Half-year Report

·14 min read

LONDON, August 12, 2022--(BUSINESS WIRE)--

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Chairman’s Statement

The Net Asset Value (NAV) of your fund declined by 28.3% to 59.7p, compared to the FSTE AIM Allshare index which declined by 28% over the same period.

We made five further investments in the period, investing in Clean Power Hydrogen PLC, Destiny Pharma PLC, Strip Tinning Holdings PLC, Truspine Technologies PLC and Verici Dx PLC. These new investments have either a healthcare or technology bias where we have seen an increased amount of interest from investors.

We made five sales where we either exited or top-sliced a holding, and within this number there was a take-over of our holding in Cloudcall PLC which was acquired by Xplorer Capital Management for cash.

It has a been a particularly tricky period for the fund as investors became nervous of inflationary pressures, interest rate rises, constrained supply chains and the war in the Ukraine all caused a general lack of appetite and liquidity in many small companies. Whilst we acknowledge the performance of the fund has been disappointing, it has performed in line with its benchmark, and indeed over the past 3 years, from 2 August 2019 to 2 August 2022, it is the only AIM VCT fund to have produced a positive NAV performance (source: Citywire).

We continue to have a wide spread of established companies across a variety of sectors within the fund and whilst we hope your fund will perform over the rest of the year, we are mindful that we could see further volatility in the months ahead.

Geoff Gamble

Chairman

11 August 2022

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Balance Sheet

Interim Accounts

Final Accounts

Interim Accounts

as at 30 June 2022

as at 31 December 2021*

as at 30 June 2021

£'000

£'000

£'000

£'000

£'000

£'000

Fixed Assets

Investments

2,679

3,772

3,853

Current Assets

Uninvested cash

356

356

88

88

340

340

Current Liabilities

Creditors: amounts due

within one year

(7)

(20)

(13)

3,028

3,840

4,180

Capital and Reserves

Share capital

507

461

461

Share premium

382

57

57

Capital redemption reserve

171

171

171

Special distributable reserve

3,118

3,118

3,440

Capital reserve - realised

(24)

(236)

(419)

Capital reserve - unrealised

(1,007)

334

515

Revenue reserve

(119)

(65)

(45)

3,028

3,840

4,180

Net Asset Value per share

59.7p

83.3p

90.7p

*Audited

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

6 month period ended 30 June 2022

Year to 31 December 2021*

6 month period ended 30 June 2021

Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Gains/(losses) on investments

Realised

-

37

37

-

427

427

-

246

246

Unrealised

-

(1,154)

(1,154)

-

714

714

-

878

878

Income

15

-

15

28

-

28

13

-

13

Investment management fees

(4)

(12)

(16)

(10)

(30)

(40)

(5)

(15)

(20)

Other expenses

(65)

-

(65)

(57)

-

(57)

(27)

-

(27)

Return on ordinary activities

(54)

(1,129)

(1,183)

(39)

1,112

1,073

(19)

1,109

1,090

Tax on ordinary activities

-

-

-

-

-

-

-

-

-

Return on ordinary activities

after taxation

(54)

(1,129)

(1,183)

(39)

1,112

1,073

(19)

1,109

1,090

Return per ordinary share in pence

(1.09)

(23.07)

(24.16)

(0.85)

24.13

23.28

(0.42)

24.08

23.66

*Audited

All revenue and capital items in the above statement are from continuing operations in the current six month period. No operations were acquired or discontinued in the current period. Other than that shown above, the company had no recognised gains or losses. Accordingly, the above represents the total comprehensive income for the period.

The weighted average number of shares in issue during the period was 4,894,566.

