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Matrix Income & Growth 2 VCT plc ("the Company")
Half-Yearly Report for the six months ended 31 October 2009
INVESTMENT OBJECTIVE
Matrix Income & Growth 2 VCT plc is a Venture Capital Trust ("VCT") managed byMatrix Private Equity Partners LLP ("MPEP") investing primarily in established,profitable, unquoted companies.
The Company's objective is to provide investors with a regular and growing stream of income, arising both from the income generated by the companies selected for the portfolio and from realising capital gains.
FINANCIAL HIGHLIGHTS
Half-yearly results for the six months ended 31 October 2009
Ordinary Shares (listed on 11 July 2000)
Initial net asset value per Ordinary Share 94.00 pence
Initial net assets GBP12,388,236 31 October 30 April 31 October 2009 2009 2008 Net assets GBP7,464,008 7,772,227GBP8,854,954
Net asset value per Ordinary Share 66.29 pence 69.03 77.84 pence pence
Total dividends per Ordinary Share paid 26.79 pence 26.79 26.79 pence to date
pence
Total return to shareholders since 93.08 pence 95.82 104.63 launch per share*
pence pence
(Loss)/earnings per Ordinary Share in (2.74) (22.34) (13.12) the period
pence pence pence
Total dividends per Ordinary Share paid nil pence 6.00 pence 6.00 pence in the period
C Shares (listed on 21 December 2005)
Initial net asset value per C Share 94.50 pence
Initial net assets GBP8,648,486 31 October 30 April 31 October 2009 2009 2008 Net assets GBP14,853,313 GBP GBP8,336,391 14,546,917 Net asset value per C Share 85.38 pence 86.02 91.15 pence pence
Total dividends per C Share paid to date 5.00 pence 4.00 pence 4.00 pence
Total return to shareholders since 90.38 pence 90.02 95.15 pencelaunch per share* pence (Loss)/earnings per C Share in the 0.14 pence (10.56) (4.84) penceperiod pence
Total dividends per C Share paid in the 1.00 pence 2.50 pence 2.50 pence period
* Net asset value per share plus cumulative dividends per share. This comparesto an original investment cost of 80.00 pence per share for the Ordinary ShareFund after allowing for income tax relief of 20.00 pence. The originalinvestment cost for C Shares issued on or before 5 April 2006 is 60.00 penceper share after allowing for income tax relief of 40.00 pence per share. CShares issued after 5 April 2006 have an original investment cost of 70.00pence after allowing for income tax relief of 30.00 pence per share.
INVESTMENT POLICY
The VCT's policy is to invest primarily in a diverse portfolio of UK established, profitable, unquoted companies in order to generate capital gains from trade sales and flotations.
Investments are structured as part loan and part equity in order to receive regular income and to provide downside protection in the event of under-performance.
Investments are made selectively across a number of sectors, primarily in management buyout transactions (MBOs) i.e. to support incumbent management teams in acquiring the business they manage but do not own. Investments are primarily made in companies that are established and profitable.
Uninvestedfunds are held in cash and low risk money market funds.
UK Companies
The companies in which investments are made must have no more than 15 million of gross assets at the time of investment to be classed as a VCT qualifying holding.
VCT regulation
The investment policy is designed to ensure that the VCT continues to qualifyand is approved as a VCT by HMRC. Amongst other conditions, the VCT may notinvest more than 15% of its investments in a single company and must achieve atleast 70% by value of its investments throughout the period in shares orsecurities in qualifying holdings, of which a minimum overall of 30% by valuemust be ordinary shares which carry no preferential rights. In addition,although the VCT can invest less than 30% of an investment in a specificcompany in ordinary shares it must have at least 10% by value of its totalinvestments in each qualifying company in ordinary shares which carry nopreferential rights.
Asset mix
The Investment Manager aims to hold approximately 80% by value of the VCT's investments in qualifying holdings. The balance of the portfolio is held in readily realisable interest bearing investments and deposits.
Risk diversification and maximum exposures
Risk is spread by investing in a number of different businesses acrossdifferent industry sectors. To reduce the risk of high exposure to equities,each qualifying investment is structured using a significant proportion of loanstock (up to 70% of the total investment in each VCT qualifying company).Initial investments in VCT qualifying companies are generally made in amountsranging from 200,000 to 1 million at cost. No holding in any one company willrepresent more than 10% of the value of the VCT's investments, based on cost,at the time of investment. Ongoing monitoring of each investment is carried outby the Manager generally through taking a seat on the Board of each VCTqualifying company.
Co-investment
The VCT aims to invest alongside four other Income and Growth VCTs advised by the Manager with a similar investment policy. This enables the VCT to participate in combined investments by the Investment Manager of up to 5 million.
Borrowing
The VCT has no borrowing and does not have any current plans for future borrowings.
CHAIRMAN'S STATEMENT
I am pleased to enclose the Half-Yearly Report of Matrix Income & Growth 2 VCT plc (the "Company") for the period from 1 May 2009 to 31 October 2009.
Overview
Economic conditions for smaller companies have remained tough since I lastedreported to you. Since 30 April 2009, net asset values per share for both fundshave fallen, mainly because trading conditions for several investee companieshave continued to be challenging.We continue to remain cautious and to retain liquidity. No new investments weremade during the period by either Share Fund. However, both Share Fundsparticipated in a follow-on investment after the period end in BritishInternational Holdings; and one new investment was made into Iglu.com HoldingsLimited, via the acquisition company Barnfield.
I am pleased to report that the Company realised its investment in PastaKing Holdings shortly after the period end, generating a good return for shareholders.
The overall performance of the portfolio remains satisfactory in the current economic circumstances. Several companies continue to produce encouraging results and secure new contracts.
Further details can be found in the Investment Manager's Review.
Ordinary Share Fund
The Net Asset Value ("NAV") per Ordinary Share at 31 October 2009 was 66.29pence, a 14.84% decrease when compared with 77.84 pence per share as at 31October 2008. The NAV decreased by 3.97% when compared to the NAV at 30 April2009 of 69.03 pence per share. The Fund's total return since launch is 93.08pence per share (30 April 2009: 95.82 pence per share).
Further details of the performance of the Ordinary Share Fund investments are set out in the Investment Manager's Review below.
C Share Fund
The NAV per C Share at 31 October 2009 stood at 85.38 pence, a 6.33% decreaseon the NAV when compared with 91.15 pence per share as at 31 October 2008, or5.23% after adjusting for the 1.00 penny dividend paid in this period.Excluding the 1.00 penny dividend, the NAV decreased marginally by 0.74% whencompared to the NAV at 30 April 2009 of 86.02 pence per share. This strongerrelative performance reflects the fact that the C Fund is not yet fullyinvested, so held a higher level of assets in cash. The Fund's total returnsince launch is 90.38 pence per share (30 April 2009: 90.02 pence per share).
