BRITISH SMALLER COMPANIES VCT 2 PLC British Smaller Companies VCT2 plc (BSC2) | |
Investor update | Winter 2023 |
The Company aims to build a diversified portfolio by investing in a variety of UK businesses spanning both established and emerging industries, all of which demonstrate potential for growth and innovation in their products and services.
Dear Shareholder
We are pleased to provide an update on the progress of British Smaller Companies VCT2 plc (BSC2).
Performance
In the quarter to 30 September 2023, BSC2 generated a 0.8 per cent return on its opening Net Asset Value of 57.95 pence, compared to a 0.1 per cent rise in the FTSE Small Cap. The Total Return at 30 September 2023 was up 0.45 pence at 143.15 pence per ordinary share.
Investments
We are continuing to see promising potential new investments, as well as opportunities to deploy funds into the existing portfolio to help our companies accelerate their growth plans. During the quarter, £1.6 million was invested into GEEIQ, a data and market intelligence platform in the gaming space, and a further £0.2 million was invested into portfolio company Elucidat.
Following the quarter end, follow-on investments of £0.5 million into Force24 and £0.3 million into Vuealta have been completed, taking the total invested in the current financial year to £10.0 million, following the £16.3 million invested in 2022, with a strong pipeline of opportunities currently under review.
Realisations
Post-period end, in November 2023, BSC2 exited its investment in E2E, a consultancy in the satellite industry, for £1.4 million, representing a 2.5x return on the company's cost. Also in November, the investment in MacroArt, a large scale branding and signage specialist, was realised for £1.0 million, representing a 2.0x return on cost for BSC2. These were both pleasing outcomes following challenging hold periods, and reflect the ethos of both YFM and BSC2 working hard to generate positive returns from all of their investments.
Dividends
An interim dividend of 1.5 pence per ordinary share was paid on 3 November 2023 to shareholders on the register on 6 October 2023, taking cumulative dividends paid in the year to 5.25 pence, a yield of 8.5 per cent on the NAV at the beginning of the year.
Regulatory Developments
In the Autumn Statement on 22 November 2023, the Government announced it would extend the sunset clause currently in place for Venture Capital Trusts until April 2035, and that it would include legislation to achieve this in the next Finance Bill.
Fundraising
The BSC VCTs invest in growing businesses located across the UK from YFM's five regional offices. YFM has invested heavily in its new deal capability, and this, as well as increased demand for equity investment provided by Venture Capital Trusts, has seen the BSC VCTs deploy c.£66 million over the last two years.
To meet the growing demand for further and new investment and ongoing cashflow requirements, the BSC VCTs are currently raising £65 million, with the option of a £25 million over-allotment facility of new investment funds, to take advantage of the high level and quality of investment opportunities available throughout the UK regions.
At the time of writing applications of c.£60 million have been received, of which c.£24 million relate to BSC2, and the BSC VCTs have announced that the full £25 million over-allotment facility will be utilised. The first allotment of £30 million of gross proceeds will take place between 29 and 31 January 2024. The second and final allotment will take place in early April 2024.
Investment Week Awards
In November we were thrilled with BSC2's award of Investment Company of the year in the VCT Generalist category of the Investment Week Awards 2023.
Investor Workshop
We were delighted to welcome around 150 shareholders to the recent online workshop, held on 27 November. Attendees heard from the CEO's of two BSC2 portfolio companies, DrDoctor and Traveltek, as well as receiving an update from the YFM team.
Thank you again for your continued support.
Eamon Nolan Managing Partner, YFM Equity Partners
Past performance is no guide to future performance and the value of an investment in British Smaller Companies VCT2 plc may go down as well as up and you may not get back the full amount invested.
bscfunds.com | Transforming small businesses |
British Smaller Companies VCT2 plc | Investor Update Winter 2023 |
Sector: Application Software
Location: East Kilbride
Deal type: Growth capital
Investment date(s): 2016, 2018, 2019
Website: traveltek.com
"YFM are an incredibly proactive and forward thinking organisation, who support and empower their management teams to get on and 'do the job'. YFM identified an opportunity to accelerate the growth in Traveltek, both in the UK and now globally. I am personally incredibly excited about the next chapter and look forward to working with YFM to create optimum value for its stakeholders and investors."
BSC2 Investment Rate Of Return
Annualised rate of return per annum over
10, 5, 3, 2 and 1 year periods* to 30 September 2023.
