Half-Year Report (6 months to June 2019)

For the six months to 30^th June 2019

Chairman’s Statement

It is pleasing to report that following a difficult end to last year when the Markets had a large set back, your fund has returned a positive performance for the six months to 30 June 2019.

The net asset value (NAV) of your fund increased by 10.42% to 53p, whereas the FSTE AIM Allshare index gained 7.11% over the same period.

We made six further investments in the period, investing in Concepta plc, Diaceutics plc, Immotion Group plc, Integumen plc, LightwaveRF plc and N4 Pharma plc.

We made 9 sales where we either exited or top-sliced a holding.

The current uncertainty with regards to BREXIT looks set to carry on until the end of October and the USA and China trade wars continue. Throughout these uncertain times we are still seeing some interesting investment opportunities from companies seeking growth capital listed on AIM. There has also been some corporate activity where we received take over approaches on two of our investments, EU Supply and Premier Technical Services Group.

We have a wide spread of established companies across a variety of sectors within the fund that we hope can weather any of the volatility that may occur in the period ahead.

It is these factors above that give us cautious optimism for the remainder of the year.

Geoff Gamble

Chairman

29 August 2019

New Century AIM VCT2 plc

For the six months to 30^th June 2019

Unaudited Balance Sheet

				Interim Accounts						Final Accounts						Interim Accounts
				as at 30 June 2019						as at 31 December 2018*						as at 30 June 2018
				£’000		£’000				£’000		£’000				£’000		£’000
Fixed Assets
		Investments				2,465						2,214						3,124
Current Assets
		Uninvested cash		4		4				31		31				67		67
Current Liabilities
		Creditors: amounts due
		within one year				(6)						(16)						(8)
						2,463						2,229						3,183
Capital and Reserves
		Share capital				461						461						461
		Share premium				57						57						57
		Capital redemption reserve				171						171						171
		Capital reserve-distributable				3,440						3,440						3,440
		Capital reserve – realised				(1,072)						(1,185)						(1,406)
		Capital reserve – unrealised				(786)						(916)						103
		Revenue reserve				192						201						357
						2,463						2,229						3,183
Net Asset Value per share						53p						48p						69p
										*Audited

New Century AIM VCT2 plc

For the six months to 30^th June 2019

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

						6 month period ended 30 June 2019						Year to 31 December 2018*						6 month period ended 30 June 2018
						Revenue		Capital		Total		Revenue		Capital		Total		Revenue		Capital		Total
						£’000		£’000		£’000		£’000		£’000		£’000		£’000		£’000		£’000
Gains/(losses) on investments
Realised						–		46		46		–		121		121		–		82		82
Unrealised						–		206		206		–		(850)		(850)		–		(22)		(22)
Income						15		–		15		46		–		46		14		–		14
Investment management fees						(3)		(9)		(12)		(8)		(22)		(30)		(4)		(13)		(17)
Other expenses						(21)		–		(21)		(52)		–		(52)		(20)		–		(20)
Return on ordinary activities						(9)		243		234		(14)		(751)		(765)		(10)		47		37
Tax on ordinary activities						–		–		–		–		–		–		–		–		–
Return on ordinary activities
after taxation						(9)		243		234		(14)		(751)		(765)		(10)		47		37
Return per ordinary share in pence						(0.20)		5.28		5.08		(0.31)		(16.30)		(16.61)		(0.22)		1.02		0.80
												*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 4,606,953.

New Century AIM VCT2 plc

For the six months to 30^th June 2019

Unaudited Consolidated Statement of Changes in Equity

Called-up share capital£’000

Share Premium account £’000

Capital Redemption reserve £’000

Capital Reserve- distributable £’000

Capitalrealised £’000

Capitalunrealised £’000

Revenue reserve £’000

Total£’000

As at 1 January 2019

461

57

171

3,440

(1,185)

(916)

201

2,229

Realised gains on disposals in period

–

–

–

–

46

–

–

46

Unrealised gain

–

–

–

–

–

206

–

206

Transfer of unrealised gain to realised on disposal of investment

–

–

–

–

76

(76)

–

–

Net revenue before tax

–

–

–

–

–

–

(9)

(9)

Investment management fee

–

–

—

–

(9) (10)

–

–

(9)(10)

________

________

_________

_________

________

________

________

________

At 30 June 2019

461

57

171

3,440

(1072)

(786)

