Half-yearly Report
Baronsmead VCT3 plc
Half-Yearly Financial Report
For the six months ended 30 June 2013
The Directors announce the unaudited Half-Yearly Financial Report for the six
months to 30 June 2013 as follows:-
Investment Objective
Baronsmead VCT 3 plc is a tax efficient listed company which aims to achieve
long-term investment returns for private investors.
Investment policy
* To invest primarily in a diverse portfolio of UK growth businesses, whether
unquoted or traded on AIM.
* Investments are made selectively across a range of sectors in companies
that have the potential to grow and enhance their value.
Dividend policy
The Board of Baronsmead VCT 3 has the objective to maintain a minimum annual
dividend level of around 4.5p per ordinary share if possible, but this depends
primarily on the level of realisations achieved and cannot be guaranteed.
Since 2007, the average annual tax free dividend paid to shareholders has been
7.5p per share (equivalent to a pre-tax return of 10.0p per share for a higher
rate taxpayer). For shareholders who received up front tax reliefs, their
returns would have been higher.
Share price discount policy
The Company buys back its shares if, in the opinion of the Board, a repurchase
would be in the best interests of the Company's shareholders as a whole. Shares
are bought back through the market rather than directly from shareholders. This
minimises the number of shares bought back by the Company while maximising the
opportunity for investors to invest in the Company's existing shares.
In November 2012, the Company announced a change to its share price discount
policy whereby the Company would seek to narrow the discount between the share
price and the net asset value by buying back shares at a 5 per cent discount to
net asset value instead of 10 per cent.
Shareholder choice
The Board provides shareholders with a number of choices that enable them to
utilise their investment in Baronsmead VCT 3 in ways that best suit their
personal investment and tax planning, in a way that treats all shareholders
equally.
* Fund raising - From time to time the Company seeks to raise additional
funds by issuing new shares at a premium to the latest published net asset
value to account for issue costs. In December 2012, the Company's offer for
subscription to raise £5 million (£4.7 million after costs) was fully
subscribed.
* Dividend Reinvestment Plan - The Company offers a Dividend Reinvestment
Plan which enables shareholders to purchase additional shares through the
market in lieu of cash dividends. Approximately 354,000 shares were bought
in this way between January and June 2013.
* Buy back of shares - From time to time the Company buys its own shares
through the market in order to maintain a mid share price discount of
approximately 5 per cent to net asset value. In the six months to 30 June
2013, 770,000 shares were bought back representing 1 per cent of the shares
in issue at 30 June 2013 at prices which represented an average discount of
5 per cent to the latest published net asset values.
* Secondary market - The Company's shares are listed on the London Stock
Exchange and can be bought using a stockbroker or authorised share dealing
service in the same way as shares of any other listed company. In addition
to the shares bought by participants of the Dividend Reinvestment Plan,
approximately 163,000 shares were bought by investors in the Company's
existing shares in the six months to 30 June 2013.
FINANCIAL HEADLINES
* +3.2%- Net asset value ("NAV") per share increased 3.2 per cent to 110.55p
before deduction of the interim dividend.
* 3.0% - Interim dividend of 3.0p for the six month period to 30 June 2013.
* £3.9m - Invested in seven new and six follow on investments in the six
months to 30 June 2013.
* 224.1p - NAV total return to shareholders for every 100.0p invested at
launch.
CHAIRMAN'S STATEMENT
I am delighted to report an uplift of 3.43p in the Net Asset Value ("NAV") for
the six months to 30 June 2013 together with a good level of new investments
and realisations. An interim dividend of 3p will be paid from profits realised
during the period.
RESULTS AND DIVIDEND
The NAV increased during the period from 107.12p to 110.55p per share before
taking account of the interim dividend of 3p.
Pence per
share
NAV as at 1 January 2013 107.12
(after the final dividend of 4.5p is
deducted)
Valuation uplift (3.2 per cent) 3.43
NAV as at 30 June 2013 110.55
Less interim dividend payable on 20 (3.00)
September to shareholders on the
register on 6 September 2013
NAV as at 30 June 2013 107.55
(after deduction of the interim
dividend)
The Company has paid a consistent annual dividend of 7.5p for 6 years which
equates to a dividend yield of 7.1 per cent based on the 28 June 2013 mid share
price of 105.88p (equivalent to 9.5 per cent for a higher rate tax payer).
