REG - British Smlr Comp 2 - Interim Management Statement

British Smaller Companies VCT2Announcement

28/11/2025 10:00

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RNS Number : 4491J  British Smaller Companies VCT2 Plc  28 November 2025

British Smaller Companies VCT2 plc

Interim Management Statement

For the quarter ended 30 September 2025

British Smaller Companies VCT2 plc (the "Company") presents its interim
management statement for the quarter ended 30 September 2025. 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 2025 the Company saw a 0.6 per cent increase in
its Net Asset Value ("NAV") per share. The NAV at 30 September 2025 is 55.40
pence per share.

The Company's Total Return at 30 September 2025 was up 0.35 pence, to 147.15
pence per ordinary share.

During the quarter, the Company invested £2.6 million into three existing
portfolio companies: AutomatePro, Fuuse and Panintelligence; and £1.2 million
into new investment DynaRisk. Subsequent to the period-end, a further £1.1
million has been invested into existing portfolio company Plandek, taking the
total amount invested so far this year to £12.5 million.

In July 2025 the sale of the trade and liabilities of Wooshii was completed;
no proceeds were received on exit, in line with its minimal carrying value,
although there is the potential for a small return for the Company depending
on future trading.

In October 2025, the Company realised its investment in Elucidat, receiving
£3.6 million in initial proceeds, with additional deferred consideration of
£0.5 million anticipated to be received over the next 18 months.  To date,
the Elucidat investment has generated a 1.3x return on the original cost of
£2.8 million.  Including deferred consideration, proceeds have the potential
to rise to £4.1 million, and the return to 1.45x.

Performance

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

 

                                  30 June 2025  Increase in value  Issue/buy-back of shares  Movement     30 September 2025

                                                                                             in period
 Net Assets (£m)                  182.1         1.1                (0.8)                     0.3          182.4
 NAV per share (PPS)              55.05p        0.35p              -                         0.35p        55.40p
 Cumulative dividends paid (PPS)  91.75p        -                  -                         -            91.75p
 Total Return (PPS)               146.80p       0.35p              -                         0.35p        147.15p
 Shares in issue                  330,808,564   -                  (1,543,959)               (1,543,959)  329,264,605

 

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

                              £m            Pence per

                                            ordinary share
 NAV at 30 June 2025                 182.1            55.05
 Increase in portfolio value  1.6           0.50
 Net operating costs          (0.5)         (0.15)
                              1.1           0.35
 Issue/buy-back of shares     (0.8)         -
 Total Return in the period          0.3              0.35
 NAV at 30 September 2025            182.4            55.40

Net assets

Net assets at 30 September 2025 comprised the following:

                                     £000     % of net assets
 Unquoted investments at fair value  116,842  64.1
 Cash and cash equivalents           63,084   34.6
 Other net current assets            2,443    1.3
 Net assets                          182,369  100.0

Investments

The investment portfolio at 30 September 2025 comprised:

                    Valuation  Cumulative valuation as a % of net assets

                    £000
 Matillion          17,249     9.5%
 Unbiased           10,732     15.3%
 Vypr               7,260      19.3%
 AutomatePro        6,825      23.1%
 Xapien             6,801      26.8%
 Summize            6,066      30.1%
 SharpCloud         5,685      33.2%
 DrDoctor           4,228      35.6%
 Workbuzz           4,115      37.8%
 Force24            4,036      40.0%
                    72,997     40.0%
 Other investments  43,845     64.1%
 Total investments  116,842    64.1%

 

Portfolio performance
 

Over the quarter to 30 September 2025, the aggregate unquoted portfolio
valuation increased by £1.6 million, reflecting good levels of underlying
revenue growth in portfolio companies.

Dividends, buy-backs and shares in issue

Under its standing buyback authority, on 22 September 2025 the Company
purchased 1,543,959 shares at 52.80 pence per share, at a cost of £0.8
million. These shares are held in treasury.

Post-period end, on 31 October 2025, a dividend of 1.50 pence per ordinary
share for the year ending 31 December 2025 was paid, resulting in a
corresponding reduction in the Company's NAV per ordinary share, adjusting the
last reported NAV to 53.90 pence per ordinary share. Cumulative dividends paid
are now 93.25 pence per ordinary share.

On 31 October 2025 the Company also issued 1,396,003 shares under the
Company's Dividend Re-investment Scheme (DRIS), following which the Company's
issued share capital consists of 330,660,608 ordinary shares with voting
rights and 33,528,365 shares held in treasury.

Fundraising

Having assessed its expected cash requirements, the Company announced a new
share offer on 25 September 2025, alongside British Smaller Companies VCT plc,
with the intention of raising up to £85 million (in aggregate), which
includes an over-allotment facility of £25 million.  Applications exceeding
£58 million have been received as of the date of this report, of which £22
million relate to the Company. The allotment of the first £25 million of
gross proceeds will take place between 2 and 31 January 2026. All other
applications accepted will be allotted between 1 and 2 April 2026.  Funds
awaiting allotment will receive additional shares equivalent to a 2.36 per
cent per annum return (rate subject to change by the receiving agent's banking
provider).

Outlook

The short to medium term economic outlook remains impacted by concerns around
sticky inflation and pressures on fiscal headroom.

Despite this uncertainty, innovative companies are still prevailing and it is
encouraging to see several of the underlying holdings in the portfolio
delivering strong levels of growth, as they develop their offerings and take
on more customers in new and existing markets.

With a well-positioned portfolio and a new fundraising offer that has been
well-received to date by existing and new shareholders, the Company is well
positioned to benefit from the increased VCT investment limits announced in
this week's Budget, allowing the Company to back its best performing companies
for longer.

28 November 2025

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.

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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