Half-year Report

Half-year Report

New Cent. Aim Vct 2

New Century AIM VCT 2 plc

For the six months to 30th June 2019

Chairman’s Statement

It is pleasing to report that following a difficult end to last year when the Markets had a large set back, your fund has returned a positive performance for the six months to 30 June 2019.

The net asset value (NAV) of your fund increased by 10.42% to 53p, whereas the FSTE AIM Allshare index gained 7.11% over the same period.

We made six further investments in the period, investing in Concepta plc, Diaceutics plc, Immotion Group plc, Integumen plc, LightwaveRF plc and N4 Pharma plc.

We made 9 sales where we either exited or top-sliced a holding.

The current uncertainty with regards to BREXIT looks set to carry on until the end of October and the USA and China trade wars continue. Throughout these uncertain times we are still seeing some interesting investment opportunities from companies seeking growth capital listed on AIM. There has also been some corporate activity where we received take over approaches on two of our investments, EU Supply and Premier Technical Services Group.

We have a wide spread of established companies across a variety of sectors within the fund that we hope can weather any of the volatility that may occur in the period ahead.

It is these factors above that give us cautious optimism for the remainder of the year.

Geoff Gamble

Chairman

29 August 2019

New Century AIM VCT2 plc

For the six months to 30th June 2019

Unaudited Balance Sheet

      Interim Accounts       Final Accounts       Interim Accounts
as at 30 June 2019 as at 31 December 2018* as at 30 June 2018
£'000   £'000 £'000   £'000 £'000   £'000
Fixed Assets
Investments 2,465 2,214 3,124
 
Current Assets
Uninvested cash 4 4 31 31 67 67
 
Current Liabilities
Creditors: amounts due
within one year (6) (16) (8)
     
2,463 2,229 3,183
Capital and Reserves
Share capital 461 461 461
Share premium 57 57 57
Capital redemption reserve 171 171 171
Capital reserve-distributable 3,440 3,440 3,440
Capital reserve - realised (1,072) (1,185) (1,406)
Capital reserve - unrealised (786) (916) 103
Revenue reserve 192 201 357
     
2,463 2,229 3,183
 
Net Asset Value per share 53p 48p 69p
*Audited

New Century AIM VCT2 plc

For the six months to 30th June 2019

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

      6 month period ended 30 June 2019   Year to 31 December 2018*   6 month period ended 30 June 2018
Revenue   Capital   Total Revenue   Capital   Total Revenue   Capital   Total
      £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses) on investments
Realised - 46 46 - 121 121 - 82 82
Unrealised - 206 206 - (850) (850) - (22) (22)
Income 15 - 15 46 - 46 14 - 14
Investment management fees (3) (9) (12) (8) (22) (30) (4) (13) (17)
Other expenses   (21) - (21) (52) - (52) (20) - (20)
Return on ordinary activities (9) 243 234 (14) (751) (765) (10) 47 37
Tax on ordinary activities - - - - - - - - -
Return on ordinary activities
after taxation   (9) 243 234 (14) (751) (765) (10) 47 37
Return per ordinary share in pence (0.20) 5.28 5.08 (0.31) (16.30) (16.61) (0.22) 1.02 0.80
 
*Audited
 
All revenue and capital items in the above statement are from continuing operations in the current six month period. No operations were acquired or discontinued in the current period. Other than that shown above, the company had no recognised gains or losses. Accordingly, the above represents the total comprehensive income for the period.
The weighted average number of shares in issue during the period was 4,606,953.

New Century AIM VCT2 plc

For the six months to 30th June 2019

Unaudited Consolidated Statement of Changes in Equity

 

Called-up share capital

£’000

  Share Premium account
£’000 		  Capital Redemption reserve
£’000 		  Capital Reserve- distributable
£’000 		  Capital

realised
£’000

  Capital

unrealised
£’000

  Revenue reserve
£’000 		 

 

Total

£’000

 
As at 1 January 2019 461 57 171 3,440 (1,185) (916) 201 2,229
 
Realised gains on disposals in period - - - - 46 - - 46
Unrealised gain - - - - - 206 - 206
Transfer of unrealised gain to realised on disposal of investment

-

-

-

- 76 (76) -

-

Net revenue before tax - - - - - - (9) (9)
Investment management fee - - -

-

-

- (9) (10) - - (9)

(10)

________ ________ _________ _________ ________ ________ ________ ________
At 30 June 2019 461 57 171 3,440 (1072) (786) 192 2,463
               
As at 1 January 2018 461 57 171 3,440 (1,537) 187 367 3,146
 
Realised gains on disposals - - - - 82 - - 82
Unrealised gains - - - - - (22) - (22)
Transfer of unrealised loss to realised on disposal of investment

