Octopus Titan VCT 2 PLC : Interim Management St...

Octopus Titan VCT 2 plc
Interim Management Statement

14 August 2013

In accordance with Rule 4.3 of the UK Listing Authority's Disclosure and Transparency rules, Octopus Titan VCT 2 plc ('Titan 2' or 'VCT') presents an Interim Management Statement for the period 1 May 2013 to 31 July 2013.  The statement also includes relevant financial information between the end of the period and the date of this statement.

Financial Summary

	As at 31 July 2013	As at 30 April 2013	As at 31 October 2012
Net assets (£'000s)	19,159	19,775	21,361
Return after tax (£'000s)	172	137	5,737
Net asset value per share (NAV)	86.4p	88.7p	121.9p
Cumulative dividends paid since launch	42.5p	40.0p	6.0p
Total return (NAV plus dividends paid)	128.9p	128.7p	127.9p

Developments
As discussed in the recent interim report, a few of the successful investee companies had, or were about to, become non-qualifying during the normal course of business, which put a strain on the qualifying status of the VCT.  A solution to this was approved by shareholders and HMRC during the period and has now beenMRHMRCms brought into effect. The transaction saw Titan 2, Octopus Titan VCT 1 Plc ('Titan 1') and Octopus Titan VCT 3 Plc ('Titan 3') effectively 'sell half and retain half' of Zoopla Property Group, Nature Delivered, Calastone and Secret Escapes, and as a result, the qualifying status of the VCT has been protected, cash has been realised and investors are also able to participate in the future growth of these companies.

As at 31 July 2013, Zoopla Property Group, Nature Delivered and Secret Escapes have been part disposed and transferred from Titan 1, Titan 2 and Titan 3 into the new Octopus-managed fund. It is anticipated that Calastone will be transferred shortly.

Investment performance
At 31 July 2013, the Total Return of the VCT was 128.9p compared to 128.7p at 30 April 2013. The increase in the Total Return has arisen as a result of an uplift in Calastone based on the recent funding round exceeding the standard running costs of the Fund. There have been no other changes in the unquoted valuations since 30 April 2013.

We have continued to focus on monitoring existing portfolio companies, alongside giving them support with both advice and new funding needs. During the period under review, Titan 2 made four follow-on investments of £841,000 into TouchType, 800,000 into Calastone (which will be fully repaid by Zenith Holding company), £333,000 into UltraSoc and £31,000 into Mi-Pay. Titan 2 also made two new investments of £172,000 into Amplience and £300 into Zenith Holding Company.

A full update will be provided in the Annual Report and accounts for the year ending 31 October 2013.

Top Ten Investments by value as at 31 July 2013

Company	Sector	Carrying value £'000	% of total net assets
Calastone Limited*	Technology	3,984	20.7%
Zenith Holding company Limited**	Various	3,303	17.2%
TouchType Limited	Telecommunications	2,325	12.1%
UltraSoC Technologies Limited	Technology	869	4.5%
e-Therapeutics plc	Consumer lifestyle & wellbeing	844	4.4%
Mi-Pay Limited	Telecommunications	636	3.3%
Executive Channel Europe Limited	Media	605	3.1%
Metrasens Limited	Consumer lifestyle & wellbeing	571	3.0%
Getlenses Group Limited	Consumer lifestyle & wellbeing	534	2.8%
Surrey NanoSystems Limited	Technology	528	2.7%

*It is anticipated that Calastone will be transferred into Zenith Holding Company shortly
**Zenith Holding Company Limited holds an interest in a new Octopus-managed fund which now owns Titan 1, Titan 2 and Titan 3's previous holdings in Zoopla Property Group, Nature Delivered and Secret Escapes.

Dividends
As announced in the recently published half-yearly report, the interim dividend of 2.5p per share was paid on 26 July 2013 to those shareholders on the register on 28 June 2013. The total dividends paid since launch are now 42.5p.

Linked Top-up
The Board of Octopus Titan VCT 2 Plc, along with the other Titan funds, are pleased to announce their intention to launch a new fund raising this year of up to £35 million by way of an issue of new shares with an over allotment facility of a further £15 million across the Titan funds. It is anticipated that a prospectus containing further details will be sent to shareholders and potential new investors in early September 2013.

Material events and transactions
The VCT made a new investment of £100,000 into Zynstra on 2 August 2013. Titan 2's Board is not aware of any other significant event or transaction which has occurred between 1 August 2013 and the date of publication of this statement which would have a material impact on the financial position of the VCT.

For further information please contact:
Alex Macpherson- Fund Manager
Octopus Investments Limited - 0800 316 2295

ENDS

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Source: Octopus Titan VCT 2 PLC via Thomson Reuters ONE

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