TIDMBSC
RNS Number : 1993M
British Smaller Companies VCT2 Plc
21 August 2013
British Smaller Companies VCT 2 plc
Unaudited interim Results and Interim Management Report
For the 6 months ended 30 June 2013
British Smaller Companies VCT 2 plc ("the Company") today
announces its unaudited interim results for the six months to 30
June 2013.
Chairman's Statement
I am pleased to report a strong performance for your Company. In
the six months to 30 June 2013 the Company has seen an increase in
Net Asset Value of 3.5 per cent per ordinary share before the
payment of the 2.5 pence per ordinary share final dividend. This
growth was generated primarily from an increase in valuations
across the unquoted investment portfolio. In April 2013 the Company
completed a successful joint fundraising with British Smaller
Companies VCT plc, raising net proceeds of GBP3.3 million in the
six months to 30 June 2013 (GBP5.4 million since its launch in
November 2012).
Financial Results
In the six months since 31 December 2012 the Total Return,
calculated by reference to Net Asset Value plus cumulative
dividends, has increased by 2.3 pence per ordinary share.
The Net Asset Value per ordinary share grew by 2.3 pence to 67.8
pence in the last six months prior to the payment of the final
dividend of 2.5 pence per ordinary share, giving a net reduction in
the Net Asset Value per ordinary share of 0.2 pence, shown in the
table below.
Net Asset Value
Pence/Ordinary share
31 December 2012 65.5
Net increase in portfolio 2.4
Other decrease in value (0.2)
-----------
Net increase in value 2.2
Buy back of shares 0.1
Dividends paid in period (2.5)
30 June 2013 65.3
--------------------------------- ----------- ----------
The net gain on the investment portfolio was GBP1.10 million,
representing a 2.4 pence per ordinary share increase in Net Asset
Value, and an increase of 9.7 per cent on the opening December 2012
portfolio value of GBP11.4 million. This is made up of an 11.8 per
cent increase from the unquoted investments and a1.5 per cent
increase from quoted securities.
I am particularly pleased to note that, of the final dividend of
2.5 pence per ordinary share paid in June 2013, 15 per cent was
re-invested via The Company's Dividend Re-investment Scheme
Investment Portfolio
The Company currently has an active portfolio of 26 investments,
16 of which are unquoted and the remainder are quoted on AIM. At 30
June 2013 the investment portfolio had a value of GBP12.38 million
consisting of GBP10.35 million (83.6 per cent) in the unquoted
portfolio and GBP2.03 million (16.4 per cent) in the AIM
portfolio.
Good progress has been made across the portfolio with profit
growth despite the continued low growth economic environment. The
most significant movements in valuations were DisplayPlan Holdings
Limited (increase of GBP0.33 million), Bluebell Telecom Group
(increase of GBP0.19 million), Seven Technologies Holdings Limited
(increase GBP0.14 million), and Waterfall Services Limited
(increase of GBP0.12 million).
New Investments
In the 6 months to 30 June 2013 the Company has completed one
new investment and two follow on investments totalling GBP0.95
million. The details of which are set out below:
-- In May 2013 the Company invested GBP0.15 million as part of a
GBP5.0 million AIM market placing by AB Dynamics plc, a designer,
manufacturer and supplier of advanced testing and measurement
products to the global automotive industry.
-- In June 2013 a significant follow-on investment of GBP0.74
million was made into Seven Technologies Holdings Limited, a
manufacturer of specialist electronic and communication equipment,
as part of the funding package for its GBP7.0 million acquisition
of Datong plc, an international supplier of specialist
communication products.
-- In March 2013 GBP0.06 million was invested into existing
portfolio company PowerOasis Limited, a provider of power
management solutions to the mobile telecommunications sector, as
part of a GBP3.0 million funding round led by a strategic
investor.
Since 30 June 2013 an additional GBP0.58 million has been
invested, of which GBP0.38 million was invested to support the
refinancing and rollout of bakery and retail chain Bagel Nash Group
Limited, an existing portfolio company, with the remaining GBP0.2
million invested into existing AIM listed portfolio company
Hargreaves Services plc.
