Octopus AIM VCT 2 plc : Final Results

Octopus AIM VCT 2 plc

Final Results            

23 March 2015

Octopus AIM VCT 2 plc, managed by Octopus Investments Limited, today announces the final results for the year ended 30 November 2014.

These results were approved by the Board of Directors on 23 March 2015.

You may, in due course, view the Annual Report in full at www.octopusinvestments.com by navigating Investor, Venture Capital Trusts, Octopus AIM VCT 2 plc.  All other statutory information will also be found there.

 

Financial Summary

	30 November 2014	30 November 2013
Net assets (£'000s)	45,016	39,818
(Loss)/Profit on ordinary activities for the year after tax (£'000s)	(528)	9,713
Net asset value ("NAV")  per share	80.3p	84.4p
Dividends per share - paid in year	4.0p	3.5p
Final Dividend proposed *	2.0p	2.0p
Special Dividend  **	2.0p	N/A

 

*The proposed final dividend of 2.0p will, if approved by shareholders, be paid on 5 June 2015 to shareholders on the register on 8 May 2015.

**The special dividend of 2.0p will be paid on 5 June 2015 to shareholders on the register on 8 May 2015. This is over and above the normal final dividend of 2.0p.

Chairman's Statement

 

Introduction

First, I would like to welcome all new shareholders who have bought shares in the current open offer. I hope that you enjoy the returns this VCT produces over the next few years.  I also hope that you are able to join us at the forthcoming Annual General Meeting, where I and my fellow directors look forward to meeting you.

 

The year to November 2014 has been a more difficult period than expected a year ago, with share prices more volatile and trading conditions, in general, deteriorating as time progressed. As a consequence the Net Asset Value has been broadly flat, taking account of the 4p in tax free dividends which have been paid. Several new investments have been made and profitable disposals too, including the announcement of a bid for your Company's largest holding just before the end of November. Meanwhile, your Company has launched a further offer for new shares and continued to buy back shares from selling shareholders.

 

Performance

The Net Asset Value on 30 November 2013 was 84.4p and at 30 November 2014 it was 80.3p, which is disappointing, especially compared to the hopes of a year ago.  However, if the 4p of dividends are added back, then the fall in NAV of 0.1p represents a decline of 0.1%, which compared well with smaller companies generally.  In the year under review, on a total return basis, the FTSE AIM All Share Index fell by 11.3% and the FTSE Smallcap Index fell by 0.3%. In contrast, the FTSE All Share Index gave a total return of 4.7%.

 

As these figures suggest it has been larger companies' shares which have performed relatively well, despite the UK economy expanding, which would normally be a background conducive to good performance by smaller company shares. However, that was not the case as increasingly through the year investors became more risk averse, more worried about both international conflicts and the Scottish referendum, and more wary of smaller companies. This is despite the companies themselves continuing, on the whole, to report good trading results.

 

Despite the performance of the AIM index, there has been a steady flow of new companies coming to the market. In the year under review, AIM has raised £8.98 billion (net of expenses) in new capital, which is a substantial increase on the previous year. I hope that trend continues, not only as it provides a pipeline of potential investments for the portfolio, but also because it indicates a healthy UK economy with companies and their managements seeing opportunities and wanting to deploy additional capital.

 

As ever performance is driven by specific stocks and, despite the dearth of takeover situations generally, the portfolio has recently sold its largest holding, Advanced Computer Software. The company was taken over at a price of 140p per share. Since the original investment in this start-up in 2008 was at 17p, this represents a substantial return and, on behalf of long-term shareholders, I thank the management of Advanced Computer Software for their efforts. This is the second time that your Investment Manager has backed the team which created Advanced Computer Software. Both investments have been profitable experiences for the Company.

