Interims

    Interims
             



Apollo VCT 2 plc

Six months ended 31 July 2007

Financial Highlights


                                Six months to 31 Period to 31 January
                                       July 2007                 2007

Net assets                            £8,355,000           £2,889,000
Net revenue/(loss) after
tax                                      £43,000            £(24,000)
Revenue/(loss) per share                    0.6p               (4.2)p
Total return/(loss) per
share                                       0.3p               (5.9)p
Net asset value per share                  94.4p                93.4p


Apollo VCT 2  plc ("Company" or  "Fund") is a  venture capital  trust
("VCT") which aims to  provide shareholders with attractive  tax-free
dividends and  long-term  capital  growth, through  investment  in  a
diversified portfolio of UK smaller companies, mostly in the form  of
mezzanine debt.

The Investment Manager is Octopus Investments Limited ("Octopus").
The Company was launched in May 2006 and, together with Apollo VCT 1
plc, raised £17.6 million in aggregate (£16.8 million net of
expenses) through an offer ("the Offer") for subscription by the time
it closed on 5 April 2007.

Chairman's Statement

I am pleased to  be presenting to you  the interim results of  Apollo
VCT 2 plc for the six-month period to 31 July 2007.

Background
The Fund opened in May 2006 and had raised over £8.8 million by the
time it closed on 5 April 2007. When combined with Apollo VCT 1, over
£17.6 million was raised in the offer period, making it one of the
largest VCTs launched in the 2006/2007 tax year.

Net Asset Value ('NAV')
The NAV per  share at  31 July  was 94.4p,  virtually unchanged  when
compared to the initial NAV of  94.5p. Since the close of the  Offer,
the net proceeds have been actively managed by our cash managers  and
are now generating income in excess of the running costs of the Fund.

Investment portfolio
During much  of the  period under  review, the  Fund was  engaged  in
seeking investors rather than  looking to make investments.  However,
Octopus has  taken an  active approach  to managing  the cash  raised
through the Offer prior to  its investment in q1ualifying  companies.
The funds raised have been invested by Goldman Sachs International in
a range of cash and cash equivalent assets.

Investment process
The majority of companies in which the Fund will invest will  operate
in sectors where there is  a high degree of predictability.  Ideally,
these companies will have contractual revenues from financially sound
customers and will provide the  opportunity for an exit within  three
to five years.

Before investing  in a  company, the  fund managers  at Octopus  will
conduct their own fundamental analysis. This will include a  thorough
review and analysis  of the  company's business  plan, meetings  with
management  teams,  and  a  detailed  evaluation  of  the   company's
financial projections  including  scenario analysis  (i.e.  different
sales growth rates, margins and overheads).  This analysis will focus
on the level of revenue visibility within the business and the extent
to which this revenue is contractually agreed.

Share Price and Buy-Back Facility
The Fund has a share  buy-back facility, proposing where possible  to
buy-back shares, if required, at no  more than a 10% discount to  the
prevailing NAV. This  should assist the  marketability of the  shares
and help prevent the shares from  trading at a wide discount to  NAV.
The Fund's mid market share price currently stands at 95p.

Shareholders should note that if  they sell their shares within  five
years of the  original purchase  they forfeit any  income tax  relief
obtained. If you need to sell your shares, please contact Octopus  on
020 7710 2800.

VCT Qualifying Status
The Fund must be 70% invested  in qualifying companies by 31  January
2010, and maintain this  level on a day  by day basis thereafter,  in
order to comply with VCT regulations. The Directors will monitor  the
Fund's progress  towards  meeting  and  maintaining  HM  Revenue  and
Customs'   conditions   for   VCT   approval   and   have    retained
PricewaterhouseCoopers  LLP,  one  of  the  UK's  leading  firms   of
accountants, to advise in this area.

Outlook
Since the fundraising period came to an end, the investment team have
met with the management teams of a number of companies which may lead
to suitable investment opportunities. We, and the Investment Manager,
will update you in  due course with regard  to investments that  have
been completed.

