TIDMOSEC TIDMOSEC
Octopus AIM VCT 2 plc
Final Results
14 February 2017
Octopus AIM VCT 2 plc, managed by Octopus Investments Limited, today
announces the final results for the year ended 30 November 2016.
These results were approved by the Board of Directors on 10 February
2017.
You may view the Annual Report in full at www.octopusinvestments.com in
due course. All other statutory information will also be found there.
Financial Summary
30 November 30 November
2016 2015
Net assets (GBP'000s) 63,005 52,317
Profit/(Loss) on ordinary activities for the year
after tax (GBP'000s) 3,184 4,047
Net asset value ("NAV") per share 80.6p 80.6p
Ordinary Dividends per share - paid in year 4.0p 4.0p
Special Dividend per share - paid in year - 2.0p
Final Dividend per share proposed* 2.0p 2.0p
Total Return** 5.0% 7.8%
* The proposed final dividend will, if approved by shareholders, be paid
on 28 April 2017 to shareholders on the register on 24 March 2017.
**Total return is calculated as (movement in NAV + dividends paid in the
period) divided by the NAV at the beginning of the period.
Chairman's Statement
Introduction
I would particularly like to welcome new shareholders who have joined
the share register and I do hope that I will see some of you at the AGM
on 20 April 2017.
The year to 30 November 2016 has not been quite the one we expected,
with both domestic and international developments taking investors by
surprise and causing some volatility. In the light of those events, the
resilience of the market generally has also been surprising and, while
my last annual statement was correct to comment on the potential for the
derating of smaller companies while volatile market conditions persisted,
it is encouraging to report that your Company has produced a positive
return, helped particularly by the progress made by many of the maturing
holdings in the portfolio.
Performance
The Net Asset Value on 30 November 2016 was 80.6p per share, which is in
line with the 80.6p reported last year. Adding back the 4.0p of
dividends paid in the year, to adjust the year end NAV to 84.6p, gives a
total return of 5.0%. In the same twelve months, the FTSE All Share
Index rose by 9.8%, the FTSE SmallCap (excluding investment companies)
Index by 7.9% and the FTSE AIM All Share Index by 12.8%, all on a total
return basis.
Last year I commented that positive performance contributions had come
from the more established companies in the portfolio, with many of the
smaller and yet to be profitable companies seeing their share prices
struggle. This year was similar in many ways, with positive
contributions to performance from many of the more mature companies in
the portfolio, supplemented by good contributions from some of the newer
and smaller companies which have begun to establish themselves in their
respective marketplaces. Craneware, Abcam, RWS and Quixant are examples
of more mature holdings, whilst Gear4music, DP Poland and Scientific
Digital Imaging are examples of the newer holdings.
What is quite clear is that the timetable for success, or even partial
success, is long. For example, since our first investment, DP Poland has
needed additional capital and made several alterations to its retail
format before achieving its initial success, and the consequent share
price increase of the last year. As ever this just goes to prove that it
is the determination of the management team that is crucial to making
any company a successful investment.
In the year under review AIM has raised GBP5.0 billion of new capital,
fulfilling its purpose of providing additional growth capital for its
members.
New VCT Regulations
It is a little over a year now since the latest VCT regulations began to
take effect. With the publication of guidance notes by HMRC more
recently the new structure of the market is starting to take effect and
our Managers are acclimatising to the new environment. At this stage
there has been little impact on the portfolio itself and no need to
change investment policies. That is a situation that may change in the
future, but any change is much more likely to be evolutionary rather
than immediately dramatic. At present there are signs of a developing
trend towards investing in smaller and earlier stage companies which fit
the HMRC regulations. These may take a few years to contribute
meaningfully to performance, not least because the companies will
invariable require additional capital.
Making follow-on investments has proved difficult on occasions and is
one concern for the sector as a whole, which needs to be addressed by
the authorities, since the inability to support existing investments
seems to invalidate much of the purpose of VCTs and to undermine the
potential for growth in the UK economy.
