TIDMBSC
RNS Number : 4962X
British Smaller Companies VCT2 Plc
06 May 2016
British Smaller Companies VCT2 plc
Interim Management Statement
For the quarter ended 31 March 2016
British Smaller Companies VCT2 plc (the "Company") presents its
interim management statement for the quarter ended 31 March 2016.
The statement also includes relevant financial information between
the end of the quarter and the date of this statement. A copy of
this interim management statement can be found at
www.bscfunds.com.
Overview
The Company has continued to make good progress in the quarter
with total return rising to 111.6 pence per ordinary share. This is
an increase of 0.7 pence per ordinary share in the first three
months of the year; equivalent to 1.6% of the portfolio's value at
1 January 2016.
Improved profitability in a number of investments contributed to
a GBP0.6 million return from the portfolio in the quarter,
delivering a GBP0.8 million increase in NAV in the period including
the net income surplus of GBP0.2 million.
The new rules governing VCT investments came into force on 18
November 2015 and the Company is only pursuing those investments
that meet the new, more restrictive criteria. The publication of
guidance from HMRC is still awaited. In addition advanced assurance
for new investments is considerably slower than previously
experienced which in the short term is depressing the rate of
conversion of the pipeline into completed investments. It is hoped
that this is just a temporary situation as HMRC becomes familiar
with the working of the new rules.
Performance
31 March Movement 31 December
2016 2015
--------------------------- ----------- ---------- ------------
Net Assets (GBPm) 59.1 4.2 54.9
--------------------------- ----------- ---------- ------------
NAV per share (PPS) 63.6 0.7 62.9
--------------------------- ----------- ---------- ------------
Cumulative dividends paid
(PPS) 48.0 - 48.0
--------------------------- ----------- ---------- ------------
Total Return (PPS) 111.6 0.7 110.9
--------------------------- ----------- ---------- ------------
Shares in issue 92,871,920 5,609,345 87,262,575
--------------------------- ----------- ---------- ------------
The total return at 31 March 2016, calculated by reference to
the NAV per ordinary share and the cumulative dividends paid per
ordinary share, was 111.6 pence per ordinary share compared to
110.9 pence per ordinary share at 31 December 2015. Cumulative
dividends paid were unchanged at 48.0 pence per ordinary share (31
December 2015: 48.0 pence per ordinary share).
The unaudited NAV per ordinary share as at 31 March 2016 was
63.6 pence per ordinary share (31 December 2015: 62.9 pence per
ordinary share) representing a increase of 0.7 pence per ordinary
share. The increase in NAV per ordinary share is due to the net
upward movement in the overall portfolio valuation.
Dividends and shares in issue
The number of ordinary shares in issue at 31 March 2016 was
92,871,920 (31 December 2015: 87,262,575). In addition, at 31 March
2016 the Company held 2,202,367 ordinary shares in treasury (31
December 2015: 2,128,003).
On 14 January 2016 the Company issued 5,683,709 ordinary shares
of 10p each at offer prices of 63.00 pence and 64.50 pence per
ordinary share in relation to the Offer for Subscription dated 8
December 2015, raising net proceeds of GBP3.5 million.
On 24 March 2016 the Company purchased 74,364 ordinary shares of
10p each at a price of 56.86 pence per ordinary share. These shares
were placed in treasury.
Net assets
Net assets at 31 March 2016 comprised the following:
% of net
GBP000 assets
Unquoted investments at
fair value 33,534 56.8
Quoted investments at
bid price 2,451 4.1
------- ---------
Total investments 35,985 60.9
Cash and cash equivalents 21,923 37.1
Other net current assets 1,169 2.0
------- ---------
Net assets 59,077 100.0
======= =========
The investment portfolio at 31 March 2016 was comprised as
follows:
Valuation
as a %
Valuation of net
GBP000 assets
Intelligent Office 3,327 5.6
Mangar Health Limited 2,190 3.7
ACC Aviation 2,015 3.4
KeTech Enterprises Limited 2,000 3.4
DisplayPlan Holdings Limited 1,786 3.0
GTK (Holdco) Limited 1,754 3.0
Gill Marine Holdings Limited 1,749 3.0
Springboard Research Holdings
Limited 1,646 2.8
Immunobiology Limited 1,486 2.5
Business Collaborator Limited 1,352 2.3
19,305 32.7
Other investments 16,680 28.2
Total investments 35,985 60.9
========== ==========
During the quarter to 31 March 2016 the Company made one
follow-on investment of GBP0.2 million into Immunobiology
Limited.
In the quarter to 31 March 2016 the realisation and repayment of
investments generated cash proceeds of GBP1.3 million, including
the realisation of the investment in Callstream for GBP0.7 million
in line with its 31 December 2015 carrying value.
Portfolio Performance
Over the quarter to 31 March 2016 aggregate unrealised portfolio
valuations have increased by GBP0.5 million.
The Board continues to follow its policy of maintaining a
diversified portfolio. At 31 March 2016, only one investment
represented more than 5 per cent of the Company's NAV.
Investor Workshop
The next Investor Workshop will take place on 17 May 2016 and is
being held at the Conference Centre, The British Library, near
Kings Cross Station.
Outlook
The investment pipeline now contains a number of attractive
opportunities, and discussions are well advanced in a number of
cases. The Board expects the level of investment to build gradually
over the rest of the year as the impact of the operation of the new
rules becomes clearer.
6 May 2016
For further information please contact:
David Hall YFM Private Equity Limited Tel: 0113 244 1000
Gillian Martin Nplus1 Singer Advisory LLP Tel: 0207 496 3000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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