Interim Management Statement

 
TIDMOSA 
 
Octopus Second AIM VCT plc 
Interim Management Statement 
 
19 July 2010 
 
In accordance with Rule 4.3 of the UK Listing Authority's Disclosure and 
Transparency rules, Octopus Second AIM VCT plc ("Company" or "Fund") presents an 
Interim Management Statement for the period 1 March 2010 to 30 June 2010.  The 
statement also includes relevant financial information between the end of the 
period and the date of this statement. 
 
Financial Summary 
                                                           As at 28 February 
Ordinary shares                    As at 30 June 2010                   2010 
 
 
 
 
 
Net assets (000s)                              GBP12,969                 GBP13,066 
 
Net profit/(loss) before tax 
(000s)                                           GBP(59)                  GBP2,404 
 
Net asset value per share 
("NAV")                                         30.6p                  30.7p 
 
Dividends paid in the period                        -                      - 
 
 
Investment Performance 
 
The Company's unaudited Net Asset Value as at 30 June 2010 was 30.6p a share. 
You can see from the above table that the NAV was virtually unchanged over the 
period, which compares with a decline in the AIM All-share Index of 1% and of 
the Smaller Companies excluding investment trust Index of 5.6%.  The period has 
been generally frustrating for the Fund as the initial enthusiasm for smaller 
company shares at the beginning of 2010 has waned as investors have concentrated 
on macro-concerns such as sovereign debt and its threat to the survival of the 
Euro as well as the threat of government spending cuts to the growth of the UK 
economy.  This has meant that many smaller company shares have languished 
despite reporting buoyant trading and analysts upgrading forecasts.  The notable 
exceptions have been rises in share prices as a result of takeover activity, and 
the Fund has benefited from bids for Melorio, Innovision and Win as well as an 
approach for Optare.  The quantum of corporate activity that is emerging is a 
good indicator of the value that is now being seen in smaller companies and that 
there is more confidence that profits have now passed the worst point in the 
cycle. 
 
Investment Activity 
 
Fundraising activity was subdued ahead of the general election, but has revived 
since.  With banks still unwilling to lend, we are expecting deal flow to pick 
up after the summer.  The Company has made only one follow-on investment of 
 GBP30,000 in Strategic Thought as well as a new investment on 2 July of  GBP375,000 
in EKF Diagnostics Goup. 
 
There were more sales than purchases in the period with the bid for Melorio 
resulting in the disposal of the entire holding at a profit of  GBP447,000. 
Clerkenwell was wound up and cash returned to shareholders, and profits were 
taken in Mears. 
 
Change of accounting reference date 
The Company has moved its accounting reference date from 28 February to 30 
April. 
 
Merger 
Documents have been sent out to shareholders detailing the Board's intention to 
merge the Company with Octopus IHT AIM VCT plc pursuant to a scheme of 
reconstruction under s.110 of the Insolvency Act 1986. The General Meetings to 
approve this will take place at 8 Angel Court, London, EC2R 7HP at 2.30 p.m. on 
4 August 2010 and 12.00 p.m. on 12 August 2010. 
 
Qualifying Investment Portfolio - Ten Largest Holdings by Value as at 30 June 
2010 
                                                  Carrying value 
Company              Sector                                 GBP'000 % of net assets 
=------------------------------------------------------------------------------- 
Advanced Computer    Software & computer 
Software plc         services                                749            5.8% 
 
Animalcare Group plc Pharmaceuticals                         621            4.8% 
 
IS Pharma plc        Pharmaceuticals                         571            4.4% 
 
Brooks MacDonald 
Group plc            Wealth management                       550            4.2% 
 
Brulines (Holdings) 
plc                  Security                                464            3.6% 
 
                     Software & computer 
Craneware plc        services                                415            3.2% 
 
Innovision Research 
& Technology plc     Information technology                  401            3.1% 
 
Managed Support 
Services plc         Maintenance contractor                  369            2.8% 
 
Clarity Commerce     Software & computer 
Solutions plc        services                                361            2.8% 
 
Praesepe plc         Leisure                                 358            2.8% 
 
 
Buybacks 
During the period to 30 June 2010, the Company has purchased 160,462 Ordinary 
Shares to be held in Treasury at a weighted average price of 27.9p. 
 
Total Voting Rights 
The Company's capital as at 30 June 2010 consisted of 46,101,840 Ordinary shares 
with a nominal value of 5p each, with voting rights.  The Company holds 
3,666,535 Ordinary Shares in Treasury. Therefore, the total number of voting 
rights in Octopus Second AIM VCT plc is 42,435,305. 
 
Material events and transactions 
The Board is not aware of any other significant event or transaction which has 
occurred between 1 March 2010 and the date of publication of this statement 
which would have a material impact on the financial position of the Company and 
further do not regard any of the above events or transactions as being a 
significant change from 9 July (the date on which the merger documentation was 
issued) to the date of publication of this statement. 
 
For further information please contact: 
Andrew Buchannan and Kate Tidbury - Fund Managers 
Octopus Investments Limited - 0800 316 2347 
 
ENDS 
 
 
 
[HUG#1432410] 
 
 
 
 
 
 
 
 
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Source: Octopus Second AIM VCT PLC via Thomson Reuters ONE