Interim Results

AIM VCT2 PLC 19 July 2002 To: RNS From: AiM VCT2 plc Date: 19 July 2002 Investment Objective AiM VCT2 plc aims to provide shareholders with a tax efficient means of gaining long term capital growth and an attractive dividend stream through investment in a diversified portfolio of AiM companies and unquoted companies which anticipate a stock market listing within 18 months. Interim Results - Period Ended 31 May 2002 • Net asset value per share of 86.01 pence. • Twelve new investments made. • Interim dividend of 1.10 pence per share. The Chairman, Gordon Brough said: 'The Company has seen a reduction in its net asset value (NAV) to 86.01 pence per share compared with 95 pence per share at 30 November 2001 . While this is disappointing the Company's liquidity has offered some protection in very difficult market conditions. The market has been falling steadily since the spring of the year 2000 and the past two years has turned out to be an inhospitable investment environment. This has particularly affected investors in companies at the smaller end of the market which is suffering from historically low levels of liquidity as well as general investor apathy. VCT investment criteria focus on investment in smaller companies and, as a result, AiM VCT2 is investing in companies at the lower end of the market capitalisation scale. This area is suffering most in the market down-turn. Despite this the Board are encouraged that at the end of May the Company's NAV had fallen just 9.5% since launch compared to the FTSE AIM Index which was down 43% over the same period. Many of the holdings within the portfolio are making progress with their business plans although this is not always reflected in their valuations by the market. However, some have experienced setbacks or delays, which has resulted in a reduction in their valuations by the market. In addition, the value of the unquoted portion of the portfolio has fallen during the period due to write-downs having to be made against some of the holdings. Whilst we cannot expect all companies to progress at the same rate, and some will undoubtedly find the economic climate testing, the portfolio includes some interesting and exciting growth opportunities which we hope will fulfil their potential in the long term. Earnings and Dividends I As with last year revenue earned during the period came predominantly from a fixed interest government security and amounted to £0.9 million. This revenue has enabled the Board to declare an interim dividend of 1.1 pence per share to be paid to shareholders on 16 August 2002. Investment Programme I The Managers continued with their cautious approach to the investment programme, investing £5.5 million across twelve new holdings for the portfolio. Since the launch of AiM VCT2 a total of £16 million has been invested, which equates to 39.9% of the net proceeds of the Company's fundraising, and reflects a combination of a cautious approach on the part of the Managers and a lower level of acceptable deals going through the market. They feel that an improvement in market conditions would lead to an increase in corporate activity however, even with the current difficult investment climate, the Board is satisfied with the rate of investment for VCT qualifying purposes. To finance the investment programme the Company's holding in a fixed interest security was reduced during the period. Even after this AiM VCT2 has substantial liquid assets of £22.3 million available for investment. Outlook I World events and an uncertain economic environment continue to weigh heavily on stock markets generally. With this in mind, the AiM market is likely to remain volatile and prone to knocks from extraneous events until there is an improvement in investor sentiment and trust in the stock markets. Given its cash and fixed income resources AiM VCT2 is in a strong position to take advantage of this situation. The new issue market on AiM is alive, although not to the extent seen in previous years, and the Mangers are seeing a satisfactory flow of investment opportunities.' Enquiries: Robert Mitchell/Bill Brown Investment Manager Friends Ivory & Sime plc Tel: 0207 506 1100 Unaudited Statement of Total Return (incorporating the revenue account) of the Company Six Months to 31 May 2002 Revenue Capital Total £'000 £'000 £'000 Loss on investments - (3,547) (3,547) Ordinary shares purchased for cancellation - (103) (103) Income 907 - 907 Investment management fee (108) (326) (434) Other expenses (140) - (140) Return on ordinary activities before tax 659 (3,976) (3,317) Tax on ordinary activities (117) 49 (68) Return attributable to Equity shareholders 542 (3,927) (3,385) Dividends