Half-year Report

Half-year Report

New Cent. Aim Vct 2

New Century AIM VCT 2 plc

For the six months to 30^th June 2018

Chairman’s Statement

In the six months to 30^th June 2018, the net asset value (NAV) of your fund increased by 1.47% to 69p. The FTSE AIM Allshare index gained 3.7% 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 as mentioned in previous reports is constrained from investing in most of these types of businesses as part of the VCT rules.

The fund went ex dividend of 3.3p per share in June which falls within the accounting period under review. If we add that back to the NAV the fund increased by 6.32%. The Board continues to realise the importance of income for its shareholders as well as trying to achieve an increase in its NAV, and based on a current mid market price of 62p for its shares, the fund has a dividend yield of 5.32%.

Although the Stock Market has continued to rise, we feel this has masked some of the volatility we have seen with certain companies’ share prices. If a company issues a cautious outlook or disappoints the Market on its expectations, its shares are hit hard with the fall in share price far outweighing the level of downgrade in earnings expectations. It is for this reason that we have kept to our strategy of holding a diverse portfolio with some smaller holdings rather than be more concentrated with fewer shares.

We made six further VCT qualifying investments in the period, Access Intelligence, Forbidden Technologies, i-Nexus Global, Microsaic Systems, Polarean Imaging and Scancell, and we also committed to make an investment in Audioboom.

We made four sales where we either top sliced our holding or sold completely.

We have seen fewer qualifying investments in the period, however we still remain cautious in our approach. There is still uncertainty regarding the outcome of the BREXIT negotiations with Market commentators stating the likelihood of a no deal becoming more likely. Whilst this may cause more volatility in the Markets we have a diversified portfolio with companies from a variety of sectors that continue to trade well which gives us optimism for the remainder of the year.

Geoff Gamble

Chairman

29 August 2018

New Century AIM VCT2 plc

For the six months to 30^th June 2018

Unaudited Balance Sheet

			Interim Accounts						Final Accounts						Interim Accounts
			as at 30 June 2018						as at 31 December 2017*						as at 30 June 2017
			£'000		£'000				£'000		£'000				£'000		£'000
Fixed Assets
	Investments				3,124						3,127						2,979
Current Assets
	Sundry debtors		-						-						-
	Uninvested cash		67		67				37		37				70		70
Current Liabilities
	Creditors: amounts due
	within one year				(8)						(18)						(17)
					3,183						3,146						3,032
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						3,440
	Capital reserve - realised				(1,406)						(1,537)						(1,602)
	Capital reserve - unrealised				103						187						1
	Revenue reserve				357						367						504
					3,183						3,146						3,032
Asset Value per share					69p						68p						66p
									*Audited accounts

New Century AIM VCT2 plc

For the six months to 30^th June 2018

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

				6 month period ended 30 June 2018						Year to 31 December 2017*						6 month period ended 30 June 2017
				Revenue		Capital		Total		Revenue		Capital		Total		Revenue		Capital		Total
				£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000
Gains/(losses) on investments
Realised				-		82		82		-		122		122		-		60		60
Unrealised				-		(22)		(22)		-		403		403		-		203		203
Income				14		-		14		37		-		37		12		-		12
Investment management fees				(4)		(13)		(17)		(8)		(23)		(31)		(4)		(12)		(16)
Other expenses				(20)		-		(20)		(52)		-		(52)		(32)		-		(32)
Return on ordinary activities				(10)		47		37		(23)		502		479		(24)		251		227
Tax on ordinary activities				-		-		-		-		-		-		-		-		-
Return on ordinary activities
after taxation				(10)		47		37		(23)		502		479		(24)		251		227
Return per ordinary share in pence				(0.22)		1.02		0.80		(0.50)		10.88		10.38		(0.52)		5.45		4.93
										*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 30^th June 2018

