Downing Planned Exit VCT 2 plc
Interim Management Statement
for the quarter ended 31 October 2011
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 period ended 31 October 2011. The statement also includes relevant financial information between the end of the period and the date of this statement.
Offer for Subscription
On 12 October 2011, the Company launched a joint Offer for Subscription with Downing Planned Exit VCT 3 plc seeking to raise up to £20 million by the creation of a new E Share class.
A General Meeting was held on 16 November 2011 seeking Shareholder approval for resolutions in connection with the new Offer for Subscription. All resolutions were approved.
Dividends paid or declared in the period
Interim dividends of 2.5p per 'C' Share and 2.5p per 'D' Share were paid on 25 November 2011. No other dividends were paid or declared during the 3 months to 31 October 2011 or in the period from 1 November 2011 to the date of this announcement.
Performance
'C' Share Pool
| 31 Oct 2011 | 31 Jul 2011 | 30 Apr 2011 | 31 Jan 2011 | |
| Pence | Pence | Pence | Pence | |
| NAV per 'C' Share | 88.7 | 88.6 | 93.0 | 92.8 |
| NAV per 'A' Share | 0.1 | 0.1 | 0.1 | 0.1 |
| Cumulative distributions per C Share | 10.0 | 10.0 | 5.0 | 5.0 |
| Total Return per 'C' Share and 'A' Share* | 98.8 | 98.7 | 98.1 | 97.9 |
'D' Share Pool
| 31 Oct 2011 | 31 Jul 2011 | 30 Apr 2011 | 31 Jan 2011 | |
| Pence | Pence | Pence | Pence | |
| NAV per 'D' Share | 87.6 | 91.5 | 94.4 | 93.5 |
| NAV per 'E' Share | 0.1 | 0.1 | 0.1 | 0.1 |
| Cumulative distributions per D Share | 5.0 | 5.0 | 2.5 | 2.5 |
| Total Return per 'D' Share and 'E' Share* | 92.7 | 96.6 | 97.0 | 96.1 |
* NAV plus cumulative dividends paid to date
Investment portfolio summary at 31 October 2011
Portfolio investments by value
'C' Share pool
| Cost | Valuation | Movement from 1 Aug 2011 to 31 Oct 2011 | |
| £'000 | £'000 | £'000 | |
| Qualifying venture capital investments | |||
| Bijou Wedding Venues Limited | 815 | 815 | - |
| Future Biogas (SF) Limited | 627 | 627 | - |
| Atlantic Dogstar Limited | 429 | 429 | - |
| Redmed Limited* | 438 | 438 | - |
| East Dulwich Tavern Limited | 344 | 307 | (37) |
| Westow House Limited | 304 | 304 | - |
| The 3D Pub Co Limited | 267 | 267 | - |
| Domestic Solar (ISIS) Limited* | 500 | 500 | - |
| Ecossol Limited | 250 | 250 | - |
| Quadrate Catering Limited* | 290 | 290 | - |
| Quadrate Spa Limited* | 258 | 258 | - |
| Mosaic Spa and Health Clubs Limited* | 125 | 125 | - |
| Chapel Street Food and Beverage Limited | 50 | 50 | - |
| Chapel Street Services Limited | 50 | 50 | - |
| 4,747 | 4,710 | (37) | |
| Non qualifying venture capital investments | |||
| Hoole Hall Country Club Holdings Ltd | 581 | 581 | - |
| The Thames Club Limited | 500 | 500 | - |
| Honeycombe Pubs VCT Limited | 175 | 175 | - |
| Vermont Developments Limited | 25 | 25 | - |
| Commercial Street Hotel Limited | 12 | 12 | - |
| Chapel Street Hotel Limited | 2 | 2 | - |
| 1,295 | 1,295 | - | |
| Total | 6,042 | 6,005 | (37) |
*partially non-qualifying investment
'D' Share pool
| Cost | Valuation | Movement from 1 Aug 2011 to 31 Oct 2011 | |
| £'000 | £'000 | £'000 | |
| Qualifying venture capital investments | |||
| Gingerbread Pre-School (UK) Limited* | 565 | 424 | (141) |
| Future Biogas (Reepham Road) Limited* | 748 | 748 | - |
| Alpha Schools Holdings Limited | 367 | 367 | - |
| Avon Solar Energy Limited | 250 | 250 | - |
| Green Electricity Generation Limited | 250 | 250 | - |
| Ecossol Limited | 250 | 250 | - |
| Westcountry Solar Solutions Limited | 250 | 250 | - |
| Quadrate Catering Limited* | 436 | 436 | - |
| Camandale Limited* | 531 | 136 | (262) |
| Domestic Solar (ISIS) Limited* | 400 | 400 | |
| Quadrate Spa Limited* | 386 | 386 | - |
| Slopingtactic Limited | 196 | 196 | - |
| Progressive Energies Limited | 170 | 170 | - |
| Ridgeway Pub Company Limited | 136 | 136 | - |
| Mosaic Spa and Health Clubs Limited* | 125 | 125 | - |
| 5,060 | 4,524 | (403) | |
| Non qualifying venture capital investments | |||
| Aminghurst Limited | 2,000 | 2,000 | - |
| Lullingstone Limited | 619 | 619 | - |
| Retallack Surfpods Limited | 250 | 250 | - |
| Kirkhouse Limited | 175 | 175 | - |
| Fenkle Street LLP | 146 | 146 | - |
| Kidspace Adventures Limited | 135 | 135 | - |
| Hoi Polloi Pub Co Limited | 70 | 70 | - |
| Westcountry Solar Solutions Limited | 47 | 47 | - |
| Commercial Street Hotel Limited | 18 | 18 | - |
| 3,460 | 3,460 | - | |
| Total | 8,520 | 7,984 | (403) |
*partially non-qualifying investment
Ordinary Share pool
| Cost | Valuation | Movement from 1 Aug 2011 to 31 Oct 2011 | |
| £'000 | £'000 | £'000 | |
| Non qualifying venture capital investments |
Tancred Trading Limited
5
5
-
Total
5
5
-
Investment additions
The Ordinary Share pool made no investment additions or disposals during the three months ended 31 October 2011 or in the period from 1 November 2011 to the date of this announcement.
