Statement re Annual Results (5771E)

TIDMILV2

RNS Number : 5771E

Ingenious Live VCT 2 plc

08 April 2011

For immediate release 8 April 2011

INGENIOUS LIVE VCT 2 plc ("the Company")

STATEMENT OF ANNUAL RESULTS

For the year ended 31 December 2010

CHAIRMAN'S STATEMENT

I am delighted to present the Company's fourth Annual Report and Accounts covering the year to 31 December 2010 (the Reporting Period).

Overview of Activities

The Company has now completed its investment strategy and is fully invested under the VCT regulations and it will now continue to focus upon maximising the returns from these investments. The Company is pleased to announce that 2010 followed on from the successes of the previous year, indicating that the strategy of identifying investments which provide both annual profits and increased capital value continues to deliver commercial success.

I am pleased to report that the Company enjoyed another successful summer season with its three main festivals all delivering strong profits.

Creamfields sold out for the second year in a row with an increased attendance from 30,000 to 40,000 per day. The 80s Rewind Festival had an exceptionally strong second year and also saw record attendances in 2010. Underage and Field Day had a solid third year.

The 80s Rewind Tour performed below expectations, although the Company remains confident in terms of the overall strategy for the 80s Rewind brand.

Results

The Company made a profit on ordinary activities of GBP89,000 in the year to 31 December 2010 (2009: profit of GBP104,000).

The net asset value per share is 91.0 pence (31 December 2009: 97.1 pence) although this is after the deduction of the interim dividend paid during the year of 7.0 pence per share.

The Directors do not recommend the payment of a final dividend in respect of the Reporting Period.

Outlook

Now four years old, we believe that the Company has a strong portfolio of investments and has the potential to deliver significant upside from its equity interests. It continues to maintain downside protection through its minimum revenue arrangements.

Following the end of the financial year the Company declared an interim dividend of 7.0 pence per share for the year to 31 December 2011. The dividend was paid on 11 February 2011.

I would like to take this opportunity to thank all Shareholders for their continued support of the Company and I look forward to seeing those of you that are able to attend the AGM, scheduled for 18 May 2011.

Andrew Morris

Chairman

7 April 2011

MANAGER'S REVIEW

Investment Objective

The Company's main objective is to invest in a portfolio of live event companies engaged in the production of new and established events providing Shareholders with an attractive return. This strategy will aim to maximise the opportunities for making tax-free dividends to Shareholders from both the actual income received and capital profits on the sale of the Investee Companies or their assets.

The Company has been fully invested since December 2009 and the Manager continues to focus solely on the portfolio of investments in order to deliver strong annual profits and, crucially, target exceptional back-end values as the Company exits its investments after the qualifying five-year period.

Festivals

Creamfields

Investment amount: GBP850,000 (GBP1,700,000 across the Ingenious Live VCTs).

The success of Creamfields in 2009 was highlighted when the event won 'Best Festival' at the 2010 Music Week Awards, beating festivals including Glastonbury, Reading and Leeds. The 2010 event took place on the weekend of 28 and 29 August and delivered strong profitability for the Company as a result of the two-day dance music festival expanding in size from a 30,000 to a 40,000 per day capacity. Creamfields is now widely regarded as the leading dance festival in the UK.

We are confident that 2011 will bring further expansion in capacity as well as increased profitability over the bank holiday weekend in August 2011. Based in Cheshire, Creamfields has in previous years boasted an electrifying line up including the world famous David Guetta, Swedish House Mafia, DeadMau5, Calvin Harris, Tiesto, Eric Prydz and Laidback Luke.

Ticket sales for this year's event are already well ahead of last year and we are confident that the festival will sell out in advance for the third year running. This should generate further returns to the Company and additional information will be provided in the full year accounts to 31 December 2011.

80s Rewind Festival & 80s Rewind Tour

Investment amount (80s Rewind Festival): GBP346,348 (GBP692,696 across the Ingenious Live VCTs, and GBP545,196 across the Ingenious Entertainment VCTs).

Investment amount (80s Rewind Tour): GBP328,350 (GBP656,700 across the Ingenious Live VCTs).

