Octopus Protected VCT 2 PLC
Interim Management Statement
18 November 2009
In accordance with Rule 4.3 of the UK Listing Authority's Disclosure
and Transparency rules, Octopus Protected VCT 2 plc ("Protected 2" or
"Fund") presents an Interim Management Statement for the period 1
August 2009 to 31 October 2009. The statement also includes relevant
financial information between the end of the period and the date of
this statement.
Financial Summary
+-------------------------------------------------------------------+
| | Three months | | |
| | to | | |
| | 31 October | Six months to | Period to 31 |
| | 2009 | 31 July 2009 | January 2009 |
|---------------------+--------------+---------------+--------------|
| Net assets (000s) | £10,669 | £10,771 | £2,087 |
|---------------------+--------------+---------------+--------------|
| Net loss before tax | | | |
| (000s) | £(236) | £(153) | £(84) |
|---------------------+--------------+---------------+--------------|
| Net asset value per | | | |
| share ("NAV") | 91.7p | 92.5p | 90.8p |
+-------------------------------------------------------------------+
Investment performance
At 31 October 2009 the NAV of the Fund was 91.7p, which compares to
92.5p at 31 July 2009. The performance of the Fund has been
relatively stable in the period under review, due to a large
proportion of its assets being held in cash and cash equivalent
securities.
Investment valuations remain unchanged at the period end. During the
period under review no new investments or disposals were made.
Unquoted Qualifying Equity Investment Portfolio by Value
+-------------------------------------------------------------------+
| | | Carrying | % of Net |
| Company | Sector | value £'000 | Assets |
|---------------------+--------------------+-------------+----------|
| PubCo Services | | | |
| Limited | Restaurants & Pubs | 600 | 5.6% |
|---------------------+--------------------+-------------+----------|
| GreenCo Services | | | |
| Limited | Environmental | 600 | 5.6% |
|---------------------+--------------------+-------------+----------|
| BusinessCo Services | | | |
| Limited | Business Services | 600 | 5.6% |
|---------------------+--------------------+-------------+----------|
| Salus Services I | | | |
| Limited | Healthcare | 600 | 5.6% |
|---------------------+--------------------+-------------+----------|
| Diagnos Limited | Automotive | 350 | 3.3% |
|---------------------+--------------------+-------------+----------|
| Dualcom Holdings | | | |
| Limited | Security Devices | 250 | 2.3% |
+-------------------------------------------------------------------+
Investment strategy
The Fund is being invested on the basis of taking lower risk than a
typical VCT. The Fund aims to receive its return from interest paid
on secured loan notes as well as an exposure to the value of the
shares of a company. The investment strategy is to derive
sufficient return from the secured loan notes to achieve the Fund's
investment aims and to use any equity exposure to boost returns. As
portfolio companies are unquoted the Fund will receive a return from
an equity holding when a company is sold.
The Manager of the Fund aims to reduce risk by investing in well
managed and profitable businesses with strong recurring cash-flows.
Furthermore with the majority of the investment being in the form of
a secured loan, in the unlikely event of the business failing, the
Fund will rank ahead of unsecured creditors and equity investors.
Material events and transactions
The Fund's Board is not aware of any other significant event or
transaction which has occurred between the 1 August 2009 and the date
of publication of this statement which would have a material impact
on the financial position on the Fund.
For further information please contact:
Stuart Nicol - Fund Manager
Octopus Investments Limited - 0800 316 2347
ENDS
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