Dividends
The Board has a policy of providing shareholders with a yield of 5%,
subject to a minimum payment of 3.6p per year. In September an interim
dividend of 2.0p was paid to all shareholders. The Board is recommending
a final dividend in respect of the year to 30 November 2016 of 2.0p per
share, making 4.0p in total. This is in line with the yield objective.
Subject to the approval of shareholders at the AGM the dividend will be
paid on 28 April 2017 to shareholders on the register on 24 March 2017.
Dividend Reinvestment Scheme
In common with a number of other VCTs in the industry, your Company has
established a Dividend Reinvestment Scheme (DRIS) following approval at
the AGM in 2014. Some shareholders have already taken advantage of this
opportunity. For investors who do not need income, but value the
additional tax relief on their reinvested dividends, this is an
attractive scheme and I hope that more shareholders will find it useful.
In the course of the year 395,968 new shares have been issued under this
scheme, returning GBP0.3 million to the Company. The dividend referred
to above will be eligible for the DRIS.
Share Buybacks
During the year to 30 November 2016 your Company continued to buy back
shares in the market from selling shareholders and purchased 1,888,104
ordinary shares for a total consideration of GBP1,401,000. We have
maintained a discount of approximately 4.5% (equating to a 5.0% discount
to the selling shareholder after costs), which your Board monitors and
intends to retain as a policy which fairly balances the interests of
both remaining and selling shareholders. Buybacks remain an essential
practice for VCTs as providing a means of selling is an important part
of the initial investment decision and has enabled your Company to grow.
As such therefore I hope you will all support the appropriate resolution
at the AGM.
Share Issues
A prospectus was issued on 21 December 2015 and the final issue of
shares under that prospectus was made in October 2016, raising a total
of GBP11.5 million after costs in the year. This brings the total
proceeds from share issues, including the DRIS, to GBP11.8 million. The
Board has announced a Top-Up offer to raise up to a further GBP4.3
million. This small issue allows existing investors a new chance to
invest and does not need a prospectus.
Risks and Uncertainties
In accordance with the Listing Rules and the Companies Act 2006 under
which your Company operates, your Board has to comment on potential
risks and uncertainties, which could have a material impact on the
Company's performance. A risk arises from the requirement to maintain
compliance with HMRC regulations requiring 70% of your Company's assets
to be invested in qualifying holdings. Other risks include economic
conditions, which impact particularly on smaller companies in which your
Company invests, and this could have an adverse impact on share prices.
VCT Status
PricewaterthouseCoopers LLP provides your Board and Investment Manager
with advice concern continuing compliance with HMRC regulations for
VCTs. Your Board has been advised that the Company is in compliance with
the conditions laid down by HMRC for maintaining approval as a VCT. A
key requirement is to maintain at least 70% qualifying investment level.
As at 30 November 2016 over 85% of the portfolio, as measured by HMRC
regulations, was invested in qualifying investments.
Annual General Meeting
The Annual General Meeting will be held on 20 April 2017. I very much
hope that you will be able to come. After the formal business, our
Investment Managers will make a presentation and there will, of course,
be a chance for you to ask questions. At the Annual General Meeting, a
resolution will be proposed to extend the life of the Company until 2022
in order to preserve the VCT status of the Company for the benefit of
both existing shareholders and new investors participating in the
current share offer.
Outlook
The market extended its year end rally to reach new highs in the middle
of January, helped by some upward revisions of growth statistics which
have allayed some of the fears about the early effects of the Referendum
result on the economy. However, uncertainty continues to be the
dominant theme, with the lack of clarity regarding the terms of our exit
from the EU and a new President entering the White House both likely to
impact market sentiment as the year unfolds.
The portfolio now contains 69 holdings across a range of sectors and
many of them have already demonstrated their management's ability to
grow their businesses successfully in difficult economic conditions.
The balance of the portfolio towards profitable companies remains, and
the cash available for new investments will allow us to take advantage
of any future weakness in valuations should it occur. With the VCT over
85% invested in qualifying companies for HMRC purposes your Manager can
afford to be selective about new investments.
