Half-year Report

Neptune-Calculus Income and Growth VCT ('the Company') is a Venture Capital Trust listed on the London Stock Exchange which has the objective of generating long term capital growth and tax free dividends for investors. The Company is managed as a VCT in order that shareholders may benefit from the tax reliefs available.

The Company's investment policy is to invest approximately 75 per cent of the Company's funds in a diversified portfolio of holdings in qualifying investments whether unquoted or traded on the Alternative Investment Market ('AIM'). Investments are made selectively across a diverse range of sectors in companies which have the potential to generate growth and enhance their value. The Company does not invest in start-up and seed capital situations. The qualifying investments are managed by Calculus Capital Limited ('Calculus'), and the balance of the Company's investments can be invested in a combination of Neptune income funds and a portfolio of similar income generating UK listed shares and money market instruments.

Accumulated shareholder value represents net asset value per share plus cumulative dividends paid per share.

*Being the latest practicable date prior to publication.

+Including current period revenue.

I am pleased to present your Company's results for the six months ended 30 June 2016. The portfolio saw a decrease in value over the period on a like-for-like basis. The Company paid the 2015 final dividend of 2p per share to shareholders in June and, after payment of this dividend, net assets per Ordinary Share on 30 June 2016 were 33.9 pence per share compared with 39.3 pence per share as at 31 December 2015. The dividend payment took the total cumulative dividends paid on the Ordinary Shares since inception to 36.0 pence per share. The fall in value is particularly disappointing as several companies have made notable progress but this has yet to show itself in their respective valuations.

Our qualifying investments, which include both unquoted and AIM companies, are managed by Calculus. Over the period under review, the overall value of the unquoted portfolio decreased by 10 per cent during the period due to the Hembuild Group Limited (Hembuild") loan notes being written down to nil, and the valuation of Terrain Energy Limited ("Terrain"), Dryden Human Capital Group Limited ("Dryden") and RMS Europe Limited ("RMS") being written down by an aggregate £140,000. The value of the quoted companies decreased on a like-for-like basis by approximately 30 per cent, compared with a decrease in the AIM market of 4 per cent, due to a fall in the share price of Genedrive plc (previously Epistem Holdings plc) ('Genedrive").

During the period, the Company made a £100,000 investment in Arcis Biotechnology Holdings Limited ("Arcis"), an R&D company which has used its technology platform to develop innovative products in several different markets. In April the Company made a £150,000 investment in Scancell Holdings plc ("Scancell"), a biotech company which develops novel therapeutic vaccines for treating cancer. Further details are disclosed in the Investment Manager's Report.

Our non-qualifying investments principally comprise holdings in the Neptune Income Fund and Neptune Quarterly Income Fund which decreased by 5 and 10 per cent respectively over the period. At 30 June 2016, the Company also held £430,000 in cash funds, as shown in the Investment Portfolio.

A more detailed analysis of qualifying investment performance can be found in the Investment Manager's Review following this statement.

In line with our policy of returning cash to shareholders, the Company carried out a buyback in April 2016. The Company bought back 100,000 shares at 39 pence per share.

Other than as disclosed above there have been no developments since the period end.

In line with our policy of maximising tax-free dividends to shareholders, the Directors are pleased to declare an interim dividend of 1.5 pence per Ordinary Share, payable on 12 October 2016 to shareholders on the register on 16 September 2016.

While the general outlook post Brexit may seem uncertain, we believe the investments in the qualifying portfolio have considerable upside potential.

Philip Stephens

Chairman

19 August 2016

Calculus advises the Company in respect of qualifying investments made by the Company.

At 30 June 2016 the portfolio of qualifying investments comprised 13 companies made up of both AIM quoted and unquoted stocks. The Company continues to meet the requirements for approved VCT status.

