by the defensive
continues to see strong trading and is As well as these successes, it was
investment structures employed in many of
out-performing budget. The partial exit disappointing that Andersen EV went into
the portfolio companies. These act to
from EOTH was also an excellent result administration towards the end of the year
moderate valuation swings and the net
after a long running process which had to despite securing some large clients such as
result is a more modest decline in portfolio
negotiate numerous economic and Porsche and JLR. Andersen encountered
value.

|  | geo-political hurdles. By contrast, there | very difficult trading conditions with |
| --- | --- | --- |
| Whilst inflation is moderating following the | were also some significant falls. The largest | substantially reduced demand, supply chain |
| rises in base rates, it is still at a very high | was at Virgin Wines, where market | issues, cost pressures and the removal of |
| level and therefore a recession risk remains | sentiment shifted heavily against the whole | government consumer support for the |
| in the UK during 2023 – albeit recent | sector despite Virgin Wines itself | purchase of EV chargers. A realised loss of |
| comment suggests this may be shallower | outperforming its peers. MyTutor was also | £0.44 million was recognised during the |
| and shorter than originally feared. There | impacted by declining sector multiples | financial year as a result. |

are also early signs that supply chains are
The portfolio’s valuation changes in the year are summarised as follows:
Investment Portfolio Capital Movement 2022 2021
£m £m
Increase in the value of unrealised investments 1.08 27.19
Decrease in the value of unrealised investments (16.53) (1.48)
Net (decrease)/increase in the value of unrealised investments (15.45) 25.71
Realised gains 1.18 4.26
Realised losses (0.44) (0.07)
Net realised gains in the year 0.74 4.19
Net investment portfolio movement in the year (14.71) 29.90
The portfolio movements in the year are summarised as follows:
2022 2021
£m £m
Opening portfolio value 65.58 41.68
New and follow-on investments 3.78 6.23
Disposal proceeds (8.70) (12.23)
Net investment portfolio movement in the year (14.71) 29.90
Portfolio value at 31 December 45.95 65.58
12 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
New Investments during the year
The Company made four new investments totalling £2.03 million during the year, as detailed below:
Company Business Date of Amount of new
investment investment (£m)
February
Proximity Insight Retail software 0.61
2022
Proximity Insight ( proximityinsight.com ) is a retail technology business that offers a ‘Super-App’ that is used by the customer-
Strategic Report
facing teams of brands and retailers to engage, inspire and transact with customers. Headquartered in London with offices in
New York and Sydney, Proximity Insight has a global client base that includes over 20 brands, boutiques and department
stores in fashion, beauty, jewellery, electronics and homewares. These clients use Proximity Insight’s platform to integrate the
lines between physical and digital retail, enhancing the customer experience and improving the lifetime value of their
customers by upwards of 35%. The business grew annual recurring revenue by 117% to £2.2 million in 2021, and the
investment will support Proximity Insight’s continued product development and international growth.
Bidnamic Marketing technology May 2022 0.48
Lads Store Limited, trading as “Bidnamic” ( bidnamic.com ) is a marketing technology business that offers a Software-as-a-
Service (“SaaS”) platform for online retailers to manage their search engine marketing spend. The technology was all
developed internally and uses bespoke machine learning algorithms to automate the management and optimisation of online
retail customers’ Google shopping spend. The ARR of the business has grown substantially over the last two years and this is
projected to continue. The investment round will be used to further enhance the product’s capabilities and drive continued
ARR growth through expanding the sales & marketing team and building a presence in North America.

|  |  | GPS enhancement | September |  |
| --- | --- | --- | --- | --- |
|  | FocalPoint |  |  | 0.50 |
|  |  | software provider | 2022 |  |
| Focal Point Positioning Limited ( | focalpointpositioning.com | ) is a deep tech business with a growing IP and software portfolio. Its |  |  |

proprietary technology applies advanced physics and machine learning to dramatically improve the satellite-based location
sensitivity, accuracy, and security of devices such as smartphones, wearables and vehicles and reduce costs.

|  |  |  |  | Specialists in eating | September |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  |  | Orri |  |  | 0.44 |
|  |  |  |  | disorder support | 2022 |  |
| Orri Limited ( | orri-uk.com | ) is an intensive day care provider for adults with eating disorders. Orri provides an alternative to |  |  |  |  |

expensive residential in-patient treatment and lighter-touch outpatient services by providing highly structured day and half
day sessions either online or in-person at its clinic on Hallam Street, London. Orri opened its current clinic on Hallam Street,
London in February 2019 which provides a homely environment in a converted 4-storey house but which is operating at
capacity. The plan sees a larger site being leased nearby with Hallam Street being used to provide a step-down outpatient
service.
Further investments during the year
A total of £1.75 million was invested into six existing portfolio companies during the year, as detailed below:

| Company Business Date of |  |  | Amount of further |  |
| --- | --- | --- | --- | --- |
|  |  | investment | investment (£m) |  |
|  | UK Leisure and | January / |  |  |
| Caledonian Leisure |  |  |  | 0.22 |
|  | experience breaks | February 2022 |  |  |

Caledonian Leisure works with accommodation providers, coach businesses and other experienced providers (such as
entertainment destinations and theme parks) to deliver UK-based leisure and experience breaks to its customers. It comprises
two brands, Caledonian Travel ( caledoniantravel.com ) and UK Breakaways ( ukbreakaways.com ). The domestic leisure and
experience travel market was devastated by the COVID-19 pandemic, but the company was well-placed to expand as
lockdown and travel restrictions eased. A series of planned investment tranches has helped the company prepare for and
capitalise on the strong demand for UK staycation holidays.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 13
Business Report

|   | Company | Business | Date of Investment | Amount of further Investment (£m)  |
| --- | --- | --- | --- | --- |
|  **NORTHERN —BL*C—** | Northern Bloc | Dairy and allergen-free ice cream producer | April 2022 | 0.12  |
|  Northern Bloc Ice Cream (northern-bloc.com) is an established food brand in the emerging and rapidly growing vegan market. By focusing on chef quality and natural ingredients, Northern Bloc has carved out an early mover position in the dairy and allergen-free ice cream sector. The company's focus on plant-based alternatives has strong environmental credentials as well as it being the first ice cream brand to move wholly into sustainable packaging. Following the initial investment in December 2020, Northern Bloc has grown and strengthened its prospects against a challenging market backdrop. This further investment provides additional working capital and funds a new production facility to increase its resilience, flexibility and margins in the future.  |   |   |   |   |
|  **ANDERSEN** | Andersen EV | Premium EV chargers | May 2022 | 0.24  |
|  Muller EV Limited (trading as Andersen EV) (andersen.ev.com) was a design-led manufacturer of premium electric vehicle (EV) chargers. Incorporated in 2016, this business secured high profile partnerships with household brands, establishing an attractive niche position in charging points for the high-end EV market. This follow-on funding was to further support its premium brand and product positioning whilst ensuring all new and existing products met the most recent and highest safety and compliance standards. Unfortunately, external factors caused its market and trading prospects to worsen rapidly, including substantially reduced demand, global supply chain issues, inflation and the removal of government consumer support for the purchase of EV chargers. The company therefore entered administration before the year-end.  |   |   |   |   |
|  **rotageek** | RotaGeek | Workforce management software | June 2022 | 0.22  |
|  RotaGeek (rotageek.com) is a provider of cloud-based enterprise software to help larger retail, leisure and healthcare organisations to schedule staff effectively. RotaGeek has proven its ability to solve the scheduling issue for large retail clients effectively competing due to the strength of its technologically advanced proposition. The company has made significant commercial progress since the VCTs first investment nearly doubling Annual Recurring Revenues (ARR). This investment aims to boost ARR and enable the company to take advantage of further large client opportunities.  |   |   |   |   |
|  **VivA o!Tv** | Vivacity | Provider of artificial intelligence & urban traffic control systems | July 2022 | 0.62  |
|  Vivacity (vivacityjobs.com) develops camera sensors with on-board video analytics software that enables real-time anonymised data gathering of road transport system usage. It offers city transport authorities the ability to manage their road infrastructure more effectively, enabling more efficient monitoring of congestion and pollution levels as well as planning for other issues, such as the changing nature of road usage (e.g. the increasing number of cyclists). The technology and software represent a significant leap forward for local planning authorities which have traditionally relied upon manual data collection methods. This further investment will help boost the company's revenues through development of new functionality to enhance its product suite which can also be installed into the existing asset base.  |   |   |   |   |
|  **BEAUCH** | Beach | Hair Colourants brand | August 2022 | 0.33  |
|  Beach London Holdings ('Beach') (beachlondon.com) is an established brand which develops and markets a range of innovative harcane and colouring products. Beach is regarded as a leading authority in the hair colourant market having opened one of the world's first salons focused on colouring and subsequently launched its first range of products in 2013. This further investment was part of a wider £5.5 million investment round alongside existing shareholders and a strategic partner. The funds will be used to drive further expansion into the strategically important North American market and to consolidate the brand's position in the UK.  |   |   |   |   |

14

Business Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Portfolio valuation movements decreases of £(16.53) million, were: significant traction and offers potential but
the core business has grown more slowly
Across the portfolio, comparable market ●● Virgin Wines – £(6.89) million
than planned which has led to an overall
multiples that are used as the basis of
●● MyTutor – £(1.73) million reduction in its valuation.
valuation have declined over the year,
●● Buster and Punch – £(1.30) million
some by over 30%, but the levels at the The uplifts within the total valuation
year-end reflect a degree of stabilisation ●● Wetsuit Outlet – £(1.15) million increase of £1.08 million were:
over the final quarter of 2022. Together
●● Active Navigation – £(1.01) million
●● Tharstern – £0.44 million
with several downward revisions to
trading forecasts in the latter half of the Virgin Wines has suffered its sector’s ●● Bella & Duke – £0.30 million
year, this has driven a general decline in negative sentiment notwithstanding the
●● Orri – £0.22 million
investee company values. As noted, the outperformance of its peers. More
●● Preservica – £0.12 million
defensive investment structures used in recently, it also experienced some short
Strategic Report

| many of the portfolio companies serve to | term operational difficulties particularly in | Tharstern has continued to deliver strong |
| --- | --- | --- |
| moderate the impact of such company | the last quarter of the 2022. MyTutor’s | trading performance. Bella & Duke has |
| value movements on VCT value. The | growth has slowed post COVID coupled | seen improvements in revenues. |
| need to protect and develop value going | with a decline in market multiples. Buster | Preservica continues to build its high |
| forwards in such an uncertain | and Punch and Wetsuit Outlet are both | retention, long contract term SaaS |
| environment underlines the need for | consumer facing businesses that have | business, improving recurring revenues |
| portfolio readiness and planning, robust | experienced challenging trading | year on year. Orri is performing as |
| funding and close monitoring by the | conditions which resulted in profit | planned and the valuation uplift simply |
| Gresham House team. | downgrades. ActiveNav has developed a | reflects the first time recognition of the |
|  | new business line which has gained | preferential investment structure. |

The main reductions within total valuation
Portfolio Realisations during the year
The Company realised two investments, one of which was a partial realisation, as detailed below:
Company Business Period of Total cash proceeds over
investment the life of the investment/
Multiple over cost
January 2015 £6.11 million
Publishing and events
MBI to
business
June 2022 2.2x cost
The Company realised its whole investment in MBI for £3.98 million (realised gain in the year: £0.42 million) including deferred
proceeds received since completion. Total proceeds received over the life of the investment were £6.11 million compared to an
original investment cost of £2.72 million, representing a multiple on cost of 2.2x and an IRR of 13.8%.
October 2011 £6.56 million
Branded clothing (RAB
EOTH to
and Lowe Alpine)
November 2022 6.9x cost
The Company realised its equity investment in EOTH for £5.05 million (realised gain in the year: £0.36 million) including
preference dividends. Total proceeds received to date over the life of the investment were £6.56 million compared to an original
investment cost of £0.95 million, representing a multiple on cost of 6.9x and an IRR of 23.2%. The Company has retained its
interest yielding loan stock investment. Once repaid, this should increase the multiple on cost to 7.9x.
Loan stock repayments and other In addition, deferred consideration Andersen EV) generated a realised loss
gains/(losses) during the year totalling £0.40 million in realised gains in the year of £(0.44) million.
was received in respect of investments
The Company also received loan
realised in a previous year. Conversely, as
repayments totalling £0.05 million from
discussed earlier, Muller EV (trading as
Jablite Holdings Limited.
Portfolio income and yield
In the year under review, the Company received the following amounts in loan interest and dividend income:
Investment Portfolio Yield 2022 2021
£m £m
Interest received in the year 0.71 0.98
Dividends received in the year 0.93 0.35
1
Total portfolio income in the year 1.64 1.33
Portfolio Value at 31 December 45.95 65.58
Portfolio Income Yield (Income as a % of Portfolio value at 31 December) 3.6% 2.0%
1
Total portfolio income in the year is generated solely from investee companies within the portfolio.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 15
New investment made after the year-end
£0.75 million was invested into a new investment after the year-end, as detailed below:
Company Business Date of Amount of new
investment investment (£m)
Environmental data
Connect Earth March 2023 0.25
provider
Founded in 2021, Connect Earth (connect.earth) is a London-based environmental data company that democratises easy
access to sustainability data. With its carbon tracking API technology, Connect Earth supports financial institutions in offering
their customers transparent insights into the climate impact of their daily spending and investment decisions. Connect Earth’s
defensible and scalable product platform suite has the potential to be a future market winner in the nascent but rapidly growing
carbon emission data market, for example, by enabling banks to provide end retail and business customers with carbon
footprint insights of their spending. This funding round is designed to facilitate the delivery of the technology and product
roadmap to broaden the commercial reach of a proven product.
Education and neuro-
Cognassist March 2023 0.50
inclusion software
Strategic Report
Cognassist (cognassist.com) is an education and neuro-inclusion solutions company that provides a Software-as-a-Service
(SaaS) platform focused on identifying and supporting individuals with hidden learning needs. The business is underpinned by
extensive scientific research and a vast cognitive dataset. Founded in 2019 by Chris Quickfall, Cognassist has scaled its
underlying business within the education market, enabling apprentices to unlock government funding and helping diverse
minds to thrive. This investment will empower Cognassist to continue its growth within the education market and penetrate the
enterprise market, where demand for neuro-inclusive solutions to adequately support employees is rapidly emerging.
Realisations after the year end
Company Business Period of Total cash proceeds over
investment the life of the investment/
Multiple over cost

|  | Software based | July 2014 | £3.01 million |
| --- | --- | --- | --- |
| Tharstern | management | to |  |
|  | information systems | March 2023 | 2.6x cost |

The Company realised its investment in Tharstern Group for £2.14 million. Total proceeds received over the life of the investment
were £3.01 million compared to an original cost of £1.16 million, representing a multiple on cost of 2.6x and an IRR of 15.0%.
Environmental, Social and ●● Ensuring its team understands the Markets are volatile and uncertain and
imperative for effective ESG business planning is acutely difficult. As
Governance considerations
management and is equipped to such, the experience of seasoned
The Board and the Investment Adviser
carry this out through management investment managers will be
believe that the consideration of
support and training. increasingly important in the coming
environmental, social and corporate
year as they seek to support their
governance (“ESG”) factors throughout ●● Conduct regular monitoring of ESG
portfolio management teams in
the investment cycle should contribute risks, opportunities and performance
navigating through some particularly
towards enhanced shareholder value. in its investments.
challenging short-term trading
●● Incorporate ESG into its monitoring conditions. In this respect, Gresham
The Investment Adviser has a team
processes. House feels well placed in having one of
which is focused on sustainability as well
as the Investment Adviser’s the largest and most experienced
Outlook portfolio teams in the industry with an
Sustainability Committee who provide

| oversight and accountability for the | With inflation, political uncertainty and | average of over 18 years relevant |
| --- | --- | --- |
| Investment Adviser’s approach to | the threat of recession impacting | industry experience. The Company has |
| sustainability across its operations and | consumer confidence and business | ample liquidity to provide further |
| investment practices. This is viewed as | investment, the number of UK | support to its portfolio businesses |
| an opportunity to enhance the | businesses experiencing financial stress | through this period and is keen to make |
| Company’s existing protocols and | is set to increase. This will impact all | such investments where there is a |
| procedures through the adoption of the | sectors and businesses to varying | commercial case to do so over the |
| highest industry standards. Each | degrees and may present attractive | medium to long-term. |
| investment executive is responsible for | opportunities for a selective investor |  |
| setting and achieving their own | with the advantage of being able to take |  |
| individual ESG objectives in support of | a longer term view, such as your |  |

Gresham House Asset Management
the wider overarching ESG goals of the Company. However, the economic
Limited
Investment Adviser. The Investment backdrop will also impact our existing
Investment Adviser

| Adviser’s Private Equity division has its | portfolio companies and would present |  |
| --- | --- | --- |
| own Sustainable Investment Policy, in | a challenge to less experienced | 5 April 2023 |
| which it commits to: | management teams and their advisers. |  |

16 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Investments by market sector
Investments by value remain spread across a number of sectors, primarily in software and computer services, retailers and
industrial support services. Although the portfolio appears concentrated on three main sectors, the range of companies
contained within these sectors is considered to be very diverse and the Investment Adviser continues to target further
investments to complement these sectors.
0.1%
Construction and materials
0.0%
5.5%
Media
0.1%
0.8%
Food producers Strategic Report
0.7%
0.6%
General industrials
0.8%
2.2%
Travel and leisure
1.4%
1.0%
Consumer services 1.4%
0.0%
Healthcare services 1.4%
1.6%
Technology, hardware & equipment 3.3%
12.7%
Industrial support services 13.8%
44.2%
Retailers 32.8%
31.3%
Software and computer services 44.3%
0% 40% 50% 20%10% 30%
31 December 202231 December 2021
* All of the retail investments have branded online direct-to-consumer businesses with no physical high street retail presence,
being Bella & Duke, Bleach London, Buster and Punch, EOTH (trading as RAB and Lowe Alpine), MPB Group, Parsley Box, Wetsuit
Outlet, and Virgin Wines.
Age of the portfolio by value
2022 2021
4.9% 4.4%
< 1 year
7.3% 5.7%
6.3% 9.4% 1 - 2 years
1.3%

|  | 10.4% |  |  | 2 - 3 years |
| --- | --- | --- | --- | --- |
| 69.8% |  | 61.8% |  |  |
|  |  |  | 17.4% | 3 - 4 years |

1.3%
4 - 5 years
> 5 years
2022 2021
Type of investment transaction by value

| 4.9% |  |  |  | 4.4% |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | 2022 |  |  |  | 2021 | < 1 year |
|  | 7.3% |  |  |  | 5.7% |  |  |  |
|  |  |  | 1.3% |  |  |  | 1.4% |  |
|  |  | 6.3% |  |  |  | 9.4% |  | 1 - 2 years |
|  |  | 4.5% |  |  |  |  | 1.3% |  |
|  | 5.7% |  |  |  |  | 8.4% |  |  |
|  |  | 10.4% |  |  |  |  |  | 2 - 3 years |

Growth Capital

| 69.8% |  | 61.8% | 15.1% |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | 17.4% | 3 - 4 years |  |
|  | 1.3% |  |  |  |  | AIM |

4 - 5 years
MBO
> 5 years
Legacy
75.1%
88.5%
Growth Capital contains all investments made after the 2015 rule change which are young businesses using the Company’s
investment for growth and development purposes (as defined under VCT legislation). This category also contains a small number
of growth capital style investments made before the 2015 VCT rule change under the Investment Adviser’s MBO strategy.
MBO contains MBO type investments made under the Investment Adviser’s previous MBO strategy. This typically includes
60%
companies which are more mature compared to those invested under the growth capital strategy.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 17
2022 2021
1.3% 1.4%
4.5%
5.7% 8.4%
Growth Capital
15.1%
AIM
MBO
Legacy
75.1%
88.5%
## Principal investments in the portfolio at 31 December 2022 by valuation
Preservica Limited MPB Group Limited My Tutorweb Limited
www.preservica.com www.mpb.com www.mytutor.co.uk
Cost £3,398,000 Cost £1,095,000 Cost £2,465,000
Valuation £11,182,000 Valuation £5,134,000 Valuation £3,287,000
Strategic Report

| Basis of valuation | Basis of valuation | Basis of valuation |
| --- | --- | --- |
| Revenue multiple | Revenue multiple | Revenue multiple |
| Equity % held | Equity % held | Equity % held |
| 13.1% | 3.2% | 5.3% |
| Income receivable in year | Income receivable in year | Income receivable in year |
| £62,477 | Nil | Nil |
| Business | Business | Business |
| Seller of proprietary digital | Online marketplace for | Digital marketplace connecting |
| archiving software | photographic equipment | school pupils seeking one-to-one |

online tutoring with tutors

| Location | Location | Location |
| --- | --- | --- |
| Abingdon, Oxfordshire | Brighton | London |
| Original transaction | Original transaction | Original transaction |
| Growth capital | Growth capital | Growth capital |
| Audited financial information | Audited financial information | Audited financial information |
| Year ended 31 March 2022 | Year ended 31 March 2022 | Year ended 31 December 2021 |
| Turnover Not disclosed | Turnover £97,793,000 | Turnover £17,152,000 |
| Operating profit/(loss) Not disclosed | Operating loss £(4,959,000) | Operating profit/(loss) £(7,482,000) |
| Net liabilities £(1,001,000) | Net assets £25,624,000 | Net assets £11,247,000 |

1

| Year ended 31 March 2021 | Year ended 31 March 2021 | Year ended 31 December 2020 |
| --- | --- | --- |
| Turnover Not disclosed | Turnover £64,888,000 | Turnover £7,246,000 |
| Operating profit/(loss) Not disclosed | Operating loss £(911,000) | Operating profit/(loss) £(2,379,000) |
| Net liabilities £(3,057,000) | Net assets £31,267,000 | Net assets £3,242,000 |

1
The financial information quoted for
2020 is restated.
Additions/disposals during the year Additions/disposals during the year Additions/disposals during the year
None. None. None.
Financial information above and opposite is derived from publicly available Report and accounts. The valuation of each investee
company is derived in line with the valuation methodology detailed in Note 9 and is typically based upon each investee
company’s latest management accounts information not yet disclosed to public sources.
Further details of the investments in the portfolio may be found on the Gresham House ventures website:
www.greshamhouseventures.com
Operating profit is stated before charging depreciation and amortisation of goodwill where appropriate for all investee companies.
18 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Master Removers Group 2019 Virgin Wines UK plc Bella & Duke Limited
Limited (trading as Anthony
Ward Thomas, Bishopsgate

| and Aussie Man & Van) |  |  | Strategic Report |
| --- | --- | --- | --- |
| www.ward-thomas.co.uk | www.virginwines.co.uk | www.bellaandduke.com |  |
| Cost £349,000 | Cost £46,000 | Cost £877,000 |  |


| Valuation £2,986,000 | Valuation £2,591,000 | Valuation £2,353,000 |
| --- | --- | --- |
| Basis of valuation | Basis of valuation | Basis of valuation |
| Earnings multiple | Bid price (AIM quoted) | Revenue multiple |
| Equity % held | Equity % held | Equity % held |
| 6.6% | 8.3% | 4.4% |
| Income receivable in year | Income receivable in year | Income receivable in year |
| £152,110 | Nil | Nil |
| Business | Business | Business |
| A specialist logistics, storage and | Online wine retailer | A premium frozen raw dog food |
| removals business |  | provider |
| Location | Location | Location |
| London | Norwich | Edinburgh |
| Original transaction | Original transaction | Original transaction |
| Growth capital | Management buyout | Growth capital |
| Audited financial information | Audited financial information | Audited financial information |
| Year ended 30 September 2021 | Period ended 1 July 2022 | Year ended 31 March 2022 |
| Turnover £38,530,000 | Turnover £69,152,000 | Turnover £19,271,000 |
| Operating profit £8,694,000 | Operating profit £6,164,000 | Operating loss £(2,024,000) |
| Net assets £16,378,000 | Net assets £22,073,000 | Net assets £2,998,000 |
| Year ended 30 September 2020 | Period ended 2 July 2021 | Year ended 31 March 2021 |
| Turnover £26,984,000 | Turnover £73,634,000 | Turnover £11,230,000 |
| Operating profit £4,143,000 | Operating profit £3,468,000 | Operating loss £(1,861,000) |
| Net assets £14,286,000 | Net assets £17,627,000 | Net assets £1,024,000 |

Additions/disposals during the year Additions/disposals during the year Additions/disposals during the year
None. None. None.
Further details of the investments in the portfolio may be found on the Gresham House ventures website:
www.greshamhouseventures.com
Operating profit is stated before charging depreciation and amortisation of goodwill where appropriate for all investee companies.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 19
## Principal investments in the portfolio at 31 December 2022 by valuation
End Ordinary Group Limited Arkk Consulting Limited Tharstern Group Limited
(trading as Buster and Punch)
www.busterandpunch.com www.arkksolutions.com www.tharstern.com
Cost £1,497,000 Cost £1,599,000 Cost £1,092,000
Strategic Report

| Valuation £2,003,000 | Valuation £1,669,000 | Valuation £1,645,000 |
| --- | --- | --- |
| Basis of valuation | Basis of valuation | Basis of valuation |
| Earnings multiple | Revenue multiple | Earnings multiple |
| Equity % held | Equity % held | Equity % held |
| 7.8% | 6.7% | 12.7% |
| Income receivable in year | Income receivable in year | Income receivable in year |
| Nil | £36,889 | £88,720 |
| Business | Business | Business |
| Industrial inspired lighting and | Provider of services and software | MIS & Commercial print software |
| interiors retailer | to enable organisations to remain | solutions |

compliant with regulatory reporting
requirements

| Location | Location | Location |
| --- | --- | --- |
| Stamford, Lincolnshire | London | Lancashire |
| Original transaction | Original transaction | Original transaction |
| Growth capital | Growth capital | Management buyout |
| Audited financial information | Audited financial information | Audited financial information |
| Year ended 31 March 2022 | Year ended 31 December 2021 | Year ended 31 January 2022 |
| Turnover Not disclosed | Turnover Not disclosed | Turnover £4,519,000 |
| Operating profit/(loss) Not disclosed | Operating profit/(loss) Not disclosed | Operating profit £351,000 |
| Net assets £5,614,000 | Net liabilities £(1,056,000) | Net liabilities £(1,679,000) |
| Year ended 31 March 2021 | Year ended 31 December 2020 | Year ended 31 January 2021 |
| Turnover Not disclosed | Turnover Not disclosed | Turnover £4,365,432 |
| Operating profit/(loss) Not disclosed | Operating profit/(loss) Not disclosed | Operating profit £585,000 |
| Net assets £5,614,000 | Net liabilities £(428,000) | Net liabilities £(1,298,000) |

