TIDMBSC
RNS Number : 2214U
British Smaller Companies VCT2 Plc
21 November 2019
British Smaller Companies VCT2 plc
Interim Management Statement
For the quarter ended 30 September 2019
British Smaller Companies VCT2 plc (the "Company") presents its
interim management statement for the quarter ended 30 September
2019. 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 120.2 pence per ordinary share. This is
an increase of 1.8 pence per ordinary share and represents an
increase of 3.0 per cent over the Net Asset Value ("Nav") of 59.9
pence per share at the beginning of the financial year.
Realisation of Eikon
Subsequent to the period end your Company has part-realised its
investment in Eikon Holdco Limited which has resulted in a
valuation uplift of GBP2.0 million in the quarter to 30 September
2019. The Company has to date received proceeds of GBP2.0 million
out of a total value of GBP4.3 million. The balance comprises
deferred consideration, loan notes and a residual equity stake. The
terms of the deferred consideration are expected to result in
further receipts in the near term.
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 30 June 2019 65.0
Net Asset Value at 30 June 2019 53.4
--------
Total Return at 30 June 2019 118.4
Net underlying increase in portfolio 1.9
Net income after expenses / share buy-backs (0.1)
--------
Increase in Total Return 1.8
------------------------------------------------------------------ -------- --------
Total Return at 30 September 2019 120.2
--------------------------------------------------- ------------ -------- --------
30 September Movement 30 June 2019
2019
Net Assets (GBPm) 71.0 0.8 70.2
------------- --------- -------------
NAV per share (PPS) 53.7p 0.3p 53.4p
------------- --------- -------------
Cumulative dividends paid
(PPS) 66.5p 1.5p 65.0p
------------- --------- -------------
Total Return (PPS) 120.2p 1.8p 118.4p
------------- --------- -------------
Shares in issue 132,200,546 688,151 131,512,395
------------- --------- -------------
The Total Return at 30 September 2019, calculated by reference
to the NAV per ordinary share and the cumulative dividends paid per
ordinary share, was 120.2 pence per ordinary share compared to
118.4 pence per ordinary share at 30 June 2019.
The unaudited NAV per ordinary share as at 30 September 2019 was
53.7 pence per ordinary share (30 June 2019: 53.4 pence per
ordinary share) representing an increase of 1.8 pence per ordinary
share from the portfolio/net income, offset by the interim dividend
of 1.5 pence per share paid on 23 September 2019.
Cumulative dividends paid were up 1.5 pence per ordinary share
at 66.5 pence per ordinary share (30 June 2019: 65.0 pence per
ordinary share).
The movement in NAV per ordinary share and the dividends paid
are set out in the table below:
GBPm Pence per
ordinary share
NAV at 30 June 2019 70.2 53.4
Net underlying increase in portfolio 2.5 1.9
Net income after expenses (0.1) (0.1)
Issue of shares/buybacks 0.4 -
Increase 2.8 1.8
NAV before the payment of dividends 73.0 55.2
Dividends paid (2.0) (1.5)
-------------------------------------- ------ ------ -------- --------
NAV at 30 September 2019 71.0 53.7
-------------------------------------- ------ ------ -------- --------
Dividends and shares in issue
An interim dividend of 1.5 pence per ordinary share was paid on
23 September 2019. On the same date 923,151 ordinary shares were
issued under the Company's DRIS.
On 26 September 2019 the Company purchased 235,000 ordinary
shares of 10 pence each at a price of 49.81 pence per ordinary
share. These shares were placed in treasury.
The number of ordinary shares in issue at 30 September 2019 was
132,200,546 (30 June 2019: 131,512,395). In addition, at 30
September 2019 the Company held 8,209,092 ordinary shares in
treasury (30 June 2019: 7,974,092).
Net assets
Net assets at 30 September 2019 comprised the following:
% of net
GBP000 assets
Unquoted investments at
fair value 45,351 63.9%
Quoted investments at
bid price 226 0.3%
------- ---------
Total investments 45,577 64.2%
Cash and cash equivalents 24,322 34.3%
Other net current assets 1,067 1.5%
------- ---------
Net assets 70,966 100%
======= =========
The investment portfolio at 30 September 2019 was comprised as
follows:
Valuation
as a %
Valuation of net
GBP000 assets
ACC Aviation Group Limited 6,479 9.1%
Matillion Limited 5,489 7.7%
Eikon Holdco Limited 4,331 6.1%
Intelligent Office UK Limited 3,142 4.4%
Business Collaborator Limited 2,847 4.0%
KeTech Enterprises Limited 2,311 3.3%
Springboard Research Holdings
Limited 1,759 2.5%
Tonkotsu Limited 1,592 2.3%
Deep-Secure Limited 1,515 2.1%
Wooshii Limited 1,440 2.0%
30,905 43.5%
Other investments 14,672 20.7%
Total investments 45,577 64.2%
========== ==========
Although there were no investments during the quarter,
subsequent to the quarter end the Company invested GBP1.5 million
into SharpCloud Software Limited, which has developed an enterprise
software product that is a visualisation and collaboration tool for
large organisations and made a small further investment into Ncam
Technologies Limited.
In the quarter to 30 September 2019 the realisation and
repayment of investments generated cash proceeds of GBP0.7
million.
Investments made prior to the November 2015 Budget represented
53 per cent of the value of the unquoted portfolio at 30 September
2019.
Portfolio Performance
Over the quarter to 30 September 2019 the aggregate unrealised
portfolio valuation has increased by GBP2.5 million. The Board
continues to follow its policy of maintaining a diversified
portfolio. At 30 September 2019, only three investments represented
more than 5 per cent of the Company's NAV, the largest being 9.1
per cent, with the top ten investments representing 43.5 per cent
of NAV (30 June 2019 40.2 per cent).
Outlook
It is pleasing that Total Return has increased further in the
third quarter against a background of political change and economic
uncertainty. The portfolio businesses continue to invest and grow
and your Company will to continue to fund this as appropriate. The
level of investment enquiries remains strong and the speed of
conversion has been helped because of your Company's ability to
self-assure under HMRC's revised guidelines.
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.
21 November 2019
For further information please contact:
David Hall YFM Private Equity Limited Tel: 0113 244 1000
Robert Naylor Panmure Gordon (UK) Limited Tel: 0207 886 2768
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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