Half-yearly report
25 Agosto 2011 - 11:20AM
UK Regulatory
TIDMOVC2
Octopus VCT 2 plc
Half-Yearly Results
25 August 2011
Octopus VCT 2 plc, managed by Octopus Investments Limited, today announces the
Half-Yearly results for the six months ended 30 June 2011.
These results were approved by the Board of Directors on 25 August 2011.
You may shortly view the Half-Yearly Report in full at
www.octopusinvestments.com by navigating to Services, Investor Services, Venture
Capital Trusts, Octopus VCT 2. All other statutory information will also be
found there.
About Octopus VCT 2 plc
Octopus VCT 2 plc ('OVCT 2', 'Company' or 'VCT') is a venture capital trust
('VCT') which aims to provide shareholders with attractive tax-free dividends
and long-term capital growth, by investing in a diverse portfolio of
predominately unquoted companies. The Company is managed by Octopus Investments
Limited ('Octopus' or 'Investment Manager').
OVCT 2 was incorporated on 6 January 2011 with the first allotment of equity
being on 16 March 2011. The total amount raised by 30 June 2011 was GBP19.0
million. The Offer for new subscriptions for shares closed on that date. Whilst
OVCT 2 will have the ability to invest in a variety of sectors and technologies,
the focus will be in the renewable energy sector, and, in particular, on solar
energy.
Venture Capital Trusts (VCTs)
VCTs were introduced in the Finance Act 1995 to provide a means for private
individuals to invest in unquoted companies in the UK. Subsequent Finance Acts
have introduced changes to VCT legislation. The tax benefits currently available
to eligible new investors in VCTs include:
* up to 30% up-front income tax relief;
* exemption from income tax on dividends paid; and
* exemption from capital gains tax on disposals of shares in VCTs.
OVCT 2 has been provisionally approved as a VCT by HM Revenue & Customs
('HMRC'). In order to maintain its approval the VCT must comply with certain
requirements on a continuing basis. By the end of its third accounting period
at least 70% of the VCT's investments must comprise 'qualifying holdings' of
which at least 30% must be in eligible Ordinary shares. A 'qualifying holding'
consists of up to GBP1 million invested in any one year in new shares or
securities in an unquoted company (or companies quoted on AIM) which is carrying
on a qualifying trade and whose gross assets do not exceed a prescribed limit at
the time of investment. The definition of a 'qualifying trade' excludes certain
activities such as property investment and development, financial services and
asset leasing. OVCT 2 will continue to ensure its compliance with these
qualification requirements.
Financial Summary
Period to 30 June 2011*
Net assets ( GBP'000s) 18,133
Loss on ordinary activities after tax ( GBP'000s) (107)
Net asset value per share (NAV) 94.0p
* Period covered by this report is 6 January 2011 to 30 June 2011
Chairman's Statement
I am delighted to be presenting to you in my capacity as Chairman the first
half-yearly report for Octopus VCT 2 plc for the period to 30 June 2011.
In the period, OVCT 2 successfully raised gross proceeds of GBP19.0 million. The
Offer for new subscriptions for shares closed on that date.
Investment Policy and Portfolio
Whilst Octopus VCT 2 will have the ability to invest in a variety of sectors and
technologies, the focus will be on building a portfolio of lower-risk
investments in the renewable energy sector, with a particular focus on solar
energy. Solar represents a significant investment opportunity as it is a well-
established, reliable form of technology that offers consistent ongoing returns
in exchange for minimal risk.
In the period to the 30 June 2011 we had invested into 18 companies that have
either successfully constructed solar power units that have been connected to
the National Grid, or are seeking to do so. We have since invested into 1
further company of the same nature. In total this has lead to the deployment of
GBP9.9 million, almost half of the funds raised, which is good progress at this
early stage of the VCTs life.