Keith Mullins
Chairman
10 February 2017
Investment Manager's Review
Introduction
In a year, in which some significant economic and political events have
taken markets by surprise, the expectation that volatility would follow
as a consequence has been confounded by a stronger market, particularly
towards the end of the year to 30 November 2016. Although larger
companies, as measured by the FTSE 100 Share Index have, on balance,
performed in absolute terms a little better than smaller companies, all
indices have risen. Large companies with overseas earnings had a
particularly strong period of performance post the Referendum in June as
Sterling fell and the oil price began to recover. There have been some
notable contributors to the portfolio, both positive and negative, but
we are pleased to report a resilient NAV performance and the maintenance
of the 5% yield objective.
The year to 30 November 2016 has continued to see AIM raise new capital
for companies, both already quoted and new flotations, and your Company
has invested steadily throughout the year as well as raising new capital
for future investments. The prospectus offer closed in October 2016 and
we have recently announced a 'Top-Up offer of up to GBP4.3 million to
give existing and new shareholders a chance to invest in the current tax
year. Early in the new year we expect to see a number of VCT qualfifying
investment opportunities, which have chosen to postpone their
fundraising from December.
The Alternative Investment Market
Despite some volatility in the first half, the FTSE AIM All-Share Index
was little changed in that period. However, in the second six months
the index rose markedly, helped by a resurgence in resource and oil
stocks. Share trading volumes also picked up helped by a sense of
stability if not outright confidence, despite the result of the
Referendum to leave the EU, and by smaller companies continuing to be
seen as an attractive asset class. In addition, September saw a
reasonable results season confirming that for many smaller companies the
economy remained supportive. Against that background the number of AIM
companies has shrunk further, to 993 at 30 November 2016, compared to
1,049 a year earlier. However, we believe that the quality has continued
to rise and see nothing fundamentally wrong with AIM just because it has
fewer companies on the market. New issues in the last twelve months
include such names as Joules, the clothing manufacturer and retailer,
and Hotel Chocolat, the chocolatier. AIM is certainly not a second class
market, but is still best described as a collection of smaller growth
companies.
Those companies have continued to raise new capital throughout the year.
In the twelve months to 30 November 2016 AIM raised a further GBP3.6
billion of new capital for existing companies and a total of GBP1.4
billion for new companies floating on the market. Although the level of
fundraising for existing companies was lower than last year, these
figures show conclusively that AIM remains open for the funding of good
growth companies and continues to attract new entrants. VCTs play a
significant part in that funding process and we identify below the
companies we have invested in during the second half of the year.
Performance
Adding back dividends paid in the year to show the total return, the
Net Asset Value increased in the year by exactly the same amount as the
dividends paid out, giving a total return of 5.0%, a progression on the
0.6% achieved in the first half. This compares with a total return for
the FTSE Smallcap Index of 7.9% and for AIM of 12.8%, and the FTSE All
Share Index of 9.8%. Individual months in the year under review saw
share prices suffering significant bouts of volatility and the market
has generally remained wary of smaller companies that have yet to make a
profit although more established companies outperforming expectations
have been well rewarded by rising prices.
Within the portfolio there was once again a good contribution from the
more established and already profitable companies which includes many of
the individual non-qualifying holdings such as RWS, Abcam, Next Fifteen
and Gooch and Housego. However, the polarisation we talked about in the
interim statement persisted with companies deemed to be exposed to the
'Brexit effect' such as Staffline and Vertu Motors continuing to
underperform despite producing decent figures and encouraging trading
statements. In addition Tasty's exposure to rising costs caused it to
re-evaluate some of its new opening pipeline and raise extra funds to
reduce its debt financing, all of which caused its shares to
underperform. We do not share the market's current pessimism about
these companies which have been held in the portfolio for a number of
years and where the management teams have successfully grown in
challenging economic conditions in the past. We believe that their share
prices will recover as they deliver on their growth plans.
Elsewhere, underperformance came from the earlier stage companies in the
portfolio, particularly those that had setbacks or showed themselves in
need of further cash to reach profitability. Nektan, Oxford
Pharmascience and Microsaic all performed very badly in the year.
