Share Name Share Symbol Market Type Share ISIN Share Description
Oxf.Tech.2 Vct LSE:OXH London Ordinary Share GB0003105052 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 30.00p 25.00p 35.00p - - - 0 06:30:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 0.0 -0.0 -0.4 - 1.47

Oxford Tech 2 VCT Oxford Technology 2 Vct Plc : Annual Financial Report

10/05/2017 5:01pm

UK Regulatory (RNS & others)


 
TIDMOXH 
 
   10 May 2017 
 
   Oxford Technology 2 VCT plc ("the Company" or "OT2") 
 
   Annual Report and Accounts for the year ended 28 February 2017 
 
   The Directors are pleased to announce the audited results of the Company 
for the year ended 28 February 2017 and a copy of the Annual Report and 
Accounts ("Accounts") will be made available to Shareholders shortly. 
Set out below are extracts of the audited Accounts. References to page 
numbers below are to those Accounts. 
 
   The AGM will be held at The Magdalen Centre, Oxford Science Park, Oxford 
OX4 4GA on Wednesday 5 July 2017, at 11am. 
 
   A copy of the Annual Report and Accounts will be available from the 
registered office of the Company at The Magdalen Centre, Oxford Science 
Park, Oxford OX4 4GA, as well as on the Company's website: 
www.oxfordtechnology.com 
 
   Financial Headlines 
 
 
 
 
                                                 Year Ended         Year Ended 
                                           28 February 2017   29 February 2016 
 
  Net Assets at Year End                           GBP2.53m           GBP1.91m 
Net Asset Value per Share                             37.2p              28.2p 
 Dividend per Share paid in Year                          -               2.5p 
Cumulative Dividend per Share                         13.0p              13.0p 
 
NAV + Cumulative Dividend per Share                   50.2p              41.2p 
paid from Incorporation 
 
Share Price at Year End                               20.0p              20.0p 
 
Earnings Per Share 
 (Basic & Diluted)                                     9.0p               2.9p 
 
 
 
   Chairman's Statement 
 
   I am pleased to present my annual report for the year to 28 February 
2017 to fellow shareholders. 
 
   Overview 
 
   Last year, it was pleasing to report that there had been some positive 
progress within our portfolio with the sale of Telegesis, at a multiple 
of 45 times our investment, which enabled the payment of the first 
dividend since 2009.  This year, the largest investment within our 
portfolio, OC Robotics (OCR), representing 60% of our net assets, is 
undergoing due diligence, which could result in the business being 
acquired by a large multi-national company. The business has continued 
to develop, following further commercial and grant-funded activities. If 
the sale completes, a further return of funds to shareholders will be 
possible. 
 
   We still have shareholdings in 8 other unlisted companies, and were able 
to provide follow-on funding to three of these during the year: Arecor 
(GBP75k), Immbio (GBP50k) and Orthogem (GBP25k).  Plasma Antennas also 
raised funds, but OT2 was unable to invest due to restrictions imposed 
by VCT legislation. 
 
   Portfolio Review 
 
   The net asset value per share on 28 February 2017 was 37.2p compared to 
28.2p on 29 February 2016. The earnings per share in the year to 28 
February 2017 were 9.0p. Thus at 28 February 2017, the Total Return is 
50.2p. The 32% increase in net asset value has been primarily driven by 
the revaluation of OCR. 
 
   The Company's 9 remaining portfolio company holdings are at different 
stages of development.  The Directors continue to monitor all companies, 
looking for the optimum time to realise your Company's investment in 
them. 
 
   OT2 continues to invest in support of its portfolio as the companies 
develop.  It has not been affected by the recent changes in VCT 
legislation, given the types of investments OT2 makes, and the fact that 
all are existing investees who have previously received financing from 
OT2. 
 
   GBP75k was invested in Arecor to support its transition from a 
research-led company to a product-led company including an initiative 
with the US Juvenile Diabetes Research Foundation for the delivery of 
ultra-concentrated rapid acting insulin. In February 2017, Arecor was 
awarded a GBP1m grant from Innovate UK towards clinical trials. 
 
   GBP50k was invested into ImmBio to support the completion of their 
First-in-Human study of their novel vaccine, PnuBioVax(TM), against the 
bacterial pathogen Streptococcus pneumoniae.  PnuBioVax was found to be 
safe and well tolerated, and capable of producing antibody responses 
against key S. pneumoniae antigens broadly conserved across strains. 
The company is now in detailed discussions with larger organisations 
regarding commercialisation. 
 
   GBP25k was invested in Orthogem to enable it to register its new product 
TriPore Putty.  The synthetic bone market has moved significantly 
towards putties, and the commercial launch of their new product is 
expected to have a significant impact on sales. 
 
   Photocopier software company, Select Technology, remains the second 
largest holding in the Company's portfolio - it has had a profitable and 
cash generative year, paying another dividend in January and further 
dividends are expected in future. This dividend helped cover just over 
40% of OT2's costs for the year.  The company has continued to grow, 
though profits have been slightly impacted as the company executes a 
planned transition to reduce dependency on one particular supplier, 
which will have the effect of increasing business resilience and should 
result in faster growth.  However, the lower reported profits have 
caused a reduction in our valuation. 
 
   Plasma Antennas continues to be in discussion with several large players 
particularly around 4G and 5G telecommunications. 
 
   Further details on these investments are contained within the Investment 
Portfolio Review. The full list of the Company's investments is shown on 
page 13, with details of all investees on our website. 
 
   Dividends/Return of Capital 
 
   The ongoing strategy is to seek to crystallise value from the portfolio 
and distribute cash to shareholders when the opportunity arises. 
 
   The Board is considering the best way to return funds to shareholders 
should the sale of OCR complete. The VCT's shares currently have limited 
liquidity, and as a result trade at a significant discount. This acts as 
a major deterrent to those wishing to sell their shares, and the Board 
is sympathetic that many of its shareholders were subscribers in the 
initial offer in 2000 and may be keen to be able to dispose of some of 
their investment. Should the sale of OCR complete, significant funds 
would be available for distribution, and this could provide a one-off 
opportunity for shareholders to realise part of their investment at much 
closer to net asset value than is currently possible. However, the Board 
needs to consider the interests of all its shareholders, and a number 
may be deterred from selling any of their shares as this would have 
implications for previously deferred capital gains, and a simple 
dividend would suit them better. 
 
   To this end, the Board is working on a plan that would enable all 
shareholders to sell a proportion of their holding back to the Company 
(although at a discount to NAV). A dividend would then be paid to all 
remaining shareholders. 
 