Disposal of Investments
During the six months to 30 June 2013 the Company received
proceeds from disposals, repayments of loans and deferred
consideration of GBP1.15 million which resulted in a small gain on
disposal of investments of GBP0.01 million.
The most significant contributor to this was a loan repayment of
GBP0.70 million as part of a refinancing package into Seven
Technologies Holdings Limited ahead of the purchase of Datong
plc.
The Company also realised three of its AIM investments over the
period; Tikit Group plc, May Gurney Integrated Services plc and
2Ergo Group plc, generating proceeds of GBP0.36 million, and a gain
over the 31 December 2012 valuation of GBP0.01 million.
Deferred consideration of GBP0.09 million in respect of the
trade sale of DXS Limited in 2009 was received. This brings the
total return from this investment to GBP2.73 million, representing
a multiple of 16.7x on capital invested.
Following 30 June 2013 the Company fully realised its investment
in healthcare software provider Digital Healthcare Limited via a
trade sale to Emis Group plc realising proceeds of GBP1.26 million,
an increase over the 30 June 2013 valuation of GBP0.24 million. The
Company also part realised its investment in Pressure Technologies
plc generating proceeds of GBP0.1 million.
Shareholder Relations
Dividends
Your Board remains committed to achieving the objective of a
constant and increasing dividend stream over time. Following the
2012 year end a dividend 2.5 pence was paid on 5 June 2013. This
commitment has been continued in these interim results and your
Board is pleased to announce an interim dividend of 2.0 pence per
ordinary share, to be paid on 27 September 2013 to shareholders on
the register at 30 August 2013.
Shareholder Workshops
Following the success of the Company's 18th Shareholder workshop
in February 2013, the Company is pleased to announce that its next
workshop will be held at The Central Hall, Westminster, London on
12 February 2014.
Fundraising
Following the joint offer for subscription with British Smaller
Companies VCT plc, published on 19 November 2012, your Board is
pleased to announce the offer was fully subscribed and raised a
total of GBP5.37 million net of costs. This leaves the Company well
placed to take advantage of the recent changes to UK legislation
which has increased the maximum amount VCT's are able to invest in
any one company to GBP5 million per year.
Outlook
The last six months have seen the continuation of the low
economic growth conditions of recent years. Despite this many of
the portfolio companies have delivered improved results building on
their performances of recent years.
The current pipeline of new investment opportunities remains
strong and has been increasing, although the timescales to convert
from opportunity to investment are significant. The changes in EU
restrictions on qualifying investments, which include increasing
the amount that can be invested into a business to GBP5 million in
any one year, should also lead to an increase in the volume and
scale of investment opportunities for the Company in the
future.
The Board continues to be of the opinion that the forthcoming
period will see many good investment opportunities, both for the
portfolio businesses and for new investments. It was with this in
mind that we increased the investment capacity of the Company and
we will consider reviewing the need to increase funds further as
the pipeline of investment opportunities is converted.
Principal Risks & Uncertainties
There has been no change to the principal risks and
uncertainties facing the Company since the publication of the
financial statements for the year ended 31 December 2012. In
summary, the principal risks are:
-- Economic;
-- Investment and strategic;
-- Loss of approval as a Venture Capital Trust;
-- Regulatory;
-- Reputational;
-- Operational;
-- Financial;
-- Market/Liquidity risk.