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 2018		461		57		171		3,440		(1,537)		187		367		3,146
Realised gains on disposals in period		-		-		-		-		82		-		-		82
Unrealised gain		-		-		-		-		-		(22)		-		(22)
Transfer of unrealised gain to realised on disposal of investment		-		-		-		-		62		(62)		-		-
Net revenue before tax		-		-		-		-		-		-		(10)		(10)
Investment management fee		-		-		- - -		-		(13) (10)		-		-		(13) (10)
		________		________		_________		_________		________		________		________		________
At 30 June 2018		461		57		171		3,440		(1,406)		103		357		3,183
As at 1 January 2017		461		57		171		3,440		(1,725)		(127)		528		2,805
Realised gains on disposals		-		-		-		-		60		-		-		60
Unrealised gains		-		-		-		-		-		203		-		203
Transfer of unrealised loss to realised on disposal of investment		-		-		-		-		75		(75)		-		-
Net revenue before tax		-		-		-		-		-		-		(24)		(24)
Investment management fee		-		-		-		-		(12)		-		-		(12)
		________		________		_________		_________		________		________		________		________
At 30 June 2017		461		57		171		3,440		(1,602)		1		504		3,032

New Century AIM VCT2 plc

For the six months to 30^th June 2018

Unaudited Cash Flow Statement

	6 month period ended 30 June 2018				Year to 31 December 2017*				6 month period ended 30 June 2017
	£'000		£'000		£'000		£'000		£'000		£'000
Net cash generated from operating activities			(47)				(82)				(47)
Cash flow from investing activities
Interest received	-				-				-
Investment income	14				37				12
			14				37				12
Cash flows from financing activities
Sale of investments	249				426				237
Purchase of investments	(186)				(303)				(229)
Dividend paid	-				(138)				-
			63				(15)				8
Net increase / (decrease) in cash and cash equivalents			30				(60)				(27)
Cash and cash equivalents at beginning of period			37				97				97
Cash and cash equivalents at end of period			67				37				70
					*Audited Accounts

New Century AIM VCT2 plc

For the six months to 30^th June 2018

Investment Portfolio

	Security		Cost		Valuation		%		%
					30 June 2018		Cost		Valuation
	Qualifying Investments		2,621,197		2,863,090		86.71		89.70
	Non-qualifying Investments		334,501		261,273		11.06		8.19
	Uninvested funds		67,494		67,494		2.23		2.11
			3,023,192		3,191,857		100.00		100.00
	Qualifying Investments
	AIM Quoted
	Marechale Capital plc		75,752		9,000		2.51		0.28
	HML Holdings plc		108,540		136,000		3.59		4.26
	TP Group plc		160,062		52,356		5.29		1.64
	Tristel plc		18,779		143,325		0.62		4.49
	Cyanconnode Holdngs plc		204,219		8,210		6.76		0.26
	M.Winkworth plc		56,280		88,900		1.86		2.79
	Inspired Energy plc		41,651		253,499		1.38		7.94
	Microsaic Systems plc		142,260		60,020		4.71		1.88
	Venn Life Sciences Holdings plc		155,184		37,789		5.13		1.18
	DP Poland plc		25,630		49,300		0.85		1.54
	Modern Water plc		75,385		24,545		2.49		0.77
	Quixant plc		8,091		72,625		0.27		2.28
	Maistro plc		6,785		162		0.22		0.01
	Keywords Studios plc		17,391		250,076		0.58		7.83
	Sanderson Group plc		15,203		29,150		0.50		0.91
	Cloudbuy plc		41,896		3,802		1.39		0.12
	PHSC plc		50,256		22,000		1.66		0.69
	EU Supply plc		19,422		10,517		0.64		0.33
	Plastics Capital plc		33,168		35,640		1.10		1.12
	Sysgroup plc		45,232		29,250		1.50		0.92
	Brighton Pier Group plc		35,379		22,000		1.17		0.69
	Property Franchise Group plc		50,253		70,000		1.66		2.19
	Solid State plc		35,248		44,922		1.17		1.41
	Audioboom Group plc		72,868		66,500		2.41		2.08
	Scholium Group plc		40,203		19,200		1.33		0.60
	Rosslyn Data Technologies plc		23,219		3,010		0.77		0.09
	Coral Products plc		25,104		17,575		0.83		0.55
	SRT Marine Systems plc		18,093		31,000		0.60		0.97
	ULS Technology plc		18,091		58,050		0.60		1.82
	Premier Technical Services Group plc		52,420		190,570		1.73		5.97
	Angle plc		75,128		62,100		2.49		1.95
	Bilby plc		52,465		94,500		1.74		2.96
	Hunters Property plc		50,253		55,000		1.66		1.72
	Bigblu Broadband plc		55,027		94,089		1.82		2.95

