Mobeus Income & Growth 2 VCT PLC Interim Management Statement to 30 June 2020 (3814Y)

TIDMMIG

RNS Number : 3814Y

Mobeus Income & Growth 2 VCT PLC

08 September 2020

Mobeus Income & Growth 2 VCT plc

(the "Company")

INTERIM MANAGEMENT STATEMENT

For the quarter ended 30 June 2020

Mobeus Income & Growth 2 VCT plc presents an Interim Management Statement for the quarter ended 30 June 2020. 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 2020   At 31 March 2020 
 Net assets attributable to shareholders      GBP53,121,014      GBP43,565,294 
 Shares in issue                                 73,617,746         59,689,299 
 Net asset value (NAV) per share                72.16 pence        72.99 pence 
 Cumulative dividends paid to date           116.00 pence         109.00 pence 
  per share 
 Total return per share since inception        188.16 pence       181.99 pence 
  (NAV basis) 
 

The net fall in the NAV per share of 0.83 pence over the quarter disguises what has been a period of encouraging recovery, principally due to two offsetting but positive factors. Firstly, an interim dividend for the year ending 31 March 2021 of 7.00 pence per share was paid to Shareholders on 19 June 2020 (detailed under Dividends below). Secondly, the Company's portfolio valuations at 30 June 2020 have increased from the values held at the 31 March 2020 year-end. The valuations had been adversely affected by the economic disruption and uncertainty resulting from the outbreak of the COVID-1 Global Pandemic. However, over this quarter to 30 June 2020, more clarity has emerged on the impact of the Company's portfolio such that, to date, this has been more modest than was initially expected with much of the portfolio demonstrating a strong degree of resilience. The net increase from portfolio movements for the quarter is 6.17 pence per share, being the principal cause of a positive 8.5% NAV return for the quarter.

FUNDRAISING

Shortly after the previous year-end, on 2 April 2020, the Company carried out its second and final allotment of shares under the Company's 2019/20 Offer for Subscription ("Offer"), allotting 13,928,447 ordinary shares at an average effective offer price of 77.26 pence per share. This allotment generated net funds of GBP10.26 million due to the Company.

Following this allotment, the Company's Offer was formally closed having been fully subscribed (including its over-allotment facility), raising net funds totalling GBP20.95 million.

INVESTMENT ACTIVITY

New investment during the period

On 29 June 2020, the Company invested GBP0.22 million into a new investee company, Andersen EV, a designer of electric vehicle (EV) charge points.

Further investments during the period

On 5 May 2020, the Company invested a further GBP0.37 million into Rotageek, a provider of cloud-based workforce management software to help larger retail and leisure organisations predict and meet demand to schedule staff effectively.

On 26 May 2020, the Company invested a further GBP0.53 million into MyTutorweb (trading as MyTutor), an existing portfolio company, and digital marketplace that connects school pupils who are seeking private one-to-one tutoring with university students.

Further investments after the period end

On 1 September 2020, a further GBP0.92 million was invested into existing portfolio company, Buster & Punch Holdings Limited, a London-based interiors brand.

Realisations after the period end

On 14 August 2020, the Company sold its investment in Tovey Management Limited (trading as Access IS) to ASSA ABLOY AB for cash proceeds of GBP4.23 million. Over the five years this investment was held, it generated cash proceeds of GBP4.94 million compared to an original investment cost of GBP1.95 million, which is a multiple on cost of 2.5 x and an IRR of 23.4%.

On 2 September 2020, the Company sold its investment in Blaze Signs Holdings Limited via a secondary buyout backed by Elaghmore LLP and has received cash proceeds of GBP1.29 million. Over the 14 years this investment was held, it has generated cash proceeds of GBP3.60 million compared to an original investment cost of GBP1.40 million, which is a multiple on cost of 2.6x and an IRR of 13.2%.

INTERIM DIVIDEND

On 19 June 2020, the Company paid a 7.00 pence per share interim dividend in respect of the year ending 31 March 2021, to all Shareholders whose names were on the Register on 22 May 2020, including all shareholders who invested in the Fundraising referred to above.

SHARE BUYBACK

On 3 July 2020, the Company purchased 32,944 of the Company's own ordinary shares at a price of 62.50 pence per share for cancellation.

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:

Mobeus Equity Partners LLP, Company Secretary: 020 7024 7600

   LEI:   213800IFNJ65R8AQW943 

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September 08, 2020 10:30 ET (14:30 GMT)