Octopus Apollo VCT1 plc

Half-yearly report

Octopus Apollo VCT 1 plc
Half-Yearly Results

28 September 2009

Octopus Apollo VCT 1 plc, managed by Octopus Investments Limited,
today announces the Half-Yearly results for the six months ended 31
July 2009.

These results were approved by the Board of Directors on 25 September

You may view the Half-Yearly Report in full at
www.octopusinvestments.com by navigating to the VCT Meetings &
Reports under the 'Services' section.

Financial Summary

                                                Six months    Year to
                                Six months to           to 31 January
                                 31 July 2009 31 July 2008       2009

Net assets (£'000s)                     7,980        8,223      8,119
Net  profit/(loss)  after   tax
(£'000s)                                   32         (66)      (106)
Net  asset   value  per   share
("NAV")                                91.80p       93.20p     92.30p
Cumulative dividends since
launch - paid and proposed              3.25p        1.25p      2.25p

Octopus Apollo VCT 1 plc ("Apollo 1", "Company" or "Fund") is a
venture capital trust ("VCT") and is managed by Octopus Investments
Limited ("Octopus").

The Fund was launched in May 2006 together with Octopus Apollo VCT 2
plc. Both companies have identical constitutions, boards of directors
and investment policies, and together launched an offer for
subscription comprising 25,000,000 ordinary shares each, or
50,000,000 in aggregate (the "Offer"). The Offer closed on 5 April
2007 having raised £17.6 million in aggregate (£16.8 million net of
expenses). The objective of the Fund is to invest in a diversified
portfolio of UK smaller companies in order to generate income and
capital growth over the long-term.

The table below  shows the movement  in NAV per  share and lists  the
dividends that have been paid and proposed since the launch of Apollo

                       Dividend paid NAV + cumulative
Period Ended       NAV     in period        dividends
31 January 2007 93.40p             -           93.40p
31 July 2007    94.40p             -           94.40p
31 January 2008 94.70p             -           94.70p
31 July 2008    93.20p         0.75p           93.95p
31 January 2009 92.30p         0.50p           93.55p
31 July 2009    91.80p          1.0p           94.05p

Chairman's Statement

I am pleased to present the half year report of Octopus Apollo VCT 1
plc for the period ended 31 July 2009.

At 31 July 2009 the total return (being NAV plus cumulative dividends
paid) of the fund was 94.1p, which compares to 93.6p at 31 January
2009. The performance of the Fund has been relatively stable because
a large proportion of its assets are held in cash and cash equivalent
securities. Investments have been made as discussed below but these
are unchanged in value at the period end.

Investment Portfolio
As mentioned in the Annual Report, since 31 January 2009 six
investments have been made. The Fund invested £700,000 into CSL
Dualcom Limited and £825,000 in to Diagnos Limited. Furthermore, a
total of £800,000 was invested into four companies that have been
established to seek suitable qualifying investments across a range of

Over the period, we have focused on providing support to existing
portfolio companies. We contributed a small investment into portfolio
company Bruce Dunlop as part of a rights issue and continue to work
with all companies to help steer them through the downturn.

In the context of the tough economic environment, most portfolio
companies are making progress or holding steady. Furthermore, since
the end of the period, the Board is pleased to announce the
successful sale of Funeral Services Partnerships.  In total the
investment returned circa 1.4 times the initial investment of
£875,000.  Further details of this exit will be provided in the
Annual Report for the year ended 31 January 2010.

New Investments
CSL DualCom Limited
CSL DualCom (www.csldual.com) is the UK's leading supplier of dual
path signalling devices, which link burglar alarms to the police or a
private security firm. The devices communicate using a telephone line
or broadband connection and a wireless link from Vodafone, which has
been a partner since 2000.

Diagnos Limited
Diagnos (www.autologic-diagnos.co.uk) develops and sells
sophisticated automotive diagnostic software and hardware that
enables independent mechanics, dealerships and garages to service and
repair vehicles. Mechanics require a diagnostic tool to communicate
with the in-car computer in order to measure, monitor and, where
necessary, fix the electronic process or system.

In terms of new investments, we are seeing reasonable deal flow and
are at offer stage for a number of new deals.

