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PUMA VCT plc (PUA)

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Tuesday 26 September, 2006

PUMA VCT plc

Interim Results

PUMA VCT plc
26 September 2006


Interim Results for the Six Months ended 30 June 2006

Chairman's Statement

Highlights
     
•    Undiluted net asset value per share of 110.17p, a 5.1% increase from
     year-end.
•    Fully diluted net asset value of 108.14p, an increase of 4.1%.
•    Strong performance of alternative asset investments during the period.
•    Deal flow of larger qualifying investments in pipeline.

Introduction

During the six months to 30 June 2006, the Company's net asset value grew by
5.1%, in excess of targets.  This was accomplished from investments in
qualifying companies selected as being on the whole lower risk whilst making
alternative asset investments intended to provide an absolute return with low
volatility.  Although the rate of new qualifying investments in the first half
of this year was lower than expected, the flow of potential new deals is
currently strong and we expect a significant upturn in activity before the
year-end.

Net asset value

2006 has begun well with the Company's net asset value up 5.1% to 110.17p.  The
diluted net asset value is up 4.1% to 108.14p after accruing for potential
performance fees.  The increase is largely due to the Investment Manager's focus
on maximising the returns of its hedge fund portfolio and other non-qualifying
listed investments.

The total return for the six month period to 30 June 2006 was 4.26p, comprising
a revenue return of 0.23p and a capital return of 4.03p.

Dividends

Your Board is not proposing a dividend for the period.  When the portfolio is
more fully established the Directors intend to distribute a large element of the
available income and, if appropriate, realised capital gains.


Qualifying investments

During the six months a total of £285,000 was invested in the following
companies:
     
•    Clarity Commerce Solutions Plc (£142,000) is an AIM quoted provider of 
     software and IT support services based in Basingstoke.

•    Interactive World Plc (£102,000) is an AIM quoted distributor of digital 
     media content to customers of major UK mobile network operators and users 
     of leading UK internet search engines based in Barking.

•    Debts.co.uk Plc (£41,000) is an AIM quoted personal debt consolidator based 
     in Chesterfield.

The Investment Managers have been selective about investing into qualifying
companies on AIM because they believed that new issues available to VCTs in the
first five months of this year were generally over-valued and in many cases by
poor quality companies.  Since then, the small cap market has retrenched
bringing valuations down to a more reasonable level.  This should provide a
better environment from which to invest in qualifying companies.

The qualifying portfolio now consists of six investments and represents
approximately 17% of assets as at 30 June 2006.  With some larger qualifying
investments to be made in the near-term, your Board is confident the requirement
for at least 70% to be invested in qualifying companies after three years will
be met within the timescale.

Non-qualifying investments

The Investment Manager's non-qualifying portfolio has performed strongly in the
six months to 30 June 2006 producing the bulk of the Company's total return in
this period.  The Investment Manager continues to seek out hedge funds which
meet the goal of absolute return and to construct a portfolio with a low
correlation of underlying funds and a consequent low volatility at the portfolio
level.  As the funding of qualifying investments increases, the hedge fund
portfolio will be progressively liquidated to meet this need.


Outlook

The Company's Investment Manager, Shore Capital, currently has a strong deal
flow of interesting qualifying opportunities in private equity deals.  The
recent turbulence in equity markets has brought valuations down to a more
realistic level which should provide interesting opportunities.

I look forward to reporting the progress of the Company with the next Annual
Report for the year ended 31 December 2006. In the meantime, shareholders should
note that the Company publishes its net asset value per share each month over
the London Stock Exchange's electronic system.


