Half-year Report

Half-year Report

New Cent. Aim Vct 2

New Century AIM VCT 2 plc

For the six months to 30th June 2016

Chairman’s Statement

In the six months to 30th June 2016, the net asset value (NAV) of your fund fell 9.5% to 57p. The FTSE AIM Allshare Index declined by 4.2% over the same period.

The fund went ex-dividend to the amount of 1.75p per share in June which falls within the accounting period under review. If we add that back to the NAV, the decline moderates to a fall of 7.1%.

The period started well, however in June we had the shock result of the BREXIT referendum which caused sharp falls across most indices, with the AIM All Share Index being one. Your fund was not immune to these falls as we reported a NAV of 62.56p as at the end of May 2016, but by the end of June this had fallen to 57.04p, as stated earlier. The Markets have since absorbed the outcome of the referendum and have staged encouraging gains and your funds NAV has now recovered to 59.2p as at 19th August 2016.

We continue to expect volatility within the smaller companies sector as we await confirmation of the timetable of our withdrawal from the E.U., although we are currently seeing some attractively priced fund raisings starting to appear.

We made six further VCT qualifying investments in the period, Immupharma, Photonstar LED Group, Yu Group, Scancell Holdings, Medaphor Group and Imaginatik plc.

We top sliced or exited 6 qualifying holdings and 3 non-qualifying.

We are cautiously optimistic for the second half of the year.

Geoff Gamble

Chairman

30 August 2016

New Century AIM VCT2 plc

For the six months to 30th June 2016

Unaudited Balance Sheet

      Interim Accounts       Final Accounts       Interim Accounts
as at 30 June 2016 as at 31 December 2015* as at 30 June 2015
£'000   £'000 £'000   £'000 £'000   £'000
Fixed Assets
Investments 2,553 2,878 2,966
 
Current Assets
Sundry debtors - - -
Uninvested cash 64 64 51 51 217 217
 
Current Liabilities
Creditors: amounts due
within one year (6) (16) (8)
     
2,611 2,913 3,175
Capital and Reserves
Share capital 461 461 512
Share premium 57 57 57
Capital redemption reserve 171 171 120
Capital reserve - realised (1,014) (1,054) (900)
Capital reserve - unrealised 2,330 2,668 2,394
Revenue reserve 606 610 992
     
2,611 2,913 3,175
 
Asset Value per share 57p 63p 62p
*Audited accounts

New Century AIM VCT2 plc

For the six months to 30th June 2016

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

      6 month period ended 30 June 2016   Year to 31 December 2015*   6 month period ended 30 June 2015
Revenue   Capital   Total Revenue   Capital   Total Revenue   Capital   Total
            £'000   £'000   £'000   £'000   £'000   £'000   £'000   £'000   £'000
Gains/(losses) on investments
Realised - 28 28 - 133 133 - 31 31
Unrealised - (317) (317) - 160 160 - 130 130
Income 17 - 17 52 - 52 14 - 14
Investment management fees (4) (10) (14) (8) (24) (32) (4) (12) (16)
Other expenses       (16)   -   (16)   (38)   -   (38)   (13)   -   (13)
Return on ordinary activities (3) (299) (302) 6 269 275 (3) 149 146
Tax on ordinary activities   -   -   -   -   -   -   -   -   -
Return on ordinary activities
after taxation       (3)   (299)   (302)   6   269   275   (3)   149   146
Return per ordinary share in pence   (0.07)   (6.49)   (6.56)   0.13   5.27   5.40   (0.06)   2.92   2.86
 
*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 4,606,953.