in respect of equity shares (458) - (458) Transfer to/(from) reserves 84 (3,927) (3,843) Return per ordinary share: 1.30p (9.42)p (8.12)p Unaudited Statement of Total Return (incorporating the revenue account) of the Company Period from 3 October 2000 to 31 May 2001 Revenue Capital Total £'000 £'000 £'000 Gain on investments - 409 409 Income 1,016 - 1,016 Investment management fee (106) (319) (425) Other expenses (113) - (113) Return on ordinary activities before tax 797 90 887 Tax on ordinary activities (181) 181 - Return attributable to Equity shareholders 616 271 887 Dividends in respect of equity shares (460) - (460) Transfer to reserves 156 271 427 Return per ordinary share: 1.63p 0.72p 2.35p Unaudited Statement of Total Return (incorporating the revenue account) of the Company Period from 3 October 2000 to 30 November 2001 Revenue Capital Total £'000 £'000 £'000 Gain on investments - 200 200 Income 2,154 - 2,154 Investment management fee (224) (671) (895) Other expenses (279) - (279) Return on ordinary activities before tax 1,651 (471) 1,180 Tax on ordinary activities (473) 192 (281) Return attributable to Equity shareholders 1,178 (279) 899 Dividends in respect of equity shares (919) - (919) Transfer to/(from) reserves 259 (279) (20) Return per ordinary share: 2.96p (0.70)p 2.26p Unaudited Balance Sheet As at As at As at 31 May 31 May 30 November 2002 2001 2001 £'000 £'000 £'000 Fixed Assets Quoted on the Alternative Investment Market 8,680 2,395 6,885 Quoted on OFEX 2,121 - 676 UK government securities 21,304 33,260 28,253 Unlisted investments 2,650 2,861 3,556 ________ ________ ________ 34,755 38,516 39,370 Net current assets 1,029 1,652 266 ________ _______ _______ Net assets 35,784 40,168 39,636 ________ ________ ________ Financed by: Shareholders' funds 35,784 40,168 39,636 ________ ________ ________ Net asset value per ordinary share: 86.01p 96.02p 95.00p Ordinary shares in issue 41,602,333 41,831,083 41,722,333 Summarised Unaudited Statement of Cash Flows Six months to Period from Period from 31 May 3 October 3 October 2002 2000 to 2000 to 31 May 30 November 2001 2001 £'000 £'000 Net cash flow from operating activities 842 211 855 Capital expenditure and financial investment 844 (38,252) (39,411) Equity dividends paid (459) - (460) Net cash flow before financing 1,227 (38,041) (39,016) Financing (97) 40,824 39,656 Increase in cash 1,130 2,783 640 Reconciliation of net cash flow to movement in net cash Increase in cash 1,130 2,783 640 Opening net cash 640 - - Net cash at 31 May / 30 November 1,770 2,783 640 Reconciliation of net revenue before taxation to net cash flow from operating activities Profit on ordinary activities before taxation 659 797 1,651 Management fee charged to capital 10 (173) (175) Decrease/(increase) in debtors 229 (690) (946) (Decrease)/increase in creditors (56) 277 325 Net cash flow from operating activities 842 211 855 Notes 1. The unaudited interim results which cover the six months to 31 May 2002 have been drawn up in accordance with the applicable accounting standards, adopting the accounting policies set out in the statutory accounts for the year ended 30 November 2001. 2. There were 41,602,333 ordinary shares in issue at 31 May 2002 (30 November 2001: 41,722,333). During the period 120,000 ordinary shares of 10p each were bought in by the company for cancellation. 3. Earnings for the six months to 31 May 2002 should not be taken as a guide to the results for the full year and are based on a weighted average of 41,683,653 (30 November 2001 - 39,726,969) ordinary shares in issue during the period. 4. A special distributable reserve was created following the approval by Order of Court on 1 May 2002 for a cancellation of the share premium account in order to fund the repurchase of the Company's own shares for cancellation and distributions. 5. Income for the period to 31 May is derived from: 2002 2001 £'000 £'000 Equity investment 11 - Fixed interest investment 877 937 Deposit interest 19 75 Underwriting commission - 4 ____ _____ 907 1,016 6. The interim dividend of 1.10p will be paid on 16 August 2002 to shareholders on the register on 2 August 2002 7. These are not statutory accounts in terms of Section 240 of the Companies Act 1985 and are unaudited. The full audited accounts for the period to 30 November 2001, which were unqualified, have been lodged with the Registrar of Companies. 8. Copies of the interim report have been mailed to shareholders and are available from the Registered Office of the Company at 100 Wood Street, London EC2V 7AN. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Maven Income and Growth VCT 5 (MIG5)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today