Interim Management Statement

RNS Number : 8545U

Amati VCT 2 plc

05 December 2013

AMATI VCT 2 PLC

INTERIM MANAGEMENT STATEMENT

FOR THE PERIOD FROM 1 MAY 2013 TO 31 OCTOBER 2013

To the members of Amati VCT 2 plc

This interim management statement, which relates to the period from 1 May 2013 to 31 October 2013 and contains information up to the date of release of the statement, has been prepared solely to provide additional information to shareholders 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 statement also 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. It should therefore be treated with caution due to the inherent uncertainties of the effect of both economic and business risk factors in considering forward-looking information.

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 May 2013 to 31 October 2013

The NAV (Total Return) increased 8.2% over the period under review. This compares with a gain of 12.7% in the FTSE AIM All-Share Total Return Index. The broadening of ISAs to include AIM listed stocks had a major beneficial impact on the benchmark index across the period. Fundraising activity has stepped up significantly within AIM, and the fund currently has a diverse pipeline of attractively valued, good quality investment opportunities.

Positive contributions to performance came from a range of portfolio companies. Animal feed additives producer, Anpario, announced strong interim results in September and remains well placed for the structural growth in global agricultural markets. Quixant, an IT platform provider for gaming and slot machine manufacturers, followed up a successful IPO in May with strong results. Other stocks benefiting from trading updates included Universe, a provider of payment and loyalty systems for petrol forecourts and retailers; Tasty, the restaurant operator; and Sabien, a provider of commercial boiler energy management technology.

Detractors from performance included Frontier, a developer of video games including the longstanding "Elite" space flight simulator, which was weak following its July IPO despite supportive newsflow. Keywords, a provider of technical services to the video gaming industry, was impacted by Microsoft announcing a freeze on development work while it launches its new Xbox. These deferred revenues should, however, be recovered in 2014. MyCelx, which provides clean water technology services to heavy industry, announced some project deferrals in its half year results and the shares weakened after a strong run.

The only addition to the portfolio during the period was a non-qualifying holding in London focused estate agent Foxtons, which made a strong IPO debut in September reflecting the buoyancy in its market. Exits were made from a variety of smaller qualifying holdings to raise funds for reinvestment, including Vianet, UBC Media, Inditherm, Fulcrum Utility and Brainjuicer.

	As at 31 October 2013	As at 30 April 2013
	("unaudited")	("unaudited")
Total Net Asset Value ("NAV")	£32.7m	£31.0m
Shares in issue	27,553,313	27,752,387
NAV per share **	118.7p	111.6p

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

The top ten investments in the Company's portfolio are listed below.

Top ten holdings as at 31 October 2013

	Percentage of
	the fund's net
	asset value as at
	31 October 2013
Accesso Technology Group plc (formerly Lo-Q plc)	6.3
Prezzo plc	5.1
IDOX plc	4.2
Anpario plc	4.1
Brooks Macdonald Group plc	3.9
MyCelx Technologies Corporation	3.6
Polyhedra Group plc	3.6
Fox Marble Holdings plc	3.0
Quixant plc	2.9
TLA Worldwide plc	2.8
	39.5