Oxford Tech 2 VCT Oxford Technology 2 Vct Plc : 3rd Quarter Results

 
TIDMOXH 
 
 
   Oxford Technology 2 VCT PLC 
 
   Update for the quarter ending 30 November 2017 
 
   Oxford Technology 2 VCT PLC presents its quarterly update for the period 
commencing 1 September 2017. 
 
   The Directors have recently reviewed the valuation of its entire 
portfolio and the unaudited net asset value per ordinary share was 40.8p 
as at 30 November 2017.  This is an increase of 1.9p from the previously 
published NAV per share for the period ending 31 August 2017. The total 
return to shareholders who remain on the register is now 53.8p per share, 
including previous dividends of 13.0p per share. 
 
   On 5 December 2017 - post the quarter end - we paid a further dividend 
of 8p per share, with a corresponding reduction in the above quoted NAV 
per share. 
 
   During the period under review, we concluded the Tender Offer, which was 
taken up by over 20% of our shareholders, and as a result, the Company 
cancelled 1,461,034 Ordinary Shares, reducing its total issued share 
capital from 6,792,923 to 5,331,889 Ordinary Shares. The 15% level of 
discount was set to ensure a fair balance between those shareholders who 
chose to participate in the Tender Offer, and those wishing to retain 
their shareholding in the Company. This resulted in a 1.4p per share 
increase in net asset value, which is in part to compensate remaining 
shareholders who are liable to incur a greater proportion of running 
costs per share going forward, given the fixed nature of these expenses. 
 
 
   At the end of November 2017, we made a GBP200k follow-on investment into 
Arecor, making it the largest holding in the Company's portfolio of 
eight remaining investees at 30 November 2017.  Arecor (www.arecor.com) 
is a potentially world class pharmaceutical research company based in 
Cambridge and has a very advanced diabetes drug formulation technology. 
This is the type of investment that Oxford Technology 2 VCT PLC has 
supported for the last 17 years and appears to be exactly the sort of 
VCT investment envisaged and encouraged by the government in the recent 
autumn budget. 
 
   This investment was the maximum permitted by the 15% VCT rule, and was 
only made possible by deferring the 8p per share dividend payment for as 
long as possible to enable this investment to proceed.  Following the 
sale of OC Robotics in June 2017, Oxford Technology 2 VCT PLC had six 
months to return funds to shareholders or make further investments of 
the money or it would lose VCT qualifying status.  We are pleased to 
confirm that with the return of nearly GBP900k to shareholders, and the 
investment in Arecor, we have completed our requirements under the VCT 
rules and remain VCT compliant. 
 
   The Board of Oxford Technology 2 VCT PLC welcomes the recent budget 
changes with respect to VCTs and the government's response to the 
Patient Capital Review. We welcome the extension of the six month VCT 
rule to twelve months as providing a greater level of future 
re-investment flexibility. We also appreciate the rationale for the 
increase of the level of qualifying investments to 80% (up from 70%) 
from April 2019. However, as a very small VCT, we believe this may give 
us some administrative problems - an unintended consequence of the 
proposed revised legislation. With all of our investments being unquoted 
and with no short term method of realisation, we require a cash reserve 
for administrative expenses. Corporate liquidity tests will therefore 
become much tighter once the new regime is in force. We will take up 
this issue with HMRC while the Finance Bill passes through its reviews. 
We hope that a simple amendment is possible. 
 
   The Directors are not aware of any other events or transactions that 
have taken place between 30 November 2017 and the publication of this 
statement that have had a material effect on the financial position of 
the Company. 
 
   19 December 2017 
 
   Enquiries: 
 
   Lucius Cary, Oxford Technology Management 
 
   01865 784466 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Oxford Technology 2 VCT plc via Globenewswire 
 
 
  http://www.oxfordtechnology.com 
 

(END) Dow Jones Newswires

December 19, 2017 02:00 ET (07:00 GMT)

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