Octopus Aim Regulatory News (OOA)

4 Jul 2008 17:24



Close Brothers AIM VCT PLC Interim Management Statement 

Introduction

I am pleased to present your Company's interim management statement for the period 1 March 2008 to 4 July 2008 as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.

Performance

The market, as I am sure you are well aware, has been volatile, wary of growth prospects for small companies and the economy in general and consequently share prices have experienced selling pressure and lack of interest from buyers.

The prevailing economic conditions and the increasing dominance of fear amongst investors have seen the FTSE AIM index fall in the period by 8.5%. This compares with the FTSE Small Cap Index (excluding investments trusts) which fell by 19%. Resource and oil exploration companies, which usually do not qualify for VCT investment, have played a part in reducing the fall of the AIM Index, but both indicate the way in which investor sentiment has changed this year.

In the period the Net Asset Value (NAV) of your Company has fallen from 110.23 pence as at 29 February 2008 to 89.67 pence per share as at 2 July 2008, a fall of 18.6%. Though understandable, this is not the result that we would like.  However in the period a dividend of 2.50 pence per share was paid which if added back would have resulted in a fall of 16.4%.

Portfolio

In the period from 1 March 2008 to 4 July 2008, your Company has made one new investment in Darwen Holdings plc for a total cost of £0.5m. During the same period, your Company disposed of its entire holdings in Hartest Holdings PLC, took further profits in Tanfield Group PLC, Hatpin PLC went into liquidation in May 2008 and Imprint PLC was taken over resulting in a loss of £0.1m.  The Company is over 80% invested in qualifying investments for HM Revenue & Customs purposes. This is in excess of the minimum 70% level required by HMRC regulations.

Top Ten Qualifying Holdings (as at 2 July 2008)

All of the top ten holdings are quoted and valued at bid prices as at 2 July 2008.

Material Events and Transactions

Dividends

As mentioned above, dividends of 2.50 pence per share were declared in the Annual Report and Financial Statements. These dividends were paid on 20 June 2008 to shareholders on the register on 23 May 2008. 

Corporate Action

Following the share conversion on 31 May 2008, as approved by the shareholders, your Company now has one class of shares, New Ordinary Shares. All shareholders should have received one share certificate for all the converted Ordinary shares and D shares. The conversion ratio was 0.5448 D shares per Ordinary share. Following the conversion, your Company now has 31,930,030 shares in issue.

Share buy backs

In the period from 1 March 2008 to 4 July 2008, your Company purchased 708,425 New Ordinary shares into Treasury, at an average price of 95 pence per share. 

As at the date of this report, the Fund has 1,251,973 shares in Treasury and total voting rights of 30,678,057.

462,765 New Ordinary share buybacks were transacted through Winterflood Securities Limited at an average price of 96 pence per share. Winterflood Securities Limited is a subsidiary of Close Brothers Group plc, which is also the ultimate parent Company of Close Investments Limited, the Investment Manager.

Conclusion

Your Company will continue to remain invested so as to maintain its venture capital trust status and your Investment Manager believes that it can continue to make sounds investments at attractive valuations like Darwen Holdings plc in June 2008.

There have been no further significant events or transactions that the Board are aware of which would have a material impact on the financial position of the Company between 1 March 2008 and 4 July 2008.

Information regarding historic and current financial performance and other useful shareholder information can be found on the Funds website: www.closeventures.co.uk and clicking the 'Our Funds' and then the Fund 'Close Brothers AIM VCT PLC'. 

4 July 2008

For further information please contact Andrew Buchanan/Kate Tidbury of Close Investments Limited

Tel: 0207 426 4139