Additions/disposals during the year Additions/disposals during the year Additions/disposals during the year
None. None. None.
Financial information above and opposite is derived from publicly available Report and accounts. The valuation of each investee
company is derived in line with the valuation methodology detailed in Note 9 and is typically based upon each investee
company’s latest management accounts information not yet disclosed to public sources.
Further details of the investments in the portfolio may be found on the Gresham House ventures website:
www.greshamhouseventures.com
Operating profit is stated before charging depreciation and amortisation of goodwill where appropriate for all investee companies.
20 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Data Discovery Solutions
Limited (trading as ActiveNav)
Strategic Report
www.activenav.com
Cost £1,409,000
Valuation £1,610,000
Basis of valuation
Revenue multiple
Equity % held
7.1%
Income receivable in year
Nil
Business
Provider of a global market leading
file analysis software for information
governance, security and
compliance
Location
Winchester
Original transaction
Growth capital
Audited financial information
Year ended 29 June 2022
Turnover Not disclosed
Operating profit/(loss) Not disclosed
Net assets £4,305,000
Year ended 29 June 2021
Turnover Not disclosed
Operating profit/(loss) Not disclosed
Net assets £3,940,000
Additions/disposals during the year
None.
Further details of the investments in the portfolio may be found on the Gresham House ventures website:
www.greshamhouseventures.com
Operating profit is stated before charging depreciation and amortisation of goodwill where appropriate for all investee companies.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 21
## Investment Portfolio Summary
## as at 31 December 2022
1
Other investments

|  |  |  | Ordinary shares |  |  |  | (loan stock/preference shares) |  |  |  |  |  |  | Total |  |  | Total |  |  | Total |  |  | Total |  |  | Unrealised |  |  | Net realised |  |  |  | Net | % of |  | % of |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  | Cost at |  | Valuation at |  |  |  | Cost at |  | Valuation at |  |  |  | cost at |  | valuation at |  |  | additional |  |  | valuation at |  |  | gains/(losses) |  |  |  | gains/(losses) |  |  | proceeds |  | equity | portfolio |  |
|  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | investments |  |  | 31 December |  |  |  |  | in year |  |  | in year |  | in year |  | held | by value |  |
|  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2021 |  |  |  |  |  | 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  |  | £ |  |  | £ |  | £ |  |  |  |
| Preservica Limited |  | 1,359,179 9,026,730 2,038,566 2,155,261 3,397,745 11,056,628 - 11,181,991 125,363 - - 13.1% 24.3% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Seller of proprietary digital archiving software
MPB Group Limited 1,095,252 5,133,801 - - 1,095,252 5,764,694 - 5,133,801 (630,893) - - 3.2% 11.2%
Online marketplace for used photographic equipment
My TutorWeb Limited (trading as MyTutor) 2,464,757 3,287,020 - - 2,464,757 5,015,751 - 3,287,020 (1,728,731) - - 5.3% 7.2%
Digital marketplace connecting school pupils seeking one-to-one
online tutoring
Master Removers Group 2019 Limited (trading as Anthony Ward 348,641 2,985,557 - - 348,641 3,001,004 - 2,985,557 (15,447) - - 6.6% 6.5%
Thomas, Bishopsgate and Aussie Man & Van)
A specialist logistics, storage and removals business
Virgin Wines UK plc² 45,915 2,591,357 - - 45,915 9,486,219 - 2,591,357 (6,894,862) - - 8.3% 5.6%
Strategic Report
Online wine retailer
Bella & Duke Limited 877,381 2,353,105 - - 877,381 2,050,122 - 2,353,105 302,983 - - 4.4% 5.1%
A premium frozen raw dog food provider
End Ordinary Group Limited (trading as Buster and Punch) 1,496,785 2,002,576 - - 1,496,785 3,305,392 - 2,002,576 (1,302,816) - - 7.8% 4.4%
Industrial inspired lighting and interiors retailer
Arkk Consulting Limited 671,090 671,090 928,355 997,946 1,599,445 1,680,942 - 1,669,036 (11,906) - - 6.7% 3.6%
Provider of services and software to enable organisations to
remain compliant with regulatory reporting requirements
Tharstern Group Limited 338,861 566,149 753,025 1,078,760 1,091,886 1,204,783 - 1,644,909 440,126 - - 12.7% 3.6%
MIS & Commercial print software solutions
Data Discovery Solutions Limited (trading as Active Navigation) 1,408,640 1,610,356 - - 1,408,640 2,624,447 - 1,610,356 (1,014,091) - - 7.1% 3.5%
Provider of global market leading file analysis software for
information governance, security and compliance
Vivacity Labs Limited 1,531,122 1,531,122 - - 1,531,122 914,754 616,369 1,531,123 - - - 5.5% 3.3%
Provider of artificial intelligence & urban traffic control systems
Manufacturing Services Investment Limited (trading as Wetsuit 1,166,551 12,272 1,166,551 1,166,551 2,333,102 2,331,133 - 1,178,823 (1,152,310) - - 6.4% 2.6%
Outlet)
Online retailer in the water sports market
EOTH Limited (trading as Equip Outdoor Technologies) 95,147 - 855,255 931,159 950,402 4,847,187 - 931,159 - 357,442 4,273,470 1.7% 2.0%
Distributor of branded outdoor equipment and clothing including
the RAB and Lowe Alpine brands
Bleach London Holdings Limited 960,057 834,129 - - 960,057 791,477 330,285 834,129 (287,633) - - 4.1% 1.8%
Hair colourants brand
Legatics Holdings Limited 663,011 663,011 - - 663,011 663,011 - 663,011 - - - 6.0% 1.4%
SaaS LegalTech software provider
Orri Limited 438,200 653,845 - - 438,200 - 438,200 653,845 215,645 - - 3.6% 1.4%
An intensive day care provider for adults with eating disorders
Pets’ Kitchen Limited (trading as Vet’s Klinic) 360,640 360,640 270,480 270,480 631,120 631,120 - 631,120 - - - 4.5% 1.4%
Veterinary clinics
IPV Limited 619,487 619,487 - - 619,487 619,487 - 619,487 - - - 5.5% 1.3%
Provider of media asset software
Rota Geek Limited 874,000 397,064 218,500 218,500 1,092,500 765,890 218,500 615,564 (368,826) - - 4.1% 1.3%
Workforce management software
Notes
1
‘Other investments’ comprise principally loan stock instruments, and/or relatively small amounts of preference shares.
² Quoted on AIM.
22 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
1
Other investments

|  |  |  | Ordinary shares |  |  |  | (loan stock/preference shares) |  |  |  |  |  |  | Total |  |  | Total |  |  | Total |  |  | Total |  | Unrealised |  |  | Net realised |  |  |  |  | Net | % of |  | % of |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  | Cost at |  | Valuation at |  |  |  | Cost at |  | Valuation at |  |  |  | cost at |  | valuation at |  |  | additional |  |  | valuation at |  |  | gains/(losses) |  |  | gains/(losses) |  |  | proceeds |  |  | equity | portfolio |  |
|  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | investments |  |  | 31 December |  |  |  | in year |  |  | in year |  |  | in year |  | held | by value |  |
|  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2021 |  |  |  |  |  | 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  |  |
| Preservica Limited |  | 1,359,179 9,026,730 2,038,566 2,155,261 3,397,745 11,056,628 - 11,181,991 125,363 - - 13.1% 24.3% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Seller of proprietary digital archiving software
MPB Group Limited 1,095,252 5,133,801 - - 1,095,252 5,764,694 - 5,133,801 (630,893) - - 3.2% 11.2%
Online marketplace for used photographic equipment
My TutorWeb Limited (trading as MyTutor) 2,464,757 3,287,020 - - 2,464,757 5,015,751 - 3,287,020 (1,728,731) - - 5.3% 7.2% Strategic Report
Digital marketplace connecting school pupils seeking one-to-one
online tutoring
Master Removers Group 2019 Limited (trading as Anthony Ward 348,641 2,985,557 - - 348,641 3,001,004 - 2,985,557 (15,447) - - 6.6% 6.5%
Thomas, Bishopsgate and Aussie Man & Van)
A specialist logistics, storage and removals business
Virgin Wines UK plc² 45,915 2,591,357 - - 45,915 9,486,219 - 2,591,357 (6,894,862) - - 8.3% 5.6%
Online wine retailer
Bella & Duke Limited 877,381 2,353,105 - - 877,381 2,050,122 - 2,353,105 302,983 - - 4.4% 5.1%
A premium frozen raw dog food provider
End Ordinary Group Limited (trading as Buster and Punch) 1,496,785 2,002,576 - - 1,496,785 3,305,392 - 2,002,576 (1,302,816) - - 7.8% 4.4%
Industrial inspired lighting and interiors retailer
Arkk Consulting Limited 671,090 671,090 928,355 997,946 1,599,445 1,680,942 - 1,669,036 (11,906) - - 6.7% 3.6%
Provider of services and software to enable organisations to
remain compliant with regulatory reporting requirements
Tharstern Group Limited 338,861 566,149 753,025 1,078,760 1,091,886 1,204,783 - 1,644,909 440,126 - - 12.7% 3.6%
MIS & Commercial print software solutions
Data Discovery Solutions Limited (trading as Active Navigation) 1,408,640 1,610,356 - - 1,408,640 2,624,447 - 1,610,356 (1,014,091) - - 7.1% 3.5%
Provider of global market leading file analysis software for
information governance, security and compliance
Vivacity Labs Limited 1,531,122 1,531,122 - - 1,531,122 914,754 616,369 1,531,123 - - - 5.5% 3.3%
Provider of artificial intelligence & urban traffic control systems
Manufacturing Services Investment Limited (trading as Wetsuit 1,166,551 12,272 1,166,551 1,166,551 2,333,102 2,331,133 - 1,178,823 (1,152,310) - - 6.4% 2.6%
Outlet)
Online retailer in the water sports market
EOTH Limited (trading as Equip Outdoor Technologies) 95,147 - 855,255 931,159 950,402 4,847,187 - 931,159 - 357,442 4,273,470 1.7% 2.0%
Distributor of branded outdoor equipment and clothing including
the RAB and Lowe Alpine brands
Bleach London Holdings Limited 960,057 834,129 - - 960,057 791,477 330,285 834,129 (287,633) - - 4.1% 1.8%
Hair colourants brand
Legatics Holdings Limited 663,011 663,011 - - 663,011 663,011 - 663,011 - - - 6.0% 1.4%
SaaS LegalTech software provider
Orri Limited 438,200 653,845 - - 438,200 - 438,200 653,845 215,645 - - 3.6% 1.4%
An intensive day care provider for adults with eating disorders
Pets’ Kitchen Limited (trading as Vet’s Klinic) 360,640 360,640 270,480 270,480 631,120 631,120 - 631,120 - - - 4.5% 1.4%
Veterinary clinics
IPV Limited 619,487 619,487 - - 619,487 619,487 - 619,487 - - - 5.5% 1.3%
Provider of media asset software
Rota Geek Limited 874,000 397,064 218,500 218,500 1,092,500 765,890 218,500 615,564 (368,826) - - 4.1% 1.3%
Workforce management software
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 23
## Investment Portfolio Summary
## as at 31 December 2022
1
Other investments

|  |  |  | Ordinary shares |  |  |  | (loan stock/preference shares) |  |  |  |  |  |  | Total |  |  | Total |  |  | Total |  |  | Total |  |  | Unrealised |  |  | Net realised |  |  |  | Net | % of |  | % of |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  | Cost at |  | Valuation at |  |  |  | Cost at |  | Valuation at |  |  |  | cost at |  | valuation at |  |  | additional |  |  | valuation at |  |  | gains/(losses) |  |  |  | gains/(losses) |  |  | proceeds |  | equity | portfolio |  |
|  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | investments |  |  | 31 December |  |  |  |  | in year |  |  | in year |  | in year |  | held | by value |  |
|  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2021 |  |  |  |  |  | 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  |  | £ |  |  | £ |  | £ |  |  |  |
| Proximity Insight Holdings Limited |  | 608,000 608,000 - - 608,000 - 608,000 608,000 - - - 2.5% 1.3% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Super-App used by customer-facing teams of brands and retailers
to engage, inspire and transact with customers
Caledonian Leisure Limited 328,502 336,953 219,000 172,528 547,502 695,000 219,000 509,481 (404,519) - - 6.6% 1.1%
Provider of UK leisure and experience breaks
Focal Point Positioning Limited 500,612 500,612 - - 500,612 - 500,612 500,612 - - - 0.6% 1.1%
A positioning technology company
Lads Store Limited (trading as Bidnamic) 480,538 47 7,345 - - 480,538 - 480,538 47 7,345 (3,193) - - 1.1% 1.0%
SaaS platform for optimisation of search engine marketing spend
CGI Creative Graphics International Limited 476,612 7,780 973,134 369,512 1,449,746 397,434 - 377,292 (20,142) - - 6.3% 0.8%
Vinyl graphics to global automotive, recreation vehicle and
Strategic Report
aerospace markets
Northern Bloc Ice Cream Limited 425,670 319,253 - - 425,670 498,768 121,620 319,253 (301,135) - - 6.3% 0.7%
Dairy-free ice cream producer
Connect Childcare Group Limited 423,007 - 423,000 211,500 846,007 994,110 - 211,500 (782,610) (1,269) (1,269) 3.0% 0.5%
Nursery management software provider
Spanish Restaurant Group Limited (trading as Tapas Revolution) 406,396 - 812,700 116,100 1,219,096 739,557 - 116,100 (623,457) - - 6.7% 0.3%
Spanish restaurant chain
RDL Corporation Limited 173,932 - 826,068 57,831 1,000,000 317,413 - 57,831 (259,582) - - 8.9% 0.1%
Recruitment consultants for the pharmaceutical, and IT industries
2
Parsley Box Group plc (formerly Parsley Box Limited) 631,003 39,144 - - 631,003 417,536 - 39,144 (378,392) - - 1.8% 0.1%
Supplier of home delivered, ambient ready meals targeting the
over 60s
Muller EV Limited (trading as Andersen EV) (in liquidation) 585,598 - - - 585,598 195,200 243,998 - - (439,198) - 8.8% 0.0%
Provider of premium electric vehicle (EV) chargers
Kudos Innovations Limited 328,950 - - - 328,950 81,979 - - (81,979) - 2.4% 0.0%
Online platform that provides and promotes academic research
dissemination
Jablite Holdings Limited (in members’ voluntary liquidation) 339,974 - 227 - 340,201 49,597 - - - - 49,597 9.1% 0.0%
Manufacturer of expanded polystyrene products
Veritek Global Holdings Limited 43,527 - 1,576,559 - 1,620,086 - - - - - - 15.4% 0.0%
Maintenance of imaging equipment
BookingTek Limited 582,300 - - - 582,300 - - - - - - 3.5% 0.0%
Software for hotel groups
Racoon International Group Limited 419,959 - 64,388 - 484,347 - - - - - - 8.0% 0.0%
Supplier of hair extensions, hair care products and training
Disposals in year
Media Business Insight Holdings Limited - - - - - 3,560,047 - - - 415,421 3,975,468 0.0% 0.0%
A publishing and events business focused on the creative
production industries
Oakheath Limited (in members’ voluntary liquidation) - - - - - - - - - - - 0.0% 0.0%
Online platform that connects people seeking care home from
experienced independent carers
Notes
1
‘Other investments’ comprise principally loan stock instruments, and/or relatively small amounts of preference shares.
2
Parsley Box Group plc was delisted from AIM in December 2022, the company changed its name on 11 January 2023 to Parsley Box Group
Limited.
24 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
1
Other investments

|  |  |  | Ordinary shares |  |  |  | (loan stock/preference shares) |  |  |  |  |  |  | Total |  |  | Total |  |  | Total |  |  | Total |  | Unrealised |  |  | Net realised |  |  |  | Net | % of |  | % of |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  | Cost at |  | Valuation at |  |  |  | Cost at |  | Valuation at |  |  |  | cost at |  | valuation at |  |  | additional |  |  | valuation at |  |  | gains/(losses) |  |  | gains/(losses) |  |  | proceeds |  | equity | portfolio |  |
|  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | investments |  |  | 31 December |  |  |  | in year |  |  | in year |  | in year |  | held | by value |  |
|  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2021 |  |  |  |  |  | 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  | £ |  |  |  |
| Proximity Insight Holdings Limited |  | 608,000 608,000 - - 608,000 - 608,000 608,000 - - - 2.5% 1.3% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Super-App used by customer-facing teams of brands and retailers
to engage, inspire and transact with customers
Caledonian Leisure Limited 328,502 336,953 219,000 172,528 547,502 695,000 219,000 509,481 (404,519) - - 6.6% 1.1%
Provider of UK leisure and experience breaks
Strategic Report
Focal Point Positioning Limited 500,612 500,612 - - 500,612 - 500,612 500,612 - - - 0.6% 1.1%
A positioning technology company
Lads Store Limited (trading as Bidnamic) 480,538 47 7,345 - - 480,538 - 480,538 47 7,345 (3,193) - - 1.1% 1.0%
SaaS platform for optimisation of search engine marketing spend
CGI Creative Graphics International Limited 476,612 7,780 973,134 369,512 1,449,746 397,434 - 377,292 (20,142) - - 6.3% 0.8%
Vinyl graphics to global automotive, recreation vehicle and
aerospace markets
Northern Bloc Ice Cream Limited 425,670 319,253 - - 425,670 498,768 121,620 319,253 (301,135) - - 6.3% 0.7%
Dairy-free ice cream producer
Connect Childcare Group Limited 423,007 - 423,000 211,500 846,007 994,110 - 211,500 (782,610) (1,269) (1,269) 3.0% 0.5%
Nursery management software provider
Spanish Restaurant Group Limited (trading as Tapas Revolution) 406,396 - 812,700 116,100 1,219,096 739,557 - 116,100 (623,457) - - 6.7% 0.3%
Spanish restaurant chain
RDL Corporation Limited 173,932 - 826,068 57,831 1,000,000 317,413 - 57,831 (259,582) - - 8.9% 0.1%
Recruitment consultants for the pharmaceutical, and IT industries
2
Parsley Box Group plc (formerly Parsley Box Limited) 631,003 39,144 - - 631,003 417,536 - 39,144 (378,392) - - 1.8% 0.1%
Supplier of home delivered, ambient ready meals targeting the
over 60s
Muller EV Limited (trading as Andersen EV) (in liquidation) 585,598 - - - 585,598 195,200 243,998 - - (439,198) - 8.8% 0.0%
Provider of premium electric vehicle (EV) chargers
Kudos Innovations Limited 328,950 - - - 328,950 81,979 - - (81,979) - 2.4% 0.0%
Online platform that provides and promotes academic research
dissemination
Jablite Holdings Limited (in members’ voluntary liquidation) 339,974 - 227 - 340,201 49,597 - - - - 49,597 9.1% 0.0%
Manufacturer of expanded polystyrene products
Veritek Global Holdings Limited 43,527 - 1,576,559 - 1,620,086 - - - - - - 15.4% 0.0%
Maintenance of imaging equipment
BookingTek Limited 582,300 - - - 582,300 - - - - - - 3.5% 0.0%
Software for hotel groups
Racoon International Group Limited 419,959 - 64,388 - 484,347 - - - - - - 8.0% 0.0%
Supplier of hair extensions, hair care products and training
Disposals in year
Media Business Insight Holdings Limited - - - - - 3,560,047 - - - 415,421 3,975,468 0.0% 0.0%
A publishing and events business focused on the creative
production industries
Oakheath Limited (in members’ voluntary liquidation) - - - - - - - - - - - 0.0% 0.0%
Online platform that connects people seeking care home from
experienced independent carers
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 25
## Investment Portfolio Summary
## as at 31 December 2022
1
Other investments

|  |  | Ordinary shares |  |  |  | (loan stock/preference shares) |  |  |  |  |  |  | Total |  |  | Total |  |  | Total |  |  | Total |  |  | Unrealised |  |  | Net realised |  |  |  | Net | % of |  | % of |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Cost at |  | Valuation at |  |  |  | Cost at |  | Valuation at |  |  |  | cost at |  | valuation at |  |  | additional |  |  | valuation at |  |  | gains/(losses) |  |  |  | gains/(losses) |  |  | proceeds |  | equity | portfolio |  |
| 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | investments |  |  | 31 December |  |  |  |  | in year |  |  | in year |  | in year |  | held | by value |  |
|  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2021 |  |  |  |  |  | 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  |  | £ |  |  | £ |  | £ |  |  |  |

2
Proceeds from companies realised in previous years - - - - - - - - - 404,372 404,372 - -
Total 23,569,296 37,588,398 11,125,808 7,746,128 34,695,104 64,700,682 3,777,121 45,334,526 (15,178,407) 736,768 8,701,638 98.7%
Former Elderstreet Private Equity Portfolio
Cashfac Limited 260,101 582,292 - - 260,101 851,035 - 582,292 (268,743) - - 2.9% 1.2%
Provider of virtual banking application software solutions to
corporate customers
Sift Group Limited 135,391 34,862 - - 135,391 32,750 - 34,862 2,112 - - 1.3% 0.1%
Developer of business-to-business internet communities
Total 395,492 617,154 - - 395,492 883,785 - 617,154 (266,631) - - 1.3%
Total Investment Portfolio 23,964,788 38,205,552 11,125,808 7,746,128 35,090,596 65,584,467 3,777,121 45,951,680 (15,445,038) 736,768 8,701,638 100.0%
Strategic Report
Total Investment Portfolio split by type
3
Growth focused portfolio 22,126,008 35,040,266 6,932,407 6,240,025 29,058,415 50,568,974 3,777,121 41,280,291 (8,710,578) (83,025) 4,676,573 89.8%
3
MBO focused portfolio 1,838,780 3,165,286 4,193,401 1,506,103 6,032,181 15,015,493 - 4,671,389 (6,734,460) 819,793 4,025,065 10.2%
Investment Adviser’s Total 23,964,788 38,205,552 11,125,808 7,746,128 35,090,596 65,584,467 3,777,121 45,951,680 (15,445,038) 736,768 8,701,638 100.0%
Notes
1
‘Other investments’ comprise principally loan stock instruments, and/or relatively small amounts of preference shares.
2
£400,763 was received in respect of Vian Marketing Limited (trading as Red Paddle), and £3,609 was received in respect of Vectair Holdings
Limited, both investments realised in a previous year.
3
The growth focused portfolio contains all investments made after the change in the VCT regulations in 2015 plus some investments that are
growth in nature made before this date. The MBO focused portfolio contains investments made prior to 2015 as part of the previous MBO
strategy.
26 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
1
Other investments

|  |  | Ordinary shares |  |  |  | (loan stock/preference shares) |  |  |  |  |  |  | Total |  |  | Total |  |  | Total |  |  | Total |  | Unrealised |  |  | Net realised |  |  |  |  | Net | % of |  | % of |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Cost at |  | Valuation at |  |  |  | Cost at |  | Valuation at |  |  |  | cost at |  | valuation at |  |  | additional |  |  | valuation at |  |  | gains/(losses) |  |  | gains/(losses) |  |  | proceeds |  |  | equity | portfolio |  |
| 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | 31 December |  |  | investments |  |  | 31 December |  |  |  | in year |  |  | in year |  |  | in year |  | held | by value |  |
|  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2021 |  |  |  |  |  | 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  | £ |  |  |  |

2
Proceeds from companies realised in previous years - - - - - - - - - 404,372 404,372 - -
Total 23,569,296 37,588,398 11,125,808 7,746,128 34,695,104 64,700,682 3,777,121 45,334,526 (15,178,407) 736,768 8,701,638 98.7%
Former Elderstreet Private Equity Portfolio
Cashfac Limited 260,101 582,292 - - 260,101 851,035 - 582,292 (268,743) - - 2.9% 1.2%
Strategic Report
Provider of virtual banking application software solutions to
corporate customers
Sift Group Limited 135,391 34,862 - - 135,391 32,750 - 34,862 2,112 - - 1.3% 0.1%
Developer of business-to-business internet communities
Total 395,492 617,154 - - 395,492 883,785 - 617,154 (266,631) - - 1.3%
Total Investment Portfolio 23,964,788 38,205,552 11,125,808 7,746,128 35,090,596 65,584,467 3,777,121 45,951,680 (15,445,038) 736,768 8,701,638 100.0%
Total Investment Portfolio split by type
3
Growth focused portfolio 22,126,008 35,040,266 6,932,407 6,240,025 29,058,415 50,568,974 3,777,121 41,280,291 (8,710,578) (83,025) 4,676,573 89.8%
3
MBO focused portfolio 1,838,780 3,165,286 4,193,401 1,506,103 6,032,181 15,015,493 - 4,671,389 (6,734,460) 819,793 4,025,065 10.2%
Investment Adviser’s Total 23,964,788 38,205,552 11,125,808 7,746,128 35,090,596 65,584,467 3,777,121 45,951,680 (15,445,038) 736,768 8,701,638 100.0%
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 27
Diversity
## Key policies
The Directors have considered diversity
The Board has put in place the following policies to be applied to meet the
in relation to the composition of the
Company’s overall Objective and to cover specific areas of the Company’s business.
Board and have concluded that its
membership is diverse in relation to its

| Investment policy | Liquidity | breadth of experience. The Board |
| --- | --- | --- |
| The Investment Policy is designed to | The Company’s cash and liquid funds | comprised of three men for the majority |
| meet the Company’s Objective: | are held in a portfolio of readily | of the year following the retirement of |
|  | realisable interest-bearing | Helen Sinclair in February 2022. Further |
|  | investments, deposit and current | to the appointment of Lindsay |

Investments
accounts, of varying maturities, Dodsworth on 1 January 2023, the Board
The Company invests primarily in a
subject to the overriding criterion that now comprises of 3 men and 1 woman.
diverse portfolio of UK unquoted
the risk of loss of capital be The Company does not have any senior
companies. Investments are made
minimised. managers or employees. The Board has
selectively across a number of
made a commitment to always consider
sectors, principally in established
diversity in making future appointments.
Borrowing
companies. Investments are usually

| structured as part loan stock and part | The Company’s Articles of |  |
| --- | --- | --- |
| equity in order to produce a regular | Association permit borrowings of | Other policies |
| income stream and to generate | amounts up to 10% of the adjusted |  |

Strategic Report
In addition to the Investment Policy, the
capital gains from realisations. capital and reserves as defined
Diversity Policy and the policies on
therein).
There are a number of conditions payment of dividends and share
within the VCT legislation which need However, the Company has never buybacks, which are detailed earlier in
to be met by the Company and which borrowed and the Board would only this section, the Company has adopted
may change from time to time. The consider doing so in exceptional a number of further policies relating to:
Company will seek to make circumstances.
●● Environmental and social
investments in accordance with the
responsibility;
requirements of prevailing VCT
legislation. ●● Human rights;
●● Anti-bribery;
Asset allocation and risk
diversification policies, including the ●● Global greenhouse gas emissions;
size and type of investments the
●● Whistleblowing;
Company makes, are determined in
●● Financial risk management; and
part by the requirements of prevailing
VCT legislation. No single investment ●● Anti-Tax Evasion;
may represent more than 15% (by VCT
further details of which are set out in the
tax value) of the Company’s total
Directors’ Report on pages 36 to 39.
investments at the date of
investment.
28 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
## Stakeholder Engagement and Directors’ Duties
The Board has discussed the discharge of their Director’s duties under Section 172 of the Companies Act 2006 having regard to
the factors set out under Provision 5 of the Association of Investment Companies (AIC) Code and in line with the UK Corporate
Governance Code. The views of and the impact of the Company’s activities on the key stakeholders are an important consideration
for the Board when making relevant decisions. The Board, in normal circumstances, engages directly with stakeholder groups
through either regular or annual meetings and investor presentations to assist the Directors in understanding the issues to which
they must have regard.
The table below sets out the interests of key stakeholders that have been considered throughout the year during the Board’s
discussions and in decision making.
Stakeholders Engagement Type Outcome Strategic Report
Shareholders The key mechanisms of Shareholder ●● The AGM will be held on 24 May 2023. There will also be a
engagement is: live stream providing access to view the meeting remotely
for those that cannot attend the meeting in person,
●● Annual General Meeting
although only Shareholders physically attending will be
●● Annual, Half-year Reports and able to formally take part in the meeting and vote on
Interim Management Statements resolutions on the day. Shareholders unable to attend have
●● Annual Investor Events therefore been encouraged to submit their votes on
resolutions via proxy forms ahead of the meeting. A
●● RNS Announcements
recording of the AGM webcast will be available on the
●● Website Company’s website under Key Shareholder Information.
●● Offer for subscription ●● The Board made a decision to hold the AGM on the same
day as the Mobeus Income & Growth VCT Plc AGM so that
joint shareholders in both companies can attend on one
day with a joint presentation by the Investment Adviser.
This will reduce the amount of travel required by the
Directors, Investment Adviser and Shareholders and save
time for Shareholders by attending one rather than two
meetings on different dates in the same month.
●● Shareholders are provided with Annual and Half-Year
Reports in hard or soft copy according to their choice,
which are also available on the Company’s website.
Voluntary Interim Management Statements are released in
the quarters between reports to ensure Shareholders are
kept up to date with the Company’s events. The website is
an important source of information for Shareholders and
announcements are also regularly made through the
London Stock Exchange.
●● The Share buyback programme has continued to be
offered throughout the year. This provides Shareholders
with liquidity if they wish to sell their shares, at a price
close to the latest announced NAV per share. Further
details are contained in the Chairman’s Statement on page
4 and in the Director’s Report on page 36.
●● Shareholders are welcome to contact the Chair or the
Investment Adviser by email as advised on page 83 of this
Report.
●● The Annual Shareholder Event was successfully held as a
virtual event in February 2022, a further event took place
on 23 March 2023 with a live Q&A session to encourage
interaction between the Directors and the Board. If you
were unable to attend, please register to view a recording
of the event which is available at the following link:
https://mvcts.connectid.cloud/.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 29
Stakeholders Engagement Type Outcome
●● The Company seeks to create value for Shareholders by
generating good returns which are eventually distributed
to Shareholders as dividends. The importance of tax-free
dividends to Shareholders is acknowledged by the Board
and considered at each quarterly meeting. Decisions were
made to declare two interim dividends totalling 10.00
pence per share for payment in respect of the year. The
Company’s dividend target of 4.00 pence has consistently
been achieved or exceeded as outlined in the Chairman’s
Statement on page 2 and in the Strategic Report.
●● The liquidity level of the Company has remained strong
and is managed with the primary aim of preserving capital,
as discussed at each Board meeting. Liquidity levels are
managed after considering, inter alia, new and follow on
investments, annual dividend commitments as well as the
provision of the buyback facility.
Strategic Report
●● The Board, along with the three other Mobeus VCTs,
opened Offers for Subscription on 20 January and on
5October 2022 having considered:
– the impact of dilution on existing shareholder holdings;
– the ability to meet the dividend policy of the Company;
– the ability of the Company given its liquidity levels to
be able to meet HMRC’s VCT investment rules and
timeline;
– the costs involved in issuing a prospectus payable by
investors;
– the fair treatment of investors across the four Mobeus
VCTs and those investors that the Company will
co-invest with.
Suppliers Including: Registrar, Broker, Auditor, ●● The Investment Adviser regularly communicates with each
Lawyer, Sponsor, Banker and the VCT of the professional advisers and secures an annual
Status Adviser confirmation of the policies they have in place. The Board
review the performance of each provider on an annual
basis.

