PUA Puma Vct

RNS Number:6846Y
Shore Capital Group PLC
21 February 2006


For immediate release                                           21 February 2006

         Puma VCTs - Strong Fourth Quarter Results - Gain of 5.1% in Q4

        Innovative Strategy for Non-Qualifying Investments is Delivering


Shore Capital, the listed independent investment banking group based in London
and Liverpool, announces 4th quarter results for Puma VCT plc and Puma VCT II
plc ("the Puma VCTs").  These 5 year life VCTs have a unique strategy for their
non-qualifying funds of making absolute return investments.
     
*    The Puma VCTs, managed by Shore Capital Limited, have delivered very strong 
     returns in the fourth quarter, with gains of 5.1%.

*    Net Asset Value per share ("NAV") of an average of 104.94 pence,
     compared to the initial 98 pence at flotation in April/ May 2005.

*    Over the 8-9 month investment period, gains of 6.94%.

*    Well on track to deliver the net 120 pence to investors targeted
     at launch, doubling investors' money (net cost to investors was 60 pence).  
     This would be a post-tax return of 14.9% p.a. over 5 years.

This strong performance has been achieved by a combination of gains in the
qualifying portfolio and also in the Company's diversified portfolio of hedge
funds, which has continued to show excellent progress in 2006 to date.

Of the three qualifying investments, two are already showing good gains.  The
VCTs invested in @UK plc on a pre-IPO basis at a discount to the IPO price.
Following its successful IPO in December 2005, the VCTs are showing an uplift in
value.  The VCTs also invested in Cadbury House, whose hotel development has
just been given a revised planning consent.  A professional valuation indicates
considerable extra value when complete, with a consequent increase in the value
of the Puma VCTs' investment.

The Puma VCTs' hedge fund portfolio had a strong quarter, out-performing their
benchmark indices as they have over 2005 as a whole.  These returns have been
achieved with low volatility (a measure of risk).  2006 has started well.

Adam Teeger, manager of the qualifying portfolio, commented:  "I'm very pleased
with the qualifying investments we have made so far.  The performance of the
non-qualifying portfolio is also excellent and we are on track for target rates
of investment and investment performance.  The deal flow for 2006 looks strong."


Enquiries:

Shore Capital                   Graham Shore                       020 7408 4090
Citigate Dewe Rogerson          Sarah Gestetner/ Fiona Mulcahy     020 7638 9571

Investment Enquiries to 020 7468 7949 or to vct@shorecap.co.uk


Notes to Editors:
     
1.   Shore Capital is a London-listed independent investment banking group. It 
     specialises in equity capital market activities and fund management. The 
     Group offers a wide range of investment banking services including 
     corporate finance, stockbroking, market making and the management of 
     specialist funds, with a particular focus on alternative asset classes.  
     Specialist funds include growth capital, property-related and fund of hedge 
     funds as well as VCTs.

2.   Shore Capital is based in London and Liverpool.  Shore Capital Limited, 
     Shore Capital Stockbrokers Limited and Shore Capital and Corporate Limited 
     are authorised and regulated by the Financial Services Authority and Shore 
     Capital Stockbrokers Limited is a member of the London Stock Exchange.

3.   Further information on Shore Capital, its products and services can
     be found at www.shorecap.co.uk or by emailing info@shorecap.co.uk


The Puma VCTs

Shore Capital launched the Puma VCTs in January 2005 and they raised #20.4m.
Shore Capital is in the process of raising further VCTs in 2006 with a similar
structure and strategy.  This is :
     
*    Clearly defined 5 year life.  The first VCTs were launched in the mid 90s, 
     but no VCT has yet wound up.  Shore Capital is committed to winding up its 
     VCT after five years (if investors vote for it) and returning the capital 
     to investors.

*    Target to double the net investment in 5 years, giving 15% p.a. tax free.

*    Low initial costs for investors of 2 per cent, compared to typical 5-51/2%.  
     For every 100p invested, 98p is put to work (at a cost to the investor of 
     60p).

*    Absolute return investment strategy. Given the 5 year life, the non 
     qualifying strategy is as important as the qualifying.  Non qualifying 
     investments will include a broad range of assets, including a diversified
     portfolio of hedge funds, property vehicles etc, in which  Shore Capital 
     has a strong track record - property fund IRR 47% p.a., hedge funds 12% 
     p.a.

*    Shore has extensive experience as a small cap/ VC fund manager (Puma II), 
     AIM broker and market-maker. Qualifying investments will be in relatively 
     low risk small UK companies, including AIM, Ofex and private companies.

*    Puma II has out-performed the AIM index over 5 years by over 50%.
          
*    Dual fund structure enables larger investments in qualifying companies.

*    This VCT designed to use the new tax relief efficiently. A 40% income tax 
     relief for 2005/06 (possibly the last tax year it is available) makes 
     Puma's unique strategy compelling.


Investment Structure of Puma VCT III and IV

Minimum investment                      #10,000 (multiples of #1000 thereafter)

Maximum investment per individual       #200,000

Offer costs                             2 per cent (lowest in the industry)

Annual management fees                  2 per cent (standard level)

Other annual running costs              1 per cent (expected)

Cap on all annual fees/ costs           3 1/2 per cent (standard level)

Carried interest for manager            20 per cent of all cash distributions to 
                                        investors in excess of 100p per share

Dual VCT Structure                      two VCTs with essentially the same 
                                        portfolio to enable larger investments 
                                        in qualifying companies

Managers' own investment                the investment managers make significant 
                                        personal investments in the VCT on the 
                                        same terms as other investors




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