Interim Management Statement

UNICORN AIM VCT PLC - Interim Management Statement

PR Newswire

London, February 7

Unicorn AIM VCT plc

Interim Management Statement

For the period from 1 October 2012 to 31 January 2013

Introduction

The Company has prepared this Interim Management Statement (IMS) in accordancewith the Disclosure and Transparency Rules of the UK Listing Authority. The IMScovers the four month period ended 31 January 2013, together with relevantinformation up to the date of publication.

Investment Objective

The objective of the Company is to provide Shareholders with an attractivereturn from a diversified portfolio of investments, predominantly in the sharesof AIM quoted companies, by maximising the stream of dividend distributions toShareholders from the income and capital gains generated by the portfolio.

It is also the objective that the Company should continue to qualify as aVenture Capital Trust, so that Shareholders benefit from the taxationadvantages that this brings. To achieve this at least 70% of the Company'stotal assets are to be invested in qualifying investments of which 30% by valuemust be in ordinary shares carrying no preferential rights to dividends orreturn of capital and no rights to redemption.

Performance

The Company's new financial year has started positively with the portfoliogenerating a total return of 8.5% in the four month period ended 31 January2013.

As at 31 January 2013, the unaudited Net Asset Value (NAV) was 111.0 pence pershare, compared to an audited NAV of 102.3 pence per share for the financialyear ended 30 September 2012.

Equity markets were also buoyant in the period under review with the FTSEAll-Share Index generating a total return of 10.4%. The FTSE AIM All-ShareIndex underperformed the main equity indices, recording a total return of 4.1%.

Within the qualifying portfolio, there were a number of notable performancesfrom investee companies including; Access Intelligence (+25%), Anpario (+17%),Cohort (+17%), Dillistone (+38%), EG Solutions (+57%), IDOX (+50%), MattioliWoods (+24%), Sanderson (+26%) andTracsis (+18%). In addition, a meaningfulcontribution to performance was made by Zetar (+31%), which was acquired by aGerman confectionery manufacturer in the period.

Although there were no unexpected profit warnings during the four months underreview, share price weakness continued in a small number of our holdingsincluding; Augean (-17%), Green Compliance (-67%), Instem (-27%) and SnackTime(-53%).

Material Transactions

There were several material transactions during the period under review.

Green Compliance the provider of fire prevention, water hygiene and pestcontrol services has continued to suffer from challenging market conditions. Asa result, the business has not delivered anticipated profit growth. In order toprovide necessary working capital, a £2m equity fundraising was undertaken, towhich the Company contributed a further £200,000. Bob Holt, the Chairman ofGreen Compliance has been appointed as the new Chief Executive with a remit toimplement a recovery strategy.

Hangar 8, one of Europe's largest operators of privately owned passenger jetaircraft, acquired a competitor during the period. In order to fund theacquisition, Hangar 8 raised £4.2m before expenses through an institutionalplacing. The Company participated in this placing committing a further £500,000to acquire additional VCT qualifying shares.

Maxima Holdings, an established but struggling provider of IT business systemsand managed services to the small and medium sized business was acquired by Redstone in the period under review. Redstone is also an AIM quoted, IT managedservices business. It is anticipated that the enlarged Group will become afocused managed services business with a diversified customer base across anumber of industry sectors. As a combined entity Redstone and Maxima will beable to explore opportunities to cross sell complementary services therebyimproving profit margins through increased operational leverage. The Companyreceived equity in Redstone as a result of the acquisition of Maxima.

Tangent, is a digital marketing and printing specialist with a blue chipcorporate client base, a rapidly expanding online print division and a growingreputation for service excellence. In October 2012, Tangent announced theacquisition of an international online printing services company, Goodprint fora net consideration of approximately £6.8m. The acquisition of Goodprint allowsTangent to access an additional 120,000 customers, and achieves internationalpresence in 17 countries, including Germany, France, and the Netherlands.Goodprint delivered underlying operating profit of £1.2m for the year ended 30September 2012. The acquisition was funded by way of a £10 million placing, inwhich the Company subscribed for a further 8 million VCT qualifying shares at aprice of 10 pence per share.

Zetar, a leading UK manufacturer of confectionery and natural snacks, announcedin October 2012 that they had agreed the terms of a recommended cash offer froma privately owned German food manufacturing group. On completion of thistransaction, the Company received cash proceeds of £1.1m for its equity stakein Zetar, crystallising a capital gain on disposal of £373,000.

Non-qualifying holdings in Air Partner, ATH Resources, Charles TaylorConsulting, Communisis, London Capital Group, Park Group, Phoenix IT Group, Parseq, Sigma Capital Group, Stadium Group, Staffline Group and Tricorn Groupwere all disposed of in full during the period under review. Partial disposalswere also made in Huntsworth, Mears Group, Scapa Group and Unicorn UK SmallerCompanies Fund.

The total realised from all disposals in the period amounted to £4.55m, whilsttotal purchases amounted to almost £2m.

Top 10 Equity Holdings at 31 January 2013

Unicorn UK Smaller Companies Fund 7.5%

There were no material events during the period from 1 October 2012 to 31January 2013.

Contact details for general enquiries:

Chris Hutchinson of Unicorn Asset Management Limited (the Investment Manager),on 020 7253 0889 or by email on [email protected].

Robert Brittain of Mobeus Equity Partners LLP (the Company Secretary), on 0207024 7600 or by e-mail on [email protected]