Downing Planned Exit VCT 2 plc
(Now renamed Downing TWO VCT plc)
Interim Management Statement
for the quarter ended 31 October 2013
In accordance with Rule 4.3 of the Disclosure and Transparency Rules of the UK Listing Authority, Downing Planned Exit VCT 2 plc presents an Interim Management Statement for the quarter ended 31 October 2013. The statement also includes relevant financial information between the end of the period and the date of this statement.
Dividends paid or declared in the period
On 27 November 2013, the Company paid an interim dividend of 2.5p per 'C' Share, 2.5p per 'D' Share, 2.5p per 'F' Share and 5.0p per 'G' Share.
Performance
'C' Share Pool
| Unaudited 31 Oct 2013 | Unaudited 31 Jul 2013 | Unaudited 30 Apr 2013 | Audited 31 Jan 2013 | |
| Pence | Pence | Pence | Pence | |
| NAV per 'C' Share | 93.4 | 93.2 | 95.3 | 94.8 |
| NAV per 'A' Share | 0.1 | 0.1 | 0.1 | 0.1 |
| Cumulative distributions per 'C' Share | 20.0 | 20.0 | 17.5 | 17.5 |
| Total Return per 'C' Share and 'A' Share* | 113.5 | 113.3 | 112.9 | 112.4 |
'D' Share Pool
| Unaudited 31 Oct 2013 | Unaudited 31 Jul 2013 | Unaudited 30 Apr 2013 | Audited 31 Jan 2013 | |
| Pence | Pence | Pence | Pence | |
| NAV per 'D' Share | 79.9 | 78.9 | 80.0 | 79.7 |
| NAV per 'E' Share | 0.1 | 0.1 | 0.1 | 0.1 |
| Cumulative distributions per 'D' Share | 15.0 | 15.0 | 12.5 | 12.5 |
| Total Return per 'D' Share and 'E' Share* | 95.0 | 94.0 | 92.6 | 92.3 |
'F' Share Pool
| Unaudited 31 Oct 2013 | Unaudited 31 Jul 2013 | Unaudited 30 Apr 2013 | Audited 31 Jan 2013 | |
| Pence | Pence | Pence | Pence | |
| NAV per 'F' Share | 82.7 | 84.0 | 88.5 | 88.5 |
| Cumulative distributions per 'F' Share | 7.5 | 7.5 | 5.0 | 5.0 |
| Total Return per 'F' Share* | 90.2 | 91.5 | 93.5 | 93.5 |
'G' Share Pool
| Unaudited 31 Oct 2013 | Unaudited 31 Jul 2013 | Unaudited 30 Apr 2013 | Audited 31 Jan 2013 | |
| Pence | Pence | Pence | Pence | |
| NAV per 'G' Share | 100.2 | 100.1 | 99.9 | n/a |
| Cumulative distributions per 'G' Share | - | - | - | - |
| Total Return per 'G' Share* | 100.2 | 100.1 | 99.9 | n/a |
* NAV plus cumulative dividends paid to date
Investment portfolio summary at 31 October 2013
Portfolio investments by value
'C' Share pool
| Cost | Valuation | Movement from 1 Aug 2013 to 31 Oct 2013 | |
| £'000 | £'000 | £'000 | |
| Qualifying venture capital investments | |||
| Bijou Wedding Venues Limited | 815 | 901 | - |
| Atlantic Dogstar Limited | 438 | 728 | - |
| Future Biogas (SF) Limited | 627 | 661 | (42) |
| Domestic Solar Limited | 500 | 560 | - |
| Redmed Limited | 350 | 451 | - |
| Westow House Limited | 304 | 426 | 9 |
| East Dulwich Tavern Limited | 344 | 402 | 6 |
| Quadrate Spa Limited* | 363 | 395 | 32 |
| Quadrate Catering Limited | 330 | 354 | (5) |
| Ecossol Limited | 250 | 212 | - |
| The 3D Pub Co Limited | 267 | 187 | - |
| Mosaic Spa and Health Clubs Limited* | 125 | 118 | (8) |
| Chapel Street Food and Beverage Limited | 50 | 13 | (13) |
| Chapel Street Services Limited | 50 | 13 | (13) |
| 4,813 | 5,421 | (34) | |
| Non qualifying venture capital investments | |||
| Hoole Hall Country Club Holdings Ltd | 581 | 581 | - |
| The Thames Club Limited | 500 | 500 | - |
| Honeycombe Pubs VCT Limited | 188 | 65 | - |
| Vermont Developments Limited | 25 | 25 | - |
| Chapel Street Hotel Limited | 2 | 1 | - |
| 1,296 | 1,172 | - | |
| Total | 6,109 | 6,593 | (34) |
*partially qualifying investment
'D' Share pool
| Cost | Valuation | Movement from 1 Aug 2013 to 31 Oct 2013 | |
| £'000 | £'000 | £'000 | |
| Qualifying venture capital investments | |||
| Future Biogas (Reepham Road) Limited | 842 | 842 | - |
| Quadrate Spa Limited* | 496 | 539 | 43 |
| Quadrate Catering Limited | 441 | 475 | (6) |
| Mosaic Spa and Health Clubs Limited* | 475 | 441 | (34) |
