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RNS

Interim Management Statement to 30 June 2019

Released 10:59 08-Aug-2019

RNS Number : 4204I
Mobeus Income & Growth 2 VCT PLC
08 August 2019
 

Mobeus Income & Growth 2 VCT plc

(the "Company")

 

INTERIM MANAGEMENT STATEMENT

For the quarter ended 30 June 2019

 

Mobeus Income & Growth 2 VCT plc presents an Interim Management Statement for the quarter ended 30 June 2019.  The statement also includes relevant financial information between the end of the period and the date of this statement.

 

NET ASSET VALUE AND TOTAL RETURN PER SHARE

 

 

At 30 June 2019

At 31 March 2019

 

Net assets attributable to shareholders

 

£50,989,177

£48,729,957

 

 

Shares in issue  

48,493,925

48,925,130

Net asset value (NAV) per share

 

105.15p

99.60p

Cumulative dividends paid to date per share

83.00p

 

83.00p

Total return per share since inception (NAV basis)

188.15p

182.60p

 

INTERIM DIVIDEND

 

After taking into account the availability of surplus revenue, the realisation of capital gains, the adequacy of distributable reserves, cash flow forecasts and the need to maintain VCT qualifying ratios, the Board is pleased to declare an interim dividend of 15.00 pence per share in respect of the financial year ending 31 March 2020,  This dividend will be payable on 20 September 2019, to shareholders, whose names appear on the register on 23 August 2019.

 

SHARE BUYBACKS

 

On 20 June 2019, the Company purchased 295,000 of the Company's own ordinary shares at a price of 86.00 pence per share for cancellation.

 

On 28 June 2019, the Company purchased 136,205 of the Company's own ordinary shares at a price of 89.50 pence for cancellation.

 

After the period end, with effect from 1 August 2019, the Board changed its share buyback policy objective of maintaining the discount to Net Asset Value at which the Company's shares may trade in the market from approximately 10% or less, to approximately 5% or less.  In pursuing this policy, the Board's priority will remain to ensure that it is acting prudently and in the interests of the remaining shareholders of the Company.  Share buybacks will continue to be entirely at the Board's discretion and will be subject to the Company having sufficient funds available for such a purpose.  They will also continue to be subject to prevailing market conditions, the Listing Rules and any applicable law and regulatory restrictions at the relevant time.  Shares bought back in the market will ordinarily be cancelled.

 

INVESTMENT ACTIVITY

 

Investments during the period

On 13 May 2019, the Company invested £0.91 million into a new investee company, Arkk Consulting, which provides services and software to enable organisations to remain compliant with regulatory reporting requirements.

 

On 22 May 2019, the Company invested £0.55 million into a new investee company, Parsley Box, which is a UK direct to consumer supplier of home delivered ambient ready meals for the elderly.

 

Realisations during the period

On 10 May 2019, the Company sold its remaining investment in Plastic Surgeon to Polygon Group for £1.18 million.  Over the eleven years this investment was held, it generated proceeds of £2.19 million compared to an original investment cost £0.39 million, which is a multiple on cost of 5.6 x and an IRR of 20.5%.

 

On 6 June 2019, the Company realised part of its investment in Master Removers Group, generating proceeds receivable of £0.28 million, as part of a transaction which also increased the Company's equity interest from 3.4% to 5.2%.

 

On 28 June 2019, the Company sold its investment in ASL Technology for £3.68 million.  Over the eight and a half years this investment was held, it generated proceeds of £4.57 million compared to an original investment cost of £2.09 million, which is a multiple on cost of 2.2x and an IRR of 12.6%.

 

Transactions after the period end

On 10 July 2019, the Company made a follow-on investment of £0.36 million into MPB Group, a leading online marketplace for camera and video equipment.

 

On 2 August 2019, £0.17 million of contingent consideration was received as part of the sale of Entanet Holdings in August 2017.                                                                                                               

 

PLANNED FUNDRAISING

As announced recently, the Board intends to launch offers for subscription for new ordinary shares in the 2019/20 tax year.  The Board expects to convene a general meeting of shareholders to seek the necessary authority to allot shares and disapply pre-emption rights in connection with the fundraising and will send shareholders a circular in September confirming the amount to be raised and the purposes for which the funds will be used in advance of that meeting for their consideration.

 

If shareholder approval is obtained, the Board expects to be in a position to launch the offer for subscription in October, full details of which will be contained in the prospectus that will be sent to all registered shareholders.

 

 

Please note that all of the information above is unaudited.

 

Other than as described above, there were no material events during the period and to the date of this announcement.

 

 

For further information, please contact:

Rob Brittain, for Mobeus Equity Partners LLP, Company Secretary: 020 7024 7600                                                                                                                     


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Interim Management Statement to 30 June 2019 - RNS