Nektan has raised money post the period end and Microsaic had a
fundraising where we made a further investment to support the new
management team who believe they now have a product that they can sell.
Oxford Pharmascience is trading at around the GBP22m value of cash in
the balance sheet reflecting disappointment that it has so far failed to
negotiate a licensing deal for its taste masking technology for NSAIDS.
The other poor performers were TLA where the bid and move to Nasdaq that
had boosted the shares in the first half of the year went away and
Escher which underwent significant changes to its board.
There were several corporate developments. Breedon completed the
acquisition of Hope, doubling the size of the business and giving it a
much prized cement railhead into London, supporting another year of good
share price performance. GB Group also made an important acquisition in
scanning technology although its shares suffered a setback on the news
that revenue growth would be affected by the slow roll-out of a UK
Government contract. The shares have since recovered most of their
losses reflecting appreciation of the strength of the Group's growth
opportunities as remote identity checking becomes more important.
Ergomed raised money and acquired another pharmacovigilance business in
a very earnings enhancing deal which was much better received by the
market than its earlier acquisition of Haemostatix, and the shares have
started to recover. Midatech also reacted well to news of a GBP10m
fundraising which should finanace the business to profitability. Idox,
EKF and Animalcare were all positive contributors to performance after
their core businesses started to show growth after a period of
consolidation. In EKF's case this was after the business was pared back
to its core and re-focussed under the direction of the new Chairman.
Several shares performed particularly well as the underlying businesses
demonstrated that they were delivering on, or ahead of, their plans at
the time that we invested. Gear4music is now a profitable business with
a third of its revenues coming from Europe and growing at more than 50%
in the current year. DP Poland has also finally demonstrated that the
Domino's model works in Poland and is now signing up sub-franchisees for
new sites. Quixant has also increased its customer base and has had
several upgrades to its forecasts this year, making it the biggest
positive contributor to the fund's performance this year. Craneware has
also re-established its growth credentials although it has had more of a
roller-coaster performance as it outperformed on the back of weak
sterling before underperforming on fears over changes to the US
healthcare market under Trump.
The non-qualifying element of the equity portfolio also did well in the
year as our existing strategy of investing in larger more liquid,
profitable companies to counterbalance new earlier stage qualifying
holdings continued to pay off. We have now supplemented these with
holdings in Octopus Portfolio Manager and the FP Octopus Micro Cap
Growth funds to manage liquidity while cash is awaiting investment.
Portfolio Activity
Having made two new qualifying investments in the first half of the year,
we added three further new qualifying holdings at a cost of GBP0.66m as
well as one further qualifying investment of GBP0.34 million into Futura
Medical, an existing holding, in the second half. This made a total
investment of GBP1.96 million in qualifying investments in the year
which was considerably lower than last years GBP4.78 million reflecting
slightly lower levels of fundraising activity on AIM and the short term
effects of digesting the new rules. Of the three new qualifying
investments, two were new issues. LoopUp is a telephone and web
conferencing operator with an easy to use system with more functionality
than many market competitors. It is growing rapidly, and although not
profitable at the time of float, it made an interim profit and is
expected to be so for the year to December. FreeAgent is a supplier of
cloud based accounting software sold as a service to enable small
businesses to file their tax returns on line or via mobile. It is
expected to be profitable for the year to March 2019.
There were no major sales in the year although we took the opportunity
to dispose of some of the smaller holdings that were not contributing to
performance, mostly at a loss. The largest sale was Vianet where the
market for its beer monitoring device continues to be difficult and the
holdings in Lombard Medical and Altitude Group were also sold. In all
disposals raised GBP1.2 million in cash.
