Final Results

Final Results

Keydata Income VCT 2

KEYDATA INCOME VCT 2 plc

Preliminary Announcement of Final Results for the year ending 28 February 2009

Financial Highlights

	Â	2009	Â	2008	Â	% change
Capital Values:
Net assets (£000)		3,761		7,160		-47.5%
Net asset value per share		51.47p		98.00p		-47.5%
Cumulative distributions paid		4.33p		1.33p
Net asset value total return		55.80p		99.33p		-43.8%
						Â
Share price (mid)		42.5p		75p		-43.3%
Discount to net asset value		17.4%		23.5%
						Â
(Loss) earnings per share:
Revenue return		(5.16p)		3.23p
Capital return		(38.37p)		-
Total return		(43.53p)		3.23p
Total expense ratio		2.10%		2.06%
						Â
Dividends (per share)
Interim paid		-		-
Final proposed		-		3.0p
Total for year		-		3.0p
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Chairman’s Statement

Investment Update

Progress in the year has been frustratingly slow on the construction of the renewable energy project in St Helens. The main contractor notified us on 30 October 2008 that it was not able to complete construction on our project due to funding problems. The same contractor was used by all investee companies.

Although the contractor has notified us that some progress has been made in securing additional funding, there is clearly no certainty in the current environment that they will secure funding to complete the construction.

The Board is currently reviewing various options including terminating the contract with the contractor and pursuing a legal claim for damages, the use of an alternative contractor and the sale of the investments. An impairment charge of 45% (£2,803,000) has been made in the year to state investments at market value in the current operating environment. An additional £844,000 impairment charge has also been made to reverse accrued interest on loan notes.

Results

The net asset value per share at 28 February 2009 was 51.47 pence, a decrease of 47.5% in the year. Adjusted for cumulative dividends paid of 4.33p, the total return is 55.80 pence, a 43.8% decrease in the year.

Losses per share for the period were 43.53 pence per share (comprising revenue losses of 5.16 pence and capital losses of 38.37 pence).

Dividends

No dividend is proposed in respect of the year (2008 - 3 pence).

Outlook

The Board is acutely aware of how unsatisfactory the present situation is for shareholders. We will update shareholders as soon as we determine a clear way forward.

Shareholder Communication

The Company’s daily share price can be found on various financial websites under the EPIC code “KIV2” or on our own dedicated website at www.keydata.co.uk/incomevct

Stephen Oxenbridge
Chairman

27 May 2009

Consolidated income statement for the year ending 28 February 2009

	Â	2009 (unaudited)
		Revenue £000	Â	Capital £000	Â	Total £000
						Â
Loss on investments		-		(2,803)		(2,803)
Income		546		-		546
		--------		-------		--------
		546		(2,803)		(2,257)
Management fees		-		-		-
Other expenses		(79)		-		(79)
Impairment charge		(844)				(844)
		--------				--------
		(923)				(923)
		--------		----------		--------
(Loss)/ profit before taxation		(377)		(2,803)		(3,180)
Taxation		-		-		-
		--------		--------		--------
(Loss)/ profit after taxation		(377)		(2,803)		(3,180)
		--------		--------		--------
(Loss) /earnings per share (Note 2)		(5.16p)		(38.37p)		(43.53p)
						Â
Interim dividend paid						-
Final dividend proposed						-
Total for year		Â		Â		-
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The total column of this statement is the income statement of the Group. All revenue and capital items in the above statement derive from continuing operations.
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Consolidated income statement for the year ending 29 February 2008

	Â	2008 (audited)
		Revenue £000	Â	Capital £000	Â	Total £000
						Â
Loss on investments		-		-		-
Income		443				443
		--------		----------		--------
		443		-		443
Management fees		-		-		-
Other expenses		(148)		-		(148)
Impairment charge		-		-		-
		--------				--------
		(148)		-		(148)
		--------		----------		--------
Profit before taxation		295		-		295
Taxation		(59)		-		(59)
		--------		--------		--------
Profit after taxation		236		-		236
		--------		----------		--------
Earnings per share (Note 2)		3.23p		-		3.23p
						Â
Interim dividend paid						-
Final dividend proposed						3.0p
Total for year		Â		Â		3.0p
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The total column of this statement is the income statement of the Group. All revenue and capital items in the above statement derive from continuing operations.
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Balance sheet as at 28 February 2009

Group and Company

	Â	2009 (unaudited) £000	Â	2008 (audited) £000
				Â
Fixed assets
Investments		3,427		6,230
Current assets
Debtors		2		318
Cash		345		693
		-------		--------
		347		1,011
				Â
Creditors: amounts falling due within one year		(13)		(81)
		-------		--------
Net current assets		334		930
				Â
		-------		--------
Net assets		3,761 -------		7,160 --------
Capital and Reserves
Called up share capital		73		73
Capital reserve		(2,803)		-
Special Reserve		6,847		6,847
Revenue reserve		(356)		240
		-------		--------
Equity shareholders’ funds		3,761		7,160
		-------		--------
Net asset value per share (Note 4)		51.47p		98.00p
				Â

