Interim Management Statement

 

Interim Management Statement

For the period from 1 February 2008 to 30 April 2008

 

In accordance with Rule 4.3 of the UK Listing Authority's Disclosure and Transparency rules, Octopus Protected VCT plc presents an Interim Management Statement for the period 1 February 2008 to 30 April 2008.  The statement also includes relevant financial information between the end of the period and the date of this statement.

 

 

                                   

The unaudited net asset value ("NAV") per share on 30 April 2008 was 95.4p.  This is up from the initial NAV of 94.5p.  The investment manager has taken an active approach to managing the cash resources raised through the Offer prior to its investment in VCT Qualifying Companies. The funds raised have been invested in a range of money market securities.

The investments made last year into British Country Inns plc, Funeral Services Partnership Limited, Bruce Dunlop & Associates Limited and Tristar Worldwide Limited are all held at cost and are performing in-line with expectations at this stage.

 

Since the year end, the Fund has made one investment of £606,000 in the management buy-out of Hydrobolt Limited as part of a £3.7m investment from other Funds managed by the Investment Manager. Hydrobolt is a specialist manufacturer of high integrity fasteners for the oil & gas and energy sectors, and is well positioned for the expected continued growth in this area. The investment has been structured so that the Fund's investment is lower risk than that of the other equity investors.

                                   

The total value of the investment portfolio at 30 April 2008 was £26.0 million with over £3.7 million invested in VCT Qualifying Companies.  Currently, £22.3 million is invested in a range of money market securities awaiting investment in suitable VCT Qualifying Companies.

 

 

* including cash and money market securities

 

As stated in the Annual Report for the year ended 31 January 2008, the Board has proposed a final dividend of 1.5p per share to be payable to shareholders on 25 June 2008 who are on the register on 30 May 2008. This payment is subject to shareholder approval at the AGM on 10 June 2008. The Fund will be managed to maximise the level of tax-free dividends payable to shareholders in each of the first five years. This income will be generated by employing a low risk but active approach to managing the funds raised prior to investment into VCT Qualifying Companies.

 

The decline in share price is not indicative of the good performance of the Fund to date.  The share price is generally driven by supply and demand fundamentals of shares in the secondary market.  Due to the low level of activity, and one or two investors wishing to sell their shares at this early stage, the share price has declined a little to reflect this.

 

The Fund's Board is not aware of any significant event or transaction which has occurred between the 1 May 2008 and the date of publication of this statement which would have a material impact on the financial position on the Fund, and has not been detailed above.

 

For further information please contact:

Octopus Investments Limited - 020 7710 2800