New VCT Regulations
Almost coinciding with the last year end the Summer Budget of 2015
received the Royal Assent and with guidelines published by HMRC at about
the same time as the interim results in May 2016, it has been a period
of assimilating the consequences of the new regulations. We do not
believe that there needs to be any material change to our investment
approach. We are determined to maintain a threshold of quality and to
invest where we see returns from growth. However, the emphasis of the
new regulations is definitely to encourage investment into earlier stage
companies and to that extent, it seems likely over a number of years,
that the portfolio will see a rise in the number of smaller companies
receiving our initial investment. We would expect to invest further in
those companies as they grow and would certainly seek to reduce the risk
in those initial investments by not investing as much as perhaps we
might have done a year or two ago, when quite possibly our investment
would have been on the last occasion that a VCT could invest.
At present there has been little change to the portfolio, as we continue
to hold the larger market capitalisation companies, in which we invested
several years ago as qualifying companies, or which we bought in the
market prior to the rule changes.
To summarise the changes, in order to qualify companies must:
-- have fewer than 250 full time equivalent employees; and
-- have less than GBP15 million of gross assets at the time of investment
and no more than
-- GBP16 million immediately post investment; and
-- be less than seven years old from the date of its first commercial sale
(or 10 years if a knowledge intensive company) if raising State Aided (ie
VCT) funds for the first time; and
-- have raised no more than GBP5 million of State Aided funds in the
previous 12 months and less than the lifetime limit of GBP12 million (or
GBP20 million if a knowledge intensive company); and
-- produce a business plan to show that its funds are being raised for
growth and development.
Although there is a longer period and higher funding limit allowed for
knowledge intensive companies, it seems quite likely that a new funding
gap will open up for smaller companies that hit their funding limit, but
which are still in a development phase. This would particularly affect
a company that has failed for whatever reason to qualify as a knowledge
intensive one. It is also possible that capital intensive companies,
which potentially form a key part of the new government's industrial
strategy, will face a funding chasm as VCTs will not be able to follow
on with further investment and the companies may be too small to attract
investment from more conventional and larger institutional investors.
Accessing funds from the general public may also prove difficult since
crowd funding seems reliant on tax breaks, which would not apply. This
financing issue is probably a long way down any government department's
list of priorities, but it is to be hoped that the funding gap fails to
materialise for any of our holdings. One of our major and consistent
reasons for refusing to invest is the belief that a company is not
raising enough capital at a particular time. We will persist with that
criterion.
Outlook
Markets have enjoyed a surprisingly strong finish to 2016, buoyed by
better than expected economic growth figures and a sense of relief that
the immediate disaster predicted by those opposing the decision to exit
the European Union has not materialised. However, political and
macro-economic issues remain and newspaper headlines are still dominated
by speculation about Brexit's likely depressing effect on our economy in
the medium term as well as the shape of our eventual relationship with
Europe and the rest of the world. These questions are unlikely to be
settled quickly and it seems therefore that investors have to be
prepared for continued bouts of uncertainty and volatility. However, the
majority of news from the portfolio has continued to be encouraging in
the run up to the end of 2016.
The portfolio now contains 69 holdings with investments across a range
of sectors including several such as Craneware, Gooch and Housego,
Gear4music, Clinigen, Cello, DP Poland and GB Group that have
significant international exposure. Domestic companies such as Breedon,
Vertu and Staffline have already demonstrated their management's ability
to grow their businesses successfully in difficult economic conditions
and the latter two should see scope for share price recovery if they
continue to meet market expectations. The balance of the portfolio
towards profitable companies remains, with several expected to start
paying dividends in 2017. A top-up fundraising for GBP4.3 million will
add to the funds available for new investments and allow us to take
advantage of any dip in valuations should sentiment weaken in the
future. We remain selective when viewing new investment opportunities.
The AIM Team
Octopus Investments Limited
10 February 2017
Directors' Responsibility Statement
The Directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for
each financial year. Under that law the Directors have elected to
prepare the financial statements in accordance with the Financial
Reporting Standard applicable in the United Kingdom and Republic of
Ireland ("FRS 102"). Under company law the Directors must not approve
the financial statements unless they are satisfied that they give a true
and fair view of the state of affairs of the Company and of the profit
or loss of the Company for that period.
