Final Results -2-

running of the business and hope the Company will trade its way back to budget 
in the coming years. This decrease in fair value amounts to a reduction in value 
of  GBP24,000, against a total cost of  GBP509,000, with the remainder of our funds 
being invested in debt that ranks ahead of all other investors on exit. This is 
an example of how the structure of the investments made in this VCT are heavily 
sheltered from the downside risk of investing into small companies. 
 
The majority of investments are loan based on which a steady flow of interest is 
received into the Company. This is now nearing the level whereby interest 
receipts offset the running costs of the Company. This income versus expenditure 
parity will allow for any profits on realisations and loan note redemption 
premiums to be paid out directly to shareholders, or recognised as an uplift to 
the value of your investment. 
 
Portfolio Review 
 
We have been successful during the year in deploying the funds held by Vulcan 
Services II into Bluebell Telecom, and have also made a small, non-qualifying 
investment into Carebase (Col). We believe both investments follow the 
investment mandate of this VCT; Bluebell has strong recurring cash flows and a 
good management team and Carebase (Col) is asset backed. 
 
Further to this, post year end, we have used the funds held in GreenCo Services 
to further our investment into CSL DualCom, and the funds of PubCo Services to 
acquire Salus Services, injecting further capital into the company to enable the 
business to build another care home. GreenCo and PubCo were initially intending 
to invest into the environmental sector and the restaurant and bar sector 
respectively. However at the time, no suitable opportunities were found in these 
sectors. We have also invested amounts totalling  GBP266,000 into Evaki Power and 
Kala Power, companies involved in the construction of solar power units. 
 
Investments made post year end into CSL DualCom and PubCo Services have been 
into businesses that we have already invested into, and therefore, we know well 
and are confident of their continued success.  In addition to investing more 
funds into CSL DualCom, we have significantly increased the return on our 
investment. We believe we have done so without taking significantly more risk. 
 
Outlook 
 
We remain cautious about the year ahead and continue to be on the lookout for 
potential difficulties in the portfolio to enable ourselves to be prepared and 
plan appropriately. However in general we are confident that the investee 
companies are well positioned to weather the uncertain times ahead and we remain 
optimistic that your Company's NAV will be able to make progress, despite the 
economic environment in which we find ourselves. 
 
 
If you have any questions on any aspect of your investment, please call one of 
the team on 0800 316 2347. 
 
Stuart Nicol 
Investment Director 
Octopus Investments 
16 May 2011 
 
Investment Portfolio 
                                            Movement 
                                    Cost of  in fair    Fair               % 
                                 investment value to   value          equity       % 
Unquoted                             at 31       31   at 31             held  equity 
qualifying                          January  January January Movement     by managed 
fixed asset                           2011     2011    2011   in year Apollo      by 
investments   Sector                ( GBP'000)  ( GBP'000) ( GBP'000)  ( GBP'000)      1 Octopus 
=----------------------------------------------------------------------------------- 
 
Clifford 
Thames Group 
Limited       Automotive                965      152   1,117      152   1.4%    7.4% 
 
Diagnos 
Limited*      Automotive                825        -     825        -   0.0%    0.0% 
 
Pubco 
Services 
Limited       Restaurants & bars        750        -     750        -  11.4%   56.9% 
 
CSL DualCom 
Limited*      Security devices          700       16     716       16   0.0%    0.0% 
 
Salus 
Services 1 
Limited       Care homes                615        -     615        -  15.7%  100.0% 
 
Tristar 
Worldwide 
Limited       Chauffeur services        500        -     500        -   1.3%   35.0% 
 
Greenco 
Services 
Limited       Environmental             500        -     500        -   8.2%   57.4% 
 
Bruce Dunlop 
& Associates 
International 
Limited       Media                     509     (24)     485     (24)   1.7%   30.0% 
 
Bluebell 
Telecom 
Services 
Limited       Telecommunications        225       25     250       25   0.5%    6.5% 
 
Hydrobolt 
Limited       Manufacturing             197       26     223       26   0.9%   43.3% 
 
Businessco 2 
Services 
Limited       Business services         200        -     200        -   5.0%   49.0% 
 
Ticketing 
Services 1 
Limited       Ticketing                 200        -     200        -  25.3%  100.0% 
 