| Government & | The Board is committed to conducting | ●● As a UK listed company the Board and Investment Adviser |  |
| --- | --- | --- | --- |
| Regulators | business in line with the appropriate |  | comply with the Companies Act, the UKLA, HMRC, UK |
|  | laws and regulation. Mobeus Income & |  | Accounting Standards and FCA regulatory requirements in |
|  | Growth 4 VCT plc does not provide |  | addition to the Alternative Investment Fund Managers |
|  | financial contributions to political |  | Directive, to ensure the Company can continue to trade. |
|  | parties or lobby groups. |  | Non-compliance with the VCT regulations in particular is |

viewed as a principal risk for the Company. The Company
continued to comply with these regulations throughout the
year and to the date of this Report.
30 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Stakeholders Engagement Type Outcome
Investee The Investment Adviser, on behalf of ●● The Board has delegated authority for the day-to-day
Companies the Company, provides support to the management of the Company to the Investment Adviser and
portfolio companies through continued engages with the Investment Adviser in setting, approving
communications, providing assistance and overseeing the execution of the business strategy and
such as the help of the Gresham House related policies.
Talent Management Team.
●● The Board aims to have a diverse mix of companies across a
range of different sectors and regularly reviews the
composition of the portfolio.
Strategic Report
●● The Investment Adviser reports at the Company’s quarterly
Board meetings on each of the portfolio companies.
Members of the Investment Adviser sit on the majority of the
portfolio companies’ boards. This is to provide input on key
matters such as advancing the shareholder value agenda,
ensuring class leading corporate governance and
encouraging best practice in areas such as ESG.
●● Considerable support continued to be provided to the
investee companies during the year with regular
communication undertaken outside of scheduled board
meetings. The Investment Adviser organises Seminars and
events that involve portfolio companies so that they can
benefit from the Investment Adviser’s network.
Investment The Investment Adviser’s performance ●● The Investment Adviser meets with the Board at each
Adviser is vital for the Company to deliver its quarterly meeting and is in frequent contact throughout the
investment strategy, meet its objectives periods in between meetings e.g. to approve investment
and generate investment returns for proposals. All key strategic and operational topics are
Shareholders, and is a crucial discussed in detail and a close dialogue is maintained with
relationship for the Board. the Board. The Board takes an active interest in the
challenges faced by the portfolio companies. The Board
considers each potential disposal based on the company’s
performance, market conditions and the offer(s) in its
decision to sell the Company’s holding. The Investment
Adviser’s performance is evaluated annually and its
re-appointment is dependent on the outcome of that
evaluation.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 31
## Principal and Emerging 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 and emerging risks faced by the Company. This includes
a key risk management review and robust assessment of the risks, which takes place at each quarterly board meeting. Further
details of these are contained in the corporate governance section of the Directors’ Report on pages 40 to 42. The principal risks
and the emerging risk identified by the Board are set out below:
Risk Possible consequence How the Board manages risk
Loss of The Company must comply with section 274 of the ●● The Company’s VCT qualifying status is
approval as a Income Tax Act 2007 (“ITA”) which allows it to be continually reviewed by the Investment Adviser
Venture exempt from capital gains tax on investment gains. and confirmed at each Board meeting.
Capital Trust Any breach of these rules may lead to the Company ●● Regular reports are received from the VCT
losing its approval as a Venture Capital Trust, Status Adviser retained by the Board in order to
qualifying Shareholders who have not held their monitor the Company’s ongoing compliance
shares for the designated holding period having to with the VCT Rules.
repay the income tax relief they obtained and future
Strategic Report
dividends paid by the Company becoming subject to
tax. The Company would also lose its exemption from
corporation tax on capital gains.

| Economic | Events such as the war in Ukraine, the COVID-19 | ●● The Board monitors the portfolio as a whole to: |  |  |
| --- | --- | --- | --- | --- |
| and Political | pandemic, the impact of Brexit, an economic |  | (1) ensure that the Company invests as far as |  |
|  | recession, supply shortages or a movement in |  |  | possible in a diversified portfolio of |
|  | sterling or in interest rates, could affect trading |  |  | companies; |

conditions for smaller companies and consequently
(2) ensure that developments in the macro-
the value of the Company’s qualifying investments.
economic environment such as movements
Movements in UK Stock Market indices may affect in interest rates and availability of labour are

| the valuation of the Company’s investments, as well |  | monitored; and |
| --- | --- | --- |
| as affecting the Company’s own share price and its | (3) ensure the portfolio companies have |  |
| discount to net asset value. |  | support in light of the current economic |

conditions through ongoing discussions.
Cash comprises a significant proportion of
the net assets of the Company, further to the
successful realisations and the fund-raises
during the year giving the Company a strong
liquidity position.
Investment Investment in VCT qualifying earlier stage unquoted ●● The Board regularly reviews the Company’s
small companies involves a higher degree of risk investment strategy.
than investment in fully listed companies. Smaller
●● A member of the Investment Adviser normally
companies often have limited product lines, markets
sits on the boards of investee companies.
or financial resources, may not be profitable at the
Regular reports are produced by the Investment
point of investment and may be dependent for their
Adviser for the Board.
management on a smaller number of key individuals.
●● The Investment Adviser has provided a growing
This may lead to variable investment returns and the
pipeline of compliant investment opportunities
use of more subjective valuation methodologies.
and continues to strengthen 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 ●● Regulatory and legislative developments are
Companies Act, the Listing Rules of the UK Listing kept under review by the Company’s solicitors,
Authority and United Kingdom Accounting its VCT Status Adviser and the Board.
Standards. Changes to and breach of any of these
might lead to suspension of the Company’s Stock
Exchange listing, financial penalties, a qualified
audit report or the loss of the Company’s status as a
VCT. 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.
32 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Risk Possible consequence How the Board manages risk
Financial and Failure of systems (including breaches of cyber ●● The Board carries out a bi-annual review of the
operating security) at any of the third-party service providers internal controls in place and reviews the risks
that the Company has contracted with could lead to facing the Company at Board meetings and
inaccurate reporting or monitoring. Inadequate receives control reports by exception.
controls could lead to the misappropriation or
●● It reviews the performance of the service
insecurity of assets. Outsourcing and the increase in
providers annually and has obtained assurance
remote working could give rise to cyber and data
that such providers have controls in place to
security risks, particularly relating to the threat of
reduce the risk of breaches of their cyber
ransomware attacks, as well as internal control risk. Strategic Report
security.
Market Movements in the valuations of the Company’s ●● The Board receives quarterly valuation reports
liquidity investments will, inter alia, be connected to from the Investment Adviser and, where
movements in UK Stock Market indices as well as necessary, challenges its valuation process and
affecting the Company’s own share price and its metrics.
discount to net asset value.
●● The Investment Adviser alerts the Board about
any adverse movements.
●● The Board has a share buyback policy which
seeks to mitigate market liquidity risk. This
policy is reviewed at each quarterly Board
meeting.
Asset The Company’s investments may be difficult to ●● The Board receives reports from the Investment
liquidity realise. Adviser and reviews the portfolio at each
quarterly Board meeting. It carefully monitors
investments where a particular risk has been
identified.
Emerging Risk Non-compliance with current and future reporting ●● ESG and climate change is taken into account
requirements could lead to a fall in demand from when considering new investment proposals.
Environmental,
investors. That may affect the level of capital the The Investment Adviser monitors the potential
Social and
Company has available to meet its investment impact on investee companies of any proposed
Governance
objectives. new legislation regarding environmental, social
and governance matters and advises and
adapts accordingly.
●● The Board recognises that climate change is an
important emerging risk that the Company is
taking into account in their strategic planning
although the Company itself has little direct
impact on environmental issues. Measures have
been introduced to reduce the cost and
environmental impact of providing paper copies
of Shareholder correspondence and to
decrease the amount of travel undertaken.
The risk profile of the Company changed as a result of changes to VCT legislation in 2015. 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 also discusses emerging risks as and when they arise, such as the potential for
recession and resultant impact on the portfolio companies, and puts in place mitigating actions to manage the risk.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 33
## Going concern and viability of the Company

The Board is required to assess the Company's operation as a "going concern". The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the preceding pages of this Strategic Report. The majority of companies in the portfolio are well funded and the portfolio taken as a whole remains resilient and well-diversified, although the impact of the cost of living crisis and the challenging economic environment may impose further considerable demands upon the liquidity and trading prospects of some of these companies in the near-term. In keeping with the ongoing need to take advantage of opportunities for further investment within the portfolio, the Company announced its intention to raise further funds in the 2021/22 tax year and again for the 2022/23 tax year, with both offers reaching full subscription. The major cash outflows of the Company (namely investments, share buybacks and dividends) are within the Company's control. Accordingly, the Board believes that the Company's cash position, noting the successful fundraises, is adequate to enable the Company to continue as a going concern under any plausible stress scenario. Further details of this assessment are shown within Note 2 on page 60. The Board's assessment of liquidity risk, and details of the Company's policies for managing financial risk and its capital, are shown in Notes 15 and 16 on pages 69 to 76. Accordingly, the Directors believe that it is appropriate to continue to apply the going concern basis of accounting in preparing the annual Financial Statements.

Furthermore, the Directors have considered whether there are any material uncertainties that the Company may face during the twelve months from the date of approval of the financial statements that may impact on its ability to operate as a going concern. In particular, the Directors have continued to consider the impact of changes to VCT legislation. No further material uncertainties have been identified by the Board.

## Viability Statement

The UK Corporate Governance Code includes a requirement for companies to include a "Viability Statement" in the Annual Report addressed to Shareholders with the intention of providing an improved and broader assessment of long term solvency and liquidity. The Code does not define "long term" but expects the period to be longer than twelve months with individual companies choosing a period appropriate to the nature of their own businesses. The Directors have chosen a period of three years, as explained further below.

The Directors have carried out a robust assessment comprising the Principal and Emerging risks facing the Company, as shown on pages 32 and 33. Subsequent to this review they have a reasonable expectation that the Company will continue to operate and meet its liabilities, as they fall due, for the next three years. The Directors believe that a three-year period is appropriate given the frequency with which it is necessary to review and assess the impact of past, current and proposed regulatory changes. A period greater than three years is considered to be too uncertain for it to be meaningful. The Directors' assessment has been made with reference to the Company's current position and prospects, the Company's present strategy, the Board's risk appetite and the Company's principal and emerging risks and how these are managed, as described on pages 32 and 33. The Board is mindful of these risks but considers that its actions to manage those risks provide reasonable assurance that the Company's affairs are safeguarded for the stated period.

The Directors have reached this conclusion after giving careful consideration to the Company's strategy. They believe the Company's current strategy of "providing investors with a regular income stream by way of tax-free dividends and to generate capital growth through portfolio realisations" remains valid. The Board has focused upon the range of future investments that the Company will be permitted to fund under the current VCT legislation.

The Board expects that positive returns should continue to be achievable from future investments and from the existing portfolio. The Company has made four more new investments in compliance with the VCT rules introduced in 2015 and its revised Investment Policy, and the Investment Adviser continues to see a healthy pipeline of such investment opportunities. The Board will continue to monitor this assumption on a regular basis.

The Board will continue to monitor returns from growth capital investments on a regular basis and the prospective returns thereon over the next three years. The Board considers that the Company has sufficient liquidity to maintain its present investment rate in the short to medium-term.

Shareholders should be aware that, under the Company's Articles of Association, it is required to hold a continuation vote at the next AGM falling after the fifth anniversary of last allotting shares. As shares were last allotted in February 2023 (under the 2022/23 Offer for Subscription), this factor has not affected the Board's assumptions for the next three years.

## Future Prospects

For a discussion of the Company's future prospects (both short and medium-term), please see the Chairman's Statement on pages 2 to 5 and the Investment Adviser's Review on page 12.

### Jonathan Cartwright
Chair

5 April 2023
## Reports of the Directors
## Board of Directors

| Jonathan Cartwright |  | Graham Paterson |  | Christopher Burke |  |
| --- | --- | --- | --- | --- | --- |
| Independent, Non-Executive Chair |  | Independent, Non-Executive Director |  | Independent, Non-Executive Director |  |
| Date of appointment: 7 September 2020 |  | Date of appointment: 10 May 2019 |  | Date of appointment: 26 November 2019 |  |
| Experience: | Jonathan is a qualified | Experience | : Graham is an investment | Experience | : Chris has spent over 35 years |
| Chartered Accountant with significant |  | and financial services professional with |  | in the Telecommunications, IT and |  |
| experience of the VCT and investment |  | over 20 years’ experience in the private |  | Technology industries in a very |  |
| trust sectors. He joined Caledonia |  | equity industry. A chartered accountant, |  | International career. Chris has held both |  |
| Investments plc in 1989, serving as |  | Graham was one of the founding |  | Senior Technical and General |  |
| finance director from 1991 to 2009. |  | partners of SL Capital Partners LLP, |  | Management responsibilities in a |  |
| Currently he is a Non-Executive Director |  | (formerly Standard Life Investments |  | Telecoms Equipment Manufacture (Nortel), |  |
| and Chair of the Audit Committee of |  | (Private Equity) Ltd) where he was a |  | Fixed Line Carrier (Energis), Wireless |  |
| British Smaller Companies VCT plc and |  | Partner and Board Member until 2010. |  | Service Provider company (Vodafone), |  |
| Chair of CT UK Capital and Income |  | During his 13 years at SL Capital, he was |  | and a User Equipment Manufacturer (RIM). |  |
| Investment Trust PLC. |  | one of the managers of Standard Life |  | After graduating from university in 1982 |  |
|  |  | Private Equity Trust plc and was a |  | with a Bachelor of Computer Science, |  |

Jonathan is a former Chair of BlackRock
member of the advisory boards to a Chris spent 15 years with Bell Northern
Income and Growth Investment Trust plc
number of leading private equity fund Research (R&D for Northern Telecom) and
and Aberforth Split Level Income Trust

|  | managers. In 2013, Graham co-founded | Nortel holding a variety of roles in | the Directors |  |
| --- | --- | --- | --- | --- |
| plc. He has also served as a Non- |  |  |  | Reports of |
|  | TopQ Software Ltd, a technology | software development, operations and |  |  |

Executive Director of The Income &
company which develops software for ultimately Sales, working across North
Growth VCT plc between 2010 and
the private equity industry. TopQ America, Europe and Asia. From 1997 to
2020, where he was Chair of the Audit
Software was acquired by eVestment Inc 2000 Chris was CTO at Energis
Committee followed by an interim
(now part of NASDAQ Inc) in 2015, where Communications, forming part of the
appointment as Chair of the Board.

| until early 2018, Graham was a Director | executive team that led Energis through |
| --- | --- |
| of their private markets data and | IPO and into the FTSE 40. From 2001 to |
| analytics business. Graham was Chair of | 2005, Chris worked at Vodafone, where |
| Octopus VCT 4 plc until 2018 and is | he was Vodafone’s first Chief Technology |
| currently a Non-Executive Director of | Officer (CTO) responsible for Vodafone |
| Baillie Gifford US Growth Trust plc, | UK’s technology, product architecture, |
| Invesco Perpetual UK Smaller | design, procurement, development, |
| Companies Investment Trust plc and | support and operations. Chris’s last |
| Chair of Datactics Ltd. | position in a public company was as |

Managing Director for Research in Motion
(RIM) in Europe, Middle East and Africa
(EMEA), departing in 2009. Since 2009,
Chris has spent most of his time co-
founding Companies and developing his
own Investment Fund/Advisory Business.
Lindsay Dodsworth
Independent, Non-Executive Director
Date of appointment: 1 January 2023

| Experience: | Lindsay is an experienced | Lindsay was previously an International |
| --- | --- | --- |
| Non-Executive Director, Audit Chair, |  | Corporate Tax Partner at Ernst & Young |
| Trustee and Committee Chair having set |  | for several years and prior to that she |
| up and grown a Family Office over the |  | qualified as a Chartered Accountant and |
| last twenty years where she established |  | Chartered Tax Adviser at Price |
| and oversaw a diverse investment |  | Waterhouse. She is well qualified to |
| portfolio. She is currently a Non- |  | assume the role as Chair of the Audit & |
| Executive Director and Chair of Audit at |  | Risk and Nomination and Remuneration |
| the Martin Currie Global Portfolio Trust |  | Committees following the Annual |
| plc, sits on the Investment Oversight |  | General Meeting of the Company on |
| Committee for a Family Office, is the |  | 24 May 2023. |

Chair of Governors at St John’s College
School, Cambridge and a Trustee and
Member of the Finance and Investment
Committee at Goodenough College.
For details of the share interest and remuneration of the Directors please see page 47 of the Directors’ Remuneration Report.
Details of the attendance record of the Directors is also reported in the Directors’ Remuneration Report on page 48.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 35
## Directors’ Report
### The Directors present the At the Annual General Meeting of the The Company maintains a Directors’ and
Company held on 17 May 2022, Officers’ liability insurance policy. The
### Annual Report and Audited

|  | Shareholders granted the Company | policy does not provide cover for |
| --- | --- | --- |
| Financial Statements of the | authority, pursuant to section 701 of the | fraudulent or dishonest actions by the |
|  | Companies Act 2006, to make market | Directors. |

### Company for the year ended
purchases of up to 14.99% of the issued
### 31December 2022. share capital of the Company at that
Environmental and social
date. Such authority has been in place
The Corporate Governance Statement responsibility policies
throughout the year under review.
on pages 40 to 42, and the Report of the
The Board recognises its obligations
Audit & Risk Committee on pages 43 During the year under review, the
under Company law to provide
and 44, form part of this Directors’ Company bought back 1,796,536 (2021:
information in this respect about
Report. 1,309,349) of its own shares at a total
environmental matters (including the
cost of £1,460,054 (2021: £1,230,702) impact of the Company’s business on
The Board believes that the Annual
including expenses. These shares the environment), human rights and
Report and Financial Statements taken
represented 2.2% of the issued share social and community issues, including
as a whole is fair, balanced and
capital at the beginning of the year (2021: information about any policies the
understandable and provides the
1.6%). All shares bought back by the Company has in relation to these
information necessary for Shareholders
Company were subsequently cancelled. matters and the effectiveness of these
to assess the Company’s performance,
policies. The Board has recognised
position, business model and strategy.
Substantial interests Climate Change as an emerging risk, as
The Company is registered in England referenced on page 33, and takes full
As at the date of the Report, the
and Wales as a Public Limited Company consideration of relevant factors within
Company had not been notified of any
(registration number 03707697). the overall assessment of potential
beneficial interest exceeding 3% of the
investee companies. It is considered
The Company has satisfied the issued share capital.
alongside investment assessments of
requirements for full approval as a
potential investee companies.
Venture Capital Trust under section 274 Dividends
of the Income Tax Act 2007 (“ITA”). It is The Board seeks to maintain high
Shareholders received interim dividends
the Directors’ intention to continue to standards of conduct in respect of
in respect of the year ended 31 December
Reports of

|  | manage the Company’s affairs in such a |  | ethical, environmental, governance and |
| --- | --- | --- | --- |
| the Directors |  | 2022 of 4.00 and 6.00 pence per share |  |
|  | manner as to comply with section 274 of |  | social issues and to conduct the |

on 8 July 2022 and 7 November 2022
the ITA. Company’s affairs responsibly. It
respectively.
considers relevant social and
To enable capital profits to be
environmental matters when appropriate
distributed by way of dividends, the Directors
and particularly with regard to
Company revoked its status as an
The names, dates of appointment and
investment decisions. The Investment
investment company as defined in
brief biographical details of each of the
Adviser encourages good practice
section 833 of the Companies Act 2006
Directors are given on the previous
within the companies in which the
(“the Companies Act”) on 28 July 2008.
page of this Annual Report.
Company invests. The Board seeks to
The Company does not intend to
avoid investing in certain areas which it
re-apply for such status.
Disclosure of Information to the considers to be unethical. This includes
Auditor giving particular consideration to the
Share capital
So far as each of the Directors in office inherent reputation of the sector
The Company’s Ordinary shares of 1.00 (including past history, scandal or
at 31 December 2022 are aware, there is
penny each (“shares”) are listed on the adverse media coverage), rapidly
no relevant audit information of which
London Stock Exchange. changing public perception of industry
the auditor is unaware. They have
individually taken all the steps that they sectors or potential ethical concerns for
Issued Share Capital ought to have taken as Directors in order wider stakeholders. It also does not
to make themselves aware of any invest in companies which do not
The issued share capital of the Company
relevant audit information and to operate within relevant ethical,
as at 31 December 2022 was £1,043,565
establish that the Company’s Auditor is environmental and social legislation or
(2021: £833,897) and the number of
aware of that information. otherwise fail to comply with appropriate
shares in issue at this date was
industry standards. The Investment
104,356,447 (2021: 83,389,721).
Adviser has aligned its current ESG
Director’s indemnity and officers’
procedures and protocols to the highest
Buyback of shares liability insurance
standards as set out and informed by
The following disclosure is made in The Directors have individually entered
Gresham House plc. The Investment
accordance with Part 6 of Schedule 7 of into Deeds of indemnity with the
Adviser believes that this approach will
The Large and Medium-sized Companies Company which indemnifies each
contribute towards the enhancement of
and Groups (Accounts and Reports) Director, subject to the provisions of the
Shareholder value going forward.

| Regulations 2008 (as amended in 2013). | Companies Act 2006 and the limitations |  |
| --- | --- | --- |
|  | set out in each deed, against any liability | The Company does not have any |
| The reason the Company makes market | arising out of any claim made against | employees or officers and the Board |
| purchases of its own shares is to | them in relation to the performance of | therefore believes that there is limited |
| enhance the liquidity of the Company’s | their duties as Directors of the Company. | scope for developing environmental, |
| shares and to seek to manage the level | Copies of each Deed of indemnity | social or community policies. The |
| and volatility of the discount to Net | entered into by the Company for the | Company has however adopted |
| Asset Value at which the Company’s | Directors are available from the | electronic communications for |
| shares may trade. | Company Secretary. | Shareholders as a means of reducing |

36 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022

| the volume of paper that the Company | Adviser. The Board has also asked each | Adviser presentation at 1.30 pm followed |
| --- | --- | --- |
| uses to produce its reports. It uses | of its service providers to confirm that | by the Annual General Meeting at 2.30 pm |
| mixed source paper from well-managed | they have a suitable whistle-blowing | on Wednesday, 24 May 2023. Members |
| forests as endorsed by the Forest | policy in place. | attending the Annual General Meeting by |
| Stewardship Council for the printing of |  | means of the webcast, shall be permitted |
| its circulars and Annual and Half-Year | Anti-Tax Evasion | to ask questions at the Annual General |
| reports. The Investment Adviser is |  | Meeting but shall not be entitled to vote |

The Company has also adopted a
conscious of the need to reduce its on resolutions at the Annual General
zero-tolerance approach to tax evasion
impact on the environment and has Meeting (and are, therefore, encouraged
in compliance with the Criminal Finance
taken a number of initiatives in its offices to lodge their proxy vote and appoint the
Act 2017 and the corporate criminal
including recycling and the reduction of Chair of the Annual General Meeting as
offence of failing to take reasonable
its energy consumption. their proxy).
steps to prevent the facilitation of tax
evasion. The Company has applied due A proxy form for the meeting is enclosed
Global greenhouse gas emissions

|  | diligence procedures, taking an | separately with Shareholders’ copies of |
| --- | --- | --- |
| The Company has no greenhouse gas | appropriate risk-based approach, in | this Annual Report. Proxy votes may be |
| emissions to report from its operations, nor | respect of persons who perform or will | submitted electronically via the Link |
| does it have responsibility for any other | perform services on behalf of the | Group Signal Shares Portal at |
| emissions producing sources under the | Company, in order to mitigate risks. | www.signalshares.com. Shareholders |
| Companies Act 2006 (Strategic Report |  | may also request a hard copy proxy form |
| and Directors’ Reports) Regulations 2013, | Financial risk management | by contacting the Company’s Registrar, |
| (including those within the Company’s |  | Link Group, using their details as stated |

The main risks arising from the
underlying investment portfolio). The on page 83. Shareholders are
Company’s financial instruments are due
Company does not fall within the scope of encouraged to lodge their proxy vote
to fluctuations in market prices, the Directors
The Companies (Directors’ Report) and and appoint the Chair of the Meeting as
investment risk, liquidity risk, interest Reports of
Limited Liability Partnerships (Energy and their proxy, as soon as possible.
rates and credit risk. The Board regularly
Carbon Report) Regulations 2018 effective
reviews and agrees policies for Resolutions 1 to 8 are being proposed as
as of 1 April 2019 which implements the
managing these risks and full details can ordinary resolutions requiring more than
Government’s policy on Streamlined
be found in Note 15 to the Financial 50% of the votes cast at the meeting to
Energy and Carbon Reporting. The 2018
Statements on pages 69 to 76 of this be in favour and resolutions 9 and 10 will
Regulations require companies that have
Annual Report. be proposed as special resolutions
consumed over 40,000 kilowatt-hours of
requiring the approval of at least 75% of
energy to include energy and carbon
Post balance sheet events the votes cast at the meeting.
information in their Directors’ Report. This
does not apply to the Company as it For a full list of the post balance sheet The following is an explanation of the
qualifies as a low energy user. events that have occurred since business to be proposed:
31 December 2022, please see Note 18
Human rights policy to the Accounts on page 76.
Resolution 1 – To receive the
The Board seeks to conduct the Annual Report and Financial
Articles of Association
Company’s affairs responsibly and gives Statements
full consideration to the human rights The Company may amend its Articles of
The Directors are required to present
implications of its decisions, particularly Association (“the Articles”) by special
the Financial Statements, Directors’
with regard to investment decisions. resolution in accordance with section 21
report and Auditor’s report for the
of the Companies Act 2006. It is not the
financial year ended 31 December 2022
Anti-bribery policy Company’s intention to change its
to the meeting.
Articles at the forthcoming AGM.
The Company has adopted a zero-
tolerance approach to bribery and has Resolution 2 – To approve the
established an anti-bribery policy and Annual General Meeting
Directors’ Remuneration Report
procedures, copies of which are The Notice of the Annual General
Under section 420 of the Companies Act
available in the Corporate Governance Meeting, which will be held at 2:30 pm
2006 (the “Act”), the Directors must
section of the Company’s website: on Wednesday, 24 May 2023 at the
prepare an annual report detailing the
www.mig4vct.co.uk. offices of Shoosmiths LLP, 1 Bow
remuneration of the Directors and a
Churchyard, London, EC4M 9DQ is set
statement by the Chair of the
Whistleblowing policy out on pages 79 to 81 of this Annual
Nomination and Remuneration
Report. A joint Investment Adviser
The Board has considered the Committee (together the “Directors’
presentation with the Mobeus Income &
recommendation made in the UK Remuneration Report”). The Act also
Growth VCT plc shareholders will
Corporate Governance Code with requires that a resolution be put to
commence at 1.30pm.

| regard to a policy on whistleblowing and |  | Shareholders each year for their |
| --- | --- | --- |
| has reviewed the arrangements at the | A webcast of the Annual General Meeting | approval of that report. The Directors’ |
| Investment Adviser under which staff | will also be available and details of how to | Remuneration Report can be found on |
| may, in confidence, raise concerns. It has | join the webcast will be shown on the | pages 45 to 48 of this Annual Report |
| concluded that adequate arrangements | Company’s website. If possible, | and Financial Statements. Resolution 2 |
| are in place at the Investment Adviser | Shareholders intending to join the | is an advisory vote only. |
| for the proportionate and independent | Meeting by means of the webcast (which |  |

Full details of Directors’ remuneration
investigation of such matters and, where would be as an attendee only) are
can be found within the Directors’
necessary, for appropriate follow-up requested to join at least ten minutes prior
Remuneration Report on pages 45 to 48
action to be taken by the Investment to the commencement of the Investment
of this Annual Report.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 37
## Directors’ Report

| Resolution 3 – To approve the | sustainable success in his capacity as | Resolution 8 – Authority to allot |
| --- | --- | --- |
| Company’s Remuneration Policy | Chair of the Board and have no | shares in the Company and |
|  | hesitation in recommending his | Resolution 9 – Disapplication of |

The Company is required to put its
re-election to Shareholders.

| Remuneration Policy to Shareholders |  | pre-emption rights of members |
| --- | --- | --- |
| every three years under section 439A of |  | These two resolutions grant the |
| the Companies Act and is subject to a | Chris Burke |  |