Investment Strategy
The Fund is being invested on the basis of taking less risk than a
typical VCT.  Typically the Fund will receive its return from
interest paid on secured loan notes as well as an exposure to the
value of the shares of a company.   The investment strategy is to
derive sufficient return from the secured loan notes to achieve the
Fund's investment aims and to use the equity exposure to boost
returns.  As portfolio companies are unquoted the Fund will receive a
return from an equity holding when a company is sold.

The Manager of the Fund aims to reduce risk by investing in well
managed and profitable businesses with strong recurring cash-flows.
Furthermore with the majority of the investment being made in the
form of a secured loan, in the event of the business failing, the
Fund will rank ahead of unsecured creditors and equity investors.

Dividend and Dividend Policy
It is your Board's policy to strive to maintain a regular dividend
flow where possible and this primarily relies on the level of
profitable realisations and available cash reserves. However, given
the prevailing economic climate this cannot be guaranteed. That said,
for the period ended 31 July 2009, the Board has declared an interim
dividend of 1p per share, payable from revenue reserves. This
dividend will be paid to shareholders, on 30 October 2009, who are on
the register on 9 October 2009.

VCT Qualifying Status
PricewaterhouseCoopers LLP provides the Board and Investment Manager
with advice on the ongoing compliance with HMRC rules and regulations
concerning VCTs.   As at 31 July 2009, over 43.2% of the portfolio
(as measured by HMRC rules) was invested in VCT qualifying
investments.  The Manager does not foresee any issues with reaching
the required investment hurdle of 70% before the third anniversary of
the end of the financial year in which investors subscribed to the

Principal Risks and Uncertainties
The principal risks and uncertainties are set out in note 6 of the
Notes to the Half-Yearly Report on page 16.

While the Fund is insulated from the stock market, all companies face
challenging trading conditions. In this environment, it is the good
companies with strong management teams and sound business models,
such as those in your portfolio, that have the best chance of

The Investment Manager is in a strong position to provide the support
that companies need, which is especially crucial while banks refuse
to lend or impose high lending terms. Our strategy is focused on
strengthening businesses for the future through guidance and funding.
In these ways, we are working to ensure ongoing value from your VCT

If you have any questions on any aspect of your investment, please
call one of the team on 0800 316 2347.

Andrew Boyle
25 September 2009

Investment Portfolio

                                                                        %   held by
                                                        Carrying   equity       all
                                                        value at     held     funds
Unquoted                   Investment      Unrealised    31 July       by   managed
qualifying                    at cost   profit/(loss)       2009   Apollo        by
investments  Sector           (£'000)         (£'000)    (£'000)        1   Octopus
Services     Funeral
Partnerships Services             875               -        875     2.2%      6.8%
Limited      Automotive           825               -        825      N/A       N/A
Bruce Dunlop
Associates   Media                750               -        750     0.9%     33.3%
CSL Dualcom  devices              700               -        700      N/A       N/A
Services II  Oil & Gas
Limited      Services             500               -        500    12.3%     49.0%
Tristar      Chauffeur
Limited      Services             500               -        500    1.25%     35.0%
Services I
Limited      Healthcare           200               -        200     5.0%       49%
Limited      Restaurants          200               -        200     5.0%       49%
Limited      Environmental        200               -        200     5.0%       49%
Services     Business
Limited      services             200               -        200     5.0%       49%
Limited      Manufacturing        197               -        197     0.9%     48.1%
Total unquoted qualifying
investments                     5,147               -      5,147
Bonds                             428              10        438
Floating rate notes             1,154               -      1,154
Money market funds              1,116              53      1,169
Cash at Bank                       59               -         59
Total money market
securities and cash
at bank                         2,757              63      2,820
Total investments               7,904              63      7,967
Net current assets                                            13
Total net assets                                           7,980

Responsibility Statement of the Directors in respect of the
Half-Yearly Report

We confirm that to the best of our knowledge:

  * the half-yearly financial statements have been prepared in
    accordance with the statement "Half-Yearly Financial Reports"
    issued by the UK Accounting Standards Board;

  * the half-yearly report includes a fair review of the information
    required by the Financial Services Authority Disclosure and
    Transparency Rules, being:

     * an indication of the important events that have occurred
       during the first six months of the financial year and their
       impact on the condensed set of financial statements.
     * a description of the principal risks and uncertainties for the
       remaining six months of the year; and
     * a description of related party transactions that have taken
       place in the first six months of the current financial year,
       that may have materially affected the financial position or
       performance of the Company during that period and any changes
       in the related party transactions described in the last annual
       report that could do so.