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Consolidated Statement of Changes in Equity

Called-up
share capital

£’000

Share Premium
account

£’000

Capital Redemption
reserve

£’000

Special
distributable

reserve
£’000

Capital

realised
£’000

Capital

unrealised
£’000

Revenue
reserve

£’000

Total

£’000

As at 1 January 2022

461

57

171

3,118

(236)

334

(65)

3,840

Realised gains on disposals in period

-

-

-

-

37

-

-

37

Unrealised losses

-

-

-

-

-

(1,154)

-

(1,154)

Transfer of unrealised gain to
realised on disposal of investment

-

-

-

-

187

(187)

-

-

Net revenue before tax

-

-

-

-

-

-

(54)

(54)

New shares issued

46

325

-

-

-

-

-

371

Investment management fee

-

-

-

-

(12)

-

-

(12)

________

________

_________

_________

_______

________

________

________

At 30 June 2022

507

382

171

3,118

(24)

(1,007)

(119)

3,028

As at 1 January 2021

461

57

171

3,440

(605)

(408)

(26)

3,090

Realised gains on disposals

-

-

-

-

427

-

-

427

Unrealised gains

-

-

-

-

-

714

-

714

Transfer of unrealised loss
to realised on disposal of
investment

-

-

-

-

(28)

28

-

-

Net revenue before tax

-

-

-

-

-

-

(39)

(39)

Investment management fee

-

-

-

-

(30)

-

-

(30)

Dividends paid

-

-

-

(322)

-

-

-

(322)

________

________

_________

_________

________

________

________

________

At 31 December 2021

461

57

171

3,118

(236)

334

(65)

3,840

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Consolidated Statement of Changes in Equity (continued)

Called-up
share capital

£’000

Share Premium
account

£’000

Capital
Redemption reserve

£’000

Special
distributable

reserve
£’000

Capital
realised
£’000

Capital
unrealised
£’000

Revenue
reserve

£’000

Total

£’000

As at 1 January 2021

461

57

171

3,440

(605)

(408)

(26)

3,090

Realised gains on disposals

-

-

-

-

246

-

-

246

Unrealised gains

-

-

-

-

-

878

-

878

Transfer of unrealised loss
to realised on disposal of
investment

-

-

-

-

(45)

45

-

-

Net revenue before tax

-

-

-

-

-

-

(19)

(19)

Investment management fee

-

-

-

-

(15)

-

-

(15)

________

________

_________

_________

________

________

________

________

At 30 June 2021

461

57

171

3,440

(419)

515

(45)

4,180

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Cash Flow Statement

Six month period ended
30 June 2022

Year to
31 December 2021*

Six month period ended
30 June 2021

£'000

£'000

£'000

£'000

£'000

£'000

Net cash generated from operating activities

(93)

(96)

(53)

Cash flow from investing activities

Investment income

15

28

13

Cash flows from financing activities

Sale of investments

283

907

577

Purchase of investments

(308)

(485)

(254)

Share issue

371

-

-

Dividends paid

-

(322)

