Last checked at 
18 Feb 2008 11:04
Unicorn AIM VCT plc
Interim Management Statement
For the period from 1 October 2007 to 31 January 2008
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 four month period ended 31 January 2008, 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 period under review has been a difficult one for UK equity markets generally as investors became increasingly concerned about the economic outlook. Smaller companies, as is often the case, were hardest hit due to their inherent lack of liquidity. As a result, the share prices of smaller quoted companies have been under considerable pressure. Since the start of October 2007, the FTSE AIM Index has fallen by over 13%.
Against this backdrop, the Company struggled to make progress and performance was particularly impacted in the Ordinary Share Fund and in the Series 2 (S2) Share Fund by a small number of profit warnings. In the Ordinary Share Fund four investee companies disappointed, with their share price falls collectively accounting for over 40% of the total decline recorded in the period. The S2 Share Fund had relatively large weightings in two of these companies and performance was similarly impacted as a result.
The Net Asset Value (NAV) of the Ordinary Share Fund fell from 89.6p to 71.7p. No dividends were paid or declared during the period under review.
The NAV of the S2 Share Fund fell from 113.8p to 89.5p. A dividend of 5.0p per share was paid to holders of S2 shares during the period.
The NAV of the S3 Share Fund fell from 92.3p to 85.6p. No dividends were paid or declared during the period under review.
Material Transactions
During the period under review, the Ordinary Share Fund made two new qualifying investments into Snacktime and Tracsis at a total cost of ‚£480,000. The Fund's investment in Glisten was reduced, whilst the remaining holding in AssetCo was sold. Tellings Golden Miller was the subject of a successful takeover approach. In total, ‚£984,000 was raised from disposals. Over the four month period, the Fund bought back 219,370 shares at an average price of 70.3p per share.
The S2 Share Fund made three new qualifying investments into Melorio, Snacktime and Tracsis at a total cost of ‚£768,000. Holdings in Abcam and Zetar were reduced. In the non-qualifying portfolio the Fund's entire holding in the Unicorn Free Spirit Fund was sold, whilst positions in the Unicorn Mastertrust Fund and the Unicorn UK Smaller Companies Fund were reduced. In total, ‚£1.44 million was raised from disposals. Over the four month period, the Fund bought back 199,827 shares at an average price of 86.5p per share.
The S3 Share Fund made four new qualifying investments into Animalcare Group, Melorio, Snacktime and Tracsis at a total cost of ‚£723,000.
Top 10 Equity Holdings at 31 January 2008
Ordinary Fund Percentage of Fund Glisten 12.5% Unicorn Free Spirit Fund 9.6% Maxima Holdings 6.2% Mears Group 5.5% Zetar 4.8% Supporta 4.5% Mattioli Woods 4.5% Abcam 4.3% Xpertise Group 3.5% Prologic 2.9% S2 Fund Percentage of Fund Unicorn Mastertrust Fund 12.3% Unicorn UK Smaller Companies Fund 11.0% Mattioli Woods 7.5% Zetar 7.2% Maxima Holdings 6.3% Cohort 5.2% Abcam 5.1% Driver Group 3.2% Amber Taverns 3.8% Melorio 2.9% S3 Fund Percentage of Fund Unicorn Outstanding British Companies 10.3% Fund Unicorn Mastertrust Fund 9.6% Unicorn Free Spirit Fund 9.6% Unicorn UK Smaller Companies Fund 9.1% Unicorn UK Income Fund 8.7% Animalcare Group 4.8% Snacktime 4.5% Melorio 4.6% Tracsis 3.5% Material Events
Other than described above, there were no material events during the period from 1 October 2007 to 31 January 2008.
UNICORN AIM VCT PLC