Octopus AIM VCT 2 plc : Interim Management Stat...

Octopus AIM VCT 2 plc ("the Company")

15 September 2014

Interim Management Statement
For the period from 1 June 2014 to 8 September 2014

In accordance with Rule 4.3 of the UK Listing Authority's Disclosure and Transparency rules, Octopus AIM VCT 2 plc presents an Interim Management Statement for the period 1 June 2014 to 8 September 2014. The statement also includes relevant financial information between the end of the period and the date of this statement.

Financial Summary

	As at 8 September 2014	As at 31 May 2014	As at 30 November 2013
Total net assets (£'000s)	43,579	46,454	39,818
Net asset value per share ("NAV")	84.2p	89.3p	84.4p
Dividends paid in period	-	2.0p	3.5p

A dividend of 2.0p per share will be paid on 17 October 2014 to shareholders on the register of the Company on 19 September 2014.

Investment performance
Between the 31^st May 2014 and 8^th September 2014 the Net Asset Value fell by 5.7% from an unaudited 89.3p to an unaudited 84.2p per share. This compares with a fall in the FTSE AIM All Share Index of 4.8% and in the FTSE SmallCap (excluding investment companies) Index of 1.9%.

The fall in the NAV comes after a sustained period of rises, and reflects a degree of uncertainty which has crept into the market. This has caused some share price weakness, particularly in earlier stage companies and those whose shares are perceived to be trading on a high rating.  Even more established companies such as Staffline, Idox and Advanced Computer Software have seen their share prices stagnate despite producing figures showing good growth. The Autumn results season has now started and we have seen some encouraging results to date with some individual share prices rising on the back of good trading news.

Investment Activity
The flow of new issues to AIM has continued although price expectations became high in the late spring and early summer, with the result that we only made one new investment in the period, in July. This was in Ergomed, a profitable Contract Research Outsourcing and drug monitoring business.       

We have taken some profits in the period in Breedon Aggregates, Plus 500 and Proxama.

Ten largest equity holdings as at 8 September 2014:  

Investee Company	Sector	Market value (based on Bid Prices) £'000	Market value as a % of total net assets
Advanced Computer Software Group plc	Software & Computer Services	2,314	5.3%
Breedon Aggregates Limited	Construction & Materials	2,076	4.8%
Netcall plc	Software & Computer Services	1,574	3.6%
IDOX plc	Software & Computer Services	1,574	3.6%
Quixant plc	Technology Hardware	1,383	3.2%
Tasty plc	Travel & Leisure	1,238	2.8%
Animalcare Group plc	Pharmaceuticals & Biotech	1,207	2.8%
GB Group plc	Software & Computer Services	1,158	2.7%
Escher Group Holdings plc	Software & Computer Services	1,150	2.6%
Vertu Motors plc	General Retailers	1,063	2.4%

Buybacks
During the period the Company purchased 366,864 shares at a weighted average price of 81.9p per share for cancellation. Buybacks were performed at approximately a 5% discount to the most recently announced NAV.

Issue of equity
During the period the Company allotted 106,490 shares at a weighted average price of 93.7p per share.

Open Share Offer
On 29 August 2014 the Company announced a combined offer with Octopus AIM VCT plc to raise up to £20m, with an ability to allot up to a further £10m also in combination with Octopus AIM VCT plc. The first allotment is expected to be in early November.

Material events and transactions
The Company's Board is not aware of any other significant event or transaction which has occurred between 1 June 2014 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:
Kate Tidbury / Andrew Buchanan - Fund Managers
Octopus Investments Limited - 0800 316 2295

ENDS

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Octopus AIM VCT 2 plc via Globenewswire

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