Octopus AIM VCT PLC : Interim Management Statement

Octopus AIM VCT plc
Interim Management Statement

11 July 2012

In accordance with Rule 4.3 of the UK Listing Authority's Disclosure and Transparency rules, Octopus AIM VCT plc ("Company" or "Fund") presents an Interim Management Statement for the period 1 March 2012 to 30 June 2012.  The statement also includes relevant financial information between the end of the period and the date of this statement.

Financial Summary

	30 June 2012	29 February 2012
Net assets (£000)	39,579	39,689
Net asset value per share ("NAV")	83.9p*	86.9p
Dividends announced or paid in the period	2.5p	5.0p

* The net asset value is stated excluding a dividend of 2.5p per share. This dividend will be payable from the capital reserves of the Company on 26 July 2012 to those shareholders on the register on 29 June 2012.

Investment Performance

If the 2.5p dividend is added back there has been very little change in the Net Asset Value (NAV) of the Fund over what has turned out to be a volatile period for the stock market.  After a strong start to the year for smaller companies when appetite for risk began to return, the fundamental problems of the Euro returned to haunt the markets in May and June and consequently some of the performance has subsequently been given up.  Adding back the dividend, over the period the NAV fell by 0.6%, with the portfolio showing its resilience in relation to the Smaller Companies Index Ex Investment Trusts which was down by 3.3% and the AIM Index which fell 18.2%, the latter unbalanced by its high resource stock weighting.  It helped that this period of market nerves coincided with the results season which meant that the portfolio benefitted from positive newsflow from some of the larger holdings. Notably, Advanced Computer Software and Idox both had strong trading statements despite their exposure to the public sector, Breedon Aggregates announced maiden profits accompanied by a successful Fundraising and Enteq Upstream has made its first acquisition in the oil services sector also accompanied by a Fundraising. 

Investment Activity

In the period, as well as completing the previously committed investment in Corero Network Security, the VCT made two new qualifying investments in Judges Scientific, an existing AIM listed company which distributes scientific instruments with niche market positions to the laboratory market and WANdisco, a new issue.  Non qualifying holdings in Augean and Gooch and Housego have also been added to on share price weakness caused by the state of the market. The holdings in Autoclenz and Interquest were sold as part of the ongoing tidying of the tail of small holdings which resulted from the merger with Phoenix.

Investment Portfolio - Ten Largest Holdings by Value as at 30 June 2012

Company	Sector	Carrying value £'000	% of net assets
Brooks MacDonald Group plc	Wealth Management	1,959	4.9%
Idox plc	Software	1,922	4.9%
Breedon Aggregates ltd	Construction & Building	1,577	4.0%
Advanced Computer Software plc	Software	1,549	3.9%
EKF Diagnostics Holdings plc	Health	1,468	3.7%
Escher Group Holdings plc	Software	1,237	3.1%
Enteq Upstream plc	Oil Services	1,186	3.0%
MyCelx Technologies Corporation	Oil Services	986	2.5%
Brady plc	Software	982	2.5%
Netcall plc	Telecommunications	961	2.4%

Top-Up Offer
The company has announced that it has launched a Top-Up Offer to raise a maximum £1.9m and the offer remains open until 31 July 2012.  The price of shares to be issued will be based upon the latest NAV at the time.

Issue of shares
On 5 April 2012, the Company issued and allotted 2,148,981 ordinary shares to 123 subscribers at a price of 94.4p per share.

Dividends
The company announced a final dividend of 2.5p subject to shareholder approval at the AGM on 11^th July to shareholders on the register on 29^th June.  It will be paid on 26^th July.

Buybacks
During the period 1 March 2012 to 30 June 2012, the Company purchased 378,353 ordinary shares at a weighted average price of 79.1p per share.

Total Voting Rights
The Company's capital as at 30 June 2012 consisted of 47,193,281 ordinary shares with a nominal value of 1p each, with voting rights. The Company does not hold any ordinary shares in Treasury. Therefore, the total number of voting rights in the Company as at 30 June 2012 was 47,193,281. 

Material events and transactions
The Board is not aware of any other significant event or transaction which has occurred between 1 March 2012 and the date of publication of this statement which would have a material impact on the financial position of the Company.

For further information please contact:
Andrew Buchanan and Kate Tidbury - Fund Managers
Octopus Investments Limited - 0800 316 2347

ENDS

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information contained therein.

Source: Octopus AIM VCT PLC via Thomson Reuters ONE

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