On behalf of the Board
Andrew Boyle
25 September 2009

Income Statement
              Six months to 31 July Six months to 31 July    Year to 31 January
                      2009                   2008                   2009
              Revenue Capital Total Revenue Capital  Total Revenue Capital  Total
                £'000   £'000 £'000   £'000   £'000  £'000   £'000   £'000  £'000

Gain on
disposal of
current asset
investments         -       -     -       -       -      -       -      19     19

on valuation
of current
investments         -      63    63       -    (42)   (42)       -   (206)  (206)

Income            128       -   128     181       -    181     461       -    461

fees             (20)    (60)  (80)    (25)    (73)   (98)    (47)   (143)  (190)

fee rebate          -       -     -       -       -      -       9      26     35

expenses         (80)       -  (80)   (107)       -  (107)   (225)       -  (225)

on   ordinary
before tax         28       3    31      49   (115)   (66)     198   (304)  (106)

Taxation   on
on   ordinary
activities          -       -     -       -       -      -    (86)      86      -

on   ordinary
after tax          28       3    31      49   (115)   (66)     112   (218)  (106)
Return per
share - basic
and diluted      0.3p    0.0p  0.3p    0.6p  (1.3)p (0.7)p    1.3p  (2.5p) (1.2p)

  * The 'Total' column of this statement is the profit and loss
    account of the Company; the supplementary revenue return and
    capital return columns have been prepared under guidance
    published by the Association of Investment Companies.
  * all revenue and capital items in the above statement derive from
    continuing operations
  * the accompanying notes are an integral part of the half-yearly
  * The Company has no recognised gains or losses other than those
    disclosed in the income statement.

Reconciliation of Movements in Shareholders' Funds

                                   Six months   Six months    Year to
                                        ended        ended 31 January
                                 31 July 2009 31 July 2008       2009
                                        £'000        £'000      £'000
Shareholders' funds at start of
period                                  8,119        8,355      8,355
Profit/(loss) on ordinary
activities after tax                       31         (66)      (106)
Cancellation of own shares               (83)            -       (20)
Dividends paid                           (87)         (66)      (110)
Shareholders' funds at end of
period                                  7,980        8,223      8,119

Balance Sheet
                                                             As at 31
                                                 As at 31     January
                           As at 31 July 2009   July 2008        2009
                          £'000         £'000 £'000 £'000 £'000 £'000

Fixed asset investments                 5,147       2,072       2,572
Current assets:
Money market securities   2,761               6,001       3,971
Debtors                      58                  97          86
Cash at bank                 59                  76       1,575
                          2,878               6,174        5632
Creditors: amounts
falling due within one
year                       (45)                (23)        (85)
Net current assets                      2,833       6,151       5,547

Net assets                              7,980       8,223       8,119

Called up equity share
capital                     869                 882         879
Special distributable
reserve                   7,350               7,451       7,429
Capital redemption
reserve                      16                   4           6
Capital reserve -
Realised                  (245)               (193)       (275)

- Unrealised              (116)                  18           -
Revenue Reserve             106                  61          80
Total equity
shareholders' funds                     7,980       8,223       8,119
Net asset value per share               91.8p       93.2p       92.3p

Cash flow statement
                                Six months
                                        to Six months to   Year to 31
                              31 July 2009  31 July 2008 January 2009
                                     £'000         £'000        £'000

Net cash (outflow)/inflow
from operating activities             (44)          (64)          114

Financial investment:
Purchase of  fixed asset
investments                        (2,575)         (196)            -

Management of liquid
Net sale/(purchase) of money
market securities                  (2,166)           394      (3,431)
Sale of current asset
investments                          3,439             -        5,710

Dividends paid                        (87)          (66)        (110)

Cancellation of own shares            (83)             -         (20)
(Decrease)/increase in cash
at bank                            (1,516)            68        1,566

Reconciliation of net cash flow to movement in net funds
                                              Six months
                                Six months to to 31 July   Year to 31
                                 31 July 2009       2008 January 2009
                                        £'000      £'000        £'000
(Decrease)/increase in cash at
bank                                  (1,516)         68        1,566
Decrease in cash equivalents          (1,210)      (437)      (2,466)
Opening net cash resources              5,546      6,446        6,446
Net cash resources at end of
period                                  2,820      6,077        5,546