	Security		Cost		Valuation		%		%
					30 June 2018		Cost		Valuation
	Tekcapital plc		82,292		47,125		2.72		1.48
	Falanx Group Ltd		23,923		7,650		0.79		0.24
	Premaitha Health plc		40,204		15,000		1.33		0.47
	Photonstar LED Group plc		15,079		1,500		0.50		0.05
	Yu Group plc		20,504		91,516		0.68		2.87
	Scancell Holdings plc		45,233		41,650		1.50		1.30
	Medaphor Group plc		25,129		6,389		0.83		0.20
	Imaginatik plc		20,104		4,000		0.66		0.13
	Loopup Group plc		20,104		92,000		0.66		2.88
	Faron Pharmaceuticals Ltd		20,103		5,600		0.66		0.18
	Cloudcall Group plc		20,230		58,800		0.67		1.84
	Creo Medical Group plc		37,691		60,197		1.25		1.89
	Anglo African Oil & Gas plc		65,329		29,250		2.16		0.92
	Escape Hunt plc		31,006		25,821		1.03		0.81
	Velocity Composites plc		9,425		7,169		0.31		0.22
	Location Sciences Group plc		27,410		27,270		0.91		0.85
	Fusion Antibodies plc		22,113		33,536		0.73		1.05
	Pelatro plc		25,128		33,200		0.83		1.04
	Polarean Imaging plc		20,104		22,667		0.66		0.71
	Access Intelligence plc		10,053		12,500		0.33		0.39
	Forbidden Technologies plc		50,254		55,000		1.66		1.72
	I-Nexus Global plc		30,153		34,178		1.00		1.07
			2,566,508		2,856,700		84.90		89.50
	Unlisted Investments
	Outsourcery plc		28,143				0.93		0.00
	Syqic plc		26,546		6,390		0.88		0.20
			54,689		6,390		1.81		0.20
	Total qualifying investments		2,621,197		2,863,090		86.71		89.70
	Non Qualifying Investments
	AIM Quoted
	Sanderson Group plc		10,398		26,500		0.34		0.83
	Rotala plc		27,683		38,500		0.92		1.20
	Tristel plc		60		315		0.00		0.01
	TLA Worldwide plc		26,975		21,000		0.89		0.66
	Audioboom Group plc		1,163		190		0.04		0.01
	Be Heard Group plc		10,040		5,300		0.33		0.17
	EVR Holdings plc		5,469		39,385		0.18		1.23
	Yolo Leisure & Technology plc		12,799		6,563		0.42		0.21
			94,587		137,753		3.12		4.32
	Security		Cost		Valuation		%		%
					30 June 2018		Cost		Valuation
	UK Listed
	Investec plc		169,416		95,850		5.61		3.00
	British American Tobacco plc		8,841		15,320		0.29		0.48
	Twentyfour Income Fund Ltd		9,852		9,800		0.33		0.31
			188,109		120,970		6.23		3.79
	Unlisted Investments
	China Food Co plc		31547		1,100		1.04		0.03
	Sorbic International plc		10,205		1,450		0.34		0.05
	Mar City plc		10,053		0		0.33		0.00
			51,805		2,550		1.71		0.08
	Total non-qualifying investments		334,501		261,273		11.06		8.19

New Century AIM VCT2 plc

Notes to the Accounts

For the six months to 30^th June 2018

This interim financial information and the unaudited interim accounts for the six months to 30 June 2018 from

which it has been extracted, are the responsibility of the directors and were approved by them on 29 August 2018, 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 2017, 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 2018.

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 2018 was 69p (at 31 December 2017: 68p; 30 June 2017: 66p).

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’). 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 £17k (the year ended 31 December 2017: £31k, the period ended 30 June 2017 £16k).

Bearing in mind that the assets of the company consist mainly of marketable securities, the directors are of the opinion that at the time of approving this interim financial information, the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing this interim financial information.

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		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
Registrar		Neville Registrars Limited Neville House 18 Laurel Lane Halesowen West Midlands B63 3DA
Solicitors		Dundas & Wilson 5th Floor, Northwest Wing Bush House Aldwych London WC2B 4EZ
Investment Manager and Broker		MD Barnard & Company Limited
		17-21 New Century Road
		Laindon Essex SS15 6AG
Auditor		UHY Hacker Young LLP
		Quadrant House
		4 Thomas More Square
		London E1W 1YW

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