-

- - - 62 (62) -

-

Net revenue before tax - - - - - - (24) (24)
Investment management fee - - - - (13) - - (13)
________ ________ _________ _________ ________ ________ ________ ________
At 30 June 2018 461 57 171 3,440 (1,406) 103 357 3,183

New Century AIM VCT2 plc

For the six months to 30th June 2019

Unaudited Cash Flow Statement

Six month period ended 30 June 2019   Year to 31 December 2018*   Six month period ended 30 June 2018
£'000   £'000 £'000   £'000 £'000   £'000
     
Net cash generated from operating activities (43) (84) (47)
 
Cash flow from investing activities
Interest received - - -
Investment income 15 46 14
15 46 14
 
Cash flows from financing activities
Sale of investments 227 572 249
Purchase of investments (226) (388) (186)
Dividend paid - (152) -
1 32 63
 
Net decrease in cash and cash equivalents (27) (6) (30)
 
Cash and cash equivalents at beginning of period 31 37 37
     
Cash and cash equivalents at end of period 4 31 67
 
*Audited

New Century AIM VCT2 plc

For the six months to 30th June 2019

Investment Portfolio

    Security   Cost   Valuation   %   %
    30 June 2019 Cost Valuation
 
Qualifying Investments 2,902,381 2,318,067 91.01 93.87
Non-qualifying Investments 282,818 147,528 8.87 5.97
Uninvested funds 3,872 3,872 0.12 0.16
3,189,071 2,469,467 100.00 100.00
Qualifying Investments
AIM Quoted
Marechale Capital plc 75,752 4,875 2.37 0.19
HML Holdings plc 94,972 115,500 2.98 4.67
TP Group plc 160,062 50,860 5.02 2.06
Tristel plc 3,715 25,200 0.11 1.02

Cyanconnode Holdings plc

204,219 4,515 6.40 0.18
M.Winkworth plc 56,280 80,500 1.76 3.26
Inspired Energy plc 33,641 136,500 1.05 5.52
Microsaic Systems plc 142,261 50,544 4.46 2.04
Open Orphan plc 155,184 40,188 4.86 1.63
DP Poland plc 25,631 13,600 0.80 0.55
Modern Water plc 75,385 9,818 2.36 0.40
Quixant plc 8,091 38,500 0.25 1.56
Keywords Studios plc 7,666 113,150 0.24 4.58
Sanderson Group plc 15,204 35,200 0.48 1.43
Cloudbuy plc 41,896 1,952 1.31 0.08
PHSC plc 50,256 18,000 1.58 0.73
EU Supply plc 19,422 15,048 0.61 0.61
Synnovia plc 33,168 29,040 1.04 1.18
Sysgroup plc 45,232 30,750 1.42 1.25
Brighton Pier Group plc 35,379 13,640 1.11 0.55
Property Franchise Group plc 50,253 80,500 1.58 3.26
Solid State plc 35,248 70,426 1.11 2.85
Audioboom Group plc 148,252 114,000 4.65 4.62
Scholium Group plc 40,203 16,000 1.26 0.65
Rosslyn Data Technologies plc 23,219 4,900 0.73 0.20
Coral Products plc 25,104 15,725 0.79 0.64
SRT Marine Systems plc 18,093 32,500 0.57 1.32
ULS Technology plc 18,091 33,930 0.57 1.37
Premier Technical Services Group plc 26,288 104,121 0.82 4.22
Angle plc 75,128 69,000 2.36 2.79
Bilby plc 52,465 27,900 1.65 1.13
Hunters Property plc 50,253 35,000 1.58 1.42
Bigblu Broadband plc 29,247 45,267 0.92 1.83
Tekcapital plc 82,292 39,875 2.58 1.61
    Security   Cost   Valuation   %   %
    30 June 2019 Cost Valuation
Falanx Group Ltd 45,031 15,660 1.41 0.63
Yourgene Health plc 40,204 26,000 1.26 1.05
Bould Opportunities plc 15,079 150 0.47 0.01
Yu Group plc 20,504 17,090 0.64 0.69
Scancell Holdings plc 45,233 21,125 1.42 0.86
Intelligent Ultrasound Group plc 50,251 21,672 1.58 0.88
Loopup Group plc 15,078 38,250 0.47 1.55
Faron Pharmaceuticals Ltd 20,103 8,560 0.63 0.35
Cloudcall Group plc 20,230 38,500 0.63 1.56
Creo Medical Group plc 30,053 70,816 0.94 2.87
Anglo African Oil & Gas plc 65,329 15,600 2.05 0.63
Escape Hunt plc 31,006 13,253 0.97 0.54
Location Sciences Group plc 57,564 71,755 1.81 2.91
Fusion Antibodies plc 22,113 13,683 0.69 0.55
Pelatro plc 25,128 32,000 0.79 1.30
Polarean Imaging plc 20,104 26,667 0.63 1.08
Access Intelligence plc 10,053 14,000 0.32 0.57
Blackbird plc 50,254 70,000 1.58 2.83
I-Nexus Global plc 30,153 12,532 0.95 0.51
Immotion Group plc 70,357 76,667 2.21 3.10
N4 Pharma plc 40,204 18,000 1.26 0.73
Lightwaverf plc 30,158 25,588 0.95 1.04
Diaceutics plc 10,314 11,475 0.32 0.46
Concepta plc 75,383 67,500 2.36 2.73
Integumen plc 50,254 75,000 1.58 3.04
       
