Half-Year Report (6 months to June 2022)

For the six months to 30 June 2022

Chairman’s Statement

The Net Asset Value (NAV) of your fund declined by 28.3% to 59.7p, compared to the FSTE AIM Allshare index which declined by 28% over the same period.

We made five further investments in the period, investing in Clean Power Hydrogen PLC, Destiny Pharma PLC, Strip Tinning Holdings PLC, Truspine Technologies PLC and Verici Dx PLC. These new investments have either a healthcare or technology bias where we have seen an increased amount of interest from investors.

We made five sales where we either exited or top-sliced a holding, and within this number there was a take-over of our holding in Cloudcall PLC which was acquired by Xplorer Capital Management for cash.

It has a been a particularly tricky period for the fund as investors became nervous of inflationary pressures, interest rate rises, constrained supply chains and the war in the Ukraine all caused a general lack of appetite and liquidity in many small companies. Whilst we acknowledge the performance of the fund has been disappointing, it has performed in line with its benchmark, and indeed over the past 3 years, from 2 August 2019 to 2 August 2022, it is the only AIM VCT fund to have produced a positive NAV performance (source: Citywire).

We continue to have a wide spread of established companies across a variety of sectors within the fund and whilst we hope your fund will perform over the rest of the year, we are mindful that we could see further volatility in the months ahead.

Geoff Gamble

Chairman

11 August 2022

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Balance Sheet

		Interim Accounts			Final Accounts			Interim Accounts
		as at 30 June 2022			as at 31 December 2021*			as at 30 June 2021
		£’000	£’000		£’000	£’000		£’000	£’000
Fixed Assets
	Investments		2,679			3,772			3,853
Current Assets
	Uninvested cash	356	356		88	88		340	340
Current Liabilities
	Creditors: amounts due
	within one year		(7)			(20)			(13)
			3,028			3,840			4,180
Capital and Reserves
	Share capital		507			461			461
	Share premium		382			57			57
	Capital redemption reserve		171			171			171
	Special distributable reserve		3,118			3,118			3,440
	Capital reserve – realised		(24)			(236)			(419)
	Capital reserve – unrealised		(1,007)			334			515
	Revenue reserve		(119)			(65)			(45)
			3,028			3,840			4,180
Net Asset Value per share			59.7p			83.3p			90.7p
					*Audited

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

			6 month period ended 30 June 2022			Year to 31 December 2021*			6 month period ended 30 June 2021
			Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
			£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Gains/(losses) on investments
Realised			–	37	37	–	427	427	–	246	246
Unrealised			–	(1,154)	(1,154)	–	714	714	–	878	878
Income			15	–	15	28	–	28	13	–	13
Investment management fees			(4)	(12)	(16)	(10)	(30)	(40)	(5)	(15)	(20)
Other expenses			(65)	–	(65)	(57)	–	(57)	(27)	–	(27)
Return on ordinary activities			(54)	(1,129)	(1,183)	(39)	1,112	1,073	(19)	1,109	1,090
Tax on ordinary activities			–	–	–	–	–	–	–	–	–
Return on ordinary activities
after taxation			(54)	(1,129)	(1,183)	(39)	1,112	1,073	(19)	1,109	1,090
Return per ordinary share in pence			(1.09)	(23.07)	(24.16)	(0.85)	24.13	23.28	(0.42)	24.08	23.66
						*Audited
All revenue and capital items in the above statement are from continuing operations in the current six month period. No operations were acquired or discontinued in the current period. Other than that shown above, the company had no recognised gains or losses. Accordingly, the above represents the total comprehensive income for the period.
The weighted average number of shares in issue during the period was 4,894,566.

