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PUMA VCT PLC (PUA)

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Tuesday 28 October, 2008

PUMA VCT PLC

Interim Report





                            Puma VCT plc
                           Interim Report
               For the six months ended 31 August 2008
Chairman's Statement

Highlights

*         Net asset value per share of 100.49p. This represents a
  3.2% decrease from year-end (adding back the 1.5p 2008 final
  dividend paid on 2 July 2008) compared to a decrease of 21.4% on
  the FTSE AIM Index for the same period.

Introduction

During the six  months to  31 August 2008,  the investment  manager's
conservative approach  has held  Puma  VCT plc's  performance  stable
though the continuing turmoil inflicting the wider financial markets,
resulting in a small drop in NAV.

The fund has a remit to  invest in both unquoted and AIM/Plus  listed
equities,  but   the  investment   manager  has   concentrated   upon
investments in unquoted companies.  The focus in unquoted investments
is on  providing  secured  mezzanine finance  whilst  taking  minimum
equity  risk.   The  fund  also  holds  some  AIM  stocks  where  the
Investment Manager  considered  that the  fund-raising  offered  good
medium term value.

This strategy has proven to be  prudent as the AIM market fell  21.4%
during  the  six  months  to  31  August  2008,  suffering  from  the
continuing economic downturn affecting global financial markets.   It
is likely that the  value of typical unquoted  equities of a kind  in
which VCTs can invest will have fallen by the same amount or more. In
the same period the Company is reporting a fall of only 3.2%  (adding
back the 1.5p 2008 final dividend paid on 2 July 2008) in the NAV per
share which now stands at 100.49p.

The fall  in value  is primarily  attributable to  the Company's  AIM
quoted stocks,  many of  which are  trading at  a discount  to  their
respective net asset values. This is  less to do with the quality  of
these companies  than the  continuing result  of the  volatility  and
sentiment in the stock market for smaller companies that we  reported
on for the period ended 29 February 2008.

Existing Qualifying investments

Of the  existing unquoted  stocks, the  £2.1m investment  in  Cadbury
House Hotel & Country  Club plc (Cadbury  House), the leisure  centre
and hotel  complex near  Bristol, continues  to trade  very well  and
ahead of  budget.   Also,  Cadbury House  had  applied  for  planning
permission to build an extension to the hotel containing a further 58
bedrooms and  the application  is expected  to be  considered by  the
relevant committees over the next  few months.  This should  generate
further value to the Company's existing investment.

The Company  invested  £610k in  Stocklight,  the parent  company  of
Bloomsbury Auctions.  This investment is in mezzanine finance and  is
very  well  secured  both  by  freehold  commercial  property  and  a
well-spread  inventory  of   rare  books.    Stocklight  is   trading
profitably as a group, but the company has invested significantly  in
establishing a global footprint of its auction business. The  auction
sites in Rome and New York are taking time to generate a return,  but
overall our investment is secure.

The value  of the  quoted qualifying  stocks at  the period  end  was
£1,305,000, compared to  £1,746,000 at the  period ended 29  February
2008 and  is responsible  for the  bulk of  the fall  in NAV  in  the
period.  This reflects the difficult market conditions facing all AIM
stocks.  However  these stocks  make  up only  10.6% of  the  overall
portfolio and we expect that at  least some of the recent falls  will
reverse in due course.

Non-qualifying investments

The market  value  of  the non-qualifying  investment  portfolio  was
£3,564,000 at  the period  end  against an  underlying book  cost  of
£3,244,000.   This  portfolio  consists  of  three  elements,  listed
stocks, hedge funds and  a non-qualifying private equity  investment.
 Performance for  this  portfolio  for the  six  months  is  slightly
negative.

The  non-qualifying  private   equity  investment  is   in  a   hotel
development project  on  the outskirts  of  Winchester in  the  green
belt.  Having secured planning permission in this location we expect,
in due course, to record a gain  on this holding.  At present we  are
carrying it at cost.   Construction of a 120  bedroom hotel, to be  a
Holiday Inn Express, is  expected to begin in  September and to  take
about a year.