LONG TERM PERFORMANCE
Since inception in 2001, the Company's objective has been to generate
consistent returns over the long-term through investing in a diverse portfolio
of established and profitable unquoted and AIM traded companies. The Directors
are pleased that this objective continues to be achieved as demonstrated by the
NAV total return of 224.1p for every 100p invested since inception before
taking account of the tax reliefs on both the initial investment and on the
73.8p of dividends paid (including the declared interim dividend). This
compares favourably with an equivalent return of 165.8p for the FTSE All-Share
during the same period.
The full record of performance is set out on our website,
www.baronsmeadvct3.co.uk.
PORTFOLIO REVIEW
Portfolio performance
The unquoted portfolio valuation has remained steady during the period partly
reflecting the number of newer investments still held at cost. The largest
valuation movement in the unquoted portfolio has been an uplift of £1.0 million
in the value of CableCom. The quoted portfolio continued to make good progress
with a 4 per cent overall increase in value. This was achieved despite a fall
of £0.97 million in the value of IDOX following a market correction after a
strong increase during the previous twelve months. However, the Company sold
one third of its holding in IDOX earlier in the year, realising a profit of
£1.4 million.
New investments
This has been a busy six months for new investment activity with a total of
seven new investments completed as well as a number of follow on funding
rounds. The Company invested £2.6 million in 3 new unquoted companies,
£1.0 million in Create Health, a fertility clinic, £0.9 million in Eque2, which
delivers software expertise to the construction and contracting sector and
£0.7 million in Armstrong Craven, a provider of research services to Human Resource
departments of leading global corporates.
In addition, immediately following the period end an unquoted investment was
made in Luxury for Less, an online bathroom products retailing business using
an existing acquisition vehicle. Also after the period end an investment of
£0.95 million was made in Key Travel, a travel management company focused on the
not-for-profit sector. A total investment of £0.7 million was made in four new
quoted companies during the period.
These above new investments operate in four of the five sectors on which the
Investment Manager ISIS focuses and in which it has built strong experience and
a consistent track record.
Full details regarding the investments during the period are set out in the
table below.
Growth Fund
The Company's unquoted strategy has always been to invest in larger,
established companies in the VCT sector alongside other funds managed by ISIS.
Since 2004, the Company has co-invested with the other Baronsmead VCTs (BVCTs)
however prior to that date the BVCTs also invested alongside funds managed by
the Manager for its Institutional clients. In the March 2012 Budget the
Government announced a restriction of £5 million to the amount of investment a
company could accept from state aided funds in any 12 month period. Since VCTs
are categorised as state aided funds this placed a restriction on the level of
investment the BVCTs on a combined basis could make annually in any company.
The Directors are therefore pleased to report that ISIS has succeeded in
raising a fund from non state aided sources, ISIS Growth I LP ("the Growth
Fund"), with £50 million of commitments from leading UK and international
institutional investors, specifically for the purpose of investing alongside
the BVCTs in unquoted companies. This will enable the Company to participate in
unquoted investments where the initial commitment exceeds £5 million. This is a
considerable benefit for the VCTs as companies of this size, whilst still small
and developing, tend to be more stable and it will give the Baronsmead VCTs a
valuable competitive advantage in this sector of the unquoted market.
Investments alongside the Growth Fund will be made in accordance with an agreed
allocation basis and on the same terms. The Board would like to congratulate
ISIS on this innovative solution.
The Growth Fund commenced on 31 May 2013 and three of the unquoted investments
mentioned above, Armstrong Craven, Luxury for Less and Key Travel were
companies in which both the BVCTs and the Growth Fund invested.
Investment realisations
A total of £7.2 million was realised from the total sale of three investments
and one partial realisation detailed in the table below all achieving sizeable
uplifts in valuation. The sale of unquoted investments in MLS and Independent
Living Services generated multiples of 2.8 and 2.5 times original cost respectively.
