Half-yearly Report

Half-yearly Report

New Cent. Aim Vct 2

New Century AIM VCT2 plc

For the six months to 30th June 2015

Chairman’s Statement

In the six months to 30th June 2015, the net asset value of your fund increased to 62p. This was an improvement of 5.1% over the period. The FTSE AIM Allshare index advanced by 7.63%.

We are pleased to report an increase in the value of your fund, and although we have not matched the gains made on the index in the period we remain hopeful of further progress.

The period has had many factors for investors to consider such as a General election, the Greek crisis, a correction in the Chinese Market and the ongoing unrest in the Middle East. At varying times, each of these has caused volatility in the UK equity markets, but overall the equity markets have largely dismissed them in the period as evidenced by the Indexes gain.

We believe the long term outlook for UK smaller companies is better now than it has been for five years which bodes well for your fund. The General election result of a Conservative majority we feel is positive and will be pro business. Our enthusiasm is slightly tempered though by the introduction of the living wage which may cause additional cost pressures for some companies and the likely increase in interest rates.

We have made 9 Qualifying investments and 5 non-qualifying during the period. The Qualifying holdings that we have purchased in the period are, Premier Technical Services Group, Angle, Bilby, Venn Life Sciences, Hunters Property, Satellite Solutions Worldwide Group, TEK Capital, Falanx and Imaginatik.

We top sliced or exited 4 qualifying holdings and 8 non-qualifying.

We continue to see a regular deal flow of new and secondary issues and are encouraged that the Market has not been swamped by a frenzy of fund raisings which would give rise to investor fatigue. Instead we are seeing better quality issues, but we are still selective and cautious in our approach.

Since the half year-end, we have paid a dividend of 1.5p per share as we know that dividends are important to our shareholders.

The net asset value as reported on the 3rd August 2015 shows that a further increase of 2.3p to 64.3p. When we add the dividend paid back this gives us a gain of 3.8p or 6.12% to 31st July whereas the FTSE All Share index has fallen 0.6% over the same period.

We remain hopeful of being able to report further progress at the time of the preliminary results.

Geoff Gamble

26 August 2015

New Century AIM VCT2 plc

For the six months to 30th June 2015

Unaudited Balance Sheet

    Interim Accounts       Final Accounts       Interim Accounts
as at 30 June 2015 as at 31 December 2014* as at 30 June 2014
£'000   £'000 £'000   £'000 £'000   £'000
Fixed Assets
Investments 2,966 3,022 2,991
 
Current Assets
Sundry debtors - - -
Uninvested cash 217 217 24 24 413 413
 
Current Liabilities
Creditors: amounts due
within one year (8) (17) (8)
     
3,175 3,029 3,396
Capital and Reserves
Share capital 512 512 569
Share premium 57 57 57
Capital redemption reserve 120 120 63
Capital reserve - realised (900) (800) (968)
Capital reserve - unrealised 2,394 2,145 2,273
Revenue reserve 992 995 1,402
     
3,175 3,029 3,396
 
Asset Value per share 62p 59p 59p
*Audited accounts

New Century AIM VCT2 plc

For the six months to 30th June 2015

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

  6 month period ended 30 June 2015   Year to 31 December 2014*   6 month period ended 30 June 2014
Revenue   Capital   Total Revenue   Capital   Total Revenue   Capital   Total
      £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments
Realised - 31 31 - 208 208 - 117 117
Unrealised - 130 130 - 119 119 - 158 158
Income 14 - 14 36 - 36 10 - 10
Investment management fees (4) (12) (16) (8) (25) (33) (4) (13) (17)
Other expenses   (13) - (13) (41) - (41) (12) - (12)
Return on ordinary activities (3) 149 146 (13) 302 289 (6) 262 256
Tax on ordinary activities - - - - - - - - -
Return on ordinary activities
after taxation   (3) 149 146 (13) 302 289 (6) 262 256
Return per ordinary share in pence (0.06) 2.92 2.86 (0.22) 5.34 5.12 (0.11) 4.61 4.50
 
*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 5,118,836

New Century AIM VCT2 plc

For the six months to 30th June 2015

Unaudited Consolidated Statement of Changes in Equity

  Share Premium account
£’000 		  Capital Redemption Reserve
£’000 		  Capital

realised
£’000

  Capital

unrealised
£’000

  Revenue reserve
£’000
 
As at 1 January 2015 57 120 (800) 2,145 995
 
Realised gains on disposals - - 31 - -
Unrealised gains - - - 130 -
Transfer of unrealised loss to realised on disposal of investment -