New Century AIM VCT2 plc

For the six months to 30th June 2016

Unaudited Consolidated Statement of Changes in Equity

 

Called-up share capital

£’000

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

realised
£’000

  Capital

unrealised
£’000

  Revenue reserve
£’000 		 

 

Total

£’000

 
As at 1 January 2016 461 57 171 (1,054) 2,668 610 2,913
 
Realised gains on disposals - - - 28 - - 28
Unrealised loss - - - - (317) - (317)
Transfer of unrealised gain to realised on disposal of investment

-

-

-

21 (21) -

-

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

-

-

(10) (10) - - (10)

(10)

________ ________ _________ ________ ________ ________ ________
At 30 June 2016 461 57 171 (1,015) 2,330 607 2,611
             
As at 1 January 2015 512 57 120 (800) 2,145 995 3,029
 
Realised gains on disposals - - - 31 - - 31
Unrealised gains - - - - 130 - 130
Transfer of unrealised loss to realised on disposal of investment

-

- - (119) 119 -

-

Net revenue before tax - - - - - (3) (3)
Investment management fee - - - (12) - - (12)
________ ________ _________ ________ ________ ________ ________
At 30 June 2015 512 57 120 (900) 2,394 992 3,175

New Century AIM VCT2 plc

For the six months to 30th June 2016

Unaudited Cash Flow Statement

  6 month period ended 30 June 2016       Year to 31 December 2015*       6 month period ended 30 June 2015
£'000       £'000 £'000       £'000 £'000       £'000
     
Net cash generated from operating activities (40) (71) (38)
 
Cash flow from investing activities
Interest received - 1 -
Investment income 17 17 51 52 14 14
 
 
Cash flows from financing activities
Sale of investments 162 1,120 762
Purchase of investments (126) (683) (545)
Share capital repurchase - (314) -
Dividend paid - 36 (77) 46 - 217
 
 
Net increase in cash and cash equivalents 13 27 193
 
Cash and cash equivalents at beginning of period 51 24 24
     
Cash and cash equivalents at end of period 64 51 217
 
*Audited Accounts

New Century AIM VCT2 plc

For the six months to 30th June 2016

Investment Portfolio

    Security   Cost   Valuation   %   %
        30 June 2016   Cost   Valuation
 
Qualifying Investments 2,572,096 2,227,381 83.62 85.09
Non-qualifying Investments 439,217 325,818 14.28 12.44
Uninvested funds 64,590   64,590   2.10   2.47
3,075,903   2,617,789   100.00   100.00
Qualifying Investments
AIM Quoted
Marechale Capital plc 83,327 10,312 2.71 0.39
HML Holdings plc 244,215 297,000 7.94 11.35
Kurawood plc 150,750 - 4.90 0.00
TP Group plc 160,062 24,308 5.20 0.93
Tristel plc 52,830 134,400 1.72 5.13
Cyan Holdngs plc 204,218 26,272 6.64 1.00
M.Winkworth plc 56,280 77,000 1.83 2.94
Music Festivals plc 45,730 - 1.49 0.00
Inspired Energy plc 50,462 185,063 1.64 7.07
Microsaic Systems plc 66,873 8,745 2.17 0.34
Venn Life Sciences Holdings 155,184 161,952 5.05 6.19
DP Poland plc 25,630 68,000 0.83 2.60
Modern Water plc 50,256 4,750 1.63 0.18
Quixant plc 9,247 37,000 0.30 1.41
Blur Group 6,785 360 0.22 0.01
Keywords Studios 25,161 54,335 0.82 2.08
Sanderson Group 15,203 18,150 0.49 0.69
Cloudbuy plc 41,896 4,367 1.36 0.17
PHSC plc 50,256 42,000 1.63 1.60
EU Supply plc 19,422 5,130 0.63 0.20
Plastics Capital plc 33,168 29,370 1.08 1.12
Daily Internet plc 30,153 34,000 0.98 1.30
Litebulb Group 51,008 - 1.66 0.00
Brighton Pier Group 35,379 19,360 1.15 0.74
Kalibrate Technologies plc 27,975 22,900 0.91 0.87
Syqic plc 26,546 - 0.86 0.00
Outsourcery plc 28,143 - 0.91 0.00
Martinco plc 50,253 61,500 1.63 2.35
Solid State plc 35,248 42,024 1.15 1.61
Audioboom Group 22,615 41,250 0.74 1.58
Scholium Group 40,203 14,000 1.31 0.53
Rosslyn Data Tech. plc 23,219 7,000 0.75 0.27
Coral Products plc 25,104 34,225 0.82 1.31
Software Radio Technology plc 18,093 35,000 0.59 1.34
    Security   Cost   Valuation   %   %
    30 June 2015 Cost Valuation
 