The sale of a quoted investment, FFastFill plc, realised a multiple of 2.8 and
the partial realisation of the Company's holding in IDOX realised a multiple of
5.7 times the original cost of the shares sold.
SHAREHOLDER MATTERS
Fundraising
The Board is currently considering raising further funds in the current tax
year. It is currently anticipated that the subscription documentation, which
will contain the full terms and conditions, will be available in early 2014.
Shareholders will be sent the subscription documentation as soon as it is
published.
Share price discount policy
Progress has been made in reducing the difference between the share price and
the net asset value of the Company's shares. The mid share price discount to
NAV averaged 5 per cent in the six months to 30 June 2013 compared to the
previous policy of 10 per cent. The Company bought back 770,000 shares during
this period (1.0 per cent of the shares in issue at the end of the period) at a
discount to NAV of approximately 5 per cent.
The new share price discount policy will be kept under continuous review and
may be subject to revision. Shares will be bought back depending on market
conditions at the time and only where the Directors believe it to be in the
best interests of all shareholders.
OUTLOOK
There appears to be a growing consensus that the outlook for the UK economy is
improving although it is still considered to be fragile and a recovery is not
certain. Nevertheless there is a greater degree of optimism than has existed
for many years which is reflected in the investment opportunities being
presented to the Manager. The Company's portfolio has demonstrated a high
degree of resilience throughout the downturn which is a testament to the
expertise and skill of the Investment Manager which has steered its investments
through the difficult times, increasing profits and employment and achieving
some successful exits.
The current portfolio remains widely diversified, well resourced and adequately
funded. There are also encouraging signs that the number of available
investment opportunities is increasing with five unquoted investments completed
so far in 2013. We believe that the Company is well placed to take advantage of
any upturn should it occur.
Anthony Townsend
Chairman
16 August 2013
Table of Investments and Realisations
Investments in the six month period
Company Location Sector Activity Book
cost
£'000
Unquoted investments
New
Create Health London Healthcare & Provider of fertility 1,065
Limited Education services
Eque2 Limited Manchester TMT* Enterprise resource 877
planning (ERP) solutions
provider to the
construction industry
Armstrong Craven Manchester Business Provider of executive 673
Limited Services search and business
intelligence services
Follow on
Impetus Holdings London Business Automotive consultancy 248
Limited Services and outsourced service
provider
Playforce Holdings Melksham Business Design and installation 163
Limited Services of playground equipment
Total unquoted investments 3,026
AIM-traded, listed & PLUS investments
New
Bioventix plc Farnham, Surrey Healthcare & Develops sheep 227
Education monoclonal antibodies
Ideagen plc Matlock TMT* Compliance software 225
solutions
Pinnacle Technology Stirlingshire TMT* B2B telecoms and IT 169
Group plc reseller
One Media iP Group Buckinghamshire TMT* Content acquisition and 56
plc distribution
Follow on
TLA Worldwide plc London Business Baseball sports 113
Services management and marketing
business
Green Compliance plc Worcester Business Small business 50
Services compliance
Accumuli plc Salford TMT* Managed IT security 40
Tangent London Business Digital direct marketing 40
Communications plc Services
Total AIM-traded, listed & PLUS 920
investments
Total investments in the period 3,946
* Technology, Media and Telecommunications ("TMT").
Realisations in the six month period
Company First 31 Proceeds Overall
investment December ‡ multiple
date 2012 £'000 return *
valuation
£'000
Unquoted realisations
MLS Limited Full trade sale Jul 06 956 984 2.8
Kidsunlimited Group Loan note Jun 01 113 176 â€
Limited redemption
Independent Living Full trade sale Sep 05 3,322 3,426 2.5
Services Limited
Total unquoted 4,391 4,586
realisations
AIM-traded & listed
realisations
FFastFill plc Full trade sale Jun 07 612 874 2.8
IDOX plc Market sale Jan 09 1,725 1,752 5.7
Total AIM-traded & listed realisations 2,337 2,626
Total realisations in the period 6,728 7,212
‡ Proceeds at time of realisation including redemption premium and interest.