Directors the authority to generally allot
binding Shareholder vote. A resolution Independent non-executive director shares for cash to a limited and defined
on the Remuneration Policy was last extent otherwise than pro rata to
Following a review of Chris’s
voted on at the Annual General Meeting existing Shareholders.
performance, the Directors agree that he
held on 12 May 2020 and therefore a
continues to carry out his duties Resolution 8 will enable the Directors to
similar resolution will be proposed at the
effectively and makes a substantial allot new shares up to an aggregate
forthcoming meeting. The Remuneration
contribution to the Company’s long-term nominal value of £364,206, representing
Policy is set out below and full details of
sustainable success. Chris was appointed one-third of the existing issued share
Directors’ remuneration can be found in
as Chair of the Investment Committee capital of the Company as at the
the Directors’ Remuneration Report on
with effect from 1 March 2022, succeeding publication date of the Notice convening
pages 45 to 48 of this Annual Report.
Helen Sinclair in the role following her the Annual General Meeting.
retirement from the Company.
Remuneration Policy Under section 561(1) of the Act, if the
He was also appointed a member of the Directors wish to allot new shares or sell
To ensure that the levels of
Audit & Risk and Nomination and or transfer treasury shares for cash they
remuneration are sufficient to attract,
Remuneration Committees on the same must first offer such shares to existing
retain and motivate directors of the
date. Shareholders in proportion to their
quality required to manage the
current holdings (pre-emption rights). It
Company in order to achieve the
The Directors are confident that he is a
is proposed by Resolution 9 to sanction
Company’s Objective.
strong and effective director and have
the disapplication of such pre-emption
no hesitation in recommending his
rights in respect of the allotment of
Resolutions 4 to 6 – To elect and re-election to Shareholders.
equity securities:
re-elect the Directors
(i) with an aggregate nominal value of
The Company’s Articles of Association Lindsay Dodsworth
Reports of
up to, but not exceeding, £110,366
the Directors require that each Director appointed to
Independent non-executive director
(representing approximately 10% of
the Board shall retire and seek election
Lindsay was appointed to the Board in the existing issued share capital at
at their first AGM following appointment
January 2023, and under the Articles is the time of the circulation of the
and every three years thereafter. In
seeking election at this, the first Annual notice of the AGM) in connection
terms of overall length of tenure, the AIC
General Meeting since her appointment with offer(s) for subscription;
Code does not explicitly make
to the Board. The remaining Directors
recommendations on tenure for (ii) with an aggregate nominal value of
believe that Lindsay has extensive
directors. The Board does not believe up to, but not exceeding, 10% of the
experience and are confident that she
that a Director should be appointed for a issued share capital from time to
will make a very substantial contribution
specified term. time pursuant to any dividend
to the Company’s long-term sustainable
investment scheme operated by the
The Board has previously agreed that success in her capacity as Chair of the
Company, at a subscription price per
each Director will retire and offer Audit & Risk and Nomination and
Share which may be less than the
themselves for re-election annually after Remuneration Committees and have no
net asset value per Share, as may be
serving on the Board for more than nine hesitation in recommending her election
prescribed by the scheme terms;

| years. However, following the | to Shareholders. |  |  |
| --- | --- | --- | --- |
| publication of the revised UK Corporate |  | (iii) otherwise than pursuant to (i) or (ii) |  |
| Governance Code in July 2018, which |  |  | above, with an aggregate nominal |

Resolution 7 – To reappoint BDO
applied to the Company from 1 January value of up to, but not exceeding,
LLP as auditor of the Company, to
2019 onwards, the Board agreed to 10% of the issued share capital from
hold office until the conclusion of
follow the recommendation of provision time to time, in each case where the
the next general meeting at which
18, namely that all directors be subject to proceeds may be used in whole or
accounts are laid before the
annual re-election. Jonathan Cartwright part to purchase the Company’s
Company and to authorise the
has confirmed his intention to retire from shares in the market.
the Board at the conclusion of the Directors to determine the
The Company normally allots shares
Annual General Meeting and therefore remuneration of the auditor.
at prices based on prevailing net
will not be offering himself for re- At each meeting at which the Company’s
asset value per share of the existing
election at the meeting. accounts are presented to its members,
shares on the date of allotment (plus
the Company is required to appoint an
costs, save in relation to the
Graham Paterson auditor to serve until the next such
dividend investment scheme).
meeting. The Board, on the
Independent non-executive director

|  | recommendation of the Audit & Risk | The Company will only allot shares at or |
| --- | --- | --- |
| Graham was appointed to the Board in | Committee, recommends the re- | above NAV per share, which includes in |
| May 2019, and under the Articles is | appointment of BDO LLP. This resolution | relation to the Company’s Dividend |
| seeking re-election at this Annual | also gives authority to the Directors to | Investment Scheme. The Directors thus |
| General Meeting. The remaining | determine the remuneration of the | seek to manage any potential dilution of |
| Directors believe that Graham is well | auditor. For further information, please | existing shareholdings as a result of the |
| positioned to make a substantial | see the report of the Audit & Risk | disapplication of Shareholders’ pre- |
| contribution to the Company’s long-term | Committee on pages 43 and 44. | emption rights proposed in Resolution 9. |

38 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
The Company does not currently hold Shareholders should note that the
any shares as treasury shares. Directors do not intend to exercise this
authority unless they believe to do so
Both of these authorities, unless
would result in an increase in net assets
previously renewed, varied or revoked,
per share which would be in the
will expire on the date falling fifteen
interests of Shareholders generally. This
months after the passing of the
resolution will expire on the date falling
resolution or, if earlier, on the conclusion
fifteen months after the passing of this
of the Annual General Meeting of the
resolution or, if earlier, on the conclusion
Company to be held in 2024. However,
of the Company’s Annual General
the Directors may allot securities after
Meeting to be held in 2024 except that
the expiry dates specified above in
the Company may purchase its own
pursuance of offers or agreements made
shares after this date in pursuance of a
prior to the expiration of these
contract or contracts made prior to the
authorities. Both resolutions generally
expiration of this authority.
renew previous authorities approved by
Shareholders at the Annual General
Recommendation
Meeting of the Company held on 17 May

| 2022 and are intended to be used for | The Board recommends that |
| --- | --- |
| the purposes of an offer(s) for | Shareholders vote in favour of the |
| subscription and the Dividend | resolutions to be proposed at the |
| Investment Scheme. | Annual General Meeting of the |

Company, as the Directors intend to do
Resolution 10 – Authority to in respect of their own beneficial
the Directors
holdings of 228,901 shares (representing
purchase the Company’s own Reports of
0.21% of the issued share capital as at
shares
the date of publication).
This resolution authorises the Company
to purchase its own shares pursuant to
Voting rights of Shareholders
section 701 of the Companies Act. The

| authority is limited to the purchase of an |  | At general meetings of the Company, |
| --- | --- | --- |
| aggregate of 16,543,794 shares |  | Shareholders have one vote on a show |
| representing approximately 14.99% of the |  | of hands, and one vote per share held |
| issued share capital of the Company as at |  | on a poll. No member shall be entitled to |
| the date of the Notice of the Meeting or, if |  | vote or exercise any rights at a general |
| lower, such number of shares (rounded |  | meeting unless all their shares have |
| down to the nearest whole share) as shall |  | been paid up in full. Any instrument of |
| equal 14.99% of the issued share capital |  | proxy must be deposited at the place |
| at the date the resolution is passed. The |  | specified by the by the Directors no later |
| maximum price that may be paid for a |  | than 48 hours before the time fixed for |
| share will be the higher of: |  | the meeting. |
| (i) an amount that is not more than 5% |  | There are no restrictions on voting rights |
|  | above the average of the middle | and no agreements between holders of |
|  | market quotations of the shares as | securities that may prevent or restrict |
|  | derived from the Daily Official List of | the transfer of securities or voting rights. |

the London Stock Exchange for the
By order of the Board
five business days preceding the
date such shares are contracted to
be purchased; and
Gresham House Asset Management
Limited
(ii) the price stipulated by Article 5(6) of
Company Secretary
the Market Abuse Regulation (EU)
596/2014 (as such Regulation forms
part of UK law and as amended). The 5 April 2023
minimum price that may be paid for a
share is 1 penny, being the nominal
value thereof.
Market liquidity in VCTs is normally very
restricted. The passing of this resolution
will enable the Company to purchase its
own shares thereby providing a
mechanism by which the Company may
enhance the liquidity of its shares and
seek to manage the level and volatility
of the discount to NAV at which its
shares may trade.
It is the Directors’ intention to cancel any
shares bought back under this authority.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 39
## Corporate Governance Statement
### This Corporate Governance relevant to the Company. Firstly, as the requirements, and, to Link Group, the
Company does not employ a chief registration services. Each of these
### Statement forms part of the
executive, nor any executive directors, contracts was entered into after full and
### Directors’ Report. the provisions of the AIC Code relating proper consideration by the Board of the
to the rate of the chief executive and quality and cost of services offered,
The Directors have adopted the
executive directors’ remuneration are including the financial control systems in
Association of Investment Companies
not relevant to the Company. Secondly, operation at the service providers in so
(AIC) Code of Corporate Governance
the systems and procedures of the far as they relate to the affairs of the
2019 (“the AIC Code”) for the financial
Investment Adviser, the provision of VCT Company. The Board regularly monitors
year ended 31 December 2022. The
monitoring services by Philip Hare & these controls from a risk perspective
Board has considered the principles and
Associates LLP, as well as the size of the and receives reports from the Registrar
recommendations of the AIC Code by
Company’s operations, give the Board and Investment Adviser and
reference to the AIC Corporate
full confidence that an internal audit Administrator when appropriate.
Governance Guide for investment
function is not necessary. The Company
companies (“AIC Guide”). The AIC Code, The Board, assisted by the Audit & Risk
has therefore not reported further in
as explained by the AIC Guide, Committee, carries out separate
respect of these provisions.
addresses all the principles set out in assessments in respect of the Annual
the UK Corporate Governance Code and Half-Year Reports and other
Internal control

| 2018 (“the UK Code”), as well as setting |  | published financial information. As part |
| --- | --- | --- |
| out additional principles and | The Board acknowledges that it is | of these reviews, the Board appraises all |
| recommendations on issues that are of | responsible for the Company’s system of | the relevant risks ensuing from the |
| specific relevance to the Company. | internal control and for reviewing its | internal control process referred to |
|  | effectiveness. Internal control systems | above. The main aspects of the internal |

The Board considers that reporting
are designed to manage the particular controls which have been in place
against the principles and
needs of the Company and the risks to throughout the year in relation to
recommendations of the AIC Code, and
which it is exposed and can by their financial reporting are:
by reference to the AIC Guide (which
nature only provide reasonable and not
incorporates the UK Code), will provide ●● Internal controls are in place for the
absolute assurance against material
the most appropriate information to preparation and reconciliation of the
misstatement or loss.
Shareholders. valuations prepared by the
Reports of
The Company’s internal control system Investment Adviser.
the Directors
The AIC Code was endorsed by the
aims to ensure the maintenance of
●● Independent reviews of the
Financial Reporting Council in February
proper accounting records, the reliability
valuations of investments within the
2019. In adopting the AIC Code, the
of the finance information used for
portfolio are undertaken quarterly by
Company will therefore meet its
publication and upon which business
the Board.
obligations in relation to the reporting
decisions are made, and that the assets
requirements of the Financial Conduct ●● The information contained in the
of the Company are safeguarded. The
Authority’s Listing and Disclosure and Annual Report and other financial
financial controls operated by the Board
Transparency Rules on Corporate reports is reviewed separately by
include regular reviews of signing
Governance. the Audit & Risk Committee prior to
authorities, quarterly management
consideration by the Board.
The AIC Code can be viewed on the accounts and the processes by which
investments in the portfolio are valued. ●● The Board reviews all financial
AIC’s website at www.theaic.co.uk/
The Board also provides authorisation of information prior to publication.
aic-code-of-corporate-governance
the Investment Policy and regular
The system of internal control and the
reviews of the financial results and
Statement of Compliance procedure for the review of control
investment performance.
systems has been in place and
This statement has been compiled in
The Board has put in place ongoing operational throughout the year under
accordance with the FCA’s Disclosure
procedures for identifying, evaluating review and up to the date of this Report.
and Transparency Rule (DTR) 7.2 on
and managing the significant risks faced The Audit & Risk Committee and the
Corporate Governance Statements.
by the Company. As part of this process Board carried out an assessment of the
The Board considers that the Company effectiveness of internal controls in
an annual review of the control systems
has complied with the recommendations managing risk which was conducted on
is carried out. The review covers a
of the AIC Code and relevant provisions the basis of reports from the relevant
consideration of the key business,
of the UK Code throughout the year service providers. The last review took
operational, compliance and financial
under review, except as explained in the place on 29 March 2023. The Board has
risks facing the Company and includes a
following paragraphs. A table providing identified no significant problems with
review of the risks in relation to the
further explanations of how the the Company’s internal control
financial reporting process. The Board
Company has complied with the AIC mechanisms.
reviews a schedule of key risks and the
Code during the year is available in the
management accounts at each quarterly
Corporate Governance section of the
Board meeting. It is assisted by the Audit Section 172 Director Duties
Company’s website: www.mig4vct.co.uk.
& Risk Committee in respect of the
The Directors continue to have regard to
Annual and Half-Year Reports and other
As an externally advised VCT most of the interests of the Company’s
published financial information.
the Company’s operations are Shareholders and other stakeholders,
delegated to third parties and the including the impact of its activities on
The Board has contractually delegated
Company has no executive directors, the community, environment and the
to the Investment Adviser the
employees or internal operations. The Company’s reputation, when making
management of the investment portfolio,
Board has therefore concluded, for the decisions. The Directors, acting fairly
the day-to-day accounting, company
reasons set out in the AIC Guide, that and in good faith, consider what is most
secretarial and administration
not all the provisions of the UK Code are
40 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022

| likely to promote the success of the | board and committee appointments as | documents from the Company’s website: |
| --- | --- | --- |
| Company for its members and | recommended by the Nomination and | www.mig4vct.co.uk. |
| stakeholders in the long-term. For | Remuneration Committee and terms of |  |

The Board has satisfied itself that each
further Information on how the Directors reference of committees; material
of its Committees has sufficient
have fulfilled their duties under Section contracts of the Company and contracts
resources to undertake its duties.
172 of the Companies Act 2006, please of the Company not in the ordinary
see pages 29 to 31. course of business.
Audit & Risk Committee
In regard to the Chair of the Board’s
Fees paid to the Investment Adviser The Audit & Risk Committee will be
tenure, the length of service of all
chaired by Graham Paterson until the
The fees paid to the Investment Adviser directors is considered on an ongoing
conclusion of the Annual General
are set out in Note 4 to the Financial basis, with the Nomination and
Meeting when Lindsay Dodsworth will
Statements on 61 and 62. Remuneration Committee giving
assume the Chair. The Committee
consideration to succession and
In addition, the Investment Adviser comprises Graham Paterson, Jonathan
composition at its year-end meeting, in
received fees totalling £307,585 (2021: Cartwright, Chris Burke and Lindsay
compliance with the AIC Code of
£349,777) during the year ended Dodsworth. A full description of the work
Corporate Governance guidance. The
31 December 2022, being £78,870 of the Audit & Risk Committee is set out
Board also annually reviews the
(2021: £132,666) for advisory and in the Report of the Audit & Risk
constitution and strategy of the
arrangement fees, and £228,715 (2021: Committee on pages 43 and 44 of this
Company.

| £217,111) for acting as non-executive |  | Annual Report. Jonathan Cartwright |  |
| --- | --- | --- | --- |
| directors on a number of investee | Graham Paterson was appointed by the | remains a Committee member until his |  |
| company boards. These amounts are | Board on 10 May 2019, Chris Burke was | retirement from the Board, effective from |  |
| the share of such fees attributable to | appointed by the Board on | the conclusion of the Annual General |  |
| investments made by the Company. | 26November 2019 and Lindsay | Meeting. | the Directors |

Reports of
Dodsworth was appointed by the Board
Alternative Investment Fund on 1 January 2023. They will each be Nomination and Remuneration
seeking re-election/election at the Committee
Manager (“AIFM”)
upcoming Annual General Meeting on
The Board appointed the Company as The Nomination and Remuneration
24 May 2023.

| its own AIFM in compliance with the |  | Committee is chaired by Graham |
| --- | --- | --- |
| European Commission’s Alternative | The Board is of the view that a term of | Paterson. Lindsay Dodsworth will |
| Investment Fund Management Directive | service in excess of nine years is not in | assume the Chair from the conclusion of |
| with effect from 22 July 2014. The | itself prejudicial to a director’s ability to | the Annual General Meeting. The |
| Company is registered as a small AIFM | carry out their duties effectively and | Committee comprises Graham Paterson, |
| and is therefore exempt from the | from an independent perspective; the | Chris Burke and Lindsay Dodsworth. |
| principal requirements of the Directive. | nature of the Company’s business is | Jonathan Cartwright is also a member |
| Gresham House continues to provide | such that an individual director’s | until his retirement from the Board, |
| investment advisory and administrative | experience and continuity of non- | effective from the conclusion of the |
| services to the Company. | executive board membership can | Annual General Meeting. |

significantly enhance the effectiveness
In considering nominations, the
of the Board as a whole.
The Board and its Committees
Committee is responsible for making
The powers of the Directors have been Following the performance evaluation of recommendations to the Board
granted by company law, the Company’s the Directors during the year, the Board concerning new appointments of
Articles of Association and resolutions confirms that both Graham Paterson and Directors to the Board and its
passed by the Company’s members in Chris Burke continue to demonstrate committees; the periodic review of the
general meeting. Resolutions are commitment to their roles and to be composition of the Board and its
proposed annually at each annual effective in carrying out their duties on committees; and the annual
general meeting of the Company to behalf of the Company. performance review of the Board, the
authorise the Directors to allot shares, Directors and the Chair. This includes
Copies of the directors’ letters of
disapply the pre-emption rights of the ongoing review of each Director’s
appointment are available for inspection
members and buyback the Company’s actual or potential conflicts of interest
at the place of the Annual General
own shares on behalf of the Company. which may arise as a result of the
Meeting for at least 15 minutes before
These authorities are currently in place external business activities of Board
and during the Meeting.
and resolutions to renew them will be members.
proposed at the Annual General
A full description of the work of the
Meeting of the Company to be held on Board Committees
Committee with regard to remuneration
24 May 2023. The Board has established three
is included within the Directors’
Committees: the Nomination and
The Board has agreed a schedule of Remuneration Report on pages 45 to 48.
Remuneration Committee, the
matters specifically reserved for
Investment Committee and the Audit &
decision by the Board. These include Investment Committee
Risk Committee, each with
compliance with the requirements of the
responsibilities for specific areas of its The Investment Committee is chaired by
Companies Act 2006 and the Income
activity. Each of the Committees have Chris Burke and comprises all four
Tax Act 2007, the UK Listing Authority
written terms of reference, which detail Directors until Jonathan Cartwright’s
and the London Stock Exchange;
their authority and duties. Shareholders retirement.
strategy and management of the
may obtain copies of these by making a
Company; changes relating to the The Committee meets as necessary to
written request to the Company
Company’s capital structure or its status consider the investment proposals put
Secretary or by downloading the
as a plc; financial reporting and controls; forward by the Investment Adviser. The
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 41
## Corporate Governance Statement
Committee advises the Board on the Investment management and Overall, the Board continues to believe
development and implementation of the service providers that the Investment Adviser possesses
Investment Policy and leads the process the experience, knowledge and
The Directors carry out an annual review
for the ongoing monitoring of investee resources that are required to support
of the performance of, and contractual
companies and the Company’s the Board in achieving the Company’s
arrangements with, the Investment
investment therein. Investment guidance long term investment objectives. The
Adviser. The annual review of the
has been issued to the Investment Directors therefore believe that the
Investment Adviser forms part of the
Adviser and the Committee ensures that continued appointment of the
Board’s overall internal control
this guidance is adhered to. New Investment Adviser to the Company on
procedures discussed previously. As
investments and divestments are the terms currently agreed is in the
part of this review, the Board considers
approved by the Committee following interests of Shareholders, and this was
the quality and continuity of the
discussions between Committee formally approved by the Board on
investment management team,
members and are subsequently ratified 14November 2022.
investment performance, quality of
by the Board. Investment matters are
information provided to the Board, The principal terms of the Company’s
discussed at each Board meeting.
remuneration of the Investment Adviser, Investment Advisory Agreement, and its
During the year, the Committee formally
the investment process and the results Performance Incentive Fee Agreement,
approved all investments, divestments
achieved to date. A review of the are set out in Note 4 to the Financial
and variation decisions, meeting
performance of the Company is included Statements on pages 61 and 62 of this
informally on numerous occasions.

|  | in the Strategic Report on pages 8 to 11. | Annual Report. The Board seeks to |
| --- | --- | --- |
| The Committee considers and agrees, | The Board concluded that the | ensure that the terms of these |
| on the advice of the Investment Adviser | Investment Adviser had performed | agreements represent an appropriate |
| for recommendation to the Board, all | consistently well over the medium-term | balance between cost and the |
| unquoted investment valuations. | and has delivered above target dividend | incentivisation of the Investment |
|  | returns to shareholders in the year under | Adviser. |

Investments are valued in accordance
review. The Company’s investment
with the International Private Equity and By order of the Board
portfolio has performed well in the
Venture Capital (IPEV) Valuation
circumstances and the Investment
Guidelines under which investments are
Adviser has been proactive in ensuring
valued at fair value as defined in those Gresham House Asset Management
Reports of the Company remains informed and
guidelines. Any AIM or other quoted Limited
the Directors well-positioned to maintain compliance
investment will be valued at the closing Company Secretary
with VCT tax legislation.
bid price of its shares as at the relevant
reporting date, in accordance with The Board places significant emphasis
5 April 2023
generally accepted accounting practice. on the Company’s performance against
its peers and further information on this
has been included in the Strategic
Financial risk management
Report on page 10. The Board further
The main risks arising from the
considered the Investment Adviser’s
Company’s financial instruments are due
commitment to the promotion of the
to investment risk, liquidity risk, credit
Company and was satisfied that this was
risk, fluctuations in market prices (market
highly prioritised by the Investment
price risk), cash flow interest rate risk
Adviser as evidenced by, inter alia, the
and currency risk. The Board regularly
Mobeus VCT fundraisings which have
reviews and agrees policies for
taken place between 2010 and 2022
managing these risks and full details can
and annual Shareholder events.
be found in Note 15 to the Accounts on
pages 69 to 76 of this Annual Report. The Board considers that the Investment
Adviser continued to exercise
independent judgement while producing
Future developments
valuations which reflect fair value.
The outlook for the Company is set out
in the Chairman’s Statement on page 5.
42 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
## Report of the Audit & Risk Committee
### This Report of the Audit & Risk and in accordance with the IPEV Tax Compliance Services
Guidelines. The Committee received a
Philip Hare & Associates LLP were
### Committee forms part of the
review within a report from the external
appointed during the year ended
### Directors’ Report. auditor as part of the year-end audit
31December 2018 and continued to
process. These reports were discussed
The Audit & Risk Committee provide such services during the year
in full by the Committee, the Investment
(“Committee”) is chaired by Graham under review.
Adviser and the Auditor as necessary.
Paterson and currently comprises
himself, Jonathan Cartwright, Lindsay Income from investee companies
Key issues considered by the
Dodsworth and Chris Burke. There are
The Committee notes that revenue from
Committee
four directors appointed to the
loan stock and dividends may be
Company, and it was deemed The key accounting and reporting issues
uncertain given the type of companies in
appropriate that the Chair, who was considered by the Committee in addition
which the Company invests. Dividends
considered to be independent upon his to those described above during the
in particular may be difficult to predict.
appointment, should be a member of the year included:
The payments received however have a
Audit & Risk Committee. Lindsay will
direct impact on the level of income
take over the role of Chair of the Going concern and long-term
dividends the Company is able to pay to
Committee following the AGM on 24
viability Shareholders. The Committee agrees
May 2023 however Graham will remain a
policies for revenue recognition and
The Committee monitors the Company’s
member of the Committee. Jonathan
reviews their application at each of its
resources at each quarterly board
Cartwright remains a member until the
meetings. It considers schedules of
meeting and has satisfied itself that the
conclusion of the AGM.
income received and receivable from
Company has an adequate level of
each of the investee companies and
The duties of the Committee are set out resources for the foreseeable future. It
assesses, in consultation with the
in the Terms of Reference which can be has assessed the viability of the the Directors
Investment Adviser, the likelihood of Reports of
found on the website in the Corporate Company for three years and beyond.
receipt of each of the amounts.

| Governance section at: | Consideration is given to the cash |  |
| --- | --- | --- |
| www.mig4vct.co.uk. | balances and holdings in money market |  |
|  | funds, together with the ability of the | Key risks faced by the Company |

A summary of the Audit & Risk
Company to realise its investments. See The Board has identified the key risks
Committee’s principal activities for the
page 34 of the Strategic Report for faced by the Company and established
year to 31 December 2022 is provided
further details. appropriate controls (as disclosed in the
below:
Strategic Report on pages 32 and 33).
Recognition of impairment and The Committee monitors these controls
Financial statements
realised losses and reviews any incidences of non-
The Half-Year and Annual Reports to compliance. Further details are set out in
If an investment has been impaired such
Shareholders were thoroughly reviewed the section of this report that discusses
that there is no realistic expectation that
by the Committee prior to submission to the Company’s system of internal
there will be a full return from the
the Board for approval. controls (page 40).
investment, the loss is treated as a
permanent impairment and is
Internal control Cyber Security
recognised as a realised loss in the

| The Committee has monitored the | Financial Statements. The Committee | The Board sought and obtained |
| --- | --- | --- |
| system of internal of controls throughout | reviews the appropriateness and | assurances during the year from the |
| the year under review as described in | completeness of such impairments. | Investment Adviser, the Registrar and the |
| more detail in this Report on page 40. It |  | other service providers concerning their |
| receives a report by exception on the | Compliance with the VCT tests | cyber security procedures and policies. |

Company’s progress against its internal
The Company engages the services of a
controls at its Annual and Half-Year
VCT Status Adviser (Philip Hare & Anti-tax evasion policy
results meetings and reviews the
Associates LLP) to advise on its ongoing In compliance with the Criminal Finance
schedule of internal controls and risks at
compliance with the legislative Act 2017 the Company adopted a zero
each meeting. A full review of the
requirements relating to VCTs. A report tolerance towards the criminal facilitation
internal controls in operation by the
on the Company’s compliance of tax evasion. A summary of the policy
Company was undertaken by the
supported by the tests carried out is is available on page 37 of the Annual
Committee on 29 March 2023.
produced by the VCT Status Adviser on Report.
a bi-annual basis and reviewed by the
Valuation of investments
Committee for recommendation to the
Safekeeping of the Company’s
The Investment Adviser prepared Board. The Committee has continued to
documents of title to its
valuations of the investments in the consider the risk and compliance
investments

| portfolio at the end of each quarter and | aspects of changes to the VCT Rules |  |
| --- | --- | --- |
| these were considered in detail and | introduced by the Finance Act (No 2) | The Committee has established |
| agreed by the Investment Committee for | 2015 and the Finance Act (No 2) 2018. | procedures for the safekeeping of the |
| recommendation to the Board. The Audit |  | Company’s documents of title under a |
|  | As an essential part of this work, the | Safekeeping Agreement dated |

& Risk Committee continued to monitor
Committee has held ongoing 17February 2022 with Apex Fund and
the adequacy of the controls over the
discussions with the Company’s VCT Corporate Services (Guernsey) Limited,
preparation of these valuations. As part
Status Adviser throughout the year. for accessing and dealing with these
of this process, it focused on ensuring
that both the bases of the valuations and documents.
any assumptions used were reasonable
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 43
Relationship with the external - charged justifiable fees in respect of
auditor and re-appointment the scope of services provided; and
The Committee is responsible for - handled key audit issues effectively
overseeing the relationship with the and responded robustly to the
external Auditor, assessing the Committee’s questions.
effectiveness of the external audit
This review constituted the Audit & Risk
process and making recommendations
Committee’s annual assessment of the
on the appointment and removal of the
effectiveness of the external audit
external Auditor. It makes
process. The Audit & Risk Committee
recommendations to the Board on the
concluded that the re-appointment of
level of audit fees and the terms of
BDO LLP is in the best interests of the
engagement for the Auditor. The
Company and Shareholders and the
external Auditor is invited to attend Audit
Board recommends their re-appointment
& Risk Committee meetings, where
by Shareholders at the forthcoming
appropriate, and also has the
Annual General Meeting.
opportunity to meet with the Committee
and its Chair without representatives of
the Investment Adviser being present. Non-audit services
The Board regularly reviews and
The Committee undertook an audit
monitors the external Auditor’s
tender process in 2016 in compliance
independence and objectivity. As part of
with the requirements on audit firm
this it reviews the nature and extent of
rotation under the European Audit
services supplied by the Auditor to
Regulation Directive. As a consequence
ensure that independence is maintained.
of that process, BDO LLP were

| reappointed. BDO LLP has been the | The Committee has reviewed the |
| --- | --- |
| independent auditor to the Company | implications of the Financial Reporting |
| since 2004, when the Company became | Council‘s (“FRC”) Revised Ethical |
| subject to PIE rules in 2006 while BDO | Reporting Standard 2019 effective from |

