New Cent.2 Regulatory News (NCA2)

4 Sep 2017 07:34

New Century AIM VCT 2 plc

For the six months to 30th June 2017

Chairman’s Statement

In the six months to 30th June 2017, the net asset value (NAV) of your fund increased by 8.2% to 66p. The FSTE AIM Allshare index gained 14.4% over the same period. This index encompasses all sectors and includes many mining, oil and gas companies that have performed well in the year. Your fund is constrained from investing in these types of businesses as part of the VCT rules.

The fund went ex-dividend to the amount of 3p per share in June which falls within the accounting period under review. If we add that back to the NAV, the fund increased by 13.12%. The Board realises the importance of income to its shareholders as well as trying to achieve an increase in its NAV, and based on a current mid-market price of 57p for its shares, the fund has a dividend yield of 5.26%.

The Stock Market performance has been quite strong although this has helped mask some volatility within the period. The fund has continued to increase its NAV since the half year seeing the NAV rise from 64.58p (ex div) at 30th June to that of 67.49p as at 14th August 2017 which is a further rise of 4.51%. This NAV is based on mid-market prices, the industry standard, in-line with those reported to the Market at the end of each month, whereas in our annual and interim report we quote the NAV based on bid prices as a statutory requirement.

We made seven further VCT qualifying investments in the period, TEK Capital, Infrastrata, Anglo African Oil and Gas, Audioboom, Escape Hunt, Velocity Composites and Modern Water Group.

We top sliced or exited 6 qualifying investments and three non-qualifying.

We continue to see potential new qualifying issues, but remain cautious in our approach. The uncertainty regarding the BREXIT negotiations following the General election results may cause increased volatility in the months ahead, however the majority of our investee companies continue to trade well which bodes well and gives us some optimism for the remainder of the year.

Geoff Gamble

Chairman

29 August 2017

New Century AIM VCT2 plc

For the six months to 30th June 2017

Unaudited Balance Sheet

				Interim Accounts						Final Accounts						Interim Accounts
				as at 30 June 2017						as at 31 December 2016*						as at 30 June 2016
				£'000		£'000				£'000		£'000				£'000		£'000
Fixed Assets
		Investments				2,979						2,725						2,553
Current Assets
		Sundry debtors		-						-						-
		Uninvested cash		70		70				97		97				64		64
Current Liabilities
		Creditors: amounts due
		within one year				(17)						(17)						(6)
						3,032						2,805						2,611
Capital and Reserves
		Share capital				461						461						461
		Share premium				57						57						57
		Capital redemption reserve				171						171						171
		Capital reserve-distributable				3,440						3,440						-
		Capital reserve - realised				(1,602)						(1,725)						(1,015)
		Capital reserve - unrealised				1						(127)						2,330
		Revenue reserve				504						528						607
						3,032						2,805						2,611
Asset Value per share						66p						61p						57p
										*Audited accounts

New Century AIM VCT2 plc

For the six months to 30th June 2017

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

				6 month period ended 30 June 2017						Year to 31 December 2016*						6 month period ended 30 June 2016
				Revenue		Capital		Total		Revenue		Capital		Total		Revenue		Capital		Total
				£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000
Gains/(losses) on investments
Realised				-		60		60		-		29		29		-		28		28
Unrealised				-		203		203		-		(34)		(34)		-		(317)		(317)
Income				12		-		12		50		-		50		17		-		17
Investment management fees				(4)		(12)		(16)		(7)		(21)		(28)		(4)		(10)		(14)
Other expenses				(32)		-		(32)		(44)		-		(44)		(16)		-		(16)
Return on ordinary activities				(24)		251		227		(1)		(26)		(27)		(3)		(299)		(302)
Tax on ordinary activities				-		-		-		-		-		-		-		-		-
Return on ordinary activities
after taxation				(24)		251		227		(1)		(26)		(27)		(3)		(299)		(302)
Return per ordinary share in pence				(0.52)		5.45		4.93		(0.02)		(0.56)		(0.58)		(0.07)		(6.49)		(6.56)
										*Audited Accounts
All revenue and capital items in the above statement derive from continuing operations.
The company has only one class of business and derives its income from investments in shares and securities, and
from bank and money market funds.
The weighted average number of shares in issue during the period was 4,606,953.

New Century AIM VCT2 plc

For the six months to 30th June 2017

Unaudited Consolidated Statement of Changes in Equity

		Called-up share capital £’000		Share Premium account£’000		Capital Redemption reserve £’000		Capital Reserve- distributable £’000		Capital realised £’000		Capital unrealised £’000		Revenue reserve£’000		Total £’000
As at 1 January 2017		461		57		171		3,440		(1,725)		(127)		528		2,805
Realised gains on disposals in period		-		-		-		-		60		-		-		60
Unrealised gain		-		-		-		-		-		203		-		203
Transfer of unrealised gain to realised on disposal of investment		-		-		-		-		75		(75)		-		-
Net revenue before tax		-		-		-		-		-		-		(24)		(24)
Investment management fee		-		-		- - -		-		(12) (10)		-		-		(12) (10)
		________		________		_________		_________		________		________		________		________
At 30 June 2017		461		57		171		3,440		(1,602)		1		504		3,032
As at 1 January 2016		461		57		171		-		(1054)		2,668		610		2,913
Realised gains on disposals		-		-		-		-		28		-		-		28
Unrealised gains		-		-		-		-		-		(317)		-		(317)
Transfer of unrealised loss to realised on disposal of investment		-		-		-		-		21		(21)		-		-
Net revenue before tax		-		-		-		-		-		-		(3)		(3)
Investment management fee		-		-		-		-		(10)		-		-		(10)
		________		________		_________		_________		________		________		________		________
At 30 June 2016		461		57		171		-		(1,015)		2,330		607		2,611

