British Smaller Companies VCT2 plc (BSC) released its unaudited interim results for the six months ending 30 June 2026, revealing a net asset value (NAV) of 52.25p per share, down from 54.40p at 31 December 2025 following a 1.50p dividend payment during the period. The venture capital trust completed seven investments totaling £11.7 million in H1 2026, with an additional £2.9 million invested after the period ended. The Board declared a second interim dividend of 1.50p per share, bringing total dividends for the year to 3.00p per share, equivalent to 5.5% of the opening NAV. Investors are closely watching the upcoming 2026/27 joint fundraising offer, expected to launch with a prospectus around 23 September 2026.
Key Points
- British Smaller Companies VCT2 plc (BSC)
- NAV declined to 52.25p per share as of 30 June 2026; Total Return decreased by 0.65p to 147.00p per share during the period
- £11.7m invested across seven companies in H1 2026; fully subscribed share offer raised net proceeds of £30.9m; second interim dividend of 1.50p per share payable on 23 October 2026
- Investors should monitor the forthcoming 2026/27 joint offer prospectus and the impact of AI-driven valuation multiple changes on software holdings
NAV Reduction Attributed to AI-Driven Valuation Pressures on Software Assets
The Total Return per share dropped by 0.65p to 147.00p over the six months to 30 June 2026, marking a 1.2% decrease relative to the opening NAV per share. Chair Barbara Anderson identified market concerns about artificial intelligence disrupting existing software solutions as the primary challenge, leading to compressed revenue multiples used for portfolio valuations. Negative revaluations from Matillion, AutomatePro, Force24, Quality Clouds, and Panintelligence were the main detractors, partially offset by positive revaluations from Summize, Xapien, Vypr, and Stormharvester. The latter four benefited from strong trading performance and, in the cases of Summize and Xapien, successful completion of significant Series B funding rounds.
£14.6m Invested in 2026 Includes Four New Portfolio Companies
During the half-year, BSC invested £11.7 million across seven companies: four new investments totaling £5.4 million—including TiPJAR (£1.8m), StudentCrowd (£1.6m), Aura Life (£1.0m), and Inploi (£1.0m)—and three follow-on investments totaling £6.3 million into Spotless Water, Summize, and GEEIQ. Post period-end, an additional £2.9 million was deployed across six companies, including £1.2 million invested in NextWave, a consultancy platform serving Tier 1 global financial services firms. Total year-to-date investments reached £14.6 million. The portfolio was valued at £119.6 million as of 30 June 2026, with application software representing the largest sector allocation at 38%.
Teraview Exit Delivers 8.2x Return as Realisations Hit £2.6m in Period
Realisations during the period amounted to £2.6 million, generating a gain of £0.8 million over the opening carrying value and £1.9 million over cost. The most notable exit was Teraview, which listed on the Korean Stock Exchange in December 2025; BSC fully realised its holding across December 2025 and January 2026, yielding £1.8 million in proceeds and an 8.2x return on original cost. The Company also exited its remaining stake in Vuealta for £0.5 million, a 1.5x return on cost, while Sipsynergy’s operations were wound down, with expected total proceeds of approximately £0.7 million over two years, representing a 0.3x return.
BSC Announces Joint 2026/27 Fundraising Offer Targeting Up to £60m Including Over-Allotment
Following a fully subscribed 2025/26 offer that raised gross proceeds of £31.9 million through the allotment of 56,931,815 ordinary shares, BSC announced on 28 July 2026 plans to launch a new joint offer for subscription alongside British Smaller Companies VCT plc for the 2026/27 tax year. The BSC VCTs aim to raise up to £40 million in aggregate, with over-allotment facilities of up to an additional £20 million before issue costs. The prospectus is expected to be published around 23 September 2026, with applications opening approximately one week later. The announcement also highlights that a Government reduction in initial VCT income tax relief, announced in the 2025 Budget, may impact the fundraising market.