In the period under review, the Company made one new unquoted investment in Arcis. Arcis is a Cheshire based, research and development company which has used its technology platform to develop innovative products in DNA extraction and agriculture. Its Bio-Applications division has begun commercialisation of its new PCRdirect product, targeting both human and infectious disease DNA extraction. Extraction is an essential preliminary step before DNA analysis and sequencing and represents a large and growing market in its own right. PCRdirect has been launched as a Research Use Only (RUO) product and is currently undergoing external validation with a number of companies and key opinion leaders. CE-mark certification and full commercial launch are targeted before the end of 2016. Arcis' Agriculture Division has two products which help to improve crop yields and also the quality of sporting surfaces e.g. a golf course - an existing chemical nematicide product and the novel biopesticide. The chemical nematicide has been launched through distributors in Australia and Asia Pacific, where regulatory hurdles are lower, and the focus is now on improving volumes and margins to achieve cash break even by year end. However, the divisional priority is finalising the development of and the subsequent commercialisation of the new bio-nematicide. Though at a relatively early stage of development, as its components are naturally occurring, it has an easier regulatory pathway and it is considered to have high potential. 1-tonne bag trials have exceeded initial expectations in a variety of soil conditions and Arcis is running field trials in the summer growing season. In early 2016, funds managed by Calculus made a £1.35m investment in Arcis to fund on going product development and commercialisation, primarily of BioApps. This year, Arcis has also appointed a new Chairman and a BioApps Commercial Director as part of the process of strengthening management in preparation for the next stage of the company's development.

At 30 June 2016, the value of the unquoted portfolio was £2.0m and decreased by 10.0 per cent on a like for like basis principally due to a decrease in the carrying value of Terrain, Hembuild, RMS and Dryden during the period.

After acquiring Whisby, Lidsey and Louth, Terrain now has interests in twelve petroleum licences: Keddington, Kirklington, Dukes Wood, Burton on the Wolds, Whisby and Louth in the East Midlands, Larne and an offshore licence to the north of Larne in Northern Ireland, Brockham and Lidsey in the Weald Basin and Egmating and Starnberger See in Germany. In the first half of 2016, the company successfully drilled the Whisby well and is currently producing from it. A first well on the Larne licence targeting the Woodburn prospect was drilled in May/June 2016, but did not encounter any hydrocarbon accumulation. The data collected in the well is being evaluated to decide where to focus future exploration activity in the basin. Additionally, a sidetrack at Keddington was drilled and a well at Brockham is expected to be drilled in early 2017.

As previously reported, Hembuild appointed administrators in November 2015. Unfortunately, there is no expectation of any return to shareholders and it is increasingly unlikely that there will be any material return in respect of the loan notes (although half of these had previously been repaid).

RMS provides port services from six locations on the Humber Estuary, the UK's busiest trading estuary. The group's services cover shipping, stevedoring, storage/warehousing and support logistics for import and export cargoes moving between Northern Europe, the Baltic, Russia, the Iberian Peninsula and the Mediterranean. In 2014, activity returned to pre-recession levels as UK economic growth continued. Since then, trading has been difficult. This has primarily been due to its exposure to the steel and timber sectors (both characterised recently by very low prices and overstocking and the steel sector by plant closures and ownership uncertainties). The uncertain impact of Brexit on trading volumes with the EU is also a considerable concern for RMS. The original investment in RMS included both equity and loan stock. The later has been repaid in full and, despite difficult trading, RMS continues to be cash generative.

Dryden is headquartered in the UK and specialises in the actuarial, insurance and compliance recruitment sector. Actions undertaken over the last 12 months have significantly improved operational processes within the business and elevated the competitive positioning of the company's brands. The company has focused on delivering exceptional service and added value to clients and candidates. This has enabled it to develop long term relationships with key clients and obtain exclusive contracts for recruitment mandates. However the significant uncertainty caused by the referendum on the UK's membership of the EU and subsequent vote to leave the EU has paralysed recruitment plans at a number of the company's clients. The business has experienced delays in clients' making hiring decisions. The company has a full pipeline of 'live vacancies' to fill and is continuing to look for opportunity in the current uncertain economic, political and regulatory environment. The company remains subject to the close attention of Calculus.

The remaining unquoted companies in the portfolio have performed broadly in line with expectations.

At 30 June 2016, the value of the quoted portfolio was £302,000 and decreased by 30 per cent on a like for like basis compared with a decrease in the AIM market of 4.2 per cent. This performance is principally due to a decrease in the share price of Genedrive (previously Epistem).