-

(119) 119 -
Net revenue before tax - - - - (3)
Investment management fee -

-

(12) - -
________ _________ ________ ________ ________
At 30 June 2015 57 120 (900) 2,394 992
         
As at 1 January 2014 57 63 (1,032) 2,075 1,408
 
Realised gains on disposals - - 117 - -
Unrealised gains - - - 158 -
Transfer of unrealised loss to realised on disposal of investment - - (40) 40 -
Net revenue before tax - - - - (6)
Investment management fee - - (13) - -
________ _________ ________ ________ ________
At 30 June 2014 57 63 (968) 2,273 1,402

New Century AIM VCT2 plc

For the six months to 30th June 2015

Unaudited Cash Flow Statement

6 month period ended 30 June 2015   Year to 31 December 2014*   6 month period ended 30 June 2014
£'000   £'000 £'000   £'000 £'000   £'000
     
Operating activity: Net cash outflow (38) (74) (38)
 
Returns on investments
Interest received - 1 -
Investment income 14 14 35 36 10 10
 
 
Taxation - - -
 
Dividend paid - (71) -
 
Financial investment
Sale of investments 762 734 416
Purchase of investments (545) 217 (401) 333 (104) 312
     
Net cash inflow before financing 193 224 284
Share repurchase - (329) -
     
193 (105) 284
 
Increase / (decrease) in uninvested cash with broker 193 (105) 284
 
*Audited Accounts

New Century AIM VCT2 plc

For the six months to 30th June 2015

Investment Portfolio

  Security   Cost   Valuation   %   %
    30 June 2015 Cost Valuation
 
Qualifying Investments 2,810,964 2,491,979 78.61 78.29
Non-qualifying Investments 547,707 473,903 15.31 14.89
Uninvested funds 217,361 217,361 6.08 6.82
3,576,032 3,183,243 100.00 100.00
Qualifying Investments
AIM Quoted
Marechale Capital plc 151,503 36,000 4.24 1.13
HML Holdings plc 244,214 306,000 6.82 9.61
Sport Media Group plc 125,624 0 3.51 0.00
Kurawood plc 150,750 0 4.21 0.00
TP Group plc 160,061 31,786 4.48 1.00
Tristel plc 82,547 198,000 2.31 6.22
Cyan Holdngs plc 204,218 29,556 5.71 0.93
M.Winkworth plc 56,280 120,400 1.57 3.78
APC Technology Group 33,670 340 0.94 0.01
Angel Biotech Holdings 57,780 0 1.62 0.00
Music Festivals plc 45,731 0 1.28 0.00
Inspired Energy plc 50,462 165,375 1.41 5.20
Microsaic Systems plc 66,874 69,960 1.87 2.20
Venn Life Sciences Holdings plc 125,628 81,250 3.51 2.55
DP Poland plc 25,631 28,900 0.72 0.91
Modern Water plc 50,256 12,750 1.41 0.40
Quixant plc 9,247 31,000 0.26 0.97
Blur Group 6,785 1,935 0.19 0.06
Keywords Studios plc 25,162 33,781 0.70 1.06
Sanderson Group 15,204 17,875 0.43 0.56
Cloudbuy plc 41,896 23,633 1.17 0.74
PHSC plc 50,256 56,000 1.41 1.76
EU Supply plc 19,422 8,123 0.54 0.26
Plastics Capital plc 33,168 31,680 0.93 1.00
Daily Internet plc 30,153 30,000 0.84 0.94
Litebulb Group 51,008 52,200 1.43 1.64
Eclectic Bar Group 35,379 13,200 0.99 0.41
Kalibrate Technologies plc 27,975 35,231 0.78 1.11
Syqic plc 26,546 17,039 0.74 0.54
Outsourcery plc 28,143 5,500 0.79 0.17
Martinco plc 50,253 66,500 1.41 2.09
Solid State plc 35,248 115,203 0.99 3.62
Audioboom Group 22,615 90,000 0.63 2.83
Scholium Group 40,203 15,600 1.12 0.49
  Security   Cost   Valuation   %   %
    30 June 2015 Cost Valuation
 