* Includes interest/dividends received, loan note redemptions and partial
realisations accounted for in prior periods.
†Kidsunlimited Group Limited was realised in April 2008. As part of the
consideration, Baronsmead VCT 3 received £113,000 in loan stock, which was
redeemed in April 2013. The overall multiple return for the investment in
Kidsunlimited was 4.9 times original cost.
Independent Review Report to Baronsmead VCT 3 plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2013 which comprises the Income Statement, Reconciliation of Movement in
Shareholders' Funds, Balance Sheet and Cash Flow Statement and the related
explanatory notes. We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
set of financial statements.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority
("the UK FCA"). Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work, for
this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the DTR of the UK FCA.
As disclosed in note 1, the annual financial statements of the Company are
prepared in accordance with UK Accounting Standards and applicable law (UK
Generally Accepted Accounting Practice). The condensed set of financial
statements included in this half-yearly financial report has been prepared in
accordance with the Statement Half-Yearly Financial Reports as issued by the UK
Accounting Standards Board.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and consequently does
not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2013 is not prepared, in all
material respects, in accordance with the Statement Half-Yearly Financial
Reports as issued by the UK Accounting Standards Board and the DTR of the UK
FCA.
Catherine Burnet
for and on behalf of
KPMG Audit Plc
Chartered Accountants
Edinburgh
16 August 2013
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;
* the Chairman's Statement (constituting the interim management report)
includes a fair review of the information required by DTR 4.2.7R of the
Disclosure and Transparency Rules, being an indication of important events
that have occurred during the first six months of the financial year and
their impact on the condensed set of financial statements;
* the Statement of Principal Risks and Uncertainties below is a fair review
of the information required by DTR 4.2.7R being a description of the
principal risks and uncertainties for the remaining six months of the year;
and
* the financial statements include a fair review of the information required
by DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the Company during that period; and any changes in the
related party transactions described in the last annual report that could
do so.
On behalf of the Board,
Anthony Townsend
Chairman
16 August 2013
Unaudited Income Statement
For the six months to 30 June 2013
Six months to 30 June Six months to 30 June Year to 31 December 2012*
2013 2012
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Unrealised gains on - 2,090 2,090 - 5,206 5,206 - 9,373 9,373
investments
Realised (losses)/ - (443) (443) - 285 285 - 426 426
gains on investments
Income 1,716 - 1,716 343 - 343 1,187 - 1,187
Investment management (221) (662) (883) (202) (606) (808) (409) (1,228) (1,637)
fee
Other expenses (212) - (212) (188) - (188) (390) - (390)
Profit/(loss) on 1,283 985 2,268 (47) 4,885 4,838 388 8,571 8,959
ordinary activities
before taxation
Taxation on ordinary (240) 240 - - - - (25) 25 -
activities
(Profit/(loss) on 1,043 1,225 2,268 (47) 4,885 4,838 363 8,596 8,959
ordinary activities
after taxation
Return per ordinary
share:
Basic 1.57p 1.84p 3.41p (0.08)p 7.82p 7.74p 0.58p 13.67p 14.25p
* Figures as at 31 December 2012 are audited.
Unaudited Reconciliation of Movement in Shareholders' Funds
For the six months to 30 June 2013
Six Six Year to
months to months to 31 December
30 June 30 June 2012*
2013 2012
£'000 £'000 £'000
Opening shareholders' funds 74,562 60,095 60,095
Profit for the period 2,268 4,838 8,959
Gross proceeds of share issues - 4,135 9,135
Purchase of shares for treasury (812) (616) (1,260)
Expenses of share issue and buybacks (5) (199) (474)
Other costs charged to capital (5) - -
Dividends paid (3,006) - (1,893)
Closing shareholders' funds 73,002 68,253 74,562
* Figures as at 31 December 2012 are audited.