Reports of
were still the auditors. 5 March 2020. The Committee, based
the Directors
upon the review of this 2019 Ethical
The Audit & Risk Committee also
Standard, has decided to purchase
undertakes an annual review of the
certain non-audit services, such as tax
external Auditor and the effectiveness of
compliance services and iXBRL tagging,
the audit process on an annual basis.
from separate firms. The auditor is
When assessing the effectiveness of the
permitted to provide audit-related
process, the Committee considers
services in respect of the Half-Year
whether the Auditor:
Report (if requested by the Board),
- demonstrated strong technical whereas PHA provides tax compliance
knowledge and a clear services, and Arkk Consulting Limited,
understanding of the business; one of the Company’s investee
companies, provides the iXBRL tagging
- indicated professional scepticism in
service.
key judgements and raised any
significant issues in advance of the
Additional disclosures in the
audit process commencing;
Directors’ Report
- provided an audit team that is
Disclosures required by certain publicly-
appropriately resourced;
traded companies as set out in Part 6 of

| - demonstrated a proactive approach |  | Schedule 7 of the Large and Medium- |
| --- | --- | --- |
|  | to the audit planning process and | sized Companies and Groups (Accounts |
|  | engaged with the Committee Chair | and Reports) Regulations 2008 (as |
|  | and other key individuals within the | amended 2013) are contained in the |
|  | business; | Directors’ Report on page 36. |
| - provided a clear explanation of the |  | By order of the Board |

scope and strategy of the audit;
- demonstrated the ability to
communicate clearly and promptly
with the members of the Committee
and the Investment Adviser and
Graham Paterson
produce comprehensive reports on
Chair of the Audit & Risk Committee
its findings;
5 April 2023
- demonstrated that it has appropriate
procedures and safeguards in place
to maintain its independence and
objectivity;
44 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
## Directors’ Remuneration Report
Introduction In recognition of the increased level of Since all the Directors are non-
regulation and size of the Company, the executive, the Company is not required
This Report has been prepared by the
Committee have recommended, with to comply with the executive director’s
Directors in accordance with the
effect from 1 January 2023, an increase provisions of the Listing Rules, the UK
requirements of Schedule 8 of The
in Director’s fees from £27,000 to Corporate Governance Code and the
Large and Medium-sized Companies
£30,000 for the Chair, and from £21,000 AIC Code of Corporate Governance in
and Groups (Accounts and Reports)
to £23,000 for Directors. Board respect of Directors’ remuneration,
(Amendment) Regulations 2013, the
members will continue to receive an except in so far as they relate specifically
Companies Act 2006 and the Listing
unchanged supplement of £6,000 for to Non-Executive Directors.
Rules of the UK Listing Authority (“the
membership of the Investment
Listing Rules”).
Committee and an unchanged Performance-related remuneration
The Company’s independent auditor is supplement of £5,000 for membership
Whilst it is a key element of this policy to
required to give its opinion on the of the Audit & Risk Committee.
recruit directors of the calibre required
information provided on Directors’
to lead the Company in achieving its
emoluments and Director’s interests on
short and long-term objectives no
page 47 of this Annual Report and this is
component of the fees paid is directly
explained further in the Auditor’s Report
related to performance.
to Shareholders on pages 50 to 54.
The resolution to approve the Directors’ Graham Paterson
Pensions
Remuneration Policy as set out in the Chair of the Nomination and
All the Directors are non-executive and
Annual Report for the year ended Remuneration Committee
the Company does not provide pension
31 December 2019 was approved by
5 April 2023 benefits to any of the Directors.
Shareholders at the Annual General
the Directors
Meeting of the Company held on 2 June
Reports of
Additional benefits
2020. Full details of the Remuneration

| Policy can be found within this report in | Directors’ Remuneration Policy | The Company does not have any |
| --- | --- | --- |
| the adjacent column and on page 47. | The remuneration policy is set by the | schemes in place to pay bonuses or |
|  | Board on the recommendation of the | benefits to the Directors. No |

The resolution to approve the Directors’
Nomination and Remuneration arrangements have been entered into
Annual Remuneration Report, as set out
Committee. In determining the between the Company and the Directors
in the Annual Report for the year ended
Company’s remuneration policy, the to entitle any of the Directors to
31 December 2021, was approved by
Committee seeks to determine a level of compensation for loss of office. None of
Shareholders at the Annual General
fees appropriate to attract and retain the Directors receive pension benefits
Meeting of the Company held on 17 May
individuals of sufficient calibre to lead from the Company and the Company
2022. An ordinary resolution will be
the Company in achieving its strategy. has not granted any Director any options
proposed at the forthcoming Annual
When considering the level of Directors’ over the share capital of the Company.
General Meeting of the Company to be
fees, it takes account of the required
held on 24 May 2023 for the approval of
workload and responsibilities of each Recruitment remuneration
the Annual Remuneration Report as set
role and the value and amount of time
out below. Remuneration of any new Director, who
that a Director is required to commit to
may subsequently be appointed to the
the Company. It further considers
Board, will be in line with the
Remuneration statement by the
remuneration levels elsewhere in the
Remuneration Policy set out in this
Chair of the Nomination and Venture Capital Trust industry for
Report and the levels of remuneration
Remuneration Committee companies of a similar size and
stated therein, as modified from time to
This report sets out the Company’s structure, together with other relevant
time.
forward looking Directors’ Remuneration information.
Policy and the Annual Remuneration
The level of fees paid to each of the Shareholders’ views on
Report which describes how this policy
Directors is reviewed annually by the remuneration
has been applied during the year.
Nomination and Remuneration
The Board prioritises the views of
The Committee reviewed the fees paid Committee which makes
Shareholders and encourages an open
in the year ended 31 December 2022 recommendations to the Board.
discussion at general meetings of the
which have remained at the current level Company. It takes Shareholders’ views
The Committee has access to
since 2018. As part of this review it into account, where appropriate, when
independent advice where and when it
considered information on the fees paid formulating its remuneration policy.
considers appropriate. However, it was
to directors of a peer group of VCTs of a Shareholders can contact the Chair or the
not considered necessary to take any
similar size operating in its sector. Company Secretary, Gresham House, at
such advice during the year under
review. any time by email using the address:
mobeusvcts@greshamhouse.com.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 45
# Directors' Remuneration Report

## Directors' terms of appointment

In accordance with the 2019 AIC Code, Graham Paterson and Chris Burke have agreed to offer themselves for re-election annually and will next seek re-election by Shareholders at the Company's Annual General Meeting on 24 May 2023. Lindsay Dodsworth was appointed to the Board in January 2023, and under the Articles is seeking election at this, the first Annual General Meeting since her appointment to the Board. Jonathan Cartwright has confirmed his intention to retire from the Board at the conclusion of the Annual General Meeting and therefore will not be offering himself for re-election at the meeting.

All of the Directors are non-executive and none of the Directors has a service contract with the Company.

All Directors receive a formal letter of appointment setting out the terms of their appointment and their specific

duties and responsibilities and the fees pertaining to their appointment. A Director's appointment may be terminated on three months' notice being given by the Company and in certain other circumstances. Copies of the Directors' appointment letters will be available for inspection at the place of the Annual General Meeting on 24 May 2023 from 2:00 pm. New Directors are asked to undertake that they have sufficient time to carry out their responsibilities to the Company and to disclose their other significant time commitments to the Board before appointment.

## Shareholder approval of the Company's Remuneration Policy

This policy applied throughout the financial year ended 31 December 2022.

A resolution to approve the Directors' Remuneration Policy, as set out in the Annual Report for the year ended

31 December 2019, was approved by Shareholders at the Annual General Meeting held on 2 June 2020. The Company received proxy votes in favour of the resolution representing 83.12% (including those who appointed the Chair to vote at his discretion) of the votes received (against 16.88%).

The Board is required to ask Shareholders to approve the Remuneration Policy every three years. The Directors will therefore recommend that Shareholders approve the Policy again at the Annual General Meeting of the Company to be held on 24 May 2023.

## Future Remuneration Policy

The table below illustrates how the Company's Objective is supported by its Remuneration Policy. It sets out details of each component of the pay package and the maximum amount receivable per annum by each Director. The Nomination and Remuneration Committee and the Board review the fees paid to Directors annually in accordance with the Remuneration Policy set out opposite and may decide that an increase in fees is appropriate in respect of subsequent years.

|  Director Size | Components of Pay Package |   |   | Maximum payment for the forthcoming year | Performance conditions  |
| --- | --- | --- | --- | --- | --- |
|   |  Director's fees (p.a.) | Annual supplements payable to:  |   |   |   |
|   |   |  Audit & Risk Committee Members | Investment Committee Members  |   |   |
|  **Jonathan Cartwright^{1}** Chair | £30,000 | £5,000 | £6,000 | £41,000 | None  |
|  **Chris Burke** Chair, Investment Committee | £23,000 | £5,000 | £6,000 | £34,000 | None  |
|  **Graham Paterson** Chair, Audit & Risk and Nomination and Remuneration Committees | £23,000 | £5,000 | £6,000 | £34,000 | None  |
|  **Lindsay Dodsworth^{2}** | £23,000 | £5,000 | £6,000 | £34,000 | None  |
|  **Total fees** | **£99,000** | **£20,000** | **£24,000** | **£143,000** |   |

$^{1}$ Jonathan Cartwright will retire as a Director and Chair following the AGM on 24 May 2023 and his role as Chair will be succeeded by Graham Paterson.

$^{2}$ Lindsay Dodsworth will take over as Chair of the Audit & Risk and of the Nomination and Remuneration Committees from Graham Paterson following the 24 May 2023 AGM.

48

Reviews Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Company Objective
To provide investors with an attractive return, by maximising the stream of dividend distributions from the income and capital
gains generated by a diverse and carefully selected portfolio of investments, while continuing at all times to qualify as a VCT.
Remuneration Policy
To ensure that the levels of remuneration paid are sufficient to attract, retain and motivate directors of the quality required to
manage the Company in order to achieve the Company’s Objective.

| Nomination and Remuneration | review of the remuneration of the | One new appointment was made to the |
| --- | --- | --- |
| Committee | Directors and makes recommendations | Board on 1 January 2023, post the year |
|  | to the Board on the level of Directors’ | end, when Lindsay Dodsworth was |

The Committee is chaired by Graham
fees. The Committee may, at its appointed as a Non-Executive Director.
Paterson with Jonathan Cartwright,
discretion, recommend to the Board that Helen Sinclair retired as a Director of the
Lindsay Dodsworth and Chris Burke as
individual Directors should be awarded Company on 28 February 2022.
its other members. Jonathan Cartwright
further payments in respect of additional
will resign as a member of the
work undertaken on behalf of the
Committee on 24 May 2023. Lindsay
Company. It is responsible for the
Dodsworth will assume the Chair
appointment of remuneration
following the AGM of the Company. All
consultants, if this should be considered
members of the Committee were
necessary, including establishing the
considered to be independent of the
selection criteria and terms of reference
Investment Adviser during the year
for such an appointment. The Committee the Directors
under review. The Committee meets at Reports of
met twice during the year under review
least once a year and is responsible for
with full attendance from all its members.
making recommendations to the Board
The Committee’s duties in respect of
on remuneration policy and reviewing
Nominations to the Board are outlined
the policy’s ongoing appropriateness
on page 41 of the Annual Report.
and relevance. It carries out an annual

| Annual percentage change in |  |  |  |  |  |  |  | Directors’ interests in the Company’s shares (audited) |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Directors’ Remuneration |  |  |  |  |  |  |  | The Company does not require the Directors to hold shares in the Company. |  |  |  |  |  |  |  |  |  |
| The following table sets out the annual |  |  |  |  |  |  |  | The Directors, however, believe that it is in the best interests of the Company and |  |  |  |  |  |  |  |  |  |
| percentage change in Directors’ |  |  |  |  |  |  |  | its Shareholders for each Director to maintain an interest in the Company. The |  |  |  |  |  |  |  |  |  |
| remuneration for the year to |  |  |  |  |  |  |  | Directors who held office throughout the year under review and their interests as |  |  |  |  |  |  |  |  |  |
| 31December 2022: |  |  |  |  |  |  |  | at 31 December 2022 were: |  |  |  |  |  |  |  |  |  |
|  |  | % change |  | % change |  | % change |  |  |  |  |  | 31 December 2022 31 December 2021 |  |  |  |  |  |
|  |  |  | for the |  | for the |  | for the |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Percentage of |  |  | Percentage of |  |
|  |  | year to 31 |  | year to 31 |  | year to 31 |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  | Shares |  | issued share |  | Shares | issued share |  |
|  |  | December |  | December |  | December |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  | 3 |  | Director |  |  |  | held |  | capital | held |  | capital |
|  |  |  | 2022 |  | 2021 |  | 2020 |  |  |  |  |  |  |  |  |  |  |
| Jonathan |  |  |  |  |  |  |  | Jonathan Cartwright 61,278 0.06 31,977 0.04 |  |  |  |  |  |  |  |  |  |
| Cartwright (7.3) 7.9 n/a |  |  |  |  |  |  |  | Chris Burke 152,623 0.15 36,331 0.04 |  |  |  |  |  |  |  |  |  |
|  | 1 |  |  |  |  |  |  |  |  | 1 |  |  |  |  |  |  |  |
| Chris Burke |  |  | 11.3 3.7 n/a |  |  |  |  | Graham Paterson |  |  | 15,000 0.01 15,000 0.02 |  |  |  |  |  |  |
| Graham |  |  |  |  |  |  |  |  | 2 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | Helen Sinclair |  |  | 14,862 0.01 14,862 0.02 |  |  |  |  |  |  |

Paterson (3.0) 3.1 n/a
1
2 Graham Paterson holds his shares in a nominee account.
Helen Sinclair n/a 3.1 -
2
Helen Sinclair resigned as a Director on 28 February 2022.
Christopher
Moore n/a n/a - There have been no changes to the Directors’ share interests between the year-end and
1 the date of this Annual Report.
Chris Burke was appointed to the Audit & Risk
and Nomination and Remuneration committees The remuneration of the Directors contains no performance related variable element. As
during the year.
the Company has no employees, the directors do not consider it relevant to compare
2
Helen Sinclair retired as a director on
director fees against employee pay.
28 February 2022 and her fee was pro-rated to
that date.
3 Directors’ remuneration: 5-year comparison
In 2021, discretionary payments of £3,000 and
£1,000 were paid to the Chair and Directors,
2022 2017
respectively.
Director £ £ Change
Chair
No sums were paid to third parties in 1 2
(includes Audit and Investment Committee Supplements ) 38,000 33,500 22.4%
respect of any of the Director’s services
Director Fee
during the year under review. 1 2
(includes Audit and Investment Committee Supplements ) 32,000 28,500 15.8%
1
Audit & Risk Committee (2022: £5,000; 2017: £2,500) and Investment Committee (2022: £6,000,
2017: £6,000) fee supplements are paid to all members.
2
In 2021, not included in the table above, discretionary payments of £3,000 and £1,000 were paid
to the Chair and remaining directors, respectively.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 47
## Directors’ Remuneration Report
Relative importance of spend on Directors’ attendance at Board and Committee meetings in 2022
Directors’ fees
The table below sets out the Directors’ attendance at quarterly Board meetings and
Committee meetings held during the year to 31 December 2022. In addition to the

|  | Year to |  | Year to | Percentage |  |
| --- | --- | --- | --- | --- | --- |
| 31 December |  | 31 December |  | Increase/ | quarterly Board meetings, the Board met on other occasions to consider specific |
|  | 2022 |  | 2021 | (decrease) | issues as they arose. |

£ £ %

| Total | Directors Board Meetings (4) Audit & Risk |  | Nomination and |
| --- | --- | --- | --- |
| directors’ |  | Committee | Remuneration |
| fees 106,500 135,000 (21.1)% |  | Meetings (2) | Committee |

Meetings (3)
Dividends
paid/payable
Eligible Attended Eligible Attended Eligible Attended
in respect of
the year 9,134,214 7,520,561 21.5% Jonathan Cartwright 4 4 2 2 3 3
Chris Burke 4 4 2 2 3 3
Share
Graham Paterson 4 4 2 2 3 3
Buybacks 1,460,054 1,230,702 18.6%
Company performance

| The graph below charts the total | AIC (based on figures provided by | The share price total return comprises the |
| --- | --- | --- |
| shareholder return of the Company’s | Morningstar). The Board considers these | share price plus cumulative dividends |
| shares on a share price basis (assuming all | indices to be the most appropriate to use | paid per share assuming the dividends |
| dividends are re-invested and excluding | to measure the Company’s relative | paid were re-invested on the date on |
| the tax relief available to Shareholders) | performance over the medium to long | which the shares were quoted ex- |
| over the past ten years compared with | term. The total shareholder returns have | dividend in respect of each dividend. |
| that of an index of all VCTs and an index of | each been rebased to 100 pence at |  |

An explanation of the performance of the
generalist VCTs which are members of the 31 December 2012.
Company is given in the Chairman’s
Statement on page 2, the Performance
Reports of section of the Strategic Report on pages
the Directors 380p
8 to 11 and in the Investment Adviser’s
Review and Investment Portfolio
330p
Summary on pages 12 to 27.
280p By order of the Board
230p Gresham House Asset Management
Limited
180p Company Secretary
5 April 2023
130p
80p
31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/201831/12/2017 31/12/2019 31/12/2020 31/12/2021 31/12/2022
Mobeus Income & Growth 4 VCT plc Share Price Total Return
AIC All VCTs Share Price Total Return
AIC Generalist VCTs Share Price Total Return
48 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
## Statement of Directors’ Responsibilities
The Directors are responsible for The Directors are responsible for (b) The Annual Report includes a fair
preparing the Annual Report and the keeping adequate accounting records review of the development and
Financial Statements in accordance with that are sufficient to show and explain performance of the business and the
applicable law and regulations. the Company’s transactions and position of the Company, together
disclose with reasonable accuracy at with a description of the principal
Company law requires the directors to
any time the financial position of the risks and uncertainties that it faces.
prepare financial statements for each
Company and enable them to ensure
financial year. Under that law the Having taken advice from the Audit &
that the Financial Statements comply
directors are required to prepare the Risk Committee, the Board considers the
with the Companies Act 2006. They are
financial statements and have elected to Annual Report and Financial Statements,
also responsible for safeguarding the
prepare the company financial taken as a whole, as fair, balanced and
assets of the Company and hence for
statements in accordance with United understandable and that it provides the
taking reasonable steps for the
Kingdom Generally Accepted information necessary for Shareholders
prevention and detection of fraud and
Accounting Practice (United Kingdom to assess the Company’s position,
other irregularities.
Accounting Standards, comprising performance, business model and
Financial Reporting Standard 102, the strategy.
Website publication
Financial Reporting Standard applicable
Neither the Company nor the Directors
in the UK and Republic of Ireland (‘FRS The Financial Statements are published
accept any liability to any person in
102’) and applicable law). Under on the Company’s website at
relation to the Annual Report except to
company law the directors must not www.mig4vct.co.uk, which is maintained
the extent that such liability could arise
approve the financial statements unless by the Investment Adviser. The
under English law. Accordingly, any
they are satisfied that they give a true maintenance and integrity of the website
liability to a person who has
and fair view of the state of affairs of the maintained by the Investment Adviser is,
demonstrated reliance on any untrue or
company and of the profit or loss for the so far as it relates to the Company, the
misleading statement or omission shall the Directors
company for that period. responsibility of the Investment Adviser.
Reports of
be determined in accordance with
The work carried out by the Auditor
In preparing these Financial Statements, section 90A and schedule 10A of the
does not involve consideration of the
the Directors are required to: Financial Services and Markets Act
maintenance and integrity of this
2000.

| ●● select suitable accounting policies |  | website and, accordingly, the Auditor |  |
| --- | --- | --- | --- |
|  | and then apply them consistently; | accepts no responsibility for any | The names and functions of the |
|  |  | changes that have occurred to the | Directors are stated on page 35. |

●● make judgements and accounting
accounts since they were initially
estimates that are reasonable and
For and on behalf of the Board
presented to the website. The accounts
prudent;
are prepared in accordance with UK
●● state whether the Financial
legislation, which may differ from
Statements have been prepared in
legislation in other jurisdictions.
accordance with United Kingdom
accounting standards, subject to any
Directors’ responsibilities pursuant
material departures disclosed and
to Disclosure and Transparency
explained in the Financial Jonathan Cartwright
Rule 4 of the UK Listing Authority
Statements; Chair
The Directors confirm to the best of their
●● prepare the Financial Statements on
5 April 2023
knowledge that:
the going concern basis unless it is
inappropriate to presume that the
(a) The Financial Statements, which
Company will continue in business;
have been prepared in accordance
and
with United Kingdom Generally
●● prepare a Strategic Report, a Accepted Accounting Practice, give
Directors’ Report and Directors’ a true and fair view of the assets,
Remuneration Report which comply liabilities, financial position and the
with the requirements of the profit and loss of the Company.
Companies Act 2006.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 49
Independent Auditor's Report

# Independent Auditor's Report to the Members of Mobeus Income & Growth 4 VCT plc

## Opinion on the financial statements

- give a true and fair view of the state of the Company's affairs as at 31 December 2022 and of its loss for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Mobeus Income & Growth VCT 4 Plc ("the Company") for the year ended 31 December 2022 which comprise the Income statement, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

## Basis for opinion

We conducted our audit in accordance with international Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit opinion is consistent with the additional report to the audit committee.

## Independence

Following the recommendation of the audit committee, we were appointed by the Board of Directors in 2004 to audit the financial statements for the year ended 30 September 2004 and subsequent financial periods. The period of total uninterrupted engagement, including retenders and reappointments is 18 years, covering the years ended 30 September 2004 to 31 December 2022. We remain

independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by that standard were not provided to the Company.

## Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:

- Obtaining the VCT compliance reports during the year and as at year end and reviewing the calculations therein to check that the Company was meeting its requirements to retain VCT status;
- Reviewing the forecasted cash flows that support the Directors' assessment of going concern, challenging assumptions and judgements made in the forecasts, and assessing them for reasonableness. In particular, we considered the available cash resources relative to the forecast expenditure which was assessed against the prior year for reasonableness;
- Evaluating the Directors' method of assessing the going concern in light of market volatility and the present uncertainties in economic recovery created by the ongoing matters including the current situation in Ukraine/Russia, high cost of living crisis, increase in inflation; and
- Calculating financial ratios to ascertain the financial health of the Company.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial

statements are authorised for issue.

In relation to the Company's reporting on how it has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the Directors' statement in the financial statements about whether the Directors considered it appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

## Overview

|   | 2022 | 2021  |
| --- | --- | --- |
|  **Key audit matters** | Valuation of investments | ✓  |
|  **Materiality** | €919,000 (2021 £1,310,000) based on 2% (2021 2%) of Total investments |   |

## An overview of the scope of our audit

Our audit was scoped by obtaining an understanding of the company and its environment including the company's system of internal control, and assessing the risks of material misstatement in the financial statements. We also addressed the risk of management override of internal controls, including assessing whether there was evidence of bias by the Directors that may have represented a risk of material misstatement.

## Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, including those which had the greatest effect on the overall audit strategy, the allocation of resources in the audit, and directing the efforts of the engagement team. This matter was addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter.

50

Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Key audit matter How the scope of our audit addressed the key audit matter
Valuation of We consider the Our sample for the testing of the unquoted investments was stratified
investments valuation of unquoted according to risk considering, inter alia, the value of the individual
investments, the nature of the investments, the extent of the fair value
investments to be the
Note 8 movement and the subjectivity of the valuation technique.
most significant audit
area as there is a high For investments in our sample we:
level of estimation
Challenged whether the valuation methodology was the most appropriate in
uncertainty involved
the circumstances under the International Private Equity and Venture Capital
in determining the
Valuation (“IPEV”) guidelines and applicable accounting standards;
unquoted investment
Recalculated the value attributable to the company, having regard to the
valuations.
application of enterprise value across the capital structures of the investee
There is also an companies.
inherent risk of
For a sample of investments valued using less subjective valuation
management override
techniques (price of recent investment reviewed for changes in fair value) we:
arising from the
●● Agreed the cost or price of the recent investment to supporting
unquoted investment
documentation;
valuations being
prepared by the ●● Considered whether the investment was an arms length transaction
through reviewing the parties involved in the transaction and checking
Investment Adviser,
whether or not they were already investors of the investee company;
who is remunerated
based on the net ●● Considered whether there were any indications that the cost or price of
the recent investment was no longer representative of fair value
asset value of the
considering, inter alia the current performance of the investee company
Company.
and the milestones and assumptions set out in the investment proposal;
For these reasons we and
considered the ●● Considered whether the price of the recent investment is supported by
valuation of unquoted alternative valuation techniques.
investments to be a
For a sample of investments that were valued using more subjective
key audit matter. Auditor’s Report
techniques (earnings and revenue multiples) we:
Independent
●● Challenged and corroborated inputs to the valuation with reference to
management information of investee companies and market data,
including considering the impact of the current situation in Ukraine/
Russia, high cost of living crisis, increase in inflation on the valuation. We
assessed the impact of estimation uncertainty concerning these
assumptions and the disclosure of these uncertainties in the financial
statements;
●● Reviewed the historical financial statements and any recent
management information available to support assumptions about
maintainable revenues and earnings used in the valuation;
●● Considered the revenue or earnings multiples applied by reference to
observable listed company market data; and
●● Challenged the consistency and appropriateness of adjustments made
to such market data in establishing the earnings or revenue multiple
applied in arriving at the valuations adopted by agreeing the adjusted
multiples to independent sources, the peer group, the market and sector
in which the investee company operates and obtaining independent
third party multiples.
Where appropriate, we performed a sensitivity analysis by developing our
own point estimate where we considered that alternative input assumptions
could reasonably have been applied and we considered the overall impact
of such sensitivities on the portfolio of investments in determining whether
the valuations as a whole are reasonable and free from bias.
Key observations:
Based on the procedures performed we consider the investment valuations
to be appropriate considering the level of estimation uncertainty.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 51
Independent Auditor's Report

# **Our application of materiality**

We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of reasonable users that are taken on the basis of the financial statements.

In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows:

|  Company financial statements | 2022 £m | 2021 £m  |
| --- | --- | --- |
|  Materiality | 0.919 | 1.310  |
|  Basis for determining materiality | 2% of Total investments | 2% of Total investments  |
|  Rationale for the benchmark applied | In setting materiality, we have had regard to the nature and disposition of the investment portfolio. Given that the VCT's portfolio is comprised of unquoted investments which would typically have a wider spread of reasonable alternative possible valuations, we have applied a percentage of 2% of total investments, as asset values are the primary focus of the users of these financial statements  |   |
|  Performance materiality | 0.686 | 0.980  |
|  Basis for determining performance materiality | 75% of materiality  |   |

|  Company financial statements | 2022 £m | 2021 £m  |
| --- | --- | --- |
|  Rationale for the percentage applied for performance materiality | The level of performance materiality applied was set after having considered a number of factors including the expected total value of known and likely misstatements and the level of transactions in the year.  |   |

# **Lower testing threshold**

We determined that for Revenue return before tax, a misstatement of less than materiality for the financial statements as a whole, could influence users of the financial statements as it is a measure of the Company's performance of income generated from its investments after expenses. As a result, we determined a lower testing threshold for those items impacting revenue return of £47,000 based on 5% of income before tax (2021: £96,000 based on 5% of income before tax).

# **Reporting threshold**

We agreed with the Audit Committee that we would report to them all individual audit differences in excess of £46,000 (2021: £65,000). We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds.

# **Other information**

The directors are responsible for the other information. The other information comprises the information included in the annual report and financial statements other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the

work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

# **Corporate governance statement**

The Listing Rules require us to review the Directors' statement in relation to going concern, longer-term stability and that part of the Corporate Governance Statement relating to the Company's compliance with the provisions of the UK Corporate Governance Code specified for our review.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit.

# **Going concern and longer-term viability**

- The Directors' statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified; and
- The Directors' explanation as to their assessment of the Company's prospects, the period this assessment covers and why the period is appropriate.

# **Other Code provisions**

- Directors' statement on fair, balanced and understandable;
- Board's confirmation that it has carried out a robust assessment of the emerging and principal risks;
- The section of the annual report that describes the review of effectiveness of risk management and internal control systems; and
- The section describing the work of the Audit Committee.

# **Other Companies Act 2006 reporting**

Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.