Dividends

For nearly five years now your Board has had a dividend policy of providing shareholders with a 5% yield, which was amended slightly approximately a year ago to incorporate the intention of achieving a minimum annual payment of 3.6p. In October 2014 a 2p interim dividend was paid and in line with the policy, your Board has declared a final dividend of 2p to be paid on 5 June 2015, subject to approval at the AGM. In addition, in the light of the exceptional profit realised by the takeover of Advanced Computer Software, your Board has decided to pay a special dividend of an additional 2p per share, over and above the normal final dividend of 2p. The record date for the special dividend is 8 May 2015 and the payment date is 5 June 2015. 

Dividend Reinvestment Scheme

In common with a number of other VCTs in the industry, your Company started a Dividend Re-investment Scheme (DRIS) following approval at the last AGM, and we have already seen some shareholders take advantage of this opportunity. For investors who do not need income, but value the additional income tax relief on their re-invested dividend, this is an attractive scheme, and I hope that more shareholders will find it useful.

Share Issues and Share Buy backs

A prospectus was launched in August 2014, in a combined offer with the other AIM VCT managed by Octopus, with the intention to raise £8 million for your Company. So far £5.3million (net of expenses) has been raised, by the issue of 6,402,185 new shares, with the Manager expecting to raise the balance before the end of the tax year. The prospectus gives the Board the ability to extend the offer so that your Company can raise up to £12m in the year from its publication and it is possible that your Board will continue to raise funds in the new tax year up to the end of August 2015.   

 

Your Company has continued to buy back shares when they have been offered.  Your Board is determined that this facility will remain in place so would ask that you vote for its renewal at the AGM. While VCTs in general remain an attractive income investment, there is little secondary market activity, which is no doubt a reflection of the tax benefits of investing in new shares. Thus your Board regards the buyback policy and the issue of new shares as two sides of the same coin.  Shares bought back are cancelled.  In the year to 30 November 2014, 1,264,930 shares were bought back and cancelled.

 

VCT Status

PricewaterhouseCoopers LLP provides your Board and Investment Manager with advice concerning continuing compliance with HMRC regulations for VCTs.  Your Board has been advised that Octopus AIM VCT 2 is in compliance with the conditions laid down by HMRC for maintaining approval as a VCT.

 

A key requirement is to maintain at least a 70% qualifying investment level. As at 30 November 2014 some 87.9% of the portfolio, as measured by HMRC rules, was invested in qualifying investments.

 

Alternative Investments Fund Managers Directive ("AIFMD")

AIFMD was introduced under EU Legislation to bring consistency of reporting across all fund types.  In accordance with this legislation, the Company applied to the Financial Conduct Authority to register as its own Alternative Investment Fund Manager was entered in the register of small registered UK AIFMs with effect from 09 April 2014, under the Alternative Investment Fund Managers Regulations 2013 (AIFMRs).  The Company is now required to make an annual report, which includes investments made, principal exposures, liquidity and risk management.

 

Annual General Meeting ("AGM")

Your Company's Investment Manager moved office in December and so this year's AGM will be held at their new office, 33 Holborn, which is on Holborn Circus, London EC1N 2HT. The AGM will be held on Thursday 28 May 2015 at 10.30 am. Following the meeting, the Investment Manager will make a short presentation. My fellow directors and I hope very much that you will be able to attend and we and the manager will answer any questions that you may have.

 

At the AGM, a resolution will be proposed to extend the life of the Company until 2021 in order to preserve the ability of the Company to make share offers in the future and to ensure that the recently issued shares have at least a five year life as required by HMRC regulations.

 

Outlook

Despite the many international concerns that persist, and the uncertainties created by the imminent General Election, economic activity will benefit from the monetary stimulus in Europe and the return of real wage rises here at home, as well as the additional economic benefit of lower oil prices. We are therefore optimistic that the UK economy can show good growth in 2015. At some point there will be a recovery in investor sentiment and that will be helpful not only for the valuation of the portfolio, but also as encouragement for the companies seeking to join AIM. Although the flow of fundraisings has been slower in early 2015 than in the same period last year, your Board understands that there is quite a pipeline of potential flotations and other fundraisings on AIM for the months ahead. We are therefore optimistic that there will be suitable, qualifying opportunities into which to deploy the new capital currently being raised.  Assuming that to be the case your Board looks forward to reporting progress at the AGM and in subsequent shareholder reports in the years to come.

