Half-year Report

Half-year Report

New Cent. Aim Vct 2

New Century AIM VCT 2 plc

For the six months to 30th June 2017

Chairman’s Statement

In the six months to 30th June 2017, the net asset value (NAV) of your fund increased by 8.2% to 66p. The FSTE AIM Allshare index gained 14.4% over the same period. This index encompasses all sectors and includes many mining, oil and gas companies that have performed well in the year. Your fund is constrained from investing in these types of businesses as part of the VCT rules.

The fund went ex-dividend to the amount of 3p per share in June which falls within the accounting period under review. If we add that back to the NAV, the fund increased by 13.12%. The Board realises the importance of income to its shareholders as well as trying to achieve an increase in its NAV, and based on a current mid-market price of 57p for its shares, the fund has a dividend yield of 5.26%.

The Stock Market performance has been quite strong although this has helped mask some volatility within the period. The fund has continued to increase its NAV since the half year seeing the NAV rise from 64.58p (ex div) at 30th June to that of 67.49p as at 14th August 2017 which is a further rise of 4.51%. This NAV is based on mid-market prices, the industry standard, in-line with those reported to the Market at the end of each month, whereas in our annual and interim report we quote the NAV based on bid prices as a statutory requirement.

We made seven further VCT qualifying investments in the period, TEK Capital, Infrastrata, Anglo African Oil and Gas, Audioboom, Escape Hunt, Velocity Composites and Modern Water Group.

We top sliced or exited 6 qualifying investments and three non-qualifying.

We continue to see potential new qualifying issues, but remain cautious in our approach. The uncertainty regarding the BREXIT negotiations following the General election results may cause increased volatility in the months ahead, however the majority of our investee companies continue to trade well which bodes well and gives us some optimism for the remainder of the year.

Geoff Gamble

Chairman

29 August 2017


New Century AIM VCT2 plc

For the six months to 30th June 2017

Unaudited Balance Sheet

      Interim Accounts       Final Accounts       Interim Accounts
as at 30 June 2017 as at 31 December 2016* as at 30 June 2016
£'000   £'000 £'000   £'000 £'000   £'000
Fixed Assets
Investments 2,979 2,725 2,553
 
Current Assets
Sundry debtors - - -
Uninvested cash 70 70 97 97 64 64
 
Current Liabilities
Creditors: amounts due
within one year (17) (17) (6)
     
3,032 2,805 2,611
Capital and Reserves
Share capital 461 461 461
Share premium 57 57 57
Capital redemption reserve 171 171 171
Capital reserve-distributable 3,440 3,440 -
Capital reserve - realised (1,602) (1,725) (1,015)
Capital reserve - unrealised 1 (127) 2,330
Revenue reserve 504 528 607
     
3,032 2,805 2,611
 
Asset Value per share 66p 61p 57p
*Audited accounts
 

New Century AIM VCT2 plc

For the six months to 30th June 2017

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

  6 month period ended 30 June 2017   Year to 31 December 2016*   6 month period ended 30 June 2016
Revenue   Capital   Total Revenue   Capital   Total Revenue   Capital   Total
        £'000   £'000   £'000   £'000   £'000   £'000   £'000   £'000   £'000
Gains/(losses) on investments
Realised - 60 60 - 29 29 - 28 28
Unrealised - 203 203 - (34) (34) - (317) (317)
Income 12 - 12 50 - 50 17 - 17
Investment management fees (4) (12) (16) (7) (21) (28) (4) (10) (14)
Other expenses     (32)   -   (32)   (44)   -   (44)   (16)   -   (16)
Return on ordinary activities (24) 251 227 (1) (26) (27) (3) (299) (302)
Tax on ordinary activities   -   -   -   -   -   -   -   -   -
Return on ordinary activities
after taxation     (24)   251   227   (1)   (26)   (27)   (3)   (299)   (302)
Return per ordinary share in pence   (0.52)   5.45   4.93   (0.02)   (0.56)   (0.58)   (0.07)   (6.49)   (6.56)
 
*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 2017

Unaudited Consolidated Statement of Changes in Equity

 

Called-up share capital

£’000

  Share Premium account
£’000 		  Capital Redemption reserve
£’000 		  Capital Reserve- distributable
£’000 		  Capital

realised
£’000

  Capital

unrealised
£’000

  Revenue reserve
£’000 		 

 