Full details of the principal risks can be found in the
financial statements for the year ended 31 December 2012 on pages
29 and 30, a copy of which is available at www.yfmep.com
Richard Last
Chairman
21 August 2013
Unaudited Statement of Comprehensive Income
For the 6 months ended 30 June 2013
Unaudited Unaudited
6 months ending 6 months ending 30
30 June 2013 June 2012
Notes Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Gain on disposal of investments - 9 9 - 76 76
Gains on investments held
at fair value - 1,097 1,097 - 876 876
Income 2 365 - 365 258 - 258
Administrative expenses:
---------- ---------- --------- ---------- ---------- ---------
Fund Management fee (68) (204) (272) (50) (150) (200)
Other expenses (168) - (168) (161) - (161)
---------- ---------- --------- ---------- ---------- ---------
(236) (204) (440) (211) (150) (361)
Profit before taxation 129 902 1,031 47 802 849
Taxation 3 - - - - - -
Profit for the period 129 902 1,031 47 802 849
--------------------------------- -------- ---------- ---------- --------- ---------- ---------- ---------
Total comprehensive income
for the period attributable
to equity Shareholders 129 902 1,031 47 802 849
--------------------------------- -------- ---------- ---------- --------- ---------- ---------- ---------
Basic and diluted earnings
per ordinary share 5 0.30p 2.06p 2.36p 0.13p 2.24p 2.37p
--------------------------------- -------- ---------- ---------- --------- ---------- ---------- ---------
The Total column of this statement represents the Company's
Statement of Comprehensive Income, prepared in accordance with
International Financial Reporting Standards as adopted by the
European Union. The supplementary Revenue and Capital columns are
prepared under the Statement of Recommended Practice 'Financial
Statements of Investment Trust Companies and Venture Capital
Trusts' ('SORP') 2009 published by the Association of Investment
Companies.
In May 2012 the Association of Investment Companies (AIC)
replaced the Total Expense Ratio (TER%) it publishes with the
"on-going charges percentage", calculated as the annual on-going
charges (excluding irrecoverable VAT, performance fees and trail
commission) over average undiluted Net Asset Value in the period.
As at 30 June 2013, this benchmark (annualised) is currently 2.7
per cent (30 June 2012: 2.8 per cent). No performance fees have
been paid in the current or previous period, and thus no adjusted
figure including such fees has been presented.
In order to provide Shareholders with comparable data to prior
periods and to assist understanding of the fund management
agreement in place the Company has chosen to also disclose the
TER%. This is calculated as the annual on-going charges (excluding
trail commission and irrecoverable VAT) over Total Net Assets as at
the relevant period end and is currently capped at 3.25 per cent,
whereby excess costs over this value are absorbed by the Fund
Manager. The annualised TER% as at 30 June 2013 is 2.6 per cent (30
June 2012: 2.5 per cent).
Unaudited Balance Sheet
As at 30 June 2013
Unaudited Unaudited Audited
6 months 6 months year
ended 30 ended ended
June 30 June 31 December
2013 2012 2012
Notes GBP000 GBP000 GBP000
Assets
Non-current assets
Investments 12,377 13,044 11,363
Fixed income government securities 901 918 912
------------------------------------ -------- ---------- ---------- -------------
Financial assets at fair value
through profit or loss 13,278 13,962 12,275
Trade and other receivables 108 68 198
------------------------------------ -------- ---------- ---------- -------------
13,386 14,030 12,473
Current assets
Trade and other receivables 114 315 423
Cash on fixed term deposit 3,500 - 7,048
Cash and cash equivalents 13,393 12,085 7,484
17,007 12,400 14,955
Liabilities
Current liabilities
Trade and other payables (135) (426) (276)
Net current assets 16,872 11,974 14,679
Net assets 30,258 26,004 27,152
------------------------------------ -------- ---------- ---------- -------------
Shareholders' equity
Share capital 4,800 3,942 4,271
Share premium account 4,835 12,993 14,806
Capital redemption reserve 88 88 88
Merger reserve 5,525 5,525 5,525
Other reserve 2 2 2
Capital reserve 285 2,120 3,154
Investment holding losses (2,149) (2,778) (4,919)
Special reserve 16,743 4,112 4,071
Revenue reserve 129 - 154
Total Shareholders' equity 30,258 26,004 27,152