Notes
1. The unaudited interim results which cover the six months to 30 June 2013
have been prepared in accordance with applicable accounting standards and
adopting the accounting policies set out in the statutory accounts of the
Company for the year to 31 December 2012.
2. Return per share is based on a weighted average of 66,588,782 ordinary
shares in issue (30 June 2012 - 62,481,892 ordinary shares; 31 December
2012 - 62,863,845 ordinary shares).
3. Earnings for the first six months to 30 June 2013 should not be taken as a
guide to the results of the full financial year to 31 December 2013.
4. During the six months to 30 June 2013 the Company purchased 770,000
ordinary shares to be held in treasury at a cost of £812,000. At 30 June
2013, the Company holds 9,699,214 ordinary shares in treasury. These shares
may be re-issued below Net Asset Value as long as the discount at issue is
narrower than the average discount at which the shares were bought back.
Excluding treasury shares, there were 66,032,705 ordinary shares in issue at 30
June 2013 (30 June 2012 - 63,194,037 ordinary shares; 31 December 2012 -
66,802,705 ordinary shares).
5. The interim dividend of 3p per ordinary share (1.5p revenue and 1.5p
capital) will be paid on 20 September 2013 to shareholders on the register
on 6 September 2013. The ex-dividend date is 4 September 2013.
6. The financial information contained in this half-yearly financial report
does not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The information for the year to 31 December 2012 has
been extracted from the latest published audited financial statements. The
audited financial statements for the year to 31 December 2012, which were
unqualified, have been filed with the Registrar of Companies. No statutory
accounts in respect of any period after 31 December 2012 have been reported
on by the Company's auditors or delivered to the Registrar of Companies.
7. Copies of the half-yearly financial report have been made available to
shareholders and are available from the Registered Office of the Company at
100 Wood Street, London EC2V 7AN.
Unaudited Balance Sheet
As at 30 June 2013
As at As at As at
30 June 30 June 31 December
2013 2012 2012*
£'000 £'000 £'000
Fixed assets
Unquoted investments 36,590 35,348 37,084
Traded on AIM 19,784 18,305 20,833
Listed on LSE 1,787 1,601 1,808
Traded on PLUS 264 - -
Collective investment vehicle - Wood 5,131 3,769 4,525
Street Microcap Investment Fund
Listed interest bearing securities 4,997 7,377 2,490
Investments 68,553 66,400 66,740
Current assets
Debtors 347 305 5,261
Cash at bank 2,883 2,052 1,438
Cash at on deposit 2,000 - 1,800
5,230 2,357 8,499
Creditors (amounts falling due within (781) (504) (677)
one year)
Net current assets 4,449 1,853 7,822
Net assets 73,002 68,253 74,562
Capital and reserves
Called-up share capital 7,573 7,147 7,573
Share premium account 22,866 18,566 22,866
Capital redemption reserve 10,862 10,862 10,862
Capital reserve 18,874 22,047 18,928
Revaluation reserve 11,434 9,357 13,649
Revenue reserve 1,393 274 684
Equity shareholders' funds 73,002 68,253 74,562
* Figures as at 31 December 2012 are audited.
As at As at As at
30 June 30 June 31 December
2013 2012 2012
£'000 £'000 £'000*
Net asset value per share 110.55p 108.01p 111.62p
Number of ordinary shares in 66,032,705 63,194,037 66,802,705
circulation
Treasury net asset value per share 109.96p 106.56p 110.88p
Number of ordinary shares in 66,032,705 63,194,037 66,802,705
circulation
Number of ordinary shares held in 9,699,214 8,279,214 8,929,214
treasury
Number of listed ordinary shares in 75,731,919 71,473,251 75,731,919
issue
* Figures as at 31 December 2012 are audited.