Total

£’000

 
As at 1 January 2017 461 57 171 3,440 (1,725) (127) 528 2,805
 
Realised gains on disposals in period - - - - 60 - - 60
Unrealised gain - - - - - 203 - 203
Transfer of unrealised gain to realised on disposal of investment

-

-

-

- 75 (75) -

-

Net revenue before tax - - - - - - (24) (24)
Investment management fee - - -

-

-

- (12) (10) - - (12)

(10)

________ ________ _________ _________ ________ ________ ________ ________
At 30 June 2017 461 57 171 3,440 (1,602) 1 504 3,032
               
As at 1 January 2016 461 57 171 - (1054) 2,668 610 2,913
 
Realised gains on disposals - - - - 28 - - 28
Unrealised gains - - - - - (317) - (317)
Transfer of unrealised loss to realised on disposal of investment

-

- - - 21 (21) -

-

Net revenue before tax - - - - - - (3) (3)
Investment management fee - - - - (10) - - (10)
________ ________ _________ _________ ________ ________ ________ ________
At 30 June 2016 461 57 171 - (1,015) 2,330 607 2,611
 

New Century AIM VCT2 plc

For the six months to 30th June 2017

Unaudited Cash Flow Statement

  6 month period ended 30 June 2017       Year to 31 December 2016*       6 month period ended 30 June 2016
£'000       £'000 £'000       £'000 £'000       £'000
     
Net cash generated from operating activities (47) (72) (40)
 
Cash flow from investing activities
Interest received - - -
Investment income 12 50 17
12 50 17
 
Cash flows from financing activities
Sale of investments 237 413 162
Purchase of investments (229) (265) (126)
Dividend paid - (81) -
8 67 36
 
Net (decrease) / increase in cash and cash equivalents (27) 46 13
 
Cash and cash equivalents at beginning of period 97 51 51
     
Cash and cash equivalents at end of period 70 97 64
 
*Audited Accounts
 

New Century AIM VCT2 plc

For the six months to 30th June 2017

Investment Portfolio

  Security   Cost   Valuation   %   %
        30 June 2017   Cost   Valuation
 
Qualifying Investments 2,526,180 2,623,407 84.68 86.02
Non-qualifying Investments 386,568 356,068 12.96 11.67
Uninvested funds 70,351   70,351   2.36   2.31
2,983,099   3,049,826   100.00   100.00
Qualifying Investments
AIM Quoted
Marechale Capital plc 75,752 9,375 2.54 0.30
HML Holdings plc 108,540 160,000 3.64 5.24
TP Group plc 160,062 54,226 5.36 1.77
Tristel plc 29,098 131,130 0.97 4.30
Cyanconnode Holdngs plc 204,219 24,630 6.85 0.81
M.Winkworth plc 56,280 74,200 1.89 2.43
Inspired Energy plc 50,462 271,687 1.69 8.91
Microsaic Systems plc 92,002 11,532 3.08 0.38
Venn Life Sciences Holdings plc 155,184 80,976 5.20 2.66
DP Poland plc 25,630 72,250 0.86 2.37
Modern Water plc 75,385 37,636 2.53 1.23
Quixant plc 8,091 60,900 0.27 2.00
Blur Group plc 6,785 0 0.23 0.00
Keywords Studios plc 18,979 114,588 0.64 3.76
Sanderson Group plc 15,203 18,425 0.51 0.60
Cloudbuy plc 41,896 3,082 1.40 0.10
PHSC plc 50,256 24,000 1.68 0.79
EU Supply plc 19,422 13,680 0.65 0.45
Plastics Capital plc 33,168 38,940 1.11 1.28
Sysgroup plc 45,232 32,250 1.52 1.06
Brighton Pier Group plc 35,379 20,900 1.19 0.69
Kalibrate Technologies plc 27,975 28,537 0.94 0.94
Property Franchise Group plc 50,253 80,000 1.68 2.62
Solid State plc 35,247 57,892 1.18 1.90
Audioboom Group plc 72,869 73,500 2.44 2.41
Scholium Group plc 40,203 16,800 1.35 0.55
Rosslyn Data Technologies plc 23,219 2,975 0.78 0.10
Coral Products plc 25,104 27,750 0.84 0.91
SRT Marine Systems plc 18,093 45,000 0.61 1.48
ULS Technology plc 18,091 55,350 0.61 1.81
Gfinity plc 50,405 57,525 1.69 1.89
Premier Technical Services Group plc 52,420 124,372 1.76 4.08
Angle plc 75,128 79,350 2.52 2.60
Bilby plc 52,465 63,900 1.76 2.10
 
