Interim Management Statement

Baronsmead VCT 2 plc                              

                         Interim Management Statement                          

For the 3 month period from 1 October 2012 to 31 December 2012.

Headlines

+5.2 %         Increase in Net Asset Value per share                         
                                                                            
£4.73 million  Raised (net of expenses) from 832 shareholders                 
                                                                            
7.5%           Tax free dividend yield for qualifying shareholders for the 12
               month period to 31 December 2012                              

  

Performance Summary

Capital return         As at         As at         Movement                         
                       31 Dec 2012   30 Sep 2012                                   
                                                                                                             
Total net assets       £80.21m       £72.43m                                     
                                                                              
Net asset value per    106.32p       101.10p       5.2%                             
share                                                                         
                                                                              
Share price            100.13p       90.00p        11.3%                            
                                                                              
Discount to NAV       (5.8%)        (11.0%)                                     
                                                                              
                       3 month(%)    1 year(%)     5 year(%)   10 year(%)   Since launch(%)
Net asset value        
total return(1)        5.16          15.54         29.59       129.34       165.04      
                                                             
Key:

(1) NAV total return = NAV + reinvested dividends; Source: ISIS EP LLP

These total returns are stated before the inclusion of VCT tax reliefs which 
are designed to mitigate the higher risks and costs associated with investing 
in smaller companies and the constraints of the VCT legislation. The tax reliefs 
given at the time of subscription have varied between 20% and 40%, so any 
adjusted performance measure including this relief will vary depending on the 
date of subscription. There is also the additional ongoingbenefit of receiving 
VCT dividends tax free.

Investment Performance 

The Net Asset Value increased by 5.2% during the three months to 31 December
2012. Over the quarter the unquoted portfolio valuation increased by 1.4%, the
AIM portfolio increased in value by 12.6% and Wood Street Microcap Fund 
increased by 8.2%.

Top Ten Investments 

Position at   Position at                                     Percentage of NAV 
31 Dec 2012   30 Sep 2012    Company                          as at 31 Dec 2012
                                                                
1             2              IDOX plc                                       6.5
                                                                             
2             1              Nexus Vehicle Holdings Limited                 5.9
                                                                             
3             3              CableCom Networking Holdings                   5.4
                             Limited                                            
                                                                             
4             6              Independent Living Services                    4.1
                             Limited                                            
                                                                             
5             4              Crew Clothing Holdings Limited                 3.8
                                                                             
6             5              Kafevend Holdings Limited                      3.7
                                                                              
7             9              Staffline Group plc                            3.4
                                                                             
8             8              CSC (World) Limited                            3.0
                                                                             
9             10             Valldata Group Limited                         2.2
                                                                             
10            7              Fisher Outdoor Leisure Holdings                2.1
                             Limited                                            
                                                                             
Total                                                                      40.1

Analysis of Total Assets

                                           Percentage of          Percentage of
                                         total assets at        total assets at         
                                             31 Dec 2012            30 Sep 2012             
                                                          
Unquoted investments                                  46                     51
                                                                               
AIM, listed & collective                              37                     36
investment vehicle                                                             
                                                                               
Listed interest bearing                             3                      8    
securities                                                                     
                                                                               
Net current assets                                 14                      5    
                                                                               
Total liquid assets                                   17                     13
                                                                               
Total assets                                         100                    100

Analysis of Investment Portfolio by Sector

(excluding liquid assets)

                                           Percentage of          Percentage of
                                    total investments at   total investments at 
                                             31 Dec 2012            30 Sep 2012

Business Services                                     34                     34
                                                                               
Consumer Markets                                      17                     19
                                                                               
Financial Services                                     2                      2
                                                                               
Healthcare & Education                                15                     14
                                                                               
Technology, Media &                                   32                     31
Telecommunications                                                             
                                                                               
Total                                                100                    100


Investment Activity

During the period a total of approximately £0.6m was invested in three follow
on investments in the AIM traded companies listed below:

Investments made                                Date                Cost (£'000)
                                                                     
Accumuli plc                                    Nov 2012                     57
                                                                     
Tangent Communications plc                      Nov 2012                    215
                                                                     
Hangar8 plc                                     Dec 2012                    344
                                                                     
Total investments                                                           616

During the period one AIM investment, IDOX plc, was partially realised. In
addition two unquoted investments, Impetus Holdings Limited and MLS Limited,
were partially redeemed.

Realisations                                                                  
                                                                              
Company                          Date           Cost      Proceeds     Multiple
                                              (£'000)     (£'000)                           
                                                                                   
IDOX plc                         Nov 2012        118         594           5.03
                                                                              
Impetus Holdings Limited         Dec 2012         18          18           1.00
                                                                              
MLS Limited (partial loan note   Oct/Nov 2012    118         118           1.00
redemption)                                                                   
                                                                              
Total realisations                               254         730           

Fundraising Update

The Company issued a prospectus on 20 November 2012 to raise up to £5 million
(before expenses). The Offer closed on 17 December 2012, raising £4.725 million
after expenses from 426 existing shareholders and 406 new shareholders
(comprising 231 shareholders who had previously invested in the other
Baronsmead VCTs and 175 investors new to the Baronsmead VCTs).

Net Asset Value as at 31 January 2013

After taking account of the final dividend of 5.0p per share that was paid on
18 January 2013, the net asset value as at 31 January 2013 was 103.26p per
share.

Investment objective

Baronsmead VCT 2 is a tax efficient listed company which aims to achieve
long-term investment returns for private investors, including tax free
dividends.

Events after the period end

Other than the events described above, the Board is not aware of any
significant events or transactions which have occurred between 1 January 2013
and the date of publication of this statement which would have a material
impact on the financial position of the Company.

Further information 

Further information regarding the Company, including net asset values published
since the end of the period and quarterly factsheets, can be found at the
Company's website www.baronsmeadvct2.co.uk

Contact

For further information please contact:
Michael Probin     
VCT Investor Relations Director     
020 7506 5600   
[e-mail]