In preparing these financial statements the Directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgments and accounting estimates that are reasonable and prudent;
-- state whether applicable UK accounting standards have been followed,
subject to any material departures disclosed and explained in the
financial statements; and
-- prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business;
-- prepare a strategic report, a Directors' report and Directors'
remuneration report which comply with the requirements of the Companies
Act 2006.
The Directors are responsible for keeping adequate accounting records
that are sufficient to show and explain the Company's transactions, to
disclose with reasonable accuracy at any time the financial position of
the Company and to enable them to ensure that the financial statements
comply with the Companies Act 2006. They are also responsible for
safeguarding the assets of the Company and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
The Directors are responsible for ensuring that the Annual Report and
accounts, taken as a whole, are fair, balanced, and understandable and
provides the information necessary for shareholders to assess the
group's performance, business model and strategy.
The Directors are responsible for ensuring the Annual Report and the
financial statements are made available on a website. Financial
statements are published on the company's website in accordance with
legislation in the United Kingdom governing the preparation and
dissemination of financial statements, which may vary from legislation
in other jurisdictions. The maintenance and integrity of the company's
website is the responsibility of the Directors. The Directors'
responsibility also extends to the ongoing integrity of the financial
statements contained therein.
Directors' responsibilities pursuant to DTR4
The Directors confirm to the best of their knowledge:
-- the financial statements, prepared in accordance with the Financial
Reporting Standard applicable in the United Kingdom and Republic of
Ireland ("FRS 102"), give a true and fair view of the assets, liabilities,
financial position and profit and loss of the Company; and
-- the Annual Report includes a fair review of the development and
performance of the business and the financial position of the Company,
together with a description or the principal risks and uncertainties that
it faces.
On Behalf of the Board
Keith Mullins
Chairman
10 February 2017
Income Statement
Year to 30 November 2016 Year to 30 November 2015
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gain on disposal
of fixed asset
investments - 300 300 - 172 172
Gain on valuation
of fixed asset
investments - 3,389 3,389 - 4,555 4,555
Gain on valuation
of current asset
investments - 174 174 - - -
Investment Income 597 - 597 547 - 547
Investment
management fees (225) (676) (901) (230) (689) (919)
Other expenses (375) - (375) (308) - (308)
Return on ordinary
activities before
tax (3) 3,187 3,184 9 4,038 4,047
Taxation on return
on ordinary
activities - - - - - -
Return on ordinary
activities after
tax (3) 3,187 3,184 9 4,038 4,047
Earnings per share 0.0p 4.5p 4.5p 0.0p 6.6p 6.6p
- basic and
diluted
There is no other comprehensive income for the period.
-- the 'Total' column of this statement represents the statutory income
statement of the Company; the supplementary revenue return and capital
return columns have been prepared in accordance with the AIC Statement of
Recommended Practice
-- all revenue and capital items in the above statement derive from
continuing operations
-- the Company has only one class of business and derives its income from
investments made in shares and securities and from bank and money market
funds, as well as OEIC funds.