Further details of the performance of the C Share Fund investments are set out in the Investment Manager's Review below.
Return to Shareholders
The results for this period are set out on the following pages and show a revenue loss (after tax) attributable to Ordinary Fund Shareholders of 0.15 pence per Ordinary Share (31 October 2008: profit of 1.09 pence). The total loss (after tax) attributable to Ordinary Fund Shareholders was 2.74 pence per Ordinary Share (31 October 2008: loss of 13.12 pence).
The revenue loss (after tax) attributable to C Fund Shareholders was 0.20 penceper C share (31 October 2008: profit of 1.28 pence). The total profit (aftertax) attributable to C Fund Shareholders was 0.14 pence per C share (31 October2008: loss of 4.84 pence).
Revenue returns for both Funds continue to be adversely affected by historically low levels of interest rates and by a number of investee companies being unable to pay their loan stock interest.
Share Buybacks
During the period 87,825 C Shares were bought back for cancellation, at an average price of 56.8 pence per share (net of expenses). No Ordinary Shares were bought back during the period.
Dividends
The Board's objective is, subject to the availability of sufficient reservesand liquidity, to distribute regular and consistent dividends. The Boardintends to review the level of dividends to be paid at the year-end, althoughit is unlikely that dividends from revenue returns will be possible this year.
Outlook
Your Board and Investment Manager continue to monitor economic conditions andcontinue their prudent approach to further investments, whilst remaining alertto the new opportunities that the current downturn will produce.
I would like to thank all our Shareholders for their continuing support.
Nigel MelvilleChairman22 December 2009PRINCIPAL RISKS AND UNCERTAINTIESIn accordance with DTR 4.2.7, the Board considers that the principal risks anduncertainties facing the Company have not materially changed from thoseidentified in the Annual Report and Accounts for the year ended 30 April 2009.The principal risks faced by the Company are:
economic risk;
investment and strategic risk;
regulatory risk (including VCT status);
financial and operating risk;
market risk;asset liquidity risk;market liquidity risk;credit/counterparty risk.A detailed explanation of the principal risks facing the Company can be foundin the 2009 Annual Report and Accounts on pages 23 - 24. Copies are availablefrom www.mig2vct.co.uk.RELATED PARTY TRANSACTIONS
Details of related party transactions in accordance with Disclosure and Transparency Rule 4.2.8 can be found in Note 13 to the Accounts below.
RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
(a) the half-yearly financial statements have been prepared in accordance with theStatement "Half-Yearly Financial Reports" issued by the UK Accounting StandardsBoard and give a true and fair view of the assets, liabilities, financialposition and loss of the Company as at 31 October 2009, as required by DTR4.2.4;(b) the interim management report included within the Chairman's Statement andInvestment Manager's Review includes a fair review of the information requiredby DTR 4.2.7 being an indication of important events that have occurred duringthe first six months of the financial year and their impact on the condensedset of financial statements;
(c) a description of the principal risks and uncertainties facing the Company for the remaining six months is set out above, in accordance with DTR 4.2.7; and
(d) the financial statements include a description of the related partytransactions in the first six months of the current financial year that havematerially affected the financial position or performance of the Company duringthe period, and any material changes to the related party transactions sincethe last Annual Report, in accordance with DTR 4.2.8.
For and on behalf of the Board:
Nigel MelvilleChairman22 December 2009INVESTMENT MANAGER'S REVIEWOverviewThe environment for new investment has continued to be challenging during theperiod. We have therefore remained cautious and selective when consideringpotential deals. We have avoided transactions that require significant levelsof bank borrowing, believing that over-leveraged investments will beparticularly vulnerable.
Investment Activity
No new investments were made by the Ordinary or C Share Funds during the period. However, after the period end, two investments and one disposal were made.
In November, both Share Funds participated in a follow-on investment in BritishInternational Holdings Limited. The Ordinary Share Fund invested 133,252 andthe C Share Fund 26,748 in the form of secured loan notes, as part of a 1million working capital injection by shareholders. The investment will provideadditional working capital during a time when leasing revenues have fallenthrough lack of demand in the oil and gas sector. British International has,however, secured a further contract to commence early in 2010, which willgenerate leasing revenue greater than produced in 2009.The Company successfully realised its investment in PastaKing Holdings, theNewton Abbot based supplier of fresh pasta meals, in November for proceeds of 731,000 for the Ordinary Share Fund and 510,000 for the C Share Fund. Thisrealisation contributed to total proceeds over the life of the investment of 891,000 for the Ordinary Share Fund and 622,000 for the C Share Fund,representing a 3.25 fold return on original investment costs of 274,624 and 191,720 respectively.In December, the Company invested in Iglu.com Holdings Limited via BarnfieldManagement Investments Limited, as part of our operating partner programme. TheC Share Fund's original investment of 1 million was partially refunded and theOrdinary Share Fund invested 437,309 alongside 562,691 from the C Share Fundas part of the acquisition by Matrix-advised VCTs of Iglu.com Limited, aspecialist provider of cruise and ski holidays. This investment was completedwithout recourse to bank debt and its revenues remain resilient despite therecessionary environment. Iglu is the largest specialist independent ski travelagent in the UK and fastest growing independent specialist cruise travel agentin the UK. Its reputation for offering knowledgeable impartial advice via itswebsite and telephone operators means it enjoys a high level of repeat orreferral bookings. This value added service has enabled Iglu to increase itsmarket share in ski holidays and provide continuing growth in cruise holidays.
Ordinary Share Fund Portfolio Highlights
As at 31 October 2009, the Ordinary Share Fund comprised investments in 15companies at cost of 7.41 million and current valuation of 5.10 million; on alike for like basis the portfolio shows a 4.37% fall compared with thevaluations prevailing at 30 April 2009. Over the same period the FTSE All Shareand FTSE SmallCap indices have risen by 18.94% and 26.19% respectively.Those companies in the portfolio with either direct or indirect exposure to theconstruction and housebuilding sectors have continued to suffer from weaknessin their markets. These include Youngman, PXP and Plastic Surgeon, all of whomcontinue to underperform their budgeted performance. We have worked closelywith management in each case to reduce costs significantly and ensure that theyare able to withstand the fall in demand in their markets.A number of portfolio companies have, however, continued to perform strongly;DiGiCo Europe continues to grow rapidly and new product launches have led torising profit growth. A partial loan repayment of 137,552 was made in May2009. ATG Media is experiencing increasing interest in its online auctionplatform and VSI remains on track to meet its forecasts. Campden Media has seena return to profitability as it enters its traditionally strong last quarterand Blaze Signs has successfully cut costs and is beginning to see increaseddemand for its services. Vectair is trading ahead of budget and making furtherprogress in export markets including the Middle East and India. Racoon'sprofitability is also ahead of budget, albeit well below pre-investmentexpectations.
