Octopus VCT 2 PLC Octopus Vct 2 Plc : Amended - Final Results
April 10 2015 - 11:56AM
UK Regulatory
TIDMOVC2
Octopus VCT 2 plc
AMENDMENT TO THE ANNOUNCEMENT RELEASED AT 19:00 ON 9 APRIL 2015
The document has been amended to alter the record date for payment of
the dividend from 4 June 2015 to 5 June 2015. No other information has
been changed.
Final Results
10 April 2015
Octopus VCT 2 plc, managed by Octopus Investments Limited ("Octopus"),
today announces its final results for the year ended 31 December 2014.
These results were approved by the Board of Directors on 9 April 2015.
You may, in due course, view the Annual Report in full at
www.octopusinvestments.com
Financial Summary
As at As at
31 December 2014 31 December 2013
Net assets (GBP'000s) 19,222 19,337
Return on ordinary activities after tax
(GBP'000s) 506 1,222
Net asset value (NAV) per share 100.7p 100.6p
Total dividends paid to date 2.5p -
Total return 103.2p 100.6p
Proposed final dividend per share 2.5p 2.5p
Subject to shareholder approval at the Annual General Meeting the
dividend will be paid on 3 July 2015 to shareholders on the register on
5 June 2015.
Chairman's Statement
Introduction
I am pleased to present the Annual Report of Octopus VCT 2 plc for the
year ended 31 December 2014.
Performance
During the year, the Net Asset Value (NAV) of the Company has increased
from 100.6p per share to 100.7p per share, despite the payment of a
dividend. After adding back the 2.5p final dividend paid in the year,
the total return (NAV plus cumulative dividends paid) has risen by 2.6%,
from 100.6p per share at 31 December 2013 to 103.2p per share as at 31
December 2014. This increase is largely due to the strong performance of
the Company's solar investments which saw an uplift in valuation in the
year.
Dividend
Given the performance of your Company, your Board has proposed a final
dividend of 2.5 pence per share in respect of the year ended 31 December
2014. This dividend, if approved by shareholders at the AGM, will be
paid on 3 July 2015 to shareholders on the register on 5 June 2015.
Investment Portfolio
In January 2015, the investments in Gretel Solar, Hedwig Solar, Klara
Solar, Jutta Solar, Gerde Solar and Sula Power were exited as part of a
large scale solar exit. This resulted in a considerable gain for the
Company and the majority of this uplift was recognised in the valuations
as at 31 December 2014, contributing to the uplift in NAV referred to
above.
In February 2014, the 100% debt investment in Borro Loan 2 Limited was
exited for capital proceeds of GBP1,000,000 plus all outstanding loan
interest.
In the year to 31 December 2014, GBP200,000 of loan repayments were
received from Shakti Power Limited.
In December 2014, GBP2.5m was invested, alongside Octopus Apollo VCT plc,
in Byena Limited, an acquisition vehicle established to invest in a VCT
qualifying company.
Buy-backs
During the period, the Company repurchased 139,000 shares at a weighted
average price of 96.5p per share. Further details can be found in Note
11 of the accounts.
VCT Qualifying Status
PricewaterhouseCoopers LLP provides the Board and Investment Manager
with advice concerning ongoing compliance with HMRC rules and
regulations concerning VCTs. The Board has been advised that the
Company is compliant with the conditions laid down by HMRC for
maintaining provisional approval as a VCT.
A key requirement is now to maintain the 70% qualifying investment
level. As at 31 December 2014. 95.8% of the portfolio, as measured by
HMRC rules, was invested in VCT qualifying investments.
Alternative Investment Fund Managers Directive ("AIFMD")
The Company became registered as a Small Registered UK Alternative
Investment Fund Manager with the Financial Conduct Authority in April
2014. The Company's first submission under the Alternative Investment
Fund Manager regime, for the period 1 October 2014 to 31 December 2014,
was completed at the end of January 2015.
