Interim Results - 6 Months to 31 August 1999

Advent 2 VCT PLC
5 November 1999


Interim report for the half year ended 31 August 1999
(Unaudited)

Objective

The objective of Advent 2 VCT is to provide investors with an
attractive return, principally by maximising the stream of
dividend distributions from the income and capital gains
generated by a portfolio of investments mainly in established
unquoted companies in the United Kingdom.

Highlights

-    Advent 2 VCT now holds 7 investments in Qualifying
     Companies (including two new investments completed since
     31 August 1999) at a total cost of £6.5 million.

                            Half year   Year ended       Period
                                ended  28 February        ended
                            31 August         1999    31 August
                                 1999                      1998
                          (unaudited)               (unaudited)
                                                               
Revenue return per                                             
ordinary share                   1.3p         3.3p         1.6p
Total dividends per                                            
ordinary share                                                 
(*equivalent for                                               
shareholders entitled                                          
to gross dividend)               1.0p       *3.75p       *1.75p

Net asset value per                                            
ordinary share                  94.6p        95.6p        95.0p

-    An interim dividend of 1.0p per ordinary share has been
     declared and will be payable on 10 December 1999 to
     shareholders on the register on 19 November 1999.
     
-    The Board expects that a further dividend will be made in
     respect of the year ending 28 February 2000 of 1.0p per
     share, making a total payment for the year of 2.0p per
     share.
     
-    At the date of this report one further investment has
     been approved and is in an advanced stage of legal
     negotiation. A considerable number of additional
     investment opportunities are currently the subject of
     detailed review by the Manager. The company has until 28
     February 2001 to meet the minimum requirement to invest
     70% of the net funds raised invested in Qualifying
     Holdings. The Board is encouraged by the range and
     quality of the opportunities now under review.

Venture Capital Trust status

Advent 2 VCT has been granted provisional approval under
section 842 AA of the Income and Corporation Taxes Act 1988
and it is intended that the business of the company be carried
on so as to comply with that section.

Chairman's Statement

This interim report of Advent 2 VCT covers the half year ended
31 August 1999.

Progress in investment

To the date of this announcement seven investments have been
completed in Qualifying Companies at a total cost of £6.5
million (the two new investments in the current year having
been completed since 31 August 1999 at a cost of £1.9
million).

The two new investments - in Interactive Displays Limited and
Vectorcommand Limited - are development-stage financings, the
investment in Vectorcommand taking the form of a management
buy-out. Details of these investments are set out on page 4.

The cost of the seven investments completed to date represents
20% of the net funds raised by Advent 2 VCT in the offer for
subscription.

At the date of this report one further investment has been
approved and is in an advanced stage of legal negotiation. A
considerable number of additional investment opportunities are
currently the subject of detailed review by the Manager. The
company has until 28 February 2001 to meet the minimum
requirement to invest 70% of the net funds raised invested in
Qualifying Holdings. The Board is encouraged by the range and
quality of the opportunities now under review.

Management team

In the Manager's Review in the Annual Report, reference was
made to the expansion of the management team with two new
appointments. This expansion has now been completed with two
further appointments at a more senior level, Peter Baines and
Patrick Lee joining as additional investment directors of
Advent 2 Fund Managers Limited. Peter Baines, who was
previously an investment director with another venture capital
firm, will specialise in technology investments, while Patrick
Lee has senior business experience in the pharmaceutical
industry and joins the healthcare team.

Dividend

In my Chairman's Statement in the Annual Report I indicated
that after the first accounting period to 28 February 1999,
dividend income to shareholders was likely to decline in the
short term as the portfolio of Qualifying Holdings was built
up.

The Board has declared an interim dividend of 1.0p per share
for the period to 31 August 1999. This interim dividend will
be paid on 10 December 1999 to shareholders on the register at
the close of business on 19 November 1999.

Balance sheet

The net asset value per share at 31 August 1999 was 94.6p,
compared with 95.6p at 28 February 1999.

Venture capital investments have been valued in accordance
with British Venture Capital Association guidelines, under
which unquoted investments are not normally revalued above
cost for at least 12 months after the date of acquisition. The
marginal decline in the net asset value per share reflects
movements in the valuations of the company's holdings of fixed-
interest securities - which are included in the balance sheet
at market values although generally intended to be held to
maturity - and the fact that part of the investment management
fee has been charged to capital, in line with the policy set
out in the prospectus.

