Statement re Strategy


 
TIDMSVC2 
 
SPARK VCT 2 plc 
 
("SPARK VCT 2" or the "Company") 
 
Results of Strategy Review 
 
The Board has been reviewing the future direction of the Company, with the aim 
of determining a strategy that will ensure that investment returns generated 
from the venture capital portfolio are delivered to shareholders in the most 
appropriate way, as and when they arise (the "Review"). The purpose of this 
announcement is to set out the conclusions reached from this Review. Further 
information will be given in the Annual Report for the year ended 31 December 
2009 which is expected to be published on or about 31 March 2010. 
 
In conducting the Review, the Board has been mindful of the tax benefits that 
shareholders have already received in respect of their original investment in 
the Company or in SPARK VCT 3 plc, which merged with the Company in November 
2008. The tax benefits will have included income tax relief on their original 
investment and, in many cases, capital gains deferral ("CGT deferral"). 
Shareholders can also benefit from the ability of the Company to pay tax-free 
dividends under the VCT provisions. 
 
The Board is aware that most of the Company's existing investments have been 
held in the portfolio for a long time. Successful realisations of investments 
have so far been few in number and dividend payments to shareholders have been 
very limited. This has been a consequence partly of the initial focus of the 
investment policy on early-stage technology investments and partly of the 
difficult economic and financial conditions in recent years which have slowed 
the rate of development of investee companies and made exits more difficult to 
achieve. 
 
Members of the management team within SPARK Venture Management Limited ("the 
SPARK management team") have actively worked with the portfolio companies to 
equip them to survive the recession. The Board is pleased to report that this 
strategy has been broadly successful in stabilising companies with previously 
high rates of cash burn, and whilst it is too soon to predict the timing of any 
exits, the shape of possible exits from a number of the companies is becoming 
clearer. 
 
The key conclusions of the Review are as follows: 
 
Dividend policy: 
 
In future, priority will be given to the payment of dividends as and when 
realisations are achieved. In particular, subject to any tax or regulatory 
constraints, 50% of the proceeds from any realisations from within the existing 
venture capital portfolio will be regarded as being available for distribution. 
 
Longer-term future of the Company: 
 
The Board considers that the Company should continue as a venture capital trust 
and that, within the parameters of its existing investment policy, there should 
in future be a focus on investments selected with a view to yield as well as 
capital stability. 
 
Investment policy: 
 
The Company intends to maintain the existing sector focus, capitalising on the 
SPARK management team's range of contacts and its expertise in investment in 
these sectors. 
 
It will be the Company's policy to continue to support those of the existing 
investee companies that are considered to have strong growth prospects, to 
enable them to develop long enough to allow an optimal realisation. 
 
As and when funds are available for new investment, the SPARK management team 
will seek to take advantage of opportunities available at this current stage in 
the investment cycle, particularly opportunities to participate in later-stage 
financing rounds of venture-backed companies within the existing sector focus. 
The aim will be to seek investments in companies which are already revenue 
generating with a stable business base, and are able to deliver a flow of 
dividends or be capable of exit within a 3-year period. 
 
Share buy-back policy: 
 
The Company will continue to be willing to make buy-backs of limited volumes of 
its shares but expects that, going forward, the budget made available to fund 
buy-backs will be more tightly restricted than in previous years. 
 
Intended purchases of shares in the Company by members of the SPARK management 
team and members of the Board 
 
The Board is pleased to announce that key members of the SPARK management team, 
who do not currently hold shares in the Company, have indicated that they wish 
individually to acquire shareholdings by purchases of the Company's shares in 
the open market. Thomas Chambers, who was appointed a Director of the Company 
on 12 January 2010, similarly intends to acquire a shareholding by purchases of 
the Company's shares in the open market. 
 
They intend to commence these purchases when the Company exits its close period 
following publication of its Annual Report and following completion of any 
share buy-back transactions which the Company may choose to undertake at that 
time. 
 
The Company is now in a close period for dealings in its own shares. No share 
buy-backs will be made from today's date until after the publication of the 
forthcoming Annual Report. 
 
The Chairman of SPARK VCT 2 plc, Mr Robert Wright, said today: 
 
"In this strategy review, the Board has sought to strike a balance between the 
generation of a flow of tax-free dividends, as soon as investment realisations 
permit, and the retention of funds for reinvestment so that the Company can 
continue to provide shareholders with the advantages of a venture capital 
trust. Future investment strategy will be aimed at opportunities selected to 
provide greater capital stability and a continuing flow of dividends." 
 
For further information please contact: 
 
Nghi Tran, SPARK VCT 2 PLC: 0207 851 7777 
 
29 January 2010 
 
END 
 
 
 
END
Spark Vct 2 (LSE:SVC2)
過去株価チャート
から 5 2024 まで 6 2024