Octopus Titan VCT 2 PLC : Interim Management St...

Octopus Titan VCT 2 plc
Interim Management Statement

24 August 2012

In accordance with Rule 4.3 of the UK Listing Authority's Disclosure and Transparency rules, Octopus Titan VCT 2 plc ('Titan 2' or 'VCT') presents an Interim Management Statement for the period 1 May 2012 to 31 July 2012.  The statement also includes relevant financial information between the end of the period and the date of this statement.

Financial Summary

	As at 31 July 2012	As at 30 April 2012	As at 31 October 2011
Net assets (£'000s)	15,698	16,304	14,833
Return after tax (£'000s)	72	384	(327)
Net asset value per share (NAV)	89.6p	92.8p	91.5p
Cumulative dividends paid since launch	6.0p	4.5p	3.5p
Total return (NAV plus dividends paid)	95.6p	97.3p	95.0p

Investment performance
At 31 July 2012, the Total Return of the VCT, being the Net Asset Value (NAV) plus cumulative dividends, was 95.6p compared to 97.3p at 30 April 2012. The decrease in the Total Return has arisen as a result of the standard running costs of the Fund exceeding the income. In addition, there has been a small downward valuation in the Open Ended Investment Companies ('OEICs') during the period. There have been no changes in the unquoted valuations since 30 April 2012.  

During this three month period, there was a small decrease in the value of the VCT's investments in the OEICs. This is largely attributable to a decrease in fair value of 3.9% in the CF Octopus UK Micro Cap Growth Fund. At 31 July 2012, 14.6% of the Company's net assets were held in liquid resources in the form of OEICs, cash and cash equivalents. 

We have continued to focus on monitoring existing portfolio companies, alongside giving them support with both advice and new funding needs. During the period under review, Titan 2 made follow-on investments into GetOptics (£85,000) and Diverse Energy (£15,625). Additionally, part of the holding in Zoopla was disposed of in the period, realising a gain of £317K.

A full update will be provided in the Annual Report for the year ending 31 October 2012.

Top Ten Qualifying Investments by value as at 31 July 2012

Company	Sector	Carrying value £'000	% of total net assets
Zoopla Limited	Media	2,512	16.0%
Nature Delivered Limited	Consumer lifestyle and wellbeing	1,705	10.8%
Calastone Limited	Technology	1,702	10.8%
Evi Technologies Limited (formally True Knowledge)	Media	1,413	9.0%
e-Therapeutics plc	Consumer lifestyle & wellbeing	838	5.3%
Executive Channel Limited	Media	605	3.9%
Mi-Pay Limited	Telecommunications	589	3.8%
TouchType Limited	Telecommunications	549	3.5%
Semafone Limited	Telecommunications	494	3.1%
Surrey Nanosystems Limited	Technology	485	3.1%

Dividends
As announced in the recently published half-yearly report, the interim dividend of 1.5p per share was paid on 27 July 2012 to those shareholders on the register on 29 June 2012. The total dividends paid since launch are now 6.0p.

Material events and transactions
The VCT made a further follow-on investment of £15,625 into Diverse Energy on 24 August 2012. Titan 2's Board is not aware of any other significant event or transaction which has occurred between 1 August 2012 and the date of publication of this statement which would have a material impact on the financial position of the VCT.

For further information please contact:
Alex Macpherson- Fund Manager
Octopus Investments Limited - 0800 316 2295

ENDS

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Source: Octopus Titan VCT 2 PLC via Thomson Reuters ONE

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