-

346

99

323

Net increase in cash and cash equivalents

268

31

283

Cash and cash equivalents at beginning of period

88

57

57

Cash and cash equivalents at end of period

356

88

340

*Audited

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Investment Portfolio

Security

Cost

Valuation

%

%

30 June 2022

Cost

Valuation

Qualifying Investments

3,425,813

2,547,303

84.76

83.92

Non-qualifying Investments

259,978

132,101

6.43

4.35

Uninvested funds

355,950

355,950

8.81

11.73

4,041,741

3,035,355

100.00

100.00

Qualifying Investments

AIM Quoted

Abingdon Health plc

35,218

4,008

0.87

0.13

Access Intelligence plc

10,053

24,500

0.25

0.81

Actual Experience plc

63,174

1,634

1.56

0.05

AFC Energy plc

50,254

64,313

1.24

2.12

Anglo African Oil & Gas plc

65,329

0

1.62

0.00

Arecor Therapeutic plc

12,818

18,788

0.32

0.62

Audioboom Group plc

54,112

202,356

1.34

6.67

Belluscura plc

52,263

99,724

1.29

3.29

Blackbird plc

18,845

74,625

0.47

2.46

Brighton Pier Group plc

35,379

18,260

0.88

0.60

C4X Discovery Holdings plc

35,179

54,250

0.87

1.79

Clean Power Hydrogen plc

50,253

37,778

1.24

1.24

Cloudbuy plc

41,896

153

1.04

0.01

Coral Products plc

25,104

26,825

0.62

0.88

Creo Medical Group plc

20,504

24,158

0.51

0.80

CyanConnode Holdngs plc

204,219

9,606

5.05

0.32

Deepmatter plc

50,253

3,333

1.24

0.11

Deepverge plc

93,203

16,014

2.31

0.53

Destiny Pharma plc

175,882

130,769

4.35

4.31

Diaceutics plc

10,314

12,285

0.26

0.40

DP Poland plc

25,631

10,540

0.63

0.35

ECSC Group plc

20,104

13,091

0.50

0.43

Eden Research plc

21,107

13,300

0.52

0.44

Falanx Group Ltd

85,234

35,210

2.11

1.16

Feedback plc

100,511

70,857

2.49

2.33

Fusion Antibodies plc

12,064

5,867

0.30

0.19

Gfinity plc

33,229

12,733

0.82

0.42

Immotion Group plc

95,486

44,417

2.36

1.46

I-Nexus Global plc

30,153

1,519

0.75

0.05

Inspired Energy plc

33,641

146,475

0.83

4.83

Intelligent Ultrasound Group plc

95,482

110,268

2.36

3.63

Keywords Studios plc

2,226

39,456

0.06

1.30

Kinovo plc

52,465

13,635

1.30

0.45

Libertine Holdings plc

125,628

131,250

3.11

4.32

Security

Cost

Valuation

%

%

30 June 2022

Cost

Valuation

Lightwaverf plc

30,158

1,765

0.75

0.06

Location Sciences Group plc

72,643

5,527

1.80

0.18

Loopup Group plc

15,078

860

0.37

0.03

Lunglife AI Inc

20,104

15,910

0.50

0.52

M.Winkworth plc

56,280

108,500

1.39

3.57

Marechale Capital plc

75,752

16,500

1.87

0.54

Microsaic Systems plc

142,261

2,369

3.52

0.08

Mirriad Advertising plc

30,154

11,625

0.75

0.38

MyHealthChecked plc

103,202

87,106

2.55

2.87

N4 Pharma plc

40,204

8,760

0.99

0.29

Pelatro plc

25,128

10,800

0.62

0.36

PHSC plc

50,256

50,000

1.24

1.65

Polarean Imaging plc

16,334

48,696

0.40

1.60

Property Franchise Group plc

54,750

142,245

1.35

4.69

Quixant plc

8,091

26,600

0.20

0.88

Rosslyn Data Technologies plc

23,219

1,288

0.57

0.04

Scancell Holdings plc

45,233

41,681

1.12

1.37

Scholium Group plc

40,203

16,000

0.99

0.53

SEEEN plc

50,257

13,778

1.24

0.45

Smoove plc

18,091

25,650

0.45

0.85

Solid State plc

35,248

162,299

0.87

5.35

SRT Marine Systems plc

4,523

7,750

0.11

0.26

Strip Tinning plc

15,890

8,118

0.39

0.27

Sysgroup plc

45,232

18,750

1.12

0.62

TP Group plc

160,062

9,723

3.96

0.32

Trellus Health plc

25,128

8,125

0.62

0.27

Tristel plc

1,651

14,060

0.04

0.46

Verici Dx plc

101,505

83,254

2.51

2.74

XP Factory plc

31,006

3,770

0.77

0.12

Yourgene Health plc

40,204

12,460

0.99

0.41

Yu Group plc

20,504

20,949

0.51

0.69

3,235,562

2,456,913

80.05

80.94

Qualifying Investments

AQSE Quoted

Sulnox Grp plc

35,279

19,890

0.87

0.66

Truspine Technology plc

100,283

70,500

2.48

2.32

135,562

90,390

3.35

2.98

Qualifying Investments

Unlisted Investments

Outsourcery plc

28,143

0

0.70

0.00

Syqic plc

26,546

0

0.66

0.00

54,689

0

1.36

0.00

Total qualifying investments

3,425,813

2,547,303

84.76

83.92

Security

Cost

Valuation

%

%

30 June 2022

Cost

Valuation

