British Smlr Comp 2 - Interim Management Statement

British Smaller Companies VCT2

21/06/2022 15:00

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RNS Number : 6747P  British Smaller Companies VCT2 Plc  21 June 2022

British Smaller Companies VCT2 plc

Interim Management Statement

For the quarter ended 31 March 2022

British Smaller Companies VCT2 plc (the "Company") presents its interim
management statement for the quarter ended 31 March 2022. The statement also
includes relevant financial information between the end of the quarter and the
date of this statement. A copy of this interim management statement can be
found at www.bscfunds.com (http://www.bscfunds.com) .

Overview

The Company's Total Return at 31 March 2022 was unchanged at 139.5 pence per
ordinary share. During the same period the FTSE Small Cap Market Overview fell
by 6.8 per cent.

In the quarter the Company made one new investment, providing £2.0 million of
funding to Relative Insight, a company which delivers scenario planning and
forecasting solutions for supply chain, finance and operations.  The
investment enables the business to continue its global expansion strategy and
product development.  Two follow-on investments were also made in the period,
into Arraco and Sipsynergy, totalling £0.5 million.

Following the quarter end one new investment and two follow-on investments
totalling £1.3 million have been completed.

Performance

The movement in Total Return in pence per ordinary share is set out in the
table below:

                                  31 December 2021  Increase in Value  Issue/Buyback of shares  Movement    31 March 2022

                                                                                                In Period
 Net Assets (£m)                  87.4              0.6                23.5                     24.1        111.5
 NAV per share (PPS)              61.5p             0.3p               (0.3p)                   -           61.5p
 Cumulative dividends paid (PPS)  78.0p             -                  -                        -           78.0p
 Total Return (PPS)               139.5p            0.3p               (0.3p)                   -           139.5p
 Shares in issue                  142,155,199       -                  39,041,964               39,041,964  181,197,163

The unaudited NAV per ordinary share was unchanged at 61.5 pence per share (31
December 2021: 61.5 pence per ordinary share).

The movements in NAV per ordinary share are set out in the table below:

                              £m            Pence per

                                            ordinary share
 NAV at 31 December 2021             87.4             61.5
 Increase in portfolio value  1.0           0.6
 Net operating costs          (0.4)         (0.3)
 Issue/buy-back of shares     23.5          (0.3)
                                     24.1             -
 NAV at 31 March 2022                111.5            61.5

 

Following payment of an interim dividend of 1.5 pence per ordinary share for
the year ending 31 December 2022 on 6 May 2022, the unaudited net asset value
is 60.0 pence per ordinary share.

Dividends and shares in issue

On 7 January 2022, the Company issued 40,224,521 ordinary shares arising from
the 2021/22 fundraising, at offer prices between 61.74 pence and 66.16 pence
per ordinary share.

On 29 March 2022, the Company purchased 1,182,557 ordinary shares of 10 pence
each at a price of 58.93 pence per ordinary share. These shares were placed in
treasury.

The number of ordinary shares in issue at 31 March 2022 was 181,197,163 (31
December 2021: 142,155,199).  In addition, at 31 March 2022 the Company held
17,112,331 ordinary shares in treasury (31 December 2021: 15,929,774)

Following payment of the first interim dividend for the year ending 31
December 2022 of 1.5 pence per ordinary share on 6 May 2022, the Company
issued 903,714 ordinary shares under the DRIS, taking cumulative dividends
paid to 79.5 pence per ordinary share and the number of ordinary shares in
issue to 182,100,877 at that date.

Net assets

Net assets at 31 March 2022 comprised the following:

                                     £000     % of net assets
 Unquoted investments at fair value  73,569   66.0%
 Cash and cash equivalents           41,721   37.4%
 Other net current liabilities       (3,782)  (3.4%)
 Net assets                          111,508  100.0%

 

Investments

The investment portfolio at 31 March 2022 comprised:

                        Valuation  Cumulative valuation as a % of net assets

                        £000
 Matillion              23,696     21.3%
 Springboard Research   4,425      25.2%
 Unbiased               4,153      28.9%
 Wooshii                3,399      32.0%
 Intelligent Office UK  3,368      35.0%
 Elucidat               3,084      37.8%
 SharpCloud             2,865      40.3%
 Force24                2,665      42.7%
 ACC Aviation           2,436      44.9%
 DisplayPlan            2,366      47.0%
                        52,457     47.0%
 Other investments      21,112     66.0%
 Total investments      73,569     66.0%

Shareholder relations

We are pleased to confirm the return of an in-person Investor Workshop for
2022.  This will be held jointly with British Smaller Companies VCT plc on 29
June 2022 at 1 Great George Street, Westminster, London SW1P 3AA.  After the
success of the webinars over the past couple of years, we will also continue
providing these once per year, with the next event planned for December 2022.

Ukraine

During the build up to and subsequent to the recent invasion of Ukraine by
Russia, we have been closely monitoring the impact of the war on your
portfolio. There is minimal direct impact, which has principally been in a
small number of cases where portfolio company software development teams have
been based in Ukraine. From a business perspective, continuity of supply and
service has been secured, although we are aware of a small number of
developers who we believe are directly caught in the conflict and our thoughts
are with them and all those suffering the humanitarian impact of the war.

Outlook

Whilst the current UK and global economic backdrop presents an overall
challenging environment the search for those smaller higher growth businesses
that can develop and adapt over the medium term continues with the
characteristics sought unchanged. In all the businesses there will be an even
greater emphasis on focussing capital on those areas delivering a shorter term
impact, but we believe that the requirement and demand for equity from the
UK's smaller businesses is likely to be heightened over the coming months
which will give your Company opportunity to add to its portfolio.

Following the recent fundraise we are well placed to take advantage of this
opportunities as they arise.

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU No. 596/2014). Upon the publication of this announcement via Regulatory
Information Service this inside information is now considered to be in the
public domain.

21 June 2022

For further information please contact:

David Hall                YFM Private Equity
Limited
Tel:  0113 244 1000

Alex Collins              Panmure Gordon (UK) Limited
                            Tel:  0207 886 2767

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