   Much of any distribution would need to be returned to shareholders 
within 6 months of any such sale to keep within the VCT rules, and 
furthermore the Board is keen to keep the costs of any such operation to 
a minimum. For this reason, shareholders will note the Board are asking 
for permission to enable the Company to buy back up to 30% of its share 
capital. Recent buy back resolutions in OT2 have not been supported by 
enough of those voting to approve the resolution. The Directors 
understand that this was because it was feared that such a buy back 
could be to the benefit of some shareholders over others. It should be 
noted that should the Directors choose to use the powers granted by the 
relevant AGM resolutions, the same terms will be offered to ALL 
shareholders, and each shareholder will have the choice of whether they 
wish to tender any of their shares or not. Indeed the ability to buy 
back shares under the powers allotted by this resolution have been 
specifically worded so that they can only be used via a tender offer to 
all shareholders. 
 
   It should be stressed that there can be no certainty that the sale of 
OCR will complete (and on the terms currently envisaged), and the above 
proposal could only be offered if it does. It will be at the Directors' 
sole discretion as to whether a tender will be proposed and its precise 
terms, but if it is, it will follow the parameters as set out in the 
resolution. Each shareholder will have the opportunity to decide whether 
to tender any shares at that time and how many should such an offer be 
made. But the Directors hope that shareholders will support the 
resolutions which will allow everyone who wishes to sell some of their 
holdings to do so, as well as enabling all remaining shareholders to 
receive a dividend. 
 
   Continued Improvements to Cost Effectiveness and VCT Market Changes. 
 
   Following the reduction of fees implemented at the start of the previous 
financial year, your Board continues to look at methods of reducing 
running costs as well as improving liquidity for shareholders who wish 
to realise their holdings. Whilst the exit from OC Robotics will provide 
a welcome return to shareholders, it will leave the VCT with a much 
reduced - yet more diversified - portfolio. 
 
   Shareholders may be aware of some significant changes to the VCT market 
in recent years.  Changes to pension tax reliefs are driving investors 
to look for alternatives - coupled with a reduced supply of tax 
efficient investment opportunities, this has resulted in exceptional 
demand from investors wishing to subscribe for VCTs.  Changes to VCT 
legislation have been made to target more VCT money towards the types of 
earlier stage companies that OT2 has invested in. This may present an 
opportunity for your VCT. 
 
   Several options are being explored, and your Board is hoping to bring 
forward proposals later in the year which may increase options for 
shareholders. 
 
   Audit Tender 
 
   New legislation has been introduced in the UK on audit firm rotation, 
resulting from the new European Audit Regulation Directive, making it 
mandatory for listed companies to undergo a tender process for the audit 
of their company at least every ten years. An audit firm can, however, 
be appointed for up to twenty years provided a public tender process has 
been carried out after ten years. The Company has therefore recently 
conducted an audit tender process. The Board, on the recommendation of 
the Audit Committee, has decided to recommend the re-appointment of 
James Cowper Kreston as the Company's external auditor. For further 
information on the audit tender, please see the Audit Committee section 
of the Corporate Governance Statement on pages 27 and 28 of this Annual 
Report. 
 
   AGM 
 
   Shareholders should note that the AGM for the Company will be held on 
Wednesday 5 July 2017 at the Magdalen Centre, Oxford Science Park, 
starting at 11am and will include presentations by Oxford Technology 
Management and some of the companies that the Oxford Technology VCTs 
have invested in. 
 
   A formal Notice of the AGM has been enclosed with these Financial 
Statements together with a Form of Proxy for those not attending. We 
appreciate the input of our shareholders and look forward to welcoming 
as many of you as possible on the day. 
 
   Outlook 
 
   The year under review was dominated by two major political events, the 
UK's vote to leave the European Union and the election of Donald Trump 
to the office of US President. In the case of the EU referendum, the 
leave result triggered a significant fall in the value of sterling, and 
it has so far remained weak. This in turn led to the increase in 
valuation of UK larger companies, which have a bias towards overseas 
earnings. 
 
   The more immediate impact on our own UK smaller investees has been to 
improve those with overseas revenues in sterling terms while increasing 
the costs for those with foreign activities or imports. These impacts 
are not yet material. The longer term UK/EU trading issues will take 
time to emerge but clearly one impact is that our investee company 
sterling valuations now look more attractive to overseas buyers. 
 
   Post referendum the new Theresa May government has retained the VCT 
model although we anticipate it will continue to be kept under review to 
ensure that it delivers value to the taxpayer. The Oxford Technology 
VCTs have operated and continue to operate very much in the spirit of 
the VCT legislation by investing in and subsequently supporting early 
stage technology companies. Unfortunately the current VCT rules 
sometimes limit the amount of follow on investment that we are able to 
make. 
 
   The outlook has not changed from a year ago. Your Board monitors each 
investee, with clear views as to the value milestones which will allow 
investments to be realised.  In February 2016 we returned funds to 
shareholders after a very successful exit from Telegesis.  We are 
hopeful of a similar event with OC Robotics in the first half of this 
financial year (although can make no guarantee that the sale will 
complete).  We continue to work to maximise value for shareholders and 
will, as per our stated strategy, seek to crystallise this value and 
return value to shareholders when liquidity allows. 
 
   Richard Roth 
 
   Chairman 
 
   10 May 2017 
 
   Investment Portfolio Review 
 
   OT2 was formed in 2000 and invested in a total of 30 companies, all 
start-up or early stage technology companies.  Some of these companies 
failed with the loss of the investment.  Some have succeeded and have 
been sold.  The table on page 13 shows the companies remaining in the 
portfolio.  A more detailed analysis is given of the top five 
investments. 
 
   OC Robotics, the Company's largest investment, continues to promote and 
develop its snake arm robot technology.  There are many potential 
applications for such equipment, with the company benefitting from 
significant grants to develop its capabilities in a number of industries, 
including nuclear decommissioning, aircraft inspections and oil and gas 
extraction and storage. The company is currently considering an offer 
from a large multinational company for an outright sale. 
 
   Select Technology specialises in software for photocopiers - now known 
as MFDs or Multi-Function Devices.  Over the last decade Select 
Technology has built up a global network of distributors and dealers 
through which it sells both products which it has developed itself and 
products which have been produced by others.  These products now include 
PaperCut, Kpax, Foldr and Drivve Image. 
 
   Select Technology has made steady financial progress.  Sales have 
increased from GBP210k in the year to July 2010 to GBP5.2m in the year 
to July 2016.  Select Technology is profitable and cash generative and 
is likely to be in a position to pay regular dividends in future. It is 
a modern company in the sense that it has employees all over the world, 
and usually only one person in the office in Basingstoke: everyone 
usually works remotely. 
 
   Plasma Antennas has developed a range of next generation smart 
selectable antenna technologies and has a prototype of a true plasma 
antenna, which it is hoped may be at the centre of tomorrow's 
communications systems.  At the time of writing Plasma Antennas is in 
discussions with three large electronics companies none of them in the 
UK.  Two have visited Plasma Antennas, based in Winchester.  It is hoped 
that a partnership deal can be concluded with one or more of them or 
with another. 
 