Unaudited Cash Flow Statement
For the six months to 30 June 2013
Six months Six months Year
to to to
30 June 30 June 31 December
2013 2012 2012
£'000 £'000 £'000*
Net cash inflow/(outflow) from operating 665 (383) (606)
activities
Capital expenditure and financial 61 (1,568) 2,400
investment
Equity dividends paid (3,006) - (1,893)
Net cash outflow before financing (2,280) (1,951) (99)
Net cash inflow from financing 3,925 3,320 2,654
Increase in cash at bank and on deposit 1,645 1,369 2,555
Reconciliation of net cash inflow to
movement in net cash at bank and on deposit
Increase in cash at bank and on deposit 1,645 1,369 2,555
Opening cash position 3,238 683 683
Closing cash position 4,883 2,052 3,238
Reconciliation of profit on ordinary
activities before taxation to net cash
inflow/(outflow) from operating activities
Profit on ordinary activities before 2,268 4,838 8,959
taxation
Gains on investments (1,647) (5,491) (9,799)
Changes in working capital and other 44 270 234
non-cash items
Net cash inflow/(outflow) from operating 665 (383) (606)
activities
* Figures as at 31 December 2012 are audited.
Principal Risks and Uncertainties
The Company's assets consist of equity and fixed interest investments, cash and
liquid resources. Its principal risks are therefore market risk, credit risk
and liquidity risk. Other risks faced by the Company include economic, loss of
approval as a Venture Capital Trust, investment and strategic, regulatory,
reputational, operational and financial risks. These risks, and the way in
which they are managed, are described in more detail under the heading
Principal risks, risk management and regulatory environment within the Business
Review and Notes in the Company's Annual Report and Accounts for the year to 31
December 2012. The Company's principal risks and uncertainties have not changed
materially since the date of that report.
Related Parties
ISIS EP LLP (`the Manager') manages the investments of the Company. The Manager
also provides or procures the provision of secretarial, accounting,
administrative and custodian services to the Company. Under the management
agreement, the Manager receives a fee of 2.5 per cent per annum of the net
assets of the Company. This is described in more detail under the heading
Management within the Report of the Directors in the Company's Annual Report
and Accounts for the year to 31 December 2012. During the period, the Company
has incurred management fees of £883,000 and secretarial and accounting fees of
£65,000 payable to the Manager.
Going Concern
After making enquiries, and bearing in mind the nature of the Company's
business and assets, the Directors consider that the Company has adequate
resources to continue in operational existence for the foreseeable future. In
arriving at this conclusion, the Directors have considered the liquidity of the
Company and its ability to meet obligations as they fall due for a period of at
least twelve months from the date that these financial statements were
approved. As at 30 June 2013, the Company held cash balances & investments in
UK Gilts with a combined value of £9,880,000. Cash flow projections have been
reviewed and show that the Company has sufficient funds to meet both its
contracted expenditure and its discretionary cash outflows in the form of the
share buyback programme and dividend policy. The Company has no external loan
finance in place and is therefore not exposed to any gearing covenants.
Appendix