Rosslyn Data Tech. plc 23,219 8,750 0.65 0.27
Coral Products plc 25,104 25,900 0.70 0.81
Software Radio Technology plc 22,617 33,750 0.63 1.06
ULS Technology plc 49,751 61,875 1.39 1.94
Gfinity plc 50,405 64,900 1.41 2.04
Premier Technical Services Group 65,486 71,421 1.83 2.24
Angle plc 75,128 101,200 2.10 3.18
Bilby plc 52,465 77,400 1.47 2.43
Venn Life Sciences Holdings 50,253 51,316 1.41 1.61
Hunters Property plc 50,253 48,000 1.41 1.51
Satellite Solutions Group 75,379 75,000 2.10 2.36
Tekcapital plc 60,304 117,000 1.69 3.68
Falanx Group 23,923 11,900 0.67 0.37
Imaginatik plc 6,785 18,750 0.19 0.59
 
       
Total qualifying investments 2,810,964 2,491,979 78.61 78.29
 
Non Qualifying Investments
AIM Quoted
Sanderson Group plc 18,716 29,250 0.52 0.92
Rotala plc 35,350 58,625 0.99 1.84
Rotala plc 4,550 8,375 0.13 0.26
Rotala plc 7,982 13,400 0.22 0.42
Tristel plc 60 99 0.00 0.00
China Food Co plc 12,629 250 0.35 0.01
China Food Co plc 9,472 300 0.26 0.01
China Food Co plc 9,447 550 0.26 0.02
Gable Holdings Inc 6,238 6,500 0.17 0.20
Litebulb Group 21,897 32,400 0.61 1.02
Sorbic International plc 10,205 1,450 0.29 0.05
TLA Worldwide plc 26,975 45,000 0.76 1.41
Driver Group plc 8,992 6,800 0.25 0.21
Mobile Tornado Group 10,124 3,250 0.29 0.10
Mar City plc 10,053 4,375 0.28 0.14
Minds & Machines Group Ltd 10,254 7,012 0.29 0.22
Audioboom Group 1,163 600 0.03 0.02
Nostra Terra Oil & Gas plc 12,667 5,880 0.35 0.19
Mountfield Group 9,556 5,000 0.27 0.16
Matchtech Group 10,959 10,800 0.31 0.34
Mithril Capital plc 10,040 10,600 0.28 0.33
       
247,329 250,516 6.91 7.87
 
 
         
Security Cost Valuation % %
    30 June 2015 Cost Valuation
 
UK Listed
Investec plc 169,415 89,638 4.74 2.82
British American Tobacco plc 22,104 34,150 0.62 1.08
Imperial Tobacco Group plc 23,759 30,670 0.66 0.96
Greene King plc 9,964 10,562 0.28 0.33
Waterman Group plc 9,926 12,600 0.28 0.40
Twentyfour Select Inc 9,852 9,800 0.28 0.31
Intu Properties plc 15,446 13,815 0.43 0.43
Easyjet plc 19,809 18,552 0.55 0.58
280,275 219,787 7.84 6.91
Unlisted Investments
Merchant House 10% 20,103 3,600 0.56 0.11
       
20,103 3,600 0.56 0.11
       
Total non-qualifying investments 547,707 473,903 15.31 14.89

New Century AIM VCT2 plc

Notes to the Accounts

1 This interim financial information and the unaudited interim accounts for the six months to 30 June 2015 from
which it has been extracted, are the responsibility of the directors and were approved by them on 26 August 2015,
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.
 
2 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.
 
The unaudited interim accounts have been prepared using accounting policies that the company consider will be
used in the accounts for the year needing 31 December 2015, incorporating FRS 102 The Financial Reporting
Standard applicable in the UK and Republic of Ireland. The company have considered the impact of the financial
reporting standards and do not consider there will be any material changes to previously reported results as a result
of adopting FRS 102.
 
3 Listed, AIM or ISDX 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 5,118,836 Ordinary Shares of 10 pence each were in issue throughout the period under review.
 
5 Net Asset Value per share at 30 June 2014 was 62p (at 31 December 2014: 59p; 30 June 2014: 59p).
 
6 No dividend was paid in the period.
 
7 Subsequent to the period-end the company declared a dividend of 1.5 pence per share. There have not been any
other significant events since the balance sheet date.
 
8 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 2014: £33k, the period ended 30 June 2014 £17k).
 
9 Copies of the Interim Report to Shareholders have been sent to shareholders and are available at the Company’s
Registered Office: Woodside Secretaries Ltd, 4th Floor, 50 Mark Lane, London EC3R 7QR.

New Century AIM VCT 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 Woodside 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
 
Bankers Bank of Scotland
New Uberior House
11 Earl Grey Street
Edinburgh EH3 9BN

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