   Arecor in which OT2 is a small shareholder is making encouraging 
progress.  In particular it is developing its own products for the 
better treatment of diabetes.  In February 2017, Arecor won a grant of 
just over GBP1m to help with this programme.  Arecor has signed a GBP45m 
license deal regarding insulin glargine with India's largest privately 
held pharmaceutical company, Cadila.  Details of the deal have not been 
disclosed. 
 
   Orthogem has been selling synthetic bone graft for many years in granule 
form and has a network of distributors around the world.  This year it 
has raised money to enable it to launch the next generation material: a 
putty material that will be more convenient for surgeons to use. OT2 
contributed to the fund raising.  Sales of the granules have fluctuated 
throughout the year, but use has started in India which is a significant 
new market for the company. 
 
   Dividends paid to shareholders to date are 13p per share. 
 
   New Investments in the year 
 
   There were three follow on investments during the year of GBP75,000 into 
Arecor, GBP25,000 into Orthogem and GBP50,000 into ImmBio.  All new 
investments have complied with both EU State Aid rules and HMRC VCT 
rules. 
 
   Disposals during the year 
 
   A payment of GBP435 was received from the disposal of Duncan Hynd 
Associates Ltd during the year. 
 
   Valuation Methodology 
 
   Quoted and unquoted investments are valued in accordance with current 
industry guidelines that are compliant with International Private Equity 
and Venture Capital Valuation Guidelines and current financial reporting 
standards. 
 
   VCT Compliance 
 
   Compliance with the main VCT regulations as at 28 February 2017 and for 
the year then ended is summarised as follows: 
 
 
 
 
Type of Investment 
 By HMRC Valuation Rules     Actual          Target 
                                     Minimum obligation of: 
VCT Qualifying Investments    80%              70% 
                                        Maximum allowed: 
Non-Qualifying Investments    20%              30% 
Total                          100%                    100% 
 
 
   At least 10% of each investment in a qualifying company is held in 
'eligible shares' - Complied. 
 
   No more than 15% of the income from shares and securities is retained - 
Complied. 
 
   No investment constitutes more than 15% of the Company's portfolio (by 
value at time of investment) - Complied. 
 
   No investment made by the VCT has caused the company to receive more 
than GBP5m of State Aid investment in the year - Complied 
 
   Table of Investments held by Company at 28 February 2017 
 
 
 
 
 
 
 
 
                                                                                                            Change 
                                                                                                              in 
                                                                                                             value                     % equity 
                                                                                                            for the                    held by 
                                                               Net cost of      Carrying value at 28/02/17   year    % equity held by    all     % Net 
Company      Description      Date of initial investment    investment GBP'000            GBP'000           GBP'000         OT2         OTVCTs   Assets 
             Snake arm 
OC Robotics   robots                   Jan 2001                            311                       1,535      675              35.8      35.8    60.7 
Select       Photocopier 
 Technology   Interfaces               Nov 2001                            132                         341     (39)               7.4      58.6    13.4 
             Solid state 
Plasma        directional 
 Antennas     antennas                 Nov 2001                            188                         129     (10)               6.7      45.3     5.1 
             Protein 
Arecor        stabilization            Jul 2007                             89                         121       83               1.2      11.4     4.8 
             Bone graft 
Orthogem      material                 Dec 2000                            342                         100       25               7.7      29.5     4.0 
ImmBio       Novel vaccines            Dec 2000                            225                          63       50               1.2      13.9     2.5 
             Active wound 
              healing 
Insense       dressings                Jun 2001                            204                          52       14               2.0       6.8     2.1 
             Data 
              transformation 
Inaplex       software                 Sep 2001                            138                          37        0              21.5      34.8     1.4 
             Rechargeable 
Oxis Energy   batteries                Jan 2000                            540                          27        5               0.2       0.5     1.1 
Totals                                                                   2,170                       2,405      803 
Other Net Assets                                                                                       123                                          4.9 
NET ASSETS                                                                                           2,528                                          100 
 
 
   Number of shares in issue:  6,792,923 
 
   Net Asset Value per share at 28 February 2017: 37.2 p 
 
   Dividends paid to date per share: 13p per share 
 
   This table shows the current portfolio holdings.  The investments in 
Acumen, Assertion, Astron Clinica, Ciphergrid, CHR Design, Coraltech, 
Im-Pak, Freehand Surgical, Inscentinel, Jetmask, M3 Networks, OST, 
Promic and SVA have been written off.   The investments in Hardide, 
Commerce Decisions, MET, Telegesis, Equitalk and Duncan Hynd Associates 
have been sold. 
 
   Directors' Report 
 
   The Directors present their report together with financial statements 
for the year ended 28 February 2017. 
 
   The Directors consider that the Annual Report and Financial Statements, 
taken as a whole is fair, balanced and understandable and provides the 
information necessary for shareholders to assess the Company's 
performance, business model and strategy. 
 
   This report has been prepared by the Directors in accordance with the 
requirements of s415 of the Companies Act 2006.  The Company's 
independent auditor is required by law to report on whether the 
information given in the Directors' Report is consistent with the 
financial statements. 
 
   Principal Activity 
 
   The Company commenced business in 2000.  The Company invests in start-up 
and early stage technology companies in general located within 60 miles 
of Oxford.  The Company has maintained its approved status as a Venture 
Capital Trust by HMRC. 
 
   Directors 
 
   The Directors of the Company are required to notify their interests 
under Disclosure and Transparency Rule 3.12R.  The present and previous 
membership of the Board and their beneficial interests in the ordinary 
shares of the company at 28 February 2017 and at 29 February 2016 are 
set out below: 
 
   Name                                                      2017                             2016 
 
 
   R Roth                                                     62,902 
62,902 
 
   R Goodfellow                                           9,700 
19,700 
 
   D Livesley                                                Nil 
Nil 
 
   A Starling                                                 Nil 
Nil 
 
   Under the Company's Articles of Association one third of the Directors 
are required to retire by rotation each year.  Richard Roth and Alex 
Starling will be nominated for re-appointment at the forthcoming AGM. 
The Board believes that both non-executive Directors continue to provide 
a valuable contribution to the Company and remain committed to their 
roles.  The Board recommends that Shareholders support the resolutions 
to re-elect Richard Roth and Alex Starling at the forthcoming AGM. 
 
   The Board is cognisant of shareholders' preference for Directors not to 
sit on the boards of too many larger companies ("overboarding"). 
Shareholders will be aware that in July 2015, the Company, along with 
the other VCTs that were managed by Oxford Technology Management, 
appointed directors such that the four VCTs each had a Common Board.  In 
addition, Richard Roth has subsequently also become a Director of Hygea 
VCT plc, a VCT investing in the Med Tech sector which is also 
self-managed and has a number of investments in common with the Oxford 
Technology VCTs.  Whilst great care is taken to safeguard the interests 
of the shareholders of each separate company, there is an element of 
overlap in the workload of each Director across the four OT funds due to 
the way the VCTs are managed.  The Directors note that the workload 
related to the four OT funds is less than it would be for four totally 
separate and larger funds, and are satisfied that Richard Roth has the 
time to focus on the requirements of each OT fund. 
 
