NOBLE INCOME & GROWTH VCT plc
INTERIM MANAGEMENT STATEMENT
FOR THE 3 MONTHS TO 31 JANUARY 2008
To the members of Noble Income & Growth VCT plc
This interim management statement has been prepared solely to provide additional
information to the shareholders as a body to meet the relevant requirements of
the UK Listing Authority's Disclosure and Transparency Rules, and should not be
relied on by any other party or for any other purpose.
This interim management statement considers the future of the fund and, as such,
forward-looking assertions have been made by the Directors in good faith based
on the information available to them up to the time of their approval of this
report. This statement should therefore be treated with due caution due to the
inherent uncertainties of the effect of both economic and business risk factors
in considering forward-looking information.
This interim management statement relates to the period from 1 November 2007 to
31 January 2008 and contains information that covers this period and up to the
date of publication of this interim management statement.
Our investment policy
The Company's objective is to provide Shareholders with an attractive return by
maximising the stream of dividend distributions to Shareholders from both income
and capital gains. It is intended to achieve this objective by investing over
time in a portfolio of VCT qualifying companies traded on AIM and PLUS markets,
together with later stage unquoted companies and pre-IPO opportunities. The
broad investment strategy enables the Company to invest in a wide range of
opportunities, thus diversifying portfolio risk. The Company continues to
target companies with high quality management teams, scaleable business models
and clear market opportunities. In line with a cautious approach to investing,
funds are held on deposit or in low-risk fixed interest investments until
qualifying opportunities are found.
The Company seeks to manage the balance of risk and return within its investment
policy by:
1. investing in a diversified portfolio
2. actively managing and realising the investments in the portfolio; and
3. aiming to ensure adequate breadth and depth of the investment management
team
Progress during the period
During the period the Net Asset Value decreased by 12.0% from 86.3p per share at
31 October 2007 to 75.9p per share at 31 January 2008. Over the same period, the
AIM All-share index fell 15.8%.
At 31 January 2008 the portfolio consisted of a total of 54 companies at
different stages of development. This significant increase in the number of
holdings, up from 28 in April 2006 is part of NFM's strategy to reduce the
portfolio's reliance upon less liquid microcap stocks. As part of this process
the average market capitalisation of portfolio companies has also doubled.
These actions have been vindicated because the portfolio performed relatively
well, ahead of all the relevant indices. However, as is usual in a microcap
portfolio, there was extreme volatility within the portfolio itself and large
differentials in individual share prices.
Earthport was the star performer which closed up 30% on the quarter and further
profits were realised. Brady and Croma responded to confident statements about
their respective corporate futures. Fountains rallied despite the disappearance
of a bid and Mount Engineering and DM Group both reported good figures.
During the quarter, the fund has realised its holding in Smallbone at a profit
and crystallised the remaining profit in Vyke. Profits were also taken in Jelf,
Maelor and Nighthawk. Since the period end a new position has been established
in Vyke and some profits realised.
On the downside, there was a profit warning from Expansys which has since fallen
85% as it lost its focus. Zenith Hygiene, Appian and Greatfleet all issued very
downbeat accounts. Their share prices reacted accordingly. Cantono fell due to
the absence of news on its long awaited data centre. Vicorp, the fund's largest
holding by cost, weakened on a deferral of sales into 2008 and announced that it
was trading at breakeven in the second half of 2007 after several loss making
periods.
As at 31 January As at 31 October
2008 2007
("unaudited") ("unaudited")
Total Net Asset Value £3.48 million £3.95 million
Shares in Issue 4,581,852 4,581,852
NAV per Share 75.90p 86.25p
Top ten holdings as at 31 January 2008
Percentage of
the fund's net asset
lue as at
31 January 2008
Vicorp Group Plc 6.0
Jelf Group plc 5.9
Western & Oriental plc 4.7
Earthport Plc 4.1
Sprue Aegis plc 3.9
Croma Group plc 3.6
Northern Bear plc 3.3
Optimisa PLC 3.1
Brady plc 3.1
Fountains Plc 2.4
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40.1
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VCT qualifying status
The Fund continues to receive full Inland Revenue approval and had 76.3% of its
ordinary share capital invested in qualifying companies as at 31 January 2008,
in addition to meeting the other tests necessary for maintaining VCT qualifying
status.
120 Old Broad Street By order of the Board
London
EC2N 1AR A E B Wiegman
Chairman
18 March 2008