ULS Technology plc 49,751 78,581 1.62 3.00
Gfinity plc 50,405 22,125 1.64 0.85
Premier Technical Services Group 52,420 75,225 1.70 2.87
Angle plc 75,128 66,700 2.44 2.55
Bilby plc 52,465 109,800 1.71 4.19
Hunters Property plc 50,253 59,000 1.63 2.25
Satellite Solutions Group 55,027 85,167 1.79 3.25
Tekcapital plc 60,304 108,000 1.96 4.13
Falanx Group 23,923 6,375 0.78 0.24
Premaitha Health plc 40,204 17,500 1.31 0.67
Photonstar LED Group plc 15,079 13,500 0.49 0.52
Yu Group plc 20,504 24,257 0.67 0.93
Scancell Holdings plc 20,506 18,600 0.67 0.71
Medaphor Group plc 25,129 22,778 0.82 0.87
Imaginatik plc 20,104 20,000 0.65 0.76
 
       
Total qualifying investments 2,572,096 2,227,381 83.62 85.09
 
Non Qualifying Investments
AIM Quoted
Sanderson Group 10,398 16,500 0.34 0.63
Rotala plc 27,683 42,000 0.90 1.60
Tristel plc 60 105 0.00 0.00
China Food Co plc 31,547 1,100 1.02 0.04
Litebulb Group 21,897 - 0.71 0.00
Sorbic International plc 10,205 1,450 0.33 0.06
TLA Worldwide plc 26,975 54,500 0.88 2.08
Mar City plc 10,053 4,500 0.33 0.17
Audioboom Group 1,163 275 0.04 0.01
Mountfield Group 9,556 6,750 0.31 0.26
Be Heard Group plc 10,040 8,215 0.33 0.31
Oakley Capital Investments plc 10,374 8,705 0.34 0.33
Armstrong Ventures plc 34,994 17,000 1.14 0.65
Yolo Leisure & Technology plc 12,798 6,375 0.42 0.25
       
217,743 167,475 7.09 6.39
 

 

         
Security Cost Valuation % %
    30 June 2015 Cost Valuation
 
UK Listed
Investec plc 169,415 98,513 5.50 3.76
British American Tobacco plc 22,104 48,430 0.72 1.85
Twentyfour Select Inc 9,852 7,800 0.32 0.30
201,371 154,743 6.54 5.91
Unlisted Investments
Merchant House Group 20,103 3,600 0.65 0.14
       
20,103 3,600 0.65 0.14
       
Total non-qualifying investments 439,217 325,818 14.28 12.44

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 2016 from
which it has been extracted, are the responsibility of the directors and were approved by them on 30 August 2016,
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 2016, 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 4,606,953 Ordinary Shares of 10 pence each were in issue throughout the period under review.
 
5 Net Asset Value per share at 30 June 2016 was 57p (at 31 December 2015: 63p; 30 June 2015: 62p).
 
6 No dividend was paid in the period.
 
7 There have not been any 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 £14k (the year ended 31 December 2015: £32k, the period ended 30 June 2015 £16k).
 
9 Copies of the Interim Report to Shareholders have been sent to shareholders and are available at the Company’s
Registered Office: Tricor Secretaries Ltd, 4th Floor, 50 Mark Lane, London EC3R 7QR.

New Century AIM VCT2 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 Tricor 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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