Genedrive is a personalised medicine and biotechnology company developing innovative diagnostics alongside providing contract research services to drug development companies. The contract research division is now largely unrelated to the company's core work in diagnostic devices, and advisers have been appointed to assess the strategic options for this side of the business. Genedrive® is a next-generation Point of Care molecular diagnostic system providing a low cost, rapid, simple to use and robust platform for the diagnosis of infectious diseases. The Genedrive® platform and its first tuberculosis ("TB") test has been successfully commercially launched in India in conjunction with Xcelris Labs, with an initial shipment of 100 Genedrive® systems and 5,000 test cartridges to them. Xcelris Labs is one of India's leading genomics products and services testing companies. Initially they will target Genedrive® at the country's approximately 5,000 private clinical laboratories to provide rapid molecular identification and antibiotic resistance/drug susceptibility testing for TB. This launch follows hot on the heels of David Budd's appointment as CEO in March, David has a number of years' experience in successfully launching diagnostic tests within Danaher, Siemens and Bayer. Genedrive® is designed to bring the power of central laboratory molecular diagnostics to the Point of Care setting in a device that has a lower cost and lower time to result than molecular alternatives - just 60-90 minutes. Alongside this, Genedrive announced the successful completion of its first external assessment of its Point of Care Hepatitis C test at the Institut Pasteur, Paris. The Hepatitis C test forms part of a suite of tests to be subsequently launched on the Genedrive® platform including HIV and Hepatitis B. In addition, the company has been allocated funding of $5.3 million from the US Department of Defense to develop Genedrive® to be a handheld biohazard identifier. Should this stage be successful, a further $2.5m will be granted. Genedrive successfully raised £6.5m at 80p per share in a placing in July to enable further development and commercialisation of the Genedrive® platform.

In April 2016 the Company made a £150,000 investment in Scancell. Scancell is developing novel therapeutic vaccines for treating cancer using its two proprietary immunotherapy-based technology platforms. A key challenge in the fight against cancer is that many tumours continue to grow by successfully evading the body's own natural defence mechanism - the immune system. Scancell's mission is to overcome this breach in defences by developing products that stimulate the immune system to treat or prevent cancer using its innovative ImmunoBody® and Moditope® cancer vaccine programmes. Scancell's first ImmunoBody-based cancer vaccine, SCIB1, is being developed for the treatment of melanoma and is in Phase I/II clinical trials. The initial results have been highly encouraging with overall survival and progression free data well beyond established norms. The data suggests that SCIB1 could have an important future role as first line treatment for earlier stage patients with resected Stage II or III disease, a key area of unmet medical need for which there are no effective and safe treatment options available. This is particularly so given its relative low toxicity. In 2017, Scancell plans to conduct a Phase II SCIB1 / checkpoint inhibitor combination study, led by the Massachusetts General Hospital and Harvard Medical School, aiming to demonstrate improved response compared to the anti-PD-1 monotherapy without additional toxicity. Further progress has also been made with the Moditope® platform and the first product, Modi-1, is expected to commence clinical trials for the treatment of triple negative breast cancer and ovarian cancer in 2017. In March 2016, Scancell announced a collaboration with the Karolinska Institutet, Sweden, to explore the role of citrullination in cancer, a key mechanism underpinning the Moditope® platform. In April, Scancell completed a £6 million fund raising to prepare for the SCIB1 combination and Modi-2 trials. In June, Scancell had to suspend the extension of the SCIB1 phase 1/2 trial because of drug supply issues; only eight patients remain in the long term trial. These patients will be dosed when new stocks are available but the anti-tumour response already induced should persist. Scancell has now appointed a leading European drug manufacturer to produce future supplies SCIB1.

There have been no other significant developments since the year end

John Glencross

Calculus Capital Limited

19 August 2016

The ten largest holdings by value are included below:

* The valuations of certain investments include small purchases made which are non-qualifying investments. These cost £12,750 and are valued at £5,784.

† The valuation of other unquoted loan notes includes rolled up interest for Heritage House Media Limited which is non-qualifying. This cost £309,118 and is valued at £nil.

\* These figures are audited.

The total column of this statement is the profit and loss account of the Company. The revenue and capital columns are provided as supplementary information in accordance with The Association of Investment Companies Statement of Recommended Practice.

All items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

There is no statement of recognised gains and losses as there were no other gains and losses.

The relevant accompanying notes are an integral part of this statement.

\* These figures are audited.