   Investment Management Fees 
 
   OT2 Managers Ltd, the Company's wholly owned subsidiary, has an 
agreement to provide investment management services to the Company for a 
fee of 1% of net assets per annum.  Alex Starling and Richard Roth, 
together with Lucius Cary are Directors of OT2 Managers Ltd. 
 
   Directors' and Officers' Insurance 
 
   The Company has maintained insurance cover on behalf of the Directors, 
indemnifying them against certain liabilities which may be incurred by 
them in relation to their duties as Directors of the Company. 
 
   Ongoing Review 
 
   The Board has reviewed and continues to review all aspects of internal 
governance to mitigate the risk of breaches of VCT rules or company law. 
 
 
   Whistleblowing 
 
   The Board has been informed that the Investment Manager has arrangements 
in place in accordance with the UK Corporate Governance Code's 
recommendations by which staff of Oxford Technology Management or the 
Secretary of the Company may, in confidence, raise concerns within their 
respective organisations about possible improprieties in matters of 
financial reporting or other matters. 
 
   Bribery Act 2010 
 
   The Company is committed to carrying out business fairly, honestly and 
openly.  The Investment Manager has established policies and procedures 
to prevent bribery within its organisation.  The Company has adopted a 
zero tolerance approach to bribery and will not tolerate bribery under 
any circumstance in any transaction the Company is involved in. The 
Company has instructed the Investment Manager to adopt the same approach 
with investee companies. 
 
   Relations with Shareholders 
 
   The Company values the views of its shareholders and recognises their 
interest in the Company.   The Company's website provides information on 
all of the Company's investments, as well as other information of 
relevance to shareholders (www.oxfordtechnology.com/vct2). 
 
   Shareholders have the opportunity to meet the Board at the Annual 
General Meeting.  In addition to the formal business of the AGM the 
Board is available to answer any questions a shareholder may have. 
 
   The Board is also happy to respond to any written queries made by 
shareholders during the course of the year and can be contacted at the 
Company's registered office:  The Magdalen Centre, Oxford Science Park, 
Oxford OX4 4GA. 
 
   Going Concern 
 
   After making enquiries, the Directors have a reasonable expectation that 
the Company has adequate resources to continue in operational existence 
for the foreseeable future. For this reason they have adopted the going 
concern basis in preparing the financial statements. 
 
   Substantial Shareholders 
 
   At 28 February 2017, the Company has been notified by Neville Registrars 
of five investors whose interest exceeds three percent of the Company's 
issued share capital (Vidacos Nominees Ltd, 12.7% (beneficial interest 
of Starcap ANS 7.4%); Redmayne Nominees Ltd 4.8% (beneficial interest of 
Shivani Palakpari Shree Parikh representing 4.7%); Barclayshare Nominees 
(Europe) Ltd, 3.5%; Richard Vessey, 3.4%; and TD Direct Investing 
Nominees (Europe) Ltd 3.1%. 
 
   Auditors 
 
   James Cowper Kreston offer themselves for re-appointment in accordance 
with Section 489 of the Companies Act 2006. 
 
   On behalf of the Board 
 
   Richard Roth 
 
   Chairman 
 
   10 May 2017 
 
   Directors' Remuneration Report 
 
   Introduction 
 
   This report has been prepared by the Directors in accordance with the 
requirements of the Companies Act 2006. The Company's independent 
auditor, James Cowper Kreston, is required to give its opinion on 
certain information included in this report. This report includes a 
statement regarding the Directors' Remuneration Policy. Resolutions to 
approve the Directors' Remuneration Report will be proposed at the 
Annual General Meeting on 5 July 2017. 
 
   The Directors' Remuneration Policy was approved by shareholders at the 
AGM on 26 August 2015. The Directors' Remuneration Report for the year 
ended 29 February 2016 was approved by shareholders at the AGM on 8 July 
2016 on a unanimous show of hands and 100% of proxies voted in favour. 
 
   This report sets out the Company's forward-looking Directors' 
Remuneration Policy and the Annual Remuneration Report which describes 
how this policy has been applied during the year. 
 
   Directors' Terms of Appointment 
 
   The Board consists entirely of non-executive Directors who meet at least 
four times a year and on other occasions as necessary to deal with 
important aspects of the Company's affairs. Directors are appointed with 
the expectation that they will serve for at least three years and are 
expected to devote the time necessary to perform their duties.  All 
Directors retire at the first general meeting after election and 
thereafter every third year, with at least one Director standing for 
election or re-election each year.  Re-election will be recommended by 
the Board but is dependent upon shareholder vote. Directors who have 
been in office for more than nine years will stand for annual 
re-election in line with the AIC Code. There are no service contracts in 
place, but Directors have a letter of appointment. 
 
   Directors' Remuneration Policy 
 
   The Board acts as the Remuneration Committee and meets annually to 
review Directors' pay to ensure it remains appropriate given the need to 
attract and retain candidates of sufficient calibre and ensure they are 
able to devote the time necessary to lead the Company in achieving its 
strategy.  The Board has not engaged any third party consultancy 
services, but did consult with the previous Chairman, Michael O'Regan 
and Richard Vessey, the previous Chairman of Oxford Technology 3 VCT 
when the current levels were determined in 2015. 
 
   The Articles of Association of the company state that the aggregate of 
the remuneration (by way of fee) of all the Directors shall not exceed 
GBP50,000 per annum unless otherwise approved by Ordinary Resolution of 
the Company. Based on the Company sharing a Common Board with the other 
Oxford Technology VCT funds the following Directors' fees are payable by 
the Company; 
 
   per annum 
 
   Director Base Fee                                            GBP3,500 
 
   Chairman's Supplement                                    GBP2,000 
 
   Audit Committee Chairman                              GBP3,000 
 
   Audit Committee Member                                GBP1,500 
 
   Each of the directors have agreed to waive GBP1,500 of their fee until 
the fund performance improves.  Fees are currently paid annually. The 
fees are not specifically related to the Directors' performance, either 
individually or collectively.  No expenses are paid to the Directors. 
There are no share option schemes or pension schemes in place but 
Directors are entitled to a share of the carried interest as detailed 
below. 
 
   Richard Roth chairs the Company. Richard also chairs the Audit Committee, 
with Robin Goodfellow as a member of the Committee.  As the VCT is 
self-managed, the Audit Committee carries out a particularly important 
role for the VCT and has played a greater part in the production of the 
annual accounts compared to earlier years. 
 
   Alex Starling and Richard Roth receive no remuneration in respect of 
their directorships of OT2 Managers Ltd, the Company's Investment 
Manager. 
 
