Interim Management Statement

RNS Number : 0557H

Amati VCT 2 plc

14 June 2013

Amati VCT 2 plc

INTERIM MANAGEMENT STATEMENT

FOR THE PERIOD FROM 1 FEBRUARY 2013 TO 30 APRIL 2013

To the members of Amati VCT 2 plc

This interim management statement, which relates to the period from 1 February 2013 to 30 April 2013 and contains information up to the date of release of the statement, has been prepared solely to provide additional information to shareholders to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules, and should not be relied on by any other party or for any other purpose.

This statement also considers the future of the fund and, as such, forward-looking assertions have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report. It should therefore be treated with caution due to the inherent uncertainties of the effect of both economic and business risk factors in considering forward-looking information.

Our operations

The objective of Amati VCT 2 plc ("the Company") is to provide shareholders with an attractive and competitive investment return from a portfolio of companies whose shares are primarily traded on the Alternative Investment Market ("AIM"). The Manager's continuing objective is to manage the current portfolio so as to maximise returns for investors for the qualifying period and beyond.

Offer for subscription

The joint share offer with Amati VCT plc opened in January 2013 and has raised £1.6m for the Company to date. The offer will remain open until 23 January 2014.

Performance during the period from 1 February 2013 to 30 April 2013

The NAV (Total Return) over the period was up 4.6% over the period under review. This compares to a decline of 3.3% in the FTSE AIM All-Share Total Return Index. Whilst AIM was dragged lower by the poor performance of the resources sector, most other indices posted gains over the period as central bank stimulus continued to drive the US economy, which in turn benefited world markets.

The most significant positive contributions to performance came from Lo-Q, MyCelx Technologies, Prezzo and Blinkx. Lo-Q's share price rose strongly in February and March following its preliminary results. MyCelx also announced full year numbers, which were ahead of our expectations and demonstrated excellent momentum in signing up customers for its patented clean water technology. Prezzo benefited from the general strength in the restaurant market, whilst Blinkx delivered material earnings upgrades following strong trading.

On the negative side, IDOX weakened after a strong run in the latter half of 2012. Subsequent to the period end, the company downgraded its full year earnings expectations, however, we remain optimistic about the longer-term prospects for IDOX. Cupid fell dramatically following allegations of bad practice at its dating websites. We have now exited this position. Sabien Technology drifted lower following interim results that were behind the prior year, however, recent contract momentum suggests that this shortfall is being addressed in the second half.

New additions to the VCT during the period were concentrated in the non-qualifying portfolio. These included: Bank of Georgia, the largest bank in Georgia, with a strong balance sheet and an opportunity to benefit from the country's rapid growth; Crest Nicholson, the housebuilder; and Elementis, the speciality chemicals business. We exited Devro, Synergy Healthcare and Sinclair Pharma, the latter two of which were qualifying holdings which had become, or were about to become, non-qualifying.

	As at 30 April 2013	As at 31 January 2013
	("unaudited")	("audited")
Total Net Asset Value ("NAV")	£31.0m	£29.1m
Shares in issue	27,752,387	27,289,574
NAV per share **	111.6p	106.7p

* taking account of amounts receivable or chargeable to the VCT's income account.

The top ten investments in the Company's portfolio are listed below.

Top ten holdings as at 30 April 2013

	Percentage of
	the fund's net
	asset value as
	at
	30 April 2013
Lo-Q plc	6.3
IDOX plc	5.7
Prezzo plc	4.4
Brooks Macdonald Group plc	4.3
Polyhedra Group plc	4.1
MyCelx Technologies Corporation	3.5
Fox Marble Holdings plc	2.8
Anpario plc	2.7
Belvoir Lettings plc	2.6
Asian Citrus Holdings Limited	2.5
	38.9