Last checked at 
20 Oct 2008 08:54
Octopus (formerly Close) IHT AIM VCT plc ("Company" or "Fund")
20 October 2008
Interim Management Statement
For the period from 1 June 2008 to 15 October 2008
In accordance with Rule 4.3 of the UK Listing Authority's Disclosure and Transparency rules, Octopus IHT AIM VCT plc presents an Interim Management Statement for the period 1 June 2008 to 15 October 2008, being the latest weekly valuation prior to the date of this statement.
Change of Manager
Shareholders will be aware that in the period covered by this report there has been a change to the corporate identity of the Company. Following the move by Andrew Buchanan and Kate Tidbury from Close investments Limited to Octopus Investments Limited, your Board agreed to novate the Management Agreement to Octopus Investments. As a result it was necessary to change the name of your Company which was approved at a General Meeting at the beginning of September. Shareholders existing share certificates have not been replaced and remain valid.
Financial Highlights
| As at 15 October 2008 | As at 30 September 2008 | As at 31 May 2008 | As at 30 November 2007 | |
| Net assets ('000) | £16,884 | £17,929 | £21,613 | £23,518 |
| Net asset value per share ("NAV") | 67.6p | 71.8p | 86.5p | 94.2p |
| Cumulative dividends paid since launch | 5.4p | 4.4p | 4.4p | 3.4p |
| Total return (NAV plus dividends paid) | 73.0p | 76.2p | 90.9p | 97.6p |
| Share price | 73.0p | 73.0p | 88.0p | 94.0p |
| Premium/(discount) to NAV | (8.0)% | 1.7% | 1.7% | (0.2)% |
Investment Performance and Activity
Investors have faced a difficult time in the period covered by this report with significant turmoil in the stock market caused by the hiatus in the banking sector. The consequence has been a further reduction in share prices, most particularly amongst smaller companies, such as those this Venture Capital Trust ("VCT") invests in. The total return, as a result, has fallen by 19.7% between 1 May and 15 October. For the sake of comparison the FTSE AIM All Share Index has fallen by 53.5% between 1 June and 15 October and the FTSE SmallCap index by 31.9% in the same period.
Despite this market background not being conducive to flotations and further issues of new shares, this VCT has managed to make three new qualifying investments, totalling £2.1m. As at 15 October the fund is 65% invested in qualifying investments. It has until 30 November 2008 to reach the minimum 70% level required by HMRC regulations. With the current pipeline of opportunities your manager is confident of achieving this level. Following the change of manager outlined above, the reduction in the Close Special Situations Fund was accelerated and the final shares were sold in the period under review.
The total value of the AIM quoted investment portfolio at 15 October was £9.5m. These figures exclude cash holdings and are at bid prices.
Ten largest holdings by value as at 15 October 2008
| Company | Carrying value £'000 | Percentage of net assets |
| IS Pharma | 753 | 4.6% |
| Research Now | 663 | 3.9% |
| Animalcare Group | 654 | 3.8% |
| Advanced Computer Software | 618 | 3.7% |
| Pressure Technologies | 577 | 3.4% |
| Tasty | 550 | 3.3% |
| Essentaily | 527 | 3.1% |
| Mount Engineering plc | 499 | 3.0% |
| Clerkenwell Ventures plc | 468 | 2.8% |
| Neuropharm plc | 442 | 2.6% |
Dividends
As stated in the interim report for the 6 months ended 31 May 2008, a dividend of 1.0p per 'A' and 'B' Ordinary share was declared and this was paid to shareholders on 10 October 2008.
Buybacks
During the period the Fund bought back 15,250 'A' Ordinary shares at a price of 70p per share. These are currently held in Treasury.
Total voting rights and capital
At the date of this announcement, the capital of the Company consists of 7,299,461 'A' Ordinary shares and 17,680,650 'B' Ordinary shares with a nominal value of 0.01 pence each, with voting rights. Octopus IHT AIM VCT plc holds 15,250 'A' Ordinary Shares in Treasury.
Therefore, the total number of voting rights in the Company plc is 24,964,861.
The figure of 24,964,861 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Octopus IHT AIM VCT plc under the FSA's Disclosure and Transparency Rules.
Material events and transactions
The Board is not aware of any further material events or transactions between 15 October 2008 and the date of this report.
For further information please contact:
Andrew Buchanan/Kate Tidbury
Octopus Investments Limited
Tel: 020 7710 2800