Results and dividends

As set-out in the accounts for  the period ended 29 February 2008,  a
dividend of 1.5p per  ordinary share was  declared during the  period
and paid on 2 July 2008.  Your  Board is not proposing a dividend  in
relation to  this  interim period  but  reiterates the  intention  to
distribute  a  large  element  of   the  available  income  and,   if
appropriate, realised capital gains in due course.

VAT on management fees

The Government has announced that VCTs will be exempt from paying VAT
on investment  management  fees  with effect  from  1  October  2008,
following  a  European  Court   of  Justice  judgement  against   the
Government in a case  relating to VAT  payable by investment  trusts.
This represents a prospective annual cost  saving for the Company  of
around £50,000. More recently, the Government has conceded that  VCTs
will be able to obtain a repayment of VAT paid on management fees  in
earlier periods (the  benefit of this  has not been  included in  the
current NAV).  We will  report on  our progress  in respect  of  this
beneficial development in due course.

Principal risks and uncertainties

It is clear that the UK  economy is in turmoil.  The consequences  of
this for our investment portfolio  constitute the principal risk  and
uncertainty for the Company in the second half of the year.

The Board

Chris Ring has resigned  as a director of  the Company and the  Board
has appointed Graham Shore, a  director of Shore Capital Limited,  as
his replacement. Chris has been a director of Puma VCT plc since  its
inception and has played a full and active role in the development of
the Company.  I would like thank him for his contribution.

Outlook

The Investment Manager continues to review opportunities as potential
investee companies look for alternate sources of debt finance brought
about by tighter  credit conditions. The  VCTs offering of  mezzanine
and equity finance for asset-backed growing companies continues to be
attractive benefiting from the ability to increase the sum offered by
spreading the investment across the five Puma VCTs.

The current portfolio of private equity holdings are sustaining their
strong position and limit the  Company's risk exposure in  qualifying
investments. The  AIM  qualifying  stocks, a  small  element  of  the
portfolio,  have  not  performed  well  during  the  period  but  the
Investment Manager is  monitoring them closely  and expects at  least
some of current losses to reverse in due course.

The investment manager is seeking new qualifying opportunities  which
match the  risk  averse  mandate  of the  Company.  The  Company  has
sufficient cash resources  to capitalise on  any opportunities  which
arise and the timing for  making investments into mezzanine in  solid
private companies is now much more favourable.

I look forward to reporting the progress of the Company with the next
Annual Report for the year ended 28 February 2009.

Sir Aubrey Brocklebank Bt
Chairman
28th October 2008

Income Statement (unaudited)
For the six months ended 31 August 2008



                   Six months ended        Six months ended      Period ended
                   31 August 2008          30 June 2007          29 February 2008

                   Revenue Capital Total   Revenue Capital Total Revenue Capital Total
              Note £'000   £'000   £'000   £'000   £'000   £'000 £'000   £'000   £'000

(Loss)/gains
on
investments            -     (578)   (578)     -       624   624     -     (584)   (584)
Income                 282     -       282     134     -     134     480       -     480

                       282   (578)   (296)     134     624   758     480   (584)   (104)


Investment
management
fees          4         36     108     144      41     124   165      92     277     369
Performance
fees                    31   (131)   (100)       6     100   106      46   (170)   (124)
Other
expenses                61     -        61      65     -      65     148       -     148

                       128    (23)     105     112     224   336     286     107     393

(Loss)/return
on ordinary
activities
before
taxation               154   (555)   (401)      22     400   422     194   (691)   (497)
Tax on return
on ordinary
activities            (29)      29     -         4     (4)   -      (12)      12       -

(Loss)/return
on ordinary
activities
after tax
attributable
to
 equity
shareholders           125   (526)   (401)      26     396   422     182   (679)   (497)


