Interim Management Statement

 
TIDMFAMT 
 
Framlington AIM VCT 2 PLC 
 
Second interim management statement for the year ending 29 February 2012 
 
To the members of Framlington AIM VCT 2 PLC 
 
This is the Company's second interim management statement for the year ending 
29 February 2012 and covers the period to 30 November 2011. This statement has 
been produced to comply with the requirements of the Disclosure and 
Transparency Rules issued by the UKLA and should not be relied upon by any 
other party or for any other purpose. 
 
Investment objective 
 
The Company's investment objective is to achieve long term capital growth 
primarily through investment in a diversified portfolio of qualifying companies 
quoted on AIM. It is expected that realised capital gains, along with income, 
will be returned to the shareholders, at the discretion of the Directors, 
through the payment of dividends. The Investment Manager may also invest the 
assets of the Company in companies traded on the PLUS Market trading facility 
and in unquoted stocks, although this is not currently expected to be 
significant. 
 
The majority of the Company's investments will be in newly issued shares, as it 
is a VCT requirement that 70% of the funds raised pursuant to the offer be 
invested in new issues of shares that qualify as qualifying holdings within 
three years of the share issue. The Company had to meet this requirement by 28 
February 2009 and now has to comply on an ongoing basis. 
 
Qualifying holdings are defined as holdings of shares or securities in unquoted 
(including AIM and PLUS Market companies) whose purpose is to carry on a 
qualifying trade wholly or mainly in the UK. Sectors that are excluded include 
property, financial services and commodities. Companies must not be controlled 
by the VCT or any other company. At the end of three years, up to 30% of a 
VCT's assets can be invested in non-qualifying investments such as bank 
deposits, gilts and fixed interest stock. At least 30% of the VCT's qualifying 
holdings must be ordinary shares with no preferential rights. The remainder can 
be in loans of at least five years' duration, or preference shares. 
 
The size of companies in which the Company may invest is limited by the VCT 
rules. Qualifying holdings, as defined above, must have gross assets of GBP15 
million or less immediately prior to investment and GBP16 million or less 
immediately after investment. Although the companies in which the Company 
invests are small, the risk that this entails is mitigated by the 
diversification of holdings which results from the requirement to invest 70% of 
funds raised in qualifying holdings. 
 
The maximum exposure to any one stock or group, other than another VCT, is 15% 
of the Company's investments. 
 
The Company's borrowings must be restricted to an amount which is less than 10% 
of the Company's issued share capital and reserves. 
 
Capital structure 
 
The Company has one class of share capital: ordinary shares of 10 pence each. 
The Company's issued share capital at the date of this announcement is 
28,986,299 ordinary shares of 10 pence each. 
 
Material events and transactions 
 
During the three months to 30 November 2011, a further GBP475,000 was invested, 
adding to existing holdings in a number of AIM quoted qualifying companies 
which were raising additional capital to fund acquisitions or for working 
capital purposes. These included 3D Diagnostic Imaging, Byotrol, Dillistone 
Group, Photonstar LED, Porta Communications and Wheelsure Holdings. GBP410,000 
was raised through the disposal of investments, mainly as a result of profit 
taking in Craneware, which has been the Company's largest holding. 
 
The Chairman stated in the half yearly report and accounts that the Board was 
carrying out a review of its options in relation to the Company's operations, 
with a view to improving the overall future prospects for shareholders. This 
review has been progressing and the Board intends to make an announcement of 
the outcome in the near future. 
 
NAV and total assets at 30 November 2011 
 
                                  30 November 2011  31 August 2011  Decrease 
 
                                                                    % 
 
Net asset value per share         41.32p            43.43p          4.9 
(investments at bid value, 
including current year revenue) 
 
Net asset value per share         65.32p            67.43p          3.1 
including cumulative dividends 
paid to date 
 
Net assets                        GBP12.0 million     GBP12.6 million   4.8 
 
Share price (mid market)          31.00p            31.00p          - 
 
At 30 November 2011, 95 % of the portfolio was invested in qualifying holdings. 
 
The net asset value at 13 January 2012 was 38.93 pence per share. 
 
Ten largest holdings at 30 November 2011 
 
                                                Value at    % of net 
                                                30.11.11    assets 
 
                                                GBP000s       at 30.11.11 
 
Craneware PLC                                         1,112         9.3 
 
London Italian Restaurants 6.5% 31/12/13                875         7.3 
 
Locale Enterprises Ltd                                  665         5.5 
 
EKF Diagnostics Hdgs PLC                                560         4.7 
 
Brulines Group PLC                                      522         4.4 
 
AFC Energy PLC                                          461         3.8 
 
Angle PLC                                               402         3.4 
 
Instem Life Science PLC                                 380         3.2 
 
Vertu Motors                                            347         2.9 
 
Manroy PLC                                              342         2.9 
 
Company information 
 
Year end: 28 February 
 
Results: Final results to 29 February 2012 announced June 2012 
 
Interim results to 31 August 2012 announced October 2012 
 
Dividend: Dividend payable August 2012 
 
By order of the board 
 
AXA Investment Managers UK Limited 
 
Company Secretary to Framlington AIM VCT 2 PLC 
 
17 January 2012 
 
Further information on the Company, including the annual report and accounts 
for the year ended 28 February 2011 and the interim report and accounts for the 
six months ended 31 August 2011, is available from the Manager's website 
www.axaframlington.com. 
 
Neither the contents of the Company's website nor the contents of any website 
accessible from hyperlinks on the Company's website (or any other website) is 
incorporated into, or forms part of, this announcement. 
 
 
 
END