Octopus AIM VCT PLC : Interim Management Statement

 

Octopus AIM VCT plc
Interim Management Statement

28 February 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 September 2011 to 20 February 2012.  The statement also includes relevant financial information between the end of the period and the date of this statement.

Financial Summary

	20 February 2012	31 August 2011	As at 30 June 2011
Net assets (£000)	39,186	40,067	43,730
Net asset value per share ("NAV")	86.2p	87.6p	95.3p
Dividends paid in the period	2.5p	2.5p	-

Investment Performance

If we add back the 2.5p dividend paid in the period, the NAV went up by 1.2%.  This was against a background of a very poor market in the second half of 2011, fuelled by uncertainties about the future of the Euro and fears of a double dip recession which has been followed by a more optimistic start to 2012, with markets focusing less on the possible consequences of all these problems and more on the value currently available in the markets.  Thus over the same period the FTSE Small cap index ex investment trusts rose by 1.6% and the AIM index rose by 6.5%, with all of the running being made in January and February.  The fund held up reasonably well on the way down, but has lagged the markets in 2012 although there have been some good trading statements out of companies such as Staffline, Advanced Computer Software, Escher Group and Animalcare in recent weeks.

Investment Activity

In the period, the VCT has made two new qualifying investments in GB Group, an existing AIM listed company and TLA Worldwide, a new issue. It has committed to another investment in Corero Network Security, another existing AIM software company which will be completed in March.  A number of disposals have also been made, Clarity Commerce Solutions and Hamworthy because they were both the subject of successful cash takeover bids and Colliers and Optare because the presence of a dominant shareholder made the prospect of a recovery in the business being reflected in the share price remote.  Managed Support Services sold its business and turned itself into a non qualifying investment company, so we sold the shares along with the holdings in Adventis, Northern Bear and Silverdell all of which were too small to have an impact on the NAV in future.  After a slower start to the year for VCT qualifying issues, the number is now increasing and we expect new issues to feature more strongly in 2012.

Investment Portfolio - Ten Largest Holdings by Value as at 20 February 2012

Company	Sector	Carrying value £'000	% of net assets
Brooks MacDonald Group plc	Wealth Management	2,073	5.3%
Escher Group Holdings plc	Software	1,560	4.0%
Advanced Computer Software plc	Software	1,462	3.7%
Idox plc	Software	1,390	3.5%
EKF Diagnostics plc	Healthcare	1,301	3.3%
Breedon Aggregates ltd	Construction & Building	1,239	3.2%
Enteq Upstream plc	Oil Services	1,237	3.2%
Brady plc	Software	1,005	2.6%
MyCelx Technologies Corporation	Oil Services	986	2.5%
Animalcare Group plc	Food Producers	852	2.2%

Top-Up Offer
The company has announced that it has launched a Top-Up Offer to raise a maximum £4m and the offer is currently open.  The price of shares to be issued will be based upon the latest NAV at the time.

Buybacks
During the period 1 September 2011 to 20 February 2012, the Company purchased 258,939 ordinary shares at a weighted average price of 75.8p per share.

Total Voting Rights
The Company's capital as at 20 February 2012 consisted of 45,470,785 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 20 February 2012 was 45,470,785. 

Material events and transactions
The Board is not aware of any other significant event or transaction which has occurred between 1 September 2011 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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Source: Octopus AIM VCT PLC via Thomson Reuters ONE

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