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Consolidated Statement of Changes in Equity

Called-up share capital £’000

Share Premium account £’000

Capital Redemption reserve £’000

Special distributable reserve £’000

Capitalr ealised £’000

Capital unrealised £’000

Revenue reserve £’000

Total £’000

As at 1 January 2022

461

57

171

3,118

(236)

334

(65)

3,840

Realised gains on disposals in period

–

–

–

–

37

–

–

37

Unrealised losses

–

–

–

–

–

(1,154)

–

(1,154)

Transfer of unrealised gain to realised on disposal of investment

–

–

–

–

187

(187)

–

–

Net revenue before tax

–

–

–

–

–

–

(54)

(54)

New shares issued

46

325

–

–

–

–

–

371

Investment management fee

–

–

–

–

(12)

–

–

(12)

________

________

_________

_________

_______

________

________

________

At 30 June 2022

507

382

171

3,118

(24)

(1,007)

(119)

3,028

As at 1 January 2021

461

57

171

3,440

(605)

(408)

(26)

3,090

Realised gains on disposals

–

–

–

–

427

–

–

427

Unrealised gains

–

–

–

–

–

714

–

714

Transfer of unrealised loss to realised on disposal of investment

–

–

–

–

(28)

28

–

–

Net revenue before tax

–

–

–

–

–

–

(39)

(39)

Investment management fee

–

–

–

–

(30)

–

–

(30)

Dividends paid

–

–

–

(322)

–

–

–

(322)

________

________

_________

_________

________

________

________

________

At 31 December 2021

461

57

171

3,118

(236)

334

(65)

3,840

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Consolidated Statement of Changes in Equity (continued)

	Called-up share capital£’000	Share Premium account £’000	Capital Redemption reserve £’000	Special distributable reserve £’000	Capital realised £’000	Capital unrealised £’000	Revenue reserve £’000	Total£’000
As at 1 January 2021	461	57	171	3,440	(605)	(408)	(26)	3,090
Realised gains on disposals	–	–	–	–	246	–	–	246
Unrealised gains	–	–	–	–	–	878	–	878
Transfer of unrealised loss to realised on disposal of investment	–	–	–	–	(45)	45	–	–
Net revenue before tax	–	–	–	–	–	–	(19)	(19)
Investment management fee	–	–	–	–	(15)	–	–	(15)
	________	________	_________	_________	________	________	________	________
At 30 June 2021	461	57	171	3,440	(419)	515	(45)	4,180

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Unaudited Cash Flow Statement

		Six month period ended 30 June 2022												Year to 31 December 2021*													Six month period ended 30 June 2021
		£’000				£’000								£’000						£’000							£’000						£’000
Net cash generated from operating activities						(93)													(96)													(53)
Cash flow from investing activities
Investment income						15													28													13
Cash flows from financing activities
Sale of investments		283											907													577
Purchase of investments		(308)											(485)													(254)
Share issue		371											–													–
Dividends paid		–											(322)													–
						346													99													323
Net increase in cash and cash equivalents						268													31													283
Cash and cash equivalents at beginning of period						88								57																			57
Cash and cash equivalents at end of period						356								88																			340
														*Audited

