RENSBURG AIM VCT PLC

Half-Yearly Financial Report for the six months ended 31 August 2011

Rensburg Aim VCT plc (or "the Company"), the venture capital trust specialising in investing in companies trading on the AIM market of the London Stock Exchange ("AIM"), today announces its Half-Yearly Financial Report for the six months ended 31 August 2011.

Commenting on the results, William M. Cran, Chairman, said:

"The Net Asset Value ("NAV") as at 31 August 2011 was 45.15 pence per share, a decrease of 3.9% over the past six months, before the final dividend of 4.50 pence per share that was paid during the period.

We intend to pay both an ordinary interim dividend of 1.50 pence per share (2010: ordinary interim dividend 1.25 pence per share) and a special dividend of 2.00 pence per share reflecting recent investment realisations. Both of these payments will be payable on 23 December 2011 to shareholders on the register at 2 December 2011.

Including the current proposed ordinary interim and special dividends, the Company will have distributed a total of 48.25 pence per share since it was established.

Your Board believes that with a well balanced portfolio of AIM stocks, blue-chip and fixed interest investments the Company should perform satisfactorily in the second half."

For further information contact:

Interim Management Report

Introduction

The first half of this year proved to be a volatile trading period with the initial four months showing a 4.57% increase in Net Asset Value ("NAV"), followed by an 8.10% decrease in NAV during the final two months before allowing for the final dividend. This reflected tumbling global equity markets, including AIM, as fears resurfaced for the future stability of the eurozone and the banking system.  Whilst our absolute return was negative the relative return when compared to our performance benchmarks was good. Since the start of the second half we have seen continued volatility as politicians and central banks continue to wrestle with finding a solution to the underlying problem of excessive debt, especially in Greece and other European countries, as well as doubts over growth in the UK and elsewhere. 

During the six months to 31 August 2011, the Total Return FTSE 100 Index decreased by 8.0% whilst the Total Return FTSE All-Share Index and Total Return FTSE AIM All-Share Index decreased by 8.0% and 16.7% respectively. However, as I have stated previously, none of these indices are perfect benchmarks for our own performance as so few of the size and type of company in which we can invest are represented in them.

Net Asset Value

The NAV as at 31 August 2011 was 45.15 pence per share, a decrease of 3.9% over the past six months, before the final dividend of 4.50 pence per share that was paid during the period. It is pleasing to note that even despite the recent market turmoil, the NAV per share has increased by 11.1% during the 12 months between 1 September 2010 and 31 August 2011, before allowing for total dividends of 9.00 pence per share that were paid during that period.

Results

The loss on ordinary activities after tax for the six months to 31 August 2011 was £632,000 (31 August 2010: profit of £595,000). The loss was 1.55p pence per share compared with a profit in the six months to 31 August 2010 of 1.46 pence per share. The loss was mainly due to the requirement to recognise unrealised gains and losses in the Income Statement. During times of volatile share price movements, this results in large swings between profits and losses.

Qualifying Investments

The Company made a number of full and partial realisations of qualifying investments during the period, resulting in total proceeds of £1,858,000 and a net profit of £764,000 over historic cost. The company made two qualifying investments being Tracsis plc (£200,000) and also in Sinclair IS Pharma plc (£882,000) which was acquired as a result of the disposal of IS Pharma plc. As we continue to maintain our VCT qualifying status the Board continues to feel that, unless a new issue offers prospects of medium term appreciation, we should conserve our resources and take profits from existing investments. Since the start of the second half of the year we have realised part of our investment in Chime Communications plc.

The qualifying portfolio, which cost £11.3 million, was valued at £10.3 million at 31 August 2011 and represents 56.0% of the net assets of the Company.

An investment portfolio summary is provided in note 10 to this announcement.

Non-qualifying Investments

During the six months to 31 August 2011, £237,000 of non-qualifying investments were acquired and £420,000 of non-qualifying investments were sold, realising a gain over historic cost of £69,000.

The non-qualifying portfolio, which cost £9.0 million, was valued at £9.0 million at 31 August 2011 and represents 49.0% of the net assets of the Company.

Other net liabilities make up 5.0% of the total net assets of the Company at 31 August 2011 and include £108,000 of cash.

Interim and Special Dividends

We intend to pay both an ordinary interim dividend of 1.50 pence per share (2010: ordinary interim dividend 1.25 pence per share) and a special dividend of 2.00 pence per share reflecting recent investment realisations. Both of these payments will be payable on 23 December 2011 to shareholders on the register at 2 December 2011.

Including the current proposed ordinary interim and special dividends, the Company will have distributed a total of 48.25 pence per share since it was established.

VCT Status

The Board continues to be mindful of maintaining the Company's VCT qualifying status. H.M. Revenue and Customs has confirmed that the Company has full approval and the Company continues to meet the relevant conditions to maintain full approval. The net funds raised in any one accounting period are disregarded in assessing whether the Company has satisfied the requirement that at least 70% of its total investments are qualifying investments until the first accounting period that ends three years after the raising of the additional funds. In the Company's case, all funds have now reached this point and your Board, therefore, expects that the Company should maintain its VCT qualifying status in the future.

