NEW CENTURY AIM VCT 2 PLC

Interim / Quarterly Report • Aug 28, 2020

National Storage Mechanism | Additional information

Half-year Report

New Century AIM VCT 2 plc

For the six months to 30th June 2020

Chairman’s Statement

It is pleasing to report that following a very difficult period for the Market during February and March 2020, your fund regained nearly all of the declines in its net asset value (NAV) incurred during those months, and considerably outperformed its benchmark for the six months to 30 June 2019.

The NAV of your fund decreased by 2.5% to 48.3p (when measured using bid-prices), compared to the FTSE AIM Allshare index which declined by 7.8% over the same period.

It is also pleasing to note that the NAV reported for 31 July 2020 (based on mid-prices) is now higher than that reported for the 31 December 2019. We believe the difficult decision to use existing cash resources to invest in new opportunities rather than fund a dividend has proved to be the correct one as we have seen a strong recovery in the NAV from the lows experienced in the Stock Market sell off in March 2020 and we hope, subject to the possible volatility mentioned below, to be able to recommence paying a dividend next year.

We made seven further investments in the period, investing in Concepta PLC, Eden Research PLC, ECSC Group PLC, Fusion Antibodies PLC, Gfinity PLC, Intelligent Ultrasound Group PLC and Synairgen PLC. We are pleased to report each of these investments are currently priced higher than when we made our investment and we exited one at a 100% profit.

We made seven sales where we either exited or top-sliced a holding.

We have a wide spread of established companies across a variety of sectors within the fund and whilst we hope your fund will continue to outperform over the rest of the year, we are mindful that we could see further volatility this Autumn / Winter. The second half of the year has political events such as the US Presidential elections and the uncertainty over what type of BREXIT we will have as well as the possibility of a second wave of the virus.

Geoff Gamble

Chairman

28 August 2020

New Century AIM VCT 2 plc

For the six months to 30 June 2020

Unaudited Balance Sheet

		Interim Accounts			Final Accounts			Interim Accounts
		as at 30 June 2020			as at 31 December 2019*			as at 30 June 2019
		£'000	£'000		£'000	£'000		£'000	£'000
Fixed Assets
	Investments		2,127			2,253			2,465
Current Assets
	Uninvested cash	104	104		45	45		4	4
Current Liabilities
	Creditors: amounts due
	within one year		(6)			(16)			(6)
			2,225			2,282			2,463
Capital and Reserves
	Share capital		461			461			461
	Share premium		57			57			57
	Capital redemption reserve		171			171			171
	Capital reserve-distributable		3,440			3,440			3,440
	Capital reserve - realised		(712)			(866)			(1,072)
	Capital reserve - unrealised		(1,193)			(1,002)			(786)
	Revenue reserve		1			21			192
			2,225			2,282			2,463
Net Asset Value per share			48.3p			49.5p			53.5p
					*Audited

New Century AIM VCT 2 plc

For the six months to 30 June 2020

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

			6 month period ended 30 June 2020			Year to 31 December 2019*			6 month period ended 30 June 2019
			Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
			£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments
Realised			-	116	116	-	209	209	-	46	46
Unrealised			-	(145)	(145)	-	42	42	-	206	206
Income			7	-	7	35	-	35	15	-	15
Investment management fees			(2)	(8)	(10)	(6)	(18)	(24)	(3)	(9)	(12)
Other expenses			(25)	-	(25)	(52)	-	(52)	(21)	-	(21)
Return on ordinary activities			(20)	(37)	(57)	(23)	233	210	(9)	243	234
Tax on ordinary activities			-	-	-	-	-	-	-	-	-
Return on ordinary activities
after taxation			(20)	(37)	(57)	(23)	233	210	(9)	243	234
Return per ordinary share in pence			(0.44)	(0.80)	(1.24)	(0.51)	5.06	4.55	(0.20)	5.28	5.08
						*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 4,606,953.