New Century AIM VCT 2 plc
For the six months to 30 June 2022

Investment Portfolio

	Security	Cost	Valuation	%	%
			30 June 2022	Cost	Valuation
	Qualifying Investments	3,425,813	2,547,303	84.76	83.92
	Non-qualifying Investments	259,978	132,101	6.43	4.35
	Uninvested funds	355,950	355,950	8.81	11.73
		4,041,741	3,035,355	100.00	100.00
	Qualifying Investments
	AIM Quoted
	Abingdon Health plc	35,218	4,008	0.87	0.13
	Access Intelligence plc	10,053	24,500	0.25	0.81
	Actual Experience plc	63,174	1,634	1.56	0.05
	AFC Energy plc	50,254	64,313	1.24	2.12
	Anglo African Oil & Gas plc	65,329	0	1.62	0.00
	Arecor Therapeutic plc	12,818	18,788	0.32	0.62
	Audioboom Group plc	54,112	202,356	1.34	6.67
	Belluscura plc	52,263	99,724	1.29	3.29
	Blackbird plc	18,845	74,625	0.47	2.46
	Brighton Pier Group plc	35,379	18,260	0.88	0.60
	C4X Discovery Holdings plc	35,179	54,250	0.87	1.79
	Clean Power Hydrogen plc	50,253	37,778	1.24	1.24
	Cloudbuy plc	41,896	153	1.04	0.01
	Coral Products plc	25,104	26,825	0.62	0.88
	Creo Medical Group plc	20,504	24,158	0.51	0.80
	CyanConnode Holdngs plc	204,219	9,606	5.05	0.32
	Deepmatter plc	50,253	3,333	1.24	0.11
	Deepverge plc	93,203	16,014	2.31	0.53
	Destiny Pharma plc	175,882	130,769	4.35	4.31
	Diaceutics plc	10,314	12,285	0.26	0.40
	DP Poland plc	25,631	10,540	0.63	0.35
	ECSC Group plc	20,104	13,091	0.50	0.43
	Eden Research plc	21,107	13,300	0.52	0.44
	Falanx Group Ltd	85,234	35,210	2.11	1.16
	Feedback plc	100,511	70,857	2.49	2.33
	Fusion Antibodies plc	12,064	5,867	0.30	0.19
	Gfinity plc	33,229	12,733	0.82	0.42
	Immotion Group plc	95,486	44,417	2.36	1.46
	I-Nexus Global plc	30,153	1,519	0.75	0.05
	Inspired Energy plc	33,641	146,475	0.83	4.83
	Intelligent Ultrasound Group plc	95,482	110,268	2.36	3.63
	Keywords Studios plc	2,226	39,456	0.06	1.30
	Kinovo plc	52,465	13,635	1.30	0.45
	Libertine Holdings plc	125,628	131,250	3.11	4.32

	Security	Cost	Valuation	%	%
			30 June 2022	Cost	Valuation
	Lightwaverf plc	30,158	1,765	0.75	0.06
	Location Sciences Group plc	72,643	5,527	1.80	0.18
	Loopup Group plc	15,078	860	0.37	0.03
	Lunglife AI Inc	20,104	15,910	0.50	0.52
	M.Winkworth plc	56,280	108,500	1.39	3.57
	Marechale Capital plc	75,752	16,500	1.87	0.54
	Microsaic Systems plc	142,261	2,369	3.52	0.08
	Mirriad Advertising plc	30,154	11,625	0.75	0.38
	MyHealthChecked plc	103,202	87,106	2.55	2.87
	N4 Pharma plc	40,204	8,760	0.99	0.29
	Pelatro plc	25,128	10,800	0.62	0.36
	PHSC plc	50,256	50,000	1.24	1.65
	Polarean Imaging plc	16,334	48,696	0.40	1.60
	Property Franchise Group plc	54,750	142,245	1.35	4.69
	Quixant plc	8,091	26,600	0.20	0.88
	Rosslyn Data Technologies plc	23,219	1,288	0.57	0.04
	Scancell Holdings plc	45,233	41,681	1.12	1.37
	Scholium Group plc	40,203	16,000	0.99	0.53
	SEEEN plc	50,257	13,778	1.24	0.45
	Smoove plc	18,091	25,650	0.45	0.85
	Solid State plc	35,248	162,299	0.87	5.35
	SRT Marine Systems plc	4,523	7,750	0.11	0.26
	Strip Tinning plc	15,890	8,118	0.39	0.27
	Sysgroup plc	45,232	18,750	1.12	0.62
	TP Group plc	160,062	9,723	3.96	0.32
	Trellus Health plc	25,128	8,125	0.62	0.27
	Tristel plc	1,651	14,060	0.04	0.46
	Verici Dx plc	101,505	83,254	2.51	2.74
	XP Factory plc	31,006	3,770	0.77	0.12
	Yourgene Health plc	40,204	12,460	0.99	0.41
	Yu Group plc	20,504	20,949	0.51	0.69
		3,235,562	2,456,913	80.05	80.94
	Qualifying Investments
	AQSE Quoted
	Sulnox Grp plc	35,279	19,890	0.87	0.66
	Truspine Technology plc	100,283	70,500	2.48	2.32
		135,562	90,390	3.35	2.98
	Qualifying Investments
	Unlisted Investments
	Outsourcery plc	28,143	0	0.70	0.00
	Syqic plc	26,546	0	0.66	0.00
		54,689	0	1.36	0.00
	Total qualifying investments	3,425,813	2,547,303	84.76	83.92
	Security	Cost	Valuation	%	%
			30 June 2022	Cost	Valuation
	Non Qualifying Investments
	AIM Quoted
	Audioboom Group plc	1,163	924	0.03	0.03
	Rotala plc	27,683	21,910	0.68	0.72
	Tristel plc	60	352	0.00	0.01
		28,906	23,186	0.71	0.76
	Non Qualifying Investments
	UK Listed
	Investec plc	169,415	101,175	4.19	3.33
	Twentyfour Income Fund Ltd	9,852	7,740	0.25	0.26
		179,267	108,915	4.44	3.59
	Non Qualifying Investments
	Unlisted Investments
	China Food Co plc	31,547	0	0.78	0.00
	Sorbic International plc	10,205	0	0.25	0.00
	Mar City plc	10,053	0	0.25	0.00
		51,805	0	1.28	0.00
	Total non-qualifying investments	259,978	132,101	6.43	4.35