| Domestic Solar Limited | 400 | 448 | - |
| Liverpool Nurseries (Holdings) Limited | 435 | 400 | - |
| Kidspace Adventures Holdings Limited | 375 | 409 | 17 |
| Alpha Schools Holdings Limited | 367 | 402 | 13 |
| Green Electricity Generation Limited | 250 | 288 | 19 |
| West Tower Property Limited | 250 | 250 | - |
| Westcountry Solar Solutions Limited | 250 | 250 | - |
| Avon Solar Energy Limited | 210 | 218 | - |
| Ecossol Limited | 250 | 212 | - |
| Slopingtactic Limited | 196 | 196 | - |
| Progressive Energies Limited | 170 | 170 | - |
| Ridgeway Pub Company Limited | 128 | 117 | - |
| Camandale Limited* | 516 | 57 | - |
| 6,051 | 5,714 | 52 | |
| Non qualifying venture capital investments | |||
| Aminghurst Limited | 1,650 | 1,650 | - |
| Fenkle Street LLP | 122 | 122 | - |
| Commercial Street Hotel Limited | 100 | 100 | - |
| Kilmarnock Monkey Bar Limited | 42 | 42 | - |
| 1,914 | 1,914 | - | |
| Total | 7,965 | 7,628 | 52 |
*partially qualifying investment
'F' Share pool
| Cost | Valuation | Movement from 1 Aug 2013 to 31 Oct 2013 | |
| £'000 | £'000 | £'000 | |
| Qualifying venture capital investments | |||
| Tor Solar PV Limited | 680 | 680 | - |
| Pearce and Saunders Limited* | 644 | 644 | - |
| Vulcan Renewables Limited | 560 | 560 | - |
| Redmed Limited* | 311 | 311 | - |
| Augusta Pub Company Limited | 290 | 290 | - |
| Fubar Stirling Limited | 268 | 268 | - |
| Kidspace Adventure Holdings Limited | 250 | 273 | 12 |
| City Falkirk Limited | 421 | 244 | - |
| Fresh Green Power Limited | 200 | 200 | - |
| Pabulum Pubs Limited | 200 | 200 | - |
| Green Energy Production UK Limited | 100 | 100 | - |
| Cheers Dumbarton Limited | 48 | 48 | - |
| Lochrise Limited | 13 | - | - |
| 3,985 | 3,818 | 12 | |
| Non qualifying venture capital investments | |||
| Aminghurst Limited | 1,110 | 1,110 | - |
| Pub People Limited | 500 | 500 | - |
| Baron House Developments LLP | 481 | 481 | - |
| Hoole Hall Hotel Limited | 265 | 265 | - |
| Retallack Limited | 163 | 163 | - |
| Southampton Hotel Developments Limited | 300 | - | (150) |
| Dominions House LLP | 107 | 107 | - |
| 3D Pub Co Limited | 55 | 55 | - |
| 2,981 | 2,681 | (150) | |
| Total | 6,966 | 6,499 | (138) |
*partially non-qualifying investment
'G' Share pool
| Cost | Valuation | Movement from 1 Aug 2013 to 31 Oct 2013 | |
| £'000 | £'000 | £'000 | |
| Qualifying venture capital investments | |||
| Pabulum Pubs Limited | 400 | 400 | - |
| Augusta Pub Company Limited* | 2,080 | 2,080 | - |
| Redmed Limited | 500 | 500 | - |
| 2,980 | 2,980 | - | |
| Non qualifying venture capital investments | |||
| Harrogate Street LLP | 1,400 | 1,400 | - |
| Baron House Developments LLP | 1,093 | 1,093 | - |
| Antelope Pub Limited | 300 | 420 | - |
| Dominions House LLP | 178 | 178 | - |
| Aminghurst Limited | 1,000 | 1,000 | - |
| Pub People Limited | 911 | 911 | - |
| Snow Hill Developments Limited | 400 | 400 | - |
| Pearce and Saunders Limited | 493 | 493 | - |
| 5,775 | 5,895 | - | |
| Total | 8,755 | 8,875 | - |
Investment additions and disposals
The 'C' Share, 'D' Share, 'F' Share and 'G' Share pool additions and disposals are summarised as follows:
'C' Share investment additions during the 3 months ended 31 October 2013
| Cost | |
| £'000 | |
| Honeycombe Pubs VCT Limited | 13 |
'F' Share investment additions during the 3 months ended 31 October 2013
| Cost | |
| £'000 | |
| Pearce and Saunders Limited | 644 |
| Augusta Pub Company Limited | 190 |
| 834 |
'G' Share investment additions during the 3 months ended 31 October 2013
| Cost | |
| £'000 | |
| Pearce and Saunders Limited | 493 |
| Augusta Pub Company Limited | 1,880 |
| 2,373 |
There were no additions made by the 'D' Share pools during the three months to 31 October 2013.
