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

Octopus Titan VCT 2 PLC
Interim Management Statement

3 September 2014

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 2014 to 31 July 2014.  The statement also includes relevant financial information between the end of the period and the date of this statement.

Financial Summary

	9 month period to 31 July 2014	6 months to 30 April 2014	Year to 31 October 2013
Net assets (£'000s)	29,974	29,296	20,924
Return after tax (£'000s)	570	(35)	2,093
Net asset value per share ('NAV')	91.6p	92.2p	95.2p
Cumulative dividends paid since launch	47.5p	45.0p	42.5p
Total return (NAV plus dividends paid)	139.1p	137.2p	137.7p

Investment performance
During the three month period, the Total Return of the VCT increased 1.4% from 137.2p to 139.1p per share as at 31 July 2014. The movement was largely attributable to the increase in fair value of Zenith Holding Company as a result of the flotation of Zoopla Property Group. There were no other material movements in the unquoted portfolio during the period.

During the period under review, Titan 2 made two follow-on investments with a combined cost of £965,000 into Zynstra and Aframe Media Group. In addition, six new investments with a combined cost of £950,000 were made into Sourceable (Swoon Editions), Origami Energy, Hubbub Deliveries, Seedcamp III LP, Elliptic Enterprise, and Smartkem. Titan 2 disposed of its entire holding of ECN Live during the period for £366,000.

Top Ten Investments by value as at 31 July 2014

Company	Sector	Carrying value £'000	% of total net assets
Zenith Holding company Limited	N/a	9,105	27.8%
TouchType Limited	Telecommunications	2,233	6.8%
Getlenses Limited	Consumer lifestyle & wellbeing	971	3.0%
UltraSoC Limited	Technology	869	2.7%
Aframe Media Group Limited	Media	657	2.0%
e-Therapeutics plc	Consumer lifestyle and well being	775	2.4%
Mi-Pay Group plc	Telecommunications	707	2.2%
Zynstra Limited	Technology	621	1.9%
Metrasens Limited	Consumer lifestyle and well being	571	1.7%
Surrey NanoSystems Limited	Technology	528	1.6%

Dividends
As announced in the recently published interim results, the interim dividend of 2.5p per share for the six months ended 30 April 2014 was paid on 24 July 2014 to those shareholders on the register on 27 June 2014.

Allotments
The company made the following allotments during the period:

• On 17 June 2014 775,365 shares were allotted at a price of 97.6p per share.
• On 17 June 2014 6,504 shares were allotted at a price of 93.6p per share to shareholders who elected to receive shares under the Dividend Reinvestment Scheme in regards to the 2013 final dividend.
• On 24 July 2014 181,324 shares were allotted at a price of 92.2p per share to shareholders who elected to receive Shares under the Dividend Reinvestment Scheme in regards to the 2014 interim dividend.

Material events and transactions
Since 31 July 2014, Titan 2 made one follow-on investment and three new investments with a total value of £990,000.

As announced on 25 June 2014, the Boards of Titan 2, Octopus Titan VCT 1 plc, Octopus Titan VCT 3 plc, Octopus Titan VCT 4 plc and Octopus Titan VCT 5 plc (the "Companies") entered into discussions regarding a possible merger of the Companies (the "Merger"). This has subsequently been approved in principle by the Boards. Documentation to effect the Merger is in the process of being drafted and approved by the relevant authorities. It is anticipated that shareholders will receive the circular in due course, explaining the Merger and including the Notice convening a General Meeting for shareholders to vote on the resolutions required to implement the Offer and the Merger. It is also the intention to launch an Offer for subscription to raise up to £50 million with an overallotment facility of a further £20 million (the "Offer").

Titan 2's Board is not aware of any other significant event which has occurred between 31 July 2014 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 2349

ENDS

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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 Titan VCT 2 PLC via Globenewswire

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