RE: The Elephant in the Room28 Apr 2026 08:32
Hi S
Based on the available Octopus AIM VCT 2 plc reports and portfolio updates, there is no evidence of a full divestment of the Itaconix portfolio as of the most recent updates in early 2026.
• Initial Investment: Octopus AIM VCT 2 plc invested £1.1 million in Itaconix (a producer of plant-based polymers) to support growth initiatives.
• Recent Portfolio Status: While Octopus AIM VCT 2 has actively disposed of other assets (such as Adept Telecom and TP Group) and made smaller sales, Itaconix (ITX:LSE) has remained part of the investment portfolio.
• Activity Update: As of March 2026, the company continues to manage its AIM portfolio with minor investments and disposals but has not reported a sale of its Itaconix stake.
Octopus Investments, a significant stakeholder in Itaconix plc (holding around 10%), has been looking to divest its position, a move characterized as an internal portfolio management decision rather than a reflection of Itaconix’s business performance.
Key Aspects of the Portfolio Review & Divestment:
• Context: The divestment is seen as an internal issue within Octopus rather than a negative reflection on Itaconix Plc (ITX).
• Impact on Share Price: The divestment news has created pressure on the share price, with some investors noting that the selling (e.g., around 105p) does not reflect the company's growth potential.
• Itaconix Performance: Despite the divestment pressure, Itaconix has reported strong growth, improved gross profit margins (increasing to 34.7% in 2024 from 31.0% in 2023), and a broadened customer base.
• Strategic Direction: Itaconix has focused on high-growth areas, such as ingredients for detergent and personal care, following the decision to drop lower-margin customers.
Itaconix +3
Background on Octopus AIM VCTs:
• Octopus AIM VCTs have experienced challenging market conditions in 2023, resulting in a net asset value (NAV) decrease for some funds, such as Octopus AIM VCT 2, which saw a 8.8% decline.
• These VCTs focus on profitable companies and companies with potential, with the investment manager actively managing and rebalancing portfolios.
• The VCTs have continued to manage investments and divestments to navigate the current challenging environment.
Octopus Investments +4
Overall, the Octopus divestment appears to be a portfolio rebalancing activity, with Itaconix continuing to show strong operational growth in its core markets.
So maybe that is them done?
ATB
AJP
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