Half-year Report

Half-year Report

New Cent. Aim Vct 2

New Century AIM VCT 2 plc

For the six months to 30th June 2018

Chairman’s Statement

In the six months to 30th 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 30th 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 30th 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 30th 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 30th 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 30th 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 30th 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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