LONDON (Alliance News) - British Smaller Companies VCT2 PLC Friday reported an increase in its net asset value in 2014 driven by underlying growth in the investment portfolio.
The venture capital trust said that in the year ended December 31 its net asset value rose by 1.8 pence to 62.9p per share prior to the payment of dividends, representing a 2.7% increase on the opening net asset value.
Total dividends of 4.5p per share were paid during the year, which was the same as in the year preceding it.
Total cumulative dividends paid amounted to 43.5p, increasing cumulative total returns to 106.4p per share from 104.6p a year before.
Through joint fundraising with British Smaller Companies VCT PLC, VCT2 raised GBP10.2 million in new funds during 2014. The offers were fully subscribed on March 24, raising GBP40 million in aggregate.
The company invested GBP13.6 million into 16 companies during the year, GBP12.5 million of which was invested into 11 new companies as part of its strategy of sector and geographical diversity. Total investments held increased to GBP18.1 million from GBP17.2 million.
The portfolio value grew to GBP28.2 million from GBP16.3 million, which represents 72% of net assets.
The company said strong value gains were seen across many portfolio businesses as a result of improved trading results and delivery of value growth strategies, but that they were partially offset by a decline in the value of Seven Technologies Holdings Ltd and Deep-Secure Ltd, due to a freeze in defence sector spending.
"During the year there have been some indicators of improved economic conditions which have continued into the early part of 2015. Consequently 2014 has been a year of strong new investment levels and this momentum has continued into 2015, although we continue to take a cautious approach and look for businesses with resilient growth strategies," Chairman Richard Last said in a statement.
"Good progress continues to be made across the portfolio to position businesses to grow and realise shareholder value," he added.
Shares in British Smaller Companies VCT2 were trading up 3.4% at 57.89 pence Friday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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