# **Strategic report and Directors' report**

- In our opinion, based on the work undertaken in the course of the audit;
- the information given in the Strategic report and the Directors' report for the financial year for which the financial

52

Malaya Income & Growth & VCT plc Annual Report & Financial Statements 2022
statements are prepared is consistent Auditor’s responsibilities for the ●● Enquiries of management and those
with the financial statements; and audit of the financial statements charged with governance relating to
the existence of any non-compliance
●● the Strategic report and the Directors’ Our objectives are to obtain reasonable
with laws and regulations;
report have been prepared in assurance about whether the financial
statements as a whole are free from ●● Obtaining the VCT compliance
accordance with applicable legal
material misstatement, whether due to reports prepared by management’s
requirements.
fraud or error, and to issue an auditor’s expert during the year and as at year
In the light of the knowledge and end and reviewing their calculations
report that includes our opinion.
understanding of the Company and its for the year end report to check that
Reasonable assurance is a high level of
environment obtained in the course of the Company was meeting its
assurance, but is not a guarantee that an
the audit, we have not identified material requirements to retain VCT status;
audit conducted in accordance with ISAs
misstatements in the strategic report or and
(UK) will always detect a material
the Directors’ report.

|  | misstatement when it exists. | ●● Reviewing minutes of meeting of |
| --- | --- | --- |
|  | Misstatements can arise from fraud or | those charged with governance |
| Directors’ remuneration | error and are considered material if, | throughout the period for instances |
| In our opinion, the part of the Directors’ | individually or in the aggregate, they | of non-compliance with laws and |
| remuneration report to be audited has | could reasonably be expected to | regulations. |
| been properly prepared in accordance | influence the economic decisions of |  |
| with the Companies Act 2006. | users taken on the basis of these | Fraud |

financial statements.
We assessed the susceptibility of the
Matters on which we are required financial statement to material
Extent to which the audit was capable of
to report by exception misstatement including fraud.
detecting irregularities, including fraud
We have nothing to report in respect of Our risk assessment procedures
Irregularities, including fraud, are
the following matters in relation to which included:
instances of non-compliance with laws
the Companies Act 2006 requires us to
and regulations. We design procedures
●● Enquiry with management and those
report to you if, in our opinion:
in line with our responsibilities, outlined
charged with governance regarding
●● adequate accounting records have above, to detect material misstatements
any known or suspected instances
not been kept, or returns adequate in respect of irregularities, including
of fraud;
for our audit have not been received fraud. The extent to which our
●● Obtaining an understanding of the
from branches not visited by us; or procedures are capable of detecting
Company’s policies and procedures
irregularities, including fraud is detailed
●● the financial statements and the part relating to:
below:
of the Directors’ remuneration report Auditor’s Report
●● Detecting and responding to the
Independent
to be audited are not in agreement risks of fraud; and
Non-compliance with laws and
with the accounting records and
regulations ●● Internal controls established to
returns; or
mitigate risks related to fraud.
Based on:
●● certain disclosures of Directors’ ●● Review of minutes of Board and
remuneration specified by law are ●● Our understanding of the Company
other Committee meetings
not made; or and the industry in which it operates;
throughout the period for any known
●● Discussion with management and or suspected instances of fraud;
●● we have not received all the
those charged with governance; and
information and explanations we ●● Discussion amongst the
require for our audit. ●● Obtaining an understanding of the engagement team as to how and
Company’s policies and procedures where fraud might occur in the
regarding compliance with laws and financial statements; and
Responsibilities of Directors
regulations,
●● Obtaining an understanding of the
As explained more fully in the Statement
control environment in monitoring
of Directors’ Responsibilities, the we considered the significant laws and
compliance with laws and
Directors are responsible for the regulations to be the Companies Act
regulations.
preparation of the financial statements 2006, the FCA listing and DTR rules, the
and for being satisfied that they give a principles of the UK Corporate
Based on our risk assessment, we
true and fair view, and for such internal Governance Code, industry practice
considered the areas most susceptible to
control as the Directors determine is represented by the Statement of
fraud to be the valuation of unquoted
necessary to enable the preparation of Recommended Practice: Financial
investments and management override
financial statements that are free from Statements of Investment Trust
of controls.

| material misstatement, whether due to | Companies and Venture Capital Trusts |  |
| --- | --- | --- |
| fraud or error. | (“the SORP”) and updated in 2022 with | Our procedures in respect of the above |
|  | consequential amendments and the | included: |

In preparing the financial statements, the
applicable financial reporting framework.
Directors are responsible for assessing ●● The procedures set out in the Key
We also considered the Company’s
the Company’s ability to continue as a Audit Matters section above;
qualification as a VCT under UK tax
going concern, disclosing, as applicable, ●● Obtaining independent evidence to
legislation.
matters related to going concern and support the ownership of a sample
using the going concern basis of Our procedures in respect of the above of investments;
accounting unless the Directors either included:
●● Recalculating investment
intend to liquidate the Company or to
●● Agreement of the financial statement management fees and incentive fees
cease operations, or have no realistic
disclosures to underlying supporting in total;
alternative but to do so.
documentation;
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 53
●● Obtaining independent confirmation Use of our report
of bank balances; and
This report is made solely to the

| ●● Testing of journals, based on risk |  | Company’s members, as a body, in |
| --- | --- | --- |
|  | assessment criteria as well as an | accordance with Chapter 3 of Part 16 of |
|  | unpredictable sample, to supporting | the Companies Act 2006. Our audit |
|  | documentation and evaluating | work has been undertaken so that we |
|  | whether there was evidence of bias | might state to the Company’s members |
|  | by the Investment Adviser and | those matters we are required to state to |
|  | Directors that represented a risk of | them in an auditor’s report and for no |
|  | material misstatement due to fraud. | other purpose. To the fullest extent |

permitted by law, we do not accept or
We also communicated relevant
assume responsibility to anyone other
identified laws and regulations and
than the Company and the Company’s
potential fraud risks to all engagement
members as a body, for our audit work,
team members who were all deemed to
for this report, or for the opinions we
have appropriate competence and
have formed.
capabilities and remained alert to any
indications of fraud or non-compliance
with laws and regulations throughout the
audit.
Our audit procedures were designed to

| respond to risks of material misstatement | Vanessa Jayne Bradley |
| --- | --- |
| in the financial statements, recognising | (Senior Statutory Auditor) |
| that the risk of not detecting a material | For and on behalf of BDO LLP, |
| misstatement due to fraud is higher than | Statutory Auditor |
| the risk of not detecting one resulting | London, United Kingdom |
| from error, as fraud may involve | 5 April 2023 |

deliberate concealment by, for example,
BDO LLP is a limited liability partnership
forgery, misrepresentations or through
registered in England and Wales (with
collusion. There are inherent limitations
registered number OC305127).
in the audit procedures performed and
the further removed non-compliance
with laws and regulations is from the
events and transactions reflected in the
financial statements, the less likely we
are to become aware of it.
A further description of our
responsibilities is available on the
Financial Reporting Council’s website at:
Independent www.frc.org.uk/auditorsresponsibilities.
Auditor’s Report This description forms part of our
auditor’s report.
54 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
## Financial Statements
## Income Statement for the year ended 31 December 2022
Year ended 31 December 2022 Year ended 31 December 2021
Notes Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £

| Net investment portfolio (losses)/gains 8 |  | - (14,708,270) (14,708,270) - | 29,904,336 | 29,904,336 |
| --- | --- | --- | --- | --- |
| Income 3 | 2,016,974 - 2,016,974 1,354,209 - 1,354,209 |  |  |  |
| Investment Adviser’s fees 4a | (470,253) (1,410,756) (1,881,009) (428,601) (1,285,804) (1,714,405) |  |  |  |
| Other expenses 4d | (602,167) - (602,167) (460,888) - (460,888) |  |  |  |

(Loss)/profit on ordinary activities before
taxation 944,554 (16,119,026) (15,174,472) 464,720 28,618,532 29,083,252
Taxation on (loss)/profit on ordinary activities 5 (3,528) 3,528 - (22,097) 22,097 -
(Loss)/profit for the year and total
comprehensive income 941,026 (16,115,498) (15,174,472) 442,623 28,640,629 29,083,252
Basic and diluted earnings per ordinary
share 6 1.03p (17.61)p (16.58)p 0.53p 34.16p 34.69p
The revenue column of the Income Statement includes all income and expenses. The capital column accounts for the net
investment portfolio (losses)/gains (unrealised losses and realised gains on investments) and the proportion of the Investment
Adviser’s fee and performance 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 2014 Statement of
Recommended Practice (“SORP”) (updated in July 2022) 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.
The Notes on pages 60 to 76 form part of these Financial Statements.
Financial Statements
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 55
# **Balance Sheet as at 31 December 2022**

Company No. 03707697

|   | Notes | 31 December 2022 t | 31 December 2021 t  |
| --- | --- | --- | --- |
|  **Fixed assets** |  |  |   |
|  Investments at fair value | 8 | 45,951,680 | 65,584,467  |
|  **Current assets** |  |  |   |
|  Debtors and prepayments | 10 | 175,536 | 2,895,532  |
|  Current investments | 11 | 36,143,097 | 20,475,179  |
|  Cash at bank | 11 | 1,573,079 | 4,059,487  |
|   |  | 37,891,712 | 27,430,198  |
|  **Creditors: amounts falling due within one year** | 12 | (303,550) | (227,411)  |
|  **Net current assets** |  | 37,588,162 | 27,202,787  |
|  **Net assets** |  | **83,539,842** | **92,787,254**  |
|  **Capital and reserves** |  |  |   |
|  Called up share capital | 13 | 1,043,565 | 833,897  |
|  Share premium reserve |  | 32,933,951 | 13,129,427  |
|  Capital redemption reserve |  | 51,572 | 33,606  |
|  Revaluation reserve |  | 13,645,665 | 32,819,832  |
|  Special distributable reserve |  | 6,114,513 | 20,109,912  |
|  Realised capital reserve |  | 28,102,955 | 24,028,652  |
|  Revenue reserve |  | 1,647,621 | 1,831,928  |
|  **Equity shareholders' funds** |  | **83,539,842** | **92,787,254**  |
|  **Basic and diluted net asset value per ordinary share** | 14 | **80.05p** | **111.27p**  |

The Notes on pages 60 to 76 form part of these Financial Statements.

The Financial Statements were approved and authorised for issue by the Board of Directors on 5 April 2023 and were signed on its behalf by:

Jonathan Cartwright
Chair

56

Nideau Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
## Statement of Changes in Equity for the year ended 31 December 2022

|   | Non-distributable reserves |   |   |   |   | Distributable reserves |   |   | Total £  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|   |  Notes | Ceiled up share capital £ | Share premium reserve £ | Capital redemption reserve £ | Revaluation reserve £ | Special distributable reserve (Note a) £ | Revised capital reserve (Note b) £ | Revenue reserve (Note b) £  |   |
|  **At 1 January 2022** |  | **833,897** | **13,129,427** | **33,606** | **32,819,832** | **20,109,912** | **24,028,652** | **1,831,928** | **92,787,254**  |
|  **Comprehensive income for the year** |  | - | - | - | (15,445,038) | - | (670,460) | 941,026 | (15,174,472)  |
|  Loss for the year |  | - | - | - | (15,445,038) | - | (670,460) | 941,026 | (15,174,472)  |
|  **Total comprehensive income for the year** |  | **-** | **-** | **-** | **(15,445,038)** | **-** | **(670,460)** | **941,026** | **(15,174,472)**  |
|  **Contributions by and distributions to owners** |  |  |  |  |  |  |  |  |   |
|  Shares issued via Offer for Subscription (Note c) | 13 | 205,388 | 18,296,398 | - | - | - | - | - | 18,501,786  |
|  Issue costs and facilitation fees on Offer for Subscription | 13 | - | (464,058) | - | - | (157,906) | - | - | (621,964)  |
|  Dividends re-invested into new shares | 13 | 22,246 | 1,972,184 | - | - | - | - | - | 1,994,430  |
|  Shares bought back (Note d) | 13 | (17,966) | - | 17,966 | - | (1,460,054) | - | - | (1,460,054)  |
|  Dividends paid | 7 | - | - | - | - | (9,072,366) | (2,289,439) | (1,125,333) | (12,487,038)  |
|  **Total contributions by and distributions to owners** |  | **209,668** | **19,804,524** | **17,966** | **-** | **(10,690,326)** | **(2,289,439)** | **(1,125,333)** | **5,927,060**  |
|  **Other movements** |  |  |  |  |  |  |  |  |   |
|  Realised losses transferred to special reserve (Note e) |  | - | - | - | - | (3,305,073) | 3,305,073 | - | -  |
|  Realisation of previously unrealised appreciation |  | - | - | - | (3,729,129) | - | 3,729,129 | - | -  |
|  **Total other movements** |  | **-** | **-** | **-** | **(3,729,129)** | **(3,305,073)** | **7,014,959** | **-** | **-**  |
|  **At 31 December 2022** |  | **1,043,565** | **32,933,951** | **51,572** | **13,645,665** | **6,114,513** | **28,102,955** | **1,647,621** | **83,539,842**  |

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. The transfer of £3,305,073 to the special reserve from the realised capital reserve above is the total of realised losses incurred by the Company in the year. As at 31 December 2022, the Company has a special reserve of £6,114,513, all of which arises from shares issued more than three years ago. Reserves originating from share issues are not distributable under VCT rules if they arise from share issues that are within three years of the end of an accounting period in which shares were issued.

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

Note c: Under the Company's Offer for Subscription launched on 20 January 2022, 7,361,191 ordinary shares were allotted on 9 March 2022 raising net funds of £7,271,180 for the Company. Under the Company's Offer for Subscription launched on 5 October 2022, 13,177,484 ordinary shares were allotted on 16 November 2022 raising net funds of £10,608,642 for the Company. These figures are net of issue costs of £464,058 and facilitation fees of £157,906.

Note d: During the year, the Company purchased 1,796,536 of its own shares at the prevailing market price for a total cost of £1,460,054, which were subsequently cancelled.

Financial Statements

Annual Report & Financial Statements 2022: Muteua Income & Growth 4 VCT plc

17
## Statement of Changes in Equity for the year ended 31 December 2021

|   | Non-distributable reserves |   |   |   | Distributable reserves |   |   | Total  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|   |  Collect up share capital £ | Share premium reserve £ | Capital redemption reserve £ | Revaluation reserve £ | Special distributable reserve £ | Realised capital reserve £ | Importer reserve £  |   |
|  **At 1 January 2021** | **840,040** | **12,495,262** | **20,512** | **10,205,933** | **26,563,547** | **16,738,215** | **1,597,686** | **68,461,195**  |
|  Comprehensive income for the year |  |  |  |  |  |  |  |   |
|  Profit for the year | - | - | - | 25,711,355 | - | 2,929,274 | 442,623 | 29,083,252  |
|  **Total comprehensive income for the year** | **-** | **-** | **-** | **25,711,355** | **-** | **2,929,274** | **442,623** | **29,083,252**  |
|  **Contributions by and distributions to owners** |  |  |  |  |  |  |  |   |
|  Dividends re-invested into new shares | 6,951 | 634,165 | - | - | - | - | - | 641,116  |
|  Shares bought back | (13,094) | - | 13,094 | - | (1,230,702) | - | - | (1,230,702)  |
|  Dividends paid | - | - | - | - | (3,959,226) | - | (208,381) | (4,167,607)  |
|  **Total contributions by and distributions to owners** | **(6,143)** | **634,165** | **13,094** | **-** | **(5,189,928)** | **-** | **(208,381)** | **(4,757,193)**  |
|  **Other movements** |  |  |  |  |  |  |  |   |
|  Realised losses transferred to special reserve | - | - | - | - | (1,263,707) | 1,263,707 | - | -  |
|  Realisation of previously unrealised appreciation | - | - | - | (3,097,456) | - | 3,097,456 | - | -  |
|  **Total other movements** | **-** | **-** | **-** | **(3,097,456)** | **(1,263,707)** | **4,361,163** | **-** | **-**  |
|  **At 31 December 2021** | **833,897** | **13,129,427** | **33,606** | **32,819,832** | **20,109,912** | **24,028,652** | **1,831,928** | **92,787,254**  |

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** - This reserve is created from cancellations of the balances upon the Share premium reserve, which are transferred to this reserve from time to time. 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), 75% of the Investment Adviser fee expense and 100% of the Investment Adviser performance fee expense, and the related tax effect, are transferred from the realised capital reserve to this reserve. This reserve will also be charged any IFA facilitation payments to advisers, which arose as part of the Offer for Subscription.

**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, as well as 25% of the Investment Adviser fee together with the related tax effect, as well as income dividends paid that are classified as revenue in nature.

The Notes on pages 60 to 76 form part of these Financial Statements.

58

Adewa Income & Growth 4 VICT plc Annual Report & Financial Statements 2022
## Statement of Cash Flows for the year ended 31 December 2022

|   | Notes | Year ended 31 December 2022 £ | Year ended 31 December 2021 £  |
| --- | --- | --- | --- |
|  **Cash flows from operating activities** |  |  |   |
|  (Losses)/profit for the financial year |  | (15,174,472) | 29,083,252  |
|  **Adjustments for:** |  |  |   |
|  Net investment portfolio losses/(gains) |  | 14,708,270 | (29,904,336)  |
|  Decrease in debtors |  | 140,220 | 87,812  |
|  Increase in creditors |  | 76,139 | 23,302  |
|  **Net cash outflow from operations** |  | **(249,843)** | **(709,970)**  |
|  Corporation tax paid |  | - | (103,452)  |
|  **Net cash outflow from operating activities** |  | **(249,843)** | **(813,422)**  |
|  **Cash flows from investing activities** |  |  |   |
|  Sale of investments | 8 | 8,701,638 | 12,231,857  |
|  Purchase of investments | 8 | (3,777,121) | (6,235,292)  |
|  **Net cash inflow from investing activities** |  | **4,924,517** | **5,996,565**  |
|  **Cash flows from financing activities** |  |  |   |
|  Share issued as part of Offer for Subscription | 13 | 18,501,786 | -  |
|  Issue costs and facilitation fees as part of Offer for subscription | 13 | (621,964) | -  |
|  Equity dividends paid | 7 | (7,912,932) | (6,106,267)  |
|  Purchase of own shares |  | (1,460,054) | (1,230,702)  |
|  **Net cash inflow/(outflow) from financing activities** |  | **8,506,836** | **(7,336,969)**  |
|  **Net increase/(decrease) in cash and cash equivalents** |  | **13,181,510** | **(2,153,826)**  |
|  Cash and cash equivalents at start of year |  | 22,534,666 | 24,688,492  |
|  **Cash and cash equivalents at end of year** |  | **35,716,176** | **22,534,666**  |
|  **Cash and cash equivalents comprise:** |  |  |   |
|  Cash at bank and in hand | 11 | 1,573,079 | 4,059,487  |
|  Cash equivalents | 11 | 34,143,097 | 18,475,179  |

The Notes on pages 60 to 76 form part of these Financial Statements.

Financial Statements

Annual Report & Financial Statements 2022 Mchana Income & Growth 4 VCT plc

59
## Notes to the Financial Statements for the year ended 31 December 2022

### 1 Company Information

Motecus Income and Growth 4 VCT plc is a public limited company incorporated in England, registration number 3707697. The registered office is 5 New Street Square, London, EC4A 3TW.

### 2 Basis of preparation

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 July 2022) issued by the Association of Investment Companies. The Financial Statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments which are disclosed under FRS102 sft/12 as shown in Note 15.

After performing the necessary enquiries, the Directors have undertaken an assessment of the Company's ability to meet its liabilities as they fall due. The Company has significant cash and liquid resources and no external debt or capital commitments. The Company's cash flow forecasts, which consider levels of anticipated new and follow-on investment, the net funds raised as part of the Company's Offer for Subscriptions, as well as investment income and annual running cost projections, are discussed at each quarterly Board meeting. Following this assessment, the Directors have a reasonable expectation that the Company will have adequate resources to continue to meet its liabilities for at least 12 months from the date of these Financial Statements. The Directors therefore consider the preparation of these Financial Statements on a going concern basis to be appropriate.

### 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 2022 has been classified as capital and has been included within gains on investments.

|   | 2022 £ | 2021 £  |
| --- | --- | --- |
|  **Income from bank deposits** | 55,899 | 18,559  |
|  **Income from investments** |  |   |
|  – from equities | 925,987 | 348,420  |
|  – from overseas based OEICs | 326,187 | 2,258  |
|  – from loan stock | 708,901 | 984,972  |
|   | 1,969,075 | 1,335,650  |
|  Other income | - | -  |
|  **Total income** | **2,016,974** | **1,354,209**  |
|  **Total income comprises** |  |   |
|  Dividends | 1,252,174 | 350,678  |
|  Interest | 764,800 | 1,003,531  |
|   | **2,016,974** | **1,354,209**  |

Total loan stock interest due but not recognised in the year was £399,827 (2021: £458,279) due to the uncertainty over its recoverability.

60

Motecus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
#### 4 Investment Adviser's fees and other expenses

All expenses are accounted for on an accruals basis

##### a) Investment Adviser's 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 2022 £ | Capital 2022 £ | Total 2022 £ | Revenue 2021 £ | Capital 2021 £ | Total 2021 £  |
| --- | --- | --- | --- | --- | --- | --- |
|  **Gresham House Asset Management Limited** | 470,253 | 1,410,756 | 1,881,009 | 428,601 | 1,285,804 | 1,714,405  |

Under the terms of a revised investment management agreement dated 12 November 2010 (such agreement having been novated to Gresham House), Gresham House Asset Management Limited ("Gresham House") 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, it was agreed to waive such further increases due to indexation, until otherwise agreed with the Board.

The Investment Adviser 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.

In line with common practice, Gresham House 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 £307,585 (2021: £349,777) during the year ended 31 December 2022, being £78,870 (2021: £132,666) for advisory and arrangement fees, and £226,795 (2021: £217,115) for acting as non-executive directors on a number of investee company boards. These fees attributable to the Company are based upon the investment allocation to the Company 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

|   | 2022 £m | 2021 £m  |
| --- | --- | --- |
|  Funds raised by the Company | 18.50 | -  |
|  **Offer costs payable to Mobeus at 3.00% of funds raised by the Company** | **0.55** | **-**  |

Under the terms of an Offer for Subscription, with the other Mobeus advised VCTs, launched on 20 January 2022 and 5 October 2022, Gresham House was entitled to fees of 3.00% of the investment amount received from investors. This amount totalled £3.33 million across all four VCTs, out of which all the costs associated with the allotments were met.

Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc

61

Financial Statements
## Notes to the Financial Statements for the year ended 31 December 2022

### 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.

|   | 2022 £ | 2021 £  |
| --- | --- | --- |
|  Directors' remuneration (including NIC of £6,289 (2021: £9,750) (Note i)) | 112,789 | 144,750  |
|  P/A trail commission | 86,564 | 88,938  |
|  Broker's fees | 12,000 | 12,000  |
|  Auditor's fees – Audit of Company (excluding VAT) | 45,150 | 33,191  |
|  – audit related assurance services (excluding VAT) – (Note ii) | 8,400 | 6,212  |
|  Registrar's fees | 77,467 | 42,343  |
|  Printing | 58,973 | 46,227  |
|  Legal & professional fees | 22,876 | 14,274  |
|  VCT monitoring fees | 12,600 | 9,600  |
|  Directors' insurance | 11,430 | 8,975  |
|  Listing and regulatory fees | 82,857 | 44,787  |
|  Sundry | 39,152 | 9,591  |
|  **Running Costs** | **570,258** | **460,888**  |
|  Provision against loan interest receivable (see note iii) | 31,909 | -  |
|  **Other expenses** | **602,167** | **460,888**  |

Note i) Directors' remuneration is a related party transaction, see analysis in Directors' Remuneration table on page 43, which excludes the NIC above. The key management personnel are the four non-executive directors. The Company has no employees.

Note ii) The audit-related assurance services are in relation to a limited scope engagement in respect of the Financial Statements within the Company's Interim Report. The Audit & Risk Committee reviews the nature and extent of these services to ensure that auditor independence is maintained.

Note iii) Provision against loan interest receivable above relates to an amount of £31,909 (2021: nil), being a provision made against loan stock regarded as collectable in previous years.

### 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.

62

Midwest Income & Growth 4 VCT plc Annual Report & Financial Statements 2022

Financial Statements

|  | 2022 |  | 2022 |  | 2022 |  |  | 2021 |  | 2021 |  | 2021 |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue |  |  | Capital |  | Total |  | Revenue |  |  | Capital |  | Total |  |
|  |  | £ |  | £ |  | £ |  |  | £ |  | £ |  | £ |

a) Analysis of tax charge:
UK Corporation tax on (loss)/profit for the
year 3,528 (3,528) - 22,097 (22,097) -
Total current tax charge 3,528 (3,528) - 22,097 (22,097) -
Corporation tax is based on a rate of 19%
(2021: 19%)
b) (Loss)/profit on ordinary activities
before tax 944,554 (16,119,026) (15,174,472) 464,720 28,618,532 29,083,252
(Loss)/profit on ordinary activities multiplied
by company rate of corporation tax in the
UK of 19% (2021: 19%) 179,465 (3,062,615) (2,883,150) 88,297 5,437,521 5,525,818
Effect of:
UK dividends not taxable (175,937) - (175,937) (66,200) - (66,200)
Net investment portfolio losses/(gains) not
allowable/(taxable) - 2,794,571 2,794,571 - (5,681,824) (5,681,824)
Losses not utilised - 264,516 264,516 - 222,206 222,206
Actual tax charge 3,528 (3,528) - 22,097 (22,097) -
Tax relief relating to investment adviser fees is allocated between revenue and capital where such relief can be utilised.
No asset or 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 (2021: £nil). There is an unrecognised deferred tax asset of £640,423 (2021: £nil).
6 Basic and diluted earnings per share

|  | 2022 |  | 2021 |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  | £ |  | £ |  |
| Total earnings after taxation: (15,174,472) 29,083,252 |  |  |  |  | Financial Statements |

Basic and diluted earnings per share (Note a) (16.58)p 34.69p
Net revenue from ordinary activities after taxation 941,026 442,623
Basic and diluted revenue return per share (Note b) 1.03p 0.53p
Net investment portfolio (losses)/gains (14,708,270) 29,904,336
Capital expenses (net of taxation) (1,407,228) (1,263,707)
Total capital return (16,115,498) 28,640,629
Basic and diluted capital return per share (Note c) (17.61)p 34.16p
Weighted average number of shares in issue in the year 91,535,106 83,840,235
Notes:
a) Basic earnings per share is total earnings after taxation divided by the weighted average number of shares in issue.
b) Basic revenue earnings per share is the revenue return after taxation divided by the weighted average number of shares in issue.
c) Basic capital earnings per share is the total capital return after taxation divided by the weighted average number of shares in
issue.
d) 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 returns.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 63
## Notes to the Financial Statements for the year ended 31 December 2022

### 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 income 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 | 2022 £ | 2021 £  |
| --- | --- | --- | --- | --- | --- | --- |
|  Interim | Income | 2021 | 0.25p | 06/08/2021 | - | 208,381  |
|  Interim | Capital* | 2021 | 4.75p | 06/08/2021 | - | 3,959,226  |
|  Interim | Income | 2021 | 0.25p | 07/01/2022 | 209,558 | -  |
|  Interim | Capital* | 2021 | 3.75p | 07/01/2022 | 3,143,366 | -  |
|  Interim | Capital* | 2022 | 4.00p | 08/07/2022 | 3,639,561 | -  |
|  Interim | Income | 2022 | 1.00p | 07/11/2022 | 915,775 | -  |
|  Interim | Capital* | 2022 | 2.50p | 07/11/2022 | 2,289,439 | -  |
|  Interim | Capital | 2022 | 2.50p | 07/11/2022 | 2,289,439 | -  |
|   |   |   |   |   | **12,487,138** | **4,167,607**  |

\* - Paid out of the Company's special distributable reserve.

\*\* - For the year ended 31 December 2022, £12,487,138 disclosed above differs to that shown in the Statement of Cash Flows of £7,912,952 due to a dividend payment of £2,579,776 made to the Registrar before the previous year-end in respect of the dividend paid to Shareholders on 7 January 2022. In addition, £1,994,430 of new shares was issued as part of the Company's Dividend Investment Scheme.

#### Distributions to equity holders after the year-end:

|  Type | Type | For year ended 31 December | Pence per share | Date paid/payable | 2022 £ | 2021 £  |
| --- | --- | --- | --- | --- | --- | --- |
|  Interim | Income | 2021 | 0.25p | 07/01/2022 | - | 209,560  |
|  Interim | Capital | 2021 | 3.75p | 07/01/2022 | - | 3,143,394  |
|   |   |   |   |   | **-** | **3,352,954**  |

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 payable | 2022 £ | 2021 £  |
| --- | --- | --- | --- | --- | --- | --- |
|  **Revenue available for distribution by way of dividends for the year** |   |   |   |   | **941,026** | **442,623**  |
|  Interim | Income | 2021 | 0.25p | 06/08/2021 | - | 208,381  |
|  Interim | Income | 2021 | 0.25p | 07/01/2022 | - | 209,558  |
|  Interim | Income | 2022 | 1.00p | 07/11/2022 | 915,775 | -  |
|  **Total income dividends for the year** |   |   |   |   | **915,775** | **417,939**  |

64

Nidewa Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
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
2022. 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 a 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 time 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, i.e. that the value of each portfolio company is
considered as a whole, alongside consideration of:-
The price of new or follow-on 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 within
individual valuation models and at subsequent measurement dates, are reconsidered 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, depreciation 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 cost 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
Financial Statements
discounted cash flow, net asset valuation, realisation proceeds or a weighted average of these bases 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 cost, 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.
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 65
## Notes to the Financial Statements for the year ended 31 December 2022
Movements in investments during the year are summarised as follows:
Traded on Unquoted Unquoted Unquoted Total
AIM equity shares preference Loan stock
shares
Level 1 Level 3 Level 3 Level 3
£ £ £ £ £
Cost at 31 December 2021 676,918 21,412,982 1,471,414 10,499,884 34,061,198
Unrealised gains/(losses) at 31 December 2021 9,226,837 25,791,648 137,151 (2,335,804) 32,819,832
Permanent impairment in value of investments as at
31 December 2021 - (1,231,948) (227) (64,388) (1,296,563)
Valuation at 31 December 2021 9,903,755 45,972,682 1,608,338 8,099,692 65,584,467
Purchases at cost - 3,339,621 - 437,500 3,777,121
Sale proceeds (Note a) - (3,242,632) (4,273,470) (1,185,536) (8,701,638)
Reclassification at value (Note b) (417,536) 527,636 (110,100) -
Net realised gains in the year - (3,535,633) 4,272,401 - 736,768
Net unrealised (losses)/gains in the year (Note c) (6,894,862) (7,447,479) 112,934 (1,215,631) (15,445,038)
Valuation at 31 December 2022 2,591,357 35,614,195 1,720,203 6,025,925 45,951,680
Cost at 31 December 2022 45,915 23,918,873 1,470,345 9,655,463 35,090,596
Unrealised gains/(losses) at 31 December 2022 2,545,442 13,704,584 251,255 (2,855,616) 13,645,665
Permanent impairment in value of investments at
31 December 2022 (Note d) - (2,009,262) (1,397) (773,922) (2,784,581)
Valuation at 31 December 2022 2,591,357 35,614,195 1,720,203 6,025,925 45,951,680
Details of investment transactions such as disposal proceeds, valuation movements, cost and carrying value at the end of
previous year are contained in the Investment Portfolio Summary on pages 22 to 27.
Net realised gains in the year of £736,768 and unrealised losses in the year of £15,445,038 equal net investment portfolio gains
of £14,708,270 as shown on the Income Statement.
Note a) Disposals of investment portfolio companies during the year were:

| Company Type Investment |  |  |  |  | Disposal |  | Valuation at |  |  | Realised |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | cost |  | proceeds |  | 31 December |  |  | gain/(loss) |  |
|  |  |  |  |  |  |  |  | 2021 |  | in year |  |
|  |  |  |  | £ |  | £ |  |  | £ |  | £ |
| Media Business Insight Holdings Limited | Realisation | 2,225,042 3,975,468 3,560,047 415,421 |  |  |  |  |  |  |  |  |  |

Additional
Other Capital proceeds* proceeds - 403,103 - 403,103
EOTH Limited Part realisation 1,069 4,273,470 3,916,028 357,442
Muller EV Limited (trading as Andersen EV) (in Permanent
Financial Statements
1
members’ voluntary liquidation) impairment - - 439,198 (439,198)
Oakhealth Limiited Liquidation 485,730 - - -
Jablite Holdings Limited (in members’ voluntary
liquidation) Loan repayment 35,882 49,597 49,597 -
2,747,723 8,701,638 7,964,870 736,768
1
- Includes new investment of £243,998 in the year
* Other capital proceeds contains additional proceeds received from Vian Marketing Limited (trading as Red Paddle) of £400,763
and Vectair Holdings Limited of £3,609. Transaction costs of £1,269 have also been incurred.
Note b) The Company’s equity investments in Parsley Box were delisted from AIM during the year. The amount transferred from
Level 3 to Level 1 of £417,536 reflects the equity value held at the start of the year. The amount of £110,100 transferred from
unquoted loan stock to unquoted equity shares represents the conversion of a loan held into equity shares during the year.
66 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
Note c) The major components of the net decrease in unrealised valuations of £15,445,038 in the year were decreases of £6,894,862 in Virgin Wines UK plc, £1,728,731 in My Tutorweb Limited, £1,302,816 in End Ordinary Group Limited (trading as Buoke and Punch), £1,152,310 in Manufacturing Services Investment Limited (trading as Wetsuit Outlet), and £1,014,091 in Data Discovery Solutions Limited (trading as Active Navigation). These were partly offset by increases of £440,126 in Thandern Group Limited, £302,983 in Bella & Duke Limited, and £215,645 in Orri Limited.