Full Investment Portfolio
Company Sector Book 30 June 31 % of % of % of
cost 2013 December net Equity Equity
£'000 Valuation 2012 assets held by held
£'000 †Valuation Baronsmead by
£'000 VCT 3 plc all
funds#
Unquoted
CableCom TMT* 1,381 5,361 4,328 7.3 10.6 48.0
Networking
Holdings Limited
Nexus Vehicle Business 2,368 4,616 4,768 6.3 12.3 56.0
Holdings Limited Services
CSC (World) TMT* 1,606 2,826 2,410 3.9 8.8 40.0
Limited
Kafevend Consumer 1,252 2,683 2,956 3.7 15.8 66.5
Holdings Limited Markets
Crew Clothing Consumer 1,344 2,485 3,020 3.4 6.1 25.5
Holdings Limited Markets
Valldata Group Business 1,616 2,168 1,754 3.0 8.8 39.8
Limited Services
Inspired Business 796 1,825 1,571 2.5 5.0 22.5
Thinking Group Services
Limited
Fisher Outdoor Consumer 1,423 1,682 1,656 2.3 10.5 44.0
Leisure Holdings Markets
Limited
Independent Healthcare & 1,346 1,569 1,491 2.1 10.9 55.0
Community Care Education
Management
Limited
Impetus Holdings Business 1,305 1,174 1,057 1.6 7.8 39.3
Limited Services
Pho Holdings Consumer 987 1,095 987 1.5 5.5 28.0
Limited Markets
Create Health Healthcare & 1,065 1,065 - 1.4 5.7 29.0
Limited Education
Arcas Business 1,000 1,000 1,000 1.4 9.6 48.6
Investments Services
Limited
Consumer Consumer 1,000 1,000 1,000 1.4 9.6 48.6
Investment Markets
Partners Limited
HealthTech Healthcare & 1,000 1,000 1,000 1.4 9.6 48.6
Innovation Education
Partners Limited
Quest Venture Business 1,000 1,000 1,000 1.4 9.6 48.6
Partners Limited Services
Riccal Business 1,000 1,000 1,000 1.4 9.6 48.6
Investments Services
Limited
Eque2 Limited TMT* 877 877 - 1.2 7.6 38.5
Happy Days Healthcare & 833 833 833 1.1 8.4 42.5
Consultancy Education
Limited
Armstrong Craven Business 673 673 - 0.9 7.7 46.0
Limited Services
Playforce Business 1,196 658 512 0.9 16.5 75.0
Holdings Limited Services
Carnell Business 941 0 0 0.0 ## ##
Contractors Services
Limited
Empire World Business 1,297 0 0 0.0 ‡ ‡
Trade Limited Services
Music Festivals Consumer 400 0 0 0.0 N/A N/A
plc Loan note Markets
Surgi C Limited Healthcare & 1,102 0 350 0.0 13.3 57.5
Education
Xention Healthcare & 893 0 0 0.0 0.4 3.0
Discovery Education
Limited
Total unquoted 29,701 36,590 50.1
AIM
IDOX plc TMT* 614 2,466 5,184 3.4 1.8 5.0
Netcall plc TMT* 869 1,931 1,337 2.6 4.1 20.5
Murgitroyd Group Business 319 1,265 1,173 1.7 3.0 5.9
plc Services
Jelf Group plc Financial 761 1,072 1,024 1.5 1.5 5.8
Services
Driver Group plc Business 563 1,059 786 1.4 4.1 19.4
Services
Tasty plc Consumer 469 1,008 595 1.4 2.5 17.1
Markets
Accumuli plc TMT* 505 990 636 1.4 4.5 24.7
TLA Worldwide Business 733 927 589 1.3 4.2 20.4
plc Services
Escher Group TMT* 614 802 885 1.1 1.9 9.7
Holdings plc
Anpario plc Healthcare & 275 690 506 0.9 2.0 14.7
Education
Dods (Group) plc TMT* 1,219 577 649 0.8 4.2 20.1
Inspired Energy Business 300 476 405 0.7 2.4 11.8
plc Services
Sinclair IS Healthcare & 524 475 490 0.7 0.4 2.2
Pharma plc Education
Plastics Capital Business 473 449 317 0.6 1.7 9.8
plc Services
Synectics plc Business 296 442 352 0.6 0.6 2.1
Services
Tangent Business 523 439 495 0.6 2.2 11.3
Communications Services
plc
Hangar8 plc Business 388 406 456 0.6 3.0 14.0
Services
Electric Word TMT* 696 387 366 0.5 5.1 27.7
plc
Vianet Group plc Business 646 378 508 0.5 1.9 9.7
Services
Sanderson Group TMT* 387 364 379 0.5 1.8 6.8
plc
GB Group plc TMT* 150 360 341 0.5 0.3 1.7
EG Solutions plc TMT* 375 331 379 0.5 2.8 12.7
InterQuest Group Business 310 324 265 0.4 1.7 6.7
plc Services
PROACTIS TMT* 619 290 426 0.4 5.4 26.3
