Interim Management Statement

RNS Number : 6246E

Mobeus Income & Growth 2 VCT PLC

11 February 2015

 



Mobeus Income & Growth 2 VCT plc (the "Company")

INTERIM MANAGEMENT STATEMENT

For the quarter ended 31 December 2014

From November 2014, listed companies are no longer required to announce interim management statements to shareholders.  Notwithstanding this change, the Board has decided to continue providing such information so that shareholders are updated on the Company's progress on a quarterly basis.   Accordingly, the Company presents an Interim Management Statement for the quarter ended 31 December 2014.   The statement also includes relevant financial information between the end of the period and the date of this statement. 

NET ASSET VALUE AND TOTAL RETURN PER SHARE

	At 31 December 2014	At 30 September 2014
Net assets attributable to shareholders	£36,006,632	£39,149,691
Shares in issue	29,876,317	29,996,317
Net asset value (NAV) per share	120.52p	130.51p
Cumulative dividends paid to date per share	37.00p	23.00p
Total return per share since inception (NAV basis)	157.52p	153.51p

DIVIDENDS

The Company paid an interim capital dividend of 14.00 pence per share for the year ending 31 March 2015 on 20 October 2014.

The Board has today also declared a second interim dividend of 5.00 pence per share for the year ending 31 March 2015, which will be paid on 20 March 2015 to shareholders on the share register on 20 February 2015.  This dividend fulfils the Company's annual dividend target of paying a dividend in respect of each financial year of not less than 5.00 pence per share, as stated in the Annual Report and Accounts for the period ended 31 March 2014.

This second interim dividend for the year will bring cumulative dividends paid per share to 42.00 pence per share by the end of the financial year.

SHARE BUY-BACKS

The Company bought back 120,000 of its own shares on 18 December 2014 at a price of 104 pence per share.

INVESTMENT ACTIVITY

New Investments

In December 2014, the Company invested a total of £1.22 million to support the corporate restructuring of two companies within the Ward Thomas Group, a brand-led specialist logistics storage and removal business.

Also in December 2014, the Company completed a further investment of £0.73 million into ASL Technology Holdings, a printer and photocopier services business, to provide capital to repay all bank borrowings and support the company's buy and build strategy.  

Following the period end, in January 2015, the Company invested a further £0.84 million in the acquisition vehicle South West Services Investment Limited ("SWSIL"), adding to its earlier investment of £0.61 million.  This enabled SWSIL to acquire Media Business Insight Limited ("MBIL"). The Company has also advanced a non-qualifying loan of £0.56 million to MBIL.   MBIL is a publishing and events business focused on the creative production industries, specifically advertising, TV production and film media. 

A further investment of £0.12 million was also completed into Racoon International, a supplier of hair extensions and hair care products and training, to support the financial restructuring of the company.

Realisations

In the quarter to 31 December 2014, the Company realised its investments in Focus Pharma, Youngman and EMaC for total net cash proceeds of £5.86 million. 

In October 2014, Focus Pharma was sold to Cinven-backed Amdipharm Mercury Group for net cash proceeds of £1.34 million.  Total cash proceeds received to date, since the original investment in October 2007, are £2.50 million, representing 3.79 times original cost of £0.66 million. Further contingent consideration of up to £0.52 million may be received over the next three years.

Also in October, Youngman was sold to Werner Co in the US for net cash proceeds £1.66 million on completion.  Total cash proceeds received since the original investment in October 2005 are £2.46 million representing 2.46 times the original cost of £1.00 million.

EMaC, was sold to Innovation Group plc in December 2014 for net proceeds totalling £2.86 million.  Total cash proceeds received to date, since the original investment in November 2011, are £3.37 million, representing 3.08 times original cost of £1.10 million.

Loan Stock Repayments

A total of £0.05 million has been received in loan stock repayments during the quarter to 31 December 2014, from Fullfield (Motorclean) and Tessella.

A further £0.08 million was received from Fullfield (Motorclean) following the period end.

MOBEUS VCTs' JOINT OFFER FOR SUBSCRIPTION

Together with Mobeus Income & Growth VCT plc, Mobeus Income & Growth 4 VCT plc, and The Income & Growth VCT plc, the Company is participating in the current Mobeus VCTs' Offers for Subscription launched on 10 December 2014 to raise up to £39 million across the four VCTs, including £8 million for the Company ("the Offer").

The Offer will remain open until 12.00 noon on 2 April 2015 unless fully subscribed before that date.

Applications totalling £29.71 million have been received under the four Offers to date, £6.82 million of which are in respect of this Company, representing 85.2% of the target amount.

ISSUE OF EQUITY

Following the period end the Company has allotted 2,919,834 shares to date under the Offer at prices ranging between 116.51 and 122.70 pence per share in accordance with the allotment formula set out in the prospectus for the Offer.

Please note that all of the information above is unaudited.

Other than as described above, there were no material events during the period and to the date of this announcement.

For further information, please contact:

Jonathan McGuire, for Mobeus Equity Partners LLP, Company Secretary: 020 7024 7600

 

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