New Century AIM VCT 2 plc

For the six months to 30 June 2020

Unaudited Consolidated Statement of Changes in Equity

	Called-up share capital £’000	Share Premium account £’000	Capital Redemption reserve £’000	Capital Reserve- distributable £’000		Capital realised £’000		Capital unrealised £’000		Revenue reserve £’000		Total £’000
As at 1 January 2020	461	57	171	3,440		(866)		(1,002)		21		2,282
Realised gains on disposals in period	-	-	-	-		116		-		-		116
Unrealised gain	-	-	-	-		-		(145)		-		(145)
Transfer of unrealised gain to realised on disposal of investment	-	-	-	-		46		(46)		-		-
Net revenue before tax	-	-	-	-		-		-		(20)		(20)
Investment management fee	-	-	-	-		(8)		-		-		(8)
	________	________	_________	_________		________		________		________		________
At 30 June 2020	461	57	171	3,440		(712)		(1,193)		1		2,225
As at 1 January 2019	461	57	171	3,440		(1,185)		(916)		201		2,229
Realised gains on disposals	-	-	-	-		46		-		-		46
Unrealised gains	-	-	-	-		-		206		-		206
Transfer of unrealised loss to realised on disposal of investment	-	-	-	-		76		(76)		-		-
Net revenue before tax	-	-	-	-		-		-		(9)		(9)
Investment management fee	-	-	-	-		(9)		-		-		(9)
	________	________	_________	_________		________		________		________		________
At 30 June 2019	461	57	171	3,440		(1,072)		(786)		192		2,463

New Century AIM VCT 2 plc

For the six months to 30 June 2020

Unaudited Cash Flow Statement

	Six month period ended 30 June 2020				Year to 31 December 2019*				Six month period ended 30 June 2019
	£'000		£'000		£'000		£'000		£'000		£'000
Net cash generated from operating activities			(45)				(76)				(43)
Cash flow from investing activities
Interest received	-				-				-
Investment income	7				35				15
			7				35				15
Cash flows from financing activities
Sale of investments	252				700				227
Purchase of investments	(155)				(488)				(226)
Dividend paid	-				(157)				-
			97				55				1
Net increase/(decrease) in cash and cash equivalents			59				14				(27)
Cash and cash equivalents at beginning of period			45				31				31
Cash and cash equivalents at end of period			104				45				4
					*Audited

New Century AIM VCT 2 plc

For the six months to 30 June 2019

Investment Portfolio

	Security	Cost	Valuation	%	%
			30 June 2020	Cost	Valuation
	Qualifying Investments	2,891,826	2,028,516	88.54	90.93
	Non-qualifying Investments	270,018	98,070	8.27	4.40
	Uninvested funds	104,105	104,105	3.19	4.67
		3,265,949	2,230,691	100.00	100.00
	Qualifying Investments
	AIM Quoted
	Access Intelligence plc	10,053	14,250	0.31	0.64
	Anglo African Oil & Gas plc	65,329	975	2.00	0.04
	Audioboom Group plc	148,252	108,000	4.54	4.84
	Bigblu Broadband plc	29,247	41,387	0.90	1.86
	Bilby plc	52,465	17,460	1.61	0.78
	Blackbird plc	41,460	170,363	1.27	7.64
	Brighton Pier Group plc	35,379	8,360	1.08	0.37
	C4X Discovery Holdings plc	35,179	33,600	1.08	1.51
	Cloudbuy plc	41,896	153	1.28	0.01
	Cloudcall Group plc	20,230	27,650	0.62	1.24
	Concepta plc	100,511	61,875	3.08	2.77
	Coral Products plc	25,104	9,435	0.77	0.42
	Creo Medical Group plc	20,504	56,368	0.63	2.53
	CyanConnode Holdngs plc	204,219	3,440	6.25	0.15
	Diaceutics plc	10,314	20,318	0.32	0.91
	DP Poland plc	25,631	12,155	0.78	0.54
	ECSC Group plc	20,104	23,455	0.62	1.05
	Eden Research plc	41,837	54,113	1.28	2.43
	Entertainment AI plc	50,257	27,778	1.54	1.25
	Escape Hunt plc	31,006	1,942	0.95	0.09
	Falanx Group Ltd	45,031	11,745	1.38	0.53
	Feedback plc	20,104	16,667	0.62	0.75
	Fusion Antibodies plc	12,064	13,466	0.37	0.60
	Gfinity plc	60,311	56,189	1.85	2.52
	HML Holdings plc	58,340	53,750	1.79	2.41
	Hunters Property plc	50,253	52,000	1.54	2.33
	Immotion Group plc	95,486	26,481	2.92	1.19
	I-Nexus Global plc	30,153	1,519	0.92	0.07
	Inspired Energy plc	33,641	182,700	1.03	8.19
	Integumen plc	75,383	92,976	2.31	4.17
	Intelligent Ultrasound Group plc	95,482	86,639	2.92	3.88
	Keywords Studios plc	2,473	36,220	0.08	1.62
	Lightwaverf plc	30,158	2,118	0.92	0.09
	Location Sciences Group plc	72,643	11,636	2.22	0.52