Share buy-backs

In the Report and Financial Statements 2011 the Board announced the reinstatement of the share buy-back policy. During the period the Company has repurchased 227,500 shares at a cost of £91,000.

It is important to point out that all trades are transacted via the London Stock Exchange through a stockbroker or investment adviser. The Company does not purchase shares directly from shareholders. However, the buy-back policy can only operate within the restrictions of, currently, up to 10% of the share capital annually, as approved by shareholders and is of course subject to the listing rules. The policy will be suspended during all closed periods of the Company, which are usually immediately prior to the half-yearly and final results announcements. During these periods and also if the maximum number of shares which can be purchased annually is reached, the Company will not be able to buy back any shares.

At 31 August 2011, the middle share price was 38.0 pence per share, representing a discount of 15.8% (28 February 2011: 28.4%) to NAV at that date. It would therefore appear that our decision to reinstate the buy-back policy has so far been successful, at least in respect of narrowing the share price discount to NAV.

Based on the interim dividend of 1.50 pence per share, last year's final dividend of 4.50 pence per share and the 31 August 2011 share price, the annual yield is 15.8% which is free of UK income tax. We hope this relatively high yield will help to further stimulate the secondary market in the Company's shares, especially as investors come to appreciate the significance of our dividend policy.

Corporate Broker

During the period the board appointed Matrix Corporate Capital LLP ("Matrix") as corporate broker to the Company. Matrix is also corporate broker to a number of other VCT companies.

Investment Manager

As disclosed in the Report and Financial Statements 2011, on 31 May 2011 the investment manager changed its name to Investec Wealth & Investment Limited from Rensburg Sheppards Investment Management Limited. The terms of the management agreement and investment team remain unchanged.

Risks and uncertainties

In accordance with DTR 4.2.7R of the Disclosure and Transparency Rules, the directors have considered the principal risks and uncertainties for the remaining six months of the year.

The directors believe that the principal risk faced by the Company is the loss of its approval as a venture capital trust arising from a breach of the requirements of section 274 of the Income Tax Act 2007. This would mean that shareholders might have to repay the income tax relief they obtained on their investment in the Company and that the Company would lose its exemption from tax on any capital gains. The Manager reports to the Board at each meeting on the Company's compliance with the qualifying tests and the Board is advised on VCT issues by PricewaterhouseCoopers LLP.

Other significant risks include a serious or prolonged fall in the stock market which would adversely affect the Company's performance, value, distributable reserves and the liquidity of underlying investments; consistent underperformance by the Manager; and the Company's shares failing to achieve a rating which reflects performance. The Board seeks to mitigate these risks by monitoring the Manager's performance at each board meeting and discussing appropriate action where considered necessary.

Shareholder Communications

Our website at www.rensburgaimvct.co.uk provides shareholders with information on the Company, including the latest announced NAV and share price. Shareholders should note that we report (with an announcement on the Regulatory News Service 'RNS') the month end NAV figure shortly after the commencement of the following month.

The Board is aware that shareholders have recently received a letter from an organisation calling itself the UK Individual Shareholders Society (ShareSoc).  The Company has already been in correspondence with ShareSoc and has addressed all of the issues that they raised.  The Board was disappointed, therefore, to see that ShareSoc has ignored a request that the Company's detailed response be distributed to shareholders along with the ShareSoc letter. In the circumstances, the Board intends to send a response direct to all shareholders shortly.

Outlook

As I stated above, the start of the second half has seen continued volatility with the Total Return FTSE AIM All-Share Index decreasing by 9.2% in the month to 30 September 2011 whilst the Total Return FTSE 100 and Total Return FTSE All-Share Indices decreased by 4.7% and 5.0% respectively in the same period. The NAV of the Company was 44.08 pence per share as at 30 September 2011, a 2.4% decrease from the half-year figure but a decline considerably less than our benchmark indices.

Your Board believes that with a well balanced portfolio of AIM stocks, blue-chip and fixed interest investments the Company should perform satisfactorily in the second half.

Finally, I should close by confirming my decision to retire from the Board at the end of 2011 and wishing my successor, Richard Battersby, the rest of the Board and the Company every success in the future.

William M. Cran - Non-Executive Chairman                                                                      28 October 2011

Responsibility statement of the directors in respect of the half-yearly financial report

We confirm that to the best of our knowledge:

The condensed set of financial statements has been prepared in accordance with the "Statement: Half-Yearly Financial Reports" issued by the UK Accounting Standards Board and the half-yearly financial report includes a fair review of the information required by:

William M. Cran (Non-executive chairman)

Barry A. Anysz (Non-executive director)

Richard G. Battersby (Non-executive director)

Peter C. Smart (Non-executive director)

28 October 2011

Income Statement

for the six months ended 31 August 2011

Statement of Total Recognised Gains and Losses

for the six months ended 31 August 2011

Reconciliation of Movements in Shareholders' Funds

for the six months ended 31 August 2011

Balance Sheet

as at 31 August 2011

Cash Flow Statement

for the six months ended 31 August 2011

Notes to the Cash Flow Statement

Notes to the Condensed Financial Statements

10. Investment Portfolio Summary as at 31 August 2011

11. Investment Additions and Disposals in the half-year to 31 August 2011