Investment disposals during the 3 months ended 31 October 2013
| Cost | Value at 1 Feb 2013 | Disposal proceeds | Gain against cost | Total realised gain in period | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| 'D' Share pool | |||||
| Ridgeway Pub Company Limited | 3 | 3 | 3 | - | - |
| 'F' Share pool | |||||
| Retallack Limited | 98 | 98 | 98 | - | - |
| 101 | 101 | 101 | - | - |
During the 3 months to 31 October 2013 no disposals were made by the 'C' Share or 'G' Share Pool.
Between 1 November 2013 and the date of this announcement no investments were made by either Share pool.
Investment disposals between 1 November 2013 and the date of this announcement:
| Cost | Value at 1 Feb 2013 | Disposal proceeds | Gain against cost | Total realised gain in period | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| 'C' Share pool | |||||
| Bijou Wedding Venues Limited | 815 | 901 | 925 | 110 | 24 |
| 'F' Share pool | |||||
| Retallack Surfpods Limited | 33 | 33 | 33 | - | - |
| 'G' Share pool | |||||
| Augusta Pub Company Limited | 300 | 300 | 300 | - | - |
| 1,148 | 1,234 | 1,258 | 110 | 24 |
Between 1 November 2013 and the date of this announcement no investment disposals were made by the 'D' Share pool.
Changes to share capital
Share capital movements in the period are summarised as follows:
| 'C' Shares of 0.1p each | 'A' Shares of 0.1p each | |||
| Shares | £'000 | Shares | £'000 | |
| As at 1 August 2013 | 7,126,194 | 7 | 10,724,029 | 11 |
| Shares issued | - | - | - | - |
| Shares bought back and cancelled | - | - | - | - |
| As at 31 October 2013 | 7,126,194 | 7 | 10,724,029 | 11 |
| 'D' Shares of 0.1p each | 'E' Shares of 0.1p each | |||
| Shares | £'000 | Shares | £'000 | |
| As at 1 August 2013 | 10,000,000 | 10 | 15,000,000 | 15 |
| Shares issued | - | - | - | - |
| Shares bought back and cancelled | - | - | (50,000) | - |
| As at 31 October 2013 | 10,000,000 | 10 | 14,950,000 | 15 |
| 'F' Shares of 0.1p each | ||
| Shares | £'000 | |
| As at 1 August 2013 | 10,822,154 | 11 |
| Shares issued | - | - |
| Shares bought back and cancelled | - | - |
| As at 31 October 2013 | 10,822,154 | 11 |
| 'G' Shares of 0.1p each | ||
| Shares | £'000 | |
| As at 1 August 2013 | 21,958,376 | 219 |
| Shares issued | 2,266,698 | 23 |
| Shares bought back and cancelled | (92,000) | (1) |
| As at 31 October 2013 | 24,133,074 | 241 |
On 6 November 2013, a further 1,303,922 'G' Shares were issued.
Material events
On 16 December 2013, the Company changed its name to Downing TWO VCT plc and its year end to 31 December.
On the same date, Michael Robinson resigned as a director of the Company.
Other than described above, there were no material events during the period from 1 August 2013 to 31 October 2013 or in the period from 1 November 2013 to the date of this announcement.