Reconciliation of profit before taxation to cash flow from operating
                                 Six months  Six months
                                 to 31 July  to 31 July    Year to 31
                                       2009        2008  January 2009
                                      £'000       £'000         £'000
Profit/(loss) on ordinary
activities before tax                    31        (66)         (106)
Gain on disposal of current
asset investments                         -           -          (19)
(Gain)/loss on valuation of
current asset investments              (63)          42           206
Decrease/(increase) in debtors           28         (1)            10
(Decrease)/increase in
creditors                              (40)        (39)            23
Net cash (outflow)/inflow from
operating activities                   (44)        (64)           114

Notes to the Half-Yearly Report

1.         Basis of preparation
The unaudited half-yearly results  which cover the  six months to  31
July 2009  have  been  prepared in  accordance  with  the  Accounting
Standard Board's  (ASB) statement  on half-yearly  financial  reports
(July 2007)  and adopting  the  accounting policies  set out  in  the
statutory accounts of the Company for the year ended 31 January 2009,
which were  prepared  under  UK  GAAP  and  in  accordance  with  the
Statement of Recommended Practice for Investment Companies issued  by
the Association of Investment Companies in January 2009.

2.         Publication of non-statutory accounts
The unaudited half-yearly results  for the six  months ended 31  July
2009 do  not  constitute statutory  accounts  within the  meaning  of
Section 240 of the Companies Act 1985 and have not been delivered  to
the Registrar  of Companies.  The comparative  figures for  the  year
ended 31 January 2008 have been extracted from the audited  financial
statements for that year, which have been delivered to the  Registrar
of Companies.  The independent  auditor's report  on those  financial
statements  under  Section  235  of   the  Companies  Act  1985   was
unqualified. This half-yearly  report has  not been  reviewed by  the
Company's auditor.

3.         Return per share
The return per share at 31 July  2009 are calculated on the basis  of
8,861,898 (31 January  2009: 8,813,950 and  31 July 2008:  8,818,986)
shares, being the weighted average  number of shares in issue  during
the year.

There are no potentially dilutive  capital instruments in issue  and,
therefore, no  diluted return  per share  figures are  relevant.  The
basic and diluted earnings per share are therefore identical.

4.         Net asset value per share
The net asset value per  share is based on net  assets as at 31  July
2009 divided by  8,693,486 (31  January 2009: 8,793,986  and 31  July
2008: 8,818,986) Shares in issue at that date.

5.         Dividends
The interim dividend of 1 pence  per share for the six months  ending
31 July 2009 will be paid  on 31 October 2009, to those  shareholders
on the register  on 9 October  2009. This will  be paid from  revenue

A final dividend, for the year ending 31 January 2009, of 1 pence per
share was paid on 31 July 2009  to shareholders on the register on  3
July 2009. This was paid wholly from revenue reserves.

6.         Principal Risks and Uncertainties
The Company's  assets  consist  of  equity  and  fixed-rate  interest
investments, cash  and  liquid  resources. Its  principal  risks  are
therefore market risk,  credit risk and  liquidity risk. Other  risks
faced by the  Company include economic,  loss of approval  as a  VCT,
investment and strategic,  regulatory, reputational, operational  and
financial risks. These risks, and the way in which they are  managed,
are described  in more  detail  in the  Company's Annual  Report  and
Accounts for the year ended 31 January 2009. The Company's  principal
risks and uncertainties have not changed materially since the date of
that report.

7.         Related Party Transactions
Octopus acts  as the  investment manager  of the  Company. Under  the
management agreement,  Octopus receives  a fee  of 2.0  per cent  per
annum of the net assets of the Company for the investment  management
services. During the period, the Company incurred management fees  of
£80,000 (31 January 2009: £190,000 and 31 July 2008: £98,000) payable
to Octopus. At the  period end there was  £Nil (31 January 2008:  Nil
and 31 July 2008: Nil) outstanding to Octopus.  Furthermore,  Octopus
Investments Limited provides  administration and company  secretarial
services to the Company.  Octopus Investments Limited receives a  fee
of 0.3  per  cent  per  annum  of  net  assets  of  the  Company  for
administration services and £7,500 per annum for company  secretarial

8.          Copies  of   this  statement  are   being  sent  to   all
shareholders. Copies are also available from the registered office of
the Company at  8 Angel  Court, London, EC2R  7HP, and  will also  be
available  to   view  on   the   Investment  Manager's   website   at


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.