 

 

 

Keith Mullins

Chairman

23 March 2015

 

 

 

Strategic Report 

 

The Directors are required by the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to include a Strategic Report to Shareholders.

 

The following sections form part of the Strategic Report:

 

Our Strategy

Investment manager's Review

Business Review

 

The purpose of the report is to provide Shareholders with sufficient information to enable them to assess the extent to which the Directors have performed their legal duty to promote the success of the Company in accordance with section 172 of the Companies Act.

 

 The Company's Objective

The objective of the Company is to invest in a broad range of predominantly AIM-quoted companies in order to provide shareholders with attractive tax-free dividends and long-term capital growth. Investments are made selectively across a range of sectors in companies that have the potential to grow and enhance their value. Start-up companies will usually be avoided.

 

Investment Policy

The Company's investment policy has been designed to enable it to comply with the VCT qualifying conditions. The Board intends that the long-term disposition of the Company's assets will be not less than 80 per cent in a portfolio of qualifying AIM, ISDX Growth Market traded, or unquoted companies where the management view an initial public offering (IPO) on AIM or ISDX Growth Market traded companies is a short to medium term objective. The qualifying target was achieved in 2009 and the Board intends that approximately 20% of its funds will be invested in non-qualifying investments generally comprising gilts, floating rate securities and short- term money market deposits with a minimum Moody's long-term debt rating of 'A'. Moody's is an independent rating agency, and is not registered in the EU. A proportion of the 20% could be invested in a UK smaller company fund managed by Octopus or other direct equity investments and bonds. This 20% could provide a reserve of liquidity which should maximise the Company's flexibility as to the timing of investment acquisitions and disposals, dividend payments and share buybacks.

 

Risk is spread by investing in a number of different businesses across a range of industry sectors. In order to qualify as an investment in a qualifying VCT holding, the Company's holdings in any one company (other than another VCT) must not exceed 15% by value of its investments at the time of investment.  The value of an individual investment is expected to increase over time as a result of trading progress and a continuous assessment is made of its suitability for sale. However, shareholders should be aware that the Company's qualifying investments are held with a view to long-term capital growth as well as income and will often have limited marketability; as a result it is possible that individual holdings may grow in value to the point where they represent a significantly higher proportion of total assets prior to a realisation opportunity being available. Investments will normally be made using the Company's equity shareholders' funds and it is not intended that the Company will take on any long-term borrowings.

 

The Company's Articles permit borrowings of amounts up to 10% of the sum equal to the aggregate of the amount paid up on the allotted or issued share capital of the Company and the amount standing to the credit of the capital and revenue reserves of the Company (whether or not distributable) after adding thereto or deducting therefrom any balance to the credit or debit of the profit and loss account.

 

No material changes may be made to the Company's investment policy described above without the prior approval of shareholders by the passing of an Ordinary Resolution.  The Directors will continually monitor the investment process and ensure compliance with the investment policy.

 

Future prospects

The Company's recent performance record reflects the success of the strategy set out above and has allowed the Company to maintain the dividend payments to shareholders in line with the Dividend Policy.  The Board believe the Company's business model will enable it to continue to deliver the targeted regular tax-free annual dividends referred to in the Chairman's statement.  The Outlook statements in both the Chairman's statement and the Investment Manager's Review respectively provide further details on the future prospects of the Company.

 

 

 

On behalf of the Board

Keith Mullins

Chairman

23 March 2015

 

 

Investment Manager's Review

 

Introduction

At the interim stage we reported that the stock market had become a more difficult place after an exuberant first quarter, and this more cautious tone persisted for the remainder of the year, with the result that there was no progress in the NAV total return for the year. Share prices of earlier stage companies needing cash to fulfil growth plans were particularly badly affected and we talk about some examples in the portfolio later on in this report.  More established and profitable companies saw their share prices advance despite market conditions and these contributed positively to the performance of the NAV in the year. 

