Half-year Report

 

Half-year Report

New Cent. Aim Vct 2

 

New Century AIM VCT 2 plc

For the six months to 30th June 2020

Chairman’s Statement

It is pleasing to report that following a very difficult period for the Market during February and March 2020, your fund regained nearly all of the declines in its net asset value (NAV) incurred during those months, and considerably outperformed its benchmark for the six months to 30 June 2019.

The NAV of your fund decreased by 2.5% to 48.3p (when measured using bid-prices), compared to the FTSE AIM Allshare index which declined by 7.8% over the same period.

It is also pleasing to note that the NAV reported for 31 July 2020 (based on mid-prices) is now higher than that reported for the 31 December 2019. We believe the difficult decision to use existing cash resources to invest in new opportunities rather than fund a dividend has proved to be the correct one as we have seen a strong recovery in the NAV from the lows experienced in the Stock Market sell off in March 2020 and we hope, subject to the possible volatility mentioned below, to be able to recommence paying a dividend next year.

We made seven further investments in the period, investing in Concepta PLC, Eden Research PLC, ECSC Group PLC, Fusion Antibodies PLC, Gfinity PLC, Intelligent Ultrasound Group PLC and Synairgen PLC. We are pleased to report each of these investments are currently priced higher than when we made our investment and we exited one at a 100% profit.

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

We have a wide spread of established companies across a variety of sectors within the fund and whilst we hope your fund will continue to outperform over the rest of the year, we are mindful that we could see further volatility this Autumn / Winter. The second half of the year has political events such as the US Presidential elections and the uncertainty over what type of BREXIT we will have as well as the possibility of a second wave of the virus.

Geoff Gamble

Chairman

28 August 2020

New Century AIM VCT 2 plc

For the six months to 30 June 2020

Unaudited Balance Sheet

 

 

Interim Accounts

 

Final Accounts

 

Interim Accounts

 

 

as at 30 June 2020

 

as at 31 December 2019*

 

as at 30 June 2019

 

 

£'000

£'000

 

£'000

£'000

 

£'000

£'000

Fixed Assets

 

 

 

 

 

 

 

 

 

Investments

 

2,127

 

 

2,253

 

 

2,465

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

Uninvested cash

104

104

 

45

45

 

4

4

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

Creditors: amounts due

 

 

 

 

 

 

 

 

 

within one year

 

(6)

 

 

(16)

 

 

(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

2,225

 

 

2,282

 

 

2,463

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

 

(712)

 

 

(866)

 

 

(1,072)

 

Capital reserve - unrealised

 

(1,193)

 

 

(1,002)

 

 

(786)

 

Revenue reserve

 

1

 

 

21

 

 

192

 

 

 

 

 

 

 

 

 

 

 

 

 

2,225

 

 

2,282

 

 

2,463

 

 

 

 

 

 

 

 

 

 

Net Asset Value per share

 

48.3p

 

 

49.5p

 

 

53.5p

 

 

 

 

 

*Audited

 

 

 

New Century AIM VCT 2 plc

For the six months to 30 June 2020

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

 

 

 

6 month period ended 30 June 2020

Year to 31 December 2019*

6 month period ended 30 June 2019

 

 

 

Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total

 

 

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Gains/(losses) on investments

 

 

 

 

 

 

 

 

 

 

Realised

 

-

116

116

-

209

209

-

46

46

Unrealised

 

-

(145)

(145)

-

42

42

-

206

206

Income

 

 

7

-

7

35

-

35

15

-

15

Investment management fees

(2)

(8)

(10)

(6)

(18)

(24)

(3)

(9)

(12)

Other expenses

 

(25)

-

(25)

(52)

-

(52)

(21)

-

(21)

Return on ordinary activities

(20)

(37)

(57)

(23)

233

210

(9)

243

234

Tax on ordinary activities

-

-

-

-

-

-

-

-

-

Return on ordinary activities

 

 

 

 

 

 

 

 

 

after taxation

 

(20)

(37)

(57)

(23)

233

210

(9)

243

234

Return per ordinary share in pence

(0.44)

(0.80)

(1.24)

(0.51)

5.06

4.55

(0.20)

5.28

5.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*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 VCT 2 plc

For the six months to 30 June 2020

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 2020

461

57

171

3,440

(866)

(1,002)

21

2,282

 

 

 

 

 

 

 

 

 

Realised gains on disposals in period

-

-

-

-

116

-

-

116

Unrealised gain

-

-

-

-

-

(145)

-

(145)

Transfer of unrealised gain to realised on disposal of investment

 

-

-

-

-

46

(46)

