Last checked at 
15 Aug 2014 16:22
Baronsmead VCT 2 plc
Interim Management Statement
For the 3 month period from 1 April 2014 to 30 June 2014.
Headlines
· £1.8 million realised from the sale of investments in four quoted companies
· £0.4 million invested in 1 new and 3 follow-on investments
Performance Summary
Capital return | As at 30 June 2014 | As at 31 March 2014 |
Movement | |||
Total net assets | £86.63m | £86.50m | ||||
Net asset value per share | 102.56p | 102.19p | 0.4% | |||
Share price | 97.75p | 95.75p | 2.1% | |||
Discount to NAV | (4.7%) | (6.3%) | ||||
Total Return | 3 month (%) | 1 year (%) | 5 year (%) | 10 year (%) | Since launch (%) | |
Net asset value total return (1) | 0.4 | 15.5 |
75.0 |
123.9 | 217.1 | |
Key:
(1) NAV total return = NAV + reinvested dividends; Source: ISIS VC LLP
These total returns are stated before the inclusion of VCT tax reliefs which are designed to mitigate the higher risks and costs associated with investing in smaller companies and the constraints of the VCT legislation. The tax reliefs given at the time of subscription have varied between 20% and 40%, so any adjusted performance measure including this relief will vary depending on the date of subscription. There is also the additional ongoing benefit of receiving VCT dividends tax free.
Investment Performance
In the three months to 30 June 2014, Baronsmead VCT 2's net asset value per share increased by 0.4%. Over the quarter, the unquoted portfolio valuation increased by 1.9%, the quoted portfolio increased by 1.3% and Wood Street Microcap Fund decreased by 4.4%.
The Company's net assets as at 30 June 2014 were £86.6 million. This figure takes into account the valuation of the Company's investments as at 30 June 2014.
Top Ten Investments
Position at 30 June 2014 | Position at 31 March 2014 |
Company | Percentage of NAV as at 30 June 2014 |
1 | 1 | Nexus Vehicle Holdings Limited | 6.1 |
2 | 3 | Staffline Group plc | 3.5 |
3 | 2 | Netcall plc | 3.4 |
4 | 4 | IDOX plc | 3.2 |
5 | 5 | Crew Clothing Holdings Limited | 2.8 |
6 | 7 | Valldata Group Limited | 2.1 |
7 | 14 | Accumuli plc | 2.0 |
8 | 6 | Vectura Group plc | 1.8 |
9 | 8 | Independent Community Care Management Limited | 1.8 |
10 | 12 | Create Health Limited | 1.8 |
Total | 28.5 |
Analysis of Total Assets
Percentage of total assets at 30 June 2014 | Percentage of total assets at 31 March 2014 | |||||
Unquoted investments | 31 | 31 | ||||
AIM, listed, ISDX & collective investment vehicle | 46 |
| 48 | |||
Listed interest bearing securities | 12 | - | ||||
Net current assets | 11 | 21 | ||||
Total liquid assets | 23 | 21 | ||||
Total assets | 100 | 100 | ||||
Analysis of Investment Portfolio by Sector
(excluding cash and interest bearing securities)
Percentage of Total investments at 30 June 2014 | Percentage of total investments at 31 March 2014 | |
Business Services | 47 | 46 |
Consumer Markets | 11 | 12 |
Healthcare & Education | 14 | 15 |
Technology, Media & Telecommunications | 28 | 27 |
Total | 100 | 100 |
Investment Activity
In the three months to 30 June 2014, Baronsmead VCT 2 invested approximately £0.4 million in 1 new and 3 follow on investments as set out in the table below.
Investments made | Date | Cost (£'000) |
One Media iP Group plc* | Apr 2014 | 57 |
Synety Group plc | Apr 2014 | 113 |
Happy Days Consultancy Limited* | May 2014 | 180 |
Nexus Vehicle Holdings Limited* | May 2014 | 8 |
Total investments | 358 |
*Follow on investmentsRealisations
In the three months to 30 June 2014, Baronsmead VCT 2 realised total proceeds of £1.8 million from the sale of four quoted investments. Details are set out in the table below.
Realisations | ||||
Company | Date | Cost (£'000) | Proceeds (£'000) | Multiple
|
Anpario plc | Apr/Jun 2014 | 69 | 284 | 4.1 |
Sinclair IS Pharma plc | May 2014 | 524 | 546 | 1.0 |
Murgitroyd Group plc | May/Jun 2014 | 130 | 707 | 5.4 |
Tristel plc | Jun 2014 | 217 | 281 | 1.3 |
Total realisations | 940 | 1,818 | ||
Dividend
Following an exceptional period of divestments, an interim dividend of 6p per share was paid on 7 March 2014. In the absence of unforeseen circumstances, it is anticipated that a second interim dividend will be paid in September 2014.
Net Asset Value as at 31 July 2014
The net asset value as at 31 July 2014 was 102.82p per share.
Investment objective
Baronsmead VCT 2 is a tax efficient listed company which aims to achieve long-term investment returns for private investors, including tax free dividends.
Events after the period end
Other than the events described above, the Board is not aware of any significant events or transactions which have occurred between 30 June 2014 and the date of publication of this statement which would have a material impact on the financial position of the Company.
Further information
Further information regarding the Company, including net asset values published since the end of the period and quarterly factsheets, can be found at the Company's website www.baronsmeadvct2.co.uk
Contact
For further information please contact the Company's Investment Manager, ISIS VC LLP as follows:
Email: baronsmeadvcts@isisep.com
Telephone: 020 7506 5717
Facsimile: 020 7506 5718
Post: 100 Wood Street, London, EC2V 7AN