The proposals set out in the Annual Report for the reduction
of the company's share premium account were approved by
shareholders at the Annual General Meeting and by the Court.
This has created a distributable reserve which will be
available for use by the company for occasional market
repurchases of its own shares.

The Board is pleased with the progress being made by the
companies in which Advent 2 VCT has invested.  Since 31 August
1999 XKO Group plc has moved up from AIM to the Official List
of the London Stock Exchange and more recently has announced
the launch of a new e-commerce product. Market reaction has
been highly positive and, at the date of this report, this
investment has appreciated by 46% compared to the valuation at
31 August 1999.

Outlook

It is expected that Advent 2 VCT's income in the second half
of the year to 28 February 2000 will be further reduced
compared with the period to 31 August 1999, as additional
funds are committed to venture capital investment.  However,
the Board expects that, if current short-term interest rates
prevail, the recommended final dividend for the year ending 28
February 2000 will be not less than 1.0p per share, making a
total payment for the year of 2.0p per share.

In the medium to longer term, dividends paid by Advent 2 VCT
will be derived principally from the gains arising on
successful realisations of investments for cash.

ROGER BROOKE
Chairman


New investments

Since the last year end Advent 2 VCT has completed 2 new
investments at a cost of £1.9 million. The new investments
are:

Interactive Displays Limited - a £900,000 investment in a
development stage financing which has been completed since 31
August 1999. Interactive Displays, which is based in
Wallingford, Oxfordshire, designs and manufactures large touch
sensitive computer display screens. The financing enables the
company to expand its marketing operations and fund ongoing
development of existing and new products. The transaction was
arranged by Advent 2 Fund Managers.

Vectorcommand Limited - a £1.0 million investment as part of a
£2.5 million management buy-out, which has been completed
since 31 August 1999. Vectorcommand, which is based in Havant,
Hampshire, specialises in computer based training systems that
simulate emergency incidents, in particular, fire officer
command and control. The financing provides funds for the buy-
out of the business from its former parent and working capital
to expand sales and marketing. Advent 2 VCT invested alongside
Barclays Ventures and a private investors group.

Statement of Total Return (incorporating the Revenue Account)
of the company for the half year ended 31 August 1999
(unaudited)

                            Half year to             Period to
                          31 August 1999         31 August 1998*
                                                                     
                    Revenue  Capital  Total  Revenue   Capital   Total
                      £'000    £'000  £'000    £'000     £'000   £'000
                                                                       
(Losses)/gains                                                      
on investments           -     (266)  (266)       -        30       30
                                                                     
Income                 901        -    901    1,005         -    1,005
                                                                     
Investment                                                          
management fees       (115)    (294)  (409)     (67)     (161)    (228)
                                                                       
Other expenses        (118)       -   (118)     (96)        -      (96)
                     ------    -----  -----   ------    ------   ------
Return on                                                            
ordinary                                                           
activities                                                         
before taxation        668     (560)   108      842      (131)     711
                                                                     
Tax on ordinary                                                     
activities            (202)      89   (113)    (261)       50     (211)
                      ------   -----  -----    -----    ------   ------
Return                                                               
attributable to                                                    
equity                                                             
shareholders           466     (471)    (5)     581       (81)     500
                                                                       
Dividends on ordinary                                               
shares:
                                                                     
- interim                                                            
proposed /paid                                                     
1.0p per                                                           
ordinary share                                                     
(1998: 1.4p,                                                       
equivalent to                                                      
1.75p gross)           (350)      -   (350)    (490)        -     (490)
                       -----   -----  -----    -----     -----    -----
                                                                     
Transfer to                                                          
reserves                116    (471)  (355)      91       (81)      10
                       -----   -----  -----    -----     -----    -----
                                                                       
Return per                                                          
ordinary share          1.3p   (1.3)p     -     1.6p     (0.2)p    1.4p
                       -----   -----  -----    -----     -----    -----
                                                                     

The revenue column of this statement is the profit and loss
account of the company.

All revenue and capital items in the above statement derive
from continuing operations.

No operations were acquired or discontinued in the period.

Income from investments is taken to the revenue account on an
accruals basis. In particular, income from gilts and other
fixed interest securities intended to be held to maturity is
stated after amortisation of a due proportion of the premium
or discount to nominal value at which the security was
purchased.

