REG-Oxford Technology 2 VCT plc : 3rd Quarter Results <Origin Href="QuoteRef">OXF2.L</Origin>

Oxford Technology 2 Venture Capital TrustAnnouncement

19/12/2017 07:05

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Oxford Technology 2 VCT PLC

Update for the quarter ending 30 November 2017

Oxford Technology 2 VCT PLC presents its quarterly update for the period
commencing 1 September 2017. 

The Directors have recently reviewed the valuation of its entire portfolio and
the unaudited net asset value per ordinary share was 40.8p as at 30 November
2017.  This is an increase of 1.9p from the previously published NAV per
share for the period ending 31 August 2017. The total return to shareholders
who remain on the register is now 53.8p per share, including previous
dividends of 13.0p per share.

On 5 December 2017 - post the quarter end - we paid a further dividend of 8p
per share, with a corresponding reduction in the above quoted NAV per share.

During the period under review, we concluded the Tender Offer, which was taken
up by over 20% of our shareholders, and as a result, the Company cancelled
1,461,034 Ordinary Shares, reducing its total issued share capital from
6,792,923 to 5,331,889 Ordinary Shares. The 15% level of discount was set to
ensure a fair balance between those shareholders who chose to participate in
the Tender Offer, and those wishing to retain their shareholding in the
Company. This resulted in a 1.4p per share increase in net asset value, which
is in part to compensate remaining shareholders who are liable to incur a
greater proportion of running costs per share going forward, given the fixed
nature of these expenses.

At the end of November 2017, we made a £200k follow-on investment into
Arecor, making it the largest holding in the Company's portfolio of eight
remaining investees at 30 November 2017.  Arecor (www.arecor.com) is a
potentially world class pharmaceutical research company based in Cambridge and
has a very advanced diabetes drug formulation technology. This is the type of
investment that Oxford Technology 2 VCT PLC has supported for the last 17
years and appears to be exactly the sort of VCT investment envisaged and
encouraged by the government in the recent autumn budget.

This investment was the maximum permitted by the 15% VCT rule, and was only
made possible by deferring the 8p per share dividend payment for as long as
possible to enable this investment to proceed.  Following the sale of OC
Robotics in June 2017, Oxford Technology 2 VCT PLC had six months to return
funds to shareholders or make further investments of the money or it would
lose VCT qualifying status.  We are pleased to confirm that with the return
of nearly £900k to shareholders, and the investment in Arecor, we have
completed our requirements under the VCT rules and remain VCT compliant.

The Board of Oxford Technology 2 VCT PLC welcomes the recent budget changes
with respect to VCTs and the government's response to the Patient Capital
Review. We welcome the extension of the six month VCT rule to twelve months as
providing a greater level of future re-investment flexibility. We also
appreciate the rationale for the increase of the level of qualifying
investments to 80% (up from 70%) from April 2019. However, as a very small
VCT, we believe this may give us some administrative problems - an unintended
consequence of the proposed revised legislation. With all of our investments
being unquoted and with no short term method of realisation, we require a cash
reserve for administrative expenses. Corporate liquidity tests will therefore
become much tighter once the new regime is in force. We will take up this
issue with HMRC while the Finance Bill passes through its reviews. We hope
that a simple amendment is possible.

The Directors are not aware of any other events or transactions that have
taken place between 30 November 2017 and the publication of this statement
that have had a material effect on the financial position of the Company.

19 December 2017

Enquiries:
Lucius Cary, Oxford Technology Management
01865 784466
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The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: Oxford Technology 2 VCT plc via Globenewswire