Amati VCT 2 plc
INTERIM MANAGEMENT STATEMENT
FOR THE PERIOD FROM 1 FEBRUARY 2012 TO 31 MAY 2012
To the members of Amati VCT 2 plc
This interim management statement has been prepared solely to provide additional information to the shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules, and should not be relied on by any other party or for any other purpose.
This interim management statement considers the future of the fund and, as such, forward-looking assertions have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report. This statement should therefore be treated with due caution due to the inherent uncertainties of the effect of both economic and business risk factors in considering forward-looking information.
This interim management statement relates to the period from 1 February 2012 to 31 May 2012 and contains information that covers this period and up to the date of publication of this interim management statement.
Our operations
The objective of Amati VCT 2 plc ("the Company") is to provide shareholders with an attractive and competitive investment return from a portfolio of companies whose shares are primarily traded on the Alternative Investment Market ("AIM"). The Manager's continuing objective is to manage the current portfolio so as to maximise returns for investors for the qualifying period and beyond.
Results of Annual General Meeting
The Company gives notice that the following resolutions proposed in the Notice of Meeting dated 3 May 2012 were duly passed at the Annual General Meeting of the Company held on 14 June 2012:
· To receive and adopt the Directors' Report and Accounts
· To approve the Directors' Remuneration Report
· To approve a final dividend of 3.13p per share payable to shareholders on the register at 22 June 2012
· To appoint PKF (UK) LLP as auditors
· To authorise the directors to determine the remuneration of the auditors
· To re-elect Mr Mike Killingley as a Director
· To re-elect Mr Christopher Moorsom as a Director
· To elect Mr Julian Avery as a Director
· To elect Mr Christopher Macdonald as a Director
· To authorise the directors to buy back shares
Performance during the period from 1 February 2012 to 31 May 2012
The NAV Total Return rose by 1.0% over this four month period, which compares with a decline of 8.9% in the FTSE AIM All Share Total Return Index. Broadly February and March saw strongly positive markets, which reversed with the re-emergence of the financial crisis in Europe in April and May.
The main positive contributor to performance was Lo-Q, the largest holding in the portfolio, which rose by 29% during the period reflecting significant commercial progress in terms of contract extensions and new customers. IDOX, Ffastfill and Sabien Technology also made strong gains. The main negative contributors were Software Radio Technology, which downgraded profit expectations for this year, although we remain confident about the development of the AIS market (a device for registering the position of marine vessels), Hargreaves Services, which encountered what is hopefully a one-off problem at the Maltby coal mine, and Green Compliance.
We raised cash levels during the period to fund new qualifying investments and in anticipation of tougher markets, selling holdings in Eros International, EKF Diagnostics, Publishing Technology, RPC, Waterlogic and Zamano, and reducing Anglo Pacific and XP Power. We also took profits in Lo Q, although this remains the largest holding in the portfolio. The new qualifying investments made were in Belvoir Lettings, a franchise property letting business; and Ecodata, a pharmaceuticals disposal business which we have invested in at the pre-IPO stage. We also made further qualifying investments in Deltex Medical and Microsaic, adding to our existing holdings.
|
As at 31 May 2012 |
As at 31 January 2012 |
|
("unaudited") |
("audited") |
Total Net Asset Value ("NAV") |
£29.4m |
£28.7m |
Shares in issue |
27,809,244 |
27,643,668 |
NAV per share ** |
105.7p |
103.8p |
* taking account of amounts receivable or chargeable to the VCT's income account.
The top ten investments in the Company's portfolio as at 31 May 2012 are listed below.
|
Percentage of |
|
the fund's net |
|
asset value as at |
|
31 May 2012 |
Lo-Q plc |
5.0 |
IDOX plc |
4.5 |
Brooks Macdonald Group plc |
3.9 |
Fulcrum Utility Services Limited |
3.1 |
Prezzo plc |
3.1 |
Asian Citrus Holdings Limited |
2.8 |
Synergy Health plc |
2.6 |
Ubisense Group plc |
2.3 |
Infrared Integrated Systems |
2.3 |
Sabien Technology |
2.3 |
|
32.0 |
Detailed monthly updates on portfolio activity and performance are posted on the Amati Global Investors website (see http://www.amatiglobal.com).
For further information please contact Doreen Nic on 0131 243 7210 or email
vct-enquiries@amatiglobal.com.
19 June 2012