 

More encouragingly AIM once again raised more money for companies that the previous year and although prices became heady for a while in 2014 they have now settled down  at what we consider to be more realistic levels and we are told that the pipeline of new issues for 2015 remains strong despite the likely disruption of a General Election.

There are signs that takeover activity which had been at an all time low in 2013 is beginning to return to the market and we saw a bid for Advanced Computer Software Group, the largest holding in the portfolio, right at the period end which has prompted the Board to pay the special dividend mentioned it the Chairman's statement. We continue to balance the portfolio between existing maturing investments and the new younger ones which we make with the new funds raised.

 

The Alternative Investment Market

The year to 30 November 2014 was much more challenging than the previous twelve months which had seen record returns for smaller company investors. The market paused for breath after a sustained rise and began to focus more closely on some of the economic and political issues which remain today in both the international and domestic arenas.  As far as AIM was concerned the most important of these was the collapse in the oil price to below $50 a barrel by November and the dismal performance of the AIM Index in 2014 was largely accounted for by an associated fall in resource stocks.  AIM fell by 17% in the 2014 calendar year and Professors Dimson and Marsh concluded, in compiling the Numis Smaller Companies Index that this would have been 7% without the effect of resource and oil stocks.  The other negative impact was from a handful of large index constituents such as Quindell and ASOS which had a disproportionate effect in the year.  AIM has some large constituents at the top of the Index which increases its volatility.

 

However, 2014 was not all bad news for AIM as it remained firmly open for fundraising by companies, particularly for new issues seeking to tap public markets for the first time. Activity was particularly strong in the first half of the year when companies were being floated on high multiples. Reality set in at the end of the second quarter when high prices for new issues became harder for companies to achieve, but the flow of secondary issues continued, with many of these being VCT qualifying. The ability of AIM to attract a range of new issues and to raise further funds for small growing companies is its most important characteristic as far as the VCT is concerned.  There were moments in the first half of 2014 when valuations of new issues became too high to be attractive, but because this Company has well established existing holdings it did not need to invest in these and could afford to wait for valuations to settle down later on in the year.

 

Performance

At the interim stage we reported that many of the substantial gains in the NAV that had been achieved in the first quarter of the year had been given back in the subsequent three months. Disappointingly this continued to be the case in the second half of the year with the result that the NAV fell by almost exactly the same value as the 4p of dividends that were paid out in the year, giving a total return of -0.4%. This compares with a total return for the FTSE Smallcap Index of -0.3% and for AIM of -11.3%. The FTSE All Share Index performed better in the period, rising by 4.7% on the same basis. The period from September to November was particularly challenging for smaller company shares as factors as diverse as the Ukrainian situation and the problems of Greek debt in the international arena and the Scottish Referendum in the domestic arena and a dramatic slide in the oil price removed the appetite for risk and led to a more general underperformance of smaller company shares.

 

Within the portfolio it was the older, more established and already profitable companies that tended to perform best in these market conditions, with a number of the not yet profitable earlier stage companies seeing their share prices suffer. Two holdings which stand out for their negative contributions in the year under review are WANdisco and Mycelx, both of which had performed extremely well in the previous year when market conditions were different.

 

WANdisco floated in 2011 at 180p and its share price made rapid gains as the market became excited by its technology enabling simultaneous access, use and editing of the same computer code as well as its newer 'big data' product, which protects networks from  failure. Having taken early profits in the shares we decided to keep a qualifying holding in the company which has interesting partners in the Big Data world and some very large international customers that are expected to drive significant revenues in time. Until those revenues start to come through the shares are vulnerable, particularly at moments when the company is perceived to need cash. It has announced since the period end that it has raised $25 million giving it time to demonstrate that new contracts will indeed deliver revenues. We are holding onto our remaining shares.