------------------------------------ -------- ---------- ---------- -------------
Net Asset Value per ordinary
share 6 65.3p 68.0p 65.5p
------------------------------------ -------- ---------- ---------- -------------
Signed on behalf of the Board
Richard Last
Chairman
21 August 2013
Unaudited Statement of Changes in Equity
For the 6 months ended 30 June 2013
Investment
Share holding
Share premium Merger *Other gains Total
capital account reserve reserves Capital (losses) Special Revenue equity
reserve reserve reserve reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 31 December
2011 2,426 4,427 5,525 90 2,630 (3,665) 4,255 294 15,982
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Revenue return
for the
period - - - - - - - 47 47
Capital
expenses - - - - (150) - - - (150)
Investment
holding
loss on
investments
held at fair
value - - - - - 876 - - 876
Realisation of
investments
in
the period - - - - 76 - - - 76
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Total
comprehensive
income for
the
period - - - - (74) 876 - 47 849
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Issue of share
capital 1,514 9,149 - - - - - - 10,663
Issue of
Shares
- DRIS 2 11 - - - - - - 13
Issue costs - (594) - - - - - - (594)
Purchase of
own
shares - - - - - - (143) - (143)
Dividends - - - - (425) - - (341) (766)
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Total
transactions
with
shareholders 1,516 8,566 - - (425) - (143) (341) 9,173
Realisation of
prior year
investment
holding
losses - - - - (11) 11 - - -
At 30 June
2012 3,942 12,993 5,525 90 2,120 (2,778) 4,112 - 26,004
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Revenue return
for the
period - - - - - - - 107 107
Capital
expenses - - - - (192) - - - (192)
Investment
holding
gain on
investments
held at fair
value - - - - - (1,498) - - (1,498)
Gain on
disposal
of
investments
in the period - - - - 1,586 - - - 1,586
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Total
comprehensive
income for
the
period - - - - 1,394 (1,498) - 107 3
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Issue of share
capital 314 1,866 - - - - - - 2,180
Issue costs - (132) - - - - - - (132)
Purchase of
own
shares - - - - - - (41) - (41)
Issue of
Shares
- DRIS 15 79 - - - - - - 94
Dividends - - - - (1,003) - - 47 (956)
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Total
transactions
with
shareholders 329 1,813 - - (1,003) - (41) - 1,145
Realisation of
prior year
investment
holding gains - - - - 537 (537) - - -
Realisation of
negative
goodwill - - - - 106 (106) - - -
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
At 31 December
2012 4,271 14,806 5,525 90 3,154 (4,919) 4,071 154 27,152
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Unaudited Statement of Changes in Equity
For the 6 months ended 30 June 2013
Investment
Share holding
Share premium Merger *Other gains Total
capital account reserve reserves Capital (losses) Special Revenue equity
reserve reserve reserve reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 31 December
2012 4,271 14,806 5,525 90 3,154 (4,919) 4,071 154 27,152
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Revenue profit
for the
period - - - - - - - 129 129
Capital
expenses - - - - (204) - - - (204)
Investment
holding
gain on
investments
held at fair
value - - - - - 1,097 - - 1,097
Gain on
disposal
of
investments
in the period - - - - 9 - - - 9
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Total
comprehensive
income for
the
period - - - - (195) 1,097 - 129 1,031
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Issue of
ordinary
Share capital 504 2,964 - - - - - - 3,468
Issue of
Shares
- DRIS 25 130 - - - - - - 155
Issue costs of
ordinary
shares - (160) - - - - - - (160)
Purchase of
own
shares - - - - - - (224) - (224)
Dividends - - - - (1,001) - - (154) (1,155)
Cancellation
of
Share Premium - (12,905) - - - - 12,896 - (9)
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
Total
transactions
with
Shareholders 529 (9,971) - - (1,001) - (12,672) (154) 2,075
Realisation of
prior year
investment
holding
losses - - - - (1,673) 1,673 - - -
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
At 30 June
2013 4,800 4,835 5,525 90 285 (2,149) 16,743 129 30,258
--------------- --------- --------- --------- ---------- --------- ----------- --------- ---------- ---------
* Other reserves include the capital redemption reserve and
treasury reserve, which are non-distributable.