Sir Aubrey Brocklebank Bt
Chairman

26 September 2006




Income Statement (unaudited)
For the six months ended 30 June 2006

                             1 January 2006 to           5 November 2004 to          5 November 2004 to
                             30 June 2006                30 June 2005                30 December 2005

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

Gains on investments                 -       703     703         -        19      19         -       887     887
Income                             134         -     134       109         -     109       259         -     259

                                   134       703     837       109        19     128       259    887      1,146

Investment management  4            35       106     141        22        66      88        54       162     216
fees
Performance fees                     7       121     128         -         -       -        10       107     117
Other expenses                      53         -      53        36         -      36       102         -     102

                                    95       227     322        58        66     124       166       269     435

Return on ordinary                  39       476     515        51      (47)       4        93       618     711
activities before
taxation
Tax on return on                  (11)        11       -                                  (28)        28       -
ordinary activities

Return on ordinary
activities after tax
attributable to                     
equity shareholders                 28       487     515        51      (47)       4        65       646     711


Return per  Ordinary   2         0.23p     4.03p   4.26p     0.42p   (0.39)p   0.03p     0.58p     5.78p   6.36p
Share (pence)


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 30 June 2006
                                                            As at               As at                   As at
                                                     30 June 2006        30 June 2005        31 December 2005
                                    Note                    £'000               £'000                   £'000
Fixed Assets
Investments                         6                      11,533               5,724                   9,482


Current Assets
Trades in advance                                               -                   -                     494
Debtors                                                        94                   3                      21
Cash                                                        1,819               6,453                   2,812

                                                            1,913               6,456                   3,327
Creditors - amounts falling due                             (128)               (330)                   (134)
within one year

Net Current Assets                                          1,785               6,126                   3,193

Total Assets less Current                                  13,318              11,850                  12,675
Liabilities


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

Net Assets                                                 13,317              11,849                  12,674

Capital and Reserves
Called up share capital                                       121                 121                     121
Share premium account                                           -              11,725                       -
Capital reserve - realised                                     47                (73)                   (371)
Capital reserve - unrealised                                1,086                  26                   1,017
Other reserve                                                 245                   -                     117
Revenue reserve                                            11,818                  51                  11,790

Equity Shareholders' Funds                                 13,317              11,849                  12,674


Net Asset Value per Ordinary Share  3                     110.17p              98.03p                 104.85p

Diluted Net Asset Value per         3                     108.14p              98.03p                 103.88p
Ordinary Share




Cash Flow Statement (unaudited)
For the six months ended 30 June 2006
                                                 1 January 2006 to    5 November 2004 to    5 November 2004 to
                                                      30 June 2006          30 June 2005      31 December 2005
                                                             £'000                 £'000                 £'000

Operating activities
Return on ordinary activities before taxation                   39                    51                    93
Investment management fee charged to capital                 (106)                  (66)                 (162)
Performance fee to be effected through                           7                     -                    10
share-based payment
Foreign exchange (loss)/gain on cash                           (7)                     4                    23
Increase in debtors                                           (73)                   (3)                  (21)
(Decrease)/increase in creditors                              (14)                   330                   110

Net cash (outflow)/inflow from operating                     (154)                   316                    53
activities

Capital expenditure and financial investment
Purchase of investments                                    (3,995)               (6,395)               (9,812)
Proceeds from sale of investments                            2,344                   788                 1,502
Decrease/(increase) in trades in advance                       494                     -                 (494)
Net realised gain/(loss) on forward foreign                    318                 (103)                 (284)
exchange contracts

Net cash outflow from capital expenditure and                (839)               (5,710)               (9,088)
financial investment

Financing
Proceeds received from issue of ordinary share                   -                12,088                12,088
capital
Expenses paid for issue of share capital                         -                 (242)                 (242)
Proceeds received from issue of redeemable                       -                     -                    50
preference shares
Redemption of redeemable preference shares                       -                     -                  (50)
Proceeds received from convertible loan notes                    -                     1                     1

Net cash inflow from financing                                   -                11,847                11,847

(Decrease)/increase in cash                                  (993)                 6,453                 2,812

Reconciliation of net cash flow to movement in
net funds
(Decrease)/increase in cash for the period                   (993)                 6,453                 2,812
Net cash at start of the period                              2,812                     -                     -

