Half-yearly Report

Half-yearly Report

New Cent. Aim Vct 2

Further to our announcement on 25 September 2008 at 10.53am we, the company, now include the full text of the report herewith.

New Century Aim VCT2 plc
 
Unaudited Interim Report
 
For the six months to 30 June 2008

 

 

 

 
Chairman's Statement
 

Since the 31st December, 2007, the AIM market has relentlessly plotted a downward path. In the six month period to 30th June, 2008, one of your fund's largest investments, CKS, went into administration and this investment has been written off. I regret to say that the combination of these factors has led to a 22.6% decline in the net asset value per share to 72p (based on bid values of the investments).
Qualifying investments as at 30th June, 2008 had risen to 55.24% of the total.Qualifying investments as at 30th June, 2008 had risen to 55.24% of the total.
Since the half year end, the Market, and in particular AIM shares, has continued to fall sharply and by the 15th September, 2008, the date on which this report was written, the net asset value of your fund on a mid market basis had slipped further to 66.7p. Since the half year end, the Market, and in particular AIM shares, has continued to fall sharply and by the 15th September, 2008, the date on which this report was written, the net asset value of your fund on a mid market basis had slipped further to 66.7p.

 

Despite the demise of CKS, your fund has outperformed the FTSE AIM Index over the 6 months to the 15th September, 2008 and has outperformed that Index since the inception of the fund.
Looking to the future, it may seem odd to be optimistic when there is so much doom and gloom around.Looking to the future, it may seem odd to be optimistic when there is so much doom and gloom around.
However, your fund is in the main, invested in profitable companies and the ratings on many of their shares is now exceptionally low. There is very little exposure to sectors that are vulnerable to a consumer downturn, such as retailing or housebuilding. We have all heard about buying low and selling high and while the current low levels may not prove to be the bottom, I cannot help feeling that the AIM market is currently attractive to the longer term investor and that it will test it's recent highs over the next few years.However, your fund is in the main, invested in profitable companies and the ratings on many of their shares is now exceptionally low. There is very little exposure to sectors that are vulnerable to a consumer downturn, such as retailing or housebuilding. We have all heard about buying low and selling high and while the current low levels may not prove to be the bottom, I cannot help feeling that the AIM market is currently attractive to the longer term investor and that it will test it's recent highs over the next few years.
As I write, a return to the high reached in July, 2007 would represent a 72.1% advance. Even over a 5 year term, this would equate to a very attractive return.As I write, a return to the high reached in July, 2007 would represent a 72.1% advance. Even over a 5 year term, this would equate to a very attractive return.
The outperformance of the fund since inception is largely due to the dedication, hard work and skills of the investment team at M D Barnard & Co Ltd and I would like to thank them in this respect. The outperformance of the fund since inception is largely due to the dedication, hard work and skills of the investment team at M D Barnard & Co Ltd and I would like to thank them in this respect.

 
John Brice
Chairman
 
22 September 2008
 
New Century AIM VCT2 plc              
For the six months to 30 June 2008
Unaudited Balance Sheet.
                 
Interim Accounts Final Accounts Interim Accounts
as at 30 June 2008 as at 31 December 2007* as at 30 September 2007
£'000   £'000 £'000   £'000 £'000   £'000
Fixed Assets
Investments 3,829 5,323 5728
Current Assets
Sundry Debtors 0 0
Uninvested cash 346 346 24 24
Current Liabilities
Creditors: amounts due
within one year -16 -15 -26
4,159 5,332 5702
Capital and Reserves
Share Capital 574 574 574
Share Premium 5,100 5,100 5107
Capital reserve - realised 32 0 1
Capital reserve - unrealised -1,545 -382 1
Revenue reserve -2 40 19
4,159 5,332 5702
 
Asset Value per share 72p 93p 99p
*Audited accounts
 
  New Century AIM VCT2 plc                      
For the six months to 30 June 2008
Unaudited Income Statement
(incorporating the revenue account)
                                     
