Half Yearly 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 2015. The portfolio saw an increase in value over the period on a like-for-like basis and the Company paid 7p per share in dividends to shareholders. A special dividend of 5p per share was paid in March 2015 from the proceeds of the sale of Waterfall Services Limited received in December 2014 and the 2014 final dividend of 2 pence per share was paid In June 2015. After payment of these dividends net assets per Ordinary Share on 30 June 2015 were 46.6 pence per share compared with 51.6 pence per share as at 31 December 2014. The dividend payments took the total cumulative dividends paid on the Ordinary Shares since inception to 32.5 pence per share.

Our qualifying investments, which include both unquoted and AIM companies, are managed by Calculus. Over the period under review, the overall value the unquoted portfolio increased by 10 per cent during the period principally due to an increase in the value of Terrain Energy Limited ('Terrain'). The value of the quoted companies decreased on a like-for-like basis by approximately 2.4 per cent, compared with an Increase in the AIM market of 7.6 per cent mainly due to a fall in the share price of Epistem Holdings plc ('Epistem').

During the period the Company increased its holding of Hampshire Cosmetics Limited ('Hampshire') by subscribing for 5556 ordinary shares at a total cost of £10,000 and £140,000 qualifying loan stock acquired at par. It also made a £150,000 non qualifying loan stock investment in MicroEnergy Generation Services Limited ('MicroEnergy') to acquire additional installed turbines. The £135,000 secured short term loan facility made available to Hembuild Group Limited (previously called Lime Technology Limited) ('Hembuild Group') was repaid and a further £100,000 was received from redemptions of Hembuild Group loan stocks. 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 increased by 2.2 per cent on a like for like basis over the period. At 30 June 2015, the Company also held certain investments in portfolio companies which are non-qualifying and £3,000 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 July 2015, the Company received payment for all of its remaining loan facility to Triage Holdings Limited ('Triage') at its carrying value of approximately £64,000.

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 14 October 2015 to shareholders on the register on 18 September 2015.

There are signs of a strengthening economy and we believe the investments in the portfolio are well placed to benefit from improving conditions.

Philip Stephens

Chairman

13 August 2015

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

At 30 June 2015 the portfolio of qualifying investments comprised 12 companies made up of both AIM quoted and unquoted stocks. The Company continues to meet the requirements for approved VCT status.

At 30 June 2015, the value of the unquoted portfolio was £2.4m and increased by 10.0 per cent on a like for like basis principally due to an increase in the carrying value of Terrain during the period.

Terrain has interests in ten petroleum licences; Keddington; Kirklington; Dukes Wood; Burton on the Wolds in the East Midlands; Larne and P2123 in Northern Ireland; Brockham and Lidsey in the Weald Basin; and Egmating (formerly Bruckmuhl) and Starnberger See in Germany. Terrain is currently producing from wells at Keddington and Brockham and will produce from its recently acquired interest in the Lidsey oil field as soon as consent is received from the Secretary of State which is expected in August 2015.

Permission to drill has now been confirmed for an exploration well on the Larne licence, with the proposed drilling start date in October 2015. Work continues on Terrain's German licences where existing seismic and well data is being reprocessed and re-interpreted in order to identify the location of remaining conventional oil and gas reserves. This has been supplemented by a gravity survey which recently completed. The increase in valuation reflects the increased reserves due to the Lidsey acquisition and the reduction in risk of drilling at Larne.

MicroEnergy owns and operates a fleet of 168 small onshore wind turbines (

A further £150,000 of qualifying investments were made in Hampshire in June 2015 in the form of £140,000 loan stock and £10,000 in ordinary shares. Hampshire develops and manufactures a comprehensive range of products covering fragrances, body treatments, skincare and shampoos and has been focussing on diversifying its customer and product base, including creating own brands.

Hembuild Group has restructured its business. Its lime renders and mortars business which accounted for 16.6% of turnover was sold to The Lime Mortar and Render Company, a company in which funds managed by Calculus Capital have invested, and its external and internal wall insulation business has been closed. This allows the business to focus on the manufacturing of hemp-based prefabricated wall panels. A short term loan facilty of £135,000 made available to Hembuild Group has been repaid and a further £100,000 net has been received from the redemption of other long term loan stocks. The terms of the remaining loan stocks have been renegotiated.

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

At 30 June 2015, the value of the quoted portfolio was £550,000 and decreased by 2.4 per cent on a like for like basis compared with an increase in the AIM market of 7.7 per cent. This performance is principally due to a decrease in the share price of Epistem which is still valued at over twice initial cost.

The share price does not reflect the underlying progress of the company. Epistem is developing a handheld molecular diagnostic instrument, Genedrive for infectious diseases, which generates results in 30-60 minutes. Indian regulatory approval was received in April to distribute Genedrive in the Indian Market to diagnose tuberculosis (TB). India has the highest level of TB cases in the world with World Health Organisation (WHO) statistics for 2013 giving an estimated 2 million cases annually out of a global level of 9 million. Epistem won the British Venture Capital Association's North West regional award for innovation 2015.