The relevant accompanying notes are an integral part of this statement.

\* These figures are audited.

The relevant accompanying notes are an integral part of this statement.

\* These figures are audited.

The relevant accompanying notes are an integral part of this statement.

The unaudited half-yearly financial information does not constitute statutory financial statements as defined in Section 434 of the Companies Act 2006 and has not been reviewed nor audited by the auditors. This information has been prepared on the basis of the accounting policies used in the statutory financial statements of the Company for the year ended 31 December 2015, and in accordance with FRS 104. The statutory financial statements for the year ended 31 December 2015, which contained an unqualified auditors' report, have been lodged with the Registrar of Companies, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006.

The Directors have declared an interim dividend of 1.5 pence per Ordinary Share. This dividend is payable on 12 October 2016 to shareholders on the register on 16 September 2016.

Revenue return per Ordinary Share is based on the net deficit on ordinary activities attributable to the Ordinary Shares of £37,000 (30 June 2015: net deficit £10,000, 31 December 2015: net deficit £31,000) and on 11,253,637 (30 June 2015: 11,311,329, 31 December 2015: 11,311,329) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the period.

Capital return per Ordinary Share is based on the net capital deficit for the period of £348,000 (30 June 2015: net capital return £235,000, 31 December 2015: net capital deficit £400,000) and on 11,253,637 (30 June 2015: 11,311,329, 31 December 2015: 11,311,329) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the period.

Total return per Ordinary Share is based on the total deficit on ordinary activities attributable to the Ordinary Shares of £385,000 (30 June 2015: net return £225,000, 31 December 2015: net deficit £431,000) and on 11,253,637 (30 June 2015: 11,311,329, 31 December 2015: 11,311,329) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the period.

The tax charge for the half year is £nil (30 June 2015: £nil, 31 December 2015: £nil). The estimated effective tax rate is 0% as investment gains are exempt from tax due to the Company's status as an investment company and there is an excess of management charges to carry forward against future taxable profits.

The basic net asset value per Ordinary Share is based on net assets (including current period revenue) of £3,798,000 (30 June 2015: £5,271,000, 31 December 2015: £4,446,000) and on 11,211,329 (30 June 2015: 11,311,329, 31 December 2015: 11,311,329) Ordinary Shares, being the number of Ordinary Shares in issue at the period end.

During the period, the Company purchased for cancellation 100,000 Ordinary shares of 10p (30 June 2015: nil, 31 December 2015: nil) at a price of 39p per share. The consideration was £39,000 (30 June 2015: £nil, 31 December 2015: £nil) excluding stamp duty of £200 (30 June 2015: £nil, 31 December 2015: £nil).

There were no contingent assets or contingent liabilities in existence at 30 June 2016 (30 June 2015: £nil, 31 December 2015: £nil).

As required by Financial Reporting Standard 29 'Financial Instruments: Disclosures' (the Standard) an analysis of financial assets and liabilities, which identifies the risk of the Company's holding of such items is provided. The Standard requires an analysis of investments carried at fair value based on the reliability and significance of the information used to measure their fair value.

In order to provide further information on the valuation techniques used to measure assets carried at fair value, the measurement bases are categorised into a "fair value hierarchy" as follows:

- Quoted market prices in active markets - "Level 1"

Inputs to Level 1 fair values are quoted prices for identical asset in an active market. Quoted in an active market in this context means quoted prices are readily and regularly available and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted price is usually the current bid price. The Company's investments in AIM quoted equities, money market funds and the quoted Neptune funds are classified within this category.

- Valued using models with significant observable market inputs - "Level 2"

Inputs to Level 2 fair values are inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly. The Company has no investments classified within this category.

- Valued using models with significant unobservable market inputs - "Level 3"

Inputs to Level 3 fair values are unobservable inputs for the asset. Unobservable inputs may have been used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset at the measurement date (or market information for the inputs to any valuation models). As such, unobservable inputs reflect the assumptions the Company considers that market participants would use in pricing the asset. The Company's unquoted equities, preference shares and loan stock are classified within this category. As explained in note 1, unquoted investments are valued in accordance with the IPEVCA guidelines.

The Company's qualifying investments are managed by Calculus Capital Limited. John Glencross, a Director of the Company, has an interest in Calculus Capital Limited.