Statement of Cash Flows
For the 6 months ended 30 June 2013
Unaudited Unaudited Audited
6 months 6 months year
ended ended 30 ended
30 June June 31 December
2013 2012 2012
GBP000 GBP000 GBP000
Net cash inflow (outflow) from operating
activities 90 17 (354)
------------------------------------------------------------ -------------- ------------ --------------
Cash flows from investing activities
Purchase of financial assets at fair
value through profit or loss (954) (2,467) (4,867)
Proceeds from sale of financial assets at
fair value through profit or loss 1,062 1,238 5,239
Cash placed on fixed term deposit - - (7,048)
Cash maturing on fixed term deposit 3,548 - -
Deferred consideration 90 48 99
Net cash from (used in) investing
activities 3,746 (1,181) (6,577)
------------------------------------------------------------ -------------- ------------ --------------
Cash flows from financing activities
Issue of ordinary shares 3,412 10,663 12,743
Cost of ordinary shares (106) (594) (605)
Purchase of own shares (224) (143) (184)
Dividends paid (1,000) (753) (1,615)
Share Premium Cancellation costs (9) - -
Net cash from financing activities 2,073 9,173 10,339
------------------------------------------------------------ -------------- ------------ --------------
Net increase in cash and cash equivalents 5,909 8,009 3,408
Cash and cash equivalents at the
beginning of the period 7,484 4,076 4,076
Cash and cash equivalents at the
end of the period 13,393 12,085 7,484
------------------------------------------------------------ -------------- ------------ --------------
Notes to the Unaudited Financial Statements
1. General information, basis of preparation and principal accounting policies
These half year statements have been approved by the directors
whose names appear at note 8, each of whom has confirmed that to
the best of his knowledge:
-- The Interim Management Report includes a fair review of the
information required by rules 4.2.7 and 4.2.8 of the Disclosure
Rules and the Transparency Rules.
-- The half year statements have been prepared in accordance
with IAS 34 'Interim financial reporting' and the Disclosure and
Transparency Rules of the Financial Services Authority.
The half year statements are unaudited and have not been
reviewed by the auditors pursuant to the Auditing Practices Board
(APB) guidance on Review of Interim Financial Information. They do
not constitute full financial statements as defined in section 435
of the Companies Act 2006. The comparative figures for the year
ended 31 December 2012 do not constitute full financial statements
and have been extracted from the Company's financial statements for
the year ended 31 December 2012. Those accounts were reported upon
without qualification by the auditors and have been delivered to
the Registrar of Companies.
The accounting policies and methods of computation followed in
the half year statements are the same as those adopted in the
preparation of the audited financial statements for the year ended
31 December 2012.
The financial statements for the year ended 31 December 2012
were prepared in accordance with the International Financial
Reporting Standards (IFRSs) as adopted by the European Union and
those parts of the Companies Act 2006 applicable to companies
reporting under IFRS. Where guidance set out in the Statement of
Recommended Practice 'Financial Statements of Investment Trust
Companies and Venture Capital Trusts' issued by the Association of
Investment Companies in January 2009 ("SORP") is consistent with
the requirements of IFRS, the financial statements have been
prepared in compliance with the recommendations of the SORP.
Other standards and interpretations have been issued which will
be effective for future reporting periods but have not been adopted
early in these financial statements. These include the new
standards IFRS10, IFRS12 and IFRS13 in addition to amendments to
IFRS 1, IFRS 7, IFRS 9, IAS 1, IAS 19, IAS 27, IAS 28 and IAS 32. A
full impact assessment has not yet been completed in order to
assess whether these new standards will have a material impact on
the financial statements.
Going Concern: The directors have carefully considered the issue
of going concern and are satisfied that the Company has sufficient
resources to meet its obligations as they fall due for a period of
at least twelve months from the date these half year statements
were approved. As at 30 June 2013 the Company held cash balances,
investments in fixed income government securities and fixed term
deposits with a combined value of GBP17,794,000. Cash flow
projections show the Company has sufficient funds to meet both its
contracted expenditure and its discretionary cash outflows in the
form of share buy-backs and the dividend policy. The directors
therefore believe that it is appropriate to continue to apply the
going concern basis of accounting in preparing these half year
statements.