Note d) During the year, permanent impairments of the cost of investments have increased from £1,296,563 to £2,784,581 due to the permanent impairments of three investee companies partially offset by the disposal of one investee company which was liquidated during the year.

## 9 Significant interests

At 31 December 2022 the Company held significant investments, amounting to 3% or more of the equity capital of an undertaking, in the following companies:

|   | Equity investment (Ordinary shares) £ | Investment in main stock and preference shares £ | Total investment (at cost) £ | Percentage of investee company's total equity | % of equity held by all funds advised and managed by Gresham House  |
| --- | --- | --- | --- | --- | --- |
|  Vertek Global Holdings Limited | 43,527 | 1,576,559 | 1,620,086 | 15.4% | 65.6%  |
|  Preseraca Limited | 1,359,079 | 2,038,566 | 3,397,745 | 13.1% | 57.8%  |
|  Thandern Group Limited | 338,861 | 753,025 | 1,091,886 | 12.7% | 55.0%  |
|  Jablite Holdings Limited (in members' voluntary liquidation) | 339,974 | 227 | 340,201 | 9.1% | 40.1%  |
|  RDL Corporation Limited | 173,932 | 826,568 | 1,000,000 | 8.9% | 44.5%  |
|  Muller EV Limited (trading as Andersen EV) (in members' voluntary liquidation) | 585,598 | - | 585,598 | 8.8% | 37.0%  |
|  Virgin Wines UK Plc | 45,915 | - | 45,915 | 8.3% | 36.1%  |
|  Racoon International Holdings Limited | 419,959 | 64,388 | 484,347 | 8.0% | 41.5%  |
|  End Ordinary Group Limited (trading as Buster and Punch) | 1,496,785 | - | 1,496,785 | 7.8% | 34.6%  |
|  Data Discovery Solutions Limited (trading as Active Navigation) | 1,408,640 | - | 1,408,640 | 7.1% | 35.1%  |
|  Arke Consulting Limited | 671,090 | 928,355 | 1,599,445 | 6.7% | 30.1%  |
|  Spanish Restaurant Group Limited (trading as Tapas Revolution) | 406,396 | 812,700 | 1,219,096 | 6.7% | 29.0%  |
|  Master Removers Group 2019 Limited (trading as Anthony Ward Thomas, Bishopsgate and Aussie Man & Van) | 348,641 | - | 348,641 | 6.6% | 28.1%  |
|  Caledonian Leisure Limited | 328,502 | 219,000 | 547,502 | 6.6% | 30.0%  |
|  Manufacturing Services Investment Limited (trading as Wetsuit Outlet) | 1,166,551 | 1,166,551 | 2,333,102 | 6.4% | 27.5%  |
|  CGI Creative Graphics International Limited | 476,612 | 973,134 | 1,449,746 | 6.3% | 26.9%  |
|  Legalics Limited | 663,011 | - | 663,011 | 6.0% | 27.3%  |
|  Northern Bloc Ice Cream Limited | 425,670 | - | 425,670 | 5.5% | 27.3%  |
|  Vivacity Labs Limited | 1,531,122 | - | 1,531,122 | 5.5% | 20.0%  |
|  IPV Limited | 619,487 | - | 619,487 | 5.5% | 26.6%  |
|  My Tutorweb Limited (trading as MyTutor) | 2,464,757 | - | 2,464,757 | 5.3% | 22.6%  |
|  Pets' Kitchen Limited (trading as Vet's Kline) | 360,640 | 270,480 | 631,120 | 4.5% | 20.0%  |
|  Bella & Duke Limited | 877,381 | - | 877,381 | 4.4% | 21.2%  |
|  Rota Geek Limited | 874,000 | 218,500 | 1,092,500 | 4.1% | 20.3%  |
|  Bleach London Holdings Limited | 960,057 | - | 960,057 | 4.1% | 14.1%  |
|  Orri Limited | 438,200 | - | 438,200 | 3.6% | 28.4%  |
|  BookingTek Limited | 582,300 | - | 582,300 | 3.5% | 14.9%  |
|  MPB Group Limited | 1,095,252 | - | 1,095,252 | 3.2% | 14.4%  |
|  Connect Childcare Limited | 423,007 | 423,000 | 846,007 | 3.0% | 14.4%  |

1 - The percentage of equity held for these companies is the fully diluted figure, in the event that, for example, management of the investee company exercises share options, where available.

Annual Report & Financial Statements 2022: Mubous Income & Growth 4 VCT plc

67

Financial Statements
## Notes to the Financial Statements for the year ended 31 December 2022
It is considered that, under FRS102 s9.9, “Consolidated and Separate Financial Statements”, the above investments are held as
part of an investment portfolio and that accordingly, their value to the Company lies in their marketable value as part of that
portfolio and as such are not required to be consolidated. Also, the above investments are considered to be associates that are
held as part of an investment portfolio and are accounted for in accordance with FRS 14.4B.
All of the above companies are incorporated in the United Kingdom.
10 Debtors
2022 2021
£ £
Amounts due within one year:
Accrued income 155,632 297,687
Prepayments 19,904 17,532
Other debtors - 2,580,313
 175,536 2,895,532
11 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.
2022 2021
£ £
OEIC Money market funds 34,143,097 18,475,179
Cash equivalents per Statement of Cash Flows 34,143,097 18,475,179
Bank deposits that mature after three months 2,000,000 2,000,000
Current asset investments 36,143,097 20,475,179
Cash at bank 1,573,079 4,059,487
12 Creditors: amounts falling due within one year
2022 2021
£ £
Trade creditors 32,138 9,140
Other creditors 4,037 26,752
Accruals 267,375 191,519
 303,550 227,411

| Financial Statements | 13 Called up share capital |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  | 2022 |  | 2021 |  |
|  |  |  | £ |  | £ |

Allotted, called-up and fully paid:
Ordinary shares of 1p each: 104,356,447 (2021: 83,389,721) 1,043,565 833,897
Under the 2021/22 Offer launched on 20 January 2022, 7,361,191 (2021: nil) Ordinary shares were allotted at an average effective
offer price of 101.89 pence per share; raising net funds of £7,271,180 (2021: nil) for the Company.
Under the 2022/23 offer launched on 5 October 2022, 13,177,484 Ordinary shares were allotted at an average effective offer
price of 83.49 pence per share raising net funds of £10,608,642 for the Company.
68 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
During the year, the Company purchased 1,796,536 (2021: 1,309,349) of its own shares for cash (representing 2.2% (2021: 1.6%) of the shares in issue at the start of the year) at the prevailing market price for a total cost of £1,460,054 (2021: £1,230,702). These shares were subsequently cancelled by the Company.

Under the terms of the Dividend Investment Scheme, 2,224,587 (2021: 695,092) Ordinary shares were allotted during the year for a non-cash consideration of £1,994,430 (2021: £641,116).

#### 14 Basic and diluted net asset value per share

Net asset value per Ordinary Share is based on net assets at the end of the year, and on 104,356,447 (2021: 83,389,721) Ordinary shares, being the number of Ordinary shares in issue on that date.

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

#### 15 Financial instruments

The Company's financial instruments predominantly comprise investments held at fair value through profit and loss, namely equity and preference shares and fixed and floating rate interest securities that are held in accordance with the Company's investment objective.

Other financial instruments are held at amortised cost comprising loans and receivables being cash at bank, current asset investments and short term debtors, and financial liabilities being creditors, all that arise directly from the Company's operations.

The principal purpose of these financial instruments is to generate revenue and capital appreciation for the Company's operations, although cash and current asset investments are held to yield revenue return only. The Company has no gearing or other financial liabilities apart from short-term creditors. It is, and has been throughout the year under review, the Company's policy that no trading in derivative financial instruments shall be undertaken.

The accounting policy for determining the fair value of investments is set out in Note 8 to the Financial Statements. The composition of investments held is shown below and in Note 8.

Loans and receivables and other financial liabilities are stated at amortised cost which the Directors consider is equivalent to fair value.

#### Classification of financial instruments

The Company held the following categories of financial instruments at 31 December 2022:

|   | 2022 (Fair value) £ | 2021 (Fair value) £  |
| --- | --- | --- |
|  **Assets at fair value through profit and loss:** |  |   |
|  Investment portfolio | 45,951,680 | 65,584,467  |
|  **Loans and receivables held at amortised cost** |  |   |
|  Accrued income | 155,632 | 297,687  |
|  Cash at bank | 1,573,079 | 4,059,487  |
|  Current asset investments | 36,143,097 | 20,475,179  |
|  Other debtors | - | 2,580,313  |
|  **Liabilities at amortised cost or equivalent** |  |   |
|  Other creditors | (303,550) | (227,411)  |
|  Total for financial instruments | 83,519,938 | 92,769,722  |
|  Non financial instruments | 19,904 | 17,532  |
|  **Total net assets** | **83,539,842** | **92,787,254**  |

There are no differences between book value and fair value disclosed above.

The investment portfolio principally consists of unquoted investments 94.4% (2021: 84.9%) and AIM quoted stocks 5.6% (2021: 15.1%). The investment portfolio has a 100% (2021: 100%) concentration of risk towards small UK based, sterling denominated companies, and represents 55.0% (2021: 70.7%) of net assets at the year-end.

Annual Report & Financial Statements 2022, Mubasa Income & Growth 4 VCT plc

60

Financial Statements
## Notes to the Financial Statements for the year ended 31 December 2022

Current asset investments are money market funds, and bank deposits which, along with cash are discussed under credit risk below, which represent 45.1% (2021: 26.4%) of net assets at the year-end.

The main risks arising from the Company's financial instruments are the investment risk, and the liquidity risk, of the unquoted portfolio. Other important risks are credit risk, fluctuations in market prices (market price risk), and cash flow interest rate risk, although currency risk is also discussed below. The Board regularly reviews and agrees policies for managing each of these risks and they are summarised below. These have been in place throughout the current and preceding years.

### Investment risk

The Company's investment portfolio is made up of predominantly UK companies which are not quoted on any recognised stock exchange, although 5.6% of the portfolio value at the year-end is held in A/M quoted. The companies held in the portfolio are usually smaller than those companies which are quoted on a stock exchange. They are therefore usually regarded as carrying more risk compared to larger companies, as they are more sensitive to changes in key financial indicators, such as a reduction in its turnover or an increase in costs. The Board is of the view that the Investment Adviser mitigates this risk as the investment in an investee company is held as part of a portfolio of such companies so that the performance of one company does not significantly affect the value of the portfolio as a whole. The Investment Adviser also usually takes a seat on the Board of each investee company such that it is able to monitor its progress on a regular basis and contribute to the strategic direction of the company.

### Liquidity risk

The investments in equity and fixed interest stocks of unquoted companies that the Company holds are not traded and therefore they are not readily realisable. The ability of the Company to realise the investments at their carrying value may at times not be possible if there are no willing purchasers and, as the Company owns minority stakes, could require a number of months and the co-operation of other shareholders to achieve at a reasonable valuation. The Company's ability to sell investments may also be constrained by the requirements set down for VCTs. The maturity profile of the Company's loan stock investments disclosed within the consideration of credit risk below indicates that these assets are also not readily realisable until dates up to five years from the year-end.

To counter these risks to the Company's liquidity, the Investment Adviser maintains sufficient cash and money market funds to meet running costs and other commitments. The Company invests its surplus funds in high quality money market funds and bank deposits of £36,143,097 (2021: £20,475,179), which are all accessible at varying points over the next 12 months. The Board also receives regular cash flow projections in order to manage this liquidity risk.

The table below shows a maturity analysis of financial liabilities:

|   | 3 months £ | 3-6 months £ | 6-12 months £ | over 12 months £ | 2022 Total £  |
| --- | --- | --- | --- | --- | --- |
|  Financial liabilities |  |  |  |  |   |
|  Other creditors | 201,951 | 101,599 | - | - | 303,550  |
|  Financial liabilities |  |  |  |  |   |
|  Other creditors | 125,218 | 102,193 | - | - | 227,411  |

The Company does not have any derivative financial liabilities.

### Credit risk

Credit risk is the risk that a counterparty will fail to discharge an obligation or commitment that it has entered into with the Company.

The Company's maximum exposure to credit risk is:

|   | 2022 £ | 2021 £  |
| --- | --- | --- |
|  Loan stock investments | 6,025,925 | 8,099,692  |
|  Current asset investments | 36,143,097 | 20,475,179  |
|  Cash at bank | 1,573,079 | 4,059,487  |
|  Accrued income | 155,632 | 297,687  |
|  Other debtors | - | 2,580,313  |
|   | **43,897,733** | **35,512,358**  |

Moiseus Income & Growth 4 VCT pts Annual Report & Financial Statements 2022

70

Financial Statements
The Company has an exposure to credit risk in respect of the loan stock investments it has made into investee companies, most of which have no security attached to them, and where they do, such security ranks beneath any bank debt that an investee company may owe. The loan stock is typically held in companies with turnover under £50 million, which may be considered less stable than larger, longer established businesses. The Investment Adviser undertakes extensive financial and commercial due diligence before recommending an investment to the Board. The Investment Adviser usually takes a seat on the Board of each investee company and the Board of the Company receives regular updates on each company at each quarter end.

The accrued income shown above of £155,632 was all due within six months of the year end.

The following table shows the maturity of the loan stock investments referred to above. In some cases, the loan maturities are not the contractual ones, but are the best estimate using management's expectations of when it is likely that such loans may be repaid.

|  Repayments within | 2022 £ | 2021 £  |
| --- | --- | --- |
|  0 to 1 year | 1,895,646 | 980,756  |
|  1 to 2 years | 1,282,651 | 1,829,649  |
|  2 to 3 years | 1,708,980 | 1,135,939  |
|  3 to 4 years | 689,789 | 989,348  |
|  4 to 5 years | 448,859 | 847,587  |
|  Over 5 years | - | 316,413  |
|  **Total** | **6,025,925** | **8,099,692**  |

Included within loan stock investments above are loans to five investee companies at a carrying value of £3,598,082 which are past their repayment date but have been renegotiated. Loans to one other company with a value of £19,100 are now past their repayment date but have not yet been renegotiated. The loan stock investments are made as part of the qualifying investments within the investment portfolio, and the risk management processes applied to the loan stock investments have already been set out under market price risk below.

An aged analysis of the value of loan stock investments included above, which are paid due but not individually impaired, is set out below. For this purpose, these loans are considered to be paid due when any payment due under the loan's contractual terms (such as payment of interest or redemption date) is received late or missed. We are required to report in this format and include the full value of the loan even though in some cases it is only in respect of interest that they are in default.

|   | 0-6 months £ | 6-12 months £ | over 12 months £ | 2022 Total £  |
| --- | --- | --- | --- | --- |
|  Loans to investee companies past due | - | - | 1,705,422 | 1,705,422  |
|   | 0-6 months £ | 6-12 months £ | over 12 months £ | 2021 Total £  |
|  Loans to investee companies past due | - | - | 1,894,811 | 1,894,811  |

Credit risk also arises from cash and cash equivalents, deposits with banks and amounts held in liquidity funds. There is a risk of liquidity fund defaults such that there could be defaults within their underlying portfolios that could affect the values at which the Company could sell its holdings. The five OEC money market funds holding £34,143,097 are all triple A rated funds and, along with bank deposits of £3,573,679 at four well-known financial institutions, credit risk is considered to be relatively low in the current circumstances. The Board manages credit risk in respect of these money market funds and cash by ensuring a spread of such investments such that none should exceed 15% of the Company's total investment assets. The Company's current account totalling £185,474 is held with NatWest Bank plc, so the risk of default is considered to be low.

There could also be a failure by counter-parties to deliver securities which the Company has paid for, or pay for securities which the Company has delivered. This risk is considered to be small as most of the Company's investment transactions are in unquoted investments, where investments are conducted through solicitors, to ensure that payment matches delivery. In respect of any quoted investment transactions that are undertaken, the Company uses brokers with a high credit quality, and these trades usually have a short settlement period. Accordingly, counterparty risk is considered to be relatively low.

Financial Statements

Annual Report & Financial Statements 2022: McGehee Income & Growth 4 VCT plc

71
## Notes to the Financial Statements for the year ended 31 December 2022
Market price risk
Market price risk arises from uncertainty about the future valuations of the unquoted portfolio held in accordance with the
Company’s investment objectives. These future valuations are determined by many factors but include the operational and
financial performance of the underlying investee companies (Investment risk), as well as market perceptions of the future
performance of the UK economy and its impact upon the economic environment in which these companies operate. This risk
represents the potential loss that the Company might suffer through holding its investment portfolio in the face of market
movements, which was a maximum of £45,951,680 at the year-end, representing the fair value of the investment portfolio.
The investments in equity and fixed interest stocks of unquoted companies that the Company holds are not traded and as such
the prices are more uncertain than those of more widely traded securities. As, in a number of cases, the unquoted investments
are valued by reference to price earnings ratios prevailing in quoted comparable sectors (discounted for points of difference from
quoted comparators), their valuations are exposed to changes in the price earnings ratios that exist in the quoted markets.
The Board’s strategy in managing the market price risk inherent in the Company’s portfolio of equities and loan stock
investments is determined by the requirement to meet the Company’s Objective, as set out on page 6 in the Strategic Report. As
part of the investment management process, the Board seeks to maintain an appropriate spread of market risk, and also has full
and timely access to relevant information from the Investment Adviser. No single investment is permitted to exceed 15% of total
investment assets at the point of investment. The Investment Committee meets regularly and reviews the investment
performance and financial results, as well as compliance with the Company’s objectives. The Company does not use derivative
instruments to hedge against market risk.
Market price risk sensitivity
The Board believes that the Company’s assets are mainly exposed to market price risk, as the Company is required to hold most
of its assets in the form of sterling denominated investments in small companies.
Although one asset is quoted on AIM, most portfolio assets are unquoted. All of the investments made by the Investment Adviser
in unquoted companies, irrespective of the instruments the Company actually holds, (whether shares, preference shares or loan
stock) carry a full market risk, even though some of the loan stocks may be secured on assets, but behind any prior ranking bank
debt in the investee company.
The Board considers that the value of investments in equity and loan stock instruments are ultimately sensitive to changes in
their trading performance (discussed under investment risk above) and to quoted share prices, insofar as such changes
eventually affect the enterprise value of unquoted companies. The table below shows the impact on profit and net assets if there
were to be a 20% (2021: 20%) movement in overall share prices, which might in part be caused by changes in interest rate levels.
However, it is not considered possible to evaluate separately the impact of changes in interest rates upon the value of the
Company’s portfolios of investments in small, unquoted companies.
The sensitivity analysis below assumes the actual portfolio of investments held by the Company is perfectly correlated to this
overall movement in share prices. However, Shareholders should note that this level of correlation is unlikely to be the case in
reality, particularly in the case of small, unquoted companies which may have other factors which may influence the extent of the
valuation change, e.g. a strong niche brand may limit the valuation fall compared to comparators, or may be more affected by
external market factors than larger companies.
For each of the companies in the investment portfolio that are valued on a multiple or bid price basis, the calculation has applied
plus and minus 20% to the bid price or multiple (such as earnings or revenue) derived from quoted market comparators that are
used to value the companies. The companies valued on a multiple or bid price basis represent £43.85 million (2021: £63.10
million) of the total investment portfolio of £45.95 million (2021: £65.58 million). The remainder of the portfolio is valued at either
price of recent investment or net asset value, as shown below.
The impact of a change of 20% (2021: 20%) has been selected as this is considered reasonable given the level of volatility
observed both on a historical basis and market expectations for future movement.
Valuation Technique Base Case* Change in input Change in Change in NAV
Financial Statements fair value of (pence per share)
investments
(£’000)

| Revenue Multiple 2.28 +20% |  | 3,299 | 3.16 |
| --- | --- | --- | --- |
|  | -20% | (2,619) | (2.51) |
| EBITDA Multiple 5.43 +20% |  | 1,762 | 1.69 |
|  | -20% | (1,122) | (1.07) |
| Bid price +20% |  | 518 | 0.50 |
|  | -20% | (518) | (0.50) |

Recent Investment Price - -
* As detailed in the accounting policies, the base case is based on market comparables, discounted where appropriate for
marketability, in accordance with the IPEV guidelines.
72 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
## Cash flow interest rate risk

The Company's fixed and floating rate interest securities, its equity and preference equity investments and net revenue may be affected by interest rate movements. Investments are often in relatively small businesses, which are relatively high risk investments sensitive to interest rate fluctuations.

Due to the short time to maturity of some of the Company's floating rate investments, it may not be possible to re-invest in assets which provide the same rates as those currently held.

The Company's assets include fixed and floating rate interest instruments, as shown below. The rate of interest earned is regularly reviewed by the Board, as part of the risk management processes applied to these instruments, already disclosed under market price risk above.

The interest rate profile of the Company's financial net assets at 31 December 2022 was:

|   | Financial net assets on which no interest paid | Fixed rate financial assets | Variable rate financial assets | Total | Weighted average interest rate | Average period to maturity  |
| --- | --- | --- | --- | --- | --- | --- |
|   | € | € | € | € | % | (years)  |
|  Equity shares | 38,205,552 | - | - | 38,205,552 | - | -  |
|  Preference shares | - | 1,720,203 | - | 1,720,203 | 5.8 | 3.9  |
|  Loan stocks | - | 6,025,925 | - | 6,025,925 | 0.7 | 2.0  |
|  Current investments | - | - | 36,143,097 | 36,143,097 | 3.2 | -  |
|  Cash | - | - | 1,573,079 | 1,573,079 | 0.1 | -  |
|  Debtors | 155,632 | - | - | 155,632 | - | -  |
|  Creditors | (303,550) | - | - | (303,550) | - | -  |
|  Total for financial instruments | 38,057,634 | 7,746,128 | 37,716,176 | 83,519,938 | - | -  |
|  Other non financial assets | 19,904 | - | - | 19,904 | - | -  |
|  **Net assets** | **38,077,538** | **7,746,128** | **37,716,176** | **83,539,842** | - | -  |

The interest rate profile of the Company's financial net assets at 31 December 2021 was:

|   | Financial net assets on which no interest paid | Fixed rate financial assets | Variable rate financial assets | Total | Weighted average interest rate | Average period to maturity  |
| --- | --- | --- | --- | --- | --- | --- |
|   | € | € | € | € | % | (years)  |
|  Equity shares | 55,876,437 | - | - | 55,876,437 | - | -  |
|  Preference shares | - | 1,608,338 | - | 1,608,338 | - | 3.9  |
|  Loan stocks | - | 8,099,692 | - | 8,099,692 | 10.0 | 1.9  |
|  Current investments | - | - | 20,475,179 | 20,475,179 | 0.3 | -  |
|  Cash | - | - | 4,059,487 | 4,059,487 | 0.1 | -  |
|  Debtors | 2,878,000 | - | - | 2,878,000 | - | -  |
|  Creditors | (227,415) | - | - | (227,415) | - | -  |
|  Total for financial instruments | 58,527,026 | 9,708,030 | 24,534,666 | 92,769,722 | - | -  |
|  Other non financial assets | 17,532 | - | - | 17,532 | - | -  |
|  **Net assets** | **58,544,558** | **9,708,030** | **24,534,666** | **92,787,254** | - | -  |

Note: Weighted average interest rates above are derived by calculating the expected annual income that would be earned on each asset (but only for those sums that are currently regarded as collectible and would therefore be recognised), divided by the values for each asset class at the balance sheet date.

Variable rate cash earns interest based on LIBOR rates.

The Company's investments in equity shares have been excluded from the interest rate risk profile as they do not yield interest and have no maturity date. Their inclusion would distort the weighted average period information above.

Annual Report & Financial Statements 2022: Mubasa Income & Growth 4 VCT plc

73

Financial Statements
## Notes to the Financial Statements for the year ended 31 December 2022
Cash flow interest rate sensitivity
Although the Company holds investments in loan stocks that pay interest, the Board does not consider it appropriate to assess
the impact of interest rate changes in isolation upon the value of the unquoted investment portfolio, as interest rate changes are
only one factor affecting the market price movements that are discussed above under market price risk. However, as the
Company has a substantial proportion of its assets in money market funds, the table below shows the sensitivity of income
earned to changes in interest rates:

|  |  | 2022 |  |  | 2021 |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Profit and |  |  | Profit and |  |  |
|  | net assets |  |  | net assets |  |  |
|  |  |  | £ |  |  | £ |
| If interest rates rose/fell by 5% (2021: 1%), with all other variables held constant – | 1,527,505 / |  |  |  |  |  |
| increase/(decrease) | (1,527,505) 198,731 / (198,731) |  |  |  |  |  |

Increase/(decrease) in earnings, and net asset value, per Ordinary share (in pence) 1.46p / (1.46)p 0.24p / (0.24)p
Currency risk
All assets and liabilities are denominated in sterling and therefore there is no currency risk, although a number of investee
companies do trade overseas, so do face some exposure to currency risk in their operations.
Fair value hierarchy
The table below sets out fair value measurements using FRS102 s11.27 fair value hierarchy.
Financial assets at fair value through profit and loss Level 1 Level 2 Level 3 Total
At 31 December 2022 £ £ £ £
Equity investments 2,591,357 - 35,614,195 38,205,552
Preference shares - - 1,720,203 1,720,203
Loan stock investments - - 6,025,925 6,025,925
Total 2,591,357 - 43,360,323 45,951,680
Financial assets at fair value through profit and loss Level 1 Level 2 Level 3 Total
At 31 December 2021 £ £ £ £
Equity investments 9,903,755 - 45,972,682 55,876,437
Preference shares - - 1,608,338 1,608,338
Loan stock investments - - 8,099,692 8,099,692
Total 9,903,755 - 55,680,712 65,584,467
There are currently no financial liabilities at fair value through profit and loss.
Financial Statements Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value
measurement of the relevant asset as follows:
Level 1 – valued using quoted prices in active markets for identical assets
Level 2 – valued by reference to valuation techniques using observable inputs other than quoted prices included within Level 1.
Level 3 – valued by reference to valuation techniques using inputs that are not based on observable market data.
The valuation techniques used by the Company are explained in the accounting policies in Note 8 to these Financial Statements.
74 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
There was a transfer out of Level 1 into Level 3 during the year. A reconciliation of this and fair value measurements in Level 3 is set out below:

|   | Equity investments £ | Difference shares £ | Loan stock investments £ | Total £  |
| --- | --- | --- | --- | --- |
|  **Opening balance at 1 January 2022** | 45,972,682 | 1,608,338 | 8,099,692 | 55,680,712  |
|  Purchases | 3,339,621 | - | 437,500 | 3,777,121  |
|  Sales | (3,242,632) | (4,273,470) | (1,185,536) | (8,701,638)  |
|  Transfers into Level 3 | 417,536 | - | - | 417,536  |
|  Reclassification at value | 110,100 | - | (110,100) | -  |
|  Total (losses)/gains included in losses on investments in the Income Statement: |  |  |  |   |
|  - on assets sold or impaired | (3,535,633) | 4,272,401 | - | 736,768  |
|  - on assets held at the year end | (7,447,479) | 112,934 | (1,215,631) | (8,550,176)  |
|  **Closing balance at 31 December 2022** | **35,614,195** | **1,720,203** | **6,025,925** | **43,360,323**  |

As detailed in the accounting policy for Note 8, where investments are valued on an earnings-multiple basis, the main input used for this basis of valuation is a suitable price-earnings ratio taken from a comparable sector on the quoted market which is then appropriately adjusted for points of difference. Thus any change in share prices can have a significant effect on the value measurements of the Level 3 investments, as they may not be wholly offset by the adjustment for points of difference.