Annual General Meeting
I look forward to meeting as many shareholders as possible at our Annual
General Meeting on 18 June 2015 to be held at the offices of Octopus
Investments Limited, 6(th) Floor, 33 Holborn, London, EC1N 2HT. The AGM
will start at 3.30 p.m.
Outlook
Since the Company's launch we have seen major Government changes to the
subsidy regime for solar companies and other renewables, and an economy
which has until recently struggled to grow following the Global
Financial Crisis. The general economic outlook is now more certain and
the portfolio has been performing well,
Whilst the focus of this Company will remain on capital preservation and
any new investments will be approached with caution, your Board and
Investment Manager believe we can continue to progress and find suitable
investments for the Company's mandate.
Ian Pearson
Chairman
9 April 2015
Investment Manager's Review
Personal Service
At Octopus we have a dual focus, on both managing your investments and
keeping you informed throughout the investment process. We are committed
to providing our investors with regular and open communication. Our
updates are designed to keep you informed about the progress of your
investment. The Company is managed by the Specialist Finance team at
Octopus.
Octopus is an award winning investment manager, established in 2000,
that has over GBP5.0 billion under management. Octopus has over 350
employees and was voted 'Best VCT Provider of the Year' by the financial
adviser community in 2006 to 2010. We currently manage over GBP480
million across 8 VCTs, more than any other provider in the industry, and
are expert in investing in UK smaller companies across a range of funds,
tax structures and risk/return mandates.
Portfolio Performance
The Company saw an increase in its total return of 2.6% from 31 December
2013 to 31 December 2014. The NAV increased slightly from 100.6p per
share to 100.7p per share and 2.5p of dividends were paid over the
period, bringing the total return (NAV plus cumulative dividends) to
103.2p per share. This is largely due to upwards revaluations of a
majority of the solar companies, seven of which were exited in January
2015. These companies were valued as at 31 December 2014 based on
advanced knowledge of the price that would be received on exit.
Portfolio Review
In March 2014, Borro Loan 2 Limited was exited with the GBP1,000,000
being repaid in full along with all outstanding loan interest.
In addition, GBP200,000 of loan repayments were received in the year
from Shakti Power Limited.
In December 2014, the Company invested GBP2,500,000, alongside Octopus
Apollo VCT plc, in Byena, an acquisition vehicle set up to seek VCT
qualifying investments on behalf of the Company.
Outlook
We are pleased with the overall performance of the portfolio in the year,
particularly the solar investments. Despite no longer receiving the loan
interest from Borro Loan 2 Limited, the portfolio has produced a small
uplift in the NAV per share in the year under review.
Your Investment Manager is confident we can continue to see further
progress in the Company.
If you have any questions on any aspect of your investment, please call
one of the team on 0800 316 2295.
Grant Paul Florence
Octopus Investments Limited
9 April 2015
Directors' Responsibilities Statement
The Directors are responsible for preparing the Directors' Report, the
Remuneration 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 United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting
Standards and applicable laws). 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 and 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 judgements 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.
The Directors are responsible for keeping adequate accounting records
that are sufficient to show and explain the Company's transactions and
disclose with reasonable accuracy at any time the financial position of
the Company and 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.
In so far as each of the Directors is aware:
-- there is no relevant audit information of which the Company's auditor is
unaware; and
-- the Directors have taken all steps that they ought to have taken to make
themselves aware of any relevant audit information and to establish that
the auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in
other jurisdictions.
To the best of my knowledge:
-- the financial statements, prepared in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Standards and
applicable laws), give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and
-- the Investment Manager's and Directors' reports include fair reviews of
the development and performance of the business and the position of the
Company, together with a description of the principal risks and
uncertainties that it faces.