The 'C' Share and 'D' Share pool additions and disposals are summarised as follows:
'C' Share investment additions during the 3 months ended 31 October 2011
| Cost | |
| £'000 | |
| Ecossol Limited | 250 |
| Bijou Wedding Venues Limited | 150 |
| Redmed Limited | 88 |
| 488 |
'D' Share investment additions during the 3 months ended 31 October 2011
| Cost | |
| £'000 | |
| Westcountry Solar Solutions Limited | 297 |
| Avon Solar Energy Limited | 250 |
| Ecossol Limited | 250 |
| Lullingstone Limited | 21 |
| Gingerbread Pre-School (UK) Limited | 14 |
| 832 |
| Cost | Market value at 1 August 2011 | Disposal proceeds | Gain against cost | Total realised gain | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| 'C' Share pool | |||||
| Bijou Wedding Venues Limited | 150 | 150 | 150 | - | - |
| Future Biogas (SF) Limited | 100 | 100 | 100 | - | - |
| 250 | 250 | 250 | - | - | |
| 'D' Share pool | |||||
| Looe Road Student Accommodation | 350 | 350 | 350 | - | - |
| Lullingstone Limited | 50 | 50 | 50 | - | - |
| Hoi Polloi Pub Co Limited | 10 | 10 | 10 | - | - |
| 410 | 410 | 410 | - | - | |
| 660 | 660 | 660 | - | - |
Between 1 November 2011 and the date of this announcement the following 'C' Share pool investments were made:
| Cost | |
| £'000 | |
| Commercial Street Hotel Limited | 80 |
| 80 |
Between 1 November 2011 and the date of this announcement the following 'D' Share pool investments were made:
| Cost | |
| £'000 | |
| Mosaic Spa and Healthclubs (Shrewsbury) Limited | 350 |
| Commercial Street Hotel Limited | 120 |
| Lullingstone Limited | 81 |
| Gingerbread Pre-School (UK) Limited | 9 |
| 560 |
Between 1 November 2011 and the date of this announcement the 'C' Share pool disposed of Sanguine Hospitality Limited, the cost being £2.
Between 1 November 2011 and the date of this announcement the following 'D' Share pool disposals were made:
| Cost | |
| £'000 | |
| Hoi Polloi Pub Co Limited | 10 |
| Lullingstone Limited | 700 |
| The Kirkhouse Limited | 175 |
| 885 |
Changes to share capital
Share capital movements in the period are summarised as follows:
| Ordinary Shares of 1p each | ||
| Shares | £'000 | |
| As at 1 August 2011 | 9,994,968 | 100 |
| Shares issued | - | - |
| Shares bought back and cancelled | - | - |
| As at 31 October 2011 | 9,994,968 | 100 |
| 'C 'Shares of 0.1p each | 'A' Shares of 0.1p each | |||
| Shares | £'000 | Shares | £'000 | |
| As at 1 August 2011 | 7,166,806 | 7 | 10,754,329 | 11 |
| Shares issued | - | - | - | - |
| Shares bought back and cancelled | - | - | - | - |
| As at 31 October 2011 | 7,166,806 | 7 | 10,754,329 | 11 |
| 'D 'Shares of 0.1p each | 'E' Shares of 0.1p each | |||
| Shares | £'000 | Shares | £'000 | |
| As at 1 August 2011 | 10,000,000 | 10 | 15,000,000 | 15 |
| Shares issued | - | - | - | - |
| Shares bought back and cancelled | - | - | - | - |
| As at 31 October 2011 | 10,000,000 | 10 | 15,000,000 | 15 |
No Shares have been bought back or issued since 1 November 2011 and the date of this announcement.
Material events
Other than described above, there were no material events during the period from 1 August 2011 to 31 October 2011 or in the period from 1 November 2011 to the date of this announcement.