New Century AIM VCT2 plc

For the six months to 30th June 2017

Unaudited Cash Flow Statement

		6 month period ended 30 June 2017								Year to 31 December 2016*								6 month period ended 30 June 2016
		£'000				£'000				£'000				£'000				£'000				£'000
Net cash generated from operating activities						(47)								(72)								(40)
Cash flow from investing activities
Interest received		-								-								-
Investment income		12								50								17
						12								50								17
Cash flows from financing activities
Sale of investments		237								413								162
Purchase of investments		(229)								(265)								(126)
Dividend paid		-								(81)								-
						8								67								36
Net (decrease) / increase in cash and cash equivalents						(27)								46								13
Cash and cash equivalents at beginning of period						97								51								51
Cash and cash equivalents at end of period						70								97								64
										*Audited Accounts

New Century AIM VCT2 plc

For the six months to 30th June 2017

Investment Portfolio

	Security		Cost		Valuation		%		%
					30 June 2017		Cost		Valuation
	Qualifying Investments		2,526,180		2,623,407		84.68		86.02
	Non-qualifying Investments		386,568		356,068		12.96		11.67
	Uninvested funds		70,351		70,351		2.36		2.31
			2,983,099		3,049,826		100.00		100.00
	Qualifying Investments
	AIM Quoted
	Marechale Capital plc		75,752		9,375		2.54		0.30
	HML Holdings plc		108,540		160,000		3.64		5.24
	TP Group plc		160,062		54,226		5.36		1.77
	Tristel plc		29,098		131,130		0.97		4.30
	Cyanconnode Holdngs plc		204,219		24,630		6.85		0.81
	M.Winkworth plc		56,280		74,200		1.89		2.43
	Inspired Energy plc		50,462		271,687		1.69		8.91
	Microsaic Systems plc		92,002		11,532		3.08		0.38
	Venn Life Sciences Holdings plc		155,184		80,976		5.20		2.66
	DP Poland plc		25,630		72,250		0.86		2.37
	Modern Water plc		75,385		37,636		2.53		1.23
	Quixant plc		8,091		60,900		0.27		2.00
	Blur Group plc		6,785		0		0.23		0.00
	Keywords Studios plc		18,979		114,588		0.64		3.76
	Sanderson Group plc		15,203		18,425		0.51		0.60
	Cloudbuy plc		41,896		3,082		1.40		0.10
	PHSC plc		50,256		24,000		1.68		0.79
	EU Supply plc		19,422		13,680		0.65		0.45
	Plastics Capital plc		33,168		38,940		1.11		1.28
	Sysgroup plc		45,232		32,250		1.52		1.06
	Brighton Pier Group plc		35,379		20,900		1.19		0.69
	Kalibrate Technologies plc		27,975		28,537		0.94		0.94
	Property Franchise Group plc		50,253		80,000		1.68		2.62
	Solid State plc		35,247		57,892		1.18		1.90
	Audioboom Group plc		72,869		73,500		2.44		2.41
	Scholium Group plc		40,203		16,800		1.35		0.55
	Rosslyn Data Technologies plc		23,219		2,975		0.78		0.10
	Coral Products plc		25,104		27,750		0.84		0.91
	SRT Marine Systems plc		18,093		45,000		0.61		1.48
	ULS Technology plc		18,091		55,350		0.61		1.81
	Gfinity plc		50,405		57,525		1.69		1.89
	Premier Technical Services Group plc		52,420		124,372		1.76		4.08
	Angle plc		75,128		79,350		2.52		2.60
	Bilby plc		52,465		63,900		1.76		2.10