New Century AIM VCT 2 plc

Notes to the Accounts
For the six months to 30 June 2022

This interim financial information and the unaudited interim accounts for the six months to 30 June 2022 from which it has been extracted, are the responsibility of the directors and were approved by them on 11 August 2022, do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 and have not been delivered to the Registrar of Companies.

The Company is an investment company as defined in Section 833 of the Companies Act 2006. The unaudited interim accounts have been prepared in accordance with the Financial Reporting Council’s (FRC) Financial Reporting Standard 104 Interim Financial Reporting (January 2022) and with the Statement of Recommended Practice for Investment Companies re-issued by the Association of Investment Companies in November 2014 and updated in July 2022.

The unaudited interim accounts have been prepared using accounting policies that the Company applied in the accounts for the year ending 31 December 2021, incorporating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The Company considers these accounting policies will be used in the accounts for the year ending 31 December 2022.

Listed, AIM or AQUIS Markets – traded investments are stated at market value, which is based upon market bid prices in an active market at the balance sheet date. These would all meet tier 1 of the fair value hierarchy.

4,606,953 Ordinary Shares of 10 pence each were in issue from 1 January 2022 until 8 March 2022. On the 9 March 2022 the Company issued 460,690 new shares at a price of 80.47p per share. At the 30 June 2022 there were 5,067,643 shares in issue. The average weighted number of shares in issue in the period was 4,894,566.

Net Asset Value per share at 30 June 2022 was 59.7p (at 31 December 2021: 83.3p; 30 June 2021: 90.7p).

No dividend was paid in the period.

There have not been any significant events since the balance sheet date.

New Century AIM VCT 2 plc is managed by Oberon Investments Limited (‘OIL’). Under the terms of the management agreement, OIL is entitled to a fee (exclusive of VAT) equal to 1% per annum of the net assets of the Company. During the period the management fee was £16k (the year ended 31 December 2021, £40k; the period ended 30 June 2021, £20k).

Bearing in mind that the assets of the Company consist mainly of marketable securities, the directors are of the opinion that at the time of approving this interim financial information, the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing this interim financial information.

Copies of the Interim Report to Shareholders have been sent to shareholders and are available at the Company’s Registered Office: Tricor Secretaries Ltd, 4th Floor, 50 Mark Lane, London EC3R 7QR.

New Century AIM VCT 2 plc

Directors, Investment Managers and Advisors

Directors	Geoffrey Charles Gamble (Chairman)
	Michael David Barnard
	Peter William Riley
	Ian Cameron-MowatSimon Like
Secretary	Tricor Secretaries Ltd
and registered office	4th Floor, 50 Mark Lane
	London EC3R 7QR
Registrar	Neville Registrars LimitedNeville HouseSteelpark RoadHalesowenWest Midlands B62 8HD
Solicitors	Dundas & Wilson5th Floor, Northwest WingBush HouseAldwychLondon WC2B 4EZ
Investment Manager and Broker	Oberon Investments Limited
	1st Floor12 Hornsby SquareSouthfields Business Park
	BasildonEssex SS15 6SD
Auditor	Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP