Final Results

Baronsmead VCT 3 PLC
18 February 2002

To:          Company Announcements

From:          Baronsmead VCT 3 plc

Date:          18 February 2002

Investment Objective

Baronsmead VCT 3 plc is a tax efficient listed company which aims to achieve
long-term capital growth and to generate tax-free dividends for private
investors.




Audited Results - Period Ended 31 December 2001

 1. £32.8 million subscribed since inception
 2. Net asset value per share of 93.85 pence
 3. Nine investments made, totaling £4.4 million
 4. Total dividends of 2.30 pence per share

The Board was delighted that the Company raised £32.8 million in early 2001 from
2,078 shareholders. There have been no shares dealings since subscription.
Generally, being a shareholder in Baronsmead VCT 3 over its first accounting
period has been a better place to invest than most other UK stock market
investments. The total return of the Company has marginally increased by 1 per
cent since launch, which compares to a decline in the FTSE All-Share Index of 17
per cent. This is before shareholders benefit from any of the available VCT tax
reliefs.


The Company's shares were first listed on 29 January 2001 but the average length
of the first accounting period was 10 months based on a differing number of
shares being allotted between then and 6 April 2001. The Board recommends a
final dividend of 1.3p per share which, together with the interim dividend of 1p
per share, makes total dividends of 2.3p or an annualised level of 2.7 per cent.
The initial share capital raised has been placed in fixed rate securities and 85
per cent is still held in these assets. This has both generated the income out
of which the dividends have been paid and protected the value of shareholders'
capital.


The dividend policy will be to pay out as much as possible so that investors can
then decide whether to reinvest in new qualifying VCT shares under the Company's
dividend reinvestment scheme or enjoy the income generated. The likelihood of
paying capital distributions is some way off and can only be considered once
investments have been realised at a profit and sufficient net capital reserves
created.


The economic prospects and outlook I The prevailing bear market over the last
two years has seen UK stock markets fall almost 24 per cent and the tragedy in
the US last September created increased uncertainty. There has been some
recovery since then but the prospects for the next year or two are difficult to
predict even though the UK appears to be weathering the economic malaise better
than most other countries. In this environment, the investment policy of
Baronsmead VCT 3 has been to start building a diversified portfolio, which the
Board believe is within those sectors where there is both a good degree of
resilience and prospects for growth.




The priority is to build the portfolio over the next two years so that
qualifying status is attained and investments can achieve their growth plans
prior to sale.


Enquiries:     David Thorp

               ISIS Capital plc :  Tel. [phone]

               Rhonda Nicoll

               Friends Ivory & Sime plc :  Tel. [phone]

Baronsmead VCT 3 plc

Audited Statement of Total Return (incorporating the revenue account)


                                             Period from 22 November 2000 to
                                                   31 December 2001

                                         Revenue        Capital            Total
                                           £'000          £'000            £'000

Losses on investments                          -           (74)             (74)

Income                                     1,504              -            1,504

Investment management fee                  (159)          (477)            (636)

Other expenses                             (248)              -            (248)



Return on ordinary activities
before taxation                            1,097          (551)              546

Taxation on ordinary activities            (322)            155            (167)



Return attributable to
equity shareholders                          775          (396)              379


Dividends in respect of equity shares      (760)              -            (760)

Transfer to reserves                          15          (396)            (381)

Return per ordinary share:                 2.52p        (1.29p)            1.23p



Baronsmead VCT 3 plc
Audited Balance Sheet
                                                                           As at
                                                                     31 December
                                                                            2001
                                                                           £'000
Fixed Assets
Quoted on the Alternative Investment Market                                2,115
Unquoted investments                                                       2,512
UK government securities                                                   8,584
Corporate bonds                                                           17,678
                                                                        ________
                                                                          30,889
Net current assets                                                           180
                                                                         _______
Net assets                                                                31,069
                                                                        ________
Financed by:                                                   

Shareholders' funds                                                       31,069
                                                                        ________
Net asset value per ordinary share:                                       93.85p

Ordinary shares in issue                                              33,106,153



Baronsmead VCT 3 plc

Summarised Audited Statement of Cash Flows


                                                                     Period from
                                                                     22 November
                                                                         2000 to
                                                                     31 December
                                                                            2001
                                                                           £'000

Net cash inflow from operating activities                                    250

Net cash flow from capital expenditure and financial investment         (30,962)

Equity dividends                                                           (330)

Net cash outflow before financing                                       (31,042)

Net cash flow from financing                                              31,450

Increase in cash                                                             408


Reconciliation of net cash flow to movement in net cash

Increase in cash                                                             408

Net cash at 31 December                                                      408



Reconciliation of operating profit to net cash flow from activities

Net return before taxation                                                 1,097

Management fee charged to capital                                          (477)

Increase in debtors                                                        (616)

Increase in creditors                                                        246

Net cash flow from operating activities                                      250







Notes


 1. The audited results which cover the period from incorporation on 22 November
    2000 to 31 December 2001 have been drawn up with applicable accounting
    standards and adopt the Statement of Recommended Practice for Financial
    Statements and Investment Trust Companies and on the assumption that the
    Company maintains VCT status.


 2. The Company was launched on 29 January 2001 at which date 5,721,688 ordinary
    shares were issued. A further 27,384,465 ordinary shares were issued during
    the period to 31 December 2001.


 3. Revenue and capital returns for the period from incorporation on 22 November
    2000 to 31 December 2001 are based on a weighted average of 30,748,766
    ordinary shares in issue during the period.


 4. Income for the period from incorporation on 22 November 2000 to 31 December
    2001 is derived from:


                                                                            2001
                                                                           £'000

    Unquoted Investments                                                      47

    Government securities and corporate bonds                                786

    Deposit interest                                                         671
                                                                             ___
                                                                           1,504


 5. The final dividend of 1.30p will be paid on 5 April 2002 to shareholders on
    the register on 1 March 2002.


 6. These are not full accounts in terms of Section 240 of the Companies Act
    1985; the statutory accounts for the period to 31 December 2001 contain an
    unqualified auditors' report. Initial accounts for the period to 30 June
    2001, which were unaudited have been lodged with the Registrar of Companies
    in connection with payment of the interim dividend. The annual report for
    the period to 31 December 2001 will be sent to shareholders shortly and will
    then be available for inspection at 100 Wood Street, London, the registered
    office of the Company.


 7. The Annual General Meeting will be held on 22 March 2002.




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