192

2,463

As at 1 January 2018

461

57

171

3,440

(1,537)

187

367

3,146

Realised gains on disposals

–

–

–

–

82

–

–

82

Unrealised gains

–

–

–

–

–

(22)

–

(22)

Transfer of unrealised loss to realised on disposal of investment

–

–

–

–

62

(62)

–

–

Net revenue before tax

–

–

–

–

–

–

(24)

(24)

Investment management fee

–

–

–

–

(13)

–

–

(13)

________

________

_________

_________

________

________

________

________

At 30 June 2018

461

57

171

3,440

(1,406)

103

357

3,183

New Century AIM VCT2 plc

For the six months to 30^th June 2019

Unaudited Cash Flow Statement

	Six month period ended 30 June 2019				Year to 31 December 2018*				Six month period ended 30 June 2018
	£’000		£’000		£’000		£’000		£’000		£’000
Net cash generated from operating activities			(43)				(84)				(47)
Cash flow from investing activities
Interest received	–				–				–
Investment income	15				46				14
			15				46				14
Cash flows from financing activities
Sale of investments	227				572				249
Purchase of investments	(226)				(388)				(186)
Dividend paid	–				(152)				–
			1				32				63
Net decrease in cash and cash equivalents			(27)				(6)				(30)
Cash and cash equivalents at beginning of period			31				37				37
Cash and cash equivalents at end of period			4				31				67
					*Audited

New Century AIM VCT2 plc

For the six months to 30^th June 2019

Investment Portfolio

		Security		Cost		Valuation		%		%
						30 June 2019		Cost		Valuation
		Qualifying Investments		2,902,381		2,318,067		91.01		93.87
		Non-qualifying Investments		282,818		147,528		8.87		5.97
		Uninvested funds		3,872		3,872		0.12		0.16
				3,189,071		2,469,467		100.00		100.00
		Qualifying Investments
		AIM Quoted
		Marechale Capital plc		75,752		4,875		2.37		0.19
		HML Holdings plc		94,972		115,500		2.98		4.67
		TP Group plc		160,062		50,860		5.02		2.06
		Tristel plc		3,715		25,200		0.11		1.02
		Cyanconnode Holdings plc		204,219		4,515		6.40		0.18
		M.Winkworth plc		56,280		80,500		1.76		3.26
		Inspired Energy plc		33,641		136,500		1.05		5.52
		Microsaic Systems plc		142,261		50,544		4.46		2.04
		Open Orphan plc		155,184		40,188		4.86		1.63
		DP Poland plc		25,631		13,600		0.80		0.55
		Modern Water plc		75,385		9,818		2.36		0.40
		Quixant plc		8,091		38,500		0.25		1.56
		Keywords Studios plc		7,666		113,150		0.24		4.58
		Sanderson Group plc		15,204		35,200		0.48		1.43
		Cloudbuy plc		41,896		1,952		1.31		0.08
		PHSC plc		50,256		18,000		1.58		0.73
		EU Supply plc		19,422		15,048		0.61		0.61
		Synnovia plc		33,168		29,040		1.04		1.18
		Sysgroup plc		45,232		30,750		1.42		1.25
		Brighton Pier Group plc		35,379		13,640		1.11		0.55
		Property Franchise Group plc		50,253		80,500		1.58		3.26
		Solid State plc		35,248		70,426		1.11		2.85
		Audioboom Group plc		148,252		114,000		4.65		4.62
		Scholium Group plc		40,203		16,000		1.26		0.65
		Rosslyn Data Technologies plc		23,219		4,900		0.73		0.20
		Coral Products plc		25,104		15,725		0.79		0.64
		SRT Marine Systems plc		18,093		32,500		0.57		1.32
		ULS Technology plc		18,091		33,930		0.57		1.37
		Premier Technical Services Group plc		26,288		104,121		0.82		4.22
		Angle plc		75,128		69,000		2.36		2.79
		Bilby plc		52,465		27,900		1.65		1.13
		Hunters Property plc		50,253		35,000		1.58		1.42
		Bigblu Broadband plc		29,247		45,267		0.92		1.83
		Tekcapital plc		82,292		39,875		2.58		1.61