C Share Fund Portfolio Highlights
The C Share Fund now holds investments in 13 companies at a total cost of 6.24million and a current valuation of 5.51 million. On a like for like basis theportfolio shows a 3.37% increase compared with the valuations prevailing at 30April 2009.Most of the C Share Fund's investments were made alongside the Ordinary ShareFund. In addition to these, the C Share Fund holds investments in two othercompanies. Monsal has recovered from a difficult period since its MBO and metits forecast for its year to 30 September. Monsal has a strong order book for2010 and several other opportunities are being explored. Focus Pharma continuesto trade well, is growing profits and has good visibility of further profitgrowth in 2009-2010.
Outlook
The economic outlook will continue to be difficult over the next six months,especially for small companies where recessionary pressures are greatest. Wecontinue to monitor portfolio companies to ensure they maximise their liquidityand are well placed to take advantage of the opportunities they are presented.
Both Share Funds retain liquidity to support deserving portfolio companies where required. The recent increase in new investment opportunities now coming forward, as shown by the MBO of Iglu, bodes well for a more active year ahead.
Matrix Private Equity Partners LLP22 December 2009INVESTMENT PORTFOLIO SUMMARYAs at 31 October 2009Ordinary Share Fund Date of Total Valuation % of first Book cost net investment assets by value GBP GBP Qualifying investments AiM/PLUS quoted investments
Legion Group plc (formerly SectorGuard plc) August 150,000 64,286
0.9%
2005 Provision of manned guarding, mobile patrolling, and alarm response services Vphaseplc (formerly Flightstore Group plc) March 2001 254,586 5,386 0.1% Development of energy saving devices for
domestic use
Award International Holdings plc March 2004 250,000 -
0.0% Sales promotion activities ------ ------ ------ 654,586 69,672 1.0% Unquoted investments DiGiCoEurope Limited July 2007 460,867 1,093,276 14.6%
Design and manufacture of audio mixing
desks VSI Limited April 2006 231,020 751,392 10.1%
Developer and marketer of 3D software
PastaKingHoldings Limited June 2006 274,624 731,301 9.8%
Supplier to the educational and food
service market Youngman Group Limited October 1,000,052 699,966 9.4% 2005
Manufacturer of ladders and access towers British International Holdings Limited June 2006 832,827 527,348 7.1% Supplier of helicopter services
ATG Media Holdings Limited October 508,736 487,268 6.4% 2008 Antiques publication VectairHoldings Limited January 243,784 358,905 4.8% 2006
A provider of air care and sanitary
washroom products CampdenMedia Limited January 975,000 150,717 2.0% 2006
Magazine publisher and conference organiser
Racoon International Holdings Limited December 517,350 94,616
1.3%
2006 Supplier of hair extensions, hair care
products and training Blaze Signs Holdings Limited April 2006 791,608 71,690 0.9% Sign writer
The Plastic Surgeon Holdings Limited April 2008 230,986 57,747 0.8% Snagging and finishing of domestic and
commercial properties
PXP Holdings Limited (Pinewood Structures) December 685,131 -
0.0%
2006 Designer, manufacturer and supplier of
timber frames for housing ------ ------ ------ 6,751,985 5,024,226 67.2% ------ ------ ------ Total qualifying investments 7,406,571 5,093,898 68.2% 1 ====== ====== ====== Non-qualifying investments Money market funds 2 2,121,693 2,121,693 28.4% Cash 27,981 27,981 0.4%
Legion Group plc (formerly SectorGuard plc) 106 37
0.0% ------ ------ ------
Total non-qualifying investments 2,149,780 2,149,711
28.8% ====== ====== ====== Debtors 276,176 3.7% Creditors (55,777) (0.7%) ------ ------ Net assets 7,464,008 100.0% ====== ====== 1 As at 31 October 2009, the Company (comprising both share classes) held morethan 70% of its total investments in qualifying holdings, and thereforecomplied with the VCT Investment test. For the purposes of the VCT Investmenttests, the Company is permitted to disregard disposals of investments for sixmonths from the date of disposal.2 Disclosed within Current assets as Investments at fair value in the BalanceSheet.C Share Fund Date of Total Valuation % of first Book cost net investment assets by value GBP GBP Qualifying investments Unquoted investments
BarnfieldManagement Investments July 2008 1,000,000 1,000,000 6.7% Limited
Company seeking to acquire businesses in the food manufacturing, distribution or brand management
sectors VanirConsultants Limited October 1,000,000 1,000,000 6.7% 2008
Company seeking to acquire businesses in the database management, mapping
or data mapping sectors DiGiCoEurope Limited July 2007 321,741 763,238 5.1%
Design and manufacture of audio
mixing desks MonsalHoldings Limited December 854,450 723,261 4.9% 2007
Engineering services to water and
waste sectors
Focus Pharma Holdings Limited October 660,238 656,472 4.4%
2007 Licensing and distribution of generic
pharmaceuticals PastaKingHoldings Limited June 2006 191,720 510,472 3.5% Supplier to the educational and food
service market ATG Media Holdings Limited October 355,159 340,172 2.3% 2008 Antiques publication VSI Limited April 2006 77,623 252,470 1.7%
Developer and marketer of 3D software
British International Holdings June 2006 167,173 105,854 0.7% Limited
Supplier of helicopter services
Racoon International Holdings Limited December 361,177 66,054 0.4%
2006 Supplier of hair extensions, hair
care products and training Blaze Signs Holdings Limited April 2006 606,890 54,961 0.4% Sign writer
The Plastic Surgeon Holdings Limited April 2008 161,278 40,320 0.3% Snagging and finishing of domestic
and commercial properties
PXP Holdings Limited (Pinewood December 478,305 - 0.0% Structures)
2006 Designer, manufacturer and supplier
of timber frames for housing ------ ------ ------ 6,235,754 5,513,274 37.1% ------ ------ ------ Total qualifying investments 6,235,754 5,513,274 37.1% 1 ====== ====== ====== Non-qualifying investments Money market funds 2 9,543,467 9,543,467 64.2% Cash 27,678 27,678 0.2% ------ ------ ------ Total non-qualifying investments 9,571,145 9,571,145 64.4% ====== ====== Debtors 25,727 0.2% Creditors (256,833) (1.7%) ------ ------ Net assets 14,853,313 100.0% ====== ====== 1 At 31 October 2009, the Company (comprising of both share classes) held morethan 70% of its total investments in qualifying holdings, and thereforecomplied with the VCT Investment test. For the purposes of the VCT Investmenttests, the Company is permitted to disregard disposals of investments for 6months from the date of disposal.
