Interim Management Statement

    RNS Number : 1414Z
  Close Second AIM VCT PLC
  15 July 2008
   




    Close Second AIM VCT PLC Interim Management Statement 

    Introduction
    I am pleased to present your Company's interim management statement for the period 1 March 2008 to 15 July 2008 as required by the UK
Listing Authority's Disclosure and Transparency Rule 4.3.

    Performance
    The market, as I am sure you are well aware, has been volatile, wary of growth prospects for small companies and the economy in general
and consequently share prices have experienced selling pressure and lack of interest from buyers.

    The prevailing economic conditions and the increasing dominance of fear amongst investors have seen the FTSE AIM index fall in the
period by 8.5%. This compares with the FTSE Small Cap Index (excluding Investments Trusts) which fell by 19%. Resource and oil exploration
companies, which usually do not qualify for VCT investment, have played a part in reducing the fall of the AIM Index, but both indicate the
way in which investor sentiment has changed this year.

    In the period the Net Asset Value (NAV) of your Company has fallen from 40.18 pence as at 29 February 2008 to 34.43 pence per share as
at 9 July 2008, a fall of 14.3% for the Ordinary shares.  The NAV for the C&D shares has also fallen from 89.25 pence as at 29 February 2008
to 80.54 pence per share as at 9 July 2008, a fall of 9.8 %. In the period a dividend of 1.00 pence per share was declared for all classes
of shares, which if added back would have resulted in a fall of 11.8% and 8.6% for the Ordinary and C&D shares respectively.

    Portfolio
    
In the period from 1 March 2008 to 15 July 2008, the C&D share portfolio has made three new qualifying investments in Darwen Holdings PLC,
IS Pharma PLC and Essentially Group PPLC for a total cost of £2.2m.

    
During the same period, the Ordinary share portfolio took some profits in Freedom4 Communications PLC and Imprint PLC was taken over for
cash.

    The C&D portfolio disposed of some of its holding in Close Special Situations Fund and Hatpin plc unfortunately went into liquidation in
May 2008.  

    The Ordinary share portfolio is over 80% invested in qualifying investments for HM Revenue & Customs purposes. This is in excess of the
minimum 70% level required by HMRC regulations. The C&D share portfolio is just under 60% invested for HM Revenue & Customs purposes. The
Combined portfolios are 63% invested and have until February 2009 to reach the 70% minimum level as required by HM Revenue regulations.







    Top Ten Holdings for the Ordinary share portfolio (as at 9 July 2008)
 Holding                          Carrying Value £'000s
 Brooks Macdonald PLC             171
 Research Now PLC                 165
 Mears Group PLC                  141
 Concateno PLC                    118
 Bond International Software PLC  116
 Atlantic Global PLC              113
 Mattioli Woods PLC               105
 Cello Group PLC                  101
 Clerkenwell Ventures PLC         93
 Zetar PLC                        92
    All of the top ten holdings are quoted and valued at bid prices as at 9 July 2008.

    Top Ten Holdings for the C&D share portfolio (as at 9 July 2008)
 Holding                        Carrying Value £'000s
 Close Special Situations Fund  770
 Darwen Holdings PLC            750
 Neuropharm Group PLC           663
 IS Pharma PLC                  609
 Research Now PLC               590
 Pressure Technology PLC        583
 Essentially Group PLC          533
 Animal Care Group PLC          467
 Mount Engineering PLC          412
 Melorio PLC                    407
    All of the top ten holdings are quoted and valued at bid prices as at 9 July 2008.


    Material Events and Transactions

    Dividends
    As mentioned above, a dividend of 1.00 pence per share was declared for all classes of shares.  The Ordinary share dividend was paid on
8 August 2008 to shareholders on the register on 11 July 2008. The C&D share dividend will be paid on 25 July 2008 to shareholders on the
register on 27 June 2008.


    Share buy backs
    In the period from 1 March 2008 to 15 July 2008, your Company purchased 231,563 Ordinary shares into Treasury, at an average price of 34
pence per share. 75,000 'C' shares were also purchased into Treasury at an average price of 74 pence per share. 

    All the Ordinary share buybacks were transacted through Winterflood Securities Limited. Winterflood Securities Limited is a subsidiary
of Close Brothers Group plc, which is also the ultimate parent company of Close Investments Limited, the Investment Manager.

    Conclusion

    Your Company will continue to remain invested so as to maintain its venture capital trust status and your Investment Manager believes
that they can continue to make sound investments at attractive valuations like Darwen Holdings PLC in June 2008.

    There have been no further significant events or transactions that the Board are aware of which would have a material impact on the
financial position of the Company between 1 March 2008 and 15 July 2008.

    Information regarding historic and current financial performance and other useful shareholder information can be found on the Fund's
website: www.closeventures.co.uk by clicking the 'Our Funds' section and then 'Close Second AIM VCT PLC'. 


    15 July 2008
    For further information please contact Andrew Buchanan/Kate Tidbury of Close Investments Limited
    Tel: [phone]

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IMSGUUGAMUPRGAA