   The performance fee is detailed in note 3. Current Directors are 
entitled to benefit from any payment made, subject to a formula driven 
by relative lengths of service.  The performance fee becomes payable if 
a certain cash return threshold to shareholders is exceeded - the excess 
is then subject to a 20% carry that is distributed to Oxford Technology 
Management, past Directors and current Directors; the remaining 80% is 
returned to shareholders.  At 28 February 2017 no performance fee was 
due nor accrued. 
 
   Should any performance fee be payable at the end of the year to 28 
February 2018, Alex Starling, Robin Goodfellow, and Richard Roth would 
each receive 0.23% of any amount over the threshold and David Livesley 
0.80%.  No performance fee will be payable for the year ending 28 
February 2018 unless original shareholders have received back at least 
144.8p in cash for each 100p (gross) invested. 
 
   Relative Spend on Directors' Fees 
 
   The Company has no employees, so no consultation with employees or 
comparison measurements with employee remuneration are appropriate. 
 
   Loss of Office 
 
   In the event of anyone ceasing to be a Director, for any reason, no loss 
of office payments will be made.  There are no contractual arrangements 
entitling any Director to any such payment. 
 
   Annual Remuneration Report 
 
 
 
 
Directors' Fees   Year End 28/02/18  Year End 28/02/17  Year End 29/02/16 
                     (unaudited)         (audited)          (audited) 
Richard Roth          GBP7,000           GBP7,000           GBP4,667 
Alex Starling         GBP2,000           GBP2,000           GBP1,333 
Mike O'Regan*             -                  -                GBP0 
Lucius Cary               -                  -              GBP1,250 
Robin Goodfellow      GBP3,500           GBP3,500           GBP2,333 
David Livesley        GBP2,000           GBP2,000           GBP1,333 
Total                 GBP14,500          GBP14,500          GBP10,916 
 
 
   * Mike O'Regan waived his fees. 
 
   Prior to his appointment as a director of OT2, Richard Roth received an 
additional one off payment of GBP2,000 in the year to 29 February 2016 
as compensation for executive work undertaken in relation to the setting 
up of the Common Board structure. 
 
   Income Statement 
 
 
 
 
                                                                       Year Ended                             Year Ended 
                                                                    28 February 2017                    29 February 2016 
                                                       Note   Revenue   Capital    Total    Revenue   Capital    Total 
                                                        Ref.   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
 
Gain on disposal of fixed asset investments                       -         -         -         -        142       142 
Unrealised gain on valuation of fixed asset 
investments                                                       -        653       653        -         83        83 
Investment income                                          2        27         -        27        36         -        36 
Investment management fees                                 3       (5)      (14)      (19)       (3)      (14)      (17) 
Other expenses                                             4      (45)         -      (45)      (52)         -      (52) 
Return on ordinary activities before tax                          (23)       639       616      (19)       211       192 
Taxation on return on ordinary activities                  5         -         -         -         -         -         - 
Return on ordinary activities after tax                           (23)       639       616      (19)       211       192 
Return on ordinary activities after tax attributable 
 to 
 equity shareholders                                              (23)       639       616      (19)       211       192 
Earnings per share - basic and diluted                     6    (0.4)p      9.4p      9.0p    (0.2)p      3.1p      2.9p 
 
 
   There was no other Comprehensive Income recognised during the year. 
 
   The 'Total' column of the Income Statement is the Profit and Loss 
Account of the Company, the supplementary Revenue and Capital return 
columns have been prepared under guidance published by the Association 
of Investment Companies. 
 
   All Revenue and Capital items in the above statement derive from 
continuing operations. 
 
   The Company has only one class of business and derives its income from 
investments made in shares and securities and from bank and money market 
funds. 
 
   The accompanying notes are an integral part of the financial statements. 
 
   Statement of Changes in Equity 
 
 
 
 
                                                                    Unrealised  Profit 
                                                   Share    Share    Capital    & Loss 
                                                  Capital  Premium   Reserve    Reserve   Total 
                                                  GBP'000  GBP'000   GBP'000    GBP'000  GBP'000 
 
  As at 1 March 2015                                  679      376         803       32    1,890 
Revenue return on ordinary activities after tax         -        -           -     (19)     (19) 
 
Expenses charged to capital                             -        -           -     (14)     (14) 
 
  Current period gains on disposal                      -        -           -      142      142 
Current period gains on fair value of 
 investments                                            -        -          83        -       83 
 
  Prior years' losses now realised                      -        -       (207)      207        - 
 
  Movement in reserves (note 11)                        -        -     (1,097)    1,097        - 
Dividends paid                                          -        -           -    (170)    (170) 
 
 
Balance as at 29 February 2016                        679      376       (418)    1,275    1,912 
Revenue return on ordinary activities after tax         -        -           -     (23)     (23) 
Expenses charged to capital                             -        -           -     (14)     (14) 
 
  Current period gains on disposal                      -        -           -        -        - 
Current period gains on fair value of 
 investments                                            -        -         653        -      653 
 
  Balance as at 28 February 2017                      679      376         235    1,238    2,528 
 
 
   The accompanying notes are an integral part of the financial statements. 
 
 
   Balance Sheet 
 
 
 
 
                                             Year Ended                Year Ended 
                                           28 February 2017      29 February 2016 
                                  Note 
                                  Ref.   GBP'000    GBP'000   GBP'000     GBP'000 
Fixed Asset Investments At Fair 
 Value                                7                2,405                1,602 
Current Assets 
Debtors                               8         2                   21 
Cash At Bank                                  146                  333 
Creditors: Amounts Falling Due 
 Within 1 Year                        9      (25)                 (27) 
Net Current Assets                                       123                  327 
Creditors: Amounts Falling Due 
 In More Than 1 Year                  9                    -                 (17) 
Net Assets                                             2,528                1,912 
Called Up Equity Share Capital       10                  679                  679 
Share Premium                                            376                  376 
Unrealised Capital Reserve           11                  235                (418) 
Profit and Loss Account Reserve      11                1,238                1,275 
Total Equity Shareholders' 
 Funds                               11                2,528                1,912 
Net Asset Value Per Share                              37.2p                28.2p 
 
 
   The accompanying notes are an integral part of the financial statements. 
 
   The statements were approved by the Directors and authorised for issue 
on 10 May 2017 and are signed on their behalf by: 
 
   Richard Roth 
 
   Chairman 
 
   Statement of Cash Flows 
 
 
 
 
                                             Year Ended         Year Ended 
                                           28 February 2017   29 February 2016 
                                               GBP'000            GBP'000 
Cash flows from operating activities 
Return on ordinary activities before tax                616                192 
Adjustments for: 
Gain on disposal of investments                           -              (142) 
Gain on valuation of investments                      (653)               (83) 
Decrease/(increase) in debtors                           19                (2) 
Decrease in creditors                                  (19)               (17) 
Outflow from operating activities                      (37)               (52) 
Cash flows from investing activities 
Purchase of investments                               (150)               (13) 
Disposal of investments                                   -                355 
Dividends paid                                            -              (170) 
(Decrease)/increase in cash at bank                   (187)                120 
Opening cash and cash equivalents                       333                213 
Cash and cash equivalents at year end                   146                333 
 
 
   The accompanying notes are an integral part of the financial statements. 
 