Notes to the Unaudited Financial Statements
2. Income
Unaudited Unaudited
6 months 6 months
ended ended
30 June 30 June
2013 2012
GBP000 GBP000
Income from investments
- Dividends from unquoted companies 28 3
- Dividends from AIM quoted companies 22 22
-------------------------------------------- ---------- ----------
50 25
- Interest on loans to unquoted companies 187 147
- Fixed interest Government securities 10 11
Income from investments held at fair value
through profit or loss 247 183
Interest on bank deposits 118 75
365 258
Notes to the Unaudited Financial Statements
3. Taxation
Unaudited 6 months Unaudited 6 months
ended 30 June 2013 ended 30 June 2012
Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Profit before taxation 129 902 1,031 47 802 849
-------------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Profit before taxation
multiplied by standard
small company rate of corporation
tax in UK of 20% (2012:
20%) 26 180 206 9 160 169
Effect of:
UK dividends received (10) - (10) (5) - (5)
Non taxable profits on
investments - (221) (221) - (200) (200)
Excess management expenses (16) 41 25 (4) 40 36
Tax (credit) / charge - - - - - -
The Company has no provided, or unprovided, deferred tax
liability in either year.
Deferred tax assets in respect of losses have not been
recognised as the directors do not currently believe that it is
probable that sufficient taxable profits will be available against
which the assets can be recovered.
Due to the Company's status as a venture capital trust, and the
continued intention to meet the conditions required to comply with
Chapter 3 Part 6 of the Income Tax Act 2007, the Company has not
provided deferred tax on any capital gains or losses arising on the
revaluation or realisation of investments.
Notes to the Unaudited Financial Statements
4. Dividends
Amounts recognised as distributions to equity holders in the
period:
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30 June 2013 30 June 2012 31 December 2012
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Final paid - 2.5p
per Ordinary share.
Paid 5 June 2013 154 1,001 1,155 - - - - - -
Final paid - 2.0p
per Ordinary share.
Paid 22 May 2012 - - - 341 425 766 294 472 766
Interim paid - 2.0p
per ordinary share.
Paid 26 October
2012 - - - - - - - 765 765
Special paid - 0.5p
per ordinary share.
Paid 26 October
2012 - - - - - - - 191 191
154 1,001 1,155 341 425 766 294 1,428 1,722
---------------------- --------- --------- --------- -------- --------- --------- --------- -------- --------
An interim dividend of 2.0 pence per ordinary share, amounting
to GBP927,000, is proposed. The dividend has not been recognised in
these half year financial statements as the obligation did not
exist at the balance sheet date.
5. Basic and Diluted Earnings per Ordinary Share
The basic and diluted earnings per ordinary share is based on
the profit after tax attributable to equity Shareholders of
GBP1,031,000 (30 June 2012: profit of GBP849,000) and 43,683,833
(30 June 2012: 35,885,606) ordinary shares being the weighted
average number of ordinary shares in issue during the period.
The basic and diluted revenue return per ordinary share is based
on the revenue profit attributable to equity Shareholders of
GBP129,000 (30 June 2012: GBP47,000) and 43,683,833 (30 June 2012:
35,885,606) ordinary shares being the weighted average number of
ordinary shares in issue during the period.
The basic and diluted capital return per ordinary share is based
on the capital profit attributable to equity Shareholders of
GBP902,000 (30 June 2012: profit of GBP802,000) and 43,683,833 (30
June 2012: 35,885,606) ordinary shares being the weighted average
number of ordinary shares in issue during the period.
During the period the Company allotted 254,976 new ordinary
shares in respect of its dividend re-investment scheme and
5,038,678 new ordinary shares under the joint offer for
subscription with British Smaller Companies VCT plc.
The Company has repurchased 379,961 of its own shares in the
period and these shares are held in treasury. The total of
1,632,722 treasury shares has been excluded in calculating the
weighted average number of ordinary shares during the period. The
Company has no securities that would have a dilutive effect and
hence basic and diluted earnings per ordinary Share are the
same.