The government recently reduced the feed-in-tariff for solar projects of over
50KW. This became effective from 1 August 2011 and is likely to mean future
solar investments made by Octopus VCT 2 will be into projects of less than
50KW. That said we still expect a large proportion of the remaining cash to be
invested in the solar arena, although there are other lower-risk opportunities
away from renewable energy that the Investment Manager is considering.
Net Asset Value
Upon investment, the Fund received 94.5 pence for every 100 pence invested after
subtracting the initial fees paid to the Investment Manager and advisors. This
created an opening Net Asset Value (NAV) of 94.5 pence per share. During the
period the NAV has dropped slightly to 94.0 pence per share due to the standard
running costs of the Fund currently outweighing income generated at this stage
of the VCTs life.
Cash and Liquid Resources
Cash not yet invested is deposited in banks and money market funds which are
carefully chosen to be of a low risk nature, with capital preservation being the
main priority.
Principal Risks and Uncertainties
Risks faced by OVCT 2 include economic, investment and strategic, regulatory,
reputational, operational and financial risks. These risks, and the ways in
which they are managed, will be described in more detail in the VCT's Annual
Report and Accounts for the period ended 31 December 2011.
VCT Legislation
The Chancellor announced in his Budget on 23 March 2011 that the Government
intends to make several changes to VCTs. His proposals are good news for both
entrepreneurs and private investors seeking to invest in small companies with
high growth potential and should widen the scope for investment by VCTs. The key
points are that it is intended that VCT qualifying company limits will increase
from April 2012 as follows:
* maximum number of employees to increase from 50 to 250 employees;
* pre-investment gross assets limit to increase from GBP7m to GBP15m.
Although this is unlikely to affect the investments Octopus VCT 2 has made to
date, we are encouraged by these reforms as it indicates that the government
recognises VCTs play an important part in the UK economy and the changes should
lead to a more flexible platform in which to invest the remaining funds in the
VCT.
VCT Qualifying Status
PricewaterhouseCoopers LLP provides the Board and Octopus with advice on the
ongoing compliance with HMRC rules and regulations concerning VCTs. Octopus
does not foresee any issues with reaching the required investment hurdle of 70%
before the third anniversary of the end of the financial period in which
investors subscribed to the VCT.
Outlook
As the uncertainty over the current macro-economic environment from a domestic
and international perspective continues, investors are increasingly concerned
about the risk associated with investing in smaller unquoted companies. However
the investments your VCT has made, and indeed, intends to make, are largely
sheltered from this activity.
Solar energy is suitable for a lower risk VCT such as Octopus VCT 2 as there is
a known cost base and a known revenue stream. As the returns from solar
investments are largely fixed, this should provide a good background to which
the NAV of the VCT can make progress.
Ian Pearson
Chairman
25 August 2011
Investment Portfolio
% equity
Book cost Cumulative Fair value held by
as at 30 change in as at 30 % equity all funds
Investee June 2011 fair value June 2011 held by managed by
company Sector ( GBP'000) ( GBP'000) ( GBP'000) OVCT 2 Octopus
=-------------------------------------------------------------------------------
Aashman Power
Limited Solar 500 - 500 17.0% 100%
Grian Power
Limited Solar 500 - 500 25.0% 100%
Helaku Power
Limited Solar 500 - 500 25.0% 100%
Intina Power
Limited Solar 500 - 500 25.0% 100%
Kala Power
Limited Solar 500 - 500 18.5% 100%
Nima Power
Limited Solar 500 - 500 25.0% 100%
Tonatiuh
Trading 1
Limited Solar 500 - 500 20.7% 100%
Tuwale Power
Limited Solar 500 - 500 25.0% 100%
Cyrah Power
Limited Solar 500 - 500 27.7% 100%
Donoma Power
Limited Solar 500 - 500 18.4% 100%
Evaki Power