 

Mycelx was the other company whose shares saw a reversal in fortunes, ending the period in fundraising mode and with its shares below the original issue price.  It has raised $12.4 million post the period end and we have added to our holding with some non-qualifying shares.  It has a strong pipeline of significant contracts as well as some smaller ones, but is suffering from having disappointed market expectations in 2014 and, with the oil price having fallen below $50 a barrel, forecasts have also been cut for 2015 and beyond. Many of these delayed contracts are with oil companies but the need for an easy to deploy mechanism to clean hydrocarbons out of waste water to meet ever more stringent environmental standards remains. Revenues are still significantly higher than they were at the time the company floated and we expect the delayed contracts to start to arrive once the hiatus caused by the oil price collapse has subsided.

 

On the positive side some of the more established holdings in the portfolio enjoyed strong share price gains in the year and almost made up for the poor performers. Advanced Computer Software's shares responded to a series of upgrades to forecasts and have since strengthened further as the result of a bid for the company at 140p a share. The management have guided it from being a small software company in 2008 to a substantial supplier of software and computer services to both the public and private sectors today.  We first invested at 17p and have taken profits in the shares along the way. Another established qualifying holding that has done very well in the period is Breedon Aggregates where upgrades to forecasts have resulted from a slow improvement in market conditions combined with management actions to increase margins. Among the smaller qualifying holdings Cambridge Cognition improved its profitability under new management and saw its share price recover to above its issue price.  Netcall and Quixant both performed well and Nasstar, a new holding in the year responded well to news of strong trading.  Nektan floated at a premium to our investment cost, and although the shares have been lacklustre ahead of contract news they show a paper profit.

 

The non-qualifying element of the equity portfolio came into its own in the year as our strategy of investing in larger more liquid, profitable companies to counterbalance new earlier stage qualifying holdings paid off.  Staffline was the best contributor but SQS, Restore, Plus 500 and Goals Soccer Centres all did well.

 

Portfolio Activity

There was a steady flow of qualifying investment opportunities throughout the year although the new issues market was a little more volatile with price expectations very high at the end of the first quarter.  We were able to stand back from the market because the Company remained well over its 70% qualifying threshold for HMRC purposes. Prices have been more realistic towards the end of 2014 and there is no sign that they are becoming inflated again since the period end.

 

In addition to the six qualifying investments which your Company made in the first half of the year and which were discussed at the time of the interim, there were four further qualifying investments made in the second half, two follow on investments into Proxama and Nektan and the other two new holdings making a total of just under £3 million invested in qualifying holdings in the year.  Ergomed is a profitable growing medical services company which we supported at float and Microsaic is an existing AIM company making diagnostic equipment.  It is not yet profitable although it has some very exciting technology and is beginning to grow its sales. Proxama and Nektan were both raising further funds to develop their businesses, and Nektan combined this with a float in October. Post the year end we have made one further £0.4 million qualifying investment in Midatech, a newly floated pharmaceutical company which is not yet profitable and another £0.24 million one in Ideagen, an existing profitable AIM company.

 

In addition we added £1.5 million of non-qualifying investments in the year. We added to the holdings in Brady and GB Group and took a new holding in Skyephama. The latter performed well and we sold part of the holding at a profit.

 

During the year we made disposals of £2.6 million realising an overall profit over book cost of £0.78 million.  We sold the non-qualifying holding in EMIS in its entirety and took significant profits in the holding in Matchtech which had become a large non-qualifying holding after two years of good performance. We also took profits in Sinclair IS Pharma and Plus 500. In the qualifying portfolio we top-sliced the holdings in Advanced Computer Software and Breedon Aggregates to prevent them becoming too large a proportion of the portfolio and took some profits in Quixant, Omega Diagnostics and Proxama after the shares performed well.

 

Outlook

As yet we have seen no sustained recovery in market sentiment and smaller companies are therefore valued at a discount to their larger peers, not helped by the political uncertainty of an election year. However, the UK remains a growing economy for the foreseeable future. There will be some stimulus from an economic revival in Europe and a lower oil price, whilst directly the prospect of real wages rises suggests that the consumer will drive UK economic activity.  That should continue to reinforce demand for many of the business service companies in the portfolio and, at the optimistic end of expectations, opens the prospect of upwards revisions to GDP growth forecasts for the UK in 2015.

