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25 Jul 2011 10:30
Unicorn AIM VCT plc
Interim Management Statement
For the period from 31 March 2011 to 30 June 2011
Introduction
The Company has prepared this Interim Management Statement (IMS) in accordance with the Disclosure and Transparency Rules of the UK Listing Authority. The IMS covers the three month period ended 30 June 2011, together with relevant information up to the date of publication.
Investment Objective
The objective of the Company is to provide Shareholders with an attractive return from a diversified portfolio of investments, predominantly in the shares of AIM quoted companies, by maximising the stream of dividend distributions to Shareholders from the income and capital gains generated by the portfolio.
It is also the objective that the Company should continue to qualify as a Venture Capital Trust, so that Shareholders benefit from the taxation advantages that this brings. To achieve this at least 70% of the Company's total assets are to be invested in qualifying investments of which 30% by value must be in ordinary shares carrying no preferential rights to dividends or return of capital and no rights to redemption.
Performance
Most UK equity indices delivered modest gains in the three month period ended 30 June 2011 with the FTSE All-Share Index up 1.9% on a total return basis, whilst the FTSE SmallCap Index gained 2.4%. In contrast, the FTSE AIM All-Share Index fell by 4.6%.
The Company outperformed during the period with Net Asset Value (NAV) increasing by 3.8%. NAV performance is calculated on a total return basis, after adding back dividends paid. No dividends were paid in the period.
As at 30 June 2011, the unaudited NAV was 113.69 pence per share, compared to an unaudited NAV of 109.51 pence per share as at 31 March 2011.
Material Transactions
There were a number of material transactions during the period under review.
In the Company's qualifying portfolio, IS Pharma completed a merger with Sinclair Pharma to create an international speciality pharmaceutical company with a market capitalisation of c. £115m.
Partial disposals of Abcam were undertaken, which generated net proceeds of £ 812,000 and a capital gain of over £740,000.
There were no new VCT qualifying investments in the three months to 30 June 2011, but four new investments were made for the non-qualifying portfolio:-
IQE, a leading global supplier of advanced semiconductor wafer products and wafer services to the semiconductor industry
Scottish & Southern Energy, the UK's second largest electricity generator and supplier of gas and electricity to over 10 million customers within Great Britain and Ireland
Staffline,a recruitment organisation that specialises in the supply of temporary staff
Tricorn, a manufacturer and specialist manipulator of pipe and tubing assemblies to niche markets worldwide in the Energy, Transportation, Aerospace and Utilities sectors.
The total cost of the four new non-qualifying investments was £1.2m and, in aggregate, they made a positive initial contribution to performance of £ 134,000.
Existing holdings in Charles Taylor Consulting,Portmeirion,Renold andSpecialist Energy Groupwere added to at a total net cost of just over £1m.
There were no other material transactions in the period under review.
Top 10 Equity Holdings at 30 June 2011
Stock % of fund
Abcam 14.2%
Unicorn UK Smaller Companies Fund 8.0%
Animalcare Group 4.1%Mattioli Woods 4.0%Green Compliance 3.3%Mears 3.2%Kiotech 2.9%
Unicorn Mastertrust Fund 2.8%
Surgical Innovations 2.6%
Unicorn Free Spirit Fund 2.0%
Total 47.1%
Material Events
In the three months to 30 June 2011, a total of 885,407 Company Ordinary Shares were purchased for cancellation at an average price of 97.4 pence per share.
After the period end, a further 586,564 shares were purchased for cancellation at a price of 98 pence per share.
The Offer for Subscription, which was launched on 14 December 2010, raised a total of £3.4m and was closed on 30 June 2011.
There were no other material events during the period under review.
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