Ticketing 
Services 2 
Limited       Ticketing                 200        -     200        -  25.3%  100.0% 
 
 
=----------------------------------------------------------------------------------- 
Total qualifying fixed asset 
investments                           6,386      195   6,581      195 
 
Non- 
qualifying 
investments                             110        -     110        - 
 
Total fixed 
asset 
investments                           6,496      195   6,691      195 
 
 
=----------------------------------------------------------------------------------- 
Money market 
funds                                                   1124 
 
Cash at bank                                             153 
 
 
=----------------------------------------------------------------------------------- 
Total 
investments                                            7,968 
 
Debtors less 
creditors                                                 52 
 
 
=----------------------------------------------------------------------------------- 
Total net 
assets                                                 8,020 
 
 
*Debt based investment 
 
 
Valuation Methodology 
 
 
The investments held by the Company are all unquoted and as such there is no 
trading platform from which prices can be easily obtained. As a result, the 
methodology used in fair valuing the investments is initially the transaction 
price of the recent investment round. Subsequent adjustment to the fair value 
has then been made according to any significant under or over performance of the 
business. 
 
If you would like to find out more regarding the International Private Equity 
and Venture Capital (IPEVC) valuation guidelines, please visit their website at: 
www.privateequityvaluation.com. 
 
 
Investments are valued in accordance with the accounting policy set out on page 
x, which takes account of current industry guidelines for the valuation of 
venture capital portfolios and is compliant with IPEVC valuation Guidelines and 
current financial reporting standards. 
 
Investment Portfolio - Ten Largest Qualifying Portfolio Holdings 
 
Clifford Thames Group Limited 
Clifford Thames is a market leading provider of consultancy and business 
outsourcing services for the automotive industry, and is a key partner of most 
of the world's leading car manufacturers.  With offices in eight countries 
Clifford Thames has a well-established and impressive client list including 
Ford, GM Europe, Jaguar Land Rover, Mazda and Fiat. Further information can be 
found at the company's websitewww.clifford-thames.com. 
 
+-------------------+---+----------+---+------------+ 
| Asset class       |   |     Cost |   |  Valuation | 
+-------------------+---+----------+---+------------+ 
| A Ordinary shares |   |  GBP222,000 |   |    GBP222,000 | 
+-------------------+---+----------+---+------------+ 
| Loan stock        |   |  GBP743,000 |   |    GBP895,000 | 
+-------------------+---+----------+---+------------+ 
| Total             |   |  GBP965,000 |   |  GBP1,117,000 | 
+-------------------+---+----------+---+------------+ 
 
Investment date:                                                  January 2009 
Equity held:                                                           1.4% 
Last audited accounts:                                       31 March 2010 
Revenues:                                                         GBP31.6 million 
Profit before interest & tax:                                  GBP2.7 million 
Net assets:                                                             GBP10.1 
million 
Income receivable recognised in year:               GBP67,000 
Valuation basis:                                                    Earnings 
multiple 
 
Diagnos Limited 
Diagnos develops and sells sophisticated automotive diagnostic software and 
hardware that enables independent mechanics, dealerships and garages to service 
and repair vehicles. Mechanics require a diagnostic tool to communicate with the 
in-car computer in order to measure, monitor and, where necessary, fix the 
electronic process or system. Further information can be found at the company's 
websitewww.autologic-diagnos.co.uk. 
 
+-------------------+---+----------+---+-----------+ 
| Asset class       |   |     Cost |   | Valuation | 
+-------------------+---+----------+---+-----------+ 
| B Ordinary shares |   |   GBP41,000 |   |    GBP41,000 | 
+-------------------+---+----------+---+-----------+ 
| C Ordinary shares |   |   GBP41,000 |   |    GBP41,000 | 
+-------------------+---+----------+---+-----------+ 
| Loan stock        |   |  GBP743,000 |   |   GBP743,000 | 
+-------------------+---+----------+---+-----------+ 
| Total             |   |  GBP825,000 |   |   GBP825,000 | 
+-------------------+---+----------+---+-----------+ 
 
Investment date:                                                  February 2009 
Equity held:                                                           0.0% 
Last audited accounts:                                       31 December 2009