TIDMBSC
RNS Number : 4926N
British Smaller Companies VCT2 Plc
09 May 2018
British Smaller Companies VCT2 plc
Interim Management Statement
For the quarter ended 31 March 2018
British Smaller Companies VCT2 plc (the "Company") presents its
interim management statement for the quarter ended 31 March 2018.
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 progress in the quarter with
total return rising to 114.7 pence per ordinary share. This is an
increase of 0.4 pence per ordinary share.
It is pleasing that improved performance across a number of
investments contributed to the GBP0.5 million increase in Net Asset
Value ("NAV") from the portfolio in the period.
A number of investments were being held up due t0 delays in
HMRC's advance assurance process, but these have now been received,
allowing the Company to have a strong start to the year, with
investments totalling GBP4.3 million to date and a successful
fundraising. The Company launched a top-up fundraising on 11
January 2018 which was fully subscribed from existing shareholders,
closing on 26 January 2018 and raising net proceeds of GBP4.3
million.
Performance
31 March Movement 31 December
2018 2017
Net Assets (GBPm) 63.6 4.5 59.1
------------ ---------- ------------
NAV per share (PPS) 59.2p 0.4p 58.8p
------------ ---------- ------------
Cumulative dividends paid
(PPS) 55.5p - 55.5p
------------ ---------- ------------
Total Return (PPS) 114.7p 0.4p 114.3p
------------ ---------- ------------
Shares in issue 107,442,275 6,951,700 100,490,575
------------ ---------- ------------
The total return at 31 March 2018, calculated by reference to
the NAV per ordinary share and the cumulative dividends paid per
ordinary share, was 114.7 pence per ordinary share compared to
114.3 pence per ordinary share at 31 December 2017. Cumulative
dividends paid were unchanged at 55.5 pence per ordinary share (31
December 2017: 55.5 pence per ordinary share).
The unaudited NAV per ordinary share as at 31 March 2018 was
59.2 pence per ordinary share (31 December 2017: 58.8 pence per
ordinary share) representing an increase of 0.4 pence per ordinary
share primarily from the net upward movement in the overall
portfolio valuation.
Dividends and shares in issue
On 16 February 2018 the Company issued 7,366,700 ordinary shares
as part of the top-up fundraising, raising net proceeds of
GBP4.3m.
On 27 March 2018 the Company purchased 415,000 ordinary shares
of 10 pence each at a price of 56.36 pence per ordinary share.
These shares were placed in treasury.
The number of ordinary shares in issue at 31 March 2018 was
107,442,275 (31 December 2017: 100,490,575). In addition, at 31
March 2018 the Company held 4,421,351 ordinary shares in treasury
(31 December 2017: 4,006,351).
Net assets
Net assets at 31 March 2018 comprised the following:
% of net
GBP000 assets
Unquoted investments at
fair value 41,951 65.9
Quoted investments at
bid price 2,184 3.5
------- ---------
Total investments 44,135 69.4
Cash and cash equivalents 18,367 28.9
Other net current assets 1,126 1.7
------- ---------
Net assets 63,628 100.0
======= =========
The investment portfolio at 31 March 2018 was comprised as
follows:
Valuation
as a %
Valuation of net
GBP000 assets
Matillion Limited 3,292 5.2
Intelligent Office UK 3,246 5.1
ACC Aviation 3,119 4.9
Mangar Health Limited 2,771 4.4
KeTech Enterprises Limited 2,488 3.9
Eikon Holdco Limited 2,000 3.1
Gill Marine Holdings Limited 1,951 3.1
GTK (Holdco) Limited 1,933 3.0
Business Collaborator Limited 1,865 2.9
Springboard Research Holdings
Limited 1,843 2.9
24,508 38.5
Other investments 19,627 30.9
Total investments 44,135 69.4
========== ==========
During the quarter to 31 March 2018 the Company made two new
investments of GBP2.0 million into Eikon Holdco Limited, a leading
end-to-end digital post-production services provider for the motion
picture and broadcast industry and GBP1.0 million into Ncam
Technologies Limited, a provider of innovative and leading
Augmented Reality solutions for the entertainment industries. The
Company also made a follow-on investment of GBP0.4 million into
Matillion Limited as part of an GBP18 million series B fundraising
that was supported by two US investors.
Since the end of the quarter the Company has invested GBP0.9
million into Hutchinson Networks Limited, a specialist in the
provision of computer networking and data centre services.
In the quarter to 31 March 2018 the realisation and repayment of
investments generated cash proceeds of GBP0.2 million.
Portfolio Performance
Over the quarter to 31 March 2018 the aggregate unrealised
portfolio valuation has increased by GBP0.5 million.
The Board continues to follow its policy of maintaining a
diversified portfolio. At 31 March 2018, only two investments
represented more than 5 per cent of the Company's NAV.
Outlook
While the UK's economic performance remains subdued the
Company's portfolio businesses have continued to adapt their
business models and the new investment pipeline remains strong, as
shown by the level of investment so far this year. HMRC's recently
revised guidance on their advance assurance process could also help
to improve the speed at which new investments are made.
As the latest investments show, the composition of the Company's
portfolio is changing towards growth capital investments in earlier
stage, younger businesses, while the success of the series B
fundraising into Matillion demonstrates that the portfolio contains
investments with good growth opportunities.
Your Board continues to manage the Company's portfolio in order
to maximise the total return and smooth the transition to a period
of expected greater volatility of returns through targeted new
investments, selective realisations and periodic reviews of the
Company's dividend and buy-back policies.
Your Board is committed to delivering long-term value to
shareholders through a strong and diversified portfolio.
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.
9 May 2018
For further information please contact:
David Hall YFM Private Equity Limited Tel: 0113 244 1000
Jonathan Becher Panmure Gordon (UK) Limited Tel: 0207 886 2715
This information is provided by RNS
The company news service from the London Stock Exchange
END
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