TIDMBSC
RNS Number : 9414Q
British Smaller Companies VCT2 Plc
24 June 2020
British Smaller Companies VCT2 plc
Interim Management Statement
For the quarter ended 31 March 2020
British Smaller Companies VCT2 plc (the "Company") presents its
interim management statement for the quarter ended 31 March 2020.
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's Total Return at 31 March 2020 was 114.9 pence per
ordinary share, representing an increase of 0.3 pence per ordinary
share over the Total Return of 114.6 pence per ordinary share
announced on 25 March 2020.
As previously reported, on 10 March 2020 the Company realised
its investment in Business Collaborator Limited for GBP5.1 million,
compared to a valuation of GBP3.5 million at 31 December 2019. The
realised gain of GBP1.6 million has been included in the Total
Return announced today.
Performance
The movement in Total Return in pence per ordinary share is set
out in the table below:
Pence per
ordinary share
Cumulative dividends to 31 December 2019 66.5
Net Asset Value ("NAV") at 31 December 2019 55.2
--------
Total Return at 31 December 2019 121.7
Net underlying movement in portfolio (6.5)
Net result after expenses / share buy-backs (0.3)
--------
Decrease in Total Return (6.8)
------------------------------------------------------------------ -------- --------
Total Return at 31 March 2020 114.9
--------------------------------------------------- ------------ -------- --------
31 March 2020 Movement 31 December
2019
Net Assets (GBPm) 62.8 (9.5) 72.3
-------------- ------------ ------------
NAV per share (PPS) 48.4p (6.8p) 55.2p
-------------- ------------ ------------
Cumulative dividends paid
(PPS) 66.5p - 66.5p
-------------- ------------ ------------
Total Return (PPS) 114.9p (6.8p) 121.7p
-------------- ------------ ------------
Shares in issue 129,883,515 (1,217,031) 131,100,546
-------------- ------------ ------------
The Total Return at 31 March 2020, calculated by reference to
the NAV per ordinary share and the cumulative dividends paid per
ordinary share, was 114.9 pence per ordinary share compared to
121.7 pence per ordinary share at 31 December 2019.
The unaudited NAV per ordinary share as at 31 March 2020 was
48.4 pence per ordinary share (31 December 2019: 55.2 pence per
ordinary share) representing a decrease of 6.8 pence per ordinary
share from the portfolio/net income.
Cumulative dividends paid were unchanged at 66.5 pence per
ordinary share (31 December 2019: 66.5 pence per ordinary
share).
The movement in NAV per ordinary share are set out in the table
below:
GBPm Pence per
ordinary share
NAV at 31 December 2019 72.3 55.2
Net underlying movement in portfolio (8.5) (6.5)
Net income after expenses (0.4) (0.3)
Shares buybacks (0.6) -
Increase (9.5) (6.8)
NAV at 31 March 2020 62.8 48.4
------ ------ --------
Dividends and shares in issue
On 2o March 2020 the Company purchased 1,217,031 ordinary shares
of 10 pence each at a price of 52.44 pence per ordinary share.
These shares were placed in treasury.
The number of ordinary shares in issue at 31 March 2020 was
129,883,515 (31 December 2019: 131,100,546). In addition, at 31
March 2020 the Company held 10,526,123 ordinary shares in treasury
(31 December 2019: 9,309,092).
An interim dividend of 2.0 pence per ordinary share was paid on
12 May 2020, taking cumulative dividends paid at that date to 68.5
pence per ordinary share.
Dividend Reinvestment Scheme (DRIS) and share buybacks
The DRIS and buyback schemes were suspended in March due to the
severe market disruption. Since then there has been more clarity
over how the restrictions imposed in managing the coronavirus and
the various Government measures of support have been applied. As a
result, whilst there may still be caution over the general economic
conditions, this has resulted in some recovery and stability. As a
result the Directors have decided to reinstate the Company's DRIS
and buyback schemes as of the date of this announcement.
Net assets
Net assets at 31 March 2020 comprised the following:
% of net
GBP000 assets
Unquoted investments 34,681 55.2%
Cash and cash equivalents 27,777 44.2%
Other net current assets 356 0.6%
------- ---------
Net assets 62,814 100%
======= =========
The investment portfolio at 31 March 2020 comprised:
Valuation
as a %
Valuation of net
GBP000 assets
Matillion Limited 6,295 10.0%
ACC Aviation Group Limited 5,014 8.0%
Intelligent Office UK 2,711 4.3%
KeTech Enterprises Limited 2,197 3.5%
Unbiased EC1 Limited 2,022 3.2%
Elucidat Ltd 1,432 2.3%
Wooshii Limited 1,377 2.2%
Deep-Secure Ltd 1,300 2.1%
Springboard Research Holdings
Limited 1,251 2.0%
Arcus Global Limited 1,108 1.7%
24,707 39.3%
Other investments 9,974 15.9%
Total investments 34,681 55.2%
========== ==========
There were 3 follow-on investments totalling GBP0.3 million
during the quarter.
In the quarter to 31 March 2020 the realisation and repayment of
investments generated cash proceeds of GBP5.1 million.
Investments made prior to the November 2015 Budget represented
45 per cent of the value of the unquoted portfolio at 31 March
2020.
Portfolio performance
Over the quarter to 31 March 2020 the aggregate unrealised
portfolio valuation has decreased by GBP10.1 million as a result of
the impact of the coronavirus pandemic on public markets. The Board
continues to follow its policy of maintaining a diversified
portfolio. At 31 March 2020, only two investments represented more
than 5 per cent of the Company's NAV, the largest being 10.0 per
cent, with the top ten investments representing 39.3 per cent of
NAV (31 December 2019 42.5 per cent).
Board composition
The Board is currently recruiting a replacement for Robert
Pettigrew, a long serving director, who intends to stand down later
this year. The Board believe that new directors with new
approaches, balanced with a level of continuity, are good for
decision making within the Board.
Outlook
The coronavirus pandemic has caused a massive shock to the
global economy with activity curtailed and a lockdown imposed. The
Company is well funded and well placed to support its portfolio of
investments, albeit to date only there has been a small need for
additional funding. There continues to be demand for growth capital
and there is every likelihood this could increase as the
Government's intervention measures are withdrawn and again the
Company is ideally placed to provide support and to take advantage
of new opportunities.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU No. 596/2014). Upon the
publication of this announcement via Regulatory Information Service
this inside information is now considered to be in the public
domain.
24 June 2020
For further information please contact:
David Hall YFM Private Equity Limited Tel: 0113 244 1000
Alex Collins Panmure Gordon (UK) Limited Tel: 0207 886 2767
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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