2 Disclosed within Current assets as Investments at fair value in the Balance Sheet.
The other Funds managed by MPEP include Matrix Income & Growth VCT plc (MIGVCT), Matrix Income & Growth 3 VCT plc (MIG3), Matrix Income & Growth 4 VCT plc(MIG4) and The Income and Growth VCT plc (I&G). All of these Funds haveco-invested alongside the Company in Blaze Signs Holdings Limited, BritishInternational Holdings Limited, DiGiCo Europe Limited, Focus Pharma HoldingsLimited, Monsal Holdings Limited, PastaKing Holdings Limited, PXP HoldingsLimited, Racoon International Holdings Limited, The Plastic Surgeon HoldingsLimited,and VSI Limited. All of these Funds with the exception of MIG3 havealso co-invested alongside the Company in Campden Media Limited, Legion Groupplc (formerly SectorGuard plc), Vectair Holdings Limited and Youngman GroupLimited. MIG VCT and MIG3 have co-invested alongside the Company in BarnfieldInvestment Management Ltd and MIG3 has also co-invested in Vanir ConsultantsLimited.
UNAUDITED NON-STATUTORY ANALYSIS BETWEEN THE ORDINARY AND C SHARE FUNDS
Unaudited Income Statement for the six months ended 31 October 2009
Ordinary Share Fund C Share Fund Notes Revenue Capital Total Revenue Capital Total GBP GBP GBP GBP GBP GBPUnrealised (losses)/profit on investments held at fair value - (248,485) (248,485)
- 176,182 176,182
Realised gains on investments held at fair value - 9,533 9,533 - 6,655 6,655 Income 3 68,655 - 68,655 111,950 - 111,950 Recoverable VAT 4 2,074 6,223 8,297 1,225 3,674 4,899
Investment management expense 5 (19,649) (58,946) (78,595)
(38,164) (114,491) (152,655)
Other expenses (67,624) - (67,624) (117,377) - (117,377) ------ ------ ------ ------ ------ ------(Loss)/profit on ordinary activities before taxation (16,544) (291,675) (308,219)
(42,366) 72,020 29,654
Tax on (loss)/profit on ordinary - - - - - -activities ------ ------ ------ ------ ------ ------(Loss)/profit attributable to equityshareholders (16,544) (291,675) (308,219) (42,366) 72,020 29,654 ====== ====== ====== ====== ====== ======
Basic and diluted earnings per share 7 (0.15)p (2.59)p (2.74)p
(0.20)p 0.34p 0.14p
Average number of shares in issue 11,259,333
20,875,823 Total of both Funds (per Half-Yearly Income Statement) Notes Revenue Capital Total GBP GBP GBP Unrealised (losses)/profit on investments held at fair value - (72,303)
(72,303)
Realised gains on investments held at fair
value - 16,188 16,188 Income 3 180,605 - 180,605 Recoverable VAT 4 3,299 9,897 13,196 Investment management expense 5 (57,813) (173,437)(231,250) Other expenses (185,001) - (185,001) ------ ------ ------ (Loss)/profit on ordinary activities before taxation (58,910)
(219,655)(278,565)
Tax on (loss)/profit on ordinary activities - -
- ------ ------ ------ (Loss)/profit attributable to equity shareholders (58,910)(219,655) (278,565) ====== ====== ======
Unaudited Balance Sheet for each Fund as at 31 October 2009
Ordinary Share Fund C Share Fund Notes GBP GBP GBP GBP Non-current assets
Assets held at fair value
through profit and loss investments 10 5,093,935 5,513,274 Current Assets Debtors and prepayments 276,176 25,727
Investments at fair value 2,121,693 9,543,467
Cash at bank 27,981 27,678 ------ ------ 2,425,850 9,596,872
Creditors: amounts falling
due within one year (55,777) (256,833) ------ ------ ------ ------ Net current assets 2,370,073 9,340,039 ------ ------ Net assets 7,464,008 14,853,313 ====== ====== Capital and reserves Called up share capital 112,593 173,963
Capital redemption reserve 19,213
878 Share premium account - 7,208,326 Revaluation reserve (2,062,743) (722,480) Special distributable reserve 2,356,473 8,041,666 Profit and loss account 7,038,472 150,960 ------ ------ Equity shareholders' funds 7,464,008 14,853,313 ====== ====== Number of shares in issue 11,259,333 17,396,263 Net asset value per share 8 66.29 p 85.38 p Adjustments Total of both Funds (see note (per Half-Yearly below) Balance Sheet) Notes GBP GBP Non-current assets Assets held at fair value through profit and loss investments 10 10,607,209 Current Assets Debtors and prepayments (238,779) 63,124 Investments at fair value 11,665,160 Cash at bank 55,659 ------ ------ (238,779) 11,783,943 Creditors: amounts falling due within one year 238,779 (73,831) ------ ------ Net current assets 11,710,112 Net assets - 22,317,321 ======Capital and reserves Called up share capital 286,556 Capital redemption reserve 20,091 Share premium account 7,208,326 Revaluation reserve (2,785,223) Special distributable reserve 10,398,139 Profit and loss account 7,189,432 ------ Equity shareholders' funds 22,317,321 ======
Note: The adjustment above nets off the inter-fund debtor and creditor balances. So that the "Total of both funds" balance sheet agrees to the interim Balance Sheet below.