In its second year, the 80s Rewind Festival held in August 2010 experienced an impressive increase in attendance figures across both days from 23,000 in 2009 to over 35,000 in 2010. Highlights included performances from Boy George, Tony Hadley, Go West and Rick Astley. As expected, the event proved profitable and as a result of its success and in order to raise more brand awareness across the Christmas period, the Ingenious Live VCTs also agreed to invest in the 80s Rewind Tour, which visited major cities across the UK. Even though this event performed below expectations, there is now international interest in licensing the brand for events outside the UK, in locations such as Holland, South Africa and Australia.

As a result of this strong performance, the Company remains confident that 80s Rewind will continue to perform strongly in the future. Tickets for the 2011 event are already on sale and have surpassed the target number of sales expected at this stage. The festival will be held between 19 and 21 August and will host an impressive line up including The Human League, Holly Johnson, Billy Ocean and Ali Campbell's UB40, along with many more.

Underage and Field Day Festivals

Investment amount: GBP500,000 (GBP1,000,000 across the Ingenious Live VCTs).

This year the event continued to move from strength to strength with 2010 boasting an impressive line-up featuring artists such as M.I.A., Tinie Tempah, Tinchy Stryder, Ellie Goulding and Crystal Castles. Following four successful years the event has firmly established its market niche as the summer music event for 13 to 17 year olds.

Meanwhile, Field Day, which is well established as the leading alternative music festival in London, featured exciting and dynamic performances from Phoenix, Moderat and The Fall. The 2010 events delivered a good profit for the Company. Field Day and Underage attracted over 28,000 people across the weekend.

We believe that the Underage and Field Day brands still have strong potential to be 'rolled out', both in the UK and overseas. This would assist in enhancing the capital value of the events, which is key to our investment strategy.

Exhibitions

Brand Events - Taste of Christmas and the Taste Festivals

Investment amount (Taste of Christmas): GBP902,489 (GBP1,804,978 across the Ingenious Live VCTs).

Taste of Christmas, the festive food and drink event returned for the third year to the ExCel Centre in London during December 2010 and attracted over 20,000 people. Despite the severe weather conditions, the exhibition was extremely well attended and as a result, the event became profitable for the first time in 2010. A high proportion of exhibitors and sponsors have already signed up for the next exhibition to be held in December 2011, which will once again inspire and educate consumers while offering them the very best in food shopping, fine wines and access to celebrity chefs.

Investment amount (Taste Festivals): GBP1,000,000 (GBP2,000,000 across the Ingenious Live VCTs).

TheTaste Festivals are established as successful outdoor food and wine events featuring a number of famous chefs including Gary Rhodes, Michel Roux Jr, Giorgio Locatelli and Theo Randall who serve up their signature dishes for the public to taste. The London event took place in Regent's Park between 17 and 20 June 2010, whilst the Edinburgh event was held in Inverleith Park between 28 and 29 May 2010.

Taste of London is the jewel in the Taste Festivals' crown, attracting 50,000 visitors to Regent's Park every year. Taste Festivals have set a new benchmark for food and drink events worldwide with 13 Taste Festivals now being hosted around the world including Dublin, Cape Town, Sydney and Dubai. The investment generated a small profit to the Company.

Taste of Londonreturns to Regent's Park between 16 and 19 June 2011.

O(2) Golf Live

Investment amount: GBP275,000 (GBP1,100,000 across the Ingenious Live VCTs and the Ingenious Entertainment VCTs).

O(2) Golf Live is a new three--day interactive golf event which was staged at Stoke Park in Buckinghamshire between 14 and 16 May 2010. O(2) Golf Live returns in 2011 and will be held at the prestigious London Golf Club in Kent from 20 to 22 May. In conjunction with our co-promoters Brand Events and IMG, the event will again be hosted by last year's Ryder Cup captain, Colin Montgomerie. The 2010 event was described by those who attended as the most exciting and dynamic event to be added to the golfing calendar.

IMG invested into the event as an equity partner giving Brand Events access to worldwide sporting talent. IMG Worldwide is a global sports, fashion and media business and is excited to be working with Brand Events, who together aim to roll the event out to further prestigious golf courses around the world. O(2) , Jaguar and the European Tour were amongst the partners for the initial UK launch and have all agreed to continue to sponsor and support the event in 2011.