As indicated in the prospectus, the management fee receivable
by Advent 2 Fund Managers Limited is charged 25% against
revenue and 75% against Capital reserve - realised.

*The company was incorporated on 3 February 1998 and commenced
business on 16 March 1998.

Balance Sheet at  31 August 1999 (unaudited)

                                     31 Aug     28 Feb      31 Aug
                                       1999       1999        1998
                                      £'000      £'000       £'000
Fixed assets                                                
Unlisted investments                                        
  Investments quoted on AIM             713        625           -
  Unquoted investments                4,001      4,001       1,000
Listed investments                                                
  Fixed income                       24,419     27,809      29,593
                                  ---------   ---------    --------
                                                                  
                                     29,133     32,435      30,593
Current assets                                                    
Debtors                               1,991      1,480       1,571
Cash                                  4,712        880       2,023
                                  ---------   --------    --------
                                                                  
                                      6,703      2,360       3,594
Current liabilities: amounts                                      
falling due within one year
Interim dividend payable                350        560         490
Advance corporation tax on                -        140         123
dividend
Corporation tax                         502        389         211
Other creditors                       1,870        149         103
                                   --------   --------     -------
                                                                  
                                     (2,722)    (1,238)       (927)
                                   --------   --------     -------
Net current assets                    3,981      1,122       2,667
                                   --------   --------     -------
                                                                  
Total assets less current            33,114     33,557      33,260
liabilities
                                                                  
Provisions for liabilities                -        (88)          -
and charges
                                                                  
                                                                  
                                     33,114     33,469      33,260
                                   --------   --------     -------
                                                                  
Capital and reserves                                              
Called-up share capital               1,750      1,750       1,750
Share premium account                22,750     31,500      31,500
Other reserves                                                    
 - Distributable reserve              8,750          -           -
 - Capital reserve -                   (498)      (294)       (111)
   realised
 - Capital reserve -                    147        414          30
   unrealised
Revenue reserve                         215         99          91
                                   --------    -------     -------
                                                                  
Shareholders' funds                  33,114     33,469      33,260
                                   --------    -------    --------
                                                                  
Net asset value per ordinary           94.6p      95.6p       95.0p
share
                                   --------    -------    --------
                                                            

Reconciliation of movements in shareholders' funds
for the half year to 31 August 1999 (unaudited)

                                    £'000      per share p
Return attributable to equity                             
shareholders
- revenue                             466             1.3
- capital                            (471)           (1.3)
                                   -------          ------
                                       (5)              -
                                                          
Dividends on equity shares                                
(1.0p per share)                     (350)           (1.0)
                                   -------         -------
                                              
Net reduction to                                          
shareholders' funds                  (355)           (1.0)
                                              
Opening shareholders' funds        33,469            95.6
                                  --------        --------
                                          
                                                          
Closing shareholders' funds        33,114            94.6
                                  --------        --------
                                              

Notes

1.   The above financial information has been prepared on the
     basis of the accounting policies set out in the Annual
     Report.
     
2.   The above financial information for the half year to 31
     August 1999 does not represent statutory accounts in
     accordance with section 240 of the Companies Act 1985.
     
3.   The interim report will be sent to shareholders and
     copies will be available from the registered office of
     the company, 25 Buckingham Gate, London SW1E 6LD.
     
4.   Application made to HM Customs and Excise for the
     inclusion of the company within a VAT group with its
     subsidiary Advent 2 Fund Managers Limited (the Manager)
     has been disallowed. The potential liability to the
     Manager for VAT on investment management and secretarial
     fees for the period ended 28 February 1999 was fully
     provided for in the accounts at that date; this amount,
     together with the liability arising in the half year to
     31 August 1999, has now been included in creditors.
     
5.   Number of shares in issue 35,000,200 (1998 35,000,200).
     
6.   In accordance with proposals approved by shareholders at
     the Annual General Meeting and by the Court, the share
     premium account has been reduced from £31,500,000 to
     £22,750,000 and a distributable reserve of £8,750,000 has
     been created.

Contacts for information:

Advent 2 Fund Managers Limited:

Sir David Cooksey          0207-630 9811
Martin Williams

Polhill Communications:
Julian Polhill             0207-369 9333

5 November 1999