Mobeus Income & Growth 2 VCT PLC Interim Management Statement (8035Y)

TIDMMIG

RNS Number : 8035Y

Mobeus Income & Growth 2 VCT PLC

11 September 2015

Mobeus Income & Growth 2 VCT plc

(the "Company")

INTERIM MANAGEMENT STATEMENT

For the quarter ended 30 June 2015

Mobeus Income & Growth 2 VCT plc presents an Interim Management Statement for the quarter ended 30 June 2015. 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     At 31 March 
                                          2015            2015 
 Net assets attributable to      GBP43,204,073   GBP42,102,817 
  shareholders 
 Shares in issue                    36,375,759      36,468,632 
 Net asset value (NAV) per 
  share                                118.77p         115.45p 
 Cumulative dividends paid 
  to date per share                     42.00p          42.00p 
 Total return per share since 
  inception (NAV basis)                160.77p         157.45p 
 

DIVIDENDS

No dividends were paid during the quarter.

SHARE BUY-BACKS

On 26 June 2015, 92,873 Ordinary Shares of 1p each were repurchased at 103.50 pence per share.

INVESTMENT ACTIVITY

New Investments

These were a new investment in Jablite Holdings Limited of GBP0.84 million, a manufacturer of Expanded Polystyrene ("EPS") products and a follow-on investment in Creative Graphics International of GBP0.27 million.

In July, following the period end, the Company invested a further GBP0.72 million into Tushingham Sails Limited, a leading supplier of stand up paddleboards.

Realisations

There were no realisations during the period.

After the period end, GBP0.14 million was received from Newquay Helicopters as an interim distribution resulting from the members voluntary liquidation of the company.

Loan Stock Repayments

A total of GBP0.52 million was received in loan stock repayments and premiums during the quarter to 30 June 2015, from Jablite, Aussie Man, Leap NewCo (Ward Thomas), Fullfield (Motorclean), and Tessella.

After the period end, a further GBP0.39 million in loan stock repayments and premiums was received.

REGULATORY DEVELOPMENTS

The Budget in March 2015 announced further amendments to VCT legislation, specifically aimed at enabling the scheme to gain continued approval under the European Commission's State Aid guidelines.

The Summer Budget 2015 has proposed further new rules preventing VCTs acquiring existing shares or the principal trade assets of businesses. It is expected that business acquisitions using VCT finance, such as MBOs, will no longer be permitted. The other key aspects of the proposals are:

-- Introducing an 'age of company' restriction of a maximum of 7 years at the time of first state aid investment; and

   --     Introducing a state aid lifetime investment limit of GBP12 million. 

The proposals remain subject to approval by the European Commission so the date when these proposals become legislation is uncertain, but currently the new rules are expected to apply to investments using VCT finance from October 2015, the expected time of Royal Assent. The precise details and implications for the VCT's future investment programme will only be fully clear once the legislation is enacted. However, in the longer term, the Investment Adviser anticipates a reduction in the current types of transaction and size of businesses that the VCT could consider as potential investments, together with changes in the Company's investment strategy. In the meantime, the Investment Adviser, along with others in the industry, is in discussions with HM Treasury about the proposed new rules.

ANNUAL GENERAL MEETING

The Company's Annual General Meeting was held at 12 noon on Thursday 10 September 2015 at 33 St James's Square, London SW1Y 4JS. All resolutions were passed at the meeting.

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:

Jonathan McGuire, for Mobeus Equity Partners LLP, Company Secretary: 020 7024 7600

This information is provided by RNS

The company news service from the London Stock Exchange

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September 11, 2015 05:00 ET (09:00 GMT)