Unicorn Asset Management Regulatory News (UAV)

Unicorn AIM VCT plc

Interim Management Statement

For the period from 1 April 2014 to 30 June 2014

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 2014, 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

The three month period to 30 June 2014 was one of continued modest progress for the main UK equity market. Over the period as a whole, the FTSE All-Share Index (excluding investment trusts) registered a total return of +2.3%. By contrast, the FTSE AIM All-Share Index suffered quite badly, recording a total return of -7.5%.

The Company again delivered strong relative outperformance during the period, with Net Asset Value (NAV) increasing by +3.7%. 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 2014, the unaudited NAV was 148.1 pence per share, compared to an unaudited NAV of 142.8 pence per share as at 31 March 2014. Net assets amounted to £94.6m at the period end, consolidating Unicorn's position as the largest AIM focused VCT in the market.

A number of VCT qualifying holdings performed particularly strongly in the period under review. The most notable of these were:-

Accumuli (+26.5%), is an independent specialist in IT Security and Risk Management, that continues to develop through a combination of organic growth and selective acquisition. In its financial year ended 31 March 2014, Accumuli recorded an 18% growth in revenues and a 32% increase in adjusted profits before tax. This strong performance has resulted in a 15% increase in the proposed dividend. Accumuli's customer base has more than doubled in the past year and now stands at over 700, which underpins the prospects for continued growth.

Crawshaw Group (+116.1%), a Yorkshire based chain of retail butchers. In the three months to 30 June 2014, Crawshaw's share price rose by 116% driven by a series of positive trading updates. Following the period end, Crawshaw announced an £8.8m conditional placing of new shares in order to help finance a significant acceleration of their store opening programme. Unicorn AIM VCT committed a further £1m to support this fundraising. It is anticipated that this new investment will be VCT qualifying.

Tristel (+74.2%), a manufacturer of infection prevention, contamination control and hygiene products. Tristel shares performed particularly strongly in the period under review following the release of two successive trading updates in which profit forecasts were meaningfully upgraded.

Other notable contributions came from Cohort (+27.9%), HML Holdings (+19.8%), IDOX (+14.1%) and Tracsis (+21.7%).

During the period, there were only a small number of holdings that performed poorly. In addition, most of the investee companies that did experience share price declines, were affected by technical factors (such as profit-taking), rather than by problems surrounding operational issues or materially disappointing trading.

In terms of negative absolute contribution, the three worst performers were; Hasgrove (-32.9%), Mears Group (-10.8%), and Omega Diagnostics (-22.6%).

Material Transactions

Three investments were made in the period:-

Arbuthnot Banking Group, an AIM listed banking group with interests in private and retail banking. This investment is non-qualifying for VCT purposes.

Heartstone Inns, a privately owned pub chain which has raised capital under VCT qualifying rules to help accelerate the expansion of its estate of freehold pubs.

WYG, a specialist project management and technical consultancy business. A further purchase of non VCT qualifying shares in WYG was made in the period.

In total, almost £2.8m was committed to these new investment opportunities.

There was one disposal made in the period:-

Pilat Media Global, a business focused on providing software solutions to the global media sector, was acquired for cash by Sintec Media, a trade competitor. It is anticipated that the final cash proceeds from this disposal will amount to just over £475,000.

Share Buy-Backs / Issue of Equity

During the period from 1 April 2014 to 30 June 2014, the Company bought back 583,340 of its own Ordinary Shares for cancellation, at an average price of £1.25 per share.

In the same period, 4,025,467 Ordinary shares were issued under the Offer for Subscription, at an average price of £1.48 per share.

After the period end, a final allotment of 675,629 Ordinary Shares was made in relation to this Offer for Subscription, which has now closed.

In total, £13.74m of additional capital has been raised under this Offer for Subscription, which closed on 30 June 2014. The Board would like to take this opportunity to welcome new shareholders and to thank all shareholders for their continued support.

There were 64,550,193 Ordinary Shares in issue at the date of this announcement.

Material Events

Since the period end, a £1.25m non-qualifying investment was made in Epwin Group, a manufacturer and supplier of building products predominantly to the UK residential housing market. Epwin is being admitted to AIM and its shares are scheduled to commence trading on 24 July 2014.

There were no other material events during the period from 1 April 2014 to 30 June 2014.

Contact details for further enquiries:

Chris Hutchinson of Unicorn Asset Management Limited (the Investment Manager),

on 020 7253 0889.

Robert Brittain at Mobeus Equity Partners LLP (the Company Secretary)

on 020 7024 7600 or by e-mail on unicorn@mobeusequity.co.uk

DISCLAIMER

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.