(Loss)/return
per  Ordinary
Share (pence) 2      1.03p (4.35)p (3.32)p   0.22p   3.28p 3.50p   1.50p (5.61)p (4.11)p



The revenue column of  this statement is the  profit and loss of  the
Company.  All revenue and capital items in the above statement derive
from  continuing  operations.    No  operations   were  acquired   or
discontinued in the period.
Balance Sheet (unaudited)
As at 31 August 2008

                                        As at     As at         As at
                                    31 August   30 June   29 February
                             Note        2008      2007          2008
                                        £'000     £'000         £'000
Fixed Assets
Investments                  7         11,638    13,096        12,406


Current Assets
Debtors                                   233       138           171
Cash at bank and in hand                  465       945           477

                                          698     1,083           648
Creditors - amounts falling
due within one year                      (99)     (112)         (135)

Net Current Assets                        599       971           513

Total Assets less Current
Liabilities                            12,237    14,067        12,919

Creditors - amounts falling
due after more than one year
(including convertible debt)              (1)       (1)           (1)

Net Assets                             12,236    14,066        12,918

Capital and Reserves
Called up share capital                   121       121           121
Capital reserve - realised                891       464         1,092
Capital reserve - unrealised            (744)     1,283         (419)
Other reserve                              87       417           187
Revenue reserve                        11,881    11,781        11,937

Equity Shareholders' Funds             12,236    14,066        12,918


Net Asset Value per Ordinary
Share                           3     101.21p   116.37p       106.86p

Diluted Net Asset Value per
Ordinary Share                  3     100.49p   112.92p       105.31p





Cash Flow Statement (unaudited)

For the six months ended 31 August 2008

                                 Six months
                                      ended   Six months Period ended
                                  31 August        ended  29 February
                                       2008 30 June 2007         2008
                                      £'000        £'000        £'000

Operating activities
Investment income received              221          102          385
Investment management fees paid       (145)        (239)        (476)
Cash paid to directors                 (11)         (11)         (26)
Foreign exchange gain/(loss) on                       27           24
cash                                    (2)
Other cash payments                    (63)         (72)        (135)

Net cash outflow from operating
activities                              -          (193)        (228)

Equity dividend paid                  (181)        (109)        (109)

Capital expenditure and
financial investment
Purchase of investments               (269)      (3,411)      (7,434)
Proceeds from sale of                              3,758
investments                             500                     7,276
Acquisition costs                         -            -          (1)
Net realised (loss)/gain on
forward foreign exchange
contracts                              (62)           19           92

Net cash outflow from capital
expenditure and financial
investment                              169          366         (67)

(Decrease)/increase in cash            (12)           64        (404)

Reconciliation of net cash flow
to movement in net funds
Decrease in cash for the period        (12)           64        (404)
Net cash at start of the period         477          881          881

Net funds at the period end             465          945          477









Reconciliation of Movements in Shareholders' Funds (unaudited)
For the six months ended 31 August 2008




                   Called
                       up  Capital    Capital
                    share reserve-   reserve-   Other Revenue
                  capital realised unrealised reserve reserve   Total
                    £'000    £'000      £'000   £'000   £'000   £'000

                            Six months ended 31 August 2008

Balance at 1
March 2008            121    1,092      (419)     187  11,937  12,918
Total recognised
(losses)/gains
for the period        -      (201)      (325)   (100)     125   (501)
Equity dividend
paid                  -        -          -       -     (181)   (181)
Balance at 31
August 2008           121      891      (744)      87  11,881  12,236

                             Six months ended 30 June 2007

Balance at 1
January 2007          121      108      1,243     311  11,864  13,647
Total recognised
(losses)/gains
for the period        -        356         40     106      26     528
Equity dividend
paid                  -        -          -       -     (109)   (109)
Balance at 30
June 2007             121      464      1,283     417  11,781  14,066