 

It also suggests that capital raising and flotations will remain a significant feature of AIM, in the year when the market celebrates its twentieth birthday. In those circumstances we would expect to invest the present cash balance profitably for shareholders and at the AGM be able to tell you about some of the new holdings in the portfolio. In those circumstances we would expect to invest the present cash balance at attractive valuations for shareholders.

 

 

The AIM Team

Octopus Investments Limited

23 March 2015

 

 

Directors' Responsibility Statement

 

The Directors are responsible for preparing the Strategic Report, Directors' Report, Directors' Remuneration Report and the financial statements in accordance with applicable law and regulations. They are also responsible for ensuring that the annual report includes information required by the Listing Rules of the Financial Conduct Authority.

 

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom accounting standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 

In preparing these financial statements the Directors are required to:

select suitable accounting policies and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;

prepare a strategic report, a directors' report and directors' remuneration report which comply with the requirements of the Companies Act 2006.

 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions, to disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

The directors confirm that:

 

so far as each Director is aware, there is no relevant audit information of which the Company's auditor is unaware; and

the Directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

 

The Directors are responsible for preparing the annual report in accordance with applicable law and regulations. The Directors consider the annual report and the financial statements, taken as a whole, provides the information necessary to assess the Company's performance, business model and strategy and is fair, balanced and understandable.

 

The Directors are responsible for ensuring the annual report and financial statements are made available on a website and for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information included in annual reports may differ from legislation in other jurisdictions.  The Directors responsibility also extends to the ongoing integrity of the financial statements contained therein.

The Directors confirm, to the best of their knowledge:

that the financial statements, prepared in accordance with UK Generally Accepted Accounting Practice, (United Kingdom Standard and applicable laws), give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company taken as a whole; and

the annual report, including the strategic report, includes a fair review of the development and performance of the business and the position of the Company taken as a whole, together with a description of the principal risks and uncertainties that it faces.

 

 

On Behalf of the Board

 

 

Keith Mullins

Chairman

23 March 2015

 

 

Income Statement

 

	Year to 30 November 2014
	Revenue £'000	Capital £'000	Total £'000
Gain on disposal of fixed asset investments	-	455	455
Loss on valuation of fixed asset investments	-	(359)	(359)
Investment Income	478	-	478
Investment management fees	(203)	(609)	(812)
Other expenses	(290)	-	(290)
Loss on ordinary activities before tax	(15)	(513)	(528)
Tax on loss on ordinary activities	-	-	-
Loss on ordinary activities after tax	(15)	(513)	(528)
Loss per share - basic and diluted	-	(1.1p)	(1.1p)

 

the 'Total' column of this statement represents the statutory income statement of the Company; the supplementary revenue return and capital return columns have been prepared in accordance with the AIC Statement of Recommended Practice

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

the Company has only one class of business and derives its income from investments made in shares and securities and from bank and money market funds

 

The Company has no total recognised gains or losses other than the results for the period as set out above. Accordingly a statement of recognised gains and losses is not required.

 

Other than revaluation movements arising on investments held at fair value through the income statement, there were no differences between the loss as stated above and at historical cost.

 

 

Income Statement

 

	Year to 30 November 2013
	Revenue £'000	Capital £'000	Total £'000
Gain on disposal of fixed asset investments	-	582	582
Gain on valuation of fixed asset investments	-	9,574	9,574
Investment Income	414	-	414
Investment management fees	(160)	(479)	(639)
Other expenses	(218)	-	(218)
Profit on ordinary activities before tax	36	9,677	9,713
Tax on loss on ordinary activities	-	-	-
Profit on ordinary activities after tax	36	9,677	9,713
Profit per share - basic and diluted	0.1p	22.2p	22.3p

 

 

the 'Total' column of this statement represents the statutory income statement account of the Company; the supplementary revenue return and capital return columns have been prepared in accordance with the AIC Statement of Recommended Practice

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

the Company has only one class of business and derives its income from investments made in shares and securities and from bank and money market funds

 

The Company has no total recognised gains or losses other than the results for the period as set out above. Accordingly a statement of recognised gains and losses is not required.