Limited Solar 500 - 500 23.6% 100%
Gnowee Power
Limited Solar 500 - 500 25.0% 100%
Howbery Solar
Limited Solar 600 - 600 31.6% 100%
Sula Power
Limited Solar 500 - 500 25.0% 100%
Teruko Power
Limited Solar 500 - 500 49.0% 100%
Tonatiuh
Trading 2
Limited Solar 500 - 500 25.0% 100%
Yata Power
Limited Solar 500 - 500 49.0% 100%
Palk Power
Limited Solar 500 - 500 25.0% 100%
=-------------------------------------------------------------------------------
Total fixed
asset
investments 9,100 - 9,100
Cash at bank 9,157
Debtors less
creditors (124)
=-------------------------------------------------------------------------------
Total net
assets 18,133
Responsibility Statement of the Directors in respect of the half-yearly report
We confirm that to the best of our knowledge:
* the half-yearly financial statements have been prepared in accordance with
the statement 'Half-Yearly Financial Reports' issued by the UK Accounting
Standards Board;
* the half-yearly report includes a fair review of the information required by
the Financial Services Authority Disclosure and Transparency Rules, being:
* an indication of the important events that have occurred during the first
six months of the financial year and their impact on the condensed set of
financial statements;
* a description of the principal risks and uncertainties for the remaining six
months of the year; and
* a description of related party transactions that have taken place in the
first six months of the current financial year, that may have materially
affected the financial position or performance of the Company during that
period and any changes in the related party transactions described in the
last annual report that could do so.
On behalf of the Board
Ian Pearson
Chairman
25 August 2011
Income Statement
+----------------------------+
| Period to 30 June 2011 |
| |
| Revenue Capital Total |
| |
| GBP'000 GBP'000 GBP'000 |
| |
| |
| |
Income | 11 - 11 |
| |
| |
| |
Investment management fees | - - - |
| |
| |
| |
Other expenses | (118) - (118) |
| |
| |
| |
Loss on ordinary activities before tax | (107) - (107) |
| |
| |
| |
Taxation on loss on ordinary activities | - - - |
| |
| |
| |
Loss on ordinary activities after tax | (107) - (107) |
| |
Earnings per share - basic and diluted | (1.1)p - (1.1)p |
+----------------------------+
* The 'Total' column of this statement is the profit and loss account of the
Company; the supplementary revenue return and capital return columns have
been prepared under guidance published by the Association of Investment
Companies.
* All revenue and capital items in the above statement derive from continuing
operations.
* The Company has only one class of business and derives its income from
investments made in shares and securities and from bank and money market
funds.
* The Company has no recognised gains or losses other than the results for the
period as set out above.
* The accompanying notes are an integral part of the half-yearly report.
Reconciliation of Movements in Shareholders' Funds
+------------------------+
| Period to 30 June 2011 |
| |
| GBP'000 |
| |
Shareholders' funds at start of period | - |
| |
Loss on ordinary activities after tax | (107) |
| |
Issue of equity (net of expenses) | 18,240 |
| |
Shareholders' funds at end of period | 18,133 |
+------------------------+
Balance Sheet
+--------------------+
| As at 30 June 2011 |
| |
| GBP'000 GBP'000 |
| |
| |
| |
Fixed asset investments* | 9,100 |
| |
Current assets: | |
| |
Debtors | 13 |
| |
Cash at bank | 9,157 |
| |
| 9.170 |
| |
Creditors: amounts falling due within one year | (137) |
| |
| |
Net current assets | 9,033 |
| |
| |
| |
Net assets | 18,133 |
| |
| |
| |
Called up equity share capital | 193 |
| |
Share premium | 18,047 |
| |
Capital reserve | - |
| |
Revenue reserve | (107) |
| |
| |
| |
Total equity shareholders' funds | 18,133 |
| |
Net asset value per share | 94.0p |
+--------------------+
*Held at fair value through profit and loss
The statements were approved by the Directors and authorised for issue on 25
August 2011 and are signed on their behalf by:
Ian Pearson
Chairman
Company Number: 07484406
Cash flow statement