UNAUDITED INCOME STATEMENTFor the six months ended 31 October 2009 Six months ended 31 October
2009 Year ended 30 April 2009
(unaudited) (audited) Notes Revenue Capital Total Revenue Capital Total GBP GBP GBP GBP GBP GBP Unrealised losses on investments held - (72,303) (72,303) - (3,778,380)(3,778,380)at fair value Realised gains/(losses) on investments held at fair value - 16,188 16,188 - (29) (29) Income 3 180,605 - 180,605 735,597 108,375 843,972 Recoverable VAT 4 3,299 9,897 13,196 22,618 67,854 90,472 Investment management expense 5 (57,813)
(173,437)(231,250) (93,039) (279,115) (372,154)
Other expenses (185,001) - (185,001) (351,173) - (351,173) ------ ------ ------ ------ ------ ------(Loss)/profit on ordinary activities (58,910)
(219,655)(278,565) 314,003 (3,881,295) (3,567,292) before taxation
Tax on (loss)/profit on ordinary activities - -
- (43,586) 43,586 - ------ ------ ------ ------ ------ ------ (Loss)/profit on ordinary activities after (58,910) (219,655)(278,565) 270,417 (3,837,709) (3,567,292)taxation ====== ====== ====== ====== ====== ======Basic and diluted earnings per share Ordinary shares 7 (0.15)p (2.59)p
(2.74)p 1.29p (23.63)p (22.34)p
C Shares 7 (0.20)p 0.34p
0.14p 1.27p (11.83)p (10.56)p
Six months ended 31 October 2008 (unaudited) Notes Revenue Capital Total GBP GBP GBP
Unrealised (losses)/gains on investments held at
fair value - (2,207,313)(2,207,313)
Realised gains/(losses) on investments held at fair
value - (29) (29) Income 3 464,611 - 464,611 Recoverable VAT 4 28,736 86,208 114,944 Investment management expense 5 (34,336) (103,011) (137,347) Other expenses (182,832) - (182,832) ------ ------ ------
(Loss)/profit on ordinary activities before taxation 276,179 (2,224,145) (1,947,966)
Tax on (loss)/profit on ordinary activities (34,582)
34,582 - ------ ------ ------ (Loss)/profit on ordinary activities after taxation 241,597 (2,189,563) (1,947,966) ====== ====== ======
Basic and diluted earnings per share
Ordinary shares 7 1.09p (14.21)p (13.12)p C Shares 7 1.28p (6.12)p (4.84)p
The total column of this statement is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations.
There were no other recognised gains or losses in the period.
Other than revaluation movements arising on investments held at fair value through profit and loss there were no differences between the profit/(loss) as stated above and at historical cost.
The notes to the unaudited financial statements below form part of these Half-Yearly financial statements.
UNAUDITED BALANCE SHEETAs at 31 October 2009 31 October
2009 30 April 2009 31 October 2008
(unaudited) (audited) (unaudited) Notes GBP GBP GBP Non-current assets Assets held at fair value through profit 10 10,607,209 10,896,904 12,219,085and loss - investments Current Assets Debtors and prepayments 63,124 273,662 303,814 Investments at fair value 11 11,665,160 11,198,762 4,694,360 Cash at bank 55,659 61,346 49,291 ------ ------ ------ 11,783,943 11,533,770 5,047,465Creditors: amounts falling due within one year (73,831) (111,530) (75,205) ------ ------ ------ Net current assets
11,710,112 11,422,240 4,972,260 ------ ------ ------Net assets 22,317,321 22,319,144 17,191,345 ====== ====== ======Capital and reserves 12 Called up share capital 286,556 281,697 205,215Capital redemption reserve 20,091 19,213 18,051Share premium account 7,208,326 6,712,239 -Capital reserve - unrealised
(2,785,223) (2,712,919) (1,141,852)
Special distributable reserve 10,398,139 10,611,920 10,727,749Profit and loss account 7,189,432 7,406,994 7,382,182 ------ ------ ------ 22,317,321 22,319,144 17,191,345 ====== ====== ======Net asset value per share Ordinary Shares 8 66.29p 69.03p 77.84pC Shares 8 85.38p 86.02p 91.15p
These accounts are unaudited and are not the Company's statutory accounts.
UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS For the six months ended 31 October 2009
Six months ended Year ended Six months ended 31 October 2009 30 April 2009 31 October 2008 (unaudited) (audited) (unaudited) Notes GBP GBP GBPOpening shareholders funds 22,319,144 20,142,891 20,142,891
Net share capital issued in the year
501,824 6,789,883 -(net of expenses)Net share capital bought back (50,241) (128,228) (85,470)Loss for the year (278,565) (3,567,292) (1,947,966) Dividends paid in year 9 (174,841) (918,110) (918,110) ------ ------ ------ Closing shareholders' funds 22,317,321 22,319,144 17,191,345 ====== ====== ======UNAUDITED CASH FLOW STATEMENTFor the six months ended 31 October 2009 Six months ended Year ended Six months ended 31 October 2009 30 April 2009 31 October 2008 (unaudited) (audited) (unaudited) GBP GBP GBPOperating activities Investment income received 185,626 935,111 521,393VAT received 120,068 - -Investment management fees paid (234,308) (373,826) (213,765)Other cash payments (212,861) (377,434) (233,858) ------ ------ ------Net cash (outflow)/inflow from operating activities (141,475) 183,851 73,770Investing activitiesAcquisition of investments - (3,758,017) (3,509,131)Disposal of investments 233,580 757,966 757,966 ------ ------ ------Net cash inflow/(outflow) from investing activities 233,580 (3,000,051) (2,751,165)Dividends Dividends paid (174,841) (918,110) (918,110) ------ ------ ------
Net cash outflow before liquid resource management and financing
(82,736) (3,734,310) (3,595,505)
Movement in money market and other deposits (466,398) (2,840,588) 3,663,814Financing Purchase of own shares (50,241) (151,530) (108,772)Share capital raised (net of expenses) 593,688 6,698,020 - ------ ------ ------Net cash inflow/(outflow) from financing 543,447 6,546,490 (108,772) ------ ------ ------Increase/(decrease) in cash (5,687) (28,408) (40,463) ====== ====== ======
Reconciliation of net cash flow to movement in net funds
GBP GBP GBPNet funds at start of period 61,346 89,754 89,754Decrease in cash for the period (5,687) (28,408) (40,463) ------ ------ ------Net funds at the end of the period 55,659 61,346 49,291 ====== ====== ======
RECONCILIATION OF LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION TO NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES
Six months ended Year ended Six months ended 31 October 2009 30 April 2009 31 October 2008 (unaudited) (audited) (unaudited) GBP GBP GBP Loss on ordinary activities before taxation
(278,565) (3,567,292) (1,947,966)
Net unrealised losses on investments 72,303 29 2,207,313Net (gains)/losses on realisations on investments (16,188) 3,778,380 -Transaction costs - - 29Decrease/(increase) in debtors
54,480 (114,664) (138,647)
Increase/(decrease) in creditors and accruals 26,495 87,398 (46,959) ------ ------ ------Net cash (outflow)/inflow from operating activities (141,475) 183,851 73,770 ====== ====== ======
The notes to the unaudited financial statements below form part of these Half-Yearly financial statements.