 

Other than revaluation movements arising on investments held at fair value through the income statement, there were no differences between the loss as stated above and at historical cost.

 

Balance Sheet

 

	As at 30 November 2014		As at 30 November 2013
	£'000	£'000	£'000	£'000
Fixed asset investments*		36,745		35,862
Current assets:
Investments*	588		586
Debtors	397		56
Cash at bank	7,393		3,363
	8,378		4,005
Creditors: amounts falling due within one year	(107)		(49)
Net current assets		8,271		3,956
Net assets		45,016		39,818
Called up equity share capital		6		5
Share premium		8,979		5
Shares to be issued		-		122
Special distributable reserve		34,183		35,231
Capital reserve realised		(10,457)		(8,550)
Capital reserve unrealised		12,452		13,137
Revenue reserve		(147)		(132)
Total equity shareholders' funds		45,016		39,818
Net asset value per share - basic and diluted		80.3p		84.4p

 

*Held at fair value through profit and loss

 

The statements were approved by the Directors and authorised for issue on 23 March 2015 and are signed on their behalf by:

 

Keith Mullins

Chairman

Company No: 05528235

 

Reconciliation of Movements in Shareholders' Funds
	Year ended 30 November 2014	Year ended 30 November 2013
	£'000	£'000
Shareholders' funds at start of year	39,818	28,712
(Loss)/Profit on ordinary activities after tax	(528)	9,713
Share capital bought back	(1,047)	(8,280)
Issue of shares (net of issue costs)	8,852	11,154
Shares to be issued	-	122
Dividends paid	(2,079)	(1,603)
Shareholders' funds at end of year	45,016	39,818

 

 

 

 

 

Cash Flow Statement

	Year to 30 November 2014 £'000	Year to 30 November 2013 £'000
Net Cash outflow from operating activities	(907)	(375)
Taxation: UK Corporation tax paid	-	-
Financial investment
Purchase of fixed asset investments	(3,358)	(3,104)
Disposal of fixed asset investments	2,571	3,050
Net cash outflow from investing activities	(787)	(54)
Equity dividends paid	(2,079)	(1,603)
Management of liquid resources
Purchase of current asset investments	(2)	(3,953)
Sale of current asset investments	-	6,217
Net cash (outflow)/inflow from management of liquid resources	(2)	2,264
Net cash (outflow)/inflow before financing	(3,775)	232
Financing
Proceeds from issue of shares	8,853	3,720
Shares to be issued	-	122
Purchase of own shares	(1,048)	(846)
Net cash inflow from financing	7,805	2,996
Increase in cash	4,030	3,228

 

Reconciliation of (Loss)/Profit before Taxation to Cash Flow from Operating Activities
		Year to 30 November 2014	Year to 30 November 2013
		£'000	£'000
(Loss)/Profit on ordinary activities before tax		(528)	9,713
(Gain)/Loss on disposal of fixed asset investments		(455)	(582)
Loss/(Gain) on valuation of fixed asset investments		359	(9,574)
(Increase)/Decrease in debtors		(341)	218
Increase/(Decrease) in creditors		58	(150)
Outflow from operating activities		(907)	(375)

 

 

Reconciliation of Net Cash Flow to Movement in Net Funds
		Year to 30 November 2014	Year to 30 November 2013
		£'000	£'000
Increase/(decrease) in cash at bank		4,030	3,228
Movement in current asset investments		2	(2,264)
Opening net funds		3,949	2,985
		7,981	3,949

 

Analysis of changes in Net Funds

	As at 1 December 2013	Cash flows	As at 30 November 2014
	£'000	£,000	£'000
Cash at Bank	3,363	4,030	7,393
Money market cash funds	586	2	588
	3,949	4,032	7,981

 

 

 

 

 

 

 

 

 

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Octopus AIM VCT 2 plc via Globenewswire

HUG#1905659