+------------------------+
| Period to 30 June 2011 |
| |
| GBP'000 |
| |
| |
| |
Net cash inflow from operating activities | 17 |
| |
| |
| |
Financial investment: | |
| |
Purchase of fixed asset investments | (9,100) |
| |
| |
| |
Financing: | |
| |
Issue of equity | 19,047 |
| |
Share issue expenses | (807) |
| |
Increase in cash resources at bank | 9,157 |
+------------------------+
Reconciliation of return before taxation to cash flow from operating
activities
+----------------------+
|Period to 30 June 2011|
| |
| GBP'000|
| |
Return on ordinary activities before tax| (107)|
| |
Increase in debtors | (13)|
| |
Increase in creditors | 137|
| |
Inflow from operating activities | 17|
+----------------------+
Reconciliation of net cash flow to movement in net funds
+------------------------+
| Period to 30 June 2011 |
| |
| GBP'000 |
| |
Increase in cash resources at bank | 9,157 |
| |
Movement in cash equivalents | - |
| |
Opening net cash resources | - |
| |
Net funds at period end | 9,157 |
+------------------------+
Notes to the Half-Yearly Report
1. Basis of preparation
The unaudited half-yearly results which cover the period to 30 June 2011 have
been prepared in accordance with the Accounting Standards Board's (ASB)
statement on half-yearly financial reports (July 2007).
2. Publication of non-statutory accounts
The unaudited half-yearly results for the six months ended 30 June 2011 do not
constitute statutory accounts within the meaning of Section 415 of the Companies
Act 2006.
3. Earnings per share
The earnings per share is based on 9,816,920 shares, being the weighted average
number of Ordinary shares in issue during the period.
There are no potentially dilutive capital instruments in issue and therefore no
diluted returns per share figures are relevant. The basic and diluted earnings
per share are therefore identical.
4. Net asset value per share
The calculation of NAV per share as at 30 June 2011 is based on 19,300,111
Ordinary shares in issue at that date.
5. Share Issues
During the period, the Company issued 19,300,111 Ordinary shares at a price of
100.0p per share.
6. Related Party Transactions
Octopus provides investment management and administration & accounting services
to the Company under a management agreement which runs for a period of six years
with effect from 16 March 2011 and may be terminated at any time thereafter by
not less than twelve months' notice given by either party.
Under the agreement, the Investment Manager will receive an annual management
fee of an amount equivalent to 2.0% of the net assets of the VCT (plus VAT, if
any, at the applicable rate). In order to ensure alignment of interests between
Octopus and shareholders, the annual management fees will be rolled up (interest
free) and will only be paid to Octopus once shareholders have received back a
minimum of 105p per Ordinary share (in the form of dividends and other
distributions), after taking account of, on a winding-up, the accrued management
fees.
In addition, Octopus will only be entitled to receive an annual management fee
for the period up to the date on which the Annual General Meeting in 2016 is
held (expected to be in June 2016) if shareholders approve the winding-up of the
VCT and return capital to shareholders.
The administration and accounting fee is payable quarterly in arrears for a fee
of 0.3% of the NAV calculated at annual intervals as at 31 December. During the
period GBP13,500 was due to Octopus Investments and there was GBP13,500 outstanding
at the balance sheet date.
In addition, Octopus also provides secretarial services for an additional fee of
GBP15,000 per annum. During the period GBP4,000 was due to Octopus Investments
Limited and there was GBP4,000 outstanding at the balance sheet date.
7. Copies of this report are available from the registered office of the
Company at 20 Old Bailey, London, EC4M 7AN.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Octopus VCT 2 PLC via Thomson Reuters ONE
[HUG#1541197]
Grafico Azioni Octopus Vct 2 (LSE:OVC2)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Octopus Vct 2 (LSE:OVC2)
Storico
Da Giu 2023 a Giu 2024
