REG - British Smlr Comp 2 - 3rd Quarter Results

British Smaller Companies VCT2Announcement

29/11/2024 09:00

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RNS Number : 1850O  British Smaller Companies VCT2 Plc  29 November 2024

British Smaller Companies VCT2 plc

Interim Management Statement

For the quarter ended 30 September 2024

British Smaller Companies VCT2 plc (the "Company") presents its interim
management statement for the quarter ended 30 September 2024. 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

In the quarter to 30 September 2024, the Company saw a 0.3 per cent reduction
in its Net Asset Value per share to 57.35 pence.

The Company's Total Return at 30 September 2024 was down 0.15 pence at 145.10
pence per ordinary share.

During the quarter, the Company invested £6.4 million into five existing
portfolio companies: Xapien, Quality Clouds, AutomatePro, SharpCloud and
Biorelate; and £1.2 million into new investment Integrum ESG. Subsequent to
the period-end, a further £0.3 million has been invested, taking the total
amount invested so far this year to £15.1 million.

In October 2024 the Company sold its investment in Traveltek for £1.9
million. Total proceeds over the life of the investment are £2.6 million, a
2.3x return on the Company's cost. There is the potential for further deferred
proceeds in due course.

Performance

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

 

                                  30             June         2024                      Decrease in value  Buy-back of shares  Movement     30 September 2024

                                                                                                                               in period
 Net Assets (£m)                  162.9                                                 (0.4)              (0.8)               (1.2)        161.7
 NAV per share (PPS)              57.50p                                                (0.15p)            -                   (0.15p)      57.35p
 Cumulative dividends paid (PPS)  87.75p                                                -                  -                   -            87.75p
 Total Return (PPS)               145.25p                                               (0.15p)            -                   (0.15p)      145.10p
 Shares in issue                  283,400,383                                           -                  (1,422,727)         (1,422,727)  281,977,656

 

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

                              £m            Pence per

                                            ordinary share
 NAV at 30 June 2024                 162.9            57.50
 Increase in portfolio value  0.1           0.05
 Net operating costs          (0.5)         (0.20)
                              (0.4)         (0.15)
 Buy-back of shares           (0.8)         -
 Total Return in the period          (1.2)            (0.15)
 NAV at 30 September 2024            161.7            57.35

 

Buy-backs and shares in issue

On 26 September 2024, the Company purchased 1,422,727 ordinary shares of 10
pence each at a price of 55.13 pence per ordinary share. These shares were
placed in treasury.

The number of ordinary shares in issue at 30 September 2024 was 281,977,656
(30 June 2024: 283,400,383), with a further 26,573,146 ordinary shares held in
treasury (30 June 2024: 25,150,419).

Subsequent to the quarter end, on 1 November 2024 the Company issued 1,251,293
shares arising from the Company's Dividend Re-Investment Scheme (DRIS)
following the payment of the interim dividend, taking the number of shares in
issue at that date to 283,228,949, with a further 26,573,146 in treasury.

Net assets

Net assets at 30 September 2024 comprised the following:

                                     £000     % of net assets
 Unquoted investments at fair value  104,164  64.4
 Cash and cash equivalents           55,922   34.6
 Other net current assets            1,625    1.0
 Net assets                          161,711  100.0

 

Investments

The investment portfolio at 30 September 2024 comprised:

                    Valuation  Cumulative valuation as a % of net assets

                    £000
 Matillion          18,972     11.7%
 Unbiased           9,149      17.4%
 Outpost            5,035      20.5%
 Xapien             4,598      23.3%
 SharpCloud         4,441      26.1%
 ACC Aviation       4,282      28.7%
 Elucidat           4,040      31.2%
 Vypr               4,013      33.7%
 Force24            3,964      36.2%
 Quality Clouds     3,894      38.6%
                    62,388     38.6%
 Other investments  41,776     64.4%
 Total investments  104,164    64.4%

 

 

Fundraising

Having assessed its expected cash requirements, the Company announced a new
share offer on 17 October 2024, alongside British Smaller Companies VCT plc,
with the intention of raising up to £75 million (in aggregate), which
includes an over-allotment facility of £25 million.  Applications exceeding
£52 million have been received as of the date of this report, of which £20.5
million relate to the Company. The allotment of the first £25 million of
gross proceeds will take place between 27 and 31 January 2025. The second and
final allotment will take place between 1 and 4 April 2025.  Funds awaiting
allotment will receive additional shares equivalent to a 3.35 per cent per
annum return (rate subject to change by the receiving agent's banking
provider).

General Meeting

The Company held a general meeting on 12 November 2024 at which special
resolutions were passed relating to the cancellation of the Company's share
premium account and capital redemption reserve, and the reduction in the
nominal value of the Company's issued share capital. Once the relevant
cancellations have been approved by the High Court, which is expected by the
end of the year, this will create c.£85 million of additional distributable
reserves over the next three years. There is no dilution to shareholders'
interests.

Outlook

The Company registered a small 0.3 per cent decrease in its net asset value
per share in the period, reflecting a small number of specific investee
company circumstances that have reduced valuations in these investments.  In
contrast, several companies in the portfolio are showing strong levels of
underlying growth, and we have been pleased to have the opportunity to invest
further in a number of these businesses in the year to date, to help them
accelerate this progress.

The Company has invested in four new companies in the first nine months of the
year and continues to have an active pipeline of opportunities.  The current
2024/25 fundraise continues to progress well and will ensure that the Company
is well placed to continue to invest in innovative, growing UK companies.

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.

29 November 2024

 

For further information please contact:

Marcus Karia            YFM Equity Partners
 
        Tel:  0113 244 1000

Alex Collins              Panmure Liberum
 
Tel:  0207 886 2767

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