Last checked at 
17 Aug 2012 14:01
Baronsmead VCT 2 plc Interim Management Statement
For the 3 month period from 1 April 2012 to 30 June 2012.
Financial Headlines
£6.3 million invested in nine companies 2.1% increase in underlying Net Asset Value Performance Summary As at As at 30 June 31 Mar 2012 2012 Net assets £71.62m £72.17m Net asset value per 99.58p 97.50p* share Share price 87.25p 87.38p Discount to NAV (12.4%) (10.4%) Dividends paid (1) 7.00p Dividend yield (2) 8.0% Gross yield (3) 10.7% Total return 3 months 1 year 5 years 10 years (%) (%) (%) (%) Net asset value (4) 2.1 4.0 18.3 112.2 FTSE All-Share(5) (2.6) (3.1) 2.0 80.9 Key:
* Adjusted for 2.5p interim dividend for comparative purposes
(1) Dividends paid in the twelve months to 30 June 2012
(2) Dividends paid expressed as a percentage of the share price as at 30 June 2012
(3) Gross equivalent yield if the dividends had been subject to higher rate tax(currently 32.5% on dividend income). For shareholders who pay the additionalrate of tax (currently 42.5% on dividend income) the gross equivalent yieldwould be 12.6%.
(4) NAV total return = NAV + reinvested dividends; Source: ISIS EP LLP
(5) FTSE All-Share = FTSE All-Share Index + reinvested dividends; Source: AIC
These total returns are stated before the inclusion of VCT tax reliefswhich are designed to mitigate the higher risks and costs associatedwith 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 willvary depending on the date of subscription.
Investment Performance
The unquoted portfolio valuation increased by 2.9% during the quarter and theAIM portfolio increased in value by 4.0% over the same period. The net assetvalue total return of the company was 2.1% during the quarter as compared withthe FTSE All-Share Total Return which showed a negative return of 2.6% over
thesame periodTop Ten Investments Position at Position at Percentage 30 June 31 Mar of NAV 2012 2012 Company as at 30 June 2012 1 1 Nexus Vehicle Holdings Limited 6.6 2 3 IDOX plc 6.2 3 2 CableCom Networking Holdings Limited 5.4 4 4 Crew Clothing Holdings Limited 4.3 5 7 Fisher Outdoor Leisure Holdings 3.9 Limited 6 9 Independent Living Services Limited 3.7 7 6 CSC (World) Limited 3.2 8 8 Kaf©vend Holdings Limited 3.1 9 5 Staffline Group plc 3.1 10 10 Valldata Group Limited 2.4 Total 41.9Analysis of Total Assets Percentage of Percentage of total assets total assets 30 June 2012 31 Mar 2012 Unquoted investments 49 42 AIM, listed & collective 36 33investment vehicle Listed interest bearing 14 37 securities Net Current assets 1 (12) Total liquid assets 15 25 Total Assets 100 100Analysis of Investment Portfolio by Sector(excluding liquid assets) Percentage of total Percentage of total investments at investments at 30 June 2012 31 Mar 2012 Business Services 33 35 Consumer Markets 18 17 Financial Services 2 2 Healthcare & Education 15 14 Technology, Media and 32 32Telecommunications Total 100 100Investment Activity
A total of approximately £6.3m was invested in the three months to 30 June 2012The four new unquoted investments totalling £3.8m included investments inthree "acquisition" companies formed to enable investments into establishedtrading entities over the next two years. One "follow-on" investment of £0.4minto an existing unquoted portfolio company was also completed. £1.1m wasinvested into AIM traded companies and a further investment of £1.0m was madeinto the existing collective investment vehicle, Wood Street MicrocapInvestment Fund.
After the period end the Company invested £1.0 million in Pho, an unquoted restaurant group specialising in Vietnamese street food.
Investments madeCompany Date Cost (£'000) Dods Group plc* Apr 2012 678 Happy Days Consultancy Limited Apr 2012 833 Ingleby (1885) Limited Apr 2012 1,000 Ingleby (1886) Limited Apr 2012 1,000 Ingleby (1887) Limited Apr 2012 1,000 Inspired Energy plc* Apr 2012 100 Wood Street Microcap Investment Fund* Apr 2012 1,000 Zattikka plc Apr 2012 316 Crew Clothing Holdings Limited* May 2012 360 Total investments 6,287 *Follow on investments
During the period three AIM investments were realised in full. In addition oneunquoted investment, MLS Limited, was partially redeemed and further proceedsfrom the sale of TVC Group Limited, realised in March, were received.RealisationsCompany Date Cost Proceeds Multiple (£'000) (£'000) of cost MLS Limited (partial realisation) May 2012 22 22 1.0 Prologic plc May 2012 310 151 0.5
Real Good Food Company (The) plc May 2012 306 120 0.4
Stagecoach Theatre Arts plc Apr 2012 419 293
0.7
TVC Group Limited (further Jun 2012 - 49
n/aproceeds) Total realisations 1,057 635 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 event described above, the Board is not aware of any significantevents or transactions which have occurred between 1 July 2012 and the date ofpublication of this statement which would have a material impact on thefinancial position of the Company.
Further information
Further information regarding the Company, including net asset values published since the end of the period and quarterly fact sheets, can be found at the Company's website www.baronsmeadvct2.co.uk
Contact
For further information please contact:
Michael Probin Investor Relations Director 020 75065600 michael.probin@isisep.com