Interim Management Statement

RNS Number : 6818T

Amati VCT 2 plc

17 December 2012

 

Amati VCT 2 plc

INTERIM MANAGEMENT STATEMENT

FOR THE PERIOD FROM 1 AUGUST 2012 TO 31 OCTOBER 2012

To the members of Amati VCT 2 plc

This interim management statement has been prepared solely to provide additional information to the shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules, and should not be relied on by any other party or for any other purpose.

This interim management statement considers the future of the fund and, as such, forward-looking assertions have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report.  This statement should therefore be treated with due caution due to the inherent uncertainties of the effect of both economic and business risk factors in considering forward-looking information.

This interim management statement relates to the period from 1 August 2012 to 31 October 2012 and contains information that covers this period and up to the date of publication of this interim management statement. 

Our operations

The objective of Amati VCT 2 plc ("the Company") is to provide shareholders with an attractive and competitive investment return from a portfolio of companies whose shares are primarily traded on the Alternative Investment Market ("AIM").  The Manager's continuing objective is to manage the current portfolio so as to maximise returns for investors for the qualifying period and beyond.

Performance during the period from 1 August 2012 to 31 October 2012

During the period under review the NAV Total Return per share rose by 2.1% against a benchmark (FTSE AIM All Share Total Return Index) rise of 4.6%.  The announcement of further Quantitative Easing from the US Federal Reserve, improved data from China, and falling Eurozone bond yields all contributed to positive market performance.

There were no stand-out performers in the portfolio over the period but solid gains were posted by Belvoir Lettings, Asian Citrus, Corac and Anpario.  Conversely, we made a further write-down in the VCT's loan to Music Festivals, which was put into administration and is now in the process of selling its assets - the sale of Benicassim, its flagship festival, was recently announced to the market.  Futura Medical was weak following the termination of its commercial agreement with Reckitt Benckiser.  The company is now seeking alternative partners for the marketing of its flagship product and, in the meantime, has taken control of manufacturing. 

A VCT qualifying convertible loan and equity investment was completed in Fox Marble, which recently announced the opening of its first quarry in Kosovo.  Frustratingly, the company has also received a notification from the Independent Commission for Mines and Minerals purporting to annul a number of its licences (not including the one for its initial quarry).  We understand that this notification was issued unlawfully, and is the result of a local political wrangle, and, we are advised, it should be resolved early next year.  Two non-qualifying investments of note were also made. We bought a position in Amerisur, an oil and gas exploration and production company with producing assets in Columbia, as it raised money to enable it to bid for a licence over an adjacent exploration block, which they subsequently won.  Similarly, we added to our holding in Entertainment One, an existing holding, as the company raised money to fund the acquisition of Alliance Films, a leading independent distributor of films based in Canada.  We exited Anglo Pacific, New Britain Palm Oil and Staffline.   

	As at 31 October 2012	As at 31 July 2012
	("unaudited")	("unaudited")
Total Net Asset Value ("NAV")	£28.1m	£28.4m
Shares in issue	27,541,921	27,736,452
NAV per share *	102.0p	102.4p

* taking account of amounts receivable or chargeable to the VCT's income account.

 The top ten investments in the Company's portfolio as at 31 October 2012 are listed below.

	Percentage of
	the fund's net
	asset value as at
	31 October 2012
Lo-Q plc	5.5
IDOX plc	4.8
EcoData Group plc	4.4
Brooks Macdonald Group plc	4.3
Asian Citrus Holdings Limited	3.3
Fox Marble Holdings plc	3.1
Prezzo plc	3.1
Synergy Health plc	3.1
Zytronic plc	2.6
Tikit Group plc	2.6
	36.8

Detailed monthly updates on portfolio activity and performance are posted on the Amati Global Investors website (see http://www.amatiglobal.com).   

For further information please contact Doreen Nic on 0131 243 7215 or email

[e-mail].

17 December 2012

 

END

 

 

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