HARGREAVE HALE AIM VCT1 PLC: Interim Management...

HARGREAVE HALE AIM VCT 1 PLC

Interim Management Statement

This statement covers the period from 1 April 2011 to the date of the release of
the statement on 17 August 2011.

As at close of business on 12 August 2011, the unaudited Net Asset Value (NAV)
for

Hargreave Hale AIM VCT 1 plc was as follows:

NAV per Ordinary 1p share - 60.63 pence.


Trading Statement (Qtr to 30 June 2011)

In  the third quarter of the financial  year the NAV rose from 67.6p to 68.6p, a
rise  of 1.41%.  By way of comparison,  the FTSE 100 rose a marginal 0.63%, FTSE
Small Cap (Ex-IT) rose 1.15% whilst AIM saw a loss of -4.81%. For investors into
the  2004/5 Ordinary  Share  issue,  the  total  return  increased from 88.6p to
89.6p.  For  investors that  came into  the 2005/6 Convertible  Share issue, the
total return increased from 95.7p to 96.8p.

We  have continued to make selective investments in qualifying companies, adding
Microsaic  (mass spectrometry) and Indeed (online property conveyancing service)
whilst  completing the  disposal of  Rotala, Photonstar,  Energetix and Invu. We
also  lost Sports  Media, which  went into  administration. We ended the quarter
with  44 qualifying investment and remained comfortably through the HMRC defined
investment test with 83.7% qualifying.

Net  realised and unrealised gains in the qualifying investments totalled £0.26m
with £0.24m unrealised and £0.02m gains from disposals, equivalent to 0.97 pence
per  share.  20 out  of  the  44 investments  increased in value while 16 losing
ground and 8 staying flat.

Cohort  (0.5p  per  share,  £0.135m)  was  the  largest  contributor  to the NAV
appreciation  as  the  stock  rallied  more  than 40% after a strong preliminary
earnings  report that  confirmed the  recovery remained  on track.  Management's
explicit  commitment to crystallising  value was also  of particular note. Abcam
(0.45p  per share, £0.12m), Idox (0.45p per share, £0.12m) and Advanced Computer
Software  (0.44p per share, £0.118m) were also significant contributors. Abcam's
share  price saw  an 11% jump  following its  announcement of its acquisition of
MitoSciences  with analyst expecting the transition  to be accretive after FY12.
Idox  delivered  strong  interims  and  Advanced Computer Software's preliminary
result  showed  good  delivery  of  forecast,  cash generation and clear further
opportunity.  These gains were partially offset by losses in Bglobal (-0.62p per
share, -£0.17m), Intercede (-0.53p per share, -£0.14m) and Pressure Technologies
(-0.5p per  share, -£0.13m). Bglobal's share price has been under pressure since
the  Government's announcement in March that  the mass rollout of smart metering
would  be pushed  back to  2014, leading to  customer deferrals  and substantial
downward revisions to FY12 and FY13 profit forecasts. FY11 results were ahead of
expectations.  Intercede, a strong performer in H1'11, gave up some of the gains
after  the  company  signalled  a  reduced  profit outlook FY12 due to increased
investment  in  future  growth.  Pressure  Technologies released a disappointing
trading  update  in  April  in  which  the  company  noted  that activity in its
principal  market, the supply of ultra-large  high pressure gas cylinders to the
offshore  rig  market,  had  not  picked  up as quickly as hoped.  Subsequently,
Interims in June confirmed that leading indicators were continuing to improve in
their  core markets, whilst the  biogas business is expected  to grow rapidly in
FY12.

Trading in non-qualifying equity investment remained disappointing following a
sluggish second quarter with a small gain of 0.01p per share.  There was no
significant movement among the non-qualifying equities with all gains and losses
largely marginal. The allocation to non-qualifying equity investments stayed
flat around 6%.

Our  cash position decreased  slightly from £2.03m  to £1.87m (11.2% to 10.1%).
Fixed income exposure remained at £3.1m (17%).
New Joint Offer for Subscription of Ordinary Shares
The Offer closed on the 29 July 2011 and since commencement on 9 March 2011, the
Offer resulted in funds being received of £372,000 and 536,572 shares were
issued in respect of Hargreave Hale Aim VCT 1 plc.

Issue of Ordinary Shares

April 2011

357,295 ordinary shares were issued during April resulting in funds being
received of £249,000. As at 30 April, there were 26,866,175 ordinary shares of
1p in issue (excluding shares held as treasury).

June 2011

79,872 ordinary shares were issued during June resulting in funds being received
of £54,000. As at 30 June, there were 26,832,663 ordinary shares of 1p in issue
(excluding shares held as treasury).

Market Update

The turmoil and uncertainty of recent weeks has triggered broad based and, at
times, indiscriminate selling.  Although we are seeing higher level downward
revisions to the US, UK and European growth outlooks, we are yet to see this
filter through to individual companies.  Since 30 June 2011, the NAV has dropped
5.92p to 60.63p (adjusting for the 2p dividend distributed on 14 July 2011),
equivalent to 8.64%. FTSE 100 fell 10.52% during the period and FTSE AIM All-
Share dropped a similar 10.75%.

Although a large number of our investments have seen their share prices under
pressure, the effect has been most pronounced amongst those companies on higher
ratings. Abcam (-0.74p per share, £0.197m), Intercede (-0.94p per share,
£0.251m) and Craneware (-0.38p per share, £0.102m) suffered sharp falls, as did
Animalcare (0.71p per share, £0.191m).


17 August 2011

For further information please contact:
 Stuart Brookes

 Company Secretary

 Hargreave Hale AIM VCT2 plc

 01253 754740








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