Mobeus Income & Growth 2 VCT PLC Interim Management Statement to 31 December 2020 (7765Q)

TIDMMIG

RNS Number : 7765Q

Mobeus Income & Growth 2 VCT PLC

02 March 2021

Mobeus Income & Growth 2 VCT PLC

(the "Company")

LEI: 213800LY62XLI1B4VX35

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulations (EU Regulation 596/2014)

INTERIM MANAGEMENT STATEMENT

For the quarter ended 31 December 2020

Mobeus Income & Growth 2 VCT plc presents an Interim Management Statement for the quarter ended 31 December 2020. 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 
                                                      2020              2020 
 Net assets attributable to shareholders     GBP64,000,707     GBP58,221,544 
 Shares in issue                                73,380,275        73,469,447 
 Net asset value (NAV) per share                    87.22p            79.25p 
 Cumulative dividends paid to date 
  per share since inception                        116.00p           116.00p 
 Total return per share since inception 
  (NAV basis)                                      203.22p           195.25p 
 

The NAV per share has increased by 7.97 pence (10.1%) in the quarter. This is principally due to a rise in unrealised portfolio valuations and gains on realisations (further details below).

INVESTMENT ACTIVITY

New investments during the period

On 22 December 2020, the Company made a new investment of GBP0.30 million into Northern Bloc Ice Cream Limited, a plant-based ice cream manufacturer.

On 30 December 2020, the Company made a new investment of GBP0.83 million into Connect Childcare Group Limited, a provider of nursery management software.

Realisations during the period

On 27 November 2020, the Company sold its investment in Vectair Holdings Limited, generating cash proceeds of GBP1.24 million. Over the fifteen years this investment was held, it generated cash proceeds of GBP2.02 million compared to an original investment cost of GBP0.24 million, a multiple on cost of 8.3x and an IRR of 22.2%.

On 29 December 2020, the Company sold its investment in Bourn Bioscience Limited, generating cash proceeds of GBP1.00 million. Over the nearly seven years this investment was held, it generated cash proceeds of GBP1.24 million compared to an original investment cost of GBP0.76 million, a multiple on cost of 1.6x and an IRR of 8.5%.

Loan repayments and further proceeds during the period

On 16 October 2020, the Company received loan repayment proceeds of GBP0.13 million from Vian Marketing Limited (trading as Red Paddle Co.).

On 14 December 2020, the Company received deferred consideration of GBP0.05 million from Redline Worldwide Limited, an investment realised in a previous year.

New investments after the period end

On 18 February 2021, the Company made a new investment of GBP0.88 million into Vivacity Labs Limited, a developer of artificial intelligence and urban traffic control systems.

Further investments after the period end

On 7 January 2021, the Company made a further investment of GBP0.22 million into Parsley Box Limited, a supplier of home-delivered ambient meals for the elderly.

On 5 February 2021, the Company made a further investment of GBP0.09 million into Bleach London Holdings Limited, a hair colourants brand.

On 12 February 2021, the Company made a further investment of GBP0.39 million into Arkk Consulting Limited (trading as Arkk Solutions), a regulatory and reporting requirement service provider.

Admission to AIM of Virgin Wines UK plc

The Board is pleased to announce that, this morning, Virgin Wines UK plc ("Virgin Wines"), an existing portfolio company, was admitted to trading on the Alternative Investment Market ("AIM") of the London Stock Exchange, alongside a placing of new and existing shares. The Placing Price of these shares was GBP1.97 per share, valuing Virgin Wines at a market capitalisation of GBP110m. The Board and Mobeus Equity Partners LLP have been proud to partner the management of Virgin Wines in growing this business. We continue to support Virgin Wines and its future development and are pleased to be retaining the Company's entire equity holding in the investment.

The Company holds 3,078,059 shares in Virgin Wines. Based upon the Placing Price of GBP1.97 per share, the Company's investment in Virgin Wines is valued at GBP6.06 million. This represents a significant uplift in valuation of GBP3.09 million, compared to that included in the Company's Net Asset Value ("NAV") per share at 31 December 2020. In isolation, the impact of this uplift in valuation upon the Company's NAV per share as at 31 December 2020 of 87.22p is an increase of 4.21 pence per share. The Company emphasises that this increase in NAV per share is in isolation from other changes in the Company's balance sheet, including valuation and other transaction movements in the Company's investment portfolio, that may also have affected the NAV per share since 31 December 2020.

As part of this transaction, the Company will receive payment of its remaining loan stock of GBP1.25 million, leaving Virgin Wines ungeared at that point.

Other proceeds received after the period end

After the period end, on 27 January 2021, the Company received further proceeds of GBP0.15 million in respect of Blaze Signs Holdings Limited, an investment realised in a previous year.

S HARE BUY-BACKS

On 16 December 2020, the Company bought back 89,172 of its own ordinary shares at a price of 75.29 pence per share.

All shares bought back by the Company were subsequently cancelled.

Please note that all the information above is unaudited.

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

For further information, please contact:

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

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March 02, 2021 04:00 ET (09:00 GMT)