We are confident that we will be able to build a portfolio which will
be well positioned to deliver attractive returns to shareholders in
the medium-term.

Investment Manager's Review

We are delighted that  the Fund raised over  £8.8 million (and  £17.6
million when the  funds raised by  its twin fund,  Apollo VCT 1,  are
taken into account), by the time  the fundraising period closed on  5
April 2007. As is usual for a  VCT in a fundraising period and  early
stages, the Fund has yet to make its first investment.

Review of Investments
Although no qualifying investments were  held at the period end,  the
Fund has taken an active approach to managing the cash raised through
the Offer prior to its investment in qualifying companies.  The funds
raised have been invested by  Goldman Sachs International in a  range
of cash and cash equivalent assets.

Personal Service
At Octopus, we pride  ourselves not only on  our team's track  record
but also on our  personalised customer service.   We believe in  open
communication and  our  regular  updates are  designed  to  keep  you
involved and informed.

Octopus, founded in  2000, is one  of the UK's  fastest growing  fund
management  companies.   The  company   is  committed   to   bringing
innovative, high-return  products to  the broadest  possible  market.
Octopus currently manages more  than £370 million  on behalf of  more
than 11,000 investors.  Octopus is one of the largest VCT managers in
the UK and was recently voted 'Best VCT Provider of the Year 2007' in
the Professional Adviser Awards (voted for by financial advisers).

If you have any questions about this  review, or if it would help  to
speak to one of the fund managers, please do not hesitate to  contact
us on 020 7710 2800.


Income Statement
                       Six months to 31 July    Period to 31 January
                               2007                     2007
                       Revenue Capital Total   Revenue Capital  Total
                         £'000   £'000 £'000     £'000   £'000  £'000
Realised gain on
investments                 10            10

Unrealised gain on
investments                  -      35    35

Income                     126       -   126        23       -     23

Investment
management fees           (20)    (59)  (79)       (3)     (9)   (12)
Other expenses            (73)       -  (73)      (44)       -   (44)
Profit/(loss) on
ordinary activities
before taxation             43    (24)    19      (24)     (9)   (33)
Taxation on
profit/loss on
ordinary activities          -       -     -         -       -      -
Profit/(loss) on
ordinary activities
after taxation              43    (24)    19      (24)     (9)   (33)
Return/(loss) per
share                     0.6p          0.3p    (4.2)p  (1.7)p (5.9)p


- - the total column of this statement is the profit and loss account
of the Company
- - all revenue and capital items in the above statement derive from
continuing operations
- - the accompanying notes are an integral part of the financial
statements
- - the Company has only one class of business and derives its income
from investments made in shares and securities and from bank and
money market funds.


+-------------------------------------------------------------------+
| Reconciliation of Movements in Shareholders' Funds                |
|-------------------------------------------------------------------|
|        |       |       |       |   | Six months to | Period to 31 |
|        |       |       |       |   |  31 July 2007 | January 2007 |
|------------------------------------+---------------+--------------|
|                                    |         £'000 |        £'000 |
|------------------------------------+---------------+--------------|
| Shareholders' funds as at start of |               |              |
| period                             |         2,889 |            - |
|------------------------------------+---------------+--------------|
|        |       |       |       |   |               |              |
|--------------------------------+---+---------------+--------------|
| Return on ordinary activities  |   |               |              |
| after tax                      |   |            19 |         (33) |
|--------------------------------+---+---------------+--------------|
| Issue of redeemable non-voting |   |               |              |
| preference shares              |   |             - |           50 |
|--------------------------------+---+---------------+--------------|
| Redemption of redeemable       |   |               |              |
| non-voting preference shares   |   |             - |         (50) |
|--------------------------------+---+---------------+--------------|
| Net proceeds of share issue    |   |         5,447 |        2,922 |
|--------------------------------+---+---------------+--------------|
| Shareholders' funds at end of  |   |               |              |
| period                         |   |         8,355 |        2,889 |
+-------------------------------------------------------------------+