2,847,690 2,318,067 89.30 93.87
 
Unlisted Investments
Outsourcery plc 28,143 0 0.88 0.00
Syqic plc 26,546 0 0.83 0.00
54,689 0 1.71 0.00
       
Total qualifying investments 2,902,381 2,318,067 91.01 93.87
 
Non Qualifying Investments
AIM Quoted
Rotala plc 27,683 40,600 0.87 1.64
Tristel plc 60 280 0.00 0.01
Audioboom Group plc 1,163 190 0.04 0.01
Be Heard Group plc 10,040 2,915 0.31 0.12
Yolo Leisure & Technology plc 12,799 2,850 0.40 0.12
       
51,745 46,835 1.62 1.90
 

 

         
Security Cost Valuation % %
    30 June 2019 Cost Valuation
 
UK Listed
Investec plc 169,416 91,413 5.31 3.70
Twentyfour Income Fund Ltd 9,852 9,280 0.31 0.37
179,268 100,693 5.62 4.07
Unlisted Investments
China Food Co plc 31547 0 0.99 0.00
Sorbic International plc 10,205 0 0.32 0.00
Mar City plc 10,053 0 0.32 0.00
       
51,805 0 1.63 0.00
       
Total non-qualifying investments 282,818 147,528 8.87 5.97

New Century AIM VCT2 plc

Notes to the Accounts

For the six months to 30th June 2019

This interim financial information and the unaudited interim accounts for the six months to 30 June 2019 from which it has been extracted, are the responsibility of the directors and were approved by them on 29 August 2019, do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 and have not been delivered to the Registrar of Companies.

The Company is an investment company as defined in Section 833 of the Companies Act 2006. The unaudited

interim accounts have been prepared in accordance with the Financial Reporting Council’s (FRC) Financial Reporting Standard 104 Interim Financial Reporting (March 2018) and with the Statement of Recommended Practice for Investment Companies re-issued by the Association of Investment Companies in November 2014 and updated in February 2018.

The unaudited interim accounts have been prepared using accounting policies that the company applied in the accounts for the year ending 31 December 2018, incorporating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The company considers these accounting policies will be used in the accounts for the year ending 31 December 2019.

Listed, AIM or NEX Markets-traded investments are stated at market value, which is based upon market bid prices in an active market at the balance sheet date. These would all meet tier 1 of the fair value hierarchy.

4,606,953 Ordinary Shares of 10 pence each were in issue throughout the period under review.

Net Asset Value per share at 30 June 2019 was 53p (at 31 December 2018: 48p; 30 June 2018: 69p).

No dividend was paid in the period.

There have not been any significant events since the balance sheet date.

New Century AIM VCT2 plc is managed by M D Barnard & Co. Limited (‘MDB’). Under the terms of the management agreement MDB are entitled to a fee (exclusive of VAT) equal to 1% per annum of the net assets of the company. During the period the management fee was £12k (the year ended 31 December 2018: £30k, the period ended 30 June 2018 £17k).

Bearing in mind that the assets of the company consist mainly of marketable securities, the directors are of the opinion that at the time of approving this interim financial information, the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing this interim financial information.

Copies of the Interim Report to Shareholders have been sent to shareholders and are available at the Company’s

Registered Office: Tricor Secretaries Ltd, 4th Floor, 50 Mark Lane, London EC3R 7QR.

New Century AIM VCT2 plc

Directors, Investment Managers and Advisors

 
 
Directors Geoffrey Charles Gamble (Chairman)
Michael David Barnard
Peter William Riley
Ian Cameron-Mowat
 
Secretary Tricor Secretaries Ltd
and registered office 4th Floor, 50 Mark Lane
London EC3R 7QR

Registrar

Neville Registrars Limited

Neville House

Steelpark Road

Halesowen

West Midlands B62 8HD

Solicitors

Dundas & Wilson

5th Floor, Northwest Wing

Bush House

Aldwych

London WC2B 4EZ

Investment Manager and Broker MD Barnard & Company Limited
1st Floor

12 Hornsby Square

Southfields Business Park

Basildon

Essex SS15 5AD

 
Auditor UHY Hacker Young LLP
Quadrant House
4 Thomas More Square
London E1W 1YW

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