Last checked at 
17 Feb 2012 18:16
Baronsmead VCT 2 plc Interim Management Statement
For the period from 1 October 2011 to 31 December 2011.
Headlines-
* £2.579m new investments - £1.346m unquoted and £1.233m quoted * £4.135m new funds raised in January/February 2012, (£3.938m net of expenses) Performance SummaryCapital return As at As at Movement 31 Dec 30 Sep 2011 2011 Total net assets £64.26m £65.00m Net asset value 94.38p 95.15p (0.8%) per share Share price 85.13p 86.25p (1.3%) Discount to NAV (9.8%) (9.4%) 3 month 1 year 5 year 10 year Since Total return (%) (%) (%) (%) launch (%) Net asset value(1)(0.8) 5.6 14.8 88.5 129.4 Share price(2) (1.3) 7.4 19.5 95.7 131.6 FTSE All-share(3) 8.4 (3.5) 6.2 59.5 57.4 Key:
(1) NAV total return = NAV + reinvested dividends; Source: ISIS EP LLP
(2) Share price total return = Mid to mid share price + reinvested dividends; Source: AIC
(3) FTSE All-share = FTSE All-share Index + reinvested dividends; Source: AIC
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 been 20%, 40% and later 30%, so any adjusted performance measure including this relief will vary depending on the date of subscription. There is also the additional benefit of receiving VCT dividends tax free.
Investment Performance
The unquoted portfolio valuation increased by 1.5% during the quarter while the AIM portfolio decreased in value by 4.9% over the same period. The net asset value total return of the company fell 0.8% during the quarter whereas the FTSE All Share Total Return increased 8.4% over the same period.
Top Ten Investments Position Position Percentage at at of NAV 31 Dec 30 Sep Company as at 31 Dec 2011 2011 2011 1 1 Nexus Vehicle Holdings Limited 8.8 2 2 CableCom Networking Holdings 5.8 Limited 3 3 Crew Clothing Holdings Limited 4.2 4 4 IDOX plc 4.1 5 6 Kaf©vend Holdings Limited 3.1 6 5 CSC (World) Limited 3.0 7 8 Fisher Outdoor Leisure Holdings 2.8 Limited 8 9 Valldata Group Limited 2.6 9 7 Staffline Group plc 2.6 10 10 Inspired Thinking Group Limited 2.1 Total 39.1Analysis of Total Assets Percentage of total Percentage of total assets assets 31 Dec 2011 30 Sep 2011 Unquoted investments 48 45 AIM, Listed & Collective 31 30Investments Interest Bearing 20 24 Securities Cash 1 1 Total cash portfolio 21 25 Total Assets 100 100
Analysis of Investment Portfolio by Sector
(excluding cash and interest bearing securities)
Percentage of total Percentage of total investments at 31 investments at 30 Dec 2011 Sep 2011 Business Services 37 38 Consumer Markets 17 17 Financial Services 3 3 Healthcare & Education 11 10 Technology, media and 32 32Telecommunications Total 100 100Investment Activity
A total of £2.579m was invested in the period under review. One new unquoted investment of £1.346m was made in Independent Community Care Management Limited. Five investments in AIM traded companies totalling £1.233m were completed in four new and one existing portfolio company.
Investments made
Company Date Cost (£'000) Independent Community Care Management Oct 11 1,346Limited FfastFill plc* Nov 11 63 GB Group plc Nov 11 150 Inspired Energy plc Nov 11 200 TLA Worldwide plc Nov 11 620 Paragon Entertainment Limited Dec 11 200 Total investments 2,579 *Follow on investment RealisationsCompany Date Cost Proceeds Multiple (£'000) (£'000) of cost†MLS Limited Nov 11 20 20 1.0 Total realisations 20 20 Fundraising Update
On 12 January 2012 the Company launched an offer for subscription to raise £4.135 million, this being the sterling equivalent of just less than €5 million ("the Offer"). The Offer became fully subscribed on 1 February 2012. As a result, the Company raised £3.938 million after expenses.
Investment objective
Baronsmead VCT 2 plc 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 31 December 2011 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:
Michael Probin VCT Investor Relations Director
020 7506 5600 michael.probin@isisep.com
XLON