Interim Management Statement

RNS Number : 1961F

Bluehone AIM VCT2 PLC

19 April 2011

 



Maven Income and Growth VCT 5 PLC

(formerly Bluehone AiM VCT2 plc)

Interim Management Statement

For the three month period from 1 December 2010 to 28 February 2011

Change of Manager and Investment Policy

In line with its strategy for improving investment performance, the Board appointed Maven Capital Partners as Manager with effect from 10 February 2011. At the General Meeting held on 30 March 2011, Shareholders voted to change the Company's investment policy to that set out in Part B of Section II of the Circular issued on 7 March 2011. The Company now aims to achieve long-term capital appreciation and generate maintainable levels of income by investing the majority of its funds in a diversified portfolio of shares and securities in smaller, unquoted UK companies and AIM/PLUS quoted companies which meet the criteria for VCT qualifying investments and have strong growth potential.

Change of Company Name

As indicated in the Circular to Shareholders issued on 7 March, and following the receipt of Shareholder approval for the change in investment policy, the name of the Company has been changed to Maven Income and Growth VCT 5 PLC with effect from 15 April 2011.

Performance Summary

Capital return	As at 28 February   2011	As at 30 November 2010	Movement
Net assets	£22.7m	£21.3m	6.6%
Net asset value per share	38.3p	36.0p	6.4%
Share price	22.8p	23.3p	(2.1)%
Discount to NAV	40.6%	35.4%
Total return		For the three month period ended 28 February 2011
Net asset value 1		6.4%
Share price2		(2.2)%
FTSE AIM3		9.1%

¹NAV total return = NAV + reinvested dividends; Source: F&C Asset Management 

²Share price total return = mid to mid share price + reinvested dividends; Source: Datastream

³Source: Datastream

Market Background

Overall, conditions in the UK and global quoted markets remain challenging.  Investors and businesses are cautious about the prospects for recovery, as they assess the likely medium-term impact of the Government spending cuts and tax changes on consumers.

High quality small businesses and their advisers face a continued scarcity of finance from traditional sources, which means that there are opportunities for generalist VCT managers to invest in good quality businesses at attractive entry multiples. Following the receipt of Shareholder approval for a change in investment policy, the Board has now decided to reduce the Company's reliance on AIM, by seeking to broaden the investment focus to include later-stage private companies capable of generating considerably higher yields than those available from AIM investments.

Investment Activity and Realisations

Investment into the portfolio amounted to £205,176 during the quarter.

The purchases during the quarter were:

Company	Date	Cost (£'000)	VCT status
Amerisur Resources	Feb	25	Non-qualifying
Optare	Feb	80	Qualifying
Resources in Insurance Group	Dec	50	Qualifying
Armour Group	Feb	50	Qualifying
Total purchases		205

After the end of the quarter, the new Manager made an investment of £240,000 in Glacier Energy Services Limited, which provides design, manufacturing and pipeline services to the Oil and Gas sector.

The sales during the quarter were:

Company	Date	Proceeds (£'000)	Profit / (loss) (£'000)
EKF Diagnostics Holding	Dec	428	173
VSA Capital Group	Jan	293	(18)
Total sales		721	155

The cash balance at the end of the quarter was £0.6 million or 2.8% of the asset value.

Top Ten Investments

Position as at 28 February 2011	Position  as at 30 November 2010	Company	Percentage of net assets as at 28 February 2011
1	(1)	Cambridge Sensors	6.5
2	(2)	Vectura	5.7
3	(3)	Datum International	5.0
4	(5)	K3 Business Technology	4.6
5	(4)	Quadnetics	3.9
6	(7)	IS Pharma	3.5
7	(8)	Egdon Resources	3.4
8	(6)	Irisys	3.4
9	(11)	Ffastfill	3.0
10	(16)	Infrastrata	3.0
Total			42.0

Sector Breakdown (including cash and interest bearing securities)

	Percentage of total investments at  28 February 2011	Percentage of total investments at 30 November 2010
Technology	26.8	27.2
Industrials	24.5	24.3
Health care	22.8	25.8
Oil and gas	11.8	10.0
Financials	3.7	2.3
Basic materials	3.7	3.9
Consumer services	2.4	3.4
Consumer goods	1.5	1.2
Utilities	0.0	0.0
Telecommunications	0.0	0.0
Cash	2.8	1.9
Total	100.0	100.0

Daily Net Asset Values and Key Information

Further information regarding the Company, including daily net asset values published since the end of the period and quarterly factsheets, can be found at the Company's website www.mavencp.com/migvct5

Year end:                     30 November 2011

Dividends paid:           A final capital dividend of 1.0p per share will be paid on 28 April 2011 to Shareholders on the register on 8 April 2011.

Issued share capital:   59,277,137 ordinary shares of 10p each as at 28 February 2011

For further information please contact the Company Secretary on 0141 306 7400.

Maven Capital Partners UK LLP

Secretary

19 April 2011

 

END

 

 

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