Oxford Technology 2 VCT plc : Annual Financial ...

Preliminary Announcement for
Oxford Technology 2 Venture Capital Trust PLC
For the year ended 28 February 2014
_______________________________________________

Financial highlights

	Year ended 28 February 2014	Year ended 28 February 2013
Net assets at year end	£1.79m	£1.84m
Net asset value per share at year end after distributions	26p	27p
Cumulative dividend (gross) from incorporation	10.5p	10.5p
NAV plus cumulative dividends paid to year end	36.5p	37.5p
Share price at year end	14.0p	14.5p
Earnings per share (basic & diluted)	(0.7)p	1.5p

Statement on behalf of the Board

The net assets per share at 28 February 2014 were 26p per share compared to 27p as at 28 February 2013.  The loss per share in the year to 28 February 2014 was (0.7)p per share, compared to a gain of 1.5p per share in the year to 28 February 2013. 

Investment Policy & Fundraising

The Company has built a balanced portfolio of investments with the following characteristics:

·  unlisted, UK based, science, technology and engineering businesses

·  investments typically in the range of £100,000 to £500,000

·  generally located within approximately 60 miles of Oxford

Business Review

There was a net loss for the period after taxation amounting to £51,000 (2013: gain of £100,000).  The profit and loss account comprises nil income (2013: £11,000) plus unrealised gains on fair value of investments of £35,000 (2013: £140,000) less realised losses on disposals of investments of £26,000 (2013: gain of £4,000) and management and other expenses of £60,000 (2013: £55,000).

AGM

Shareholders should note that the AGM for Oxford Technology 2 VCT (OT2) will be held on Wednesday 9 July 2014, at the Magdalen Centre, Oxford Science Park, starting at 12.00 noon and will include presentations by some of the companies in which the Oxford Technology VCTs have invested. A formal Notice of AGM has been included at the back of these Accounts together with a Form of Proxy for those not attending.

Michael O'Regan
Chairman
22 May 2014

Profit and Loss Account
for the year ended 28 February 2014
                                                                                                                                

	Year Ended 28 February 2014 £'000	Year Ended 28 February 2013 £'000
(Loss)/gain on disposal of investments held at fair value	(26)	4
Unrealised gain on fair value of investments	35	140
Other income	-	11
Investment management fees	(36)	(35)
Other expenses	(24)	(20)
(Loss)/profit on ordinary activities before tax	(51)	100
Taxation on profit on ordinary activities	-	-
(Loss)/profit on ordinary activities after tax	(51)	100
(Loss)/earnings per share (basic and diluted)	(0.7)p	1.5p

                                                                                    
Historic Cost Profits and Losses Note

	2014	2013
Profit /(loss) for the year	(51)	100
Unrealised (gain) on fair value of investments	(35)	(140)
Loss/(profit) on disposal of investments held at fair value	26	(4)
(Loss) on disposal of investments held at historical value	(420)	(470)
Historical cost (loss) before tax	(480)	(514)
Historical cost (loss) after tax	(480)	(514)

Balance Sheet at 28 February 2014

	28 February 2014		28 February 2013
	£'000	£'000	£'000	£'000
Fixed assets
Investments at fair value		1,477		1,557
Current assets
Other debtors & prepayments	13		18
Cash at bank	352		309
	365		327
Creditors: amounts falling due within one year	(51)		(42)
Net current assets		314		285
Net assets		1,791		1,842
Capital and reserves
Called up share capital		679		679
Share premium		376		376
Profit and loss account		90		570
Unrealised capital reserve		646		217
Shareholders funds		1,791		1,842
Net asset value per share		26p		27p

These financial statements were approved by the directors on 22 May 2014.

JLA Cary
Director
22 May 2014

Cash Flow Statement
for the period ended 28 February 2014

	2014	2013
	£'000	£'000
Net cash (outflow) from operating activities	(46)	(42)
Capital expenditure and financial investment
Purchase of investments	(20)	(12)
Sale of investments	109	37
Net cash inflow from capital expenditure
and financial investment	89	25
Net cash flow before financing	43	(17)
Increase/(decrease) in cash	43	(17)

Notes:

1. Basis of preparation

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments. The financial statements have been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice 'Financial statements of investment trust companies' issued in 2009.

2. Earnings per Ordinary Share

The calculation of earnings per share for the period is based on the profit attributable to shareholders divided by the weighted average number of shares in issue during the period.

3.  Valuation of Investments

Quoted investments are stated at the bid price. Unquoted investments are stated at fair value, where fair value is estimated after following the guidelines laid down by the International Private Equity and Venture Capital Guidelines. The Directors' policy is to initially state investments at cost and then to review the valuation every three months. The Directors' may then apply an appropriate methodology which, as far as possible, draws on external, objective market data such as where fair value is indicated by:

·           a material arms length transaction by a third party in the shares of the company, with discounting for more junior asset classes, and reviewed for impairment; or

·           a suitable revenue or earnings multiple where the company is well established and generating maintainable profits. The multiple will be based on comparable listed companies but may be discounted to reflect a lack of marketability; or

·           the net assets of the business.

Where such objective data is not available the Directors' may choose to maintain the value of the company as previously stated or to discount this where indicated by underperformance against plan.

The directors consider that this basis of valuation of unquoted investments is consistent with the International Private Equity and Venture Capital Guidelines.

4. General

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 434(3) of the Companies Act 2006. The balance sheet at 28 February 2014 and the profit and loss account, cash flow statement and associated notes for the year then ended have been extracted from the company's 2014 statutory financial statements. 

Those financial statements have been delivered to the Registrar of Companies, contain an auditors' opinion that is unqualified and do not include any statement under section 498(2) or (3) of the Companies Act 2006.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Oxford Technology 2 VCT plc via Globenewswire

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