Balance Sheet
As at 30 November 2016 As at 30 November 2015
GBP'000 GBP'000 GBP'000 GBP'000
Fixed asset investments* 49,737 44,968
Current assets:
Investments* 10,594 5,397
Debtors 49 54
Cash at bank 2,984 2,010
13,627 7,461
Creditors: amounts falling
due within one year (359) (112)
Net current assets 13,268 7,349
Net assets 63,005 52,317
Called up equity share
capital 8 6
Share premium 23,405 11,575
Special distributable
reserve 30,513 34,841
Capital reserve realised (10,168) (8,373)
Capital reserve unrealised 19,388 14,406
Revenue reserve (141) (138)
Total equity shareholders'
funds 63,005 52,317
Net asset value per share 80.6p 80.6p
- basic and diluted
*Held at fair value through profit and loss
The statements were approved by the Directors and authorised for issue
on 10 February 2017 and are signed on their behalf by:
Keith Mullins
Chairman
Company No: 05528235
Statement of changes in Equity
Capital
Special reserve Capital
Share Share distributable - reserve - Revenue
Capital Premium reserves realised unrealised reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1
December
2014 6 8,979 34,183 (10,457) 12,452 (147) 45,016
Comprehensive
income for the
year:
Management fee
allocated as
capital
expenditure - - - (689) - - (689)
Current year
gains on
disposal - - - 172 - - 172
Current period
gains on fair
value of
investments - - - - 4,555 - 4,555
Loss on
ordinary
activities
after tax - - - - - 9 9
Total
comprehensive
income for
the year - - - (517) 4,555 9 4,047
Contributions
by and
distributions
to owners:
Repurchase and
cancellation
of own
shares - - (925) - - - (925)
Issue of
shares - 8,320 - - - - 8,320
Share issue
costs - (362) - - - - (362)
Dividends paid - - (3,779) - - - (3,779)
Total
contributions
by and
distributions
to owners 7,958 (4,704) - - - 3,254
Other
Movements:
Cancellation
of share
premium - (5,362) 5,362 - - - -
Prior years'
holding gains
now realised - - - 2,601 (2,601) - -
Total other
movements - (5,362) 5,362 2,601 (2,601) - -
Balance as at
30 November
2015 6 11,575 34,841 (8,373) 14,406 (138) 52,317
Capital
Special reserve Capital
Share Share distributable - reserve - Revenue
Capital Premium reserves realised unrealised reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1
December
2015 6 11,575 34,841 (8,373) 14,406 (138) 52,317
Comprehensive
income for the
year:
Management fee
allocated as
capital
expenditure - - - (676) - - (676)
Current year
gains on
disposal - - - 300 - - 300
Current period
gains on fair
value of
investments - - - - 3,563 - 3,563
Profit on
ordinary
activities
after tax - - - - - (3) (3)
Total
comprehensive
income for
the year - - - (376) 3,563 (3) 3,184
Contributions
by and
distributions
to owners:
Repurchase and
cancellation
of own
shares - - (1,401) - - - (1,401)
Issue of
shares 2 12,367 - - - - 12,369
Share issue
costs - (537) - - - - (537)
Dividends paid - - (2,927) - - - (2,927)
Total
contributions
by and
distributions
to owners 2 11,830 (4,328) - - - 7,504
Other
Movements:
Prior years'
holding
losses now
realised - - - (1,419) 1,419 - -
Total other
movements - - - (1,419) 1,419 - -
Balance as at
30 November
2016 8 23,405 30,513 (10,168) 19,388 (141) 63,005
Cash Flow Statement
Year to 30 November 2016 Year to 30 November 2015
GBP'000 GBP'000
Cash flows from operating
activities
Return on ordinary
activities before tax 3,184 4,047
Adjustments for:
Decrease in debtors 5 343
Decrease in creditors 247 5
Gain/(loss) on disposal of
fixed assets (300) (172)
(Gain)/loss on valuation
of fixed asset
investments (3,389) (4,555)
(Gain)/loss on valuation
of current asset
investments (174) -
Cash from operations (427) (332)
Income taxes paid - -
Net cash generated from
operating activities (427) (332)
Cash flows from investing
activities
Purchase of fixed asset
investments (2,261) (8,883)
Sale of fixed asset
investments 1,181 5,387
Purchase of current asset
investments (6,000) -
Total cash flows from
investing activities (7,080) (3,496)
Cash flows from financing
activities
Purchase of own shares (1,401) (925)
Issue of own shares 11,832 7,958
Dividends paid (2,927) (3,779)
Total cash flows from
financing activities 7,504 3,254
Increase in cash and cash
equivalents (3) (574)
Opening cash and cash
equivalents 7,407 7,981
Closing cash and cash
equivalents 7,404 7,407
Cash at bank 2,984 2,010
Money Market Funds 4,420 5,397
Total cash and cash
equivalents 7,404 7,407
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Octopus AIM VCT 2 plc via Globenewswire
http://www.octopusinvestments.com
(END) Dow Jones Newswires
February 14, 2017 11:33 ET (16:33 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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