Last checked at 
18 Aug 2011 11:51
Baronsmead VCT2 plc Interim Management Statement
For the period from 1 April 2011 to 30 June 2011.
Headlines-
6.9% increase in underlying Net Asset Value Sale of investment in Reed & Mackay at 4.8 times cost Performance SummaryCapital return As at As at Movement 30 June 31 March 2011 2011 Total net assets £70.31m £68.01m
Net asset value per 102.85p 96.23p* 6.9%
share Share price 88.50p 86.88p 1.9% Discount to NAV (14.0%) (9.7%) Total return 3 month (%) 3 year (%) 10 year (%) Since launch (%) Net asset value(1) 6.7 24.7 87.6 138.7 Share price(2) 4.7 17.3 64.9 128.9
FTSE All-share(3) 1.9 21.0 59.2 67.8
* Adjusted for 2.5p interim dividend for comparative purposes. NAV at 31st March 2011 excluding effect of interim dividend was 98.73p.
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 taxreliefs which are designed to mitigate the higher risks and costs associatedwith investing in smaller companies and the other constraints of the VCTlegislation. The tax reliefs given at the time of subscription have been 20%,40% and latterly 30%, so any adjusted performance measure including this reliefwill vary depending on the date of subscription. Additionally shareholdersbenefit from receiving VCT dividends tax free.
Investment Performance
The unquoted valuations have increased by 6.3% in the quarter to 30 June 2011as the performance of the portfolio on the whole remains strong despite thecurrent economic climate. Two unquoted investments, Nexus Vehicle Holdings andQuantix, increased in value by 18.7% and 21.7% respectively due to strongprofitable growth.The increase in the valuation of the AIM-traded portfolio was largely driven byincreases in the share prices of Staffline Recruitment Group plc (formerly anunquoted investment prior to an IPO in 2004) and IDOX plc. These companies hada combined valuation of £5.1 million at 30 June 2011.Top Ten Investments Position at Position at Percentage 30 June 31 March of NAV 2011 2011 Company as at 30 June 2011 1 2 Nexus Vehicle Holdings Limited 7.6 2 5 Quantix Limited 3.9 3 3 CableCom Networking Holdings Limited 3.9 4 7 IDOX plc 3.7 5 4 Crew Clothing Company Limited 3.5 6 12 Staffline Group plc 3.5 7 9 CSC (World) Limited 3.0 8 6 Kafevend Holdings Limited 2.9 9 11 Getting Personal Limited 2.6 10 10 Fisher Outdoor Leisure Holdings 2.5 Limited Total 37.1Analysis of Total Assets Percentage of total Percentage of total assets assets 30 June 2011 31 March 2011 Unquoted investments 44 50 AIM, Listed & Collective 31 27Investments
Interest Bearing Securities 24 19
Cash 1 4 Total cash portfolio 25 23 Total Assets 100 100
Analysis of Investment Portfolio by Sector
(excluding cash and interest bearing securities)
Percentage of total Percentage of total investments at investments at 30 June 2011 31 March 2011 Business Services 35 39 Consumer Markets 20 18 Financial Services 2 2 Healthcare & Education 9 10 IT & Media 34 31 Total 100 100Investment ActivityFour AIM traded investments totalling £855,010 were completed in the period.Two were in existing portfolio companies and two were in new companies, MusicFestivals plc and Ubisense Group plc.Investments madeCompany Date Cost (£'000) Active Risk Group plc* Jun 2011 124 Green Compliance plc* Jun 2011 101 Music Festivals plc Jun 2011 500 Ubisense Group plc Jun 2011 130 Total investments 855 *Follow on investmentsRealisationsCompany Date Cost Proceeds Multiple (£'000) (£'000) of cost†MLS Limited Jun 2011 21 21 1.0x Reed & Mackay Limited Apr 2011 1,030 4,826 4.8x Total realisations 1,051 4,847
†includes interest and dividends received in prior periods.
Events after the period end
Baronsmead VCT 2 is pleased to announce the profitable sale of its investment in Getting Personal Limited in July 2011.
Getting Personal is a leading online retailer, based in Manchester, which sellspersonalised and unique gifts including cards, notebooks, mugs and chocolate onits website www.gettingpersonal.co.uk. Getting Personal was listed in theSunday Times Fast Track 100 Fastest Growing British Companies in both 2009 and2010.Other than as discussed in this statement the Board is not aware of anysignificant events or transactions which have occurred between 30 June 2011 andthe date of publication of this statement which would have a material impact onthe financial position of the Company.
Fundraising Update
On 1 August 2011 the Government implemented an amendment to the EU ProspectusDirective giving companies the ability to raise up to €5.0 million over atwelve month period without the need to publish a prospectus (increased fromthe previous limit of €2.5 million). Dependent upon Baronsmead VCT 2'srequirement for additional resources to fund new investments in the current taxyear, the Board is considering a fund raising of the sterling equivalent of upto €5.0 million in the current tax year. If confirmed, the Chairman will writeto shareholders when the annual report to 30 September 2011 is published inNovember 2011 to give further details.
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.
Further information
Past performance is not necessarily a guide to future performance. Stockmarketsand currency movements may cause the value of investments and the income fromthem to fall as well as rise and investors may not get back the amount theyoriginally invested. Where investments are made in unquoted securities andsmaller companies, their potential volatility may increase the risk to thevalue of, and the income from, the investment.
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 Investor Relations Manager 020 7506 5600 michael.probin@isisep.com
XLON