   Notes to the Financial Statements 
 
   The financial statements have been prepared under Financial Reporting 
Standard 102 - 'The Financial Reporting Standard applicable in the 
United Kingdom and Republic of Ireland' ('FRS 102').  The accounting 
policies have not materially changed from last year. 
 
   1. Principal Accounting Policies 
 
   Basis of Preparation 
 
   The financial statements have been prepared under the historical cost 
convention, except for the measurement at fair value of certain 
financial instruments, and in accordance with UK Generally Accepted 
Accounting Practice ("GAAP"), including FRS 102 and with the Companies 
Act 2006 and the Statement of Recommended Practice (SORP) 'Financial 
Statements of Investment Trust Companies and Venture Capital Trusts 
(revised 2014)' issued by the AIC. 
 
   The principal accounting policies have remained materially unchanged 
from those set out in the Company's 2016 Annual Report and financial 
statements. A summary of the principal accounting policies is set out 
below. 
 
   FRS 102 sections 11 and 12 have been adopted with regard to the 
Company's financial instruments. The Company held all fixed asset 
investments at fair value through profit or loss. Accordingly, all 
interest income, fee income, expenses and gains and losses on 
investments are attributable to assets held at fair value through profit 
or loss. 
 
   The most important policies affecting the Company's financial position 
are those related to investment valuation and require the application of 
subjective and complex judgements, often as a result of the need to make 
estimates about the effects of matters that are inherently uncertain and 
may change in subsequent periods. These are discussed in more detail 
below. 
 
   Going Concern 
 
   After reviewing the Company's forecasts and expectations, the Directors 
have a reasonable expectation that the Company has adequate resources to 
continue in operational existence for the foreseeable future. The 
Company therefore continues to adopt the going concern basis in 
preparing its financial statements. 
 
   Key Judgements and Estimates 
 
   The preparation of the financial statements requires the Board to make 
judgements and estimates regarding the application of policies and 
affecting the reported amounts of assets, liabilities, income and 
expenses. Estimates and assumptions mainly relate to the fair valuation 
of the fixed asset investments particularly unquoted investments. 
Estimates are based on historical experience and other assumptions that 
are considered reasonable under the circumstances. The estimates and the 
assumptions are under continuous review with particular attention paid 
to the carrying value of the investments. 
 
   Investments are regularly reviewed to ensure that the fair values are 
appropriately stated. Unquoted investments are valued in accordance with 
current International Private Equity and Venture Capital Valuation 
(IPEV) guidelines, which can be found on their website at 
www.privateequityvaluation.com, although this does rely on subjective 
estimates such as appropriate sector earnings multiples, forecast 
results of investee companies, asset values of investee companies and 
liquidity or marketability of the investments held. 
 
   Although the Directors believe that the assumptions concerning the 
business environment and estimate of future cash flows are appropriate, 
changes in estimates and assumptions could result in changes in the 
stated values. This could lead to additional changes in fair value in 
the future. 
 
   Functional and Presentational Currency 
 
   The financial statements are presented in Sterling (GBP). The functional 
currency is also Sterling (GBP). 
 
   Cash and Cash Equivalents 
 
   Cash and cash equivalents includes cash in hand, deposits held at call 
with banks, other short-term highly liquid investments with original 
maturities of three months or less and also include bank overdrafts. 
 
   Fixed Asset Investments 
 
   The Company's principal financial assets are its investments and the 
policies in relation to those assets are set out below. 
 
   Purchases and sales of investments are recognised in the financial 
statements at the date of the transaction (trade date). 
 
   These investments will be managed and their performance evaluated on a 
fair value basis and information about them is provided internally on 
that basis to the Board.  Accordingly, as permitted by FRS 102, the 
investments are measured as being fair value through profit or loss on 
the basis that they qualify as a group of assets managed, and whose 
performance is evaluated, on a fair value basis in accordance with a 
documented investment strategy.  The Company's investments are measured 
at subsequent reporting dates at fair value. 
 
   In the case of investments quoted on a recognised stock exchange, fair 
value is established by reference to the closing bid price on the 
relevant date or the last traded price, depending upon convention of the 
exchange on which the investment is quoted. In the case of AIM quoted 
investments this is the closing bid price. 
 
   In the case of unquoted investments, fair value is established by using 
measures of value such as the price of recent transactions, earnings 
multiple, revenue multiple, discounted cash flows and net assets.  These 
are consistent with the IPEV guidelines. 
 
   Gains and losses arising from changes in fair value of investments are 
recognised as part of the capital return within the Income Statement and 
allocated to the unrealised capital reserve. 
 
   In the preparation of the valuations of assets the Directors are 
required to make judgements and estimates that are reasonable and 
incorporate their knowledge of the performance of the investee 
companies. 
 
   Fair Value Hierarchy 
 
   Paragraph 34.22 of FRS 102 regarding financial instruments that are 
measured in the balance sheet at fair value requires disclosure of fair 
value measurements dependent on whether the stock is quoted and the 
level of the accuracy in the ability to determine its fair value. The 
fair value measurement hierarchy is as follows: 
 
   For Quoted Investments: 
 
   Level a: quoted prices in active markets for an identical asset. The 
fair value of financial instruments traded in active markets is based on 
quoted market prices at the balance sheet date. A market is regarded as 
active if quoted prices are readily and regularly available, and those 
prices represent actual and regularly occurring market transactions on 
an arm's length basis. The quoted market price used for financial assets 
held is the bid price at the Balance Sheet date. 
 
   Level b: where quoted prices are not available (or where a stock is 
normally quoted on a recognised stock exchange that no quoted price is 
available), the price of a recent transaction for an identical asset, 
providing there has been no significant change in economic circumstances 
or a significant lapse in time since the transaction took place. The 
Company holds no such investments in the current or prior year. 
 
   For investments not quoted in an active market: 
 
   Level c: the fair value of financial instruments that are not traded in 
an active market is determined by using valuation techniques. These 
valuation techniques maximise the use of observable data (e.g. the price 
of recent transactions, earnings multiple, discounted cash flows and/or 
net assets) where it is available and rely as little as possible on 
entity specific estimates.  If all significant inputs required to fair 
value an instrument are observable, the instrument is included in level 
c (i). If one or more of the significant inputs is not based on 
observable market data, the instrument is included in level c (ii). 
 
   There have been no transfers between these classifications in the year 
(2016: none). The change in fair value for the current and previous year 
is recognised in the income statement. 
 