  Security   Cost   Valuation   %   %
        30 June 2017   Cost   Valuation
 
Hunters Property plc 50,253 55,000 1.68 1.80
Satellite Solutions Worldwide Group plc 55,027 82,125 1.84 2.69
Tekcapital plc 82,292 108,750 2.76 3.57
Falanx Group Ltd 23,923 11,900 0.80 0.39
Premaitha Health plc 40,204 20,500 1.35 0.67
Photonstar LED Group plc 15,079 8,700 0.51 0.29
Yu Group plc 20,504 46,309 0.69 1.52
Scancell Holdings plc 20,506 15,000 0.69 0.49
Medaphor Group plc 25,129 8,889 0.84 0.29
Imaginatik plc 20,104 14,000 0.67 0.46
Loopup Group plc 20,104 29,400 0.67 0.96
Faron Pharmaceuticals Ltd 20,103 58,000 0.67 1.90
Cloudcall Group plc 20,230 31,150 0.68 1.02
Creo Medical Group plc 37,691 41,447 1.26 1.36
InfraStrata plc 15,077 21,000 0.51 0.69
Anglo African Oil & Gas plc 65,329 54,438 2.19 1.78
Escape Hunt plc 31,006 32,904 1.04 1.08
Velocity Composites plc 9,425 10,147 0.32 0.33
             
2,420,483   2,617,017   81.14   85.81
 
Unlisted Investments
Litebulb Group Ltd 51,008 0 1.71 0.00
Outsourcery plc 28,143 0 0.94 0.00
Syqic plc 26,546   6,390   0.89   0.21
105,697   6,390   3.54   0.21
             
Total qualifying investments 2,526,180   2,623,407   84.68   86.02
 
 
Non Qualifying Investments
AIM Quoted
Sanderson Group plc 10,398 16,750 0.35 0.55
Rotala plc 27,683 40,600 0.93 1.33
Tristel plc 60 186 0.00 0.00
China Food Co plc 31,547 1,100 1.06 0.04
TLA Worldwide plc 26,975 16,000 0.90 0.52
Audioboom Group plc 1,163 210 0.04 0.01
Mountfield Group plc 7,645 5,600 0.25 0.18
Be Heard Group plc 10,040 8,480 0.34 0.28
EVR Holdings plc 27,995 136,000 0.94 4.46
Yolo Leisure & Technology plc 12,798 3,750 0.43 0.12
             
156,304   228,676   5.24   7.49
 

 

                 
Security Cost Valuation % %
        30 June 2017   Cost   Valuation
 
UK Listed
Investec plc 169,416 90,525 5.68 2.97
British American Tobacco plc 8,841 20,936 0.30 0.69
Twentyfour Income Fund Ltd 9,852   9,950   0.33   0.32
188,109   121,411   6.31   3.98
Unlisted Investments
Litebulb Group Ltd 21,897 0 0.73 0.00
Sorbic International plc 10,205 1,450 0.34 0.05
Mar City plc 10,053 4,531 0.34 0.15
             
42,155   5,981   1.41   0.20
             
Total non-qualifying investments 386,568   356,068   12.96   11.67
 

New Century AIM VCT2 plc

Notes to the Accounts

This interim financial information and the unaudited interim accounts for the six months to 30 June 2017 from which it has been extracted, are the responsibility of the directors and were approved by them on 29 August 2017, 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.

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 and updated in January 2017.

The unaudited interim accounts have been prepared using accounting policies that the company applied in the accounts for the year ending 31 December 2016, incorporating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The company considers these accounting policies will be used in the accounts for the year ending 31 December 2017.

Listed, AIM or NEX 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.

4,606,953 Ordinary Shares of 10 pence each were in issue throughout the period under review.

Net Asset Value per share at 30 June 2017 was 66p (at 31 December 2016: 61p; 30 June 2016: 57p).

No dividend was paid in the period.

There have not been any significant events since the balance sheet date.

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 £16k (the year ended 31 December 2016: £28k, the period ended 30 June 2016 £14k).

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

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