                         For the period ended 29 February 2008

At 1 January 2007     121      108      1,243     311  11,864  13,647
Total recognised
(losses)/gains
for the period        -        984    (1,662)   (124)     182   (620)
Equity dividend
paid                  -        -          -       -     (109)   (109)
Balance at 29
February 2008         121    1,092      (419)     187  11,937  12,918



Notes to the Interim Report
For the six months ended 31 August 2008

1.             Accounting Policies

The financial statements have been prepared under the historical cost
convention, modified to include the revaluation of fixed asset
investments, and in accordance with applicable Accounting Standards
and with the Statement of Recommended Practice, "Financial Statements
of Investment Trust Companies" ("SORP") December 2005. Although this
SORP principally applies to Investment Trusts, many of the
characteristics of Investment Trusts are shared by VCTs therefore the
Company will continue to follow the SORP until investment company
status is revoked.

2.             Return per Ordinary Share

The total loss per share of 3.32p (30 June 2007 - return of 3.50p) is
based on the loss for the period of £401,000 (30 June 2007 - profit
of £422,000) and the weighted average number of shares in issue as at
31 August 2008 of 12,087,500 (30 June 2007 - 12,087,500).

3.             Net asset value per share


Period                                      Net Asset Value per share
                Net assets  Shares in issue    Basic       Diluted
31 August 2008  £12,236,000   12,087,500      101.21p      100.49p
29 February     £12,918,000   12,087,500      106.86p      105.31p
2008
30 June 2007    £14,066,000   12,087,500      116.37p      112.92p


4.             Management fees

The Company pays the Investment Manager an annual management fee of
2% (plus VAT) of the Company's net assets.  The fee is payable
quarterly in arrears.  The annual management fee is allocated 75% to
capital and 25% to revenue.

5.             Related Party Transactions

Related party transactions are described the 2008 Annual Report and
Accounts on page 36. There were no other related party transactions
during the six months ended 31 August 2008.

6.             The financial information for the six months ended 31
August 2008 and 30 June 2007 has not been audited and does not
comprise full financial statements within the meaning of Section 240
of the Companies Act 1985. The financial information for the period
ended 29 February 2008 has been extracted from the company's full
financial statements for the period then ended that have been
delivered to the Registrar of Companies, and on which the report of
the Auditors was unqualified. The interim financial statements have
been prepared on the same basis as the annual financial statements.

Notes to the Interim Report continued
For the six months ended 31 August 2008

7.             Investment portfolio summary


                              Cost Valuation   Gain/ Valuation as a %
As at 31 August 2008         £'000     £'000  (loss)    of Net Assets

Qualifying investment -
unquoted
Albemarle Contracting Ltd    1,000     1,000     -                 8%
Bond Contracting Ltd         1,532     1,532     -                13%
Clifford Contracting Ltd     1,515     1,515     -                12%
Cadbury House Hotel &        2,110     2,110     -                17%
Country Club plc
Stocklight Limited             610       610     -                 5%

Qualifying investment -
quoted
@UK plc                        415        25   (390)               0%
Alterian plc                    19        20       1               0%
Clarity Commerce Solutions     142        44    (98)               0%
plc
I-Design Group plc              59        30    (29)               0%
INVU plc                       119        89    (30)               1%
Mount Engineering plc          223       206    (17)               2%
Patsystems plc                 311       468     157               4%
Sport Media plc                305        74   (231)               1%
Universe Group plc             174        93    (81)               1%
Vertu Motors plc               593       257   (336)               2%
Total qualifying             9,127     8,073 (1,054)              66%
investments

Non-qualifying investments
Hedge fund portfolio         1,875     2,293     418              18%
Loan stock - interest          297       334      37               3%
bearing
Other quoted investments     1,072       938   (134)               8%
Total non-qualifying         3,244     3,565     321              29%
investments

Total  investments          12,371    11,638   (733)              95%
Balance of portfolio           598       598                       5%

Net Assets                  12,969    12,236   (733)             100%

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