Holdings plc
Paragon Consumer 200 263 300 0.4 3.1 17.3
Entertainment Markets
Limited
Ideagen plc TMT* 225 222 - 0.3 1.0 4.3
Brady plc TMT* 176 208 292 0.3 0.4 2.1
Begbies Traynor Financial 231 176 203 0.2 0.6 2.5
Group plc Services
Cohort plc Business 179 176 144 0.2 0.3 1.4
Services
Ubisense Group TMT* 130 130 165 0.2 0.3 1.6
plc
Pinnacle TMT* 169 129 - 0.2 1.8 7.8
Technology Group
plc
AimShell Business 400 90 96 0.1 3.1 12.3
Acquisitions plc Services
Zattikka plc TMT* 316 89 136 0.1 1.4 7.1
STM Group plc Financial 162 84 84 0.1 0.6 4.0
Services
Tristel plc Healthcare & 217 76 114 0.1 1.0 5.4
Education
Active Risk TMT* 159 75 54 0.1 1.1 5.6
Group plc
Green Compliance Business 932 71 29 0.1 3.2 15.7
plc Services
One Media iP TMT* 56 63 - 0.1 1.1 4.9
Group plc
Bglobal plc Business 176 19 50 0.0 0.4 2.5
Services
Zoo Digital TMT* 584 5 11 0.0 0.2 0.6
Group plc
Total AIM 16,940 19,784 27.1
Listed
Vectura Group Healthcare & 771 1,295 1,343 1.8 0.5 1.3
plc Education
Chime TMT 369 441 396 0.6 0.2 0.8
Communications
plc
Marwyn Value Financial 64 27 33 0.0 1.3 6.0
Investors Services
Limited
Marwyn Financial 525 24 36 0.0 0.3 1.6
Management Services
Partners plc
Total listed 1,729 1,787 2.4
PLUS
Bioventix plc Healthcare & 227 264 - 0.4 1.7 7.7
Education
Total PLUS 227 264 0.4
Listed interest
bearing
securities
UK T-Bill 02/09/ 2,998 2,998 - 4.1
13
UK T-Bill 29/07/ 1,999 1,999 - 2.8
13
Total listed 4,997 4,997 6.9
interest bearing
securities
Collective
investment
vehicle
Wood Street 3,525 5,131 4,525 7.0
Microcap
Investment Fund
Total collective 3,525 5,131 7.0
investment
vehicle
Total 57,119 68,553 93.9
investments
Net current 4,449 6.1
assets
Net assets 73,002 100.0
# All funds managed by the same investment manager, ISIS EP LLP, including
Baronsmead VCT 3.
* Technology, Media & Telecommunications ("TMT").
## Following a restructuring and partial redemption the funds no longer hold
equity in Carnell Contractors Limited.
‡ Following a restructuring, the effective ownership percentage is dependent on
final exit proceeds.
Corporate Information
Directors Registrar and Transfer Office
Anthony Townsend (Chairman)‡ Computershare Investor Services PLC
Andrew Karney†PO Box 82
Gillian Nott OBE* The Pavilions
Ian Orrock Bridgwater Road
Bristol BS99 6ZZ
Tel: 0870 889 3250
Secretary Brokers
ISIS EP LLP Panmure Gordon & Co
One New Change
London W1J 0AH
Registered Office
100 Wood Street
London EC2V 7AN
Investment Manager Auditors
ISIS EP LLP KPMG Audit Plc
100 Wood Street Saltire Court
London EC2V 7AN 20 Castle Terrace
Edinburgh EH1 2EG
FPPE LLP Solicitors
(liquid assets only) Norton Rose
100 Wood Street 3 More London Riverside
London EC2V 7AN London SE1 2AQ
Registered Number VCT Status Adviser
04115341 PricewaterhouseCoopers LLP
1 Embankment Place
London WC2N 6RH
‡ Chairman of the Nomination Committee
and Remuneration and Management
Engagement Committee
†Senior Independent Director Website
* Chairman of the Audit and Risk Committee www.baronsmeadvct3.co.uk
Copies of the half yearly report will shortly be available from the following
website: www.baronsmeadvct3.co.uk.
National Storage Mechanism
A copy of the Half-Yearly Report will be submitted shortly to the National
Storage Mechanism ("NSM") and will be available for inspection at the NSM,
which is situated at: www.hemscott.com/nsm.do.
END
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on this announcement (or any other website) is
incorporated into, or forms part of, this announcement.