	Security	Cost	Valuation	%	%
			30 June 2020	Cost	Valuation
	Loopup Group plc	15,078	20,325	0.46	0.91
	M.Winkworth plc	56,280	84,000	1.72	3.77
	Marechale Capital plc	75,752	6,375	2.32	0.29
	Microsaic Systems plc	142,261	20,534	4.36	0.92
	Modern Water plc	75,385	5,629	2.31	0.25
	N4 Pharma plc	40,204	18,760	1.23	0.84
	Open Orphan plc	155,184	71,079	4.75	3.19
	Pelatro plc	25,128	26,920	0.77	1.21
	PHSC plc	50,256	15,900	1.54	0.71
	Polarean Imaging plc	20,104	36,533	0.62	1.64
	Property Franchise Group plc	35,177	60,900	1.08	2.73
	Quixant plc	8,091	19,775	0.25	0.89
	Rosslyn Data Technologies plc	23,219	3,710	0.71	0.17
	Scancell Holdings plc	45,233	17,323	1.38	0.78
	Scholium Group plc	40,203	11,520	1.23	0.52
	Solid State plc	35,248	80,860	1.08	3.62
	SRT Marine Systems plc	18,093	32,150	0.55	1.44
	Sysgroup plc	45,232	26,475	1.38	1.19
	TP Group plc	160,062	51,085	4.90	2.29
	Tristel plc	1,651	16,800	0.05	0.75
	ULS Technology plc	18,091	22,410	0.55	1.00
	Yourgene Health plc	40,204	32,900	1.23	1.47
	Yu Group plc	20,504	9,372	0.63	0.42
		2,837,137	2,028,516	86.87	90.93
	Qualifying Investments
	Unlisted Investments
	Outsourcery plc	28,143	0	0.86	0.00
	Syqic plc	26,546	0	0.81	0.00
		54,689	0	1.67	0.00
	Total qualifying investments	2,891,826	2,028,516	88.54	90.93
	Non Qualifying Investments
	AIM Quoted
	Audioboom Group plc	1,163	180	0.04	0.01
	Be Heard Group plc	10,040	1,060	0.31	0.05
	Rotala plc	27,683	19,670	0.85	0.88
	Tristel plc	60	420	0.00	0.02
		38,946	21,330	1.19	0.96
	Security	Cost	Valuation	%	%
			30 June 2020	Cost	Valuation
	Non qualifying investments UK listed Investec plc	169,415	68,160	5.19	3.06
	Twentyfour Income Fund Ltd	9,852	8,580	0.30	0.38
		179,267	76,740	5.49	3.44
	Non qualifying investments Unlisted Investments
	China Food Co plc	31547	0	0.97	0.00
	Sorbic International plc	10,205	0	0.31	0.00
	Mar City plc	10,053	0	0.31	0.00
		51,805	0	1.59	0.00
	Total non-qualifying investments	270,018	98,070	8.27	4.40

New Century AIM VCT 2 plc

Notes to the Accounts

For the six months to 30 June 2020

This interim financial information and the unaudited interim accounts for the six months to 30 June 2020 from which it has been extracted, are the responsibility of the directors and were approved by them on 28 August 2020, 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 (March 2018) and with the Statement of Recommended Practice for Investment Companies re-issued by the Association of Investment Companies in November 2014 and updated in February 2018.

The unaudited interim accounts have been prepared using accounting policies that the Company applied in the accounts for the year ending 31 December 2019, 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 2020.

Listed, AIM or NEX 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 throughout the period under review.

Net Asset Value per share at 30 June 2020 was 48.3p (at 31 December 2019: 49.5p; 30 June 2019: 53.5p).

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 M D Barnard & Co. Limited (‘MDB’). Under the terms of the management agreement MDB are 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 £10k (the year ended 31 December 2019: £24k, the period ended 30 June 2018 £12k).

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	MD Barnard & Company Limited
	1st Floor 12 Hornsby Square Southfields Business Park
	Basildon Essex SS15 5AD
Auditor	UHY Hacker Young LLP
	Quadrant House
	4 Thomas More Square
	London E1W 1YW

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New Cent. Aim Vct 2