Oxford Tech 2 VCT Oxford Technology 2 Vct Plc : 3rd Quarter Results
December 19 2017 - 2:00AM
UK Regulatory
TIDMOXH
Oxford Technology 2 VCT PLC
Update for the quarter ending 30 November 2017
Oxford Technology 2 VCT PLC presents its quarterly update for the period
commencing 1 September 2017.
The Directors have recently reviewed the valuation of its entire
portfolio and the unaudited net asset value per ordinary share was 40.8p
as at 30 November 2017. This is an increase of 1.9p from the previously
published NAV per share for the period ending 31 August 2017. The total
return to shareholders who remain on the register is now 53.8p per share,
including previous dividends of 13.0p per share.
On 5 December 2017 - post the quarter end - we paid a further dividend
of 8p per share, with a corresponding reduction in the above quoted NAV
per share.
During the period under review, we concluded the Tender Offer, which was
taken up by over 20% of our shareholders, and as a result, the Company
cancelled 1,461,034 Ordinary Shares, reducing its total issued share
capital from 6,792,923 to 5,331,889 Ordinary Shares. The 15% level of
discount was set to ensure a fair balance between those shareholders who
chose to participate in the Tender Offer, and those wishing to retain
their shareholding in the Company. This resulted in a 1.4p per share
increase in net asset value, which is in part to compensate remaining
shareholders who are liable to incur a greater proportion of running
costs per share going forward, given the fixed nature of these expenses.
At the end of November 2017, we made a GBP200k follow-on investment into
Arecor, making it the largest holding in the Company's portfolio of
eight remaining investees at 30 November 2017. Arecor (www.arecor.com)
is a potentially world class pharmaceutical research company based in
Cambridge and has a very advanced diabetes drug formulation technology.
This is the type of investment that Oxford Technology 2 VCT PLC has
supported for the last 17 years and appears to be exactly the sort of
VCT investment envisaged and encouraged by the government in the recent
autumn budget.
This investment was the maximum permitted by the 15% VCT rule, and was
only made possible by deferring the 8p per share dividend payment for as
long as possible to enable this investment to proceed. Following the
sale of OC Robotics in June 2017, Oxford Technology 2 VCT PLC had six
months to return funds to shareholders or make further investments of
the money or it would lose VCT qualifying status. We are pleased to
confirm that with the return of nearly GBP900k to shareholders, and the
investment in Arecor, we have completed our requirements under the VCT
rules and remain VCT compliant.
The Board of Oxford Technology 2 VCT PLC welcomes the recent budget
changes with respect to VCTs and the government's response to the
Patient Capital Review. We welcome the extension of the six month VCT
rule to twelve months as providing a greater level of future
re-investment flexibility. We also appreciate the rationale for the
increase of the level of qualifying investments to 80% (up from 70%)
from April 2019. However, as a very small VCT, we believe this may give
us some administrative problems - an unintended consequence of the
proposed revised legislation. With all of our investments being unquoted
and with no short term method of realisation, we require a cash reserve
for administrative expenses. Corporate liquidity tests will therefore
become much tighter once the new regime is in force. We will take up
this issue with HMRC while the Finance Bill passes through its reviews.
We hope that a simple amendment is possible.
The Directors are not aware of any other events or transactions that
have taken place between 30 November 2017 and the publication of this
statement that have had a material effect on the financial position of
the Company.
19 December 2017
Enquiries:
Lucius Cary, Oxford Technology Management
01865 784466
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: Oxford Technology 2 VCT plc via Globenewswire
http://www.oxfordtechnology.com
(END) Dow Jones Newswires
December 19, 2017 02:00 ET (07:00 GMT)
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