Net funds at the period end                                  1,819                 6,453                 2,812




Reconciliation of Movements in Shareholders' Funds (unaudited)
For the six months ended 30 June 2006

                                                        Six months ended 30 June 2006

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

Balance at 31 December 2005            121            -     (371)        1,017       117       11,790    12,674
Combined net return on                   -            -       418           69       128           28       643
ordinary activities after
taxation
Balance at 30 June 2006                121            -        47        1,086       245       11,818    13,317


                                                 Period from 5 November 2004 to 30 June 2005

Share issues in the period             121       11,967         -            -         -            -    12,088
Expenses of share issues                 -        (242)         -            -         -            -     (242)
Combined net return on                   -            -      (73)           26         -           51         4
ordinary activities after
taxation
Balance at 30 June 2005                121       11,725      (73)           26         -           51    11,849


                                               Period from 5 November 2004 to 31 December 2005

Share issues in the period             121       11,967         -            -         -            -    12,088
Expenses of share issues                 -        (242)         -            -         -            -     (242)
Combined net return on
ordinary activities after
taxation                                 -            -     (371)        1,017       117           65       828
Capital reconstruction                   -     (11,725)         -            -         -       11,725         -
Balance at 31 December 2005            121            -     (371)        1,017       117       11,790    12,674



Notes to the Interim Report
For the six months ended 30 June 2006
     
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.

The Company is required to comply with a number of new UK Financial Reporting
Standards (FRS), which now represent UK Generally Accepted Accounting Practice
(UK GAAP), in presenting its financial statements for the year ending 31
December 2006. These Standards have been introduced as part of the process of
aligning UK accounting principles with International Accounting Standards. The
unaudited interim financial statements for the six months ended 30 June 2006
have been prepared in compliance with the new Standards.  There is no change
with respect to the accounting policies from those used in preparing the annual
financial statements for the year ended 31 December 2005.
     
2.   Return per Ordinary Share

The total return per share of 4.26p (30 June 2005 - 0.03p) is based on the
profit for the period of £515,000 (30 June 2005 - £4,000) and the weighted
average number of shares in issue as at 30 June 2006 of 12,087,700 (30 June 2005
- 12,087,700).
     
3.   Net asset value per share

Period                                                            Net Asset Value per
                                                                         share
                             Net assets        Shares in issue     Basic     Diluted
30 June 2006                 £13,317,000         12,087,700       110.17p    108.14p
31 December 2005             £12,674,000         12,087,700       104.85p    103.88p
30 June 2005                 £11,849,000         12,087,700        98.03p     98.03p
     
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.   The financial information for the six months ended 30 June 2006
and the period ended 30 June 2005 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 31 December 2005 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 30 June 2006
     
6.   Investment portfolio summary
                                                            Cost     Valuation Valuation as a % of
As at 30 June 2006                                         £'000         £'000          Net Assets

Qualifying investment - unquoted
Cadbury House Hotel & Country Club plc - equity               71            98         1%
Cadbury House Hotel & Country Club plc - debt                640           954         7%

Qualifying investment - quoted
Clarity Commerce Solutions plc                               142           129         1%
Debts.co.uk plc                                               41            43         1%
Interactive World plc                                        102           114         1%
Patsystems plc                                               311           342         3%
@UK plc                                                      415           553         3%
Total qualifying investments                               1,722         2,233         17%

Non-qualifying investments
Hedge fund portfolio - unquoted                            1,526         1,693         13%
Hedge fund portfolio - quoted                              4,995         5,446         41%
Other quoted investments                                   1,286         1,505         11%
Fixed interest security                                      657           656         5%
Total non-qualifying investments                           8,464         9,300         70%

Total  investments                                        10,186        11,533         87%
Balance of portfolio                                       1,784         1,784         13%


Net Assets                                                11,970        13,317        100%



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