   Income 
 
   Investment income includes interest earned on bank balances and from 
unquoted loan note securities, and dividends.  Fixed returns on debt are 
recognised on a time apportionment basis so as to reflect the effective 
yield, provided it is probable that payment will be received in due 
course.  Dividend income from investments is recognised when the 
shareholders' rights to receive payment have been established, normally 
the ex dividend date. 
 
   Expenses 
 
   All expenses are accounted for on an accruals basis.  Expenses are 
charged wholly to revenue with the exception of the investment 
management fee which has been charged 75% to capital and 25% to revenue. 
Any applicable performance fee will be charged 100% to capital. 
 
   Revenue and Capital 
 
   The revenue column of the Income Statement includes all income and 
revenue expenses of the Company.  The capital column includes gains and 
losses on disposal and holding gains and losses on investments.  Gains 
and losses arising from changes in fair value of investments are 
recognised as part of the capital return within the Income Statement and 
allocated to the appropriate capital reserve on the basis of whether 
they are realised or unrealised at the balance sheet date. 
 
   Taxation 
 
   Current tax is recognised for the amount of income tax payable in 
respect of the taxable profit for the current or past reporting periods 
using the current tax rate. The tax effect of different items of 
income/gain and expenditure/loss is allocated between capital and 
revenue return on the "marginal" basis as recommended in the SORP. 
 
   Deferred tax is recognised on an undiscounted basis in respect of all 
timing differences that have originated but not reversed at the balance 
sheet date, except as otherwise indicated. 
 
   Deferred tax assets are only recognised to the extent that it is 
probable that they will be recovered against the reversal of deferred 
tax liabilities or other future taxable profits. 
 
   Financial Instruments 
 
   The Company's principal financial assets are its investments and the 
policies in relation to those assets are set out above.  Financial 
liabilities and equity instruments are classified according to the 
substance of the contractual arrangements entered into. 
 
   An equity instrument is any contract that evidences a residual interest 
in the assets of the entity after deducting all of its financial 
liabilities. Where the contractual terms of share capital do not have 
any terms meeting the definition of a financial liability then this is 
classed as an equity instrument. 
 
   The Company does not have any externally imposed capital requirements. 
 
   Reserves 
 
   Called up Equity Share Capital - represents the nominal value of shares 
that have been issued. 
 
   Share Premium Account - includes any premiums received on issue of share 
capital. Any transaction costs associated with the issuing of shares are 
deducted from the Share Premium Account. 
 
   Unrealised Capital Reserve arises when the Company revalues the 
investments still held during the period and any gains or losses arising 
are credited/charged to the Unrealised Capital Reserve.  When an 
investment is sold, any balance held on the Unrealised Capital Reserve 
is transferred to the Profit and Loss Reserve as a movement in reserves. 
 
   The Profit and Loss Reserve represents the aggregate of accumulated 
realised profits, less losses and dividends. 
 
   Dividends Payable 
 
   Dividends payable are recognised as distributions in the financial 
statements when the Company's liability to make payment has been 
established.  This liability is established for interim dividends when 
they are declared by the Board, and for final dividends when they are 
approved by the Shareholders. 
 
   Investment Income 
 
 
 
 
                        Year Ended         Year Ended 
                      28 February 2017   29 February 2016 
                          GBP'000            GBP'000 
Dividends received                  27                 36 
Total                               27                 36 
 
 
   3.  Investment Management Fees 
 
   Expenses are charged wholly to revenue with the exception of the 
investment management fee which has been charged 75% to the capital 
reserve in line with industry practice. 
 
 
 
 
                               Year Ended         Year Ended 
                             28 February 2017   29 February 2016 
                                 GBP'000            GBP'000 
Investment management fee                  19                 19 
Cost cap refund from OTM                    -                (2) 
Total                                      19                 17 
 
 
   In the year to 28 February 2017 the manager received a fee of 1% of the 
net asset value as at the previous year end.  (2016: 1%).  Oxford 
Technology Management is also entitled to certain monitoring fees from 
investee companies and the Board reviews the amounts. 
 
   Oxford Technology Management had previously agreed to defer 25% of the 
2% management fee to which it was contractually entitled (ie 0.5% of net 
assets) until such a time when the finances of the Company made this 
payment more affordable.  As part of the revised agreement with effect 
from 1 March 2015 the Board have agreed to pay the deferred balance over 
a 36 month period. 
 
   A performance fee is payable to the Investment Manager once original 
shareholders have received a specified threshold in cash for each 100p 
(gross) invested.  The original threshold of 100p has now been increased 
by compounding that portion that remains to be paid to shareholders by 
6% per annum with effect from 1 March 2010, resulting in the remaining 
required threshold rising to 124.3p at 28 February 2017, corresponding 
to a total shareholder return of 137.3p after taking into account the 
13p already paid out (13p + 124.3p = 137.3p).  After this amount has 
been distributed to shareholders, each extra 100p distributed goes 80p 
to the shareholders and 20p to the beneficiaries of the performance 
incentive fee, of which Oxford Technology Management receives 14p.  No 
performance fee has become due or been paid to date.  Any applicable 
performance fee will be charged 100% to capital. 
 
   Expenses are capped at 3%, including the management fee but excluding 
Directors' fees and any performance fee.   Accordingly Oxford Technology 
Management reduced their management fee by GBP nil (2016: GBP2,000). 
 
   4. Other Expenses 
 
   All expenses are accounted for on an accruals basis.  All expenses are 
charged through the income statement except as follows: 
 
 
   -- those expenses which are incidental to the acquisition of an investment 
      are included within the cost of the investment; 
 
   -- expenses which are incidental to the disposal of an investment are 
      deducted from the disposal proceeds of the investment. 
 
 
 
 
                             Year Ended         Year Ended 
                           28 February 2017   29 February 2016 
                               GBP'000            GBP'000 
Directors' remuneration                  15                 11 
Auditors' remuneration                    6                  6 
Other expenses                           24                 35 
Total                                    45                 52 
 
 
   5. Tax on Ordinary Activities 
 
   Corporation tax payable at 20% (2016: 20%) is applied to profits 
chargeable to corporation tax, if any.  The corporation tax charge for 
the period was GBPnil (2016: GBPnil) 
 
 
 
 
                                             Year Ended         Year Ended 
                                           28 February 2017   29 February 2016 
                                               GBP'000            GBP'000 
Return on ordinary activities before tax                616                192 
Current tax at standard rate of taxation                123                 38 
UK dividends not taxable                                (5)                (7) 
Unrealised gains not taxable                          (131)               (17) 
Realised gains not taxable                                -               (28) 
Excess management expenses carried 
 forward                                                 13                 14 
Total current tax charge                                  -                  - 
 
 
   Unrelieved management expenses of GBP1,465,200 (2016: GBP1,400,741) 
remain available for offset against future taxable profits. 
 
   6. Earnings per Share 
 
   The calculation of earnings per share (basic and diluted) for the period 
is based on the net profit of GBP616,000 (2016: GBP192,000) attributable 
to shareholders divided by the weighted average number of shares 
6,792,923 (2016; 6,792,923) in issue during the period. 
 