15% | |||||
14.8% | |||||
10% | |||||
9.7% | |||||
5% | 6.2% | 5.9% | |||
4.2% | |||||
0% | 10 yrs | 5 yrs | 3 yrs | 2 yrs | 1yr |
*Excluding all tax reliefs
139.5 | 142.6 | 143.15 | ||
121.7 | 125.0 | 61.6 | 58.4 | |
61.5 | ||||
55.2 55.0
78.0 | 81.0 | 84.75 |
66.5 70.0
2019 | 2020 | 2021 | 2022 | 30 Sep 2023 |
Total Return (pps) | NAV (pps) | Cumulative dividends (pps) |
As at 31 December unless otherwise stated
REGISTER REMINDER : DON'T FORGET TO SIGN UP TO THE HUB
Following the Company's change of share registrar last year to The City Partnership (UK) Limited (City), all shareholders were issued with unique CIN numbers and an Investor Access Token which were needed to register for a new account on the Shareholder Hub. If you haven't already done so, you can register for the Hub by visiting https://bsc-funds.cityhub.uk.com/ and clicking on the Register tab. If you are a shareholder in both BSC2 and BSC you will need to enter a relevant Investor Access Token for each VCT. If you have any problems and/or you need a new Access Token, then City will be able to assist. Their telephone number is 01484 240910 or you can email them at registrars@city.uk.com
The Hub is an on-demand online tool that allows you to:
- View your shareholding and associated indicative valuation
- View your transaction history, share certificate details and dividend information
- Change your personal details as held on the register (including your address, email and bank account details)
- Select how you wish to receive shareholder communications
British Smaller Companies VCT2 plc | Investor Update Winter 2023 |
Portfolio Update
The quarter to 30 September 2023 continued to show underlying growth for many of the services and products offered by our companies and delivered a gain of £1.3 million (after adjusting for additions and disposals) of which £0.7 million came from Unbiased, with a further £0.4 million from E2E and MacroArt which were realised shortly after the quarter end, with proceeds received in line with the respective valuations at 30 September.
Unaudited | Valuation | Unaudited | Cumulative | ||||
investment | gains (losses) | investment | |||||
% of net | |||||||
valuation at | Proceeds | Additions | including profits | valuation at | |||
Company | Website | 30 Jun 2023 | on disposal | 30 Sep 2023 | asset value of | ||
£000 | £000 | £000 | £000 | £000 | £133.5m | ||
Matillion | matillion.com | 21,022 | - | - | 292 | 21,314 | 16.0% |
Unbiased | unbiased.co.uk | 7,008 | - | - | 700 | 7,708 | 21.7% |
Outpost | outpost-vfx.com | 5,786 | - | - | 171 | 5,957 | 26.2% |
DisplayPlan | displayplan.com | 4,754 | - | - | (117) | 4,637 | 29.7% |
Elucidat | elucidat.com | 4,151 | - | 200 | (21) | 4,330 | 32.9% |
Wooshii | wooshii.com | 4,654 | - | - | (650) | 4,004 | 35.9% |
Force24 | force24.co.uk | 3,172 | - | - | 23 | 3,195 | 38.3% |
ACC Aviation | accaviation.com | 2,741 | - | - | 208 | 2,949 | 40.5% |
Vypr | vyprclients.com | 2,772 | - | - | (26) | 2,746 | 42.6% |
Quality Clouds | qualityclouds.com | 2,688 | - | - | (60) | 2,628 | 44.5% |
Top 10 total | 58,748 | - | 200 | 520 | 59,468 | 44.5% | |
Remainder of unquoted portfolio | 30,426 | - | 1,572 | 808 | 32,806 | 69.1% | |
Total portfolio | 89,174 | - | 1,772 | 1,328 | 92,274 | 69.1% | |
Portfolio at a Glance
Industry Sector (%) | Age Of Investment (%) | Value Compared to Cost (%) | Investment Instrument (%) |
P L
Data: 29% | Less than 1 year: 14% | Value above cost: 89% | Ordinary shares: 93% | ||
Application Software: 20% | 1 - 3 years: 19% | At cost: 7% | P | Preference shares | 7% |
Tech-enabled Services: 17% | 3 - 5 years: 25% | Value below cost: 4% | L | Loan | |
New Media: 11% | 5+ years: 42% | ||||
Business Services: 10% |
Cloud & DevOps: 8% | |
Retail & Brands: 4% | Data source: Based on BSC2 Valuations at 30 September 2023 |
Other: 1% | |
bscfunds.com | Transforming small businesses |
British Smaller Companies VCT2 plc | Investor Update Winter 2023 | ||||||||||||||||||||||