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
1. Principal accounting policies
The following accounting policies have been applied consistently throughout theperiod. Full details of principal accounting policies will be disclosed in
theAnnual Report.(a) Basis of accounting
The unaudited results cover the six months to 31 October 2009 and have beenprepared under UK Generally Accepted Accounting Practice (UK GAAP), consistentwith the accounting policies set out in the statutory accounts for the yearended 30 April 2009 and the 2009 Statement of Recommended Practice, 'FinancialStatements of Investment Trust Companies and Venture Capital Trusts' ("theSORP").The Half-yearly Report has not been audited, nor has it been reviewed by theauditors pursuant to the Auditing Practices Board (APB)'s guidance on Review ofInterim Financial Information.
(b) Presentation of the Income Statement
In order to better reflect the activities of a VCT and in accordance with theSORP, supplementary information which analyses the Income Statement betweenitems of a revenue and capital nature has been presented alongside the IncomeStatement. The revenue column of profit attributable to equity shareholders isthe measure the Directors believe appropriate in assessing the Company'scompliance with certain requirements set out in Section 274 Income Tax Act2007.
(c) Investments
All investments held by the Company are classified as "fair value throughprofit and loss" in accordance with International Private Equity and VentureCapital Valuation ("IPEVCV") guidelines, as updated in September 2009, whichhave not materially changed the results reported last year. This classificationis followed as the Company's business is to invest in financial assets with aview to profiting from their total return in the form of capital growth andincome.For investments actively traded in organised markets, fair value is generallydetermined by reference to Stock Exchange market quoted bid prices at the closeof business on the balance sheet date. Purchases and sales of AiM quotedinvestments are recognised on the trade date where a contract of sale existswhose terms require delivery within a time frame determined by the relevantmarket. Purchases and sales of unlisted investments are recognised when thecontract for acquisition or sale becomes unconditional.
Unquoted investments are stated at fair value by the Directors in accordance with the following rules, which are consistent with the IPEVCV guidelines:
All investments are held at the price of a recent investment for an appropriateperiod where there is considered to have been no change in fair value. Wheresuch a basis is no longer considered appropriate, the following factors areconsidered:
(i) Where a value is indicated by a material arms-length transaction by an independent third party in the shares of a company, this value will be used.
(ii) In the absence of i), and depending upon both the subsequent trading performance and investment structure of an investee company, the valuation basis will usually move to either:-.
(a) an earnings multiple basis. The shares may be valued by applying a suitableprice-earnings ratio to that company's historic, current or forecast post-taxearnings before interest and amortisation (the ratio used being based upon acomparable sector but the resulting value being adjusted to reflect points ofdifference identified by the Investment Manager compared to the sectorincluding, inter alia, a lack of marketability).
Or:-
(b) where a company's underperformance against plan indicates a diminution in thevalue of the investment, provision against cost is made, as appropriate. Wherethe value of an investment has fallen permanently below cost, the loss istreated as a permanent impairment and as a realised loss, even though theinvestment is still held. The Board assesses the portfolio for such investmentsand, after agreement with the Investment Manager, will agree the values thatrepresent the extent to which an investment loss has become realised. This isbased upon an assessment of objective evidence of that investment's futureprospects, to determine whether there is potential for the investment torecover in value.
(iii) Premiums on loan stock investments are accrued at fair value when the Company receives the right to the premium and when considered recoverable.
(iv) Where an earnings multiple or cost less impairment basis is not appropriate andoverriding factors apply, discounted cashflow or net asset valuation bases
maybe applied.(d) Capital gains and lossesCapital gains and losses on investments, whether realised or unrealised, aredealt with in the profit and loss and revaluation reserves and movements in theperiod are shown in the Income Statement.2. The Company revoked its status as an investment company on 7 September 2005, sothat it can regard realised capital profits as part of the profits availablefor distribution.3. Income Six months ended Year ended Six months ended 31 October 2009 30 April 2009 31 October 2008 (unaudited) (unaudited) (audited) GBP GBP GBP
Income from investments Dividends 2,945 214,825 90,682 Money-market funds 45,406 236,292 184,995 Loan stock interest 116,005 391,124 188,052
Bank deposit and other interest 82
1,731 882 Interest received on VAT 16,167 - - ------ ------ ------ Total Income 180,605 843,972 464,611 ====== ====== ======4. VAT recoverableAt 30 April 2009, the Directors considered it reasonably certain that theCompany would obtain a repayment of VAT of not less than 112,000. Thisestimate was based upon information supplied by the Company's InvestmentManager and discussions with the Company's professional advisors as a result ofthe European Court of Justice ruling and subsequent HMRC briefing thatmanagement fees be exempt for VAT purposes. During this period 125,196 ofrecoverable VAT was actually received. The excess of 13,196 has been creditedto the Income Statement, allocated 25% to revenue and 75% to capital return andis in the same proportion as that in which the irrecoverable VAT was originallycharged.
5. Investment management expense
In accordance with the policy statement published under "Management andAdministration" in the Company's prospectus dated 10 May 2000, the Directorshave charged 75% of the investment management expenses to the capital account.This is in line with the Board's expectation of the long-term split of returnsfrom the investment portfolio of the Company.
6. Taxation
There is no tax charge in the period, as there were taxable losses in the period.