-

-

Net revenue before tax

-

-

-

-

-

-

(20)

(20)

Investment management fee

-

-

-

-

(8)

-

-

(8)

 

________

________

_________

_________

________

________

________

________

At 30 June 2020

461

57

171

3,440

(712)

(1,193)

1

2,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 1 January 2019

461

57

171

3,440

(1,185)

(916)

201

2,229

 

 

 

 

 

 

 

 

 

Realised gains on disposals

-

-

-

-

46

-

-

46

Unrealised gains

-

-

-

-

-

206

-

206

Transfer of unrealised loss to realised on disposal of investment

 

-

-

-

-

76

(76)

-

 

-

Net revenue before tax

-

-

-

-

-

-

(9)

(9)

Investment management fee

-

-

-

-

(9)

-

-

(9)

 

________

________

_________

_________

________

________

________

________

At 30 June 2019

461

57

171

3,440

(1,072)

(786)

192

2,463

 

 

 

 

 

 

 

 

 

 

New Century AIM VCT 2 plc

For the six months to 30 June 2020

Unaudited Cash Flow Statement

 

Six month period ended 30 June 2020

 

Year to 31 December 2019*

 

Six month period ended 30 June 2019

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

Net cash generated from operating activities

 

 

(45)

 

 

 

(76)

 

 

 

(43)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow from investing activities

 

 

 

 

 

 

 

 

 

 

 

Interest received

-

 

 

 

-

 

 

 

-

 

 

Investment income

7

 

 

 

35

 

 

 

15

 

 

 

 

 

7

 

 

 

35

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

Sale of investments

252

 

 

 

700

 

 

 

227

 

 

Purchase of investments

(155)

 

 

 

(488)

 

 

 

(226)

 

 

Dividend paid

-

 

 

 

(157)

 

 

 

-

 

 

 

 

 

97

 

 

 

55

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

 

59

 

 

 

14

 

 

 

(27)

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

45

 

 

 

31

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

 

104

 

 

 

45

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Audited

 

 

 

 

 

New Century AIM VCT 2 plc

For the six months to 30 June 2019

Investment Portfolio

 

Security

Cost

Valuation

%

%

 

 

 

30 June 2020

Cost

Valuation

 

 

 

 

 

 

 

Qualifying Investments

2,891,826

2,028,516

88.54

90.93

 

Non-qualifying Investments

270,018

98,070

8.27

4.40

 

Uninvested funds

104,105

104,105

3.19

4.67

 

 

3,265,949

2,230,691

100.00

100.00

 

Qualifying Investments

 

 

 

 

 

AIM Quoted

 

 

 

 

 

Access Intelligence plc

10,053

14,250

0.31

0.64

 

Anglo African Oil & Gas plc

65,329

975

2.00

0.04

 

Audioboom Group plc

148,252

108,000

4.54

4.84

 

Bigblu Broadband plc

29,247

41,387

0.90

1.86

 

Bilby plc

52,465

17,460

1.61

0.78

 

Blackbird plc

41,460

170,363

1.27

7.64

 

Brighton Pier Group plc

35,379

8,360

1.08

0.37

 

C4X Discovery Holdings plc

35,179

33,600

1.08

1.51

 

Cloudbuy plc

41,896

153

1.28

0.01

 

Cloudcall Group plc

20,230

27,650

0.62

1.24

 

Concepta plc

100,511

61,875

3.08

2.77

 

Coral Products plc

25,104

9,435

0.77

0.42

 

Creo Medical Group plc

20,504

56,368

0.63

2.53

 

CyanConnode Holdngs plc

204,219

3,440

6.25

0.15

 

Diaceutics plc

10,314

20,318

0.32

0.91

 

DP Poland plc

25,631

12,155

0.78

0.54

 

ECSC Group plc

20,104

23,455

0.62

1.05

 

Eden Research plc

41,837

54,113

1.28

2.43

 

Entertainment AI plc

50,257

27,778

1.54

1.25

 

Escape Hunt plc

31,006

1,942

0.95

0.09

 

Falanx Group Ltd

45,031

11,745

1.38

0.53

 

Feedback plc

20,104

16,667

0.62

0.75

 

Fusion Antibodies plc

12,064

13,466

0.37

0.60

 

Gfinity plc

60,311

56,189

1.85

2.52

 

HML Holdings plc

58,340

53,750

1.79

2.41

 

Hunters Property plc

50,253

52,000

1.54

2.33

 

Immotion Group plc

95,486

26,481

2.92

1.19

 

I-Nexus Global plc

30,153

1,519

0.92

0.07

 

Inspired Energy plc

33,641

182,700

1.03

8.19

 

Integumen plc

75,383

92,976

2.31

4.17

 

Intelligent Ultrasound Group plc

95,482

86,639

2.92

3.88

 

Keywords Studios plc

2,473

36,220

0.08

1.62

 

Lightwaverf plc

30,158

2,118

0.92

0.09

 

Location Sciences Group plc

72,643

11,636

2.22

0.52

 

Security

Cost

Valuation

%

%

 

 

 

30 June 2020

Cost

Valuation

 

Loopup Group plc

15,078

20,325

0.46

0.91

 

M.Winkworth plc

56,280

84,000

1.72

3.77

 

Marechale Capital plc

75,752

6,375

2.32

0.29

 

Microsaic Systems plc

142,261

20,534

4.36

0.92

 

Modern Water plc

75,385

5,629

2.31

0.25

 

N4 Pharma plc

40,204

18,760

1.23

0.84

 

Open Orphan plc

155,184

71,079

4.75

3.19

 

Pelatro plc

25,128

26,920

0.77

1.21

 

PHSC plc

50,256

15,900

1.54

0.71

 

Polarean Imaging plc

20,104

36,533

0.62

1.64

 

Property Franchise Group plc

35,177

60,900

1.08

2.73

 

Quixant plc

8,091

19,775

0.25

0.89

 

Rosslyn Data Technologies plc

23,219

3,710

0.71

0.17

 

Scancell Holdings plc

45,233

17,323

1.38

0.78

 

Scholium Group plc

40,203

11,520

1.23

0.52

 

Solid State plc

35,248

80,860

1.08

3.62

 

SRT Marine Systems plc

18,093

32,150

0.55

1.44

 

Sysgroup plc

45,232

26,475

1.38

1.19

 

TP Group plc

160,062

51,085

4.90

2.29

 

Tristel plc

1,651

16,800

0.05

0.75

 

ULS Technology plc

18,091

22,410

0.55

1.00

 

Yourgene Health plc

40,204

32,900

1.23

1.47

 

Yu Group plc

20,504

9,372

0.63

0.42

 

 

 

 

 

 

 

 

2,837,137

2,028,516

86.87

90.93

 

Qualifying Investments

 

 

 

 

 

Unlisted Investments

 

 

 

 

 

Outsourcery plc

28,143

0

0.86

0.00

 

Syqic plc

26,546

0

0.81

0.00

 

 

54,689

0

1.67

0.00

 

 

 

 

 

 

 

Total qualifying investments

2,891,826

2,028,516

88.54

90.93

 

 

 

 

 

 

 

Non Qualifying Investments

 

 

 

 

 

AIM Quoted

 

 

 

 

 

Audioboom Group plc

1,163

180

0.04

0.01

 

Be Heard Group plc

10,040

1,060

0.31

0.05

 

Rotala plc

27,683

19,670

0.85

0.88

 

Tristel plc

60

420

0.00

0.02

 

 

 

 

 

 

 

 

38,946

21,330

1.19

0.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Security

Cost

Valuation

%

%

 

 

 

30 June 2020

Cost

Valuation

 

 

 

 

 

 

 

Non qualifying investments

UK listed

Investec plc

169,415

68,160

5.19

3.06

 

Twentyfour Income Fund Ltd

9,852

8,580

0.30

0.38

 

 

179,267

76,740

5.49

3.44

 

 

Non qualifying investments

Unlisted Investments

 

 

 

 

 

China Food Co plc

31547

0

0.97

0.00

 

Sorbic International plc

10,205

0

0.31

0.00

 

Mar City plc

10,053

0

0.31

0.00

 

 

 

 

 

 

 

 

51,805

0

1.59

0.00

 

 

 

 

 

 

 

Total non-qualifying investments

270,018

98,070

8.27

4.40

New Century AIM VCT 2 plc

Notes to the Accounts

For the six months to 30 June 2020

This interim financial information and the unaudited interim accounts for the six months to 30 June 2020 from which it has been extracted, are the responsibility of the directors and were approved by them on 28 August 2020, 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 2019, 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 2020.

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 2020 was 48.3p (at 31 December 2019: 49.5p; 30 June 2019: 53.5p).

No dividend was paid in the period.

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

New Century AIM VCT 2 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 £10k (the year ended 31 December 2019: £24k, the period ended 30 June 2018 £12k).

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 VCT 2 plc

Directors, Investment Managers and Advisors

 

 

 

Directors

Geoffrey Charles Gamble (Chairman)

 

Michael David Barnard

 

Peter William Riley

 

Ian Cameron-Mowat

Simon Like

 

 

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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