6. Basic and Diluted Net Asset Value per Ordinary Share
The basic and diluted Net Asset Value per ordinary share is
calculated on attributable assets of GBP30,258,000 (30 June 2012
and 31 December 2012: GBP26,004,000 and GBP27,152,000 respectively)
and 46,371,537 (30 June 2012 and 31 December 2012: 38,243,718 and
41,457,844 respectively) ordinary shares in issue at 30 June
2013.
The 1,632,722 (30 June 2012: 1,178,356) treasury shares have
been excluded in calculating the number of ordinary shares in issue
at 30 June 2013. The Company has no securities that would have a
dilutive effect and hence basic and diluted Net Asset Value per
ordinary share are the same.
7. Total Return
Total Return per share is calculated on cumulative dividends
paid of 37.0 pence per ordinary share (30 June 2012: 32.0 pence per
ordinary share and 31 December 2012: 34.5 pence per ordinary share)
plus the Net Asset Value as calculated in note 6.
8. Directors
The directors of the Company are: Mr R Last, Mr R M Pettigrew,
and Mr P C Waller.
9. Related Parties
YFM Private Equity Limited ("the Manager") provides fund
management, secretarial and administrative services to the Company.
Under the management agreement, the Manager receives a fee of 2.5
per cent of the Net Asset Value of the Company up to GBP16 million,
1.5 per cent of Net Asset Value of the Company in excess of GBP16
million and up to GBP26.667 million and to 2.0 per cent in respect
of any Net Asset Value of the Company in excess of GBP26.667
million, calculated at half-yearly intervals as at 30 June and 31
December. The effective fee rate paid to the Fund manager for the
period 30 June 2013 is 1.8% of the Company's Net Asset Value as at
30 June 2013. Under the same agreement the Manager also provides
administrative and secretarial services to the Company for a fee of
GBP46,000 per annum as adjusted for changes in the Retail Price
Index. During the period the Company has incurred management fees
of GBP272,000 and secretarial fees of GBP29,000 payable to the
Manager.
Under the terms of the joint offer with British Smaller
Companies VCT plc launched on 16 November 2012 (which closed on 30
April 2013), the Manager was entitled to 5.5 per cent of gross
subscriptions (before any early investment incentive and
re-investment of intermediary commission) for all applications
received on or before 28 December 2012. After this date the Manager
was entitled to 5.5 per cent of gross subscriptions from execution
brokers and 3.5 per cent of gross subscriptions for applications
received directly from applicants or through intermediaries
offering financial advice. This amounted to GBP279,491 in total of
which GBP159,591 was received in the six months to 30 June
2013.
The Manager met all costs and expenses arising from these offers
out of these fees, including any early investment incentive and any
payment or re-investment of initial intermediary commissions
(excluding permissible trail commission, which will continue to be
met by the Company).
10. Other Information
Copies of the interim report can be obtained from the Company's
registered office: Saint Martins House, 210-212 Chapeltown Road,
Leeds, LS7 4HZ or from the Manager's website: www.yfmep.com.
11. Interim Dividend for the six months ended 30 June 2013
Further to the announcement of its interim results for the 6
months to 30 June 2013, the Company confirms that an interim
dividend of 2.0 pence per ordinary share ("Interim Dividend") will
be paid on 27 September 2013 to those Shareholders on the Company's
register at the close of business on 30 August 2013. The
ex-dividend date for the Interim Dividend will be 28 August
2013.
12. Dividend re-investment scheme ("DRIS")
The Company operates a dividend reinvestment scheme ("DRIS").
The latest date for receipt of DRIS elections so as to participate
in the DRIS in respect of the Interim Dividend is the close of
business on 13 September 2013.
For further information, please contact:
David Hall YFM Equity Partners Limited Tel: 0113 294 5039
Matthew Thomas Nplus 1 Singer Advisory LLP Tel: 0207 496
3000
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEMFEFFDSELA
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