7. Basic and diluted earnings per share
Six months ended 31 October 2009 Year ended 30 April 2009 (unaudited) (audited) Ordinary C Share Total Ordinary C Share Total Share Fund Share Fund Fund Fund GBP GBP GBP GBP GBP GBPTotal earnings after taxation: (308,219) 29,654
(278,565) (2,545,615) (1,021,677) (3,567,292)
Basic and diluted earnings per share (2.74)p 0.14p (22.34)p (10.56)p
(note a)
Revenue (loss)/profit from ordinary activities after taxation (16,544) (42,366)
(58,910) 147,005 123,412 270,417
Basic and diluted revenue earnings per (0.15)p (0.20)p 1.29p 1.27p
share (note b)
Net realised capital gains/(losses) on 9,533 6,655 16,188 (29) - (29)investmentsNet (losses)/gains on realisations on (248,485) 176,182 (72,303) (2,671,234) (1,107,146) (3,778,380)investmentsDividends treated as capital - - - 63,825 44,550 108,375VAT recoverable 6,223 3,674
9,897 37,650 30,204 67,854
Capital management fees less taxation (58,946) (114,491)
(173,437) (122,832) (112,697) (235,529)
Total capital (losses)/profit on ordinary activities after taxation (291,675) 72,020
(219,655) (2,692,620) (1,145,089) (3,837,709)
Basic and diluted capital earnings (2.59)p 0.34p (23.63)p (11.83)p
per share (note c)
Weighted average number of shares in 11,259,333 20,875,823
11,394,390 9,677,798 issue in the year Six months ended 31 October 2008 (unaudited) Ordinary C Share Share Fund Fund Total GBP GBP GBP Total earnings after taxation: (1,505,646) (442,320)
(1,947,966)
Basic and diluted earnings per share (note a) (13.12)p (4.84)p Revenue (loss)/profit from ordinary activities
after taxation 124,694 116,903 241,597
Basic and diluted revenue earnings per share (note
b) 1.09p 1.28p
Net realised capital gains/(losses) on investments (29) -
(29)
Net (losses)/gains on realisations on investments (1,644,871) (562,442) (2,207,313) Dividends treated as capital - - - VAT recoverable 54,177 32,031 86,208
Capital management fees less taxation (39,617) (28,812)
(68,429)
Total capital (losses)/profit on ordinary
activities after taxation (1,630,340) (559,223) (2,189,563)
Basic and diluted capital earnings per share (note
c) (14.21)p (6.12)p
Weighted average number of shares in issue
in the year 11,473,436 9,145,990 Notes
a) Basic and diluted earnings per share istotal earnings after taxation divided by the weighted average number of shares in issue.
b) Basic and diluted revenue earnings per share is revenue earnings after taxation divided by the weighted average number of shares in issue.
c) Basic and diluted capital earnings per share is total capital earnings divided by the weighted average number of shares in issue.
8. Net asset value per share
As at 31 October 2009 As at 30 April 2009 As at 31 October 2008 (unaudited) (audited) (unaudited) Ordinary C Share Fund Ordinary C Share Fund Ordinary C Share Fund Share Fund Share Fund Share Fund GBP GBP GBP GBP GBP GBP Net assets 7,464,008 14,853,313 7,772,227 14,546,917 8,854,954 8,336,391 Number of shares in issue 11,259,333 17,396,263 11,259,333 16,910,386 11,375,533 9,145,990 ------ ------ ------ ------ ------ ------ Net asset value per share (pence) 66.29 p 85.38 p 69.03 p 86.02 p 77.84 p 91.15 p9. Dividends Six months to 31 October 2009 Year to 30 April 2009 Six months to 31 October 2008 (unaudited) (audited) (unaudited) GBP GBP GBPOrdinary Share Fund
Dividends paid in period - nil (30 April 2009: 6 pence;31 October 2008: 6 pence) - 689,460 689,460
C Share Fund
Dividends paid in period - 1 pence per share (30 April 2009: 2.5 pence; 31 October2008: 2.5 pence) 174,841 228,650 228,650 ------ ------ ------Total 174,841 918,110 918,110 ====== ====== ======10. Summary of non current asset investments at fair value during the period Traded on Unquoted Preference Qualifying Total AiM or OFEX Ordinary Shares loans shares GBP GBP GBP GBP GBP Cost at 1 May 2009 654,692 4,813,279
42,576 9,349,276 14,859,823
Unrealised (losses)/gains at 1 May 2009 (322,044) 393,852
(35,046) (2,749,681) (2,712,919)
Permanent impairment at 1 May 2009 (250,000) (1,000,000)
- - (1,250,000) ------ ------ ------ ------ ------
Value at 1 May 2009 82,648 4,207,131
7,530 6,599,595 10,896,904
Purchases at cost - - - - - Sale proceeds - - - (233,580) (233,580)Increase in unrealised (losses)/gains (12,939) 116,262
(1,000) (174,626) (72,303) Realised gains - - - 16,188 16,188 ------ ------ ------ ------ ------
Cost/valuation at 31 October 2009 69,709 4,323,393
6,530 6,207,577 10,607,209 ====== ====== ====== ====== ======Book cost at 31 October 2009 654,692 3,813,279 42,576 9,131,884 13,642,431
Unrealised (losses)/gains at 31 October 2009 (584,983) 510,114
(36,046) (2,924,307) (3,035,222) ------ ------ ------ ------ ------
Valuation at 31 October 2009 69,709 4,323,393
6,530 6,207,577 10,607,209 ====== ====== ====== ====== ======
Unrealised (losses)/gains at 1 May 2009 (322,044) 393,852
(35,046) (2,749,681) (2,712,919)
Net movement in unrealised(depreciation)/appreciation in the period (12,939) 116,262
(1,000) (174,626) (72,303)
Permanent impairment at 31 October 2009 (250,000) (1,000,000)
- - (1,250,000)Realisation of previously unrealised losses - 1,000,000
- - 1,000,000 ------ ------ ------ ------ ------(Losses)/gains on investments at 31 October 2009 (584,983) 510,114 (36,046) (2,924,307) (3,035,222) ====== ====== ====== ====== ======
11. Investments at fair value
These comprise investments in five OEIC money market funds (four Dublin basedand one London based), managed by Barclays Global Investors (two funds), RoyalBank of Scotland, Prime Rate Capital Management, Scottish Widows InvestmentPartnership and Blackrock.GBP11,664,255 (30 April 2009: 11,197,873; 31 October2008: 4,655,274) of this sum is subject to same day access, while 905 (30April 2009: 889; 31 October 2008: 39,086) is subject to two day access.