		Security		Cost		Valuation		%		%
						30 June 2019		Cost		Valuation
		Falanx Group Ltd		45,031		15,660		1.41		0.63
		Yourgene Health plc		40,204		26,000		1.26		1.05
		Bould Opportunities plc		15,079		150		0.47		0.01
		Yu Group plc		20,504		17,090		0.64		0.69
		Scancell Holdings plc		45,233		21,125		1.42		0.86
		Intelligent Ultrasound Group plc		50,251		21,672		1.58		0.88
		Loopup Group plc		15,078		38,250		0.47		1.55
		Faron Pharmaceuticals Ltd		20,103		8,560		0.63		0.35
		Cloudcall Group plc		20,230		38,500		0.63		1.56
		Creo Medical Group plc		30,053		70,816		0.94		2.87
		Anglo African Oil & Gas plc		65,329		15,600		2.05		0.63
		Escape Hunt plc		31,006		13,253		0.97		0.54
		Location Sciences Group plc		57,564		71,755		1.81		2.91
		Fusion Antibodies plc		22,113		13,683		0.69		0.55
		Pelatro plc		25,128		32,000		0.79		1.30
		Polarean Imaging plc		20,104		26,667		0.63		1.08
		Access Intelligence plc		10,053		14,000		0.32		0.57
		Blackbird plc		50,254		70,000		1.58		2.83
		I-Nexus Global plc		30,153		12,532		0.95		0.51
		Immotion Group plc		70,357		76,667		2.21		3.10
		N4 Pharma plc		40,204		18,000		1.26		0.73
		Lightwaverf plc		30,158		25,588		0.95		1.04
		Diaceutics plc		10,314		11,475		0.32		0.46
		Concepta plc		75,383		67,500		2.36		2.73
		Integumen plc		50,254		75,000		1.58		3.04
				2,847,690		2,318,067		89.30		93.87
		Unlisted Investments
		Outsourcery plc		28,143		0		0.88		0.00
		Syqic plc		26,546		0		0.83		0.00
				54,689		0		1.71		0.00
		Total qualifying investments		2,902,381		2,318,067		91.01		93.87
		Non Qualifying Investments
		AIM Quoted
		Rotala plc		27,683		40,600		0.87		1.64
		Tristel plc		60		280		0.00		0.01
		Audioboom Group plc		1,163		190		0.04		0.01
		Be Heard Group plc		10,040		2,915		0.31		0.12
		Yolo Leisure & Technology plc		12,799		2,850		0.40		0.12
				51,745		46,835		1.62		1.90
		Security		Cost		Valuation		%		%
						30 June 2019		Cost		Valuation
		UK Listed
		Investec plc		169,416		91,413		5.31		3.70
		Twentyfour Income Fund Ltd		9,852		9,280		0.31		0.37
				179,268		100,693		5.62		4.07
		Unlisted Investments
		China Food Co plc		31547		0		0.99		0.00
		Sorbic International plc		10,205		0		0.32		0.00
		Mar City plc		10,053		0		0.32		0.00
				51,805		0		1.63		0.00
		Total non-qualifying investments		282,818		147,528		8.87		5.97

New Century AIM VCT2 plc

Notes to the Accounts

For the six months to 30^th June 2019

This interim financial information and the unaudited interim accounts for the six months to 30 June 2019 from which it has been extracted, are the responsibility of the directors and were approved by them on 29 August 2019, 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 (March 2018) and with the Statement of Recommended Practice for Investment Companies re-issued by the Association of Investment Companies in November 2014 and updated in February 2018.

The unaudited interim accounts have been prepared using accounting policies that the company applied in the accounts for the year ending 31 December 2018, 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 2019.

Listed, AIM or NEX 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 throughout the period under review.

Net Asset Value per share at 30 June 2019 was 53p (at 31 December 2018: 48p; 30 June 2018: 69p).

No dividend was paid in the period.

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

New Century AIM VCT2 plc is managed by M D Barnard & Co. Limited (‘MDB’). Under the terms of the management agreement MDB are 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 £12k (the year ended 31 December 2018: £30k, the period ended 30 June 2018 £17k).

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 VCT2 plc

Directors, Investment Managers and Advisors

Directors		Geoffrey Charles Gamble (Chairman)
		Michael David Barnard
		Peter William Riley
		Ian Cameron-Mowat
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		MD Barnard & Company Limited
		1st Floor12 Hornsby SquareSouthfields Business Park
		BasildonEssex SS15 5AD
Auditor		UHY Hacker Young LLP
		Quadrant House
		4 Thomas More Square
		London E1W 1YW