  6 mth period ended 30 June 2008 Year to 31 December 2007* 6 mth period ended 30 September 2007
Revenue Capital Total Revenue Capital Total Revenue Capital Total
        £'000   £'000   £'000 £'000   £'000   £'000 £'000   £'000   £'000
Gains on investments
Realised 0 53 53 0 8 8 0 13 13
Unrealised 0 -1,163 -1,163 0 -347 -347 0 15 15
Income 24 0 24 96 0 96 62 0 62
Investment management fees -7 -21 -28 -13 -39 -52 -9 -26 -35
Other expenses     -14   0   -14 -37   0   -37 -30   0   -30
Return on ordinary activities 3 -1,131 -1,128 46 -378 -332 23 2 25
Tax on ordinary activities     0   0   0 -6   -4   -10 -5   0   -5
Return on ordinary activities 0
after taxation       3   -1,131   -1,128 40   -382   -342 18   2   20
Return per ordinary share in pence 0.06   -19.69   -19.63 0.89   -8.56   -7.67 0.33   0.03   0.36
 
*Audited Accounts
 
All revenue and capital items in the above statement derive from continuing operations.
The company has only one class of business and derives its income from investments in shares and securities, and
from bank and money market funds.
There were 5,745,530 ordinary shares in issue throughout the period.
 
New Century AIM VCT2 plc                      
For the six months to 30 June 2008
Unaudited Cash Flow Statement
                       
6/30/2008 31/12/2007* 9/30/2007
£'000     £'000 £'000     £'000 £'000     £'000
 
Operating activity: Net cash outflow -42 -83 -66
 
Returns on investments
Interest received 14 64 61
Investment income 10 24 32 96 1 62
 
 
Taxation 0 0 -4
 
Dividend paid -45 0 0
 
Financial investment
Sale of investments 1,034 1,033 330
Purchase of investments -650 384 -6,696 -5,663 -6,029 -5,699
     
Net cash inflow/(outflow) before financing 321 -5,650 -5,707
Net proceeds of share issue 5,674 5,681
Sundry Creditors     22
321 24 -4
 
Increase in univested cash with broker 321 24 -4
 
*Audited Accounts
 
New Century AIM VCT2 plc          
Investment Portfolio Summary
 
           
Security Cost Valuation %
  £   30/06/2008    
 
Qualifying Investments 3,372,348 2,306,062 55.24
Non-qualifying Investments 1,967,145 1,522,578 36.46
Uninvested funds 346,193   346,193   8.30
5,685,686   4,174,832   100.00
 
 
Qualifying Investments
AIM Listed
St Helens Capital plc 151,504 165,000 3.95
Bglobal plc 170,850 86,700 2.08
Coolabi plc 126,630 77,700 1.86
IS Pharma plc 301,500 332,143 7.96
Western & Oriental plc 30,150 17,250 0.41
Sirvis IT plc 64,804 81,676 1.96
EBTM plc 405,770 323,000 7.74
Essentially Group plc 145,726 98,226 2.35
Cantono plc 301,500 132,000 3.16
HML Holdings plc 271,350 150,000 3.59
Clerkenwell Ventures 100,500 66,667 1.60
Sports Media Group plc 125,625 27,500 0.66
Southern Bear 301,500 187,500 4.49
Kurawood plc 150,750 94,500 2.26
Boomerang Plus plc 238,185 262,500 6.29
Corac Group plc 82,310   167,700   4.02
2,968,654   2,270,062   54.37
Plus Markets listed
General Medical Clinics plc 37,371 36,000 0.86
CKS Group plc 366,323   -   0.00
403,694   36,000   0.86
 
Total Qualifying Investments 3,372,348 2,306,062 55.24
 
New Century AIM VCT2 plc        
Investment Portfolio Summary
 
           
Security Cost Valuation %
  £   30/06/2008    
 
 
Non Qualifying Investments
UK listed
EAGA plc 22,801 16,350 0.39
HBOS plc 216,165 163,125 3.91
Norcros plc 31,356 7,500 0.18
Superglass Hldgs plc 45,225 18,500 0.44
Investec Perpetual 477,227 278,500 6.67
Record plc 30,150 17,813 0.43
Celsis International 30,705   31,600   0.76
853,629   533,388   12.78
AIM listed
K3 Business Technology 34,972 32,500 0.78
NetDimensions Ltd 31,155 4,800 0.11
Ashley House plc 39,644 38,750 0.93
Microemissive Displays 49,046 26,500 0.63
Private & Commercial 17,688 16,000 0.38
DCD Media 60,300 18,000 0.43
Neutrahealth plc 30,459 18,125 0.43
Eco City Vehicles 15,530 27,000 0.65
ILX Group 30,099 16,250 0.39
Sanderson Group 43,080 31,050 0.74
Pactolus Hungarian Prop 10,616 9,250 0.22
Education Dev Int 17,383 16,500 0.40
Lincat Group plc 30,806 28,675 0.69
Fishworks plc 30,150 26,250 0.63
Purecircle Ltd 29,045 33,490 0.80
AT Communications Group 41,815 31,050 0.74
Tristel plc 164,820 176,000 4.22
Shed Media plc 19,755 21,000 0.50
China Eastsea Business Software 12,564   11,500   0.28
708,927   582,690   13.95
 
UK Government Loans
Treasury 21/2% 2009 404,589   406,500   9.74
404,589   406,500   9.74
 
Total Non Qualifying Investments 1,967,145 1,522,578 36.46
 
  New Century AIM VCT2 plc
 
Notes to the Accounts
 
 
1

This interim financial information and the unaudited interim accounts for the six months to 30 June 2008 from which it has been extracted, are the responsibility of the directors and were approved by them on 22 September 2008, do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985 and have not been delivered to the Registrar of Companies.

 
2

The Company is an investment company as defined in Section 266 of the Companies Act 1985. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of fixed asset investments, and in accordance with applicable accounting standards in the UK and with the Statement of Recommended Practice “Financial statements and investment trust companies” issued in January 2003 and revised in December 2005.

 
3 Listed or AIM-traded investments are stated at market value, which is based upon market bid prices
at the balance sheet date.at the balance sheet date.
 
4 5,745,530 Ordinary Shares of 10 pence each were in issue throughout the period under review.
 
5 Net Asset Value per share at 30 June 2008 was 72p (at 31 December 2007: 93p; 30 September 2007 99p).
 
6 The final dividend in respect of 2007 amounting to £45,964 was paid on 13 June 2008.
 
7

Copies of the Interim Report to Shareholders have been sent to shareholders and are available at the Company’s Registered Office: 17/21 New Century Road, Laindon SS15 6AG or from Woodside Corporate Services, 4th Floor, 150-152 Fenchurch Street, London EC2M 6BB.

 
New Century AIM VCT2 plc    
 
Directors, Investment Manager and Advisors
 
Directors John Roger Simpson Brice (Chairman)
Michael David Barnard
Geoffrey Charles Gamble
Robin William Kirby
Peter William Riley
 
Secretary Woodside Secretaries Ltd
and registered office 4th Floor, 150-152 Fenchurch Street
London EC2M 6BB
 
Investment Manager and Broker MD Barnard & Co Ltd
17-21 New Century Road
Laindon
Essex SS15 6AG
 
Solicitors Dundas & Wilson LLP
5th Floor Northwest Wing
Bush House
London WC2B 4EZ
 
Registrars Neville Registrars
18 Laurel Lane
Halesowen
B63 3DA
 
Auditors and VCT status advisors UHY Hacker Young LLP
Quadrant House
17 Thomas More Street
Thomas More Square
London E1W 1YW
 
Bankers Bank of Scotland
New Uberior House
11 Earl Grey Street
Edinburgh EH3 9BN

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