The other quoted company in the portfolio is Infrastrata plc ("Infrastrata") is an independent petroleum exploration and gas storage company. The company has three key projects: exploration and gas storage in Northern Ireland, and exploration in Dorset. In June the company announced that drilling and data gathering operations had been concluded at the Islandmagee-1 well in Northern Ireland. and that the first phase of the 2015 work programme had confirmed expectations and been completed successfully.

The Company's holding of ordinary shares and preference shares in Triage were sold in July 2014 and £10,000 of its loan facility was repaid. The remaining loan facility was due to be repaid in two equal annual tranches in 2015 and 2016, but In July this year the whole remaining balance of approximately £64,000 was repaid.

There have been no other significant developments since the year end

John Glencross

Calculus Capital Limited

13 August 2015

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 £1,480.

† 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.

# The Triage Holdings Limited loan stock and the MicroEnergy Generation Services Limited loan stock are non-qualifying.

\* 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 2014. The statutory financial statements for the year ended 31 December 2014, 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 14 October 2015 to shareholders on the register on 18 September 2015.

Revenue return per Ordinary Share is based on the net deficit on ordinary activities attributable to the Ordinary Shares of £10,351 (30 June 2014: net deficit £33,000, 31 December 2014: net deficit £55,000) and on 11,311,329 (30 June 2014: 11,311,329, 31 December 2014: 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 return for the period of £235,560 (30 June 2014: net capital return £61,000, 31 December 2014: net capital return £746,000) and on 11,311,329 (30 June 2014: 11,311,329, 31 December 2014: 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 return on ordinary activities attributable to the Ordinary Shares of £225,209 (30 June 2014: net return £28,000, 31 December 2014: net return £691,000) and on 11,311,329 (30 June 2014: 11,311,329, 31 December 2014: 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 2014: £nil, 31 December 2014: £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 £5,271,000 (30 June 2014: £5,288,000, 31 December 2014: £5,838,000) and on 11,311,329 (30 June 2014: 11,311,329, 31 December 2014: 11,311,329) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the period.

During the period, the Company did not issue or purchase for cancellation any Ordinary Shares.

There were no contingent assets or contingent liabilities in existence at 30 June 2015 (30 June 2014: £nil, 31 December 2014: £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:

- Level A

Inputs to Level A fair values are quoted prices in active markets for identical assets. An active market is one in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The Company's investments in AIM quoted equities, money market funds and the quoted Neptune funds are classified within this category.

- Level B

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

- Level C

i) Fair value is measured using a valuation technique that is based on observable market and

ii) Fair value is measured using a valuation technique that is not based on data from an observable market

The Company's unquoted equities, preference shares and loan stocks are classified within this category. Unquoted investments are valued in accordance with IPEVCA guidelines.

The table below shows movements in the assets measured at fair value based on Level C-ii valuation techniques for which any significant input is not based on observable market data. During the year there were no transfers between levels A, B or Ci, Cii

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.

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. John Glencross was also a director of Hembuild Group Limited from 1st January 2014 to 31st October 2014, when he resigned from the Board. 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. Calculus Capital Limited also received a fee from Hembuild Group Limited for the provision of John Glencross as a director until 31st October 2014. Other employees of Calculus Capital Limited are directors of Human Race Group, Hampshire Cosmetics 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 Hembuild Group Limited, MicroEnergy Generation Services Limited, Hampshire Cosmetics Limited and Human Race Group Limited. Other funds under the management or advice of Calculus Capital Limited have also invested in Terrain Energy Limited, Hembuild Group Limited, MicroEnergy Generation Services Limited, Hampshire Cosmetics Limited, Human Race Group Limited and Dryden Human Capital Group Limited. In the six months to 30 June 2015, the amount payable to Calculus which was attributable to the investment made by the Company was £1,339 (30 June 2014: £1,250; 31 December 2014: £2,640) (excluding VAT) from Terrain Energy Limited; £83 (30 June 2014: £2,301; 31 December 2014: £5,780) (excluding VAT) from Hembuild Group Limited; £139 (30 June 2014: £179; 31 December 2014: £235) (excluding VAT) from MicroEnergy Generation Services Limited; £1,586 (30 June 2014: £1,682; 31 December 2014: £3,138) (excluding VAT) from Human Race Group Limited; £336 (30 June 2014 £367; 31 December 2014 £699) from Hampshire Cosmetics Limited. Calculus Capital Limited also receives fees relating to a directorship for Dryden Human Capital Limited. In the six months to 30 June 2015, the amount payable to Calculus Capital Limited which was attributable to the investment made by the Company was £610 (30 June 2014: £1514; 31 December 2014: £2,875) (excluding VAT) from Dryden Human Capital Limited.

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 2014.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 2014.

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 2015

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

13 August 2015

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/