Balance Sheet
                                           As at 31 July     As at 31
                                                    2007 January 2007
                                                   £'000        £'000
Current assets:
Investments - Cash and cash equivalents            8,242        2,814
Debtors                                              128          106
Cash at bank                                           9           15
                                                   8,379        2,935
Creditors: amounts falling due within
one year                                            (24)         (46)
Net current assets                                 8,355        2,889
Total assets less current liabilities              8,355        2,889
Capital and reserves:
Share capital                                        885          309
Share premium                                      7,484        2,613
Capital reserve - realised                          (68)          (9)
                         - unrealised                 35            -
Revenue reserve                                       19         (24)
Shareholders' funds                                8,355        2,889

Net asset value per share                          94.4p        93.4p
Number of shares in issue                      8,854,161    3,092,248



Cash Flow Statement
                                        Six months to 31 Period to 31
                                               July 2007 January 2007
                                                   £'000        £'000
Net cash outflow from operating
activities                                           (1)         (84)
Net cash inflow/(outflow) from
financial investment                                 (1)         (84)

Management of liquid resources:
Increase in money market securities              (5,428)      (2,814)

Financing:
Issue of own shares                                5,734        3,076
Share issue expenses                               (287)        (154)
Capital reserve realised -
Capitalised management fees                         (59)          (9)
Unrealised gains on investments                       35            -
Increase/(decrease) in cash resources                (6)           15



  Reconciliation of net cash flow to movement in cash
funds
                                           Six months to Period to 31
                                            31 July 2007 January 2007
                                                   £'000        £'000
Increase/(decrease) in cash resources              5,422        2,829
Opening net cash funds                             2,829            -

Net cash at 31 July/31 January                     8,251        2,829



Reconciliation of operating profit to cash flow from operating
activities
                                           Six months to Period to 31
                                            31 July 2007 January 2007
                                                   £'000        £'000

Profit/(loss) on ordinary activities                  19
before tax                                                       (33)
Unrealised gains on investment                      (35)            -
Capitalisation of management fees                     59            9
(Increase)/decrease in debtors                      (22)        (106)
Increase/(decrease) in creditors                    (22)           46

Net cash (outflow)/inflow from operating
activities                                           (1)         (84)


Notes to the Interim Financial Statements

1.         Basis of preparation

The unaudited interim results which cover  the six months to 31  July
2007 have  been prepared  in  accordance with  applicable  accounting
standards and adopt the accounting policies set out in the  statutory
accounts of the Company for the year ended 31 January 2007.

2.         Publication of non-statutory accounts

The unaudited interim results for the  six months ended 31 July  2007
do not constitute  statutory accounts within  the meaning of  Section
240 of the  Companies Act  1985 and have  not been  delivered to  the
Registrar of Companies.

3.         Earnings per share

The revenue/(loss) per share is based on revenue/(loss) from ordinary
activities of  £42,956  and on  7,143,563  shares (31  January  2007:
£(24,033) and 567,872 shares), being  the weighted average number  of
shares in issue during the period.

The total earnings/(loss) per share  is based on revenue/(loss)  from
ordinary activities of  £18,936 and on  7,143,563 shares (31  January
2007: £(33,530)  and  567,872  shares), being  the  weighted  average
number of shares in issue during the period.

There are no potentially dilutive  capital instruments in issue  and,
therefore, no diluted return per share figures are relevant.

4.         Net asset value per share

            The calculation of net asset value per share is based  on
the net assets  at 31  July 2007 and  on 8,854,161  shares being  the
number of  shares  in  issue  at the  same  date  (31  January  2007:
3,092,248).

5.            During the six  months ended 31  July 2007 the  Company
issued 5,761,913 ordinary shares at a  price of 100p relating to  the
initial fundraising period.   The Company did not buy back any shares
during the same period.

6.               Copies  of this  statement  are being  sent  to  all
shareholders. Copies are also available from the registered office of
the Company at 8 Angel Court, London, EC2R 7HP.


ENDS

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