On behalf of the Board
Ian Pearson
Chairman
9 April 2015
Income Statement
Year to 31 December 2014
Revenue Capital Total
GBP'000 GBP'000 GBP'000
(Loss)/gain on disposal of fixed asset
investments - - -
Fixed asset investment holding gains/(losses) - 532 532
Other income 255 - 255
Other expenses (281) - (281)
Return on ordinary activities before tax (26) 532 506
Taxation on return on ordinary activities - - -
Return on ordinary activities after tax (26) 532 506
Return per share - basic and diluted (0.1p) 2.8p 2.7p
-- The 'Total' column of this statement is the profit and loss account of
the Company; the supplementary revenue return and capital return columns
have been prepared under guidance published by the Association of
Investment Companies
-- 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
The Company has no recognised gains or losses other than the results for
the year as set out above.
Income Statement
Year to 31 December 2013
Revenue Capital Total
GBP'000 GBP'000 GBP'000
Loss on disposal of fixed asset investments - (168) (168)
Fixed asset investment holding gains - 1,290 1,290
Other income 388 - 388
Other expenses (263) - (263)
Return on ordinary activities before tax 125 1,122 1,247
Taxation on return on ordinary activities (25) - (25)
Return on ordinary activities after tax 100 1,122 1,222
Return per share - basic and diluted 0.5p 5.8p 6.3p
-- The 'Total' column of this statement is the profit or loss account of the
Company; the supplementary revenue return and capital return columns have
been prepared under guidance published by the Association of Investment
Companies
-- 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
The Company had no recognised gains or losses other than the results for
the period as set out above.
Reconciliation of Movements in Shareholders' Funds
Year to 31
Year to 31 December 2014 December 2013
GBP'000 GBP'000
Shareholders' funds at start of year 19,337 18,180
Return on ordinary activities after
tax 506 1,222
Purchase of own shares (142) (65)
Dividends paid (479) -
Shareholders' funds at end of year 19,222 19,337
Balance Sheet
As at 31 December 2014 As at 31 December 2013
GBP'000 GBP'000 GBP'000 GBP'000
Fixed asset investments* 18,593 16,761
Current assets:
Debtors 140 86
Cash at bank 527 2,567
667 2,653
Creditors: amounts
falling due within one
year (38) (77)
Net current assets 629 2,576
Net assets 19,222 19,337
Called up equity share
capital 191 193
Special distributable
reserve 17,360 17,981
Capital redemption
reserve 3 1
Capital reserve - losses
on disposals (168) (168)
- holding gains 1,822 1,290
Revenue reserve 14 40
Total shareholders'
funds 19,222 19,337
Net asset value per 100.7p 100.6p
share
*Held at fair value through profit or loss
The statements were approved by the Directors and authorised for issue
on 9 April 2015 and are signed on their behalf by:
Ian Pearson
Chairman
Company No: 07484406
Cash Flow Statement
Year to 31 December
2014 Year to 31 December 2013
GBP'000 GBP'000
Net cash (ouflow)/inflow
from operating
activities (107) 119
Financial investment:
Purchase of fixed asset
investments (2,500) -
Sale of fixed asset
investments 1,200 1,826
Dividends paid (479) -
Tax paid (12) -
Financing:
Purchase of own shares (142) (65)
(Decrease)/increase in
cash resources at bank (2,040) 1,880
Reconciliation of Return before Taxation to Cash Flow
from Operating Activities
Year to 31 December 2014 Year to 31 December 2013
GBP'000 GBP'000
Return on ordinary
activities before tax 506 1,247
Loss on disposal of
fixed asset
investments - 168
Gain on valuation of
fixed asset
investments (532) (1,290)
Increase in debtors (54) (3)
Decrease in creditors (27) (3)
(Outflow)/Inflow from
operating activities (107) 119
Reconciliation of Net Cash Flow to Movement in Net
Funds
Year to 31 December 2014 Year to 31 December 2013
GBP'000 GBP'000
(Decrease)/increase in
cash resources at bank (2,040) 1,880
Opening net funds 2,567 687
Net funds at 31 December 527 2,567
Net funds comprised:
Year to 31 December 2014 Year to 31 December 2013
GBP'000 GBP'000
Cash at bank 527 2,567
Net funds at 31 December 527 2,567
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX 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 VCT 2 PLC via Globenewswire
HUG#1910360
http://www.octopusinvestments.com/
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