British
Smaller Companies VCT2 plc
Interim
Management Statement
For the
quarter ended 30 September 2024
British Smaller Companies VCT2 plc
(the "Company") presents its interim management statement for the
quarter ended 30 September 2024. 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
In the quarter to 30 September 2024,
the Company saw a 0.3 per cent reduction in its Net Asset Value per
share to 57.35 pence.
The Company's Total Return at 30
September 2024 was down 0.15 pence at 145.10 pence per ordinary
share.
During the
quarter, the Company invested £6.4 million
into five existing portfolio companies: Xapien, Quality Clouds,
AutomatePro, SharpCloud and Biorelate; and £1.2 million into new
investment Integrum ESG.
Subsequent to the period-end, a further £0.3
million has been invested, taking the total amount invested so far
this year to £15.1 million.
In October 2024 the Company sold its
investment in Traveltek for £1.9 million. Total proceeds over the
life of the investment are £2.6 million, a 2.3x return on the
Company's cost. There is the potential for further deferred
proceeds in due course.
Performance
The movement in Total Return in pence per ordinary
share is set out in the table below:
|
|
30
June
2024
|
Decrease in
value
|
Buy-back of
shares
|
Movement
in period
|
30 September
2024
|
|
Net
Assets (£m)
|
162.9
|
(0.4)
|
(0.8)
|
(1.2)
|
161.7
|
|
NAV
per share (PPS)
|
57.50p
|
(0.15p)
|
-
|
(0.15p)
|
57.35p
|
|
Cumulative dividends paid (PPS)
|
87.75p
|
-
|
-
|
-
|
87.75p
|
|
Total Return (PPS)
|
145.25p
|
(0.15p)
|
-
|
(0.15p)
|
145.10p
|
|
Shares in issue
|
283,400,383
|
-
|
(1,422,727)
|
(1,422,727)
|
281,977,656
|
The movements in NAV per ordinary
share are set out in the table below:
|
|
£m
|
Pence per
ordinary
share
|
|
NAV at 30 June 2024
|
|
162.9
|
|
57.50
|
|
Increase in portfolio
value
|
0.1
|
|
0.05
|
|
|
Net operating costs
|
(0.5)
|
|
(0.20)
|
|
|
|
(0.4)
|
|
(0.15)
|
|
|
Buy-back of shares
|
(0.8)
|
|
-
|
|
|
Total Return in the period
|
|
(1.2)
|
|
(0.15)
|
|
NAV
at 30 September 2024
|
|
161.7
|
|
57.35
|
Buy-backs and shares in issue
On 26 September 2024, the Company
purchased 1,422,727 ordinary shares of 10 pence each at a price of
55.13 pence per ordinary share. These shares were placed in
treasury.
The number of ordinary shares in
issue at 30 September 2024 was 281,977,656 (30 June 2024:
283,400,383), with a further 26,573,146 ordinary shares held in
treasury (30 June 2024: 25,150,419).
Subsequent to the quarter end, on 1
November 2024 the Company issued 1,251,293 shares arising from the
Company's Dividend Re-Investment Scheme (DRIS) following the
payment of the interim dividend, taking the number of shares in
issue at that date to 283,228,949, with a further 26,573,146 in
treasury.
Net
assets
Net assets at 30 September 2024
comprised the following:
|
|
£000
|
% of net
assets
|
|
Unquoted investments at fair
value
|
104,164
|
64.4
|
|
Cash and cash equivalents
|
55,922
|
34.6
|
|
Other net current assets
|
1,625
|
1.0
|
|
Net assets
|
161,711
|
100.0
|
Investments
The investment portfolio at 30
September 2024 comprised:
|
|
Valuation
£000
|
Cumulative
valuation as a % of net assets
|
|
Matillion
|
18,972
|
11.7%
|
|
Unbiased
|
9,149
|
17.4%
|
|
Outpost
|
5,035
|
20.5%
|
|
Xapien
|
4,598
|
23.3%
|
|
SharpCloud
|
4,441
|
26.1%
|
|
ACC Aviation
|
4,282
|
28.7%
|
|
Elucidat
|
4,040
|
31.2%
|
|
Vypr
|
4,013
|
33.7%
|
|
Force24
|
3,964
|
36.2%
|
|
Quality Clouds
|
3,894
|
38.6%
|
|
|
62,388
|
38.6%
|
|
Other investments
|
41,776
|
64.4%
|
|
Total investments
|
104,164
|
64.4%
|
Fundraising
Having assessed its expected cash
requirements, the Company announced a new share offer on 17 October
2024, alongside British Smaller Companies VCT plc, with the
intention of raising up to £75 million (in aggregate), which
includes an over-allotment facility of £25 million.
Applications exceeding £52 million have been received as of
the date of this report, of which £20.5 million relate to the
Company. The allotment of the first £25 million of gross proceeds
will take place between 27 and 31 January 2025. The second and
final allotment will take place between 1 and 4 April 2025.
Funds awaiting allotment will receive additional shares equivalent
to a 3.35 per cent per annum return (rate subject to change by the
receiving agent's banking provider).
General Meeting
The Company held a general meeting
on 12 November 2024 at which special resolutions were passed
relating to the cancellation of the Company's share premium account
and capital redemption reserve, and the reduction in the nominal
value of the Company's issued share capital. Once the relevant
cancellations have been approved by the High Court, which is
expected by the end of the year, this will create c.£85 million of
additional distributable reserves over the next three years. There
is no dilution to shareholders' interests.
Outlook
The Company registered a small 0.3
per cent decrease in its net asset value per share in the period,
reflecting a small number of specific investee company
circumstances that have reduced valuations in these
investments. In contrast, several companies in the portfolio
are showing strong levels of underlying growth, and we have been
pleased to have the opportunity to invest further in a number of
these businesses in the year to date, to help them accelerate this
progress.
The Company has invested in four new
companies in the first nine months of the year and continues to
have an active pipeline of opportunities. The current 2024/25
fundraise continues to progress well and will ensure that the
Company is well placed to continue to invest in innovative, growing
UK companies.
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.
29 November 2024
For further information please
contact:
Marcus
Karia
YFM Equity Partners
Tel: 0113 244
1000
Alex Collins
Panmure
Liberum
Tel: 0207 886 2767
