Octopus Second AIM VCT plc : Interim Management...
Octopus Second AIM VCT plc ("the Company")
10 October 2011
Interim Management Statement
For the period from 1 June 2011 to 3 October 2011
In accordance with Rule 4.3 of the UK Listing Authority's Disclosure and
Transparency rules, Octopus Second AIM VCT plc presents an Interim Management
Statement for the period 1 June 2011 to 3 October 2011. The statement also
includes relevant financial information between the end of the period and the
date of this statement.
Financial Summary
As at 3 October 2011 As at 31 May 2011
------------------------------------------------------------------------------
Total net assets (£'000s) 27,084 29,009
Net asset value per share ("NAV") 63.3p 68.6p
Cumulative dividend - paid since launch 13.15p 11.55p
Investment performance
The NAV at 3 October 2011 was 63.3p, which has been calculated excluding the
1.6p dividend that was paid on 7 October 2011. This compares with an NAV of
68.6p on 31 May 2011. Adding back the dividend, this decline of 5.4% compares
with a fall in the AIM index of 23.6% and in the Smaller Companies Index ex
investment trusts of 15.3% over the same period.
In contrast to this period last year, share prices of smaller companies have
tended to drift lower as concerns about European government finances and global
growth have weighed heavily on investors. The VCT's portfolio has not been able
to avoid some of the turmoil in stock markets worldwide, despite being very
substantially exposed only to the UK economy. There have, of course, been widely
reported concerns too about the UK economy and its ability to grow in the
foreseeable future. However, as the performance of the NAV of this VCT shows
some smaller companies and their share prices have performed very creditably in
this period. The September results period would tend to suggest that this
situation can continue. Most encouragingly there have been some interesting new
issues in June and July and the recent investment activity is set out below.
The last few weeks have been a seasonally quiet period for flotations, but we
believe that several are planned for coming months.
Investment Activity
The Company closed its fundraising on 9 July 2011 having raised £6.8m. There has
continued to be a certain amount of take-over activity in the portfolio, with
both Individual Restaurants and CBG taken over for cash during the summer and
Clarity Commerce Solutions and Atlantic Global currently in bid situations.
The Company has invested a total of £2.54m in VCT qualifying holdings in the
period, including one follow on investment into Strategic Thought (now renamed
Active Risk), and investments into In-Deed Online, Enteq Upstream, MyCelx
Technologies and Escher Group, all of which were new issues. £0.54m of non -
qualifying investments were made into Hargreaves Services, Hamworthy and Gooch
and Housego as valuations fell, and it is expected that prevailing market
conditions will continue to provide opportunities to invest in good growth
companies at attractive valuations.
.
Ten largest equity holdings as at 3 October 2011:
Carrying value
Carrying value as a % of total
Investee Company Sector £'000 net assets
--------------------------------------------------------------------------------
Animalcare Group plc Food Producers 1,532 5.7
Advanced Computer Software & Computer
Software plc Services 1,365 5.0
EKF Diagnostics plc Healthcare 1,095 4.0
Craneware plc Healthcare 914 3.4
Breedon Aggregates
ltd Construction 913 3.4
Brooks Macdonald plc Financial Consultants 904 3.3
Software & Computer
IDOX plc Services 899 3.3
Sinclair IS Pharma Pharmaceuticals &
plc Biotechnology 874 3.2
Enteq Upstream plc Oil Services 824 3.0
Escher Group Software & Computer
Holdings plc Services 750 2.8
Dividends
On 26 August 2011 the Board declared an interim dividend of 1.6 pence per
Ordinary share. This was paid on 7 October 2011 to those shareholders who were
on the register on 9 September 2011.
Buybacks
During the period the Company purchased 424,365 shares at a weighted average
price of 60.3p per share for cancellation.
Material events and transactions
An allotment of 1,242,720 Ordinary shares was made on Friday 8 July 2011 at a
price of 74.07 pence per share.
The Fund's Board is not aware of any other significant event or transaction
which has occurred between 3 October 2011 and the date of publication of this
statement which would have a material impact on the financial position of the
Fund.
For further information please contact:
Kate Tidbury / Andrew Buchanan - Fund Managers
Octopus Investments Limited - 0800 316 2347
ENDS
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Octopus Second AIM VCT plc via Thomson Reuters ONE
[HUG#1553691]
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