In the 6 months to 30 June 2016, Calculus Capital Limited waived all £43,276 of its fees and contributed a further £3,262 towards expenses. (30 June 2015 waived £24,121, 31 December 2015 waived £68.455).

The Company's qualifying investments are managed by Calculus Capital Limited. The investment management and administration fees paid to the Investment Manager are disclosed in note 10. John Glencross, a director of the Company, has an interest in Calculus Capital Limited and is a director of Terrain Energy Limited. Calculus Capital Limited receives annual fees from Terrain Energy Limited for the provision of John Glencross as a director, as well as annual monitoring fees. Other employees of Calculus Capital Limited are directors of Human Race Group, Solab Group Limited and Dryden Human Capital Group. Calculus Capital Limited receives annual fees from these companies for the provision of a director. Calculus Capital Limited receives an annual monitoring fee from Arcis Biotechnology Holdings Limited, MicroEnergy Generation Services Limited, Solab Group Limited and Human Race Group Limited. Other funds under the management or advice of Calculus Capital Limited have also invested in Terrain Energy Limited, Arcis Biotechnology Holdings Limited, MicroEnergy Generation Services Limited, Solab Group Limited, Human Race Group Limited and Dryden Human Capital Group Limited. In the six months to 30 June 2016, the amount payable to Calculus which was attributable to the investment made by the Company was £1,269 (30 June 2015: £1,339; 31 December 2015: £2,681) (excluding VAT) from Terrain Energy Limited; £155 (30 June 2015: £139; 31 December 2015: £954) (excluding VAT) from MicroEnergy Generation Services Limited; £1,536 (30 June 2015: £1,586; 31 December 2015: £3,178) (excluding VAT) from Human Race Group Limited; £39 (30 June 2015 £nil; 31 December 2015: £nil) from Arcis Biotechnology Holdings Limited; £817 (30 June 2015 £336; 31 December 2015: £829) from Solab Group Limited. Calculus Capital Limited also receives fees relating to a directorship for Dryden Human Capital Limited. In the six months to 30 June 2016, the amount payable to Calculus Capital Limited which was attributable to the investment made by the Company was £349 (30 June 2015: £610; 31 December 2015: £700) (excluding VAT) from Dryden Human Capital Limited. Calculus Capital Limited also received an arrangement fee from Arcis Biotechnology Holdings Limited. In the six months to 30 June 2016, the amount payable to Calculus Capital Limited which was attributable to the investment made by the Company was £1,934 (30 June 2015: £nil; 31 December 2015: £nil) (excluding VAT).

There are no post balance sheet events to report.

The Company is required to make the following disclosures in its Half-Yearly Report:

The Board regularly reviews the risks the business faces and their potential impact on the Company. The Company's principal risks are regulatory risk, market risk, credit risk, investment and liquidity risk. These risks are described in more detail in the strategic report in the Company's annual report and accounts for the year ended 31 December 2015.The Company's principal risks and uncertainties have not changed materially since the date of that report.

The Board receives regular reports from the Investment Manager and the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements as outlined in the Annual Report for the year ended 31 December 2015.

The half-yearly financial report, which has not been audited or reviewed by the Company's auditors is the responsibility of, and has been approved by, the Directors. The Directors confirm that to the best of their knowledge the half-yearly financial report, which has been prepared in accordance with the UK Listing Authority Disclosure and Transparency Rules ("DTR") and in accordance with the Financial reporting Council's Financial Reporting Standard 104:'Interim Financial reporting' gives a true and fair view of the assets, liabilities, financial position and the net return of the Company as at 30 June 2016.

The Directors confirm that the Chairman's Statement, the Investment Manager's Review, the disclosures above and notes 10 and 11, include a fair review of the information required by DTR 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year, and DTR 4.2.8R.

The Directors of Neptune-Calculus Income and Growth VCT plc are:

Philip Stephens

John Glencross

David Kempton

By order of the Board

Philip Stephens

Chairman

19 August 2016

The half yearly report will shortly be posted to shareholders. Copies of the report will also be available from the Company's registered office at 104 Park Street, London, W1K 6NF or from the Qualifying Investment Manager's website at: http://www.calculuscapital.com/neptune-income-growth-vct/