Level 3 unquoted equity and loan stock investments are valued in accordance with the IPEV guidelines as follows:

|   | 31 December 2022 £ | 31 December 2021 £  |
| --- | --- | --- |
|  **Valuation methodology** |  |   |
|  Multiple of earnings, revenues or gross margin, as appropriate | 41,889,408 | 55,435,915  |
|  Net Asset Value | 931,159 | -  |
|  Recent investment price (reviewed for impairment) | 500,612 | 195,200  |
|  Average Share Price | 39,144 | -  |
|  Estimated realisation proceeds | - | 49,597  |
|   | **43,360,323** | **55,680,712**  |

The unquoted equity and loan stock investments had the following movements between valuation methodologies between 31 December 2021 and 31 December 2022:

|  Change in valuation methodology | Carrying value as at 31 December 2022 £ | Explanatory note  |
| --- | --- | --- |
|  Multiple basis to net asset basis | 931,159 | Net asset value is a more appropriate basis for determining fair value.  |

The valuation will be the most appropriate valuation methodology for an investment within its market, with regard to the financial health of the investment and the December 2022 IPEV. The Directors believe that, within these parameters, there are no other possible methods of valuation which would be reasonable as at 31 December 2022.

## 16 Management of capital

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern, so that it can continue to provide returns for Shareholders. It aims to provide an adequate return to Shareholders by allocating its capital to assets commensurate with the level of risk.

By its nature, the Company has an amount of capital, at least 85% (as measured under the tax legislation) of which is and must remain, invested in the relatively high risk asset class of small UK companies within three years of that capital being subscribed. The Company accordingly has limited scope to manage its capital structure in the light of changes in economic conditions and the risk characteristics of the underlying assets. Subject to this overall constraint upon changing the capital structure, the group

Annual Report & Financial Statements 2022, Muteua Income & Growth 4 VCT plc

75

Financial Statements
## Notes to the Financial Statements for the year ended 31 December 2022
may adjust the amount of dividends paid to Shareholders, return capital to Shareholders, issue new shares, or sell assets if so
required to maintain a level of liquidity to remain a going concern.
Although, as the Investment Policy implies, the Board would consider levels of gearing, there are no current plans to do so. It
regards the net assets of the Company as the Company’s capital, as the levels of liabilities are small and the management of
them is not directly related to managing the return to Shareholders. There has been no change in this approach from the
previous year.
17 Segmental analysis
The operations of the Company are wholly in the United Kingdom, from one class of business.
18 Post balance sheet events
On 6 February 2023, 6,009,092 new Ordinary Shares were allotted under the Company’s Offer for Subscription, raising net
funds of £4.81 million.
On 7 March 2023, a new investment of £0.25 million was made into Connect Earth Limited.
On 22 March 2023, a new investment of £0.50 million was made into Cognassist UK Limited.
On 24 March 2023, the company received £2.14 million for the sale of Tharstern Group Limited.
Financial Statements
76 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
# Information for Shareholders

## Shareholder Information

### Communication with Shareholders

We aim to communicate regularly with our Shareholders. The annual general meetings provide a useful platform for the Board to meet Shareholders and exchange views and we are pleased to invite Shareholders to attend the joint Investment Adviser presentation with Mobous Income and Growth VCT plc and the Annual General Meeting to be held from 1:30 pm on 24 May 2023 to give you the opportunity to meet the Directors and representatives of the Investment Adviser. The Company releases Interim Management Statements in respect of those quarters where it does not publish half or full year accounts via the London Stock Exchange RNS service. The Investment Adviser held its annual Shareholder event virtually on 23 March 2023. A recording is available via the Company's website.

Shareholders wishing to follow the Company's progress can visit its website at www.mgdvct.co.uk. The website includes up-to-date details on fund performance and dividends as well as publicly available information on the Company's portfolio of investments and copies of company reports. There is also a link to the London Stock Exchange's website at: www.londonstockexchange.com, where Shareholders can obtain details of the share price and latest NAV announcements, etc.

### Financial calendar

|  23 March 2023 | Virtual Shareholder Event (please register to view the recording which is available online at: https://mvcts.comworld.co.uk/)  |
| --- | --- |
|  April 2023 | Announcement of Annual Results and circulation to Shareholders of Annual Report & Financial Statements for the year ended 31 December 2022  |
|  24 May 2023 | Annual General Meeting  |
|  September 2023 | Announcement of Half-Year Results and circulation of Half-Year Report for the six months ended 30 June 2023 to Shareholders  |
|  31 December 2023 | Year-end  |

### Gresham House website

Shareholders can check the performance of the Company by visiting the Investment Adviser's website www.greshamhouse.com. This is regularly updated with information on your investment including case studies of portfolio companies.

The website includes relevant Shareholder literature, including previous Annual and Half-Year Reports and the Company's Key Information Document ("KID").

### Annual General Meeting

The Company's next Annual General Meeting will be held on Wednesday, 24 May 2023 at 2.30 pm at the offices of Shoomiths LLP, 1 Bow Churchyard, London, EC4M 9DQ. For those who are also shareholders of the Mobous Income & Growth VCT plc, they will hold their Annual General Meeting at 1:00 pm the same day. At 1:30 pm there will be a joint Investment Adviser presentation with a light lunch followed by the Company's AGM at 2.30 pm.

Shareholders will also be able to view the meeting remotely by registering for access to a web stream link which can be found on the Company's website at www.mgdvct.co.uk. Shareholders will be able to vote on a show of hands in person at the meeting and will also be able to submit questions to the Board in advance of the meeting using the AGM@greshamhouse.com email address. Shareholders attending virtually will not be able to vote at the meeting and therefore you are encouraged to lodge your proxy form, which is included with Shareholders' copies of this Annual Report, or on-line at www.greshamhouse.com before 22 May 2023 at 2.30 pm for your votes to be valid. A copy of the Notice of the Meeting is included on pages 79 to 81.

### Dividends

Shareholders who wish to have dividends paid directly into their bank account, rather than sent by cheque to their registered address, can complete a mandate for this purpose. Mandates can be obtained by contacting the Company's Registrar, Link Group, at the address given on page 83.

Shareholders are encouraged to ensure that the Registrar maintains up-to-date details for their account and to check whether they have received all dividend payments. This is particularly important if a Shareholder has recently changed address or changed their bank. We are aware that a number of dividends remain unclaimed by Shareholders and whilst we will endeavour to contact them if this is the case, we cannot guarantee that we will be able to do so if the Registrar does not have an up-to-date postal or email address.

### Dividend Investment Scheme ("DIS")

Those Shareholders who wish to participate, or to amend their existing participation in the DIS, can do so by visiting www.mgdvct.co.uk and click the Dividends tab or by contacting the Registrar directly using the details on page 83. Please note that Shareholders' elections to participate or amendments to participation in the Scheme require 15 days to become effective.

Information for Shareholders

Annual Report & Financial Statements 2022 Mobous Income & Growth 4 VCT plc

77
## Selling your shares

The Company's Shares are listed on the London Stock Exchange and as such they can be sold in the same way as any other quoted company through a stockbroker. Shareholders are also advised to discuss their individual tax position with their financial advisor before deciding to sell their shares.

The Company is unable to buy back shares direct from Shareholders, so you will need to use a stockbroker to sell your shares. If you are considering selling your shares or trading in the secondary market, please contact the Company's Corporate Broker, Panmure-Gordon (UK) Limited ("Panmure"). Panmure is able to provide details of close periods when the Company is prohibited from buying in shares and details of the price at which the Company has bought in shares.

Panmure can be contacted as follows:

Chris Lloyd - 0207 886 2716 chris.lloyd@panmure.com
Paul Nolan - 0207 886 2717 paul.nolan@panmure.com

## Common Reporting Standard ("CRS") and Foreign Account Tax Compliance Act ("FATCA")

Tax legislation was introduced with effect from 1st January 2016 under the Organisation for Economic Co-operation and Development Common Reporting Standard for Automatic Exchange of Financial Account Information. The legislation requires investment trust companies to provide personal information to HMRC on certain investors who purchase shares. As an affected entity, the Company has to provide information annually to HMRC relating to a number of non-UK based certificated Shareholders who are deemed to be resident for tax purposes in any of the 90 plus countries who have joined CRS. All new Shareholders, excluding those whose shares are held in CREST, entered onto the share register from 1 January 2016 will be asked to provide the relevant information. Additionally, HMRC's policy on FATCA now means that, as a result of the restricted secondary market in VCT shares, the Company's shares are not considered to be "regularly traded". The Company is therefore also an affected entity for the purposes of this legislation and so has to provide information annually to HMRC relating to Shareholders who are resident for tax purposes in the United States.

For further information, please see HMRC's Quick Guide: Automatic Exchange of Information – information for account holders: https://www.quick-independent.co.uk/can-encourage-of-information-account-holders.

## Managing your shareholding online

For details on your individual shareholding and to manage your account online, Shareholders may log into or register with the Link Group Shareholder Portal at: www.lignishlores.com. You can use the Shareholder Portal to change and update your preferences including changing your address details, check your holding balance and transactions, view the dividends you have received, add and amend your bank details and manage how you receive communications from the Company.

## Fraud Warning

### Boiler Room fraud and unsolicited communications to Shareholders.

We have been made aware of a number of Shareholders being contacted in connection with sophisticated but fraudulent financial scams which purport to come from the Company or to be authorised by it. This is often by a phone call or an email usually originating from outside of the UK, often claiming or appearing to be from a corporate finance firm offering to buy your VCT shares at an inflated price.

Further information on boiler room scams and fraud advice plus who to contact, can be found first in the answer to a question "What should I do if I receive an unsolicited offer for my shares?" within the VCT Investor area of the Investment Adviser's website in the A Guide to VCTs section: www.moltecovcts.co.uk and secondly, in a link to the FCA's ScamSmart site: www.fca.org.uk/scamsmart

We strongly recommend that you seek financial advice before taking any action if you remain in any doubt. You can also contact the Investment Adviser on 0207 382 0999, or email moltecovcts@greshamhouse.com to check whether any claims made by a caller are genuine.

Shareholders are also encouraged to ensure their personal data is always held securely and that data held by the Registrar of the Company is up to date, to avoid cases of identity fraud.

## Shareholder enquiries

For enquiries concerning the investment portfolio or the Company in general, please contact the Investment Adviser, Gresham House Asset Management Limited. To contact the Chair or any member of the Board, please contact the Company Secretary, also Gresham House, in the first instance.

The Registrar, Link Group, may be contacted via their Shareholder portal, post or telephone for queries relating to your shareholding or dividend payments, dividend mandate forms, change of address etc.

Full contact details for each of Gresham House and Link Group are included under Corporate Information on page 83 of this Annual Report.

Information for Shareholders

78

Holmes Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
# Notice of the Annual General Meeting

NOTICE IS HEREBY GIVEN that the Annual General Meeting of Motious Income & Growth 4 VCT plc ("the Company") will be held at 2.30 pm on Wednesday, 24 May 2023, at the offices of Shoesmiths LLP, 1 Bow Churchyard, London, EC4M 9DQ for the purposes of considering and, if thought fit, passing the following resolutions of which resolutions 1 to 8 will be proposed as ordinary resolutions and resolutions 9 and 10 will be proposed as special resolutions. An explanation of the main business to be proposed is included in the Directors' Report on pages 37 to 39 of this document:

1. To receive and adopt the annual report and financial statements of the Company for the year ended 31 December 2022 ("Annual Report"), together with the auditor's report thereon.
2. To approve the directors' annual remuneration report as set out in the Annual Report.
3. To approve the remuneration policy as set out in the Annual Report.
4. To re-elect Graham Paterson as a director of the Company.
5. To re-elect Chris Burke as a director of the Company.
6. To elect Lindsay Dodsworth as a director of the Company.
7. To re-appoint BDO LLP of SS Baker Street, London W1U 7EU, London, EC1A 4AB as auditor of the Company until the conclusion of the next general meeting at which accounts are laid before the Company and to authorise the directors to determine the remuneration of the auditor.
8. That, in substitution for any existing authorities, the directors of the Company be and hereby are generally and unconditionally authorised pursuant to section 561 of the Companies Act 2006 ("the Act") to exercise all the powers of the Company to allot ordinary shares of 1 penny each in the capital of the Company ("Shares") and to grant rights to subscribe for, or convert, any security into Shares ("Rights") up to an aggregate nominal value of £364,206, provided that the authority conferred by this resolution shall (unless renewed, varied or revoked by the Company in general meeting) expire on the date falling fifteen months after the passing of this resolution or, if earlier, at the conclusion of the annual general meeting of the Company to be held in 2024, but so that this authority shall allow the Company to make before the expiry of this authority offers or agreements which would or might require Shares to be allotted or Rights to be granted after such expiry and the directors of the Company shall be entitled to allot Shares or grant Rights pursuant to any such offers or agreements as if the authority conferred by this resolution had not expired.
9. That, subject to the passing of resolution 8 set out in this notice and in substitution for any existing authorities, the Directors of the Company be and hereby are empowered in accordance with sections 570 and 573 of the Act to allot or make offers or agreements to allot equity securities (as defined in section 560(1) of the Act) for cash, pursuant to the authority conferred upon them by resolution 8 set out in this notice, or by way of a sale of treasury shares, as if section 561(1) of the Act did not apply to any such sale or allotment, provided that the power conferred by this resolution shall be limited to the allotment of equity securities:
(i) with an aggregate nominal value of up to, but not exceeding, £10,366, in connection with offer(s) for subscription; and
(ii) with an aggregate nominal value of up to, but not exceeding, 10% of the issued share capital of the Company from time to time pursuant to any dividend investment scheme operated by the Company; and
(iii) otherwise than pursuant to sub-paragraph (i) and (ii) above, with an aggregate nominal value of up to, but not exceeding, 10% of the issued share capital of the Company from time to time;

in each case where the proceeds of the allotment may be used, in whole or in part, to purchase the Company's Shares in the market and provided that this authority shall (unless renewed, varied or revoked by the Company in general meeting) expire on the date falling fifteen months after the passing of this resolution or, if earlier, on the conclusion of the annual general meeting of the Company to be held in 2024, except that the Company may, before the expiry of this authority, make offers or agreements which would or might require equity securities to be allotted after such expiry and the directors of the Company may allot equity securities in pursuance of such offers or agreements as if the power conferred by this resolution had not expired.
10. That, in substitution for any existing authorities, the Company be and hereby is authorised pursuant to and accordance with section 701 of the Act to make one or more market purchases (within the meaning of section 693(4) of the Act) of its own Shares provided that:
(i) the aggregate number of Shares which may be purchased shall not exceed 16,543,794 or, if lower, such number of Shares (rounded down to the nearest whole Share) as shall equal 14.99% of the Shares in issue at the date of passing of this resolution;
(ii) the minimum price which may be paid for a Share is 1 penny (the nominal value thereof);
(iii) the maximum price which may be paid for a Share (excluding expenses) shall be the higher of (a) an amount equal to 5% above the average of the middle market quotations for a Share in the Company taken from the London Stock Exchange Daily Official List for the five business days immediately preceding the day on which the Share is contracted to be purchased and (b) the amount stipulated by Article 5(6) of the Market Abuse Regulation (EU) 596/2014 (as such Regulation forms part of the UK law and as amended);

Annual Report & Financial Statements 2022 Motious Income & Growth 4 VCT plc

79

Information for
Shareholders
## Notice of the Annual General Meeting
(iv) the authority conferred by this resolution shall (unless renewed, varied or revoked by the Company in general meeting)
expire on the date falling fifteen months after the passing of this resolution or, if earlier, on the conclusion of the annual
general meeting of the Company to be held in 2024; and
(v) the Company may make a contract or contracts to purchase its own Shares under the authority hereby conferred prior
to the expiry of such authority which will or may be executed wholly or partly after the expiry of such authority and may
make a purchase of its own Shares in pursuance of any such contract.
BY ORDER OF THE BOARD
Registered Office: Gresham House Asset Management Limited
5 New Street Square Company Secretary
London Dated: 5 April 2023
EC4A 3TW
Notes:
The following Notes explain your general rights as a Shareholder and your right to attend and vote at this Meeting or to appoint someone else to
vote on your behalf.
1. A member is entitled to attend, speak and vote at the Meeting in person or to appoint one or more other persons as their proxy to exercise
all or any of his rights on his behalf. Further details of how to appoint a proxy, and the rights of proxies, are given in the Notes below. Where
a member intends to join the Meeting by means of the webcast, they shall be permitted to ask questions at the Meeting but shall not be
entitled to vote on resolutions at the Meeting (and are, therefore, encouraged to submit their votes by way of proxy). Note 16 of the Notice
will apply to those who join the meeting (which would be in attendance only) by means of the webcast.
2. To be entitled to attend the Meeting (and for the purpose of the determination by the Company of the number of votes they may cast) and to
be able to lodge your proxy votes, Shareholders must be registered in the Register of Members of the Company at close of trading on
22May 2023. Changes to the Register of Members after the relevant deadline shall be disregarded in determining the rights of any person
to attend the Meeting and/or webcast and vote by proxy.
3. In order for a proxy appointment to be valid it must be received by Link Group, Central Square, 29 Wellington Street, Leeds LS1 4DL by
2.30pm on 22 May 2023.
4. A Shareholder may appoint more than one proxy in relation to the Meeting provided that each proxy is appointed to exercise the rights
attached to a different ordinary share or ordinary shares held by that Shareholder. A proxy need not be a Shareholder of the Company.
5. In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the
most senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the Company’s
Register of Members in respect of the joint holding (the first named being the most senior).
6. A form of proxy for use in connection with the Meeting is enclosed with the document of which this Notice forms part. If you do not have a
form of proxy and would like a copy, please contact the Company’s registrar, Link Group at 10th Floor Central Square, 29 Wellington Street,
Leeds LS1 4DL (“Registrar”), or on 0371 664 0391. Completion and return of a form of proxy form will not legally prevent a Shareholder from
attending and voting at the Meeting in person, or from joining the Meeting (which would be as an attendee only) by means of the webcast.
The Company requests all Shareholders to vote by proxy on the resolutions set out in this Notice as soon as possible.
7. A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or against the resolution. If
no voting indication is given, your proxy will vote or abstain from voting at their discretion. Your proxy will vote (or abstain from voting) as
they think fit in relation to any other matter which is put before the Meeting.
8. You can also vote either:
●● by logging on to www.signalshares.com and following the instructions.
●● if you need help with voting online, please contact our Registrar, Link Group, on 0371 664 0391 if calling from the UK, or +44 (0) 371
664 0391 if calling from outside of the UK, or email Link at shareholderenquiries@linkgroup.co.uk.
●● in the case of CREST members, by utilising the CREST electronic proxy appointment service in accordance with the procedures set
out below.
We strongly recommend voting electronically at www.signalshares.com as your vote will automatically be counted. Given the current
situation, with many people working from home and delays in the postal system, there is a risk that your vote may not be counted if you
send a paper proxy.
9. If you return more than one proxy appointment, the appointment received last by the Registrar before the latest time for the receipt of
proxies will take precedence. You are advised to read the terms and conditions of use carefully. Electronic communication facilities are
open to all Shareholders and those who use them will not be disadvantaged.
10. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the Meeting
(and any adjournment of the Meeting) by using the procedures described in the CREST Manual (available from www.euroclear.com/site/ public/
EUI). CREST Personal Members or other CREST sponsored members, and those CREST members who have appointed a service provider(s),
should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf.
Shareholders
Information for 11. In order for a proxy appointment or instruction made by means of CREST to be valid, the appropriate CREST message (a ‘CREST Proxy
Instruction’) must be properly authenticated in accordance with Euroclear UK & International Limited’s specifications and must contain the
information required for such instructions, as described in the CREST Manual. The message must be transmitted so as to be received by the
issuer’s agent (ID RA10) by 2.30 pm on 22 May 2023. For this purpose, the time of receipt will be taken to mean the time (as determined by
the timestamp applied to the message by the CREST application host) from which the issuer’s agent is able to retrieve the message by
enquiry to CREST in the manner prescribed by CREST. After this time, any change of instructions to proxies appointed through CREST
should be communicated to the appointee through other means.
80 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
12. CREST members and, where applicable, their CREST sponsors or voting service providers should note that Euroclear UK & International Limited does not make available special procedures in CREST for any particular message. Normal system timings and limitations will, therefore, apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member, or sponsored member, or has appointed a voting service provider(s), to procure that their CREST sponsor or voting service provider(s) take(s) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting system providers are referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings. The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
13. Any corporation which is a Shareholder can appoint one or more corporate representatives who may exercise on its behalf all of its powers as a Shareholder provided that no more than one corporate representative exercises powers in relation to the same shares.
14. As at 4 April 2023 (being the latest practicable business day prior to the publication of this Notice), the Company's ordinary issued share capital consists of 110,385,539 ordinary shares, carrying one vote each. Therefore, the total voting rights in the Company as at 4 April 2023 are 110,366,539.
15. Under Section 527 of the Companies Act 2006, Shareholders meeting the threshold requirements set out in that section have the right to require the Company to publish on a website a statement setting out any matter relating to (i) the audit of the Company's Financial Statements (including the Auditor's Report and the conduct of the audit) that are to be laid before the Meeting, or (ii) any circumstances connected with an auditor of the Company ceasing to hold office since the previous meeting at which annual Financial Statements and reports were laid in accordance with Section 437 of the Companies Act 2006 (in each case) that the Shareholders propose to raise at the relevant meeting. The Company may not require the Shareholders requesting any such website publication to pay its expenses in complying with Sections 527 or 528 of the Companies Act 2006. Where the Company is required to place a statement on a website under Section 527 of the Companies Act 2006, it must forward the statement to the Company's auditor not later than the time when it makes the statement available on the website. The business which may be dealt with at the Meeting for the relevant financial year includes any statement that the Company has been required under Section 527 of the Companies Act 2006 to publish on a website.
16. Any Shareholder attending the Meeting has the right to ask questions. Any Shareholder may submit questions in relation to the business to be transacted at the Meeting via email to AGM@premianthouse.com by 22 May 2023. The Company must cause to be answered any such question relating to the business being dealt with at the Meeting but no such answer need be given if (a) to do so would interfere unduly with the preparation for the Meeting or involve the disclosure of confidential information, (b) the answer has already been given on a website in the form of an answer to a question, or (c) it is undesirable in the interests of the Company or the good order of the Meeting that the question (is answered).
17. Copies of the directors' letters of appointment will be available for inspection at the Company's trading office during normal business hours on any weekday (excluding Saturdays, Sundays and public holidays) until the end of the Meeting and will also be available for inspection at the place of the Meeting for at least 15 minutes before and during the Meeting.
18. You may not use any electronic address (within the meaning of Section 333(4) of the Companies Act 2006) provided in either this Notice or any related documents to communicate with the Company for any purposes other than those expressly stated.

A copy of this Notice, and other information required by Section 31A of the Companies Act 2006, can be found on the Company's website at www.mg4sin.co.uk.

Information for Shareholders

Annual Report & Financial Statements 2022: McIntosh Income & Growth 4 VCT.pdf

01
## Glossary of terms
Alternative performance measure (“APM”)
A financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure
defined or specified in the Company’s financial reporting framework. These APMs tend to be industry specific terms which help
Shareholders to understand and assess the Company’s progress. A number of terms contained within this Glossary have been
identified as APMs.
Cumulative dividends paid (APM)
The total amount of dividend distributions by the Company over the time period specified. A list of all dividends paid since launch of
the Company is shown on the Company’s website www.mig4vct.co.uk. Dividends paid in the year and dividends paid in respect of
the year are shown in Note 7.
Cumulative total return (APM)
Cumulative total return per share comprises the NAV per share (NAV basis) or the mid-market price per share (Share price basis), plus
cumulative dividends paid since launch in 1999.
Internal Rate of Return (“IRR”)
The internal rate of return is the annual discount rate that equates the original investment cost with the value of subsequent cash
flows (such as receipts/dividends or further investment) and the latest valuation/exit proceeds or net asset value. Generally speaking,
the higher an investment’s IRR, the more successful it is.
Net asset value or NAV
The value of the Company’s total assets less its total liabilities. It is equal to the total equity Shareholders’ funds.
Net asset value per share or NAV per share
The net asset value per share is calculated as total equity Shareholders’ funds divided by the number of Ordinary shares in issue at
the year-end.
NAV Total Return (APM)
This measure combines two types of returns received by Shareholders. Firstly, as income in the form of dividends and secondly, as
capital movements (net asset value) of the value of the Company.
It is a performance measure that adjusts for dividends that have been paid in a period or year. This allows Shareholders to assess the
returns they have received both in terms of the performance of the Company but also including dividends they have received from
the Company which no longer form part of the Company’s assets.
It is calculated as the percentage return achieved after taking the closing NAV per share and adding dividends paid in the year and
dividing the total by the opening NAV per share. The Directors feel that this is the most meaningful method for Shareholders to assess
the performance of the Company.
To aid comparison with the wider Investment Trust market, the Annual Report also contains a Total Return performance measure
which assumes dividends are reinvested. This assumes that dividends paid are reinvested at the date of payment at a price
equivalent to the latest announced NAV at the ex-div date. Where this is referred to it will be specified in the Notes.
Ongoing charges ratio (APM)
This figure, calculated using the AIC recommended methodology, shows Shareholders the annual percentage reduction in
shareholder returns as a result of recurring operational expenses, assuming markets remain static and the portfolio is not traded.
Although the Ongoing Charges figure primarily is based upon historic information, it provides Shareholders with an indication of the
likely level of costs that will be incurred in managing the Company in the future. This is calculated by dividing the Investment Adviser’s
fees of £1,881,009 and running costs of £570,258 (per Notes 4a and 4d on pages 61 and 62), the latter being reduced by IFA trail
commission and one-off professional fees, by the average net assets throughout the year of £85,580,019.
Realised gains/(losses) in the year
This is the profit or loss that arises following the full or partial disposal of a holding in a portfolio company. It is calculated by deducting
the value of the holding as at the previous year-end from the proceeds received in respect of such disposal.
Share price Total Return (APM)
As NAV Total Return, but the Company’s mid-market share price (source: Panmure Gordon & Co) is used in place of NAV. This
measure more reflects the actual return a Shareholder will have earned, were they to sell their shares at the year/period’s end date. It
includes the impact of any discounts or premiums at which the share price trades compared to the underlying net asset value of the
Company. If the shares trade at a discount, the returns could be less than the NAV Total Return, but if trading at a premium, returns
Shareholders
Information for could be higher than the NAV Total Return.
82 Mobeus Income & Growth 4 VCT plc Annual Report & Financial Statements 2022
## Corporate Information
Directors (Non-executive)
Jonathan Cartwright (Chair)
Chris Burke
Lindsay Dodsworth
Graham Paterson
Investment Adviser, Company Secretary and Administrator
Gresham House Asset Management Limited
80 Cheapside
London
EC2V 6EE
Tel: +44(0) 20 7382 0999
info@greshamhouse.com
www.greshamhouse.com
Company’s Registered Office and Head Office
5 New Street Square
London
EC4A 3TW
Company Registration Number
03707697
Legal Entity Identifier:
213800IFNJ65R8AQW943
Website
www.mig4vct.co.uk
E-mail
mobeusvcts@greshamhouse.com

| Independent Auditor | Solicitors | Corporate Broker |
| --- | --- | --- |
| BDO LLP | Shakespeare Martineau LLP | Panmure Gordon (UK) Limited |
| 55 Baker Street | 60 Gracechurch Street | 40 Gracechurch Street |
| London | London | London |
| W1U 7EU | EC3V 0HR | EC3V 0BT |
| Receiving Agent | Registrar | VCT Status Adviser |
| City Partnership | Link Group | Philip Hare & Associates LLP |
| The Mending Rooms | 10th Floor | 6 Snow Hill |
| Park Valley Mills | Central Square | London |
| Meltham Road | 29 Wellington Street | EC1A 2AY |
| Huddersfield | Leeds |  |
| HD4 7BH | LS1 4DL |  |

Information for
Shareholders

| Sponsor | Shareholder Portal: | Bankers |
| --- | --- | --- |
| Howard Kennedy Corporate Services LLP | www.signalshares.com | National Westminster Bank plc |
| 1 London Bridge Walk |  | City of London Office |
| London | Tel: +44 (0) 371 644 0324 | PO Box 12258 |
| W1A 2AW |  | 1 Princes Street |

London
EC2R 8PA
Annual Report & Financial Statements 2022 Mobeus Income & Growth 4 VCT plc 83
Mobeus Income & Growth 4 VCT plc