Cash flow statement for the year ending 28 February 2009

Group and Company

	Â	2009 (unaudited) £000	Â	2008 (audited) £000
					Â
(Loss) /profit before taxation		(3,180)		295
					Â
Decrease)/ increase in receivables		316		(250)
Decrease in payables		(9)		(23)
Loss on investments		2,803		-
Taxation paid		(59)		(18)
		-------		--------
Net cash (outflow)/inflow from operating activities		(129)		4
		-------		--------
Financial investment:		Â		Â
Purchase of investments		-		(10,871)
Sale of investments		-		4,641
		--------		------
Net cash used in investing activities		-		(6,230)
					Â
Financing activities
Dividends paid		(219)		(73)
		--------		-------
Net cash used in financing activities		(219)		(73)
		--------		-------
					Â
					Â
Net (decrease)/ increase in cash and cash equivalents		(348)		(6,299)
Opening cash and cash equivalents		693		6,992
		-------		--------
Closing cash and cash equivalents		345		693
		-------		--------
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Statement of changes in equity

for the year ending 28 February 2009 (unaudited)

Group and Company

	Â	Share Capital   £000	Â	Share Premium   £000	Â	Capital Reserve   £000	Â	Revenue Reserve   £000	Â	Special Reserve   £000	Â	Total     £000
													Â
Beginning of year		73		-		-		240		6,847		7,160
Loss on investments		-		-		(2,803)		-		-		(2,803)
Revenue loss for the year		-		-		-		(377)		-		(377)
Dividends paid		-		-		-		(219)		-		(219)
		---------		--------		---------		-------		----------		--------
End of year		73				(2,803)		(356)		6,847		3,761
		-------		--------		-------		-------		--------		--------
													Â

Statement of changes in equity

for the year ending 29 February 2008 (audited)

Group and Company

	Â	Share Capital   £000	Â	Share Premium   £000	Â	Capital Reserve   £000	Â	Revenue Reserve   £000	Â	Special Reserve   £000	Â	Total   £000
Beginning of year		73		6,847		-		77		-		6,997
Changes in equity:
Revenue profit for the year		-		-		-		236		-		236
Taxation		Â		Â		Â		Â		Â		Â
Dividends paid		-		-		-		(73)		-		(73)
Transfer between reserves		-		(6,847)		-		-		6,847		-
		----------		----------		----------		----------		----------		----------
End of year		73		-		-		240		6,847		7,160
		----------		----------		----------		----------		----------		----------

Investment portfolio summary as at 28 February 2009

Qualifying investments	Â	Equity   £000	Â	Loan Note £000	Â	Book cost £000	Â	Valuation   £000	Â	Investments   %
Nevin Energy Resources Ltd		283		660		943		519		15.2
Cooke Generation Ltd		283		660		943		519		15.2
Burley Energy Ltd		283		660		943		519		15.1
Boyle Electrical Generation Ltd		283		660		943		518		15.1
Hughes Power Ltd		143		333		476		262		7.6
Clarke Power Services Ltd		302		698		1,000		550		16.1
Spencer Energy Services Ltd		292 -------		681 -------		973 --------		535 --------		15.6 --------
Total qualifying investments		1,869		4,352		6,221		3,422		99.9
											Â
Non-qualifying investments
Docherty Heat & Energy Distributor Ltd		3		-		3		1		0.0
Clarke Power Services Ltd		-		6		6		4		0.1
		------		------		--------		-------		--------
Total non-qualifying investments		3		6		9		5		0.1
		------		------		--------		-------		--------
Total investments		1,872 ------		4,358 ------		6,230 -------		3,427 -------		100.0 -------

Notes to the preliminary announcement

1	The financial information above has been prepared in accordance with International Financial Reporting Standards (IFRSs). The financial information set out above does not constitute the Group’s statutory accounts for the year ended 28 February 2009 The full statutory annual accounts will be delivered to shareholders in May 2009 and delivered to the Registrar of Companies following the Company’s AGM. Copies may in due course be obtained during normal business hours from Keydata Investment Services Limited, One Angel Court, London EC2R 7HJ.   Statutory accounts for the year ended 29 February 2008 have been delivered to the Registrar of Companies and contained an unqualified audit report.   The Annual general meeting of the Company will be held at the Company’s registered office at 19 Cavendish Square, London W1A 2AW on 30 June 2009 at 1pm
2	Revenue (loss) earnings per ordinary share is based on a loss after tax of £377,000 (2008 - £236,000 profit) and on 7,306,320 (2008 – 7,306,320) ordinary shares, being the weighted average number of ordinary shares in issue during the year.   Capital loss per ordinary share is based on a loss after tax of £2,803,000 (2008 - £nil) and on 7,306,320 (2008 – 7,306,320) ordinary shares, being the weighted average number of ordinary shares in issue during the year.
3	The net asset value per ordinary share is based on net assets at the year end and on 7,306,320 (2008 – 7,306,320) ordinary shares, being the number of ordinary shares in issue at year end.

27 May 2009

Contact enquiries:
Craig McNeilCraig McNeil
Company SecretaryCompany Secretary
Keydata Income VCT 2 plcKeydata Income VCT 2 plc
0141 228 63100141 228 6310