TIDMBSC
RNS Number : 5611X
British Smaller Companies VCT2 Plc
20 November 2014
British Smaller Companies VCT2 plc
Interim Management Statement
For the quarter ended 30 September 2014
& Change of Company Secretary
British Smaller Companies VCT2 plc (the "Company") presents its
interim management statement for the quarter ended 30 September
2014. The statement also includes relevant financial information
between the end of the quarter and the date of this statement. This
constitutes the Company's second interim management statement for
the financial year ending 31 December 2014. A copy of this interim
management statement can be found at www.bscfunds.com.
Performance
The total return at 30 September 2014, calculated by reference
to the net asset value (NAV) per ordinary share and the cumulative
dividends paid per ordinary share, was 104.8 pence per ordinary
share compared to 104.7 pence per ordinary share at 30 June 2014.
Cumulative dividends represent 41.5 pence per ordinary share (30
June 2014: 41.5 pence per ordinary share).
The unaudited NAV per ordinary share as at 30 September 2014 was
63.3 pence (30 June 2014: 63.2 pence per ordinary share)
representing an increase of 0.1 pence per ordinary share. The
increase in NAV per ordinary share is principally due to the net
upward movement in the overall portfolio valuation.
The number of ordinary shares in issue at 30 September 2014 was
62,269,837 (30 June 2014: 62,269,837). In addition, at 30 September
2014, the Company held 1,840,918 ordinary shares in treasury (30
June 2014: 1,840,918).
On 7 October 2014 the Company paid an interim dividend of 2.0
pence per ordinary share. Pursuant to its dividend re-investment
scheme and on the same date the Company issued 356,143 ordinary
shares at a price of 58.14 pence per ordinary share.
Net assets at 30 September 2014 comprised the following:
% of
GBP000 net assets
Unquoted investments
at fair value 20,362 51.69
Quoted investments
at bid price 2,217 5.63
Gilt investments - -
------- ------------
Total investments 22,579 57.32
------- ------------
Cash and cash equivalents 16,460 41.79
Cash on fixed term -
deposit -
Other net current
assets 350 0.89
------- ------------
Net assets 39,389 100.00
======= ============
The investment portfolio at 30 September 2014 was comprised as
follows:
Valuation
as a
Valuation % of
GBP000 net assets
DisplayPlan Holdings
Limited 2,053 5.21
Intelligent Office Holdings
Limited 1,956 4.97
Mangar Health Limited 1,843 4.68
Gill Marine Holdings
Limited 1,705 4.33
Harvey Jones Holdings
Limited 1,276 3.24
The Heritage Windows
Company Holdco Limited 1,268 3.22
GTK (UK) Limited 1,262 3.20
Immunobiology Limited 987 2.51
Waterfall Services Limited 948 2.40
Seven Technologies Holdings
Limited 935 2.37
---------- ------------
14,233 36.13
Other investments 8,346 21.19
Total investments 22,579 57.32
========== ============
During the quarter to 30 September 2014 the Company made two
investments totalling GBP2.07 million: one new investment of
GBP1.27 million into The Heritage Windows Company Holdco Limited (a
specialist manufacturer and supplier of slim line Aluminium
windows) and GBP0.8 million of follow-on investment into Harvey
Jones Limited.
Investment rates have continued to increase and since the end of
the quarter the Company has completed three new investments
totalling GBP2.6 million:
- GBP0.2 million into Gamma Communications plc - provider of integrated voice, data and mobile telecommunication services and applications to businesses across the UK;
- GBP1.2 million into Cambrian Park & Leisure Homes Ltd (via
the holding company DWFCO 8 Limited) - manufacturer of timber
holiday lodges for the UK holiday park market; and
- GBP1.2 million into Springboard Research Holdings Limited - a
leading provider of retail performance monitoring.
In addition a further four investments have been approved but
not yet completed, totalling GBP3.7 million taking the likely
investment activity in the final quarter of the year to GBP6.3
million.
- In the quarter to 30 September 2014 the realisation and
repayment of investments generated cash proceeds of GBP0.54
million
Portfolio Performance
Over the quarter to 30 September 2014 aggregate unrealised
portfolio valuations have remained stable.
The Board continues to follow its policy of maintaining a
diversified portfolio. At 30 September 2014, only one investment
represented more than 5 per cent of the Company's NAV.
Regulatory Changes
The EU State Aid Risk Capital Guidelines were updated in May
2014, and the UK Government will need to apply for renewal of State
Aid approval of the VCT scheme. Whilst it is expected that approval
will be renewed, the Board is closely watching developments to
ensure that the Company is adequately prepared for any potential
changes to the rules.
Fundraising
In the light of the continued strong demand for investment from
UK businesses the Company is seeking to increase its investment
capacity through the prospectus offers which were launched on 20
October 2014 alongside British Smaller Companies VCT plc, to raise
up to GBP30 million in aggregate. Early applications from existing
shareholders (or their spouses or civil partners) accepted on or
before 31 December 2014 will receive additional shares equivalent
to 1.00 per cent of the amount subscribed, whilst those received on
or before 28 March 2015 will receive 0.75 per cent. New investors
will receive 0.50 per cent for applications received on or before
28 March 2015.
Change of Company Secretary
The City Partnership (UK) Limited has been appointed as Company
Secretary to the Company with effect from 1 December 2014
Outlook
The Board believes that the current economic climate continues
to create investment opportunities to support management teams with
growth strategies or looking to lead management buy-outs. Good
progress continues to be delivered across the portfolio to position
businesses for growth and realise shareholder value. We continue to
see high levels of attractive investment opportunities from across
the UK regions, with GBP10.1 million invested since 31 December
2013 resulting in an increasingly diversified portfolio. Funds
raised under the recently announced prospectus offers will ensure
your Company continues to take advantage of these new
opportunities.
20 November 2014
For further information please contact:
David Hall YFM Private Equity Limited Tel: 0113 244 1000
Gillian Martin Nplus1 Singer Advisory LLP Tel: 020 7496 3000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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