Mobeus Income & Growth 2 VCT PLC Interim Management Statement to 31 December 2019 (6732E)

TIDMMIG

RNS Number : 6732E

Mobeus Income & Growth 2 VCT PLC

02 March 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mobeus Income & Growth 2 VCT plc 
 
 
 
 
 
 
 
 
 
 
 
(the "Company") 
 
 
 

INTERIM MANAGEMENT STATEMENT

For the quarter ended 31 December 2019

Mobeus Income & Growth 2 VCT plc presents an Interim Management Statement for the quarter ended 31 December 2019. The statement also includes relevant financial information between the end of the quarter and the date of this statement.

NET ASSET VALUE AND TOTAL RETURN PER SHARE

 
                                            At 31 December   At 30 September 
                                                      2019              2019 
 Net assets attributable to shareholders         GBP44.47m         GBP43.41m 
 Shares in issue                                48,143,782        48,312,254 
 Net asset value (NAV) per share                    92.37p            89.85p 
 Cumulative dividends paid to date 
  per share since inception                         98.00p            98.00p 
 Total return per share since inception 
  (NAV basis)                                      190.37p           187.85p 
 

FUNDRAISING

On 25 October 2019, the Company launched an Offer for Subscription ("Offer") to raise, up to GBP15 million, with an over-allotment facility to raise up to a further GBP5 million. Following robust demand from investors, the Directors approved the use of the over-allotment facility on 20 December 2019. On 8 January 2020, based on applications received up to 20 December 2019, 11,892,778 new Ordinary shares were allotted, generating net funds of GBP10.69 million for the Company. The Offer became fully subscribed on 13 January 2020. Due to this strong investor demand, on 6 February 2020 the Company announced that the Offer size would be further increased to raise up to a further GBP2.1 million. This increase was satisfied from applications already received in respect of the Offers, as announced on 28 February 2020.

In accordance with the Prospectus, these applications totalling approximately GBP11 million will be allotted shares in the Company between 1-3 April 2020.

DIVIDENDS

On 26 February 2020, the Company declared the payment of a second interim dividend of 11.00 pence per share in respect of the year ending 31 March 2020, to Shareholders on the register on 6 March 2020. This will be paid on 27 March 2020 and will bring the total paid in respect of this year to 26.00 pence per share.

SHARE BUY-BACKS

On 10 December 2019, the Company bought back 168,472 of its Ordinary shares at a price of 85.16

pence per share.

All shares bought back by the Company were subsequently cancelled.

INVESTMENT ACTIVITY

New investments

On 1 November 2019, the Company made a new investment of GBP0.94 million into Data Discovery Solutions Limited (trading as Active Navigation), a provider of enterprise-level file analysis software.

On 29 November 2019, the Company made a new investment of GBP0.54 million into IPV Limited, a developer of media asset management software.

On 13 December 2019, the Company made a new investment of GBP0.45 million into Bleach London Holdings Limited, an established and trusted brand in the hair colourants market.

Divestments

On 12 December 2019, the Company sold its investment in Redline Worldwide Limited, generating cash proceeds of GBP0.87 million. The realisation contributed, to date, to a return over the life of the investment of 1.6 times original cost. Deferred consideration of up to GBP0.16 million may be received over the next 30 months.

Divestments after the quarter end

On 7 February 2020, the Company's investment in Pattern Analytics Limited (trading as Biosite) was sold for proceeds of GBP1.53 million. Over the three years that this investment was held, these proceeds contributed to a multiple on cost of 1.5 times the original cost of investment. This realisation has had no material impact on the NAV per share as reported above.

On 13 February 2020, the Company sold its investment in Turner Topco Limited (trading as Auction Technology Group), generating cash proceeds of GBP4.55 million which, combined with returns received prior to a secondary buyout in June 2014, contributed to a multiple on original cost of 4.5 times over the 11 and a half years the investment was held. In isolation, the impact of this sale on the Company's NAV per share referred to above, would be an increase of 3.22p.

The Company emphasises that this figure is in isolation from any other changes in the Company's balance sheet, including other valuation movements in the Company's investment portfolio, that may affect the NAV per share during the current quarter.

Investments after the quarter end

On 28 February 2020, the Company made a new investment of GBP1.45 million into Bella & Duke Limited, a provider of premium frozen raw dog food to pet owners in the UK.

Other than as described above, there were no material events during the quarter and to the date of this announcement.

Please note that all of the information above is unaudited.

For further information, please contact:

Mobeus Equity Partners LLP, Company Secretary: 020 7024 7600.

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March 02, 2020 05:23 ET (10:23 GMT)