**Summary**
British Smaller Companies VCT2 plc reported a 2.4% return on opening net assets for the year ended 31 December 2025, driven by revenue growth in portfolio companies. The total return increased by 1.30 pence, with a net asset value of 54.40 pence per share. Realisations generated ยฃ15.7 million, with a gain of ยฃ2.2 million over the opening carrying value. The company made four new investments and 13 follow-on investments totalling ยฃ16.1 million. Total dividends paid were 4.00 pence per share, bringing cumulative dividends to 93.25 pence per share. The company allotted ยฃ29.2 million from the 2024/25 fundraising and received gross applications of ยฃ31.9 million for the 2025/26 offer.
Portfolio performance was strong, with 20 out of 25 companies showing positive revenue growth, and eight growing by 30% or more. Notable valuation increases included Summize (ยฃ3.4 million), Xapien (ยฃ3.4 million), and Unbiased (ยฃ2.1 million). However, some investments, such as Matillion (ยฃ3.1 million decrease) and Outpost (ยฃ1.7 million decrease), experienced valuation declines due to specific challenges.
The company invested ยฃ6.0 million in four new companies and ยฃ10.1 million in follow-on investments. Realisations included ACC Aviation (ยฃ3.1 million initial proceeds), Elucidat (ยฃ3.6 million), and SharpCloud (ยฃ5.8 million), with additional deferred consideration expected.
Financial results showed a 1.35 pence per share increase in Total Return, with ongoing charges at 1.95%. The company maintained its VCT qualifying status and complied with all legislative tests.
Looking ahead, the company is optimistic about its portfolios potential, despite macroeconomic uncertainty. It plans to continue supporting portfolio companies with follow-on funding and is well-positioned with strong liquidity to manage risks and capture opportunities.
**Notes:**
- **Net Asset Value (NAV) per Share:** Decreased by 4.73% from 57.10 pence in 2024 to 54.40 pence in 2025.
- **Total Return per Share:** Increased slightly by 0.90% from 146.35 pence to 147.65 pence.
- **Dividends Paid per Share:** Increased significantly by 33.33% from 3.00 pence to 4.00 pence.
- **Cumulative Dividends Paid per Share:** Increased by 4.48% from 89.25 pence to 93.25 pence.
- **Total Realisation Proceeds:** ยฃ15.7 million in 2025, with no comparable figure provided for 2024.
- **New Investments:** ยฃ6.0 million in 2025, with no comparable figure provided for 2024.
- **Follow-on Investments:** ยฃ10.1 million in 2025, with no comparable figure provided for 2024.
- **Annualised Return on Opening NAV:** 2.4% in 2025, with no comparable figure provided for 2024.
- **Ongoing Charges:** Decreased slightly by 1.51% from 1.98% to 1.95%.