Non Qualifying Investments

AIM Quoted

Audioboom Group plc

1,163

924

0.03

0.03

Rotala plc

27,683

21,910

0.68

0.72

Tristel plc

60

352

0.00

0.01

28,906

23,186

0.71

0.76

Non Qualifying Investments

UK Listed

Investec plc

169,415

101,175

4.19

3.33

Twentyfour Income Fund Ltd

9,852

7,740

0.25

0.26

179,267

108,915

4.44

3.59

Non Qualifying Investments

Unlisted Investments

China Food Co plc

31,547

0

0.78

0.00

Sorbic International plc

10,205

0

0.25

0.00

Mar City plc

10,053

0

0.25

0.00

51,805

0

1.28

0.00

Total non-qualifying investments

259,978

132,101

6.43

4.35

New Century AIM VCT 2 plc

Notes to the Accounts
For the six months to 30 June 2022

This interim financial information and the unaudited interim accounts for the six months to 30 June 2022 from which it has been extracted, are the responsibility of the directors and were approved by them on 11 August 2022, do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 and have not been delivered to the Registrar of Companies.

The Company is an investment company as defined in Section 833 of the Companies Act 2006. The unaudited interim accounts have been prepared in accordance with the Financial Reporting Council’s (FRC) Financial Reporting Standard 104 Interim Financial Reporting (January 2022) and with the Statement of Recommended Practice for Investment Companies re-issued by the Association of Investment Companies in November 2014 and updated in July 2022.

The unaudited interim accounts have been prepared using accounting policies that the Company applied in the accounts for the year ending 31 December 2021, incorporating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The Company considers these accounting policies will be used in the accounts for the year ending 31 December 2022.

Listed, AIM or AQUIS Markets - traded investments are stated at market value, which is based upon market bid prices in an active market at the balance sheet date. These would all meet tier 1 of the fair value hierarchy.

4,606,953 Ordinary Shares of 10 pence each were in issue from 1 January 2022 until 8 March 2022. On the 9 March 2022 the Company issued 460,690 new shares at a price of 80.47p per share. At the 30 June 2022 there were 5,067,643 shares in issue. The average weighted number of shares in issue in the period was 4,894,566.

Net Asset Value per share at 30 June 2022 was 59.7p (at 31 December 2021: 83.3p; 30 June 2021: 90.7p).

No dividend was paid in the period.

There have not been any significant events since the balance sheet date.

New Century AIM VCT 2 plc is managed by Oberon Investments Limited (‘OIL’). Under the terms of the management agreement, OIL is entitled to a fee (exclusive of VAT) equal to 1% per annum of the net assets of the Company. During the period the management fee was £16k (the year ended 31 December 2021, £40k; the period ended 30 June 2021, £20k).

Bearing in mind that the assets of the Company consist mainly of marketable securities, the directors are of the opinion that at the time of approving this interim financial information, the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing this interim financial information.

Copies of the Interim Report to Shareholders have been sent to shareholders and are available at the Company’s Registered Office: Tricor Secretaries Ltd, 4th Floor, 50 Mark Lane, London EC3R 7QR.

New Century AIM VCT 2 plc

Directors, Investment Managers and Advisors

Directors

Geoffrey Charles Gamble (Chairman)

Michael David Barnard

Peter William Riley

Ian Cameron-Mowat

Simon Like

Secretary

Tricor Secretaries Ltd

and registered office

4th Floor, 50 Mark Lane

London EC3R 7QR

Registrar

Neville Registrars Limited

Neville House

Steelpark Road

Halesowen

West Midlands B62 8HD

Solicitors

Dundas & Wilson

5th Floor, Northwest Wing

Bush House

Aldwych

London WC2B 4EZ

Investment Manager and Broker

Oberon Investments Limited

1st Floor

12 Hornsby Square

Southfields Business Park

Basildon

Essex SS15 6SD

Auditor

Moore Kingston Smith LLP
9 Appold Street
London
EC2A 2AP

View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005543/en/

Contacts

New Cent. Aim Vct 2