12. Capital and reserves for the period ended 31 October 2009
Called up Capital Share Capital Special Profit and Total share capital redemption premium reserve distributable Loss reserve reserve (unrealised) reserve Account GBP GBP GBP GBP GBP GBP GBP At 1 May 2009 281,697 19,213 6,712,239
(2,712,919) 10,611,920 7,406,994 22,319,144
Issue of shares 5,737 - 524,306 - - - 530,043 Expenses of share offer - - (28,219) - - - (28,219) Shares bought back (878) 878 - - (50,241) - (50,241)
Realisation of previously unrealised - - - - - - -
losses
Transfer of realised capital losses from Cancelled Share Premium account(see note below) - - - - (163,540) 163,540 - Dividends paid - - - - - (174,841) (174,841) Loss for the year - - - (72,303) - (206,262) (278,565) ------ ------ ------ ------ ------ ------ ------At 31 October 2009 286,556 20,091 7,208,326
(2,785,222) 10,398,139 7,189,431 22,317,321 ====== ====== ====== ====== ====== ====== ======
The cancelled share premium accounts for the Ordinary Share Fund and the CShare Fund raised in 2006 provide the Company with a special reserve out ofwhich it can fund buy-backs of each Fund's Shares as and when it is consideredby the Board to be in the interests of the Shareholders, and to absorb anyexisting and future realised losses. Under Resolution 7 of the Annual GeneralMeeting held on 10 September 2009, each class of Shareholders authorised theCompany to purchase its own shares pursuant to section 166 of the Companies Act1985. The authority is limited to a maximum of 14.99 per cent of the issuedOrdinary Share Capital of the Company or, as the case maybe, 14.99% of the CShare capital, and will unless previously revoked or renewed expire on theconclusion of the Annual General Meeting of the Company to be held in 2010.The maximum price that may be paid for Ordinary Shares and C Shares will be anamount equal to 105 per cent of the average of the middle market quotation astaken from the London Stock Exchange daily official list for the five businessdays immediately preceding the day on which that Ordinary Share or, as the casemaybe, C Share, is purchased. The minimum price that may be paid for OrdinaryShares and C Shares is 1 penny per share. The authority provides that theCompany may make a contract to purchase Ordinary Shares or, as the case maybe,C Shares under the authority conferred by this resolution prior to the expiryof such authority which will or may be executed wholly or partly after theexpiration of such authority and may make a purchase of Ordinary Shares or CShares pursuant to such contract.
13. Related party transactions
Kenneth Vere Nicoll is a director and shareholder of Matrix Group Limited,which owns Matrix-Securities Limited, MPE Partners Limited and has a 51%interest in Prime Rate Capital Management LLP. MPE Partners Limited has a 50%interest in Matrix Private Equity Partners LLP, the Company's InvestmentManager. He is also a director of Matrix-Securities Limited who act as promoterto the Company but received no fees for any of the periods under review, andprovided accountancy and company secretarial services to the Company for whichit received payment of 60,695 (year ended 30 April 2009: 95,318; six monthsended 31 October 2008: 46,180).GBPNil (30 April 2009: Nil; 31 October 2008: Nil) was payable to Matrix-Securities Limited at the period-end. Matrix PrivateEquity Partners LLP is the Company's Investment Manager in respect of venturecapital investments and earned fees of 231,250 (year ended 30 April 2009: 372,154; six months ended 31 October 2008: 137,347), for the period. TheCompany has invested 2,827,853 in a liquidity fund managed by Prime RateCapital Management LLP, and earned income of 11,325 from this fund in theperiod.
Details of co-investments by other Funds managed by MPEP can be found in the Investment Portfolio Summary.
14 The financial information set out in this half-yearly financial report does notconstitute statutory accounts as defined in section 434 of the Companies Act2006. The information for the year ended 30 April 2009 has been extracted fromthe latest published audited financial statements, which have been filed withthe Registrar of Companies. The auditors have reported on these financialstatements and that report was unqualified and did not contain a statementunder section 498 (2) or (3) of the Companies Act 2006.15. Copies of this statement are being sent to all Shareholders. Further copies areavailable free of charge from the Company's registered office, One Vine Street,London, W1J 0AH or downloaded via the Company's website at www.mig2vct.co.uk.
SHAREHOLDER INFORMATION
Shareholders wishing to follow the Company's progress can visit the Company'swebsite at www.mig2vct.co.uk which contains publicly available information orlinks to information about our largest investments, the latest NAV and theshare price. The London Stock Exchange's website at www.londonstockexchange.com/en-gb/pricesnews provides up to the minute details of the share price andlatest NAV announcements, etc. A number of commentators such as Allenbridge at www.taxshelterreport.co.uk provide comparative performance figures for the VCTsector as a whole. The share price is also quoted in the Financial Times.The Company circulates a bi-annual newsletter to Shareholders in the quartersin which it does not publish annual or half-yearly accounts. The next editionwill be distributed in March 2010.
Net asset value per share
The Company's NAV per share as at 31 October 2009 was 66.29 pence per OrdinaryShare and 85.38 pence per C Share. The Company announces its unaudited NAV
on aquarterly basis.Dividend
The Board is not recommending the payment of an interim dividend in respect ofthe six months ended 31 October 2009 to either Ordinary Shareholders or CShareholders. The Directors will consider the payment of final dividends inrespect of the year-ending 30 April 2010 when they review the full yearresults.Shareholders who wish to have future dividends paid directly into their bankaccount rather than sent by cheque to their registered address can complete amandate for this purpose. Mandates can be obtained by contacting the Company'sRegistrars, Capita Registrars at the address below.
Shareholder enquiries:
For enquiries concerning the investment portfolio, please contact the Investment Manager, Matrix Private Equity Partners LLP, on 020 3206 7266 or by e-mail to info@matrixpep.co.uk.
For information on your holding, to notify the Company of a change of addressor to request a dividend mandate form (should you wish to have future dividendspaid directly into your bank account) please contact the Company's Registrars, Capita Registrars, on 0871 664 0300, (calls cost 10p per minute plus networkextras, lines are open 8.30 am - 5.30 pm Mon-Fri. If calling from overseasplease dial +44 208 639 3399) or write to them at Northern House, WoodsomePark, Fennay Bridge, Huddersfield, West Yorkshire, HD8 0LA. Alternatively youcan contact them via their web site at www.capitaregistrars.com. CORPORATE INFORMATION Directors Nigel Melville (Chairman) Adam Kingdon Sally Duckworth Kenneth Vere Nicoll Company's registered office and head office One Vine Street London W1J 0AH Company Registration Number 3946235 Website www.mig2vct.co.uk Secretary Investment Manager Promoter and Company Accountants
Matrix-Securities Matrix Private Equity Matrix-Securities Limited
Limited Partners LLP One Vine Street One Vine Street One Vine Street LondonLondon London W1J 0AHW1J 0AH W1J 0AH e-mail: e-mail:
mig2@matrixgroup.co.uk info@matrixpep.co.uk
Auditors and Tax VCT Tax Adviser Solicitors Advisers PricewaterhouseCoopers Martineau PKF (UK) LLP LLP No 1 Colmore Square Farringdon Place 1 Embankment Place Birmingham 20 Farringdon Road London B4 6AA London WC2N 6RN EC1M 3AP Also at 35 New Bridge Street London EC4V 6BW Bankers Stockbrokers Registrar Barclays Bank plc Matrix Corporate Capita Registrars PO Box 544 Capital LLP Northern House 54 Lombard Street One Vine Street Woodsome Park London London Fennay Bridge EC3V 9EX W1J 0AH Huddersfield West Yorkshire HD8 0LA
MATRIX INCOME & GROWTH 2 VCT PLC