AGCV Arc Growth

RNS Number:0852M
Arc Growth Company VCT plc
18 January 2008


FOR IMMEDIATE RELEASE                                         18 January 2007


                           Arc Growth Company VCT plc


Arc Growth Company VCT plc ('the Company') is pleased to present the interim
management statement for the period from 1st September 2007 to 16th January 2008
as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.


Following the closing of the Initial Offer in June 2005 at �1.134m, the Company
had an NAV of 94.5p per share after payment of the initial expenses. At 28
February 2006, this increased to 94.63 per share.


In the first full year of operations ended on 28 February 2007, the number of
investments had increased from two to seven, with one fully realised and the
partial sale of another. During that year, a further �634,000 had been raised in
two offers, increasing the issued share capital and share premium of the Company
to �1.669m.


During the same year, NAV rose to 123.51p per share, a full 29p above its
initial position in June 2005. This performance was achieved via realised gains
of �119,000 and unrealised appreciation in investment values of �387,000.
Shareholders' funds stood at �2.183m against net funds raised of �1.669m. This
performance resulted in the Company being ranked first out of 21 qualifying
generalist VCT's raised in 2004/05 (Source : Alllenbridge).


A maiden dividend of 7p per share has been declared, the capital element of
which will be paid once court sanction for the cancellation of the Share Premium
Account has been received.


During the first half of the current year ended on 31 August 2007, NAV rose
further to 137.5p per share. The number of investments rose to eleven, with a
partial realisation of one, Vicorp, and the sale of the remainder of the holding
in Traction. The latter was a significant achievement with almost �500,000
profit being obtained from the holding. Shareholders' funds for the Company rose
to �2.43m.


During the period under review, efforts have been concentrated upon finding
further suitable VCT-qualifying investments and completing a Prospectus for the
raising of further monies to invest.


On 22 November 2007, the Company issued a Prospectus to raise up to an
additional �7.5m by the issue of up to 7,500,000 C Shares of 50 pence each at a
price of �1 per share. Applications are being received and a first allotment is
expected in the near future.


During the quarter ended 30th November 2007, only one further investment was
made, a follow-on investment in M2FX plc of �57,000. Since that date, a further
three investments have been made of �150,000 each in Dateline Holdings plc, an
on-line and off-line dating agency, Snacktime plc, a vending machine operator
which has just listed on AIM and Laser Broadcasting Limited, a media group
incorporating local radio stations and publishing. Full details of each
investment will be given in the Annual Report and Accounts for the year ending
29th February 2008 which will be published later in the year.







These investments have increased the level of VCT-qualifying investments of the
Company to 63%. The directors are confident that the Company will exceed the 70%
target for such investments by the end of the current financial year to ensure
that it meets VCT Regulations as at that date and in the future. .


The Company publishes its NAV at the end of each financial quarter. It has also
adopted the prudent policy of taking a 25% provision against the value of AIM
-listed stocks where there is illiquidity in its shares. The decline in world
stock markets and in particular AIM has had an impact on the values of listed
companies. As a consequence, there has been a slight decline in the Company's
NAV as at 30 November 2007 to 131.5p per share.


In accordance with the VCT Regulations, the operating costs of the Company are
fixed at a maximum of 3.6% of NAV. In all three periods this resulted in a
clawback being paid by the Investment Manager. However, the improvement of NAV
is now such that a small payment is expected to be made to the Investment
Manager for the current year.


For further information and to view this regulatory announcement, please view
the Investment Manageer's website, www.arcfundmanagement.com, or contact :


Graham Urquhart, Director and Company Secretary - 0203 216 2000 or


Roland Cornish/Felicity Geidt, Beaumont Cornish Limited - 0207 628 3396



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

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