   There are no potentially dilutive capital instruments in issue and, 
therefore, no diluted returns per share figures are relevant.  The basic 
and diluted earnings per share are therefore identical. 
 
   7. Investments 
 
 
 
 
                               Unquoted investments 
                                    Level c(ii) 
                                      GBP'000        Total investments GBP'000 
Valuation and net book 
amount: 
Book cost as at 29 February 
 2016                                         2,020                      2,020 
 
Cumulative revaluation                        (418)                      (418) 
Valuation at 29 February 2016                 1,602                      1,602 
Movement in the year: 
Purchases at cost                               150                        150 
Disposals - costs                                 -                          - 
Disposals - revaluation                           -                          - 
Revaluation in year                             653                        653 
Valuation at 28 February 2017                 2,405                      2,405 
Book cost at 28 February 2017                 2,170                      2,170 
Cumulative revaluation to 28 
 February 2017                                  235                        235 
Valuation at 28 February 2017                 2,405                      2,405 
 
   Subsidiary Company 
 
   The Company also holds 100% of the issued share capital of OT2 Managers 
Ltd at a cost of GBP1. 
 
   Results of the subsidiary undertaking for the year ended 28 February 
2017 are as follows: 
 
 
 
 
          Country of    Nature of   Turnover     Retained profit/loss  Net Assets 
          Registration  Business 
OT2       England and   Investment 
Managers  Wales         Manager       GBP19,122           GBP0             GBP1 
Ltd 
 
 
 
   Consolidated group financial statements have not been prepared as the 
subsidiary undertaking is not considered to be material for the purpose 
of giving a true and fair view.  The Financial Statements therefore 
present only the results of Oxford Technology 2 VCT plc, which the 
Directors also consider is the most useful presentation for 
Shareholders. 
 
   8.  Debtors 
 
 
 
 
                                            28 February 2017  29 February 2016 
                                                 GBP'000           GBP'000 
Prepayments, accrued income & other 
 debtors                                                   2                21 
Total                                                      2                21 
 
 
   9. Creditors - amounts falling due in less than 1 year 
 
 
 
 
                                    28 February 2017  29 February 2016 
                                         GBP'000           GBP'000 
Investment management fee accrual                 18                18 
Other creditors and accruals                       7                 9 
Total                                             25                27 
 
 
   Creditors - amounts falling due in more than 1 year 
 
 
 
 
                                    28 February 2017  29 February 2016 
                                         GBP'000           GBP'000 
Investment management fee accrual                  -                17 
Total                                              -                17 
 
 
   The Investment Manager has previously deferred 25% of fees, as detailed 
in Note 3.  These are now being paid between March 2015 and February 
2018. 
 
   10. Share Capital 
 
 
 
 
                                                     28 February 2017  29 February 2016 
                                                          GBP'000           GBP'000 
Authorised: 
10,000,000 ordinary shares of 10p each                          1,000             1,000 
Total Authorised                                                1,000             1,000 
Allotted, called up and fully paid: 
6.792,923 (2016: 6,792,923) ordinary shares of 10p 
 each                                                             679               679 
 
 
   11.   Reserves 
 
   When the Company revalues its investments during the period, any gains 
or losses arising are credited/charged to the Income Statement.  Changes 
in fair value of investments are then transferred to the Unrealised 
Capital Reserve.  When an investment is sold any balance held on the 
Unrealised Capital Reserve is transferred to the Profit and Loss Account 
Reserve as a movement in reserves. 
 
   The transfer between the Unrealised Capital Reserve and the Profit and 
Loss Reserve in 2016 was the result of the correction of historic 
misclassifications between the two reserves.  The historic 
misclassifications were immaterial as they had no impact on reported 
returns or net assets and had no bearing on any distributions. 
 
   Distributable reserves are GBP1,238,000 as at 28 February 2017 (2016: 
GBP857,000). 
 
   Reconciliation of Movement in Shareholders' Funds 
 
 
 
 
                                          28 February 2017  29 February 2016 
                                               GBP'000           GBP'000 
Shareholders' funds at start of year                 1,912             1,890 
Return on ordinary activities after tax                616               192 
Dividends paid                                           -             (170) 
Shareholders' funds at end of year                   2,528             1,912 
 
 
   The Company paid a dividend of 2.5p per share on 19 February 2016. 
 
   12.  Financial Instruments and Risk Management 
 
   The Company's financial instruments comprise equity and loan note 
investments, cash balances and debtors and creditors.  The Company holds 
financial assets in accordance with its investment policy of investing 
mainly in a portfolio of VCT - qualifying quoted and unquoted securities 
whilst holding a proportion of its assets in cash or near cash 
investments in order to provide a reserve of liquidity.  The risk faced 
by these instruments, such as interest rate risk or liquidity risk is 
considered to be minimal due to their nature.  All of these are carried 
in the accounts at fair value. 
 
   The Company's strategy for managing investment risk is determined with 
regard to the Company's investment objective.  The management of market 
risk is part of the investment management process and is a central 
feature of venture capital investment.  The Company's portfolio is 
managed with regard to the possible effects of adverse price movements 
and with the objective of maximising overall returns to shareholders. 
Investments in unquoted companies, by their nature, usually involve a 
higher degree of risk than investments in companies quoted on a 
recognised stock exchange, though the risk can be mitigated to a certain 
extent by diversifying the portfolio across business sectors and asset 
classes.  The overall disposition of the Company's assets is regularly 
monitored by the Board. 
 
   13. Capital Commitments 
 
   The Company had no commitments at 28 February 2017 or 29 February 2016. 
 
   14.  Related Party Transactions 
 
   OT2 Managers Ltd, a wholly owned subsidiary, provides investment 
management services to the Company with effect from 1 July 2015 for a 
fee of 1% of net assets per annum.  During the year, GBP19,122 was paid 
in respect of these fees (2016: GBP12,601).  No amounts were outstanding 
at the year end. 
 
   15.  Events after the Balance Sheet Date 
 
   There are no reportable events after the Balance Sheet date. 
 
   Company Number: 3928569 
 
   Note to the announcement: 
 
   The financial information set out in this announcement does not 
constitute statutory accounts as defined in the Companies Act 2006 ("the 
Act").  The balance sheet as at 28 February 2017, income statement and 
cash flow statement for the period then ended have been extracted from 
the Company's 2017 statutory financial statements upon which the 
auditor's opinion is unqualified and does not include any statement 
under the section 495 of the Act. 
 
   The Annual Report and Accounts for the year ended 28 February 2017 will 
be filed with the Registrar of Companies. 
 
   Copies of the documents will be submitted to the National Storage 
Mechanism and are available for inspection at: 
http://www.mornningstar.co.uk/uk/NNSM 
 
   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

May 10, 2017 12:01 ET (16:01 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.

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