	Security		Cost		Valuation		%		%
					30 June 2017		Cost		Valuation
	Hunters Property plc		50,253		55,000		1.68		1.80
	Satellite Solutions Worldwide Group plc		55,027		82,125		1.84		2.69
	Tekcapital plc		82,292		108,750		2.76		3.57
	Falanx Group Ltd		23,923		11,900		0.80		0.39
	Premaitha Health plc		40,204		20,500		1.35		0.67
	Photonstar LED Group plc		15,079		8,700		0.51		0.29
	Yu Group plc		20,504		46,309		0.69		1.52
	Scancell Holdings plc		20,506		15,000		0.69		0.49
	Medaphor Group plc		25,129		8,889		0.84		0.29
	Imaginatik plc		20,104		14,000		0.67		0.46
	Loopup Group plc		20,104		29,400		0.67		0.96
	Faron Pharmaceuticals Ltd		20,103		58,000		0.67		1.90
	Cloudcall Group plc		20,230		31,150		0.68		1.02
	Creo Medical Group plc		37,691		41,447		1.26		1.36
	InfraStrata plc		15,077		21,000		0.51		0.69
	Anglo African Oil & Gas plc		65,329		54,438		2.19		1.78
	Escape Hunt plc		31,006		32,904		1.04		1.08
	Velocity Composites plc		9,425		10,147		0.32		0.33
			2,420,483		2,617,017		81.14		85.81
	Unlisted Investments
	Litebulb Group Ltd		51,008		0		1.71		0.00
	Outsourcery plc		28,143		0		0.94		0.00
	Syqic plc		26,546		6,390		0.89		0.21
			105,697		6,390		3.54		0.21
	Total qualifying investments		2,526,180		2,623,407		84.68		86.02
	Non Qualifying Investments
	AIM Quoted
	Sanderson Group plc		10,398		16,750		0.35		0.55
	Rotala plc		27,683		40,600		0.93		1.33
	Tristel plc		60		186		0.00		0.00
	China Food Co plc		31,547		1,100		1.06		0.04
	TLA Worldwide plc		26,975		16,000		0.90		0.52
	Audioboom Group plc		1,163		210		0.04		0.01
	Mountfield Group plc		7,645		5,600		0.25		0.18
	Be Heard Group plc		10,040		8,480		0.34		0.28
	EVR Holdings plc		27,995		136,000		0.94		4.46
	Yolo Leisure & Technology plc		12,798		3,750		0.43		0.12
			156,304		228,676		5.24		7.49
	Security		Cost		Valuation		%		%
					30 June 2017		Cost		Valuation
	UK Listed
	Investec plc		169,416		90,525		5.68		2.97
	British American Tobacco plc		8,841		20,936		0.30		0.69
	Twentyfour Income Fund Ltd		9,852		9,950		0.33		0.32
			188,109		121,411		6.31		3.98
	Unlisted Investments
	Litebulb Group Ltd		21,897		0		0.73		0.00
	Sorbic International plc		10,205		1,450		0.34		0.05
	Mar City plc		10,053		4,531		0.34		0.15
			42,155		5,981		1.41		0.20
	Total non-qualifying investments		386,568		356,068		12.96		11.67

New Century AIM VCT2 plc

Notes to the Accounts

This interim financial information and the unaudited interim accounts for the six months to 30 June 2017 from which it has been extracted, are the responsibility of the directors and were approved by them on 29 August 2017, do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 and have not been delivered to the Registrar of Companies.

The Company is an investment company as defined in Section 833 of the Companies Act 2006. The unaudited interim accounts have been prepared in accordance with the Financial Reporting Council’s (FRC) Financial Reporting Standard 104 Interim Financial Reporting (March 2015) and with the Statement of Recommended Practice for Investment Companies re-issued by the Association of Investment Companies in November 2014 and updated in January 2017.

The unaudited interim accounts have been prepared using accounting policies that the company applied in the accounts for the year ending 31 December 2016, incorporating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The company considers these accounting policies will be used in the accounts for the year ending 31 December 2017.

Listed, AIM or NEX Markets-traded investments are stated at market value, which is based upon market bid prices in an active market at the balance sheet date. These would all meet tier 1 of the fair value hierarchy.

4,606,953 Ordinary Shares of 10 pence each were in issue throughout the period under review.

Net Asset Value per share at 30 June 2017 was 66p (at 31 December 2016: 61p; 30 June 2016: 57p).

No dividend was paid in the period.

There have not been any significant events since the balance sheet date.

New Century AIM VCT2 plc is managed by M D Barnard & Co. Limited (‘MDB’), a company controlled by Michael Barnard who is a non-executive director of the company. Under the terms of the management agreement MDB are entitled to a fee (exclusive of VAT) equal to 1% per annum of the net assets of the company. During the period the management fee was £16k (the year ended 31 December 2016: £28k, the period ended 30 June 2016 £14k).

Copies of the Interim Report to Shareholders have been sent to shareholders and are available at the Company’s Registered Office: Tricor Secretaries Ltd, 4th Floor, 50 Mark Lane, London EC3R 7QR.

New Century AIM VCT2 plc

Directors, Investment Managers and Advisors

Directors, Investment Manager and Advisors
Directors		Geoffrey Charles Gamble (Chairman)
		Michael David Barnard
		Peter William Riley
		Ian Cameron-Mowat
Secretary		Tricor Secretaries Ltd
and registered office		4th Floor, 50 Mark Lane
		London EC3R 7QR
Investment Manager and Broker		MD Barnard & Co Ltd
		17-21 New Century Road
		Laindon
		Essex SS15 6AG
Registrars		Neville Registrars Ltd
		18 Laurel Lane
		Halesowen
		B63 3DA
Auditor and VCT status advisors		UHY Hacker Young LLP
		Quadrant House
		4 Thomas More Square
		London E1W 1YW

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