Interim Management Statement
January 17 2012 - 12:45PM
UK Regulatory
TIDMFAMT
Framlington AIM VCT 2 PLC
Second interim management statement for the year ending 29 February 2012
To the members of Framlington AIM VCT 2 PLC
This is the Company's second interim management statement for the year ending
29 February 2012 and covers the period to 30 November 2011. This statement has
been produced to comply with the requirements of the Disclosure and
Transparency Rules issued by the UKLA and should not be relied upon by any
other party or for any other purpose.
Investment objective
The Company's investment objective is to achieve long term capital growth
primarily through investment in a diversified portfolio of qualifying companies
quoted on AIM. It is expected that realised capital gains, along with income,
will be returned to the shareholders, at the discretion of the Directors,
through the payment of dividends. The Investment Manager may also invest the
assets of the Company in companies traded on the PLUS Market trading facility
and in unquoted stocks, although this is not currently expected to be
significant.
The majority of the Company's investments will be in newly issued shares, as it
is a VCT requirement that 70% of the funds raised pursuant to the offer be
invested in new issues of shares that qualify as qualifying holdings within
three years of the share issue. The Company had to meet this requirement by 28
February 2009 and now has to comply on an ongoing basis.
Qualifying holdings are defined as holdings of shares or securities in unquoted
(including AIM and PLUS Market companies) whose purpose is to carry on a
qualifying trade wholly or mainly in the UK. Sectors that are excluded include
property, financial services and commodities. Companies must not be controlled
by the VCT or any other company. At the end of three years, up to 30% of a
VCT's assets can be invested in non-qualifying investments such as bank
deposits, gilts and fixed interest stock. At least 30% of the VCT's qualifying
holdings must be ordinary shares with no preferential rights. The remainder can
be in loans of at least five years' duration, or preference shares.
The size of companies in which the Company may invest is limited by the VCT
rules. Qualifying holdings, as defined above, must have gross assets of GBP15
million or less immediately prior to investment and GBP16 million or less
immediately after investment. Although the companies in which the Company
invests are small, the risk that this entails is mitigated by the
diversification of holdings which results from the requirement to invest 70% of
funds raised in qualifying holdings.
The maximum exposure to any one stock or group, other than another VCT, is 15%
of the Company's investments.
The Company's borrowings must be restricted to an amount which is less than 10%
of the Company's issued share capital and reserves.
Capital structure
The Company has one class of share capital: ordinary shares of 10 pence each.
The Company's issued share capital at the date of this announcement is
28,986,299 ordinary shares of 10 pence each.
Material events and transactions
During the three months to 30 November 2011, a further GBP475,000 was invested,
adding to existing holdings in a number of AIM quoted qualifying companies
which were raising additional capital to fund acquisitions or for working
capital purposes. These included 3D Diagnostic Imaging, Byotrol, Dillistone
Group, Photonstar LED, Porta Communications and Wheelsure Holdings. GBP410,000
was raised through the disposal of investments, mainly as a result of profit
taking in Craneware, which has been the Company's largest holding.
The Chairman stated in the half yearly report and accounts that the Board was
carrying out a review of its options in relation to the Company's operations,
with a view to improving the overall future prospects for shareholders. This
review has been progressing and the Board intends to make an announcement of
the outcome in the near future.
NAV and total assets at 30 November 2011
30 November 2011 31 August 2011 Decrease
%
Net asset value per share 41.32p 43.43p 4.9
(investments at bid value,
including current year revenue)
Net asset value per share 65.32p 67.43p 3.1
including cumulative dividends
paid to date
Net assets GBP12.0 million GBP12.6 million 4.8
Share price (mid market) 31.00p 31.00p -
At 30 November 2011, 95 % of the portfolio was invested in qualifying holdings.
The net asset value at 13 January 2012 was 38.93 pence per share.
Ten largest holdings at 30 November 2011
Value at % of net
30.11.11 assets
GBP000s at 30.11.11
Craneware PLC 1,112 9.3
London Italian Restaurants 6.5% 31/12/13 875 7.3
Locale Enterprises Ltd 665 5.5
EKF Diagnostics Hdgs PLC 560 4.7
Brulines Group PLC 522 4.4
AFC Energy PLC 461 3.8
Angle PLC 402 3.4
Instem Life Science PLC 380 3.2
Vertu Motors 347 2.9
Manroy PLC 342 2.9
Company information
Year end: 28 February
Results: Final results to 29 February 2012 announced June 2012
Interim results to 31 August 2012 announced October 2012
Dividend: Dividend payable August 2012
By order of the board
AXA Investment Managers UK Limited
Company Secretary to Framlington AIM VCT 2 PLC
17 January 2012
Further information on the Company, including the annual report and accounts
for the year ended 28 February 2011 and the interim report and accounts for the
six months ended 31 August 2011, is available from the Manager's website
www.axaframlington.com.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
END
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