Key Dates | 2023 | 2024 | 2024 | 2024 | |||||||||||||||||||
27 November | 29-31January | 2-4 April | June | ||||||||||||||||||||
End of | End of | Half | |||||||||||||||||||||
Shareholder | Year | First allotment | Final allotment | First quarter | |||||||||||||||||||
Third | workshop | of shares | First | of shares | results | Year | |||||||||||||||||
Quarter | webinar | End | under Offers | Quarter | under Offers | announced | End | ||||||||||||||||
30 Sep | 31 Dec | 31 Mar | 30 Jun | ||||||||||||||||||||
2023 | 2023 | 2024 | 2024 | ||||||||||||||||||||
November | March | 13 June | 20 June | ||||||||||||||||||||
2023 | 2024 | 2024 | 2024 | ||||||||||||||||||||
Third quarter | Year end | ||||||||||||||||||||||
AGM | Shareholder | ||||||||||||||||||||||
results | results | workshop | |||||||||||||||||||||
announced | announced | ||||||||||||||||||||||
For your Records - Dividends and Dates
The table below displays the dates when BSC2 dividends have been, or will be paid, and we hope you find it useful in keeping and checking your records.
Date paid | Pence per share | Date paid | Pence per share | Date paid | Pence per share | ||||||||||||
Cumulative to 31 December 2010 | 26.00 | 28 | September 2015 | 2.00 | 12 | May 2020 | 2.00 | ||||||||||
21 | September 2020 | ||||||||||||||||
10 | June 2011 | 2.00 | 9 May 2016 | 2.50 | 1.50 | ||||||||||||
5 | March 2021 | ||||||||||||||||
8 | September 2011 | 2.00 | 26 | September 2016 | 2.00 | 1.50 | |||||||||||
25 | October 2021 | ||||||||||||||||
22 | May 2012 | 2.00 | 12 | May 2017 | 1.50 | 1.50 | |||||||||||
26 | October 2012 | 2.50 | 29 | September 2017 | 1.50 | 16 | November 2021 | 5.00 | |||||||||
5 | June 2013 | 2.50 | 11 | May 2018 | 1.50 | 6 | May 2022 | 1.50 | |||||||||
3 | October 2022 | ||||||||||||||||
27 | September 2013 | 2.00 | 28 | September 2018 | 1.50 | 1.50 | |||||||||||
30 | June 2014 | 2.50 | 15 | February 2019 | 5.00 | 11 | January 2023 | 2.25 | |||||||||
26 | June 2023 | ||||||||||||||||
7 | October 2014 | 2.00 | 10 | May 2019 | 1.50 | 1.50 | |||||||||||
Cumulative to 30 September 2023 | 84.75 | ||||||||||||||||
8 | June 2015 | 2.50 | 13 | September 2019 | 1.50 | ||||||||||||
3 | November 2023 | 1.50 |
Important notice
This Investor Update is for information only. It has been provided to help you understand how the fund is invested and performing. It is not an offer to invest in
the Company and should not be used for making investment decisions. Please contact your financial adviser if you require further explanation or advice.
Past performance is no guide to future performance and the value of an investment in British Smaller Companies VCT2 plc ("the Company") may go down as well as up and you may not get back the full amount invested.
Nothing within this Investor Update should be construed as investment, tax, legal or other advice. Tax treatment depends on individual circumstances, and may be subject to change in the future.
This Investor Update has been issued by YFM Private Equity Limited ("YFM"), which is authorised and regulated by the Financial Conduct Authority (FRN: 122120). YFM is the Fund Manager to the Company. YFM Private Equity Limited is ultimately owned by YFM Equity Partners LLP which is registered in England and Wales No: OC384467. Registered Office: 5th Floor, Valiant Building, 14 South Parade, Leeds LS1 5QS.
Contact us
Please call or email for further information on any shareholder issue, including switching to direct dividend payments, and for more details on the shareholder workshop.
● Dividends | Tracey Nice |
● Registrar | Investor Relations Manager |
● General | 0113 261 6478 or 07500 330986 |
tracey.nice@yfmep.com | |
bscfunds.com |
bscfunds.com | Transforming small businesses |
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Disclaimer
British Smaller Companies VCT2 plc published this content on 19 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 December 2023 09:39:11 UTC.
