Interim Management Statement
July 14 2011 - 1:30PM
UK Regulatory
TIDMFAMT
Framlington AIM VCT 2 PLC
First interim management statement for the year ending 28 February 2012
To the members of Framlington AIM VCT 2 PLC
This is the Company's first interim management statement for the year ending 28
February 2012 and covers the period to 31 May 2011. This statement has been
produced to comply with the requirements of the Disclosure and Transparency
Rules issued by the UKLA and should not be relied upon by any other party or
for any other purpose.
Investment objective
The Company's investment objective is to achieve long term capital growth
primarily through investment in a diversified portfolio of qualifying companies
quoted on AIM. It is expected that realised capital gains, along with income,
will be returned to the shareholders, at the discretion of the Directors,
through the payment of dividends. The Investment Manager may also invest the
assets of the Company in companies traded on the PLUS Market trading facility
and in unquoted stocks, although this is not currently expected to be
significant.
The majority of the Company's investments will be in newly issued shares, as it
is a VCT requirement that 70% of the funds raised pursuant to the offer be
invested in new issues of shares that qualify as qualifying holdings within
three years of the share issue. The Company had to meet this requirement by 28
February 2009 and now has to comply on an on-going basis. At 31 May 2011, 88%
of the portfolio was invested in qualifying holdings.
Qualifying holdings are defined as holdings of shares or securities in unquoted
(including AIM and PLUS Market) companies whose purpose is to carry on a
qualifying trade wholly or mainly in the UK. Sectors that are excluded include
property, financial services and commodities. Companies must not be controlled
by the VCT or any other company. At the end of three years, up to 30% of a
VCT's assets can be invested in non-qualifying investments such as bank
deposits, gilts and fixed interest stock. At least 30% of the VCT's qualifying
holdings must be ordinary shares with no preferential rights. The remainder can
be in loans of at least five years' duration, or preference shares.
The size of companies in which the Company may invest is limited by the VCT
rules. Qualifying holdings, as defined above, must have gross assets of GBP15
million or less immediately prior to investment and GBP16 million or less
immediately after investment. Although the companies in which the Company
invests are small, the risk that this entails is mitigated by the
diversification of holdings which results from the requirement to invest 70% of
funds raised in qualifying holdings.
The maximum exposure to any one stock or group, other than another VCT, is 15%
of the Company's investments.
The Company's borrowings must be restricted to an amount which is less than 10%
of the Company's issued share capital and reserves.
Capital structure
The Company had one class of share capital: ordinary shares of 10 pence each.
The Company's issued share capital at the date of this announcement is
29,083,299 ordinary shares of 10 pence each.
Material events and transactions
During the period to 31 May 2011, a further GBP701,000 was invested, all of which
was in AIM quoted qualifying holdings: Futura Medical PLC (a pharmaceutical
group that develops innovative products for the consumer healthcare market),
Plethora Solutions Holdings PLC (a speciality pharmaceutical company) and
Norman Broadbent PLC (executive search and consultancy). GBP815,000 was raised
through the disposal of investments. The majority of the disposal proceeds came
from the redemption of the holding in Treasury 4.25% Stock 2011.
Final dividends for the year ended 28 February 2011, totalling 4.0 pence per
share, will be paid on 2 August 2011 to shareholders on the register on 1 July
2011, following approval by shareholders at the annual general meeting on 28
July 2011.
NAV and total assets at 31 May 2011
31 May 2011 28 February Decrease
2011
%
Net asset value per share 51.77p 55.02p 5.9
(investments at bid value,
including current year revenue)
Net asset value per share 71.77p 75.02p 4.3
including cumulative dividends
paid to date
Net assets GBP15.1 million GBP16.2 million 6.8
Share price (mid market) 37.0p 41.0p 9.8
At 31 May 2011, 88% of the portfolio was invested in qualifying holdings.
The net asset value at 8 July 2011 was 47.79 pence per share, after providing
for the dividend of 4.0 pence per share which is payable on 2 August 2011.
Ten largest holdings at 31 May 2011
Value at % of net
31.05.11 assets at
31.05.11
GBP000s
Allied Domecq Financial Service 6.625% NTS 12/ 1,595 10.6
06
Craneware 1,316 8.7
London Italian Restaurants* 884 5.9
Locale Enterprises* 665 4.4
AFC Energy 650 4.3
Brulines Holdings 596 3.9
EKF Diagnostics 513 3.4
Sinclair Pharma 474 3.1
Vertu Motors 440 2.9
Photonstar LED 437 2.9
* unquoted investment
Company information
Year end: 28 February
Results:
Interim results to 31 August 2011 announced October 2011
Final results to 28 February 2012 announced June 2012
Dividend: Dividend payable 2 August 2011
All performance data source: AXA Framlington and Lipper. Past performance is
not a guide to future returns.
By order of the board
AXA Investment Managers UK Limited
Company Secretary to Framlington AIM VCT 2 PLC
7 Newgate Street, London EC1A 7NX
14 July 2011
Further information on the Company, including the annual report and accounts
for the year ended 28 February 2011, the interim report and accounts for the